Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Aug. 28, 2016 | Oct. 03, 2016 | |
Document Information [Line Items] | ||
Entity Registrant Name | PARK ELECTROCHEMICAL CORP | |
Entity Central Index Key | 76,267 | |
Trading Symbol | pke | |
Current Fiscal Year End Date | --02-26 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 20,234,671 | |
Document Type | 10-Q | |
Document Period End Date | Aug. 28, 2016 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Aug. 28, 2016 | Feb. 28, 2016 | |
Current assets: | |||
Cash and cash equivalents | $ 103,438 | $ 97,757 | [1] |
Marketable securities (Note 3) | 136,268 | 139,668 | [1] |
Accounts receivable, less allowance for doubtful accounts of $326 and $324, respectively | 18,369 | 22,583 | [1] |
Inventories (Note 4) | 11,749 | 10,214 | [1] |
Prepaid expenses and other current assets | 2,292 | 1,963 | [1] |
Total current assets | 272,116 | 272,185 | [1] |
Property, plant and equipment, net | 19,969 | 21,512 | [1] |
Goodwill and other intangible assets | 9,833 | 9,833 | [1] |
Restricted cash (Note 5) | 10,000 | 10,000 | [1] |
Other assets | 1,328 | 1,247 | [1] |
Total assets | 313,246 | 314,777 | [1] |
Current liabilities: | |||
Current portion of long-term debt (Note 5) | 3,000 | 3,000 | [1] |
Accounts payable | 4,936 | 6,155 | [1] |
Accrued liabilities | 5,304 | 4,580 | [1] |
Income taxes payable | 2,164 | 2,943 | [1] |
Total current liabilities | 15,404 | 16,678 | [1] |
Long-term debt (Note 5) | 70,500 | 72,000 | [1] |
Deferred income taxes (Note 9) | 43,937 | 43,937 | [1] |
Other liabilities | 1,024 | 1,295 | [1] |
Total liabilities | 130,865 | 133,910 | [1] |
Shareholders' equity (Note 8): | |||
Common stock | 2,096 | 2,096 | [1] |
Additional paid-in capital | 167,102 | 166,398 | [1] |
Retained earnings | 26,806 | 25,922 | [1] |
Accumulated other comprehensive earnings | 1,397 | 1,471 | [1] |
197,401 | 195,887 | [1] | |
Less treasury stock, at cost | (15,020) | (15,020) | [1] |
Total shareholders' equity | 182,381 | 180,867 | [1] |
Total liabilities and shareholders' equity | $ 313,246 | $ 314,777 | [1] |
[1] | The balance sheet at February 28, 2016 has been derived from the audited financial statements at that date. |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Aug. 28, 2016 | Feb. 28, 2016 |
Allowance for doubtful accounts receivable | $ 326 | $ 324 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 28, 2016 | Aug. 30, 2015 | Aug. 28, 2016 | Aug. 30, 2015 | |
Net sales | $ 29,058 | $ 37,947 | $ 60,548 | $ 75,776 |
Cost of sales | 21,824 | 27,586 | 44,527 | 54,048 |
Gross profit | 7,234 | 10,361 | 16,021 | 21,728 |
Selling, general and administrative expenses | 5,110 | 5,009 | 10,447 | 10,810 |
Restructuring charges (Note 6) | 23 | 91 | 93 | 215 |
Earnings from operations | 2,101 | 5,261 | 5,481 | 10,703 |
Interest expense (Note 5) | 334 | 356 | 667 | 725 |
Interest and other income | 369 | 317 | 747 | 582 |
Earnings before income taxes | 2,136 | 5,222 | 5,561 | 10,560 |
Income tax provision (Note 9) | 155 | 653 | 630 | 1,214 |
Net earnings | $ 1,981 | $ 4,569 | $ 4,931 | $ 9,346 |
Earnings per share (Note 7): | ||||
Basic earnings per share (in dollars per share) | $ 0.10 | $ 0.23 | $ 0.24 | $ 0.46 |
Basic weighted average shares (in shares) | 20,235 | 20,337 | 20,235 | 20,442 |
Diluted earnings per share (in dollars per share) | $ 0.10 | $ 0.23 | $ 0.24 | $ 0.46 |
Diluted weighted average shares (in shares) | 20,235 | 20,340 | 20,235 | 20,453 |
Dividends declared per share (in dollars per share) | $ 0.10 | $ 0.10 | $ 0.20 | $ 0.20 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Earnings (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 28, 2016 | Aug. 30, 2015 | Aug. 28, 2016 | Aug. 30, 2015 | |
Gains on Marketable Securities [Member] | ||||
Unrealized gains on marketable securities: | ||||
Unrealized holding gains (losses) arising during the period | $ 11 | $ 14 | $ 11 | $ 29 |
Less: reclassification adjustment for gains (losses) included in net earnings | (3) | (55) | (6) | |
Losses on Marketable Securities [Member] | ||||
Unrealized gains on marketable securities: | ||||
Unrealized holding gains (losses) arising during the period | (45) | (128) | (69) | (71) |
Less: reclassification adjustment for gains (losses) included in net earnings | 19 | 3 | 34 | 3 |
Net earnings | 1,981 | 4,569 | 4,931 | 9,346 |
Foreign currency translation | 26 | 8 | 5 | 63 |
Other comprehensive earnings (loss) | 11 | (106) | (74) | 18 |
Total comprehensive earnings | $ 1,992 | $ 4,463 | $ 4,857 | $ 9,364 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | ||
Aug. 28, 2016 | Aug. 30, 2015 | ||
Cash flows from operating activities: | |||
Net earnings | $ 4,931 | $ 9,346 | |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation and amortization | 1,652 | 1,677 | |
Stock-based compensation | 704 | 841 | |
Provision for deferred income taxes | (10,860) | ||
Amortization of bond premium | 278 | 454 | |
Changes in operating assets and liabilities | 1,252 | 523 | |
Net cash provided by operating activities | 8,817 | 1,981 | |
Cash flows from investing activities: | |||
Purchase of property, plant and equipment | (94) | (226) | |
