Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
May 31, 2020 | Jul. 03, 2020 | |
Document Information [Line Items] | ||
Entity Registrant Name | PARK Aerospace CORP | |
Entity Central Index Key | 0000076267 | |
Trading Symbol | pke | |
Current Fiscal Year End Date | --03-01 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding (in shares) | 20,381,426 | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | May 31, 2020 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Title of 12(b) Security | Common Stock, par value $.10 per share |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | May 31, 2020 | Mar. 01, 2020 | |
Current assets | |||
Cash and cash equivalents | $ 8,405 | $ 5,410 | [1] |
Marketable securities (Note 3) | 112,665 | 116,945 | [1] |
Accounts receivable, less allowance for doubtful accounts of $77 and $73, respectively | 6,590 | 10,925 | [1] |
Inventories (Note 4) | 6,680 | 6,379 | [1] |
Prepaid expenses and other current assets | 5,243 | 5,535 | [1] |
Total current assets | 139,583 | 145,194 | [1] |
Property, plant and equipment, net | 18,364 | 16,100 | [1] |
Operating right-of-use assets | 387 | 420 | [1] |
Goodwill and other intangible assets | 9,804 | 9,804 | [1] |
Other assets | 264 | 268 | [1] |
Total assets | 168,402 | 171,786 | [1] |
Current liabilities | |||
Accounts payable | 2,487 | 4,735 | [1] |
Operating lease liability (Note 5) | 142 | 152 | [1] |
Accrued liabilities | 1,361 | 1,709 | [1] |
Income taxes payable | 2,824 | 2,111 | [1] |
Total current liabilities | 6,814 | 8,707 | [1] |
Long-term operating lease liability (Note 5) | 245 | 268 | [1] |
Non-current income taxes payable (Note 9) | 15,986 | 15,986 | [1] |
Deferred income taxes (Note 9) | 793 | 834 | [1] |
Other liabilities | 4,367 | 4,316 | [1] |
Total liabilities | 28,205 | 30,111 | [1] |
Commitments and contingencies (Note 12) | |||
Shareholders' equity (Note 8) | |||
Common stock | 2,096 | 2,096 | [1] |
Additional paid-in capital | 169,905 | 169,862 | [1] |
Accumulated deficit | (21,855) | (21,774) | [1] |
Accumulated other comprehensive earnings | 872 | 668 | [1] |
Stockholders' Equity, Including Treasury Stock | 151,018 | 150,852 | [1] |
Less treasury stock, at cost | (10,821) | (9,177) | [1] |
Total shareholders' equity | 140,197 | 141,675 | [1] |
Total liabilities and shareholders' equity | $ 168,402 | $ 171,786 | [1] |
[1] | The balance sheet at March 1, 2020 has been derived from the audited consolidated finacial statements at that date. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | May 31, 2020 | Mar. 01, 2020 | |
Accounts receivable, allowance for doubtful accounts | $ 77 | $ 73 | [1] |
[1] | The balance sheet at March 1, 2020 has been derived from the audited consolidated finacial statements at that date. |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
May 31, 2020 | Jun. 02, 2019 | |
Net sales | $ 12,213 | $ 14,950 |
Cost of sales | 8,539 | 10,146 |
Gross profit | 3,674 | 4,804 |
Selling, general and administrative expenses | 1,630 | 1,922 |
Earnings from continuing operations | 2,044 | 2,882 |
Interest and other income | 656 | 948 |
Earnings from continuing operations before income taxes | 2,700 | 3,830 |
Income tax provision (Note 9) | 728 | 1,116 |
Net earnings from continuing operations | 1,972 | 2,714 |
Loss from discontinued operations, net of tax (Note 11) | (15) | (127) |
Net earnings | $ 1,957 | $ 2,587 |
Basic: | ||
Continuing operations (in dollars per share) | $ 0.10 | $ 0.13 |
Discontinued operations (in dollars per share) | ||
Basic earnings per share (in dollars per share) | $ 0.10 | $ 0.13 |
Basic weighted average shares (in shares) | 20,402 | 20,492 |
Diluted: | ||
Continuing operations (in dollars per share) | $ 0.10 | $ 0.13 |
Discontinued operations (in dollars per share) | ||
Diluted earnings per share (in dollars per share) | $ 0.10 | $ 0.13 |
Diluted weighted average shares (in shares) | 20,460 | 20,586 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Earnings (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
May 31, 2020 | Jun. 02, 2019 | |
Net earnings | $ 1,957 | $ 2,587 |
Other comprehensive earnings, net of tax: | ||
Other comprehensive earnings | 204 | 346 |
Total comprehensive earnings | 2,161 | 2,933 |
Gains on Marketable Securities [Member] | ||
Other comprehensive earnings, net of tax: | ||
Unrealized holding gains (losses) arising during the period | 288 | 344 |
Less: reclassification adjustment for gains (losses) included in net earnings | (17) | (8) |
Losses on Marketable Securities [Member] | ||
Other comprehensive earnings, net of tax: | ||
Unrealized holding gains (losses) arising during the period | (67) | (3) |
