Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Apr. 30, 2015 | Jun. 12, 2015 | |
Document Information [Line Items] | ||
Entity Registrant Name | LAKELAND INDUSTRIES INC | |
Entity Central Index Key | 798081 | |
Current Fiscal Year End Date | -30 | |
Entity Filer Category | Smaller Reporting Company | |
Trading Symbol | LAKE | |
Entity Common Stock, Shares Outstanding | 7,081,076 | |
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 30-Apr-15 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2016 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Apr. 30, 2015 | Apr. 30, 2014 | |
Net sales from continuing operations | $24,819 | $21,758 | [1] |
Cost of goods sold from continuing operations | 15,540 | 15,253 | [1] |
Gross profit from continuing operations | 9,279 | 6,505 | [1] |
Operating expenses from continuing operations | 6,059 | 5,647 | [1] |
Operating profit from continuing operations | 3,220 | 858 | [1] |
Other income (loss), net from continuing operations | 15 | 5 | [1] |
Interest expense from continuing operations | 183 | 486 | [1] |
Income before taxes from continuing operations | 3,052 | 377 | [1] |
Income tax expense from continuing operations | 892 | 23 | [1] |
Net income from continuing operations | 2,160 | 354 | [1] |
Net loss from discontinued operations | -931 | -354 | [1] |
Net income (loss) | $1,229 | $0 | [1] |
Net income (loss) per common share - Basic: | |||
Income from continuing operations (in dollars per share) | $0.31 | $0.06 | [1] |
Loss from discontinued operations (in dollars per share) | ($0.14) | ($0.06) | [1] |
Diluted earnings per share (in dollars per share) | $0.17 | $0 | [1] |
Net income (loss) per common share - Diluted: | |||
Income from continuing operations (in dollars per share) | $0.30 | $0.06 | [1] |
Loss from discontinued operations (in dollars per share) | ($0.13) | ($0.06) | [1] |
Diluted earnings per share (in dollars per share) | $0.17 | $0 | [1] |
Weighted average common shares outstanding: | |||
Basic (in shares) | 7,062,144 | 5,923,224 | [1] |
Diluted (in shares) | 7,235,385 | 5,923,224 | [1] |
[1] | Restated for discontinued operations. |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Apr. 30, 2015 | Apr. 30, 2014 | |
Net income (loss) | $1,229 | $0 | [1] |
Other comprehensive income (loss): | |||
Cash flow hedge | 75 | -81 | [1] |
Other comprehensive income | 344 | 180 | [1] |
Comprehensive income | 1,573 | 180 | [1] |
Lakeland Brazil, S.A. [Member] | |||
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | 193 | 368 | |
Canada [Member] | |||
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | 52 | -18 | |
United Kingdom [Member] | |||
Other comprehensive income (loss): | |||
Cash flow hedge | 40 | 0 | [1] |
Foreign currency translation adjustments | -106 | -3 | |
China [Member] | |||
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | 49 | 39 | |
Russia/Kazakhstan [Member] | |||
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | $41 | ($125) | |
[1] | Restated for discontinued operations. |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Apr. 30, 2015 | Jan. 31, 2015 | ||
In Thousands, unless otherwise specified | ||||
Current assets | ||||
Cash and cash equivalents | $8,721 | $6,709 | [1] | |
Accounts receivable, net of allowance for doubtful accounts of $538 and $484 at April 30, 2015 and January 31, 2015, respectively | 14,769 | 13,277 | [1] | |
Inventories, net of reserves of approximately $2,460 and $2,454 at April 30, 2015 and January 31, 2015, respectively | 39,495 | 37,092 | [1] | |
Deferred income taxes | 1,015 | 1,144 | [1] | |
Assets of discontinued operations in Brazil | 6,447 | 6,335 | [1] | |
Prepaid VAT tax | 1,216 | 1,717 | [1] | |
Other current assets | 3,184 | 2,361 | [1] | |
Total current assets | 74,847 | 68,635 | [1] | |
Property and equipment, net | 10,311 | 10,144 | [1] | |
Deferred income tax, noncurrent | 13,101 | 13,101 | [1] | |
Prepaid VAT and other taxes | 173 | 173 | [1] | |
Security deposits | 86 | 113 | [1] | |
Intangibles, prepaid bank fees and other assets, net | 141 | 171 | [1] | |
Goodwill | 871 | 871 | [1] | |
Total assets | 99,530 | [2] | 93,208 | [1],[2] |
Current liabilities | ||||
Accounts payable | 8,512 | 7,763 | [1] | |
Accrued compensation and benefits | 854 | 1,120 | [1] | |
Other accrued expenses | 1,798 | 1,462 | [1] | |
Liabilities of discontinued operations in Brazil | 6,692 | 6,574 | [1] | |
Current maturity of long-term debt | 50 | 50 | [1] | |
Current maturity of accrued arbitration award | 1,000 | 1,000 | [1] | |
Short-term borrowing | 3,446 | 2,611 | [1] | |
Borrowings under revolving credit facility | 8,666 | 5,642 | [1] | |
Total current liabilities | 31,018 | 26,222 | [1] | |
Accrued arbitration award, less current portion | 2,637 | 2,870 | [1] | |
Long-term portion of Canada loan | 830 | 800 | [1] | |
VAT taxes payable long term | 130 | 60 | [1] | |
Total liabilities | 34,615 | 29,952 | [1] | |
Stockholders' equity | ||||
Preferred stock, $.01 par; authorized 1,500,000 shares (none issued) | 0 | 0 | [1] | |
Common stock, $.01 par; authorized 10,000,000 shares, issued 7,428,220 and 7,414,037; outstanding 7,071,779 and 7,057,596 at April 30, 2015 and January 31, 2015 respectively | 74 | 74 | [1] | |
Treasury stock, at cost; 356,441 shares at April 30, 2015 and January 31, 2015 | -3,352 | -3,352 | [1] | |
Additional paid-in capital | 64,680 | 64,594 | [1] | |
Retained earnings | 5,883 | 4,654 | [1] | |
Accumulated other comprehensive loss | -2,370 | -2,714 | [1] | |
Total stockholders' equity | 64,915 | 63,256 | [1] | |
Total liabilities and stockholders' equity | $99,530 | $93,208 | [1] | |
[1] | Restated for discontinued operations. | |||