Proceeds from sales of property, plant and eqipment | 2,026 | ||
Purchases of marketable securities | (27,102) | (49,388) | |
Proceeds from sales and maturities of marketable securities | 29,478 | 39,005 | |
Net cash provided by (used in) investing activities | 2,282 | (8,583) | |
Cash flows from financing activities: | |||
Dividends paid | (4,047) | (4,104) | |
Restricted cash (Note 5) | (25,000) | ||
Proceeds from exercise of stock options | 50 | ||
Payments of long-term debt | (1,500) | (5,000) | |
Purchase of treasury stock | (11,925) | ||
Net cash used in financing activities | (5,547) | (45,979) | |
Increase (decrease) in cash and cash equivalents before effect of exchange rate changes | 5,552 | (52,581) | |
Effect of exchange rate changes on cash and cash equivalents | 129 | 422 | |
Increase (decrease) in cash and cash equivalents | 5,681 | (52,159) | |
Cash and cash equivalents, beginning of period | 97,757 | [1] | 141,538 |
Cash and cash equivalents, end of period | 103,438 | 89,379 | |
Supplemental cash flow information: | |||
Cash paid during the period for income taxes, net of refunds | 1,763 | 12,859 | |
Cash paid during the period for interest | $ 653 | $ 410 | |
[1] | The balance sheet at February 28, 2016 has been derived from the audited financial statements at that date. |
Note 1 - Consolidated Financial
Note 1 - Consolidated Financial Statements | 6 Months Ended |
Aug. 28, 2016 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. CONSOLIDATED FINANCIAL STATEMENTS The Condensed Consolidated Balance Sheet as of August 28, 2016, the Consolidated Statements of Operations and the Consolidated Statements of Comprehensive Earnings for the 13 weeks and 26 weeks ended August 28, 2016 and August 30, 2015 and the Condensed Consolidated Statements of Cash Flows for the 26 weeks then ended have been prepared by Park Electrochemical Corp. (the “Company”), without audit. In the opinion of management, these unaudited consolidated financial statements contain all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position at August 28, 2016 and the results of operations and cash flows for all periods presented. The Consolidated Statements of Operations are not necessarily indicative of the results to be expected for the full fiscal year or any subsequent interim period. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) have been condensed or omitted. It is suggested that these consolidated financial statements 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 February 28, 2016. There have been no significant changes to such accounting policies during the 26 weeks ended August 28, 2016. |
Note 2 - Fair Value Measurement
Note 2 - Fair Value Measurements | 6 Months Ended |
Aug. 28, 2016 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 2 . FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability ( i.e Fair value measurements are broken down into three levels based on the reliability of inputs as follows: Level 1 inputs are quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, inputs other than quoted prices that are observable for the asset or liability ( e.g. Level 3 inputs are unobservable inputs for the asset or liability. Unobservable inputs are used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. The fair value of the Company’s cash and cash equivalents, accounts receivable, accounts payable and current liabilities approximate their carrying value due to their short-term nature. Due to the variable interest rates periodically adjusting with the current LIBOR, the carrying value of outstanding borrowings under the Company’s long-term debt approximates its fair value. (See Note 5). Certain assets and liabilities of the Company are required to be recorded at fair value on either a recurring or non-recurring basis. On a recurring basis, the Company records its marketable securities at fair value using Level 1 or Level 2 inputs. (See Note 3). The Company’s non-financial assets measured at fair value on a non-recurring basis include goodwill and any long-lived assets written down to fair value. To measure fair value of such assets, the Company uses Level 3 inputs consisting of techniques including an income approach and a market approach. The income approach is based on a discounted cash flow analysis and calculates the fair value by estimating the after-tax cash flows attributable to a reporting unit and then discounting the after-tax cash flows to a present value using a risk-adjusted discount rate. Assumptions used in the discounted cash flow analysis require the exercise of significant judgment, including judgment about appropriate discount rates, terminal values, growth rates and the amount and timing of expected future cash flows. There were no transfers between levels within the fair value hierarchy during the 26 weeks ended August 28, 2016 and August 30, 2015. With respect to goodwill, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value is less than its carrying value. If, based on that assessment, the Company believes it is more likely than not that the fair value is less than its carrying value, a two-step goodwill impairment test is performed. There have been no changes in events or circumstances which required impairment charges to be recorded during the 26 weeks ended August 28, 2016. |