Less: reclassification adjustment for gains (losses) included in net earnings | $ 13 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Treasury Stock [Member] | Total | |
Balance (in shares) at Mar. 03, 2019 | 20,965,144 | 479,191 | |||||
Balance at Mar. 03, 2019 | $ 2,096 | $ 169,395 | $ (2,605) | $ (22) | $ (9,853) | ||
Net earnings | 2,587 | $ 2,587 | |||||
Unrealized gain (loss) on marketable securities, net of tax | 346 | ||||||
Stock-based compensation | 124 | ||||||
Cash dividends ($0.10 per share) | (2,049) | ||||||
Outstanding options, exercised (in shares) | (6,200) | ||||||
Stock options exercised | (56) | $ 127 | |||||
Balance (in shares) at Jun. 02, 2019 | 20,965,144 | 472,991 | |||||
Balance at Jun. 02, 2019 | $ 2,096 | 169,463 | (2,067) | 324 | $ (9,726) | ||
Balance (in shares) at Mar. 01, 2020 | 20,965,144 | 446,321 | |||||
Balance at Mar. 01, 2020 | $ 2,096 | 169,862 | (21,774) | 668 | $ (9,177) | 141,675 | [1] |
Net earnings | 1,957 | $ 1,957 | |||||
Unrealized gain (loss) on marketable securities, net of tax | 204 | ||||||
Stock-based compensation | 43 | ||||||
Repurchase of treasury shares (in shares) | 137,397 | ||||||
Repurchase of treasury shares | $ (1,644) | ||||||
Cash dividends ($0.10 per share) | (2,038) | ||||||
Outstanding options, exercised (in shares) | |||||||
Balance (in shares) at May. 31, 2020 | 20,965,144 | 583,718 | |||||
Balance at May. 31, 2020 | $ 2,096 | $ 169,905 | $ (21,855) | $ 872 | $ (10,821) | $ 140,197 | |
[1] | The balance sheet at March 1, 2020 has been derived from the audited consolidated finacial statements at that date. |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | |
May 31, 2020 | Jun. 02, 2019 | |
Retained Earnings [Member] | ||
Cash dividends, per share (in dollars per share) | $ 0.10 | $ 0.10 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
May 31, 2020 | Jun. 02, 2019 | |
Cash flows from operating activities: | ||
Net earnings from continuing operations | $ 1,972 | $ 2,714 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 277 | 366 |
Stock-based compensation | 43 | 124 |
Deferred income taxes | (41) | 97 |
Amortization of bond premium | (8) | (56) |
Changes in operating assets and liabilities | 2,498 | (470) |
Net cash provided by operating activities - continuing operations | 4,741 | 2,775 |
Net cash used in operating activities - discontinued operations | (15) | (127) |
Net cash provided by operating activities | 4,726 | 2,648 |
Cash flows from investing activities: | ||
Purchase of property, plant and equipment | (2,541) | (1,860) |
Purchases of marketable securities | (15,008) | (34,046) |
Proceeds from sales and maturities of marketable securities | 19,500 | 14,196 |
Net cash provided by (used in) investing activities - continuing operations | 1,951 | (21,710) |
Net cash used in investing activities - discontinued operations | ||
Net cash provided by (used in) investing activities | 1,951 | (21,710) |
Cash flows from financing activities: | ||
Dividends paid | (2,038) | (2,049) |
Proceeds from exercise of stock options | 71 | |
Purchase of treasury stock | (1,644) | |
Net cash used in financing activities - continuing operations | (3,682) | (1,978) |
Net cash used in financing activities - discontinued operations | ||
Net cash used in financing activities | (3,682) | (1,978) |
Increase (decrease) in cash and cash equivalents before effect of exchange rate changes - continuing operations | 3,010 | (20,913) |
Decrease in cash and cash equivalents before effect of exchange rate changes - discontinued operations | (15) | (127) |
Increase (decrease) in cash and cash equivalents before effect of exchange rate changes | 2,995 | (21,040) |
Effect of exchange rate changes on cash and cash equivalents - continuing operations | ||
Effect of exchange rate changes on cash and cash equivalents - discontinued operations | ||
Effect of exchange rate changes on cash and cash equivalents | ||
Increase (decrease) in cash and cash equivalents: | 2,995 | (21,040) |
Cash and cash equivalents, beginning of period | 5,410 | 71,007 |
Cash and cash equivalents, end of period | 8,405 | 49,967 |
Supplemental cash flow information: | ||
Cash paid during the period for income taxes, net of refunds | $ (323) |
Note 1 - Consolidated Financial
Note 1 - Consolidated Financial Statements | 3 Months Ended |
May 31, 2020 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1 . CONSOLIDATED FINANCIAL STATEMENTS The Condensed Consolidated Balance Sheet and the Consolidated Statements of Shareholders’ Equity as of May 31, 2020, 13 May 31, 2020 June 2, 2019, 13 May 31, 2020 not 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 March 1, 2020. no 13 May 31, 2020. |
Note 2 - Fair Value Measurement
Note 2 - Fair Value Measurements | 3 Months Ended |
May 31, 2020 | |