[2] | Negative assets reflect intersegment accounts eliminated in consolidation |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS [Parenthetical] (USD $) | Apr. 30, 2015 | Jan. 31, 2015 |
In Thousands, except Share data, unless otherwise specified | ||
Allowance for doubtful accounts (in dollars) | $538 | $484 |
Inventories, net of reserves | $2,460 | $2,454 |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized | 1,500,000 | 1,500,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 7,428,220 | 7,414,037 |
Common stock, shares outstanding | 7,071,779 | 7,057,596 |
Treasury stock, shares | 356,441 | 356,441 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | |
In Thousands, except Share data, unless otherwise specified | |||||||
Balance at Jan. 31, 2015 | $63,256 | [1] | $74 | ($3,352) | $64,594 | $4,654 | ($2,714) |
Balance (in shares) at Jan. 31, 2015 | 7,414,037 | -356,441 | |||||
Net income | 1,229 | 0 | 0 | 0 | 1,229 | 0 | |
Other comprehensive income | 344 | 0 | 0 | 0 | 0 | 344 | |
Stock-based compensation: | |||||||
Restricted stock issued | 0 | 0 | 0 | 0 | 0 | 0 | |
Restricted stock issued (in shares) | 14,183 | 0 | |||||
Restricted Stock Plan | 127 | 0 | 0 | 127 | 0 | 0 | |
Return of shares in lieu of payroll tax withholding | -41 | 0 | 0 | -41 | 0 | 0 | |
Return of shares in lieu of payroll tax withholding (in shares) | 0 | 0 | |||||
Balance at Apr. 30, 2015 | $64,915 | $74 | ($3,352) | $64,680 | $5,883 | ($2,370) | |
Balance (in shares) at Apr. 30, 2015 | 7,428,220 | -356,441 | |||||
[1] | Restated for discontinued operations. |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Apr. 30, 2015 | Apr. 30, 2014 | ||
Cash flows from operating activities: | ||||
Net income (loss) | $1,229 | $0 | [1] | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | ||||
Provision for inventory obsolescence | 7 | -94 | [1] | |
Provision for doubtful accounts | 90 | 14 | [1] | |
Deferred income taxes current | 128 | -128 | [1] | |
Deferred taxes long-term | 70 | -1 | [1] | |
Depreciation and amortization | 246 | 293 | [1] | |
Interest expense resulting from amortization of warrant OID and reclassification of PIK interest | 0 | 481 | [1] | |
Stock based and restricted stock compensation | 127 | 24 | [1] | |
Interest expense resulting from Arbitration Award | 16 | 58 | [1] | |
(Increase) decrease in operating assets | ||||
Accounts receivable | -1,630 | -785 | [1] | |
Inventories | -2,471 | 518 | [1] | |
Prepaid VAT taxes and other current assets | 501 | -152 | [1] | |
Other assets-mainly prepaid fees from financing transaction | -714 | -42 | [1] | |
Assets of discontinued operations | -672 | -598 | [1] | |
Increase (decrease) in operating liabilities | ||||
Accounts payable | 828 | 1,302 | [1] | |
Accrued expenses and other liabilities | 77 | 573 | [1] | |
Arbitration award in Brazil | -250 | -250 | [1] | |
Liabilities of discontinued operations | 871 | 317 | [1] | |
Net cash (used in) provided by operating activities | -1,547 | 1,530 | [1] | |
Cash flows from investing activities: | ||||
Purchases of property and equipment | -307 | -88 | [1] | |
Net cash used in investing activities | -307 | -88 | [1] | |
Cash flows from financing activities: | ||||
Net borrowings under credit agreement (revolver) | 3,024 | 1,083 | [1] | |
Canada loan repayments | -6 | -10 | [1] | |
Borrowings in Argentina | 269 | 0 | [1] | |
UK borrowings, net | 569 | -30 | [1] | |
China borrowings, net | 7 | -14 | [1] | |
Shares returned to pay employee taxes under restricted stock program | -41 | 0 | [1] | |
Net cash provided by financing activities | 3,822 | 1,027 | [1] | |
Effect of exchange rate changes on cash | 44 | -14 | [1] | |
Net increase in cash and cash equivalents | 2,012 | 2,455 | [1] | |
Cash and cash equivalents at beginning of year | 6,709 | [1] | 4,555 | [1] |
Cash and cash equivalents at end of year | 8,721 | 7,010 | [1] | |
Cash paid for interest | 184 | 433 | ||
Cash paid for taxes | $604 | $307 | ||
[1] | Restated for discontinued operations. |
Business
Business | 3 Months Ended |
Apr. 30, 2015 | |
Organization, Consolidation and Presentation Of Financial Statements [Abstract] | |
Nature of Operations [Text Block] | 1. Business |
Lakeland Industries, Inc. and Subsidiaries (“Lakeland” or the “Company”), a Delaware corporation organized in April 1986, manufactures and sells a comprehensive line of safety garments and accessories for the industrial protective clothing market. The principal market for the Company’s products is in the United States. No customer accounted for more than 10% of net sales during the three month periods ending April 30, 2015 and 2014. In April 2015, the Company decided to exit operations in Brazil. See Note 17 for further description. | |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Apr. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies [Text Block] | 2. Basis of Presentation |
The condensed consolidated financial statements included herein have been prepared by us, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission, and reflect all adjustments (consisting of only normal and recurring adjustments) which are, in the opinion of management, necessary to present fairly the condensed consolidated financial information required herein. Certain information and note 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 pursuant to such rules and regulations. While we believe that the disclosures are adequate to make the information presented not misleading, it is suggested that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission for the fiscal year ended January 31, 2015. | |
Our consolidated financial statements have been prepared using the accrual method of accounting in accordance with US GAAP. | |
