Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Aug. 31, 2013 | Nov. 27, 2013 | Feb. 28, 2013 | |
Document Information [Line Items] | ' | ' | ' |
Entity Registrant Name | 'EACO CORP | ' | ' |
Entity Central Index Key | '0000784539 | ' | ' |
Current Fiscal Year End Date | '--08-31 | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Trading Symbol | 'EACO | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 4,861,590 | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Aug-13 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Public Float | ' | ' | $250,000 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $1,507 | $2,568 |
Trade accounts receivable, net | 14,438 | 13,972 |
Inventory, net | 14,272 | 12,189 |
Marketable securities, trading | 1,395 | 197 |
Prepaid expenses and other current assets | 598 | 464 |
Assets held for sale | 460 | 1,860 |
Deferred tax asset, current | 21 | 290 |
Total current assets | 32,691 | 31,540 |
Non-current Assets: | ' | ' |
Restricted cash | 548 | 548 |
Real estate properties held for leasing, net | 7,283 | 7,914 |
Equipment and leasehold improvements, net | 1,396 | 1,106 |
Deferred tax asset | 1,712 | 2,111 |
Other assets, principally deferred charges, net of accumulated amortization | 850 | 1,110 |
Total assets | 44,480 | 44,329 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ' | ' |
Trade accounts payable | 9,315 | 9,519 |
Accrued expenses and other current liabilities | 2,880 | 2,482 |
Liabilities of discontinued operations - short-term | 146 | 146 |
Liabilities of assets held for sale | 362 | 1,575 |
Current portion of long-term debt | 172 | 463 |
Total current liabilities | 12,875 | 14,815 |
Non-current Liabilities: | ' | ' |
Liabilities of discontinued operations - long-term | 2,410 | 2,567 |
Deposit liability | 87 | 147 |
Long-term debt | 11,397 | 12,537 |
Total liabilities | 26,769 | 29,436 |
Shareholders' Equity: | ' | ' |
Convertible preferred stock, $0.01 par value per share; authorized 10,000,000 shares; 36,000 shares outstanding at August 31, 2013 and 2012 (liquidation value $900) | 1 | 1 |
Common stock, $0.01 par value per share; authorized 8,000,000 shares; 4,861,590 shares outstanding at August 31, 2013 and 2012 | 49 | 49 |
Additional paid-in capital | 12,378 | 12,378 |
Accumulated other comprehensive income | 820 | 478 |
Retained earnings | 4,463 | 1,987 |
Total shareholders' equity | 17,711 | 14,893 |
Total liabilities and shareholders' equity | $44,480 | $44,329 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Convertible preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Convertible preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Convertible preferred stock, shares outstanding | 36,000 | 36,000 |
Convertible preferred stock, liquidated (in dollars) | $900 | $900 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 8,000,000 | 8,000,000 |
Common stock, shares outstanding | 4,861,590 | 4,861,590 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 |
Revenues | $120,432 | $114,634 |
Cost of revenues | 86,600 | 82,664 |
Gross margin | 33,832 | 31,970 |
Operating expenses: | ' | ' |
Selling, general and administrative expenses | 30,132 | 27,648 |
Total operating expenses | 30,132 | 27,648 |
Income from operations | 3,700 | 4,322 |
Other non-operating income (expense): | ' | ' |
Income on sale of trading securities | 10 | 287 |
Unrealized gain on trading securities | 5 | 207 |
Gain on sale of assets | 730 | 0 |
Interest expense, net | -584 | -717 |
Income before income taxes | 3,861 | 4,099 |
Provision for income taxes | 1,309 | 1,679 |
Net income | 2,552 | 2,420 |
Cumulative preferred stock dividend | -76 | -76 |
Net income available to common shareholders | $2,476 | $2,344 |
Basic and diluted net income per share (in dollars per share) | $0.51 | $0.48 |
Basic and diluted weighted average common shares outstanding (in shares) | 4,861,590 | 4,861,590 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 |
Net income | $2,552 | $2,420 |
Other comprehensive income (loss), net of tax: | ' | ' |
Foreign translation gain (loss) | 342 | -76 |
Total comprehensive income | $2,894 | $2,344 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (Deficit) (USD $) | Total | Convertible Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income [Member] | Accumulated Earnings (Deficit) [Member] |
In Thousands, except Share data, unless otherwise specified | ||||||
Balance at Aug. 31, 2011 | $12,606 | $1 | $49 | $12,378 | $554 | ($376) |
Balance (in shares) at Aug. 31, 2011 | ' | 36,000 | 4,861,590 | ' | ' | ' |
Preferred dividends | -57 | ' | ' | ' | ' | -57 |
Net income | 2,420 | ' | ' | ' | ' | 2,420 |
Comprehensive income: | ' | ' | ' | ' | ' | ' |
Foreign translation gain (loss) | -76 | ' | ' | ' | -76 | ' |
Comprehensive income | 2,344 | ' | ' | ' | ' | ' |
Balance at Aug. 31, 2012 | 14,893 | 1 | 49 | 12,378 | 478 | 1,987 |
Balance (in shares) at Aug. 31, 2012 | ' | 36,000 | 4,861,590 | ' | ' | ' |
Preferred dividends | -76 | ' | ' | ' | ' | -76 |
Net income | 2,552 | ' | ' | ' | ' | 2,552 |
Comprehensive income: | ' | ' | ' | ' | ' | ' |
Foreign translation gain (loss) | 342 | ' | ' | ' | 342 | ' |
Comprehensive income | 2,894 | ' | ' | ' | ' | ' |
Balance at Aug. 31, 2013 | $17,711 | $1 | $49 | $12,378 | $820 | $4,463 |
Balance (in shares) at Aug. 31, 2013 | ' | 36,000 | 4,861,590 | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 |
Operating activities: | ' | ' |
Net income | $2,552 | $2,420 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ' | ' |
Depreciation and amortization | 616 | 807 |
Bad debt expense | 137 | 200 |
Change in inventory reserve | -48 | 204 |
Gain on sale of assets | -730 | 0 |
Net gain on trading securities | -15 | -494 |
(Increase) decrease in: | ' | ' |
Trade accounts receivable | -602 | -1,824 |
Inventory | -2,035 | -1,004 |
Prepaid expenses and other assets | -93 | -124 |
Deferred tax asset | 667 | 1,284 |
Increase (decrease) in: | ' | ' |
Trade accounts payable | 50 | 1,405 |
Accrued expenses and other current liabilities | 398 | 157 |
Deposit liability | -60 | 0 |
Liabilities of discontinued operations | -157 | -142 |
Net cash provided by operating activities | 680 | 2,889 |
Investing activities: | ' | ' |
Purchase of property and equipment | -756 | -573 |
(Purchase) sale of trading securities | -1,183 | 1,189 |
Proceeds from sale of assets | 2,830 | 0 |
Change in restricted cash | 0 | 84 |
Net cash provided by investing activities | 891 | 700 |
Financing activities: | ' | ' |
Net payments on revolving credit facility | -971 | -1,050 |
Bank overdraft | -254 | -427 |
Payment of preferred dividend | -76 | -57 |
Payments on long-term debt | -1,673 | -779 |
Net cash used in financing activities | -2,974 | -2,313 |
Effect of foreign currency exchange rate changes on cash and cash equivalents | 342 | -76 |
Net (decrease) increase in cash and cash equivalents | -1,061 | 1,200 |
Cash and cash equivalents - beginning of period | 2,568 | 1,368 |
Cash and cash equivalents - end of period | 1,507 | 2,568 |
Supplemental disclosures of cash flow information: | ' | ' |
Cash paid for interest | 815 | 742 |
Cash paid for taxes | 276 | 451 |
Supplemental disclosures of noncash investing and financing activities: | ' | ' |
Note receivable issued in connection with sale of real estate properties | $350 | $0 |
Organization_and_Basis_of_Pres
Organization and Basis of Presentation | 12 Months Ended |
Aug. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ' |
Note 1. Organization and Basis of Presentation | |
EACO Corporation (“EACO”) is a holding company, the primary asset of which is its wholly-owned subsidiary, Bisco Industries, Inc. (“Bisco”). Bisco is a distributor of electronic components and fasteners with 45 sales offices and six distribution centers located throughout the United States and Canada. Bisco supplies parts used in the manufacture of products in a broad range of industries, including the aerospace, circuit board, communication, computer, fabrication, instrumentation, industrial equipment and marine industries. | |
Organization and Merger with Bisco Industries, Inc. | |
EACO was incorporated in the State of Florida in September 1985. From the inception of EACO through June 2005, EACO’s business consisted of operating restaurants in the State of Florida. On June 29, 2005, EACO sold all of its operating restaurants (the “Asset Sale”) including sixteen restaurant businesses, premises, equipment and other assets used in restaurant operations. The only remaining activity of the restaurant operations relates to the workers’ compensation claim liability, which is presented as liabilities of discontinued operations on the Company’s balance sheets. After the Asset Sale and prior to the acquisition of Bisco (described below), EACO’s operations principally consisted of managing five real estate properties held for leasing located in Florida and California. On March 24, 2010, EACO completed the acquisition of Bisco Industries, Inc. (“Bisco”), a company under the common control of EACO’s majority shareholder (Glen Ceiley). | |
Use of Estimates | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. These estimates include allowance for doubtful trade accounts receivable, slow moving and obsolete inventory reserves, recoverability of the carrying value and estimated useful lives of long-lived assets, workers’ compensation liability and the valuation allowance against deferred tax assets. Actual results could differ from those estimates. | |
Principles of Consolidation | |
The consolidated financial statements for all periods presented include the accounts of EACO, its wholly-owned subsidiary, Bisco Industries, Inc., and Bisco’s wholly-owned Canadian subsidiary, Bisco Industries Limited (which are collectively referred to herein as the “Company”, “we”, “us” and “our”). All significant intercompany transactions and balances have been eliminated in consolidation. | |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended |
Aug. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Significant Accounting Policies [Text Block] | ' |
Note 2. Significant Accounting Policies | |
Cash and Cash Equivalents | |
The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. | |
Restricted Cash | |
The State of Florida Division of Workers’ Compensation (the “Division”) requires self-insured companies to pledge collateral in favor of the Division in an amount sufficient to cover the projected outstanding liability. In compliance with this requirement, the Company pledged three irrevocable letters of credit totaling $2,855,000 as of August 31, 2012. In November 2012, the Division lowered the required collateral required by the Company to $2,713,000. These letters are secured by certificates of deposits, totaling $548,000 at August 31, 2013 and 2012, and the Sylmar Property. | |
Trade Accounts Receivable | |
Trade accounts receivable are carried at original invoice amount, less an estimate for an allowance for doubtful accounts. Management determines the allowance for doubtful accounts by identifying probable credit losses in the Company’s accounts receivable and reviewing historical data to estimate the collectability on items not yet specifically identified as problem accounts. Trade accounts receivable are written off when deemed uncollectible. Recoveries of trade accounts receivable previously written off are recorded when received. A trade account receivable is considered past due if any portion of the receivable balance is outstanding for more than 30 days. The Company does not charge interest on past due balances. The allowance for doubtful accounts was $183,000 and $273,000 at August 31, 2013 and 2012, respectively. | |
Inventories | |
Inventories consist primarily of electronic fasteners and components, and are stated at the lower of cost or estimated market value. Cost is determined using the average cost method. Inventories are presented net of a reserve for slow moving or obsolete items of $924,000 and $972,000 at August 31, 2013 and 2012, respectively. The reserve is based upon management’s review of inventories on-hand over their expected future utilization and length of time held by the Company. | |
Real Estate Properties Held for Leasing | |
Real estate properties held for leasing are stated at cost, net of accumulated depreciation. Maintenance, repairs and betterments which do not enhance the value or increase the life of the assets are expensed as incurred. Depreciation is provided for financial reporting purposes principally on the straight-line method over the following estimated useful lives: buildings and improvements - 25 years; land improvements - 25 years; and equipment – 3 to 8 years. Leasehold improvements are amortized over the estimated useful life of the asset or remaining lease term, whichever is less. | |
The Company classifies real estate properties as assets held for sale when the following conditions are present: a) management, having the authority to approve the action, commits to a plan to sell the asset, b) the asset is available for immediate sale in its present condition, c) an active program to complete the plan of sale has been initiated, d) the sale of the asset is probable, e) the assets is being marketed for sale at a price that is reasonable in relation to its current fair value and f) it is unlikely that significant changes to the plan will be made or the plan will be withdrawn. | |
Equipment and Leasehold Improvements | |
Equipment and leasehold improvements not used in conjunction with real estate properties are stated at cost net of accumulated amortization. Depreciation on equipment is calculated on the straight-line method over the estimated useful lives of the assets, ranging from five to seven years. Leasehold improvements are amortized over the estimated useful life of the asset or the remaining lease term, whichever is less. | |
Maintenance and repairs are charged to expense as incurred. Renewals and improvements of a major nature are capitalized. At the time of retirement or disposition of property and equipment, the cost and accumulated depreciation or amortization are removed from the accounts and any gains or losses are reflected in earnings. | |
Long-Lived Assets | |
Long-lived assets (principally real estate, equipment and leasehold improvements) are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For purposes of the impairment review, real estate properties are reviewed on an asset-by-asset basis. Recoverability of real estate property assets is measured by a comparison of the carrying amount of each operating property and related assets to future net cash flows expected to be generated by such assets. For measuring recoverability of remaining assets, long-lived assets are grouped with other assets to the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. If assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds their estimated fair values. | |
Marketable Securities, Trading | |
The Company invests in marketable trading securities which include long and short positions in equity securities. Short positions represent securities sold, not yet purchased. Short sales result in obligations to purchase securities at a later date. | |
These securities are stated at fair value, which is determined using the quoted closing or latest bid prices at each reporting date. Realized gains and losses on investment transactions are determined by the average cost method and are recognized as incurred in the statements of operations. Net unrealized gains and losses are reported in the statements of operations and represent the change in the market value of investment holdings during the period. At August 31, 2013 and 2012, marketable securities consisted of equity securities (including stock options) of publicly-held domestic companies. | |
As of August 31, 2013 and 2012, the Company had no outstanding short sale positions. | |
The Company recognized unrealized gains on trading securities of $5,000 and $207,000 for the years ended August 31, 2013 and 2012, respectively. The Company recognized realized gains on trading securities of $10,000 and $287,000 for the years ended August 31, 2013 and 2012, respectively. | |
Revenue Recognition | |
Management generally recognizes revenue at the time of product shipment, as the Company’s shipping terms are FOB shipping point. Revenue is considered to be realized or realizable and earned when there is persuasive evidence of a sales arrangement in the form of an executed contract or purchase order, the product has been shipped, the sales price is fixed or determinable, and collectability is reasonably assured. | |
The Company leases its real estate properties to tenants under operating leases with terms exceeding one year. Some of these leases contain scheduled rent increases. We record rent revenue for leases which contain scheduled rent increases on a straight-line basis over the term of the lease. Revenues recognized in connection with its real estate held for leasing were immaterial to the overall financial statements. | |
Income Taxes | |
Deferred taxes on income result from temporary differences between the reporting of income for financial statement and tax reporting purposes. A valuation allowance related to a deferred tax asset is recorded when it is more likely than not that some or all of the deferred tax asset will not be realized. | |
We provide tax contingencies, if any, for federal, state, local and international exposures relating to audit results, tax planning initiatives and compliance responsibilities. The development of these reserves requires judgments about tax issues, potential outcomes and timing. Although the outcome of these tax audits is uncertain, in management’s opinion adequate provisions for income taxes have been made for potential liabilities emanating from these reviews. If actual outcomes differ materially from these estimates, they could have a material impact on our results of operations. | |
Freight and Shipping/Handling | |
Shipping and handling expenses are included in cost of goods sold, and were approximately $2,257,000 and $2,157,000 for the years ended August 31, 2013 and 2012, respectively. | |
Leases | |
Certain of the Company’s leases for its sales offices and distribution centers provide for minimum annual payments that adjust over the life of the lease. The aggregate minimum annual payments are expensed on the straight-line basis over the minimum lease term. The Company recognizes a deferred rent liability for rent escalations when the amount of straight-line rent exceeds the lease payments, and reduces the deferred rent liability when the lease payments exceed the straight-line rent expense. | |
Earnings Per Common Share | |
Basic earnings per common share for the years ended August 31, 2013 and 2012 were computed based on the weighted average number of common shares outstanding. Diluted earnings per share for those periods have been computed based on the weighted average number of common shares outstanding, giving effect to all potentially dilutive common shares that were outstanding during the respective periods. Potentially dilutive common shares represent 40,000 common shares issuable upon conversion of 36,000 shares of convertible preferred stock, which were outstanding at August 31, 2013 and 2012. Such securities are excluded from the weighted average shares outstanding used to calculate diluted earnings per common share for the years ended August 31, 2013 and 2012 as their inclusion would be anti-dilutive since the conversion price was greater than the average market price of the Company’s common stock during these periods. | |
Foreign Currency Translation and Transactions | |