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 Level 1 Level 2 1 2 e.g. Level 3 not The fair value of the Company’s cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their carrying value due to their short-term nature. 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 2 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 first not not no 13 May 31, 2020. |
Note 3 - Marketable Securities
Note 3 - Marketable Securities | 3 Months Ended |
May 31, 2020 | |
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: May 31, 2020 Total Level 1 Level 2 Level 3 U.S. Treasury and other government securities $ 94,120 $ 94,120 $ - $ - U.S. corporate debt securities 18,545 18,545 - - Total marketable securities $ 112,665 $ 112,665 $ - March 1, 2020 Total Level 1 Level 2 Level 3 U.S. Treasury and other government securities $ 101,390 $ 101,390 $ - $ - U.S. corporate debt securities 15,555 15,555 - - Total marketable securities $ 116,945 $ 116,945 $ - $ - 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 May 31, 2020: U.S. Treasury and other government securities $ 93,075 $ 1,045 $ - U.S. corporate debt securities 18,486 118 59 Total marketable securities $ 111,561 $ 1,163 $ 59 March 1, 2020: U.S. Treasury and other government securities $ 100,626 $ 764 $ - U.S. corporate debt securities 15,473 82 - Total marketable securities $ 116,099 $ 846 $ - The estimated fair values of such securities at May 31, 2020 Due in one year or less $ 37,690 Due after one year through five years 74,975 $ 112,665 |
Note 4 - Inventories
Note 4 - Inventories | 3 Months Ended |
May 31, 2020 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 4 . INVENTORIES Inventories are stated at the lower of cost ( first first May 31, March 1, 2020 2020 Inventories: Raw materials $ 5,481 $ 5,319 Work-in-process 205 254 Finished goods 994 806 $ 6,680 $ 6,379 |
Note 5 - Leases
Note 5 - Leases | 3 Months Ended |
May 31, 2020 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | 5. L EASES The Company has operating leases related to land, office space, warehouse space and equipment. All of the Company’s leases have been assessed to be operating leases. Renewal options are included in the lease term to the extent the Company is reasonably certain to exercise the option. The exercise of lease renewal options is at the Company’s sole discretion. The incremental borrowing rate represents the Company’s ability to borrow on a collateralized basis over a term similar to the lease term. The leases typically contain renewal options for periods ranging from one ten 2068 not Future minimum lease payments under non-cancellable operating leases as of May 31, 2020 Fiscal Year: 2021 $ 114 2022 90 2023 61 2024 61 2025 - Thereafter 161 Total undiscounted operating lease payments 487 Less imputed interest (100 ) Present value of operating lease payments $ 387 The above payment schedule includes renewal options that the Company is reasonably likely to exercise. Leases with an initial term of 12 not not $136 2021 For the three May 31, 2020, $40. $38, The following table sets forth the right-of-use assets and operating lease liabilities as of May 31, 2020: Operating right-of-use assets $ 387 Operating lease liabilities $ 142 Long-term operating lease liabilities 245 Total operating lease liabilities $ 387 The Company’s weighted average remaining lease term for its operating leases is 5.9 In December 2018, 90,000 five three eight $18.0 second 2020 May 31, 2020, $960 $9,968 July 16, 2019, |
Note 6 - Stock-based Compensati
Note 6 - Stock-based Compensation | 3 Months Ended |
May 31, 2020 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | 6 . STOCK-BASED COMPENSATION As of May 31, 2020, 2018 “2018 no 2018 May 8, 2018 July 24, 2018 800,000 2018 2002 “2002 2018 2002 25% one 25% 10 not may 2018 2018 The 2002 May 21, 2018, 2002 2002 April 2028 During the 13 May 31, 2020, 2018 129,100 $267 $2.13 0.23% 0.42%; 26.9% 27.2%; 3.18%; 4.3 7.6 The risk-free interest rates were based on U.S. Treasury rates at the date of grant with maturity dates approximately equal to the estimated terms of the options at the date of the grant. Volatility factors were based on historical volatility of the Company’s common stock. The expected dividend yields were based on the regular quarterly cash dividend per share most recently declared by the Company and on the exercise price of the options granted during the 13 May 31, 2020. The following is a summary of option activity for the 13 May 31, 2020: Outstanding Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Balance, March 1, 2020 510,634 $ 12.45 $ - Granted 129,100 12.58 Exercised - - Terminated or expired (2,250 ) 14.46 Balance, May 31, 2020 637,484 $ 12.47 4.19 $ - Vested and exercisable, May 31, 2020 427,472 $ 11.88 5.94 $ 107 |
Note 7 - Earnings Per Share