Note 3 - Marketable Securities
Note 3 - Marketable Securities | 6 Months Ended |
Aug. 28, 2016 | |
Notes to Financial Statements | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | 3 . MARKETABLE SECURITIES All marketable securities are classified as available-for-sale and are carried at fair value, with the unrealized gains and losses, net of tax, included in comprehensive earnings. Realized gains and losses, amortization of premiums and discounts, and interest and dividend income are included in interest and other income in the Consolidated Statements of Operations. The costs of securities sold are based on the specific identification method. The following is a summary of available-for-sale securities: August 28, 2016 Total Level 1 Level 2 Level 3 U.S. Treasury and other government securities $ 115,770 $ 115,770 $ - $ - U.S. corporate debt securities 20,498 20,498 - - Total marketable securities $ 136,268 $ 136,268 $ - $ - February 28, 2016 Total Level 1 Level 2 Level 3 U.S. Treasury and other government securities $ 118,194 $ 118,194 $ - $ - U.S. corporate debt securities 21,474 21,474 - - Total marketable securities $ 139,668 $ 139,668 $ - $ - The following table shows the amortized cost basis of, and gross unrealized gains and losses on, the Company’s available-for-sale securities: Amortized Cost Basis Gross Unrealized Gains Gross Unrealized Losses August 28, 2016: U.S. Treasury and other government securities $ 115,655 $ 298 $ 183 U.S. corporate debt securities 20,517 4 23 Total marketable securities $ 136,172 $ 302 $ 206 February 28, 2016: U.S. Treasury and other government securities $ 117,897 $ 372 $ 74 U.S. corporate debt securities 21,554 - 81 Total marketable securities $ 139,451 $ 372 $ 155 The estimated fair values of such securities at August 28, 2016 by contractual maturity are shown below: Due in one year or less $ 67,498 Due after one year through five years 68,770 $ 136,268 |
Note 4 - Inventories
Note 4 - Inventories | 6 Months Ended |
Aug. 28, 2016 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 4 . INVENTORIES Inventories are stated at the lower of cost (first-in, first-out method) or market. The Company writes down its inventory for estimated obsolescence or unmarketability based upon the age of the inventory and assumptions about future demand for the Company's products and market conditions. Inventories consisted of the following: August 28, February 28, 2016 2016 Inventories: Raw materials $ 6,844 $ 5,462 Work-in-process 2,169 2,215 Finished goods 2,455 2,172 Manufacturing supplies 281 365 $ 11,749 $ 10,214 |
Note 5 - Long-term Debt
Note 5 - Long-term Debt | 6 Months Ended |
Aug. 28, 2016 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 5 . LONG-TERM DEBT On February 12, 2014, the Company entered into a four-year amended and restated revolving credit facility agreement (the “Amended Credit Agreement”) with PNC Bank, National Association (“PNC Bank”). The Amended Credit Agreement provided for loans up to $104,000 to the Company and letters of credit up to $2,000 for the account of the Company. Through January 15, 2016, the Company had borrowed $52,000 to finance a special dividend paid to shareholders of the Company in the 2014 fiscal year fourth quarter and an additional $52,000 to continue the loan that was provided under a prior credit agreement with PNC Bank, and PNC Bank had issued two standby letters of credit for the account of the Company in the total amount of $1,075 to secure the Company’s obligations under its workers’ compensation insurance program. During the 2016 fiscal year, the Company made principal payments of $10,000 in accordance with the Amended Credit Agreement. On January 15, 2016, the Company entered into a three-year revolving credit facility agreement (the “Credit Agreement”) with HSBC Bank USA, National Association (“HSBC Bank”). This Credit Agreement replaced the Amended Credit Agreement that the Company entered into with PNC Bank in February 2014 described in the preceding paragraph. The Credit Agreement provides for loans up to $75,000 and letters of credit up to $2,000. The $75,000 is payable in twelve quarterly installments of $750 each, beginning in March 2016, with the remaining amount outstanding under the Credit Agreement payable on January 26, 2019. Borrowings under the Credit Agreement bear interest at a rate equal to, at the Company’s option, either (a) a fluctuating rate per annum (computed on the basis of a year of 365 or 366 days, as the case may be, and actual days elapsed) equal to the Base Rate (as defined in the Credit Agreement), such interest rate to change automatically from time to time effective as of the effective date of each change in the Base Rate or (b) a rate per annum (computed on the basis of a year of 360 days and actual days elapsed) equal to the one, two, three or six month LIBOR plus 1.15%. Under the Credit Agreement, the Company is also obligated to pay to HSBC Bank a nonrefundable commitment fee equal to 0.10% per annum (computed on the basis of a year