The results of operations for the three month period ended April 30, 2015 are not necessarily indicative of the results to be expected for the full year. | |
In this Form 10-Q, (a) “FY” means fiscal year; thus, for example, FY16 refers to the fiscal year ending January 31, 2016, (b) “Q” refers to quarter; thus, for example, Q1 FY16 refers to the first quarter of the fiscal year ending January 31, 2016, (c) “Balance Sheet” refers to the condensed consolidated balance sheet and (d) “Statement of Operations" refers to the condensed consolidated statement of operations. | |
Principles_of_Consolidation
Principles of Consolidation | 3 Months Ended |
Apr. 30, 2015 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | 3. Principles of Consolidation |
The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. | |
Inventories
Inventories | 3 Months Ended | |||||||
Apr. 30, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventory Disclosure [Text Block] | 4. Inventories | |||||||
Inventories of continuing operations consist of the following (in $000s): | ||||||||
April 30, 2015 | January 31, 2015 | |||||||
Raw materials | $ | 16,468 | $ | 14,379 | ||||
Work-in-process | 1,882 | 1,670 | ||||||
Finished goods | 21,145 | 21,043 | ||||||
$ | 39,495 | $ | 37,092 | |||||
Inventories include freight-in, materials, labor and overhead costs and are stated at the lower of cost (on a first-in, first-out basis) or market. Provision is made for slow-moving, obsolete or unusable inventory. | ||||||||
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | |||||||
Apr. 30, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Earnings Per Share [Text Block] | 5. Earnings Per Share | |||||||
Basic earnings per share are based on the weighted average number of common shares outstanding without consideration of common stock equivalents. Diluted earnings per share are based on the weighted average number of common shares and common stock equivalents. The diluted earnings per share calculation takes into account the shares that may be issued upon exercise of stock options, reduced by shares that may be repurchased with the funds received from the exercise, based on the average price during the period. | ||||||||
The following table sets forth the computation of basic and diluted earnings per share for “income from continuing operations” at April 30, 2015 and 2014, as follows: | ||||||||
Three Months Ended | ||||||||
April 30, | ||||||||
(in $000s) | ||||||||
2015 | 2014 | |||||||
Numerator | ||||||||
Net income from continuing operations | $ | 2,160 | $ | 354 | ||||
Net loss from discontinued operations | -931 | -354 | ||||||
Net income (loss) | $ | 1,229 | $ | 0 | ||||
Denominator | ||||||||
Denominator for basic earnings per share | 7,062,144 | 5,923,224 | ||||||
(weighted-average shares which reflect 356,441 shares in the treasury as a result of the stock repurchase program that ended in 2011, and 0 and 566,015 weighted average common equivalents relating to the warrant issued with the FY14 subordinated debt financing) | ||||||||
Effect of dilutive securities from restricted stock plan and from dilutive effect of stock options | 173,241 | —— | ||||||
Denominator for diluted earnings per share (adjusted weighted average shares) | 7,235,385 | 5,923,224 | ||||||
Basic earnings per share from continuing operations | $ | 0.31 | $ | 0.06 | ||||
Basic earnings per share from discontinued operations | $ | -0.14 | $ | -0.06 | ||||
Basic earnings per share | $ | 0.17 | $ | 0 | ||||
Diluted earnings per share from continuing operations | $ | 0.3 | $ | 0.06 | ||||
Diluted earnings per share from discontinued operations | $ | -0.13 | $ | -0.06 | ||||
Diluted earnings per share | $ | 0.17 | $ | 0 | ||||
LongTerm_Debt_and_Subsequent_E
Long-Term Debt and Subsequent Event | 3 Months Ended | ||
Apr. 30, 2015 | |||
Debt Disclosure [Abstract] | |||
Long-term Debt [Text Block] | 6. Long-Term Debt and Subsequent Event | ||
Revolving Credit Facility | |||
On June 28, 2013, the Company and its wholly-owned subsidiary, Lakeland Protective Wear Inc. (collectively with the Company, the “Borrowers”), entered into a Loan and Security Agreement (the “Senior Loan Agreement”) with AloStar Business Credit, a division of AloStar Bank of Commerce (the “Senior Lender”). The Senior Loan Agreement provides the Borrowers with a three-year $15 million revolving line of credit, at a variable interest rate based on LIBOR, with a first priority lien on substantially all of the United States and Canada assets of the Company, except for the Canadian warehouse. | |||
On March 31, 2015, the Borrowers entered into a First Amendment to Loan and Security Agreement with the Senior Lender (the “Amendment”) relating to their senior revolving credit facility. Pursuant to the Amendment, the parties agreed to (i) reduce the rate of interest on the revolving loans by 200 basis points and correspondingly lower the minimum interest rate floor from 6.25% to 4.25% per annum, and (ii) extend the maturity date of the credit facility to June 28, 2017. | |||
On June 3, 2015, the Borrowers entered into a Second Amendment (the “Second Amendment”) to the Senior Loan Agreement. The primary purposes of the Second Amendment are to (i) modify the definition of Permitted Asset Disposition to provide the Company with the ability to transfer the stock of the Company’s wholly-owned Brazilian subsidiary, Lake Brasil Indústria e Comércio de Roupas e Equipamentos de Proteção Individual Ltda. (“Lakeland Brazil”), and (ii) allow the Borrowers to transfer funds to Lakeland Brazil for the specific purposes of settling arbitration claims, paying contractual expenses, and paying expenses incurred in connection with a transfer of the stock of Lakeland Brazil so long as, after giving effect to any such transfer, the amount Borrowers have as excess availability under the revolver loans, excluding the $15 million facility cap for this purpose only, calculated pursuant to and under the Senior Loan Agreement, is at least $3.0 million. Also, as part of the Second Amendment, Lender consented to the sale of the Company’s corporate offices in Ronkonkoma, New York on the condition that the net cash proceeds from the sale in the amount of at least $450,000 are used by the Company to pay down the Borrower’s obligations to Lender under the Senior Loan Agreement. | |||