Note 7 - Earnings Per Share | 3 Months Ended |
May 31, 2020 | |
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 May 31, June 2, Net earnings - continuing operations $ 1,972 $ 2,714 Net loss - discontinued operations (15 ) (127 ) Net earnings $ 1,957 $ 2,587 Weighted average common shares outstanding for basic EPS 20,402 20,492 Net effect of dilutive options 58 94 Weighted average shares outstanding for diluted EPS 20,460 20,586 Basic earnings per share - continuing operations $ 0.10 $ 0.13 Basic earnings per share - discontinued operations $ - $ - Basic earnings per share $ 0.10 $ 0.13 Diluted earnings per share - continuing operations $ 0.10 $ 0.13 Diluted earnings per share - discontinued operations - - Diluted earnings per share $ 0.10 $ 0.13 Potentially dilutive securities, which were not 426,000 191,000 13 May 31, 2020 June 2, 2019, |
Note 8 - Shareholders' Equity
Note 8 - Shareholders' Equity | 3 Months Ended |
May 31, 2020 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 8 . SHAREHOLDERS ’ EQUITY On January 8, 2015, 1,250,000 6% 20,945,634 January 7, 2015. On March 10, 2016, 1,000,000 January 8, 2015. 1,394,015 6.8% 20,381,426 July 3, 2020. The Company purchased 137,397 0 13 May 31, 2020 June 2, 2019, |
Note 9 - Income Taxes
Note 9 - Income Taxes | 3 Months Ended |
May 31, 2020 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 9 . INCOME TAXES For the 13 May 31, 2020, $728, $41. 13 June 2, 2019, $1,116. The Company’s effective tax rate for the 13 May 31, 2020 27.0%, 29.1% 13 May 31, 2020 21% 13 June 2, 2019 21% Notwithstanding the U.S. taxation of the deemed repatriated earnings as a result of the mandatory one 2017 $25 may |
Note 10 - Geographic Regions
Note 10 - Geographic Regions | 3 Months Ended |
May 31, 2020 | |
Notes to Financial Statements | |
Geographic Regions [Text Block] | 1 0 . GEOGRAPHIC REGIONS The Company’s products are sold to customers in North America, Asia and Europe. The Company’s manufacturing facilities are located in Kansas. 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 Financial information regarding the Company’s continuing operations by geographic region is as follows: 13 Weeks Ended May 31, June 2, Sales: North America $ 11,746 $ 14,190 Asia 189 252 Europe 278 508 Total sales $ 12,213 $ 14,950 May 31, March 1, 2020 Long-lived assets: North America $ 27,209 $ 24,942 Asia 1,610 1,650 Europe - - Total long-lived assets $ 28,819 $ 26,592 |
Note 11 - Discontinued Operatio
Note 11 - Discontinued Operations | 3 Months Ended |
May 31, 2020 | |
Notes to Financial Statements | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | 1 1 . DISCONTINUED OPERATIONS On July 25, 2018, $145,000 December 4, 2018. The Company has classified the operating results of its Electronics Business, together with certain costs related to the transaction, as discontinued operations, net of tax, in the Consolidated Statements of Operations. The following table shows the summary operating results of the discontinued operations: 13 Weeks Ended (Unaudited) May 31, June 2, 2020 2019 Net sales $ - $ - Cost of sales - - Gross profit - - Selling, general and administrative expenses - 136 Restructuring charges 20 33 Loss from discontinued operations (20 ) (169 ) Other income - - Loss from discontinued operations before income taxes (20 ) (169 ) Income tax benefit (5 ) (42 ) Net loss from discontinued operations $ (15 ) $ (127 ) During the 2018 $74, February 28, 2021. The following table sets forth the charges and accruals related to the consolidation: Accrual March 1, 2020 Current Period Charges Cash Payments Non-Cash Charges Accrual Total Expense Accrued to Date Total Expected Costs Facility Lease Costs $ 432 $ 13 $ (244 ) $ - $ 201 $ 2,942 $ 3,000 Severance Costs - - - - - 1,081 1,081 Equipment Removal - - - - - 586 586 Other - 7 (7 ) - - 934 950 Total Restructuring Charges $ 432 $ 20 $ (251 ) $ - $ 201 $ 5,543 $ 5,617 |
Note 12 - Contingencies
Note 12 - Contingencies | 3 Months Ended |
May 31, 2020 | |
Notes to Financial Statements | |
Contingencies Disclosure [Text Block] | 1 2 . CONTINGENCIES Litigation The Company is subject to a small number of immaterial 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 not 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 three Under the Superfund Act and similar state laws, all parties who may may The insurance carriers which 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 three 100% two The Company does not two three 100% two 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 |
Note 13 - Accounting Pronouncem
Note 13 - Accounting Pronouncements | 3 Months Ended |
May 31, 2020 | |
Notes to Financial Statements | |