of 360 days and actual days elapsed) multiplied by the average daily difference between the amount of (i) the revolving credit commitment plus the letter of credit facility and (ii) the revolving facility usage, payable quarterly in arrears. The Credit Agreement contains certain customary affirmative and negative covenants, including customary financial covenants. The covenants under the Credit Agreement require the Company to (a) maintain a gross leverage charge ratio not to exceed 3.75 to 1.00 beginning with the fiscal quarter first ending after January 26, 2016 and continuing thereafter, (b) maintain a minimum fixed charge coverage ratio of 1.10 to 1.00 beginning with the fiscal quarter first ending after January 26, 2016 and continuing thereafter, and (c) maintain a minimum quick ratio of 2.00 to 1.00 beginning with the fiscal quarter first ending after January 26, 2016 and continuing thereafter. In addition, the Company must maintain minimum domestic liquid assets of $10,000 in cash held at all times in a domestic deposit account. At August 28, 2016, $73,500 of indebtedness was outstanding under the Credit Agreement with an interest rate of 1.75%. Interest expense recorded under the Credit Agreement and the Amended Credit Agreement was $334 and $667 during the 13-week and 26-week periods ended August 28, 2016, respectively, and $356 and $725 during the 13-week and 26-week periods ended August 30, 2015, respectively. |
Note 6 - Restructuring Charges
Note 6 - Restructuring Charges | 6 Months Ended |
Aug. 28, 2016 | |
Notes to Financial Statements | |
Restructuring and Related Activities Disclosure [Text Block] | 6. RESTRUCTURING CHARGES During the 2013 fiscal year, the Company closed its Nelco Technology (Zhuhai FTZ) Ltd. business unit located in Zhuhai, China. The Nelco Technology (Zhuhai FTZ) Ltd. building was sold for $2,026 during the first quarter of the 2016 fiscal year. There was no gain or loss on the sale of the building, since the carrying value of the building was equal to the selling price. The Company paid $0 and $38 during the 13 weeks ended August 28, 2016 and August 30, 2015, respectively, and $0 and $75 during the 26 weeks ended August 28, 2016 and August 30, 2015, respectively, of additional pre-tax charges related to such closure. The Company recorded additional restructuring charges of $23 and $53 during the 13 weeks ended August 28, 2016 and August 30, 2015, respectively, and $93 and $140 during the 26 weeks ended August 28, 2016 and August 30, 2015, respectively, related to the closure in the 2009 fiscal year of the Company’s New England Laminates Co., Inc. business unit located in Newburgh, New York. The New England Laminates Co., Inc. building in Newburgh, New York is held for sale. In the 2004 fiscal year, the Company reduced the book value of the building to zero, and the Company intends to sell it during the 2017 fiscal year. |
Note 7 - Earnings Per Share
Note 7 - Earnings Per Share | 6 Months Ended |
Aug. 28, 2016 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 7 . EARNINGS PER SHARE Basic earnings per share are computed by dividing net earnings by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share are computed by dividing net earnings by the sum of (a) the weighted average number of shares of common stock outstanding during the period and (b) the potentially dilutive securities outstanding during the period. Stock options are the only potentially dilutive securities; and the number of dilutive options is computed using the treasury stock method. The following table sets forth the calculation of basic and diluted earnings per share: 13 Weeks Ended 26 Weeks Ended August 28, 2016 August 30, 2015 August 28, 2016 August 30, 2015 Net earnings $ 1,981 $ 4,569 $ 4,931 $ 9,346 Weighted average common shares 20,235 20,337 20,235 20,442 Net effect of dilutive options - 3 - 11 Weighted average shares outstanding for diluted EPS 20,235 20,340 20,235 20,453 Basic earnings per share $ 0.10 $ 0.23 $ 0.24 $ 0.46 Diluted earnings per share $ 0.10 $ 0.23 $ 0.24 $ 0.46 Potentially dilutive securities, which were not included in the computation of diluted earnings per share because either the effect would have been anti-dilutive or the options’ exercise prices were greater than the average market price of the common stock, were 882,000 and 926,000 for the 13 weeks ended August 28, 2016 and August 30, 2015, respectively, and 953,000 and 812,000 for the 26 weeks ended August 28, 2016 and August 30, 2015, respectively. |
Note 8 - Shareholders' Equity
Note 8 - Shareholders' Equity | 6 Months Ended |