On June 28, 2013, the Borrowers also entered into a Loan and Security Agreement (the “Subordinated Loan Agreement”) with LKL Investments, LLC, an affiliate of Arenal Capital, a private equity fund (the “Junior Lender”). The Subordinated Loan Agreement provided for a $3.5 million term loan to be made to the Borrowers with a second priority lien on substantially all of the assets of the Company in the United States and Canada, except for the Canadian warehouse and except for a first lien on the Company’s Mexican facility. Pursuant to the Subordinated Loan Agreement, among other things, Borrowers issued to the Junior Lender a five-year term loan promissory note (the “Note”). At the election of the Junior Lender, interest under the Note may have been paid in cash, by PIK in additional notes or payable in shares of common stock (“Common Stock”), of the Company. The Junior Lender also, in connection with this transaction, received a common stock purchase warrant (the “Warrant”) to purchase up to 566,015 shares of Common Stock (subject to adjustment), representing beneficial ownership of approximately 9.58% of the outstanding Common Stock of the Company, as of the closing of the transactions completed by the Subordinated Loan Agreement. The Company’s receipt of gross proceeds of $3.5 million (before original issue discount of $2.2 million related to the associated warrant) in subordinated debt financing was a condition precedent set by the Senior Lender, of which this transaction satisfied. The Warrant was fully exercised at October 31, 2014. | |||
On October 29, 2014, with the proceeds from a private placement of 1,110,000 shares of its common stock, the Company repaid in full the Subordinated Debt. The early extinguishment of the Subordinated Debt resulted in a one-time pretax non-cash charge of approximately $1.6 million for the remaining unamortized original issue discount on the Subordinated Debt and a pretax non-cash charge of approximately $0.6 million for the remaining unamortized fees paid at the closing of the June 2013 Subordinated Debt financing. These charges were included in the Company’s financial results for the third fiscal quarter ended October 31, 2014 and the fiscal year ended January 31, 2015. The $0.6 million of unamortized fees attributable to the Senior Debt will remain on the Company’s books and continue to be amortized over the remaining term of the Senior Debt through June 2017 as amended. | |||
The following is a summary of the material terms of the Senior Credit Facility: | |||
$15 million Senior Credit Facility | |||
· | Borrowers are Lakeland Industries, Inc. and its Canadian operating subsidiary Lakeland Protective Wear Inc. | ||
· | Borrowing pursuant to a revolving credit facility subject to a borrowing base calculated as the sum of: | ||
o | 85% of eligible accounts receivable as defined | ||
o | The lesser of 60% of eligible inventory as defined or 85% of net orderly liquidation value of inventory | ||
o | In transit inventory in bound to the US up to a cap of $1,000,000 | ||
o | Receivables and inventory held by the Canadian operating subsidiary to be included, up to a cap of $2 million of availability | ||
· | On April 30, 2015, there was $6.3 million available under the senior credit facility. | ||
· | Collateral | ||
o | A perfected first security lien on all of the Borrowers United States and Canadian assets, other than its Mexican plant and the Canadian warehouse | ||
o | Pledge of 65% of Lakeland US stock in all foreign subsidiaries other than 100% pledge of stock of its Canadian subsidiaries | ||
· | Collection | ||
o | All customers of Borrowers must remit to a lockbox controlled by Senior Lender or into a blocked account with all collection proceeds applied against the outstanding loan balance. | ||
· | Maturity | ||
o | An initial term of three years from June 28, 2013 (the “Closing Date”), which has been extended to June 28, 2017 pursuant to the Amendment | ||
o | Prepayment penalties of 2% if prior to the second anniversary of the Closing Date and 1% thereafter | ||
· | Interest Rate | ||
o | Rate equal to LIBOR rate plus 525 basis points, reduced to 325 basis points on March 31, 2015 per the Amendment | ||
o | Initial rate and rate at April 30, 2015 of 6.25% per annum | ||
o | Floor rate of 6.25%, reduced to 4.25% on March 31, 2015 per annum per the Amendment | ||
· | Fees: Borrowers shall pay to the Lender the following fees: | ||
o | Origination fee of $225,000, paid on the Closing Date and being amortized over the term of loans and is included in “intangibles, prepaid bank fees and other assets, net” in the accompanying consolidated balance sheet | ||
o | 0.50% per annum on unused portion of commitment | ||
o | A non-refundable collateral monitoring fee in the amount of $3,000 per month | ||
o | All legal and other out of pocket costs | ||
· | Financial Covenants | ||
o | Borrowers covenanted that, from the Closing Date until the commitment termination date and full payment of the obligations to Senior Lender, Lakeland Industries, Inc. (the parent company), together with its subsidiaries on a consolidated basis, excluding its Brazilian subsidiary, shall comply with the following additional covenants: | ||