Accounting Standards Update and Change in Accounting Principle [Text Block] | 1 3 . A CCOUNT I NG P RONOUNCEMENTS Recently Adopted In August 2018, No. 2018 13, Fair Value Measurement (Topic 820 Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement 1 2 3 February 28, 2021 first 2021 2018 13 not Recently Issued In June 2018, No. 2016 13, Financial Instruments – Credit Losses (Topic 326 December 15, 2019 ( January 1, 2020, not December 15, 2020, December 15, 2020, December 15, 2021. 2016 13 not In December 2019, No. 2019 12, Income Taxes (Topic 740 2019 12 December 15, 2020, December 15, 2021 December 15, 2022. 1 not 2 not |
Note 14 - COVID-19 Pandemic
Note 14 - COVID-19 Pandemic | 3 Months Ended |
May 31, 2020 | |
Notes to Financial Statements | |
Effect of COVID-19 Pandemic [Text Block] | 14. 19 In December 2019, 19 The COVID- 19 May 31, 2020. 19 |
Note 3 - Marketable Securities
Note 3 - Marketable Securities (Tables) | 3 Months Ended |
May 31, 2020 | |
Notes Tables | |
Debt Securities, Available-for-sale [Table Text Block] | May 31, 2020 Total Level 1 Level 2 Level 3 U.S. Treasury and other government securities $ 94,120 $ 94,120 $ - $ - U.S. corporate debt securities 18,545 18,545 - - Total marketable securities $ 112,665 $ 112,665 $ - March 1, 2020 Total Level 1 Level 2 Level 3 U.S. Treasury and other government securities $ 101,390 $ 101,390 $ - $ - U.S. corporate debt securities 15,555 15,555 - - Total marketable securities $ 116,945 $ 116,945 $ - $ - |
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | Amortized Cost Basis Gross Unrealized Gains Gross Unrealized Losses May 31, 2020: U.S. Treasury and other government securities $ 93,075 $ 1,045 $ - U.S. corporate debt securities 18,486 118 59 Total marketable securities $ 111,561 $ 1,163 $ 59 March 1, 2020: U.S. Treasury and other government securities $ 100,626 $ 764 $ - U.S. corporate debt securities 15,473 82 - Total marketable securities $ 116,099 $ 846 $ - |
Investments Classified by Contractual Maturity Date [Table Text Block] | Due in one year or less $ 37,690 Due after one year through five years 74,975 $ 112,665 |
Note 4 - Inventories (Tables)
Note 4 - Inventories (Tables) | 3 Months Ended |
May 31, 2020 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | May 31, March 1, 2020 2020 Inventories: Raw materials $ 5,481 $ 5,319 Work-in-process 205 254 Finished goods 994 806 $ 6,680 $ 6,379 |
Note 5 - Leases (Tables)
Note 5 - Leases (Tables) | 3 Months Ended |
May 31, 2020 | |
Notes Tables | |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Fiscal Year: 2021 $ 114 2022 90 2023 61 2024 61 2025 - Thereafter 161 Total undiscounted operating lease payments 487 Less imputed interest (100 ) Present value of operating lease payments $ 387 |
Schedule of Right-of-use Assets and Operating Lease Liabilities [Table Text Block] | Operating right-of-use assets $ 387 Operating lease liabilities $ 142 Long-term operating lease liabilities 245 Total operating lease liabilities $ 387 |
Note 6 - Stock-based Compensa_2
Note 6 - Stock-based Compensation (Tables) | 3 Months Ended |
May 31, 2020 | |
Notes Tables | |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | Outstanding Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Balance, March 1, 2020 510,634 $ 12.45 $ - Granted 129,100 12.58 Exercised - - Terminated or expired (2,250 ) 14.46 Balance, May 31, 2020 637,484 $ 12.47 4.19 $ - Vested and exercisable, May 31, 2020 427,472 $ 11.88 5.94 $ 107 |
Note 7 - Earnings Per Share (Ta
Note 7 - Earnings Per Share (Tables) | 3 Months Ended |
May 31, 2020 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | 13 Weeks Ended May 31, June 2, Net earnings - continuing operations $ 1,972 $ 2,714 Net loss - discontinued operations (15 ) (127 ) Net earnings $ 1,957 $ 2,587 Weighted average common shares outstanding for basic EPS 20,402 20,492 Net effect of dilutive options 58 94 Weighted average shares outstanding for diluted EPS 20,460 20,586 Basic earnings per share - continuing operations $ 0.10 $ 0.13 Basic earnings per share - discontinued operations $ - $ - Basic earnings per share $ 0.10 $ 0.13 Diluted earnings per share - continuing operations $ 0.10 $ 0.13 Diluted earnings per share - discontinued operations - - Diluted earnings per share $ 0.10 $ 0.13 |
Note 10 - Geographic Regions (T
Note 10 - Geographic Regions (Tables) | 3 Months Ended |
May 31, 2020 | |
Notes Tables | |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | 13 Weeks Ended May 31, June 2, Sales: North America $ 11,746 $ 14,190 Asia 189 252 Europe 278 508 Total sales $ 12,213 $ 14,950 May 31, March 1, 2020 Long-lived assets: North America $ 27,209 $ 24,942 Asia 1,610 1,650 Europe - - Total long-lived assets $ 28,819 $ 26,592 |
Note 11 - Discontinued Operat_2
Note 11 - Discontinued Operations (Tables) | 3 Months Ended |