Aug. 28, 2016 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 8 . SHAREHOLDERS’ EQUITY On January 8, 2015, the Company announced that its Board of Directors authorized the Company’s purchase, on the open market and in privately negotiated transactions, of up to 1,250,000 shares of its common stock, representing 6% of the Company’s 20,945,634 total outstanding shares as of the close of business on January 7, 2015. This authorization supersedes all prior Board of Directors’ authorizations to purchase shares of the Company’s common stock. On March 10, 2016, the Company announced that its Board of Directors authorized the Company’s purchase, on the open market and in privately negotiated transactions, of up to 1,000,000 additional shares of its common stock, in addition to the unused prior authorization to purchase shares of the Company’s common stock announced on January 8, 2015. As a result, the Company is authorized to purchase up to a total of 1,531,412 shares of its common stock, representing approximately 7.6% of the Company’s 20,234,671 total outstanding shares as of the close of business on October 3, 2016. The Company did not purchase any shares of its common stock during the 26 weeks ended August 28, 2016 and purchased 444,834 shares during the 26 weeks ended August 30, 2015. |
Note 9 - Income Taxes
Note 9 - Income Taxes | 6 Months Ended |
Aug. 28, 2016 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 9 . INCOME TAXES The Company’s effective tax rates for the 13 weeks and 26 weeks ended August 28, 2016 were 7.3% and 11.3%, respectively, compared to 12.5% and 11.5%, respectively, for the 13 weeks and 26 weeks ended August 30, 2015. The lower effective tax rate for the 13 weeks ended August 28, 2016 was primarily due to lower taxable income in low tax rate jurisdictions to offset taxable losses in higher tax rate jurisdictions. The Company continuously evaluates the liquidity and capital requirements of its operations in the United States and of its foreign operations. As a result of such evaluation during the 2014 fiscal year, the Company recorded a non-cash charge for the accrual of U.S. deferred income taxes in the amount of $63,958 on undistributed earnings of the Company’s subsidiary in Singapore. In the 2016 fiscal year, the Company repatriated $61,000 to the United States and paid income taxes of $10,682 to the respective tax authorities. |
Note 10 - Geographic Regions
Note 10 - Geographic Regions | 6 Months Ended |
Aug. 28, 2016 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 10 . GEOGRAPHIC REGIONS The Company is a global advanced materials company which develops, manufactures, markets and sells advanced composite materials, primary and secondary structures and assemblies and low-volume tooling for the aerospace markets and high-technology digital and RF/microwave printed circuit materials principally for the telecommunications and internet infrastructure, enterprise and military/aerospace markets. The Company’s products are sold to customers in North America, Asia and Europe. The Company’s manufacturing facilities are located in Kansas, Singapore, France, Arizona and California. The Company operates as a single operating segment, which is advanced materials for the electronics and aerospace markets, with common management and identical or very similar economic characteristics, products, raw materials, manufacturing processes and equipment, customers and markets, marketing, sales and distribution methods and regulatory environments. The chief operating decision maker reviews financial information on a consolidated basis. Sales are attributed to geographic regions based upon the region in which the materials were delivered to the customer. Sales between geographic regions were not significant. Financial information regarding the Company’s operations by geographic region is as follows: 13 Weeks Ended 26 Weeks Ended August 28, 2016 August 30, 2015 August 28, 2016 August 30, 2015 Sales: North America $ 15,990 $ 21,329 $ 32,827 $ 39,645 Asia 11,119 14,557 23,266 31,790 Europe 1,949 2,061 4,455 4,341 Total sales $ 29,058 $ 37,947 $ 60,548 $ 75,776 August 28, 2016 February 28, 2016 Long-lived assets: North America $ 20,614 $ 21,618 Asia 8,920 9,459 Europe 268 268 Total long-lived assets $ 29,802 $ 31,345 |
Note 11 - Contingencies
Note 11 - Contingencies | 6 Months Ended |
Aug. 28, 2016 | |
Notes to Financial Statements | |
Contingencies Disclosure [Text Block] | 11 . CONTINGENCIES Litigation The Company is subject to a number of proceedings, lawsuits and other claims related to environmental, employment, product and other matters. The Company is required to assess the likelihood of any adverse judgments or outcomes in these matters as well as potential ranges of probable losses. A determination of the amount of reserves required, if any, for these contingencies is made after careful analysis of each individual issue. The required reserves may change in the future due to new developments in each matter or changes in approach, such as a change in settlement strategy in dealing with these matters. The Company believes that the ultimate disposition of such proceedings, lawsuits and claims will not have a material adverse effect on the Company’s liquidity, capital resources or business or its consolidated results of operations, cash flows or financial position. Environmental Contingencies The Company and certain of its subsidiaries have been named by the Environmental Protection Agency (the "EPA") or a comparable state agency under the Comprehensive Environmental Response, Compensation and Liability Act (the "Superfund Act") or similar state law as potentially responsible parties in connection with alleged releases of hazardous substances at