Assets and liabilities recorded in functional currencies other than the U.S. dollar (Canadian dollars for the Company’s Canadian subsidiary) are translated into U.S. dollars at the period-end rate of exchange. Revenue and expenses are translated at the weighted-average exchange rates for the years ended August 31, 2013 and 2012. The resulting translation adjustments are charged or credited directly to accumulated other comprehensive income or loss. The average exchange rates for the years ended August 31, 2013 and August 31, 2012 were $0.95 and $1.01, respectively. | |
Concentrations | |
Financial instruments that subject the Company to credit risk include cash balances in excess of federal depository insurance limits and accounts receivable. Cash accounts maintained by the Company at U.S. and Canadian financial institutions are insured by the Federal Deposit Insurance Corporation and Canadian Deposit Insurance Corporation, respectively. A significant portion of the Company’s cash was held by its Canadian subsidiary. The Company has not experienced any losses in such accounts. | |
Net sales to customers outside the United States and related trade accounts receivable were approximately 7% and 5% of total sales and trade accounts receivable, respectively, at August 31, 2013, and 7% and 4%, respectively, at August 31, 2012. No single customer accounted for more than 10% of total revenues for either of the years ended August 31, 2013 or 2012, respectively. | |
Total assets held outside the United States comprised 6% and 7% as of August 31, 2013 and 2012. | |
Estimated Fair Value of Financial Instruments and Certain Nonfinancial Assets and Liabilities | |
The Company’s financial instruments other than its marketable securities include cash and cash equivalents, trade accounts receivable, prepaid expenses, security deposits, trade accounts payable, line of credit, accrued expenses and long-term debt. Management believes that the fair value of these financial instruments approximate their carrying amounts based on current market indicators, such as prevailing interest rates. The Company’s marketable securities are measured at fair value on a recurring basis (see Note 14). | |
During the years ended August 31, 2013 and 2012, the Company did not have any nonfinancial assets or liabilities that were measured at estimated fair value on a recurring or nonrecurring basis. | |
Reclassifications | |
The Company reclassified certain prior year financial statement components to conform to the current year presentation. For the year ended August 31, 2013, the Company no longer reported the real estate held for leasing segment separately, as the results were immaterial to the overall financial statement presentation. | |
Real_Estate_Properties_Held_fo
Real Estate Properties Held for Leasing | 12 Months Ended | ||||||
Aug. 31, 2013 | |||||||
Real Estate [Abstract] | ' | ||||||
Real Estate Disclosure [Text Block] | ' | ||||||
Note 3. Real Estate Properties Held for Leasing | |||||||
Real estate properties held for leasing are as follows: | |||||||
31-Aug-13 | August 31, | ||||||
2012 | |||||||
Land | $ | 4,623,000 | 4,781,000 | ||||
Buildings & improvements | 3,862,000 | 4,212,000 | |||||
Equipment | 12,000 | 615,000 | |||||
Total | 8,497,000 | 9,608,000 | |||||
Accumulated depreciation | -1,214,000 | -1,694,000 | |||||
Book value | $ | 7,283,000 | 7,914,000 | ||||
The two properties are located in Sylmar, California and consist of two industrial properties with 65,000 total square feet. For the years ended August 31, 2013 and 2012, depreciation expense relating to these properties was $173,000 and $311,000, respectively. | |||||||
On January 2013, the Company sold its Deland Property for $1,100,000. The Company received $750,000 in cash and a two year note receivable at 7% interest payable in 24 installments on the remaining $350,000. The sale of this property resulted in a net gain of approximately $490,000. The total outstanding balance of the note receivable at August 31, 2013 of $267,000 has been included on the accompanying consolidated balance sheets as other current assets and other assets of $175,000 and $92,000, respectively. The associated land, buildings and improvements and related liabilities were classified as assets held for sale and liabilities of assets held for sale on the accompanying consolidated balance sheets as of August 31, 2012. | |||||||
In April 2013, the Company sold its Brooksville Property for $1,730,000. The sale of this property resulted in a net gain of approximately $240,000. The associated land, buildings and improvements and related liabilities were classified as assets held for sale and liabilities of assets held for sale on the accompanying consolidated balance sheets as of August 31, 2012. | |||||||
In October 2013, the Company sold its Orange Park Property for $1,138,500. As such, the associated land, buildings and improvements and related liabilities were reclassified as assets held for sale and liabilities of assets held for sale, respectively, on the accompanying consolidated balance sheets as of August 31, 2013 and August 31, 2012. | |||||||
Additionally, the gross profit from rental operations relating to the Deland, Brooksville and Orange Park properties were classified as selling, general and administrative expenses in the accompanying consolidated statements of operations, as such amounts were considered immaterial for separate presentation as discontinued operations. | |||||||
The following table shows the future minimum rentals due under non-cancelable operating leases in effect at August 31, 2013: | |||||||
Total | |||||||
Years ending August 31, | |||||||
2014 | $ | 639,000 | |||||
2015 | 367,000 | ||||||
2016 | 378,000 | ||||||
2017 | 389,000 | ||||||
2018 | 401,000 | ||||||
Thereafter | 101,000 | ||||||
$ | 2,275,000 | ||||||
Equipment_and_Leasehold_Improv
Equipment and Leasehold Improvements | 12 Months Ended | |||||||
Aug. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property, Plant and Equipment Disclosure [Text Block] | ' | |||||||
Note 4. Equipment and Leasehold Improvements | ||||||||
Equipment and leasehold improvements are summarized as follows: | ||||||||
31-Aug-13 | 31-Aug-12 | |||||||
Machinery and equipment | $ | 4,584,000 | $ | 4,293,000 | ||||
Furniture and equipment | 793,000 | 687,000 | ||||||
Vehicles | 138,000 | 121,000 | ||||||
Leasehold improvements | 1,463,000 | 1,164,000 | ||||||
6,978,000 | 6,265,000 | |||||||
Less accumulated depreciation and amortization | -5,582,000 | -5,159,000 | ||||||
$ | 1,396,000 | $ | 1,106,000 | |||||
For the years ended August 31, 2013 and 2012, depreciation expense was $443,000. | ||||||||
Line_of_Credit
Line of Credit | 12 Months Ended |
Aug. 31, 2013 | |
Line of Credit Facility [Abstract] | ' |
Debt Disclosure [Text Block] | ' |
Note 5. Line of Credit | |
The Company has a revolving credit agreement with Community Bank, which currently provides for borrowings of up to $10.0 million and bears interest at either the 30, 60 or 90 day London Inter-Bank Offered Rate (“LIBOR”) (the 90 day LIBOR at August 31, 2013 and 2012 was 0.26% and 0.43%, respectively) plus 1.75% and/or the bank’s reference rate (3.25% at August 31, 2013 and 2012). Borrowings are secured by substantially all assets of the Company and are guaranteed by the Company’s Chief Executive Officer, Chairman of the Board and majority shareholder Glen F. Ceiley. The agreement, as amended in March 2013, expires in March 2015. The amount outstanding under this line of credit as of August 31, 2013 and 2012 was $6,479,000 and $7,450,000, respectively. Availability under the line of credit was $3,521,000 and $2,550,000 at August 31, 2013 and 2012, respectively. | |
LongTerm_Debt
Long-Term Debt | 12 Months Ended | |||||||
Aug. 31, 2013 | ||||||||
Long-term Debt, Unclassified [Abstract] | ' | |||||||
Long-term Debt [Text Block] | ' | |||||||
Note 6. Long-Term Debt | ||||||||
Long-term debt is summarized as follows: | ||||||||
August 31, | August 31, | |||||||
2013 | 2012 | |||||||
Note payable to Community Bank, secured by the Company’s | 5,035,000 | 5,252,000 | ||||||
Sylmar property, monthly principal and interest payment totaling | ||||||||
$39,700, interest at 6.0%, due December 2017 | ||||||||
Line of credit payable to Community Bank | 6,479,000 | 7,450,000 | ||||||
Note payable to Community Bank, secured by all Company assets, | — | 298,000 | ||||||
monthly principal and interest payment totaling $43,083, interest at the | ||||||||
prime rate (3.25% at August 31, 2012), due March 2013 | ||||||||
Note payable to BMW Bank of North America, secured by automobile, | 55,000 | — | ||||||
monthly principal and interest payments totaling $901, interest at 0.9%, | ||||||||
due June 2018 | ||||||||
11,569,000 | 13,000,000 | |||||||
Less current portion | -172,000 | -463,000 | ||||||
$ | 11,397,000 | $ | 12,537,000 | |||||
The scheduled payments for the above loans are as follows at August 31, 2013: | ||||||||
Year Ending August 31, | ||||||||
2014 | $ | 172,000 | ||||||
2015 | 6,668,000 | |||||||
2016 | 201,000 | |||||||
2017 | 213,000 | |||||||
2018 | 4,315,000 | |||||||
$ | 11,569,000 | |||||||
Additionally, the Company had certain long–term debt relating to real estate held for sale, summarized as follows: | ||||||||
August 31, | August 31, | |||||||
2013 | 2012 | |||||||
Note payable to GE Capital Franchise Finance Corporation (“GE | $ | 362,000 | $ | 462,000 | ||||
Capital”), secured by real estate, monthly principal and interest | ||||||||
payments totaling $10,400, interest at thirty-day LIBOR rate +3.75% | ||||||||
(minimum interest rate of 7.3%), due December 2016 | ||||||||
Note payable to Zions Bank, secured by real estate, monthly principal and | $ | - | $ | 1,113,000 | ||||
interest payment totaling $8,402, interest at 6.7%, paid off in full in | ||||||||
January 2013. | ||||||||
The Company was in compliance with all related covenants at August 31, 2013. | ||||||||
On November 18, 2013, the Company renegotiated the note payable to Community Bank, secured by the Company’s Sylmar property. Effective October 1, 2013 the Company’s interest rate on that loan was lowered to 3.75% from 6%. The rate is fixed and will remain in force for the duration of the Company’s note which is due in March 2017. | ||||||||