May 31, 2020 | |
Notes Tables | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | 13 Weeks Ended (Unaudited) May 31, June 2, 2020 2019 Net sales $ - $ - Cost of sales - - Gross profit - - Selling, general and administrative expenses - 136 Restructuring charges 20 33 Loss from discontinued operations (20 ) (169 ) Other income - - Loss from discontinued operations before income taxes (20 ) (169 ) Income tax benefit (5 ) (42 ) Net loss from discontinued operations $ (15 ) $ (127 ) |
Restructuring and Related Costs [Table Text Block] | Accrual March 1, 2020 Current Period Charges Cash Payments Non-Cash Charges Accrual Total Expense Accrued to Date Total Expected Costs Facility Lease Costs $ 432 $ 13 $ (244 ) $ - $ 201 $ 2,942 $ 3,000 Severance Costs - - - - - 1,081 1,081 Equipment Removal - - - - - 586 586 Other - 7 (7 ) - - 934 950 Total Restructuring Charges $ 432 $ 20 $ (251 ) $ - $ 201 $ 5,543 $ 5,617 |
Note 3 - Marketable Securitie_2
Note 3 - Marketable Securities - Summary of Available-for-sale Securities (Details) - USD ($) $ in Thousands | May 31, 2020 | Mar. 01, 2020 |
Available-for-sale securities | $ 112,665 | $ 116,945 |
Fair Value, Inputs, Level 1 [Member] | ||
Available-for-sale securities | 112,665 | 116,945 |
Fair Value, Inputs, Level 2 [Member] | ||
Available-for-sale securities | ||
Fair Value, Inputs, Level 3 [Member] | ||
Available-for-sale securities | ||
US Treasury and Government [Member] | ||
Available-for-sale securities | 94,120 | 101,390 |
US Treasury and Government [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Available-for-sale securities | 94,120 | 101,390 |
US Treasury and Government [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available-for-sale securities | ||
US Treasury and Government [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Available-for-sale securities | ||
Debt Security, Corporate, US [Member] | ||
Available-for-sale securities | 18,545 | 15,555 |
Debt Security, Corporate, US [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Available-for-sale securities | 18,545 | 15,555 |
Debt Security, Corporate, US [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available-for-sale securities | ||
Debt Security, Corporate, US [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Available-for-sale securities |
Note 3 - Marketable Securitie_3
Note 3 - Marketable Securities - Summary of Unrealized Gains and Losses on Available-for-sale Securities (Details) - USD ($) $ in Thousands | May 31, 2020 | Mar. 01, 2020 |
Amortized cost basis | $ 111,561 | $ 116,099 |
Gross unrealized gains | 1,163 | 846 |
Gross unrealized losses | 59 | |
US Treasury and Government [Member] | ||
Amortized cost basis | 93,075 | 100,626 |
Gross unrealized gains | 1,045 | 764 |
Gross unrealized losses | ||
Debt Security, Corporate, US [Member] | ||
Amortized cost basis | 18,486 | 15,473 |
Gross unrealized gains | 118 | 82 |
Gross unrealized losses | $ 59 |
Note 3 - Marketable Securitie_4
Note 3 - Marketable Securities - Estimated Fair Value of Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | May 31, 2020 | Mar. 01, 2020 |
Due in one year or less | $ 37,690 | |
Due after one year through five years | 74,975 | |
Debt Securities, Available-for-sale, Total | $ 112,665 | $ 116,945 |
Note 4 - Inventories - Summary
Note 4 - Inventories - Summary of Inventories (Details) - USD ($) $ in Thousands | May 31, 2020 | Mar. 01, 2020 | |
Raw materials | $ 5,481 | $ 5,319 | |
Work-in-process | 205 | 254 | |
Finished goods | 994 | 806 | |
Inventory, Net, Total | $ 6,680 | $ 6,379 | [1] |
[1] | The balance sheet at March 1, 2020 has been derived from the audited consolidated finacial statements at that date. |
Note 5 - Leases (Details Textua
Note 5 - Leases (Details Textual) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Dec. 31, 2018USD ($)ft² | May 31, 2020USD ($) | Mar. 01, 2020USD ($) | |
Operating Lease, Expense | $ 40 | ||
Operating Lease, Payments | $ 38 | ||
Operating Lease, Weighted Average Remaining Lease Term (Year) | 5 years 328 days | ||
Additional Manufacturing Facility [Member] | |||
Area of Land (Square Foot) | ft² | 90,000 | ||
Construction in Progress Estimated Cost | $ 18,000 | ||
Purchase Obligation, Total | $ 960 | ||
Construction in Progress, Gross | $ 9,968 | ||
Accounts Payable and Accrued Liabilities [Member] | |||
Lessee, Operating Lease, Liability, to be Paid, Remainder of Fiscal Year | $ 136 | ||
Minimum [Member] | |||
Lessee, Operating Lease, Renewal Term (Year) | 1 year | ||
Maximum [Member] | |||
Lessee, Operating Lease, Renewal Term (Year) | 10 years |
Note 5 - Leases - Future Minimu
Note 5 - Leases - Future Minimum Lease Payments (Details) $ in Thousands | May 31, 2020USD ($) |
Present value of operating lease payments | $ 387 |