four sites. Under the Superfund Act and similar state laws, all parties who may have contributed any waste to a hazardous waste disposal site or contaminated area identified by the EPA or comparable state agency may be jointly and severally liable for the cost of cleanup. Generally, these sites are locations at which numerous persons disposed of hazardous waste. In the case of the Company's subsidiaries, generally the waste was removed from their manufacturing facilities and disposed at waste sites by various companies which contracted with the subsidiaries to provide waste disposal services. Neither the Company nor any of its subsidiaries have been accused of or charged with any wrongdoing or illegal acts in connection with any such sites. The Company believes it maintains an effective and comprehensive environmental compliance program. The insurance carriers who provided general liability insurance coverage to the Company and its subsidiaries for the years during which the Company's subsidiaries' waste was disposed at these sites have in the past reimbursed the Company and its subsidiaries for 100% of their legal defense and remediation costs associated with three of these sites. The total costs incurred by the Company and its subsidiaries in connection with these sites, including legal fees incurred by the Company and its subsidiaries and their assessed share of remediation costs and excluding amounts paid or reimbursed by insurance carriers, were $1 and $1 in the 13 weeks and 26 weeks, respectively, ended August 28, 2016 and $1 and $2 in the 13 weeks and 26 weeks, respectively, ended August 30, 2015. The Company had no recorded liabilities for environmental matters at August 28, 2016 or February 28, 2016. The Company does not record environmental liabilities and related legal expenses for which the Company believes that it and its subsidiaries have general liability insurance coverage for the years during which the Company's subsidiaries' waste was disposed at three sites for which certain subsidiaries of the Company have been named as potentially responsible parties. Pursuant to such general liability insurance coverage, three insurance carriers reimburse the Company and its subsidiaries for 100% of the legal defense and remediation costs associated with the three sites. Included in selling, general and administrative expenses are charges for actual expenditures and accruals, based on estimates, for certain environmental matters described above. The Company accrues estimated costs associated with known environmental matters, when such costs can be reasonably estimated and when the outcome appears probable. The Company believes that the ultimate disposition of known environmental matters will not have a material adverse effect on the Company’s liquidity, capital resources or business or its consolidated results of operations, cash flows or financial position. |
Note 12 - Accounting Pronouncem
Note 12 - Accounting Pronouncements | 6 Months Ended |
Aug. 28, 2016 | |
Notes to Financial Statements | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | 12 . ACCOUNTING PRONOUNCEMENTS Recently Issued In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) In April 2015, the FASB issued ASU No. 2015-03, Interest — Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs Interest — Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements — Amendments to SEC Paragraphs Pursuant to Staff Announcements at the June 2015 EITF Meeting In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) In August 2016, the FASB issued ASU No. 2016-15 , Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments, |
Note 3 - Marketable Securities
Note 3 - Marketable Securities (Tables) | 6 Months Ended |
Aug. 28, 2016 | |
Notes Tables | |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Table Text Block] | August 28, 2016 Total Level 1 Level 2 Level 3 U.S. Treasury and other government securities $ 115,770 $ 115,770 $ - $ - U.S. corporate debt securities 20,498 20,498 - - Total marketable securities $ 136,268 $ 136,268 $ - $ - February 28, 2016 Total Level 1 Level 2 Level 3 U.S. Treasury and other government securities $ 118,194 $ 118,194 $ - $ - U.S. corporate debt securities 21,474 21,474 - - Total marketable securities $ 139,668 $ 139,668 $ - $ - |
Schedule of Unrealized Loss on Investments [Table Text Block] | Amortized Cost Basis Gross Unrealized Gains Gross Unrealized Losses August 28, 2016: U.S. Treasury and other government securities $ 115,655 $ 298 $ 183 U.S. corporate debt securities 20,517 4 23 Total marketable securities $ 136,172 $ 302 $ 206 February 28, 2016: U.S. Treasury and other government securities $ 117,897 $ 372 $ 74 U.S. corporate debt securities 21,554 - 81 Total marketable securities $ 139,451 $ 372 $ 155 |
Investments Classified by Contractual Maturity Date [Table Text Block] | Due in one year or less $ 67,498 Due after one year through five years 68,770 $ 136,268 |
Note 4 - Inventories (Tables)
Note 4 - Inventories (Tables) | 6 Months Ended |
Aug. 28, 2016 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | August 28, February 28, 2016 2016 Inventories: Raw materials $ 6,844 $ 5,462 Work-in-process 2,169 2,215 Finished goods 2,455 2,172 Manufacturing supplies 281 365 $ 11,749 $ 10,214 |