· | Fixed Charge Coverage Ratio. At the end of each fiscal quarter of Borrowers, Borrowers shall maintain a Fixed Charge Coverage Ratio of not less than 1.1 to 1.00 for the four quarter period then ending. | ||
· | Minimum Quarterly Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”). Borrowers shall achieve, on a rolling four quarter basis excluding the operations of the Borrower’s Brazilian subsidiary, EBITDA of not less than $4.1 million. | ||
· | Capital Expenditures. Borrowers shall not during any fiscal year make capital expenditures in an amount exceeding $1 million in the aggregate. | ||
· | The Company is in compliance with all loan covenants of the Senior Debt at April 30, 2015. | ||
· | Other Covenants | ||
o | Standard financial reporting requirements as defined | ||
o | Limitation on amounts that can be advanced to or on behalf of Brazilian operations, limited to one aggregate total of $200,000 for the term of the loan | ||
o | Limitation on total net investment in foreign subsidiaries of a maximum of $1.0 million per annum | ||
Brazil Loans | |||
Brazil short-term borrowings as of April 30, 2015 consists of R$1,885,028 (US $629,686) and accrued interest of R$15,863 (US $5,299) which are included in liabilities of discontinued operations on the consolidated balance sheet. Brazil loans are collateralized by receivables, an officer guarantee, and customer contracts. Monthly interest rates range from 1.40% to 2.50% during the three month period ended April 30, 2015. | |||
Borrowings in UK | |||
On December 3, 2014, the Company and its UK subsidiary amended the terms of its existing financing facility with HSBC to provide for (i) a one-year extension of the maturity date of the existing financing facility to December 3, 2015, (ii) an increase in the facility limit from £1,250,000 (approximately USD $1.9 million) to £1,500,000 (approximately USD $2.3 million), and (iii) a decrease in the annual interest rate margin from 3.46% to 3.0%. In addition, pursuant to a letter agreement dated December 5, 2014, the Company agreed that £400,000 (approximately USD $0.6 million) of the note payable by the UK subsidiary to the Company shall be subordinated in priority of payment to the subsidiary’s obligations to HSBC under the financing facility. The balance outstanding under this facility at April 30, 2015 was the equivalent of USD $1.0 million and is included in short-term borrowings on the condensed consolidated balance sheet. The per annum interest rate repayment rate was 3.44% and the term was for a minimum period of one year renewable on December 3, 2015. | |||
Canada Loans | |||
In September 2013, the Company refinanced its loan with the Development Bank of Canada (BDC) for a principal amount of approximately Canadian and US $1.1 million (based on exchange rates at time of closing). Such loan is for a term of 240 months at an interest rate of 6.45% per annum with fixed monthly payments of approximately US $6,447 (C$8,169) including principal and interest. It is collateralized by a mortgage on the Company's warehouse in Brantford, Ontario. The amount outstanding at April 30, 2015 is C$1,057,474 which is included as US $829,762 short term borrowings on the accompanying condensed consolidated balance sheet, net of current maturities of US $50,000. | |||
China Loan | |||
On March 27, 2014, the Company’s China subsidiary, Weifang Lakeland Safety Products Co., Ltd (“WF”), and Weifang Rural Credit Cooperative Bank (“WRCCB”) completed an agreement for WF to obtain a line of credit for financing in the amount RMB 8,000,000 (approximately US $1.3 million), with interest at 120% of the benchmark rate supplied by WRCCB (which is currently 5.6%). The effective per annum interest rate is currently 6.72%. The loan is collateralized by inventory owned by WF. WRCCB had hired a professional firm to supervise WF’s inventory flow, which WF paid RMB 40,000 (approximately US $6,500). This loan was repaid on March 20, 2015 and the line of credit matured on March 25, 2015. There were no covenant requirements on this loan. | |||
On October 11, 2014, WF and Bank of China Anqiu Branch completed an agreement for WF to obtain a line of credit for financing in the amount RMB 5,000,000 (approximately US $0.8 million), with interest at 123% of the benchmark rate supplied by Bank of China Anqiu Branch (which is currently 6.0%). The effective per annum interest rate is currently 7.38%. The loan is collateralized by inventory owned by WF. The balance under this loan outstanding at April 30, 2015 was RMB 5,000,000 (approximately US $0.8 million) and is included in short-term borrowings on the condensed consolidated balance sheet. The line of credit is due within a one year period. | |||
On March 25, 2015 WF and WRCCB completed an agreement for WF to obtain a line of credit for financing in the amount of RMB 8,000,000 (approximately US $1.3 million), with interest at 120% of the benchmark rate supplied by WRCCB (which is currently 5.35% per annum). The effective per annum interest rate is currently 6.42%. The loan is collateralized by inventory owned by WF. WRCCB had hired a professional firm to supervise WF’s inventory flow, for which WF paid RMB 46,000 (approximately US $7,475). The balance under this loan outstanding at April 30, 2015 was RMB 8,000,000 (approximately US $1.3 million) and is included in short-term borrowings on the condensed consolidated balance sheet. The line of credit is due within a one year period. | |||
Argentina Loan | |||
In April 2015, the Company’s Argentina subsidiary was granted a $300,000 line of credit denominated in Argentine pesos, pursuant to a standby letter of credit granted by the parent company. There are several drawdowns each with six month terms at an annual rate of 34%. | |||