Leases with Renewal Options [Member] | |
2021 | 114 |
2022 | 90 |
2023 | 61 |
2024 | 61 |
2025 | |
Thereafter | 161 |
Total undiscounted operating lease payments | 487 |
Less imputed interest | (100) |
Present value of operating lease payments | $ 387 |
Note 5 - Leases - Schedule of R
Note 5 - Leases - Schedule of Right-of-use Assets and Operating Lease Liabilities (Details) - USD ($) $ in Thousands | May 31, 2020 | Mar. 01, 2020 | [1] |
Operating right-of-use assets | $ 387 | $ 420 | |
Operating lease liabilities | 142 | 152 | |
Long-term operating lease liabilities | 245 | $ 268 | |
Total operating lease liabilities | $ 387 | ||
[1] | The balance sheet at March 1, 2020 has been derived from the audited consolidated finacial statements at that date. |
Note 6 - Stock-based Compensa_3
Note 6 - Stock-based Compensation (Details Textual) - USD ($) $ in Thousands | Jul. 24, 2018 | May 31, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares) | 129,100 | |
Share-based Payment Arrangement, Option [Member] | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 267 | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 2 years 47 days | |
The 2018 Stock Option Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 800,000 | |
Percentage of Stock Options, Exercisable One Year From Date of Grant | 25.00% | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 1 year | |
Percentage of Stock Options Exercisable On Each Succeeding Year from Date of Grant | 25.00% | |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year) | 10 years | |
The 2018 Stock Option Plan [Member] | Directors and Certain of Employees [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares) | 129,100 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 3.18% | |
The 2018 Stock Option Plan [Member] | Directors and Certain of Employees [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.23% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 26.90% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term (Year) | 4 years 109 days | |
The 2018 Stock Option Plan [Member] | Directors and Certain of Employees [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.42% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 27.20% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term (Year) | 7 years 219 days |
Note 6 - Stock-based Compensa_4
Note 6 - Stock-based Compensation - Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
May 31, 2020 | Mar. 01, 2020 | |
Outstanding options (in shares) | 510,634 | |
Balance, weighted average exercise price (in dollars per share) | $ 12.45 | |
Outstanding aggregate intrinsic value | ||
Outstanding options, granted (in shares) | 129,100 | |
Granted, weighted average exercise price (in dollars per share) | $ 12.58 | |
Outstanding options, exercised (in shares) | ||
Exercised, weighted average exercise price (in dollars per share) | ||
Outstanding options, terminated or expired (in shares) | (2,250) | |
Terminated or expired, weighted average exercise price (in dollars per share) | $ 14.46 | |
Outstanding options (in shares) | 637,484 | |
Balance, weighted average exercise price (in dollars per share) | $ 12.47 | |
Balance, weighted average remaining contractual term (Year) | 4 years 69 days | |
Outstanding options, vested and exercisable (in shares) | 427,472 | |
Vested and exercisable, weighted average exercise price (in dollars per share) | $ 11.88 | |
Vested and exercisable, weighted average remaining contractual term (Year) | 5 years 343 days | |
Vested and exercisable, aggregate intrinsic value | $ 107 |
Note 7 - Earnings Per Share (De
Note 7 - Earnings Per Share (Details Textual) - shares | 3 Months Ended | |
May 31, 2020 | Jun. 02, 2019 | |
Share-based Payment Arrangement, Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 426,000 | 191,000 |
Note 7 - Earnings Per Share - B
Note 7 - Earnings Per Share - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
May 31, 2020 | Jun. 02, 2019 | |
Net earnings - continuing operations | $ 1,972 | $ 2,714 |
Net loss - discontinued operations | (15) | (127) |
Net earnings | $ 1,957 | $ 2,587 |
Weighted average common shares outstanding for basic EPS (in shares) | 20,402 | 20,492 |
Net effect of dilutive options (in shares) | 58 | 94 |
Weighted average shares outstanding for diluted EPS (in shares) | 20,460 | 20,586 |
Basic earnings per share - continuing operations (in dollars per share) | $ 0.10 | $ 0.13 |
Basic earnings per share - discontinued operations (in dollars per share) | ||
Basic earnings per share (in dollars per share) | 0.10 | 0.13 |
Diluted earnings per share - continuing operations (in dollars per share) | 0.10 | 0.13 |
Diluted earnings per share - discontinued operations (in dollars per share) | ||