Shareholders_Equity
Shareholders' Equity | 12 Months Ended | |||||||
Aug. 31, 2013 | ||||||||
Stockholders Equity Note [Abstract] | ' | |||||||
Stockholders Equity Note Disclosure [Text Block] | ' | |||||||
Note 7. Shareholders’ Equity | ||||||||
Earnings Per Common Share | ||||||||
The following is a reconciliation of the numerators and denominators used in the basic and diluted computations of earnings per common share: | ||||||||
For the Year Ended | For the Year Ended | |||||||
31-Aug-13 | 31-Aug-12 | |||||||
(In thousands, except per share information) | ||||||||
EPS– basic and diluted: | ||||||||
Net income | $ | 2,552 | $ | 2,420 | ||||
Less: undeclared cumulative preferred stock dividends | -76 | -76 | ||||||
Net income available to common shareholders for basic and diluted EPS computation | 2,476 | 2,344 | ||||||
Weighted average common shares outstanding for basic and diluted EPS computation | 4,861,590 | 4,861,590 | ||||||
Earnings per common share – basic and diluted | $ | 0.51 | $ | 0.48 | ||||
Preferred Stock | ||||||||
The Company's Board of Directors is authorized to establish the various rights and preferences for the Company's preferred stock, including voting, conversion, dividend and liquidation rights and preferences, at the time shares of preferred stock are issued. In September 2004, the Company sold 36,000 shares of its Series A Cumulative Convertible Non-Voting Preferred Stock (the “Preferred Stock”) to the Company’s CEO, with an 8.5% dividend rate at a price of $25 per share for a total cash purchase price of $900,000. Holders of the Preferred Stock have the right at any time to convert the Preferred Stock and accrued but unpaid dividends into shares of the Company’s common stock at the conversion price of $22.50 per share. In the event of a liquidation or dissolution of the Company, holders of the Preferred Stock are entitled to be paid out of the assets of the Company available for distribution to shareholders $25 per share plus all unpaid dividends before any payments are made to the holders of common stock. | ||||||||
Profit_Sharing_Plan
Profit Sharing Plan | 12 Months Ended |
Aug. 31, 2013 | |
Profit Sharing Plan [Abstract] | ' |
Profit Sharing Plan [Text Block] | ' |
Note 8. Profit Sharing Plan | |
The Company has a defined contribution 401(k) profit sharing plan for all eligible employees. Employees are eligible to contribute to the 401(k) plan after six months of employment. Under this plan, employees may contribute up to 15% of their compensation. The Company has the discretion to match 50% of the employee contributions up to 4% of employees’ compensation. The Company’s contributions are subject to a five-year vesting period beginning the second year of service. The Company’s contribution expense was approximately $184,000 and $161,000 for the years ended August 31, 2013 and 2012, respectively. | |
Discontinued_Operations
Discontinued Operations | 12 Months Ended |
Aug. 31, 2013 | |
Discontinued Operations and Disposal Groups [Abstract] | ' |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | ' |
Note 9. Discontinued Operations | |
When the Company was active in the restaurant business, the Company self-insured losses for workers’ compensation claims up to certain limits. The Company exited the restaurant business in 2005. The liability for workers’ compensation represents an estimate of the present value of the ultimate cost of uninsured losses which are unpaid as of the balance sheet dates. This liability is presented as liabilities of discontinued operations in the accompanying balance sheets. The estimate is continually reviewed and adjustments to the Company’s estimated claim liability, if any, are reflected in discontinued operations. On a periodic basis, the Company obtains an actuarial report which estimates its overall exposure based on historical claims and an evaluation of future claims. An actuarial evaluation was last obtained by the Company as of August 31, 2013. As of August 31, 2013 and 2012, the estimated claim liability was $2,556,000 and $2,713,000, respectively. | |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||
Aug. 31, 2013 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
Income Tax Disclosure [Text Block] | ' | |||||||
Note 10. Income Taxes | ||||||||
The following summarizes the Company’s provision for income taxes on income from continuing operations: | ||||||||
For the Year Ended | For the Year Ended | |||||||
31-Aug-13 | 31-Aug-12 | |||||||
Current: | ||||||||
Federal | $ | 467,000 | $ | 62,000 | ||||
State | 269,000 | 363,000 | ||||||
Foreign | -94,000 | — | ||||||
642,000 | 425,000 | |||||||
Deferred: | ||||||||
Federal | 1,113,000 | 1,237,000 | ||||||
State | -446,000 | 29,000 | ||||||
Foreign | — | -12,000 | ||||||
667,000 | 1,254,000 | |||||||
$ | 1,309,000 | $ | 1,679,000 | |||||
Income taxes for the years ended August 31, 2013 and 2012 differ from the amounts computed by applying the federal statutory corporate rate of 34% to the pre-tax income from continuing operations. The differences are reconciled as follows: | ||||||||
For the Year Ended | For the Year Ended | |||||||
31-Aug-13 | 31-Aug-12 | |||||||
Current: | ||||||||
Expected income tax at statutory rate | $ | 1,335,000 | $ | 1,393,000 | ||||
Increase (decrease) in taxes due to: | ||||||||
State tax, net of federal benefit | 197,000 | 194,000 | ||||||
Permanent differences | 24,000 | 22,000 | ||||||
Change in deferred tax asset valuation allowance | -2,392,000 | -261,000 | ||||||
Other, net | 2,145,000 | 331,000 | ||||||
Income tax expense | $ | 1,309,000 | $ | 1,679,000 | ||||
The components of deferred taxes at August 31, 2013 and 2012 are summarized below: | ||||||||
August 31, | August 31, | |||||||
2013 | 2012 | |||||||
Deferred tax assets: | ||||||||
Net operating loss | $ | 432,000 | $ | 1,584,000 | ||||
Capital losses | 1,344,000 | 3,351,000 | ||||||
Allowance for doubtful accounts | 49,000 | 89,000 | ||||||
Accrued expenses | 186,000 | 190,000 | ||||||
Accrued worker’s compensation | 987,000 | 1,048,000 | ||||||
Related party interest accrual | — | — | ||||||
Inventory reserve | 618,000 | 602,000 | ||||||
Unrealized losses (gain) on investment | -37,000 | -4,000 | ||||||
Excess of tax over book depreciation | 562,000 | 305,000 | ||||||
Other | 267,000 | 263,000 | ||||||
Total deferred tax assets | 4,368,000 | 7,428,000 | ||||||
Valuation allowance | -1,495,000 | -3,887,000 | ||||||
2,873,000 | 3,541,000 | |||||||
Deferred tax liabilities: | ||||||||
Deferred gains | -1,140,000 | -1,140,000 | ||||||
Total deferred tax liabilities | -1,140,000 | -1,140,000 | ||||||
Net deferred tax assets | $ | 1,733,000 | $ | 2,401,000 | ||||
At August 31, 2013, the Company has state net operating loss carryforwards (“NOLs”) of approximately $4.25 million, which will begin to expire in 2017. The Company also had federal and state capital loss carryforwards of approximately $3.48 million which are deductible only to the extent the Company has future capital gains. | ||||||||
In accordance with Sections 382 and 383 of the Internal Revenue Code, the utilization of Federal NOLs and other tax attributes may be subject to substantial limitations if certain ownership changes occur during a three-year testing period (as defined). Management has determined that the merger with Bisco does not limit the Company’s utilization of its NOLs or credit carryovers. | ||||||||
The Company records net deferred tax assets to the extent management believes these assets will more likely than not be realized. In making such determination, the Company considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income (if any), tax planning strategies and recent financial performance. | ||||||||
Management reviewed the positive and negative evidence available at August 31, 2013 and 2012 and determined that the capital loss carryforwards, unrealized losses on investments and certain of EACO’s state NOLs did not meet the more likely than not threshold required to be recognized. As such a valuation allowance was retained on these deferred tax assets. | ||||||||
The Company applies Accounting Standards Codification 740, Tax Provisions (“ASC 740”) for the accounting for uncertainty in income taxes recognized in a company’s financial statements. ASC 740 prescribes a recognition threshold and measurement attribute for financial statement recognition and measurement of a tax position taken or expected to be taken in the tax return. The Company did not recognize any additional liability for unrecognized tax benefit as a result of the implementation. The Company has no liability for unrecognized tax benefit related to tax positions for the years ended August 31, 2013 or 2012. | ||||||||
The Company will recognize interest and penalty related to unrecognized tax benefits and penalties as income tax expense. As of August 31, 2013, the Company has not recognized liabilities for penalty and interest as the Company does not have any liability for unrecognized tax benefits. | ||||||||
The Company is subject to taxation in the U.S., Canada and various states. The Company’s tax years for 2009, 2010, 2011 and 2012 are subject to examination by the taxing authorities. With few exceptions, the Company is no longer subject to U.S. federal, state, local or foreign examinations by taxing authorities for years before 2009 | ||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Aug. 31, 2013 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Commitments and Contingencies Disclosure [Text Block] | ' | ||||
Note 11. Commitments and Contingencies | |||||
Legal Matters | |||||
From time to time, we may be subject to legal proceedings and claims which arise in the normal course of our business. Any such matters and disputes could be costly and time consuming, subject us to damages or equitable remedies, and divert our management and key personnel from our business operations. We currently are not a party to any legal proceedings, the adverse outcome of which, in management’s opinion, individually or in the aggregate, would have a material adverse effect on our consolidated results of operations, financial position or cash flows | |||||