Major_Supplier
Major Supplier | 3 Months Ended |
Apr. 30, 2015 | |
Major Supplier Disclosure [Abstract] | |
Major Supplier [Text Block] | 7. Major Supplier |
No supplier accounted for more than 10% of cost of sales during the three-month period ended April 30, 2015 and 2014. | |
Employee_Stock_Compensation
Employee Stock Compensation | 3 Months Ended | ||||||||||||||||
Apr. 30, 2015 | |||||||||||||||||
Share-Based Arrangements With Employees and Nonemployees [Abstract] | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 8. Employee Stock Compensation | ||||||||||||||||
The Company has two main share-based payment plans: The Nonemployee Directors’ Option Plan (the “Directors’ Plan”) and a Restricted Stock Plan (the “2012 Equity Plan”). The below table summarizes the main provisions of each of these plans: | |||||||||||||||||
Nature and terms | |||||||||||||||||
Nonemployee Director Stock Option Plan | The plan provides for an automatic one-time grant of options to purchase 5,000 shares of common stock to each nonemployee director newly elected or appointed. Options are granted at not less than fair market value, become exercisable commencing six months from the date of grant and expire six years from the date of grant. In addition, all nonemployee directors re-elected to the Company’s Board of Directors at any annual meeting of the stockholders will automatically be granted additional options to purchase 1,000 shares of common stock on that date. Such plan expired at December 31, 2012 as to any new awards. Existing options will expire based on individual award dates. | ||||||||||||||||
Restricted Stock Plan - employees | Long-term incentive compensation three-year plan. Employees are granted potential share awards at the beginning of the three-year cycle at baseline, maximum or zero amounts. The level of award and final vesting is based on the Board of Directors’ opinion as to the performance of the Company and management in the entire three-year cycle. All vesting is three-year “cliff” vesting - there is no partial vesting. The valuation is based on the stock price at the grant date and amortized to expense over the three-year period, which approximates the performance period. | ||||||||||||||||
Restricted Stock Plan - directors | Long-term incentive compensation-three-year plan. Directors are granted potential share awards at the beginning of the three-year cycle at baseline, maximum or zero amounts. The level of award and final vesting is based on the Board of Directors’ opinion as to the performance of the Company and management in the entire three-year cycle. All vesting is three-year “cliff” vesting - there is no partial vesting. The valuation is based on the stock price at the grant date and amortized to expense over the three-year period, which approximates the performance period. | ||||||||||||||||
Matching award program | All participating employees are eligible to receive one share of restricted stock awarded for each two shares of Lakeland stock purchased on the open market. Such restricted shares are subject to three-year time vesting. The valuation is based on the stock price at the grant date and amortized to expense over the three-year period, which approximates the performance period. | ||||||||||||||||
Bonus in stock program - employees | All participating employees are eligible to elect to receive any cash bonus in shares of restricted stock. Such restricted shares are subject to two-year time vesting. The valuation is based on the stock price at the grant date and amortized to expense over the two-year period. Since the employee is giving up cash for unvested shares, the amount of shares awarded is 133% of the cash amount based on the grant date stock price. | ||||||||||||||||
Director fee in stock program | All directors are eligible to elect to receive any director fees in shares of restricted stock. Such restricted shares are subject to two-year time vesting. The valuation is based on the stock price at the grant date and amortized to expense over the two-year period. Since the director is giving up cash for unvested shares, the amount of shares awarded is 133% of the cash amount based on the grant date stock price, which approximates the performance period. | ||||||||||||||||
The following table represents our stock options granted, exercised and forfeited during the three-months ended April 30, 2015. | |||||||||||||||||
Stock Options | Number of Shares | Weighted Average Exercise Price per | Weighted Average Remaining | Aggregate Intrinsic Value | |||||||||||||
Share | Contractual Term | ||||||||||||||||
Outstanding at January 31, 2015 | 17,000 | $ | 7.11 | 1.83 years | $ | 54,580 | |||||||||||
Granted during the three-months ended April 30, 2015 | — | — | — | — | |||||||||||||
Forfeited during the three-months ended April 30, 2015 | -5,000 | $ | 6.21 | — | — | ||||||||||||
Outstanding at April 30, 2015 | 12,000 | $ | 7.48 | 2.26 years | $ | 24,070 | |||||||||||
Exercisable at April 30, 2015 | 12,000 | $ | 7.48 | 2.26 years | $ | 24,070 | |||||||||||
Reserved for future issuance: | |||||||||||||||||
Directors’ Plan (expired on December 31, 2012) | 0 | ||||||||||||||||
All stock-based option awards were fully vested at April 30, 2015 and January 31, 2015. There were no new grants during the three months ended April 30, 2015, and this plan expired by its terms on December 31, 2012. | |||||||||||||||||
The 2009 Equity Plan and the 2012 Equity Plan | |||||||||||||||||