Note 7 - Earnings Per Share (Ta
Note 7 - Earnings Per Share (Tables) | 6 Months Ended |
Aug. 28, 2016 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | 13 Weeks Ended 26 Weeks Ended August 28, 2016 August 30, 2015 August 28, 2016 August 30, 2015 Net earnings $ 1,981 $ 4,569 $ 4,931 $ 9,346 Weighted average common shares 20,235 20,337 20,235 20,442 Net effect of dilutive options - 3 - 11 Weighted average shares outstanding for diluted EPS 20,235 20,340 20,235 20,453 Basic earnings per share $ 0.10 $ 0.23 $ 0.24 $ 0.46 Diluted earnings per share $ 0.10 $ 0.23 $ 0.24 $ 0.46 |
Note 10 - Geographic Regions (T
Note 10 - Geographic Regions (Tables) | 6 Months Ended |
Aug. 28, 2016 | |
Notes Tables | |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | 13 Weeks Ended 26 Weeks Ended August 28, 2016 August 30, 2015 August 28, 2016 August 30, 2015 Sales: North America $ 15,990 $ 21,329 $ 32,827 $ 39,645 Asia 11,119 14,557 23,266 31,790 Europe 1,949 2,061 4,455 4,341 Total sales $ 29,058 $ 37,947 $ 60,548 $ 75,776 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | August 28, 2016 February 28, 2016 Long-lived assets: North America $ 20,614 $ 21,618 Asia 8,920 9,459 Europe 268 268 Total long-lived assets $ 29,802 $ 31,345 |
Note 3 - Summary of Available-f
Note 3 - Summary of Available-for-sale Securities (Details) - USD ($) $ in Thousands | Aug. 28, 2016 | Feb. 28, 2016 |
US Treasury and Government [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Marketable securities | $ 115,770 | $ 118,194 |
US Treasury and Government [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Marketable securities | ||
US Treasury and Government [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Marketable securities | ||
US Treasury and Government [Member] | ||
Marketable securities | 115,770 | 118,194 |
Domestic Corporate Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Marketable securities | 20,498 | 21,474 |
Domestic Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Marketable securities | ||
Domestic Corporate Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Marketable securities | ||
Domestic Corporate Debt Securities [Member] | ||
Marketable securities | 20,498 | 21,474 |
Fair Value, Inputs, Level 1 [Member] | ||
Marketable securities | 136,268 | 139,668 |
Fair Value, Inputs, Level 2 [Member] | ||
Marketable securities | ||
Fair Value, Inputs, Level 3 [Member] | ||
Marketable securities | ||
Marketable securities | $ 136,268 | $ 139,668 |
Note 3 - Summary of Unrealized
Note 3 - Summary of Unrealized Gains/Losses on Available-for-sale Securities (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Aug. 28, 2016 | Feb. 28, 2016 | |
US Treasury and Government [Member] | ||
Amortized Cost Basis | $ 115,655 | $ 117,897 |
Gross Unrealized Gains | 298 | 372 |
Gross Unrealized Losses | 183 | 74 |
Domestic Corporate Debt Securities [Member] | ||
Amortized Cost Basis | 20,517 | 21,554 |
Gross Unrealized Gains | 4 | |
Gross Unrealized Losses | 23 | 81 |
Amortized Cost Basis | 136,172 | 139,451 |
Gross Unrealized Gains | 302 | 372 |
Gross Unrealized Losses | $ 206 | $ 155 |
Note 3 - Estimated Fair Value o
Note 3 - Estimated Fair Value of Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Aug. 28, 2016 | Feb. 28, 2016 |
Due in one year or less | $ 67,498 | |
Due after one year through five years | 68,770 | |
$ 136,268 | $ 139,668 |
Note 4 - Inventories (Details)
Note 4 - Inventories (Details) - USD ($) $ in Thousands | Aug. 28, 2016 | Feb. 28, 2016 | |
Inventories: | |||
Raw materials | $ 6,844 | $ 5,462 | |
Work-in-process | 2,169 | 2,215 | |
Finished goods | 2,455 | 2,172 | |
Manufacturing supplies | 281 | 365 | |
$ 11,749 | $ 10,214 | [1] | |
[1] | The balance sheet at February 28, 2016 has been derived from the audited financial statements at that date. |
Note 5 - Long-term Debt (Detail
Note 5 - Long-term Debt (Details Textual) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | 23 Months Ended | |||
Aug. 28, 2016USD ($) | Aug. 30, 2015USD ($) | Aug. 28, 2016USD ($) | Aug. 30, 2015USD ($) | Feb. 28, 2016USD ($) | Jan. 15, 2016USD ($) | Feb. 12, 2014USD ($) | |
PNC Bank National Association [Member] | Letter of Credit [Member] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,000 | ||||||
PNC Bank National Association [Member] | To Finance a Special Dividend Paid to Shareholders [Member] | |||||||
Proceeds from Lines of Credit | $ 52,000 | ||||||
PNC Bank National Association [Member] | To Continue the Loan [Member] | |||||||
Proceeds from Lines of Credit | $ 52,000 | ||||||
PNC Bank National Association [Member] | Standby Letters of Credit [Member] | |||||||
Number of Standby Letter of Credit Issued | 2 | ||||||
Long-term Line of Credit | $ 1,075 | ||||||
PNC Bank National Association [Member] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 104,000 | ||||||
Repayments of Long-term Lines of Credit | $ 10,000 | ||||||
Interest Expense | $ 334 | $ 356 | $ 667 | $ 725 | |||
HSBC Bank USA [Member] | Letter of Credit [Member] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | 2,000 | ||||||