Lease Obligations | |||||
The Company leases its facilities under operating lease agreements (three of which are with its majority shareholder), which expire on various dates through September 2016 and require minimum rental payments ranging from $1,000 to $32,000 per month. Certain of the leases contain options for renewal under varying terms. | |||||
Minimum future rental payments under operating leases are as follows: | |||||
Years ending August 31: | |||||
2014 | $ | 1,430,000 | |||
2015 | 1,153,000 | ||||
2016 | 683,000 | ||||
2017 | 220,000 | ||||
2018 | 180,000 | ||||
Thereafter | 15,000 | ||||
$ | 3,681,000 | ||||
Rental expense for all operating leases for the years ended August 31, 2013 and 2012 was approximately $1,758,000 and $1,628,000, respectively. | |||||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Aug. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions Disclosure [Text Block] | ' |
Note 12. Related Party Transactions | |
The Company leases three buildings under operating lease agreements from its CEO and majority stockholder. During the years ended August 31, 2013 and 2012, the Company incurred approximately $592,000 and $548,000, respectively, of expense related to these leases. | |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 12 Months Ended | |||||||||||
Aug. 31, 2013 | ||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||
Fair Value Disclosures [Text Block] | ' | |||||||||||
Note 13. Fair Value of Financial Instruments | ||||||||||||
Management estimates the fair value of its assets or liabilities measured at fair value based on the three levels of the fair-value hierarchy are described as follows: | ||||||||||||
Level 1: Quoted prices (unadjusted) in active markets for identical assets and liabilities. For the Company, Level 1 inputs include price and marketable securities that are actively traded. | ||||||||||||
Level 2: Inputs other than Level 1 that are observable, either directly or indirectly. At this time, the Company holds no Level 2 financial instruments. | ||||||||||||
Level 3: Unobservable inputs | ||||||||||||
The following table sets forth by level, within the fair value hierarchy, certain assets at estimated fair value as of August 31, 2013 and 2012: | ||||||||||||
Quoted Prices in | Significant | |||||||||||
Active Markets for | Significant Other | Unobservable | ||||||||||
Identical Assets | Observable Inputs | Inputs | ||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | |||||||||
31-Aug-13 | ||||||||||||
Marketable securities | $ | 1,395,000 | - | - | $ | 1,395,000 | ||||||
31-Aug-12 | ||||||||||||
Marketable securities | $ | 197,000 | - | - | $ | 197,000 | ||||||
Subsequent_Events
Subsequent Events | 12 Months Ended |
Aug. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
Note 14. Subsequent Events | |
Management has evaluated events subsequent to August 31, 2013, through the date that these consolidated financial statements are being filed with the Securities and Exchange Commission, for transactions and other events which may require adjustment of and/or disclosure in such financial statements. | |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended |
Aug. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Cash and Cash Equivalents, Policy [Policy Text Block] | ' |
Cash and Cash Equivalents | |
The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. | |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | ' |
Restricted Cash | |
The State of Florida Division of Workers’ Compensation (the “Division”) requires self-insured companies to pledge collateral in favor of the Division in an amount sufficient to cover the projected outstanding liability. In compliance with this requirement, the Company pledged three irrevocable letters of credit totaling $2,855,000 as of August 31, 2012. In November 2012, the Division lowered the required collateral required by the Company to $2,713,000. These letters are secured by certificates of deposits, totaling $548,000 at August 31, 2013 and 2012, and the Sylmar Property. | |
Trade and Other Accounts Receivable, Policy [Policy Text Block] | ' |
Trade Accounts Receivable | |
Trade accounts receivable are carried at original invoice amount, less an estimate for an allowance for doubtful accounts. Management determines the allowance for doubtful accounts by identifying probable credit losses in the Company’s accounts receivable and reviewing historical data to estimate the collectability on items not yet specifically identified as problem accounts. Trade accounts receivable are written off when deemed uncollectible. Recoveries of trade accounts receivable previously written off are recorded when received. A trade account receivable is considered past due if any portion of the receivable balance is outstanding for more than 30 days. The Company does not charge interest on past due balances. The allowance for doubtful accounts was $183,000 and $273,000 at August 31, 2013 and 2012, respectively. | |
Inventory, Policy [Policy Text Block] | ' |
Inventories | |
Inventories consist primarily of electronic fasteners and components, and are stated at the lower of cost or estimated market value. Cost is determined using the average cost method. Inventories are presented net of a reserve for slow moving or obsolete items of $924,000 and $972,000 at August 31, 2013 and 2012, respectively. The reserve is based upon management’s review of inventories on-hand over their expected future utilization and length of time held by the Company. | |
Real Estate, Policy [Policy Text Block] | ' |
Real Estate Properties Held for Leasing | |
Real estate properties held for leasing are stated at cost, net of accumulated depreciation. Maintenance, repairs and betterments which do not enhance the value or increase the life of the assets are expensed as incurred. Depreciation is provided for financial reporting purposes principally on the straight-line method over the following estimated useful lives: buildings and improvements - 25 years; land improvements - 25 years; and equipment – 3 to 8 years. Leasehold improvements are amortized over the estimated useful life of the asset or remaining lease term, whichever is less. | |
The Company classifies real estate properties as assets held for sale when the following conditions are present: a) management, having the authority to approve the action, commits to a plan to sell the asset, b) the asset is available for immediate sale in its present condition, c) an active program to complete the plan of sale has been initiated, d) the sale of the asset is probable, e) the assets is being marketed for sale at a price that is reasonable in relation to its current fair value and f) it is unlikely that significant changes to the plan will be made or the plan will be withdrawn. | |
Property, Plant and Equipment, Policy [Policy Text Block] | ' |
Equipment and Leasehold Improvements | |
Equipment and leasehold improvements not used in conjunction with real estate properties are stated at cost net of accumulated amortization. Depreciation on equipment is calculated on the straight-line method over the estimated useful lives of the assets, ranging from five to seven years. Leasehold improvements are amortized over the estimated useful life of the asset or the remaining lease term, whichever is less. | |
Maintenance and repairs are charged to expense as incurred. Renewals and improvements of a major nature are capitalized. At the time of retirement or disposition of property and equipment, the cost and accumulated depreciation or amortization are removed from the accounts and any gains or losses are reflected in earnings. | |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | ' |
Long-Lived Assets | |
Long-lived assets (principally real estate, equipment and leasehold improvements) are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For purposes of the impairment review, real estate properties are reviewed on an asset-by-asset basis. Recoverability of real estate property assets is measured by a comparison of the carrying amount of each operating property and related assets to future net cash flows expected to be generated by such assets. For measuring recoverability of remaining assets, long-lived assets are grouped with other assets to the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. If assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds their estimated fair values. | |
Marketable Securities, Trading Securities, Policy [Policy Text Block] | ' |
Marketable Securities, Trading | |
The Company invests in marketable trading securities which include long and short positions in equity securities. Short positions represent securities sold, not yet purchased. Short sales result in obligations to purchase securities at a later date. | |
These securities are stated at fair value, which is determined using the quoted closing or latest bid prices at each reporting date. Realized gains and losses on investment transactions are determined by the average cost method and are recognized as incurred in the statements of operations. Net unrealized gains and losses are reported in the statements of operations and represent the change in the market value of investment holdings during the period. At August 31, 2013 and 2012, marketable securities consisted of equity securities (including stock options) of publicly-held domestic companies. | |
As of August 31, 2013 and 2012, the Company had no outstanding short sale positions. | |
The Company recognized unrealized gains on trading securities of $5,000 and $207,000 for the years ended August 31, 2013 and 2012, respectively. The Company recognized realized gains on trading securities of $10,000 and $287,000 for the years ended August 31, 2013 and 2012, respectively. | |