On June 17, 2009, the stockholders of the Company approved the 2009 Equity Plan. A total of 253,000 shares of restricted stock were authorized under this plan. On June 20, 2012, the stockholders of the Company authorized 310,000 shares under a new restricted stock plan (the “2012 Equity Plan”). Under these restricted stock plans, eligible employees and directors are awarded performance-based restricted shares of the Company’s common stock. The amount recorded as expense for the performance-based grants of restricted stock are based upon an estimate made at the end of each reporting period as to the most probable outcome of this plan at the end of the three-year performance period (e.g., baseline, maximum or zero). In addition to the grants with vesting based solely on performance, certain awards pursuant to the plan have a time-based vesting requirement, under which awards vest from two to three years after grant issuance, subject to continuous employment and certain other conditions. Restricted stock has voting rights, and the underlying shares are not considered to be issued and outstanding until vested. | |||||||||||||||||
Under the 2009 Equity Incentive Plan, all grants have been vested. There are no remaining unvested or ungranted shares available under the 2009 Restricted Stock Plan as of April 30, 2015. | |||||||||||||||||
Under the 2012 Equity Incentive Plan, the Company has issued 53,556 fully vested shares as of April 30, 2015. The Company has also granted 244,497 of shares of unvested restricted stock as of April 30, 2015, assuming all maximum awards are achieved, (188,497 shares at “baseline”), and have a weighted average grant date fair value of $6.49 per share. The Company recognizes expense related to performance-based awards over the requisite service period using the straight-line attribution method based on the outcome that is probable. | |||||||||||||||||
As of April 30, 2015, unrecognized stock-based compensation expense related to restricted stock awards totaled $207,122 pursuant to the 2012 Equity Incentive Plan, before income taxes, based on the maximum performance award level, less what has been charged to expense on a cumulative basis through October 31, 2012, which was set to zero. The cost of these nonvested awards is expected to be recognized over a weighted-average period of three years. The performance based awards are not considered stock equivalents for earnings per share (“EPS”) calculation purposes. | |||||||||||||||||
Stock-Based Compensation | |||||||||||||||||
The Company recognized total stock-based compensation costs of $127,652 and $24,364 for the three-months ended April 30, 2015 and 2014, respectively, of which $0 and $18,896 result from the 2009 Equity Plan and $127,652 and $5,468 result from the 2012 Equity Plan for the periods ended April 30, 2015 and 2014, respectively, and $0 and $0, respectively, from the Director Option Plan. These amounts are reflected in operating expenses. The total income tax benefit recognized for stock-based compensation arrangements was $45,955 and $8,771 for the years ended April 30, 2015 and 2014, respectively. | |||||||||||||||||
Shares under 2012 Equity Plan | Outstanding Unvested Grants at | Granted during | Becoming Vested during FY16 | Forfeited during | Outstanding Unvested Grants at | ||||||||||||
Maximum at Beginning of FY16 | FY16 through April 30, 2015 | through April 30, 2015 | FY16 through April 30, 2015 | Maximum at End of | |||||||||||||
April 30, 2015 | |||||||||||||||||
Restricted stock grants – employees | 147,500 | — | — | — | 147,500 | ||||||||||||
Restricted stock grants - directors | 49,500 | — | — | — | 49,500 | ||||||||||||
Matching award program | 17,600 | — | — | — | 17,600 | ||||||||||||
Bonus in stock - employees | 36,172 | — | 18,316 | — | 17,856 | ||||||||||||
Retainer in stock - directors | 13,634 | 1,514 | 3,107 | — | 12,041 | ||||||||||||
Total restricted stock plan | 264,406 | 1,514 | 21,423 | — | 244,497 | ||||||||||||
Weighted average grant date fair value | $ | 6.27 | $ | 9.22 | $ | 4.06 | — | $ | 6.49 | ||||||||
Segment_Data
Segment Data | 3 Months Ended | |||||||||||
Apr. 30, 2015 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Segment Reporting Disclosure [Text Block] | 9. Segment Data | |||||||||||
Domestic and international sales from continuing operations are as follows in millions of dollars: | ||||||||||||
Three Months Ended April 30, | ||||||||||||
2015 | 2014 | |||||||||||
Domestic | $ | 12.84 | 51.73 | % | $ | 12.2 | 56.07 | % | ||||
International | 11.98 | 48.27 | % | 9.56 | 43.93 | % | ||||||
Total | $ | 24.82 | 100 | % | $ | 21.76 | 100 | % | ||||
We manage our operations by evaluating each of our geographic locations. Our US operations include our facilities in Alabama (primarily the distribution to customers of the bulk of our products and the manufacture of our chemical, glove and disposable products). We also maintain three manufacturing companies China (primarily disposable and chemical suit production), a wovens manufacturing facility in Brazil which has been discontinued and a manufacturing facility in Mexico (primarily disposable, glove and chemical suit production). Our China and Mexico facilities produce the majority of the Company’s products and China generates a significant portion of the Company’s revenues. The accounting policies of these operating entities are the same as those described in Note 1. We evaluate the performance of these entities based on operating profit, which is defined as income before income taxes, interest expense and other income and expenses. We have sales forces in Canada, Europe, Latin America, India, Russia, Kazakhstan and China, which sell and distribute products shipped from the United States, Mexico, Brazil (which has been discontinued) or China. The table below represents information about reported manufacturing segments for the years noted therein: | ||||||||||||