HSBC Bank USA [Member] | Debt Instrument, Redemption, Period One [Member] | |||||||
Debt Instrument, Periodic Payment | $ 750 | ||||||
Number of Quarterly Installments | 12 | ||||||
HSBC Bank USA [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 1.15% | ||||||
HSBC Bank USA [Member] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 75,000 | ||||||
Long-term Line of Credit | $ 73,500 | $ 73,500 | |||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.10% | ||||||
Minimum Gross Leverage Charge Ratio | 3.75 | 3.75 | |||||
Minimum Interest Coverage Ratio | 1.1 | 1.1 | |||||
Minimum Domestic Liquid Assets Ratio | 2 | 2 | |||||
Debt Agreement, Minimum Domestic Liquid Assets Required | $ 10,000 | $ 10,000 | |||||
Line of Credit Facility, Interest Rate at Period End | 1.75% | 1.75% | |||||
Interest Expense | $ 334 | $ 356 | $ 667 | $ 725 |
Note 6 - Restructuring Charges
Note 6 - Restructuring Charges (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Aug. 28, 2016 | Aug. 30, 2015 | May 31, 2015 | Aug. 28, 2016 | Aug. 30, 2015 | Feb. 29, 2004 | |
Nelco Technology Zhuhai FTZ Ltd [Member] | ||||||
Proceeds from Sale of Property, Plant, and Equipment | $ 2,026,000 | |||||
Business Exit Costs | $ 0 | $ 38,000 | $ 0 | $ 75,000 | ||
Gain (Loss) on Disposition of Property Plant Equipment | 0 | |||||
New England Laminates Co Inc [Member] | ||||||
Business Exit Costs | $ 23,000 | $ 53,000 | 93,000 | 140,000 | ||
Real Estate Held-for-sale | $ 0 | |||||
Proceeds from Sale of Property, Plant, and Equipment | $ 2,026,000 |
Note 7 - Earnings Per Share (De
Note 7 - Earnings Per Share (Details Textual) - shares | 3 Months Ended | 6 Months Ended | ||
Aug. 28, 2016 | Aug. 30, 2015 | Aug. 28, 2016 | Aug. 30, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 882,000 | 926,000 | 953,000 | 812,000 |
Note 7 - Basic and Diluted Earn
Note 7 - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 28, 2016 | Aug. 30, 2015 | Aug. 28, 2016 | Aug. 30, 2015 | |
Net earnings | $ 1,981 | $ 4,569 | $ 4,931 | $ 9,346 |
Weighted average common shares outstanding for basic EPS (in shares) | 20,235 | 20,337 | 20,235 | 20,442 |
Net effect of dilutive options (in shares) | 3 | 11 | ||
Weighted average shares outstanding for diluted EPS (in shares) | 20,235 | 20,340 | 20,235 | 20,453 |
Basic earnings per share (in dollars per share) | $ 0.10 | $ 0.23 | $ 0.24 | $ 0.46 |
Diluted earnings per share (in dollars per share) | $ 0.10 | $ 0.23 | $ 0.24 | $ 0.46 |
Note 8 - Shareholders' Equity (
Note 8 - Shareholders' Equity (Details Textual) - shares | 3 Months Ended | 6 Months Ended | |||||||
Aug. 28, 2016 | Aug. 30, 2015 | Aug. 28, 2016 | Aug. 30, 2015 | May 06, 2016 | Mar. 10, 2016 | Jan. 08, 2015 | Jan. 07, 2015 | Oct. 18, 2012 | |
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 1,531,412 | 1,250,000 | 1,000,000 | ||||||
Stock Repurchase Program, Percentage of Outstanding Shares Authorized to be Repurchased | 7.60% | 6.00% | |||||||
Common Stock, Shares, Outstanding | 20,234,671 | 20,945,634 | |||||||
Stock Repurchased During Period, Shares | 0 | 444,834 | 0 | 444,834 |
Note 9 - Income Taxes (Details
Note 9 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Aug. 28, 2016 | Aug. 30, 2015 | Mar. 02, 2014 | Aug. 28, 2016 | Aug. 30, 2015 | Nov. 29, 2015 | |
SINGAPORE | ||||||
Deferred Income Taxes Settlement, Repatriation of Foreign Earnings | $ 10,682 | |||||
Effective Income Tax Rate Reconciliation, Percent | 7.30% | 12.50% | 11.30% | 11.50% | ||
Tax Expense, Allocated to Undistributed Foreign Earnings | $ 63,958 | |||||
Foreign Earnings Repatriated | $ 61,000 |
Note 10 - Financial Information
Note 10 - Financial Information by Geographic Region, Sale (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 28, 2016 | Aug. 30, 2015 | Aug. 28, 2016 | Aug. 30, 2015 | |
North America [Member] | ||||
Sales | $ 15,990 | $ 21,329 | $ 32,827 | $ 39,645 |
Asia [Member] | ||||
Sales | 11,119 | 14,557 | 23,266 | 31,790 |
Europe [Member] | ||||
Sales | 1,949 | 2,061 | 4,455 | 4,341 |
Sales | $ 29,058 | $ 37,947 | $ 60,548 | $ 75,776 |
Note 10 - Financial Informati34
Note 10 - Financial Information by Geographic Region, Assets (Details) - USD ($) $ in Thousands | Aug. 28, 2016 | Feb. 28, 2016 |
North America [Member] | ||
Long-lived assets | $ 20,614 | $ 21,618 |
Asia [Member] | ||
Long-lived assets | 8,920 | 9,459 |
Europe [Member] | ||
Long-lived assets | 268 | 268 |
Long-lived assets | $ 29,802 | $ 31,345 |
Note 11 - Contingencies (Detail
Note 11 - Contingencies (Details Textual) | 3 Months Ended | 6 Months Ended | |||
Aug. 28, 2016USD ($) | Aug. 30, 2015USD ($) | Aug. 28, 2016USD ($) | Aug. 30, 2015USD ($) | Feb. 28, 2016USD ($) | |
Number of Sites of Company or Subsidiaries That Have Been Named for Potential Environmental Remediation Liability | 4 | ||||
Percentage of Legal Defense and Remediation Costs Associated with Sites Reimbursed by Insurance Carriers | 100.00% | ||||
Number of Units Covered Under General Liability Insurance Coverage | 3 | ||||
Litigation Settlement, Expense | $ 1,000 | $ 1,000 | $ 1,000 | $ 2,000 | |
Accrual for Environmental Loss Contingencies | $ 0 | $ 0 | $ 0 | ||
Number of Insurance Carriers | 2 |