Revenue Recognition, Policy [Policy Text Block] | ' |
Revenue Recognition | |
Management generally recognizes revenue at the time of product shipment, as the Company’s shipping terms are FOB shipping point. Revenue is considered to be realized or realizable and earned when there is persuasive evidence of a sales arrangement in the form of an executed contract or purchase order, the product has been shipped, the sales price is fixed or determinable, and collectability is reasonably assured. | |
The Company leases its real estate properties to tenants under operating leases with terms exceeding one year. Some of these leases contain scheduled rent increases. We record rent revenue for leases which contain scheduled rent increases on a straight-line basis over the term of the lease. Revenues recognized in connection with its real estate held for leasing were immaterial to the overall financial statements. | |
Income Tax, Policy [Policy Text Block] | ' |
Income Taxes | |
Deferred taxes on income result from temporary differences between the reporting of income for financial statement and tax reporting purposes. A valuation allowance related to a deferred tax asset is recorded when it is more likely than not that some or all of the deferred tax asset will not be realized. | |
We provide tax contingencies, if any, for federal, state, local and international exposures relating to audit results, tax planning initiatives and compliance responsibilities. The development of these reserves requires judgments about tax issues, potential outcomes and timing. Although the outcome of these tax audits is uncertain, in management’s opinion adequate provisions for income taxes have been made for potential liabilities emanating from these reviews. If actual outcomes differ materially from these estimates, they could have a material impact on our results of operations. | |
Shipping and Handling Cost, Policy [Policy Text Block] | ' |
Freight and Shipping/Handling | |
Shipping and handling expenses are included in cost of goods sold, and were approximately $2,257,000 and $2,157,000 for the years ended August 31, 2013 and 2012, respectively. | |
Lease, Policy [Policy Text Block] | ' |
Leases | |
Certain of the Company’s leases for its sales offices and distribution centers provide for minimum annual payments that adjust over the life of the lease. The aggregate minimum annual payments are expensed on the straight-line basis over the minimum lease term. The Company recognizes a deferred rent liability for rent escalations when the amount of straight-line rent exceeds the lease payments, and reduces the deferred rent liability when the lease payments exceed the straight-line rent expense. | |
Earnings Per Share, Policy [Policy Text Block] | ' |
Earnings Per Common Share | |
Basic earnings per common share for the years ended August 31, 2013 and 2012 were computed based on the weighted average number of common shares outstanding. Diluted earnings per share for those periods have been computed based on the weighted average number of common shares outstanding, giving effect to all potentially dilutive common shares that were outstanding during the respective periods. Potentially dilutive common shares represent 40,000 common shares issuable upon conversion of 36,000 shares of convertible preferred stock, which were outstanding at August 31, 2013 and 2012. Such securities are excluded from the weighted average shares outstanding used to calculate diluted earnings per common share for the years ended August 31, 2013 and 2012 as their inclusion would be anti-dilutive since the conversion price was greater than the average market price of the Company’s common stock during these periods. | |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | ' |
Foreign Currency Translation and Transactions | |
Assets and liabilities recorded in functional currencies other than the U.S. dollar (Canadian dollars for the Company’s Canadian subsidiary) are translated into U.S. dollars at the period-end rate of exchange. Revenue and expenses are translated at the weighted-average exchange rates for the years ended August 31, 2013 and 2012. The resulting translation adjustments are charged or credited directly to accumulated other comprehensive income or loss. The average exchange rates for the years ended August 31, 2013 and August 31, 2012 were $0.95 and $1.01, respectively. | |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | ' |
Concentrations | |
Financial instruments that subject the Company to credit risk include cash balances in excess of federal depository insurance limits and accounts receivable. Cash accounts maintained by the Company at U.S. and Canadian financial institutions are insured by the Federal Deposit Insurance Corporation and Canadian Deposit Insurance Corporation, respectively. A significant portion of the Company’s cash was held by its Canadian subsidiary. The Company has not experienced any losses in such accounts. | |
Net sales to customers outside the United States and related trade accounts receivable were approximately 7% and 5% of total sales and trade accounts receivable, respectively, at August 31, 2013, and 7% and 4%, respectively, at August 31, 2012. No single customer accounted for more than 10% of total revenues for either of the years ended August 31, 2013 or 2012, respectively. | |
Total assets held outside the United States comprised 6% and 7% as of August 31, 2013 and 2012. | |
Fair Value Measurement, Policy [Policy Text Block] | ' |
Estimated Fair Value of Financial Instruments and Certain Nonfinancial Assets and Liabilities | |
The Company’s financial instruments other than its marketable securities include cash and cash equivalents, trade accounts receivable, prepaid expenses, security deposits, trade accounts payable, line of credit, accrued expenses and long-term debt. Management believes that the fair value of these financial instruments approximate their carrying amounts based on current market indicators, such as prevailing interest rates. The Company’s marketable securities are measured at fair value on a recurring basis (see Note 14). | |
During the years ended August 31, 2013 and 2012, the Company did not have any nonfinancial assets or liabilities that were measured at estimated fair value on a recurring or nonrecurring basis. | |
Reclassification, Policy [Policy Text Block] | ' |
Reclassifications | |
The Company reclassified certain prior year financial statement components to conform to the current year presentation. For the year ended August 31, 2013, the Company no longer reported the real estate held for leasing segment separately, as the results were immaterial to the overall financial statement presentation. | |
Real_Estate_Properties_Held_fo1
Real Estate Properties Held for Leasing (Tables) | 12 Months Ended | ||||||
Aug. 31, 2013 | |||||||
Real Estate [Abstract] | ' | ||||||
Schedule of Real Estate Properties [Table Text Block] | ' | ||||||
Real estate properties held for leasing are as follows: | |||||||
31-Aug-13 | August 31, | ||||||
2012 | |||||||
Land | $ | 4,623,000 | 4,781,000 | ||||
Buildings & improvements | 3,862,000 | 4,212,000 | |||||
Equipment | 12,000 | 615,000 | |||||
Total | 8,497,000 | 9,608,000 | |||||
Accumulated depreciation | -1,214,000 | -1,694,000 | |||||
Book value | $ | 7,283,000 | 7,914,000 | ||||
Schedule Of Future Minimum Rentals Due Under Non Cancelable Operating Leases [Table Text Block] | ' | ||||||
The following table shows the future minimum rentals due under non-cancelable operating leases in effect at August 31, 2013: | |||||||
Total | |||||||
Years ending August 31, | |||||||
2014 | $ | 639,000 | |||||
2015 | 367,000 | ||||||
2016 | 378,000 | ||||||
2017 | 389,000 | ||||||
2018 | 401,000 | ||||||
Thereafter | 101,000 | ||||||
$ | 2,275,000 | ||||||
Equipment_and_Leasehold_Improv1
Equipment and Leasehold Improvements (Tables) | 12 Months Ended | |||||||
Aug. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Schedule Of Equipment And Leasehold Improvements [Table Text Block] | ' | |||||||
Equipment and leasehold improvements are summarized as follows: | ||||||||
31-Aug-13 | 31-Aug-12 | |||||||
Machinery and equipment | $ | 4,584,000 | $ | 4,293,000 | ||||
Furniture and equipment | 793,000 | 687,000 | ||||||
Vehicles | 138,000 | 121,000 | ||||||
Leasehold improvements | 1,463,000 | 1,164,000 | ||||||
6,978,000 | 6,265,000 | |||||||
Less accumulated depreciation and amortization | -5,582,000 | -5,159,000 | ||||||
$ | 1,396,000 | $ | 1,106,000 | |||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | |||||||
Aug. 31, 2013 | ||||||||
Long-term Debt, Unclassified [Abstract] | ' | |||||||
Schedule of Debt [Table Text Block] | ' | |||||||
Long-term debt is summarized as follows: | ||||||||
August 31, | August 31, | |||||||
2013 | 2012 | |||||||
Note payable to Community Bank, secured by the Company’s | 5,035,000 | 5,252,000 | ||||||
Sylmar property, monthly principal and interest payment totaling | ||||||||
$39,700, interest at 6.0%, due December 2017 | ||||||||
Line of credit payable to Community Bank | 6,479,000 | 7,450,000 | ||||||
Note payable to Community Bank, secured by all Company assets, | — | 298,000 | ||||||
monthly principal and interest payment totaling $43,083, interest at the | ||||||||
prime rate (3.25% at August 31, 2012), due March 2013 | ||||||||
Note payable to BMW Bank of North America, secured by automobile, | 55,000 | — | ||||||
monthly principal and interest payments totaling $901, interest at 0.9%, | ||||||||
due June 2018 | ||||||||
11,569,000 | 13,000,000 | |||||||
Less current portion | -172,000 | -463,000 | ||||||
$ | 11,397,000 | $ | 12,537,000 | |||||
Schedule of Maturities of Long-term Debt [Table Text Block] | ' | |||||||
The scheduled payments for the above loans are as follows at August 31, 2013: | ||||||||
Year Ending August 31, | ||||||||
2014 | $ | 172,000 | ||||||