Diluted earnings per share (in dollars per share) | $ 0.10 | $ 0.13 |
Note 8 - Shareholders' Equity (
Note 8 - Shareholders' Equity (Details Textual) - shares | Mar. 10, 2016 | May 31, 2020 | Jun. 02, 2019 | Jun. 03, 2020 | Jan. 08, 2015 | Jan. 07, 2015 |
Stock Repurchase Program, Number of Shares Authorized to be Repurchased (in shares) | 1,250,000 | |||||
Stock Repurchase Program, Percentage of Outstanding Shares Authorized to be Repurchased | 6.00% | |||||
Common Stock, Shares, Outstanding, Ending Balance (in shares) | 20,945,634 | |||||
Stock Repurchase Program, Number of Additional Shares Authorized to be Repurchased (in shares) | 1,000,000 | |||||
Stock Repurchased During Period, Shares (in shares) | 137,397 | 0 | ||||
Subsequent Event [Member] | ||||||
Stock Repurchase Program, Percentage of Outstanding Shares Authorized to be Repurchased | 6.80% | |||||
Common Stock, Shares, Outstanding, Ending Balance (in shares) | 20,381,426 | |||||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased (in shares) | 1,394,015 |
Note 9 - Income Taxes (Details
Note 9 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
May 31, 2020 | Jun. 02, 2019 | Mar. 01, 2020 | |
Income Tax Expense (Benefit), Total | $ 728 | $ 1,116 | |
Income Tax Expense (Benefit), Discrete Amount | $ 41 | ||
Effective Income Tax Rate Reconciliation, Percent, Total | 27.00% | 29.10% | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | ||
Undistributed Earnings, Basic, Total | $ 25,000 |
Note 10 - Geographic Regions -
Note 10 - Geographic Regions - Financial Information by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
May 31, 2020 | Jun. 02, 2019 | Mar. 01, 2020 | |
Net sales | $ 12,213 | $ 14,950 | |
Long-lived assets | 28,819 | $ 26,592 | |
North America [Member] | |||
Net sales | 11,746 | 14,190 | |
Long-lived assets | 27,209 | 24,942 | |
Asia [Member] | |||
Net sales | 189 | 252 | |
Long-lived assets | 1,610 | 1,650 | |
Europe [Member] | |||
Net sales | 278 | $ 508 | |
Long-lived assets |
Note 11 - Discontinued Operat_3
Note 11 - Discontinued Operations (Details Textual) - USD ($) $ in Thousands | May 31, 2020 | Dec. 04, 2018 |
Consolidation of Nelco Products, Inc. and Neltec, Inc. [Member] | ||
Restructuring and Related Cost, Expected Cost Remaining | $ 74 | |
Electronics Business [Member] | Discontinued Operations, Disposed of by Sale [Member] | ||
Disposal Group, Including Discontinued Operation, Consideration | $ 145,000 |
Note 11 - Discontinued Operat_4
Note 11 - Discontinued Operations - Summary of Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
May 31, 2020 | Jun. 02, 2019 | |
Net sales | ||
Cost of sales | ||
Gross profit | ||
Selling, general and administrative expenses | 136 | |
Restructuring charges | 20 | 33 |
Loss from discontinued operations | (20) | (169) |
Other income | ||
Loss from discontinued operations before income taxes | (20) | (169) |
Income tax benefit | (5) | (42) |
Net loss from discontinued operations | $ (15) | $ (127) |
Note 11 - Discontinued Operat_5
Note 11 - Discontinued Operations - Restructuring Charges (Details) - Consolidation of Nelco Products, Inc. and Neltec, Inc. [Member] $ in Thousands | 3 Months Ended |
May 31, 2020USD ($) | |
Accrued, Beginning Balance | $ 432 |
Current Period Charges | 20 |
Cash Payments | (251) |
Non-Cash Charges | |
Accrued, Ending Balance | 201 |
Total Costs Accrued to Date | 5,543 |
Total Expected Costs | 5,617 |
Facility Lease Costs [Member] | |
Accrued, Beginning Balance | 432 |
Current Period Charges | 13 |
Cash Payments | (244) |
Non-Cash Charges | |
Accrued, Ending Balance | 201 |
Total Costs Accrued to Date | 2,942 |
Total Expected Costs | 3,000 |
Employee Severance [Member] | |
Accrued, Beginning Balance | |
Current Period Charges | |
Cash Payments | |
Non-Cash Charges | |
Accrued, Ending Balance | |
Total Costs Accrued to Date | 1,081 |
Total Expected Costs | 1,081 |
Equipment Removal [Member] | |
Accrued, Beginning Balance | |
Current Period Charges | |
Cash Payments | |
Non-Cash Charges | |
Accrued, Ending Balance | |
Total Costs Accrued to Date | 586 |
Total Expected Costs | 586 |
Other Restructuring [Member] | |
Accrued, Beginning Balance | |
Current Period Charges | 7 |
Cash Payments | (7) |
Non-Cash Charges | |
Accrued, Ending Balance | |
Total Costs Accrued to Date | 934 |
Total Expected Costs | $ 950 |
Note 12 - Contingencies (Detail
Note 12 - Contingencies (Details Textual) $ in Thousands | 3 Months Ended |
May 31, 2020USD ($) | |
Number of Sites of Company or Subsidiaries That Have Been Named for Potential Environmental Remediation Liability | 3 |
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 | 2 |
Accrual for Environmental Loss Contingencies, Ending Balance | $ 0 |
Number of Insurance Carriers | 3 |