2015 | 6,668,000 | |||||||
2016 | 201,000 | |||||||
2017 | 213,000 | |||||||
2018 | 4,315,000 | |||||||
$ | 11,569,000 | |||||||
Schedule of Long-Term Debt Relating to Real Estate Held for Sale [Table Text Block] | ' | |||||||
Additionally, the Company had certain long–term debt relating to real estate held for sale, summarized as follows: | ||||||||
August 31, | August 31, | |||||||
2013 | 2012 | |||||||
Note payable to GE Capital Franchise Finance Corporation (“GE | $ | 362,000 | $ | 462,000 | ||||
Capital”), secured by real estate, monthly principal and interest | ||||||||
payments totaling $10,400, interest at thirty-day LIBOR rate +3.75% | ||||||||
(minimum interest rate of 7.3%), due December 2016 | ||||||||
Note payable to Zions Bank, secured by real estate, monthly principal and | $ | - | $ | 1,113,000 | ||||
interest payment totaling $8,402, interest at 6.7%, paid off in full in | ||||||||
January 2013. | ||||||||
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 12 Months Ended | |||||||
Aug. 31, 2013 | ||||||||
Stockholders Equity Note [Abstract] | ' | |||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | |||||||
The following is a reconciliation of the numerators and denominators used in the basic and diluted computations of earnings per common share: | ||||||||
For the Year Ended | For the Year Ended | |||||||
31-Aug-13 | 31-Aug-12 | |||||||
(In thousands, except per share information) | ||||||||
EPS– basic and diluted: | ||||||||
Net income | $ | 2,552 | $ | 2,420 | ||||
Less: undeclared cumulative preferred stock dividends | -76 | -76 | ||||||
Net income available to common shareholders for basic and diluted EPS computation | 2,476 | 2,344 | ||||||
Weighted average common shares outstanding for basic and diluted EPS computation | 4,861,590 | 4,861,590 | ||||||
Earnings per common share – basic and diluted | $ | 0.51 | $ | 0.48 | ||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||
Aug. 31, 2013 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
Schedule Of Provision For Income Tax [Table Text Block] | ' | |||||||
The following summarizes the Company’s provision for income taxes on income from continuing operations: | ||||||||
For the Year Ended | For the Year Ended | |||||||
31-Aug-13 | 31-Aug-12 | |||||||
Current: | ||||||||
Federal | $ | 467,000 | $ | 62,000 | ||||
State | 269,000 | 363,000 | ||||||
Foreign | -94,000 | — | ||||||
642,000 | 425,000 | |||||||
Deferred: | ||||||||
Federal | 1,113,000 | 1,237,000 | ||||||
State | -446,000 | 29,000 | ||||||
Foreign | — | -12,000 | ||||||
667,000 | 1,254,000 | |||||||
$ | 1,309,000 | $ | 1,679,000 | |||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | ' | |||||||
Income taxes for the years ended August 31, 2013 and 2012 differ from the amounts computed by applying the federal statutory corporate rate of 34% to the pre-tax income from continuing operations. The differences are reconciled as follows: | ||||||||
For the Year Ended | For the Year Ended | |||||||
31-Aug-13 | 31-Aug-12 | |||||||
Current: | ||||||||
Expected income tax at statutory rate | $ | 1,335,000 | $ | 1,393,000 | ||||
Increase (decrease) in taxes due to: | ||||||||
State tax, net of federal benefit | 197,000 | 194,000 | ||||||
Permanent differences | 24,000 | 22,000 | ||||||
Change in deferred tax asset valuation allowance | -2,392,000 | -261,000 | ||||||
Other, net | 2,145,000 | 331,000 | ||||||
Income tax expense | $ | 1,309,000 | $ | 1,679,000 | ||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | |||||||
The components of deferred taxes at August 31, 2013 and 2012 are summarized below: | ||||||||
August 31, | August 31, | |||||||
2013 | 2012 | |||||||
Deferred tax assets: | ||||||||
Net operating loss | $ | 432,000 | $ | 1,584,000 | ||||
Capital losses | 1,344,000 | 3,351,000 | ||||||
Allowance for doubtful accounts | 49,000 | 89,000 | ||||||
Accrued expenses | 186,000 | 190,000 | ||||||
Accrued worker’s compensation | 987,000 | 1,048,000 | ||||||
Related party interest accrual | — | — | ||||||
Inventory reserve | 618,000 | 602,000 | ||||||
Unrealized losses (gain) on investment | -37,000 | -4,000 | ||||||
Excess of tax over book depreciation | 562,000 | 305,000 | ||||||
Other | 267,000 | 263,000 | ||||||
Total deferred tax assets | 4,368,000 | 7,428,000 | ||||||
Valuation allowance | -1,495,000 | -3,887,000 | ||||||
2,873,000 | 3,541,000 | |||||||
Deferred tax liabilities: | ||||||||
Deferred gains | -1,140,000 | -1,140,000 | ||||||
Total deferred tax liabilities | -1,140,000 | -1,140,000 | ||||||
Net deferred tax assets | $ | 1,733,000 | $ | 2,401,000 | ||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Aug. 31, 2013 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | ' | ||||
Minimum future rental payments under operating leases are as follows: | |||||
Years ending August 31: | |||||
2014 | $ | 1,430,000 | |||
2015 | 1,153,000 | ||||
2016 | 683,000 | ||||
2017 | 220,000 | ||||
2018 | 180,000 | ||||
Thereafter | 15,000 | ||||
$ | 3,681,000 | ||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 12 Months Ended | |||||||||||
Aug. 31, 2013 | ||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||
Fair Value Inputs, Assets, Quantitative Information [Table Text Block] | ' | |||||||||||
The following table sets forth by level, within the fair value hierarchy, certain assets at estimated fair value as of August 31, 2013 and 2012: | ||||||||||||
Quoted Prices in | Significant | |||||||||||
Active Markets for | Significant Other | Unobservable | ||||||||||
Identical Assets | Observable Inputs | Inputs | ||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | |||||||||
31-Aug-13 | ||||||||||||
Marketable securities | $ | 1,395,000 | - | - | $ | 1,395,000 | ||||||
31-Aug-12 | ||||||||||||
Marketable securities | $ | 197,000 | - | - | $ | 197,000 | ||||||
Significant_Accounting_Policie2
Significant Accounting Policies (Details Textual) (USD $) | 12 Months Ended | ||
Aug. 31, 2013 | Aug. 31, 2012 | Nov. 30, 2012 | |
Letters of Credit Pledged as Collateral Towards Workers Compensation | ' | $2,855,000 | ' |
Decrease in Letter of Credit Required Collateral | ' | ' | 2,713,000 |
Pledged Financial Instruments, Not Separately Reported, Securities for Letter of Credit Facilities | 548,000 | 548,000 | ' |
Allowance for Doubtful Accounts Receivable | 183,000 | 273,000 | ' |
Inventory Valuation Reserves | 924,000 | 972,000 | ' |
Trading Securities, Unrealized Holding Gain | 5,000 | 207,000 | ' |
Trading Securities, Realized Gain | 10,000 | 287,000 | ' |
Shipping, Handling and Transportation Costs | $2,257,000 | $2,157,000 | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 40,000 | 40,000 | ' |
Convertible Preferred Stock, Shares Issued upon Conversion | 36,000 | 36,000 | ' |
Exchange Rate on Foreign Currency Translation and Transactions | $0.95 | $1.01 | ' |
Entity Wide Information On Geographic Areas Sales From External Customers Percentage Attributed To Foreign Countries | 7.00% | 7.00% | ' |
Entity Wide Information on Geographic Areas Trade Accounts Receivable from External Customers Percentage Attributed to Foreign Countries | 5.00% | 4.00% | ' |
Percentage of Revenue Per Entity, Maximum | 10.00% | 10.00% | ' |
Concentration Risk, Percentage | 6.00% | 7.00% | ' |
Building and Building Improvements [Member] | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '25 years | ' | ' |
Land Improvements [Member] | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '25 years | ' | ' |
Equipment [Member] | Minimum [Member] | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '3 years | ' | ' |
Equipment [Member] | Maximum [Member] | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '8 years | ' | ' |
Real_Estate_Properties_Held_fo2
Real Estate Properties Held for Leasing (Details) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
Book value | $1,396,000 | $1,106,000 |
Real Estate [Member] | ' | ' |
Land | 4,623,000 | 4,781,000 |
Buildings & improvements | 3,862,000 | 4,212,000 |
Equipment | 12,000 | 615,000 |
Total | 8,497,000 | 9,608,000 |
Accumulated depreciation | -1,214,000 | -1,694,000 |
Book value | $7,283,000 | $7,914,000 |
Real_Estate_Properties_Held_fo3
Real Estate Properties Held for Leasing (Details 1) (Real Estate [Member], USD $) | Aug. 31, 2013 |
Real Estate [Member] | ' |
Years ending August 31, | ' |
2014 | $639,000 |
2015 | 367,000 |
2016 | 378,000 |
2017 | 389,000 |
2018 | 401,000 |
Thereafter | 101,000 |
Operating Leases, Future Minimum Payments Due | $2,275,000 |
Real_Estate_Properties_Held_fo4
Real Estate Properties Held for Leasing (Details Textual) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||||
Aug. 31, 2013 | Aug. 31, 2012 | Apr. 30, 2013 | Jan. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | |
Real Estate [Member] | Real Estate [Member] | Brooksville Property [Member] | Deland Property [Member] | Deland Property [Member] | Orange Park Florida [Member] | Sylmar Property [Member] | |
October 2013 [Member] | Number | ||||||
sqft | |||||||
Number of Real Estate Properties | ' | ' | ' | ' | ' | ' | 2 |
Area of Real Estate Property | ' | ' | ' | ' | ' | ' | 65,000 |
Depreciation | $173,000 | $311,000 | ' | ' | ' | ' | ' |
Sales of Real Estate | ' | ' | 1,730,000 | 1,100,000 | ' | 1,138,500 | ' |
Proceeds from Sale of Real Estate | ' | ' | ' | 750,000 | ' | ' | ' |
Real Estate Owned, Nature and Origin | ' | ' | ' | ' | 'The Company received $750,000 in cash and a two year note receivable at 7% interest payable in 24 installments on the remaining $350,000. | ' | ' |
Gain (Loss) on Sale of Properties | ' | ' | 240,000 | 490,000 | ' | ' | ' |
Financing Receivable, Net | ' | ' | ' | ' | 267,000 | ' | ' |
Other Assets, Current | ' | ' | ' | ' | 175,000 | ' | ' |
Other Assets | ' | ' | ' | ' | $92,000 | ' | ' |
Equipment_and_Leasehold_Improv2
Equipment and Leasehold Improvements (Details) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
Book value | $1,396,000 | $1,106,000 |
Equipment and Lease Hold Improvements [Member] | ' | ' |
Machinery and equipment | 4,584,000 | 4,293,000 |
Furniture and equipment | 793,000 | 687,000 |
Vehicles | 138,000 | 121,000 |
Leasehold improvements | 1,463,000 | 1,164,000 |
Property, Plant and Equipment, Gross | 6,978,000 | 6,265,000 |
Less accumulated depreciation and amortization | -5,582,000 | -5,159,000 |
Book value | $1,396,000 | $1,106,000 |
Equipment_and_Leasehold_Improv3
Equipment and Leasehold Improvements (Details Textual) (Equipment and Lease Hold Improvements [Member], USD $) | 12 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | |
Equipment and Lease Hold Improvements [Member] | ' | ' |
Depreciation | $443,000 | $443,000 |
Line_of_Credit_Details_Textual
Line of Credit (Details Textual) (Revolving Credit Facility [Member], USD $) | 12 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | |
Revolving Credit Facility [Member] | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | $10,000,000 | ' |
Line of Credit Facility, Interest Rate Description | 'bears interest at either the 30, 60 or 90 day London Inter-Bank Offered Rate (“LIBOR”) (the 90 day LIBOR at August 31, 2013 and 2012 was 0.26% and 0.43%, respectively) plus 1.75% and/or the bank’s reference rate (3.25% at August 31, 2013 and 2012). | ' |
Line of Credit Facility, Amount Outstanding | 6,479,000 | 7,450,000 |
Line of Credit Facility, Remaining Borrowing Capacity | $3,521,000 | $2,550,000 |
LongTerm_Debt_Details
Long-Term Debt (Details) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
Long-term Debt | $11,569,000 | $13,000,000 |
Less current portion | -172,000 | -463,000 |
Notes Payable, Noncurrent | 11,397,000 | 12,537,000 |
Note payable to Community Bank, secured by real estate [Member] | ' | ' |
Long-term Debt | 5,035,000 | 5,252,000 |
Line of credit payable to Community Bank [Member] | Revolving Credit Facility [Member] | ' | ' |
Long-term Debt | 6,479,000 | 7,450,000 |
Note payable to Community Bank, secured by all Company assets [Member] | ' | ' |
Long-term Debt | 0 | 298,000 |
Note payable to BMW Bank [Member] | ' | ' |
Long-term Debt | $55,000 | $0 |
LongTerm_Debt_Details_1
Long-Term Debt (Details 1) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
2014 | $172,000 | ' |
2015 | 6,668,000 | ' |
2016 | 201,000 | ' |
2017 | 213,000 | ' |
2018 | 4,315,000 | ' |
Long-term Debt | $11,569,000 | $13,000,000 |
LongTerm_Debt_Details_2
Long-Term Debt (Details 2) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
Long-term Debt | $11,569,000 | $13,000,000 |
Note payable to GE Capital Franchise Finance Corporation [Member] | ' | ' |
Long-term Debt | 362,000 | 462,000 |
Note payable to Zion's Bank [Member] | ' | ' |
Long-term Debt | $0 | $1,113,000 |
LongTerm_Debt_Details_Textual
Long-Term Debt (Details Textual) (USD $) | 12 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | |
Note payable to Community Bank, secured by the Companybs Sylmar property [Member] | ' | ' |
Debt Instrument, Periodic Payment | $39,700 | ' |
Debt Instrument, Interest Rate During Period | 6.00% | ' |
Debt Instrument, Maturity Date | 31-Dec-17 | ' |
Note payable to Community Bank, secured by all Company assets [Member] | ' | ' |
Debt Instrument, Periodic Payment | 43,083 | ' |
Line of Credit Facility, Interest Rate Description | 'prime rate | ' |
Debt Instrument, Interest Rate During Period | ' | 3.25% |
Debt Instrument, Maturity Date | 31-Mar-13 | ' |
Note payable to BMW Bank [Member] | ' | ' |
Debt Instrument, Periodic Payment | 901 | ' |
Debt Instrument, Interest Rate During Period | 0.90% | ' |
Debt Instrument, Maturity Date | 30-Jun-18 | ' |
Note payable to GE Capital Franchise Finance Corporation [Member] | ' | ' |
Debt Instrument, Periodic Payment | 10,400 | ' |
Line of Credit Facility, Interest Rate Description | 'thirty-day LIBOR rate +3.75% (minimum interest rate of 7.3%) | ' |
Debt Instrument, Maturity Date | 31-Dec-16 | ' |
Note payable to Zion's Bank [Member] | ' | ' |
Debt Instrument, Periodic Payment | $8,402 | ' |
Debt Instrument, Interest Rate During Period | 6.70% | ' |
Debt Instrument, Maturity Date | 31-Jan-13 | ' |
October 1, 2013 [Member] | Note payable to Community Bank, secured by the Companybs Sylmar property [Member] | ' | ' |
Debt Instrument, Maturity Date | 31-Mar-17 | ' |
Minimum [Member] | October 1, 2013 [Member] | Note payable to Community Bank, secured by the Companybs Sylmar property [Member] | ' | ' |
Debt Instrument, Interest Rate During Period | 3.75% | ' |
Maximum [Member] | October 1, 2013 [Member] | Note payable to Community Bank, secured by the Companybs Sylmar property [Member] | ' | ' |
Debt Instrument, Interest Rate During Period | 6.00% | ' |
Shareholders_Equity_Details
Shareholders' Equity (Details) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 |
EPS- basic and diluted: | ' | ' |
Net income | $2,552 | $2,420 |
Less: undeclared cumulative preferred stock dividends | -76 | -76 |
Net income available to common shareholders for basic and diluted EPS computation | $2,476 | $2,344 |
Weighted average common shares outstanding for basic and diluted EPS computation (in shares) | 4,861,590 | 4,861,590 |
Earnings per common share - basic and diluted (in dollars per share) | $0.51 | $0.48 |
Shareholders_Equity_Details_Te
Shareholders' Equity (Details Textual) (USD $) | 12 Months Ended |
Aug. 31, 2013 | |
Sale Of Convertible Preferred Stock | $36,000 |
Preferred Stock, Dividend Rate, Percentage | 8.50% |
Preferred Stock, No Par Value | $25 |
Dividends, Preferred Stock, Cash | $900,000 |
Common Stock, Conversion Basis | 'Holders of the Preferred Stock have the right at any time to convert the Preferred Stock and accrued but unpaid dividends into shares of the Companys common stock at the conversion price of $22.50 per share. |
Final Settlement To Holders Of Preferred Stock During Dissolution | '$25 per share plus all unpaid dividends |
Profit_Sharing_Plan_Details_Te
Profit Sharing Plan (Details Textual) (USD $) | 12 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees Gross Pay | 50.00% | ' |
Defined Contribution Plan, Administrative Expenses | $184,000 | $161,000 |
Deferred Profit Sharing [Member] | ' | ' |
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 15.00% | ' |
Employee Contributions [Member] | ' | ' |
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 4.00% | ' |
Discontinued_Operations_Detail
Discontinued Operations (Details Textual) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
Liabilities of Disposal Group, Including Discontinued Operation | $2,556,000 | $2,713,000 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | |
Current: | ' | ' |
Federal | $467,000 | $62,000 |
State | 269,000 | 363,000 |
Foreign | -94,000 | 0 |
Current Income Tax Expense (Benefit) | 642,000 | 425,000 |
Deferred: | ' | ' |
Federal | 1,113,000 | 1,237,000 |
State | -446,000 | 29,000 |
Foreign | 0 | -12,000 |
Deferred Income Tax Expense (Benefit) | 667,000 | 1,254,000 |
Income Tax Expense (Benefit), Continuing Operations | $1,309,000 | $1,679,000 |
Income_Taxes_Details_1
Income Taxes (Details 1) (USD $) | 12 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | |
Current: | ' | ' |
Expected income tax at statutory rate | $1,335,000 | $1,393,000 |
Increase (decrease) in taxes due to: | ' | ' |
State tax, net of federal benefit | 197,000 | 194,000 |
Permanent differences | 24,000 | 22,000 |
Change in deferred tax asset valuation allowance | -2,392,000 | -261,000 |
Other, net | 2,145,000 | 331,000 |
Income tax expense | $1,309,000 | $1,679,000 |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
Deferred tax assets: | ' | ' |
Net operating loss | $432,000 | $1,584,000 |
Capital losses | 1,344,000 | 3,351,000 |
Allowance for doubtful accounts | 49,000 | 89,000 |
Accrued expenses | 186,000 | 190,000 |
Accrued workerbs compensation | 987,000 | 1,048,000 |
Related party interest accrual | 0 | 0 |
Inventory reserve | 618,000 | 602,000 |
Unrealized losses (gain) on investment | -37,000 | -4,000 |
Excess of tax over book depreciation | 562,000 | 305,000 |
Other | 267,000 | 263,000 |
Total deferred tax assets | 4,368,000 | 7,428,000 |
Valuation allowance | -1,495,000 | -3,887,000 |
Deferred Tax Assets, Net of Valuation Allowance | 2,873,000 | 3,541,000 |
Deferred tax liabilities: | ' | ' |
Deferred gains | -1,140,000 | -1,140,000 |
Total deferred tax liabilities | -1,140,000 | -1,140,000 |
Net deferred tax assets | $1,733,000 | $2,401,000 |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | 34.00% |
Operating Loss Carryforwards | $4.25 | ' |
Operating Loss Carry Forwards Expiration Period | '2017 | ' |
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | $3.48 | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (Operating Lease Agreements [Member], USD $) | Aug. 31, 2013 |
Operating Lease Agreements [Member] | ' |
Years ending August 31: | ' |
2014 | $1,430,000 |
2015 | 1,153,000 |
2016 | 683,000 |
2017 | 220,000 |
2018 | 180,000 |
Thereafter | 15,000 |
Operating Leases, Future Minimum Payments Due | $3,681,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details Textual) (USD $) | 12 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | |
Lease Expiration Date | 30-Sep-16 | ' |
Operating Leases, Rent Expense | $1,758,000 | $1,628,000 |
Minimum [Member] | ' | ' |
Monthly Operating Lease Rental Payment | 1,000 | ' |
Maximum [Member] | ' | ' |
Monthly Operating Lease Rental Payment | $32,000 | ' |
Related_Party_Transactions_Det
Related Party Transactions (Details Textual) (USD $) | 12 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | |
Operating Leases, Rent Expense | $1,758,000 | $1,628,000 |
Related Party [Member] | ' | ' |
Operating Leases, Rent Expense | $592,000 | $548,000 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
Marketable securities | $1,395,000 | $197,000 |
Fair Value, Inputs, Level 1 [Member] | ' | ' |
Marketable securities | 1,395,000 | 197,000 |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
Marketable securities | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ' | ' |
Marketable securities | $0 | $0 |