Three Months Ended | ||||||||||||
April 30, | ||||||||||||
(in millions of dollars) | ||||||||||||
2015 | 2014 | |||||||||||
(Restated for discontinued | ||||||||||||
operations) | ||||||||||||
Net Sales from continuing operations: | ||||||||||||
USA | $ | 13.65 | $ | 13.11 | ||||||||
Other foreign | 3.08 | 3.67 | ||||||||||
Europe (UK) | 5.61 | 2.79 | ||||||||||
Mexico | 0.86 | 0.92 | ||||||||||
China | 11.26 | 10.7 | ||||||||||
Corporate | 0.62 | 0.98 | ||||||||||
Less intersegment sales | -10.26 | -10.41 | ||||||||||
Consolidated sales | $ | 24.82 | $ | 21.76 | ||||||||
External Sales from continuing operations: | ||||||||||||
USA | $ | 12.84 | $ | 12.2 | ||||||||
Other foreign | 3.01 | 3.45 | ||||||||||
Europe (UK) | 5.6 | 2.79 | ||||||||||
Mexico | 0.31 | 0.42 | ||||||||||
China | 3.06 | 2.9 | ||||||||||
Consolidated external sales | $ | 24.82 | $ | 21.76 | ||||||||
Intersegment Sales from continuing operations: | ||||||||||||
USA | $ | 0.81 | $ | 0.91 | ||||||||
Other foreign | 0.07 | 0.22 | ||||||||||
Europe (UK) | 0.01 | — | ||||||||||
Mexico | 0.55 | 0.5 | ||||||||||
China | 8.2 | 7.8 | ||||||||||
Corporate | 0.62 | 0.98 | ||||||||||
Consolidated intersegment sales | $ | 10.26 | $ | 10.41 | ||||||||
Three Months Ended | ||||||||||||
April 30, | ||||||||||||
(in millions of dollars) | ||||||||||||
2015 | 2014 | |||||||||||
(Restated for discontinued operations | ||||||||||||
Operating Profit (Loss) from continuing operations: | ||||||||||||
USA | $ | 2.57 | $ | 0.91 | ||||||||
Other foreign | -0.1 | 0.17 | ||||||||||
Europe (UK) | 1.79 | 0.21 | ||||||||||
Mexico | -0.05 | -0.02 | ||||||||||
China | 0.77 | 0.96 | ||||||||||
Corporate | -1.62 | -1.33 | ||||||||||
Less intersegment profit | -0.14 | -0.04 | ||||||||||
Consolidated operating profit | $ | 3.22 | $ | 0.86 | ||||||||
Depreciation and Amortization Expense from continuing operations: | ||||||||||||
USA | $ | 0.04 | $ | 0.04 | ||||||||
Other foreign | 0.02 | 0.03 | ||||||||||
Europe (UK) | — | — | ||||||||||
Mexico | 0.03 | 0.01 | ||||||||||
China | 0.08 | 0.06 | ||||||||||
Corporate | 0.1 | 0.16 | ||||||||||
Less intersegment | -0.03 | -0.01 | ||||||||||
Consolidated depreciation & amortization expense | $ | 0.24 | $ | 0.29 | ||||||||
Interest Expense from continuing operations: | ||||||||||||
USA (shown in Corporate) | $ | — | $ | — | ||||||||
Other foreign | 0.02 | 0.04 | ||||||||||
Europe (UK) | — | 0.01 | ||||||||||
Mexico | — | 0.02 | ||||||||||
China | 0.04 | -0.02 | ||||||||||
Corporate | 0.12 | 0.49 | ||||||||||
Less intersegment | — | -0.05 | ||||||||||
Consolidated interest expense | $ | 0.18 | $ | 0.49 | ||||||||
Income Tax Expense (Benefits) from continuing operations: | ||||||||||||
USA (shown in Corporate) | $ | — | $ | — | ||||||||
Other foreign | 0.05 | 0.06 | ||||||||||
Europe (UK) | 0.4 | 0.02 | ||||||||||
Mexico | — | -0.04 | ||||||||||
China | 0.17 | 0.25 | ||||||||||
Corporate | 0.3 | -0.25 | ||||||||||
Less intersegment | -0.03 | -0.02 | ||||||||||
Consolidated income tax expense | $ | 0.89 | $ | 0.02 | ||||||||
April 30, 2015 | January 31, 2015 | |||||||||||
(in millions of dollars) | (in millions of dollars) | |||||||||||
Total Assets:* | ||||||||||||
USA | $ | 39 | $ | 36.35 | ||||||||
Other foreign | 18 | 18 | ||||||||||
Europe (UK) | 6.87 | 6.75 | ||||||||||
Mexico | 4.17 | 4.2 | ||||||||||
China | 34.47 | 33.04 | ||||||||||
India | -1.42 | -1.31 | ||||||||||
Brazil (discontinued operations) | 6.45 | 6.34 | ||||||||||
Corporate | 70.72 | 70.33 | ||||||||||
Less intersegment | -78.73 | -80.49 | ||||||||||
Consolidated assets | $ | 99.53 | $ | 93.21 | ||||||||
Total Assets Less Intersegment:* | ||||||||||||
USA | $ | 32.82 | $ | 30.14 | ||||||||
Other foreign | 10.22 | 10.32 | ||||||||||
Europe (UK) | 6.87 | 6.75 | ||||||||||
Mexico | 4.15 | 4.13 | ||||||||||
China | 21.55 | 17.03 | ||||||||||
India | 0.3 | 0.44 | ||||||||||
Brazil (discontinued operations) | 6.45 | 6.33 | ||||||||||
Corporate | 17.17 | 18.07 | ||||||||||
Consolidated assets | $ | 99.53 | $ | 93.21 | ||||||||
Property and Equipment: | ||||||||||||
USA | $ | 2.28 | $ | 2.3 | ||||||||
Other foreign | 1.83 | 1.77 | ||||||||||
Europe (UK) | 0.07 | 0.07 | ||||||||||
Mexico | 2.16 | 2.17 | ||||||||||
China | 2.74 | 2.7 | ||||||||||
India | 0.04 | 0.05 | ||||||||||
Corporate | 1.3 | 1.2 | ||||||||||
Less intersegment | -0.11 | -0.12 | ||||||||||
Consolidated property and equipment | $ | 10.31 | $ | 10.14 | ||||||||
Capital Expenditures: | ||||||||||||
USA | $ | 0.03 | $ | 0.05 | ||||||||
Other foreign | 0.02 | 0.05 | ||||||||||
Europe (UK) | — | 0.03 | ||||||||||
Mexico | — | 0.03 | ||||||||||
China | 0.11 | 0.31 | ||||||||||
India | — | 0.02 | ||||||||||
Corporate | 0.15 | 0.39 | ||||||||||
Consolidated capital expenditures | $ | 0.31 | $ | 0.88 | ||||||||
Goodwill: | ||||||||||||
USA | $ | 0.87 | $ | 0.87 | ||||||||
Consolidated goodwill | $ | 0.87 | $ | 0.87 | ||||||||
* Negative assets reflect intersegment accounts eliminated in consolidation | ||||||||||||
Income_Taxes
Income Taxes | 3 Months Ended |
Apr. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 10. Income Taxes |
Income Tax Audits/Change in Accounting Estimate | |
The Company is subject to US federal income tax, as well as income tax in multiple US state and local jurisdictions and a number of foreign jurisdictions. The Company has received a final “No Change Letter” from the IRS for FY07 dated August 20, 2009. The Company has received notice from the IRS on March 21, 2011, that it will shortly commence an audit for the FY09 tax return. There have been no further communications from the IRS since. The Company has not had any recent US corporate income tax returns examined by the IRS. Returns for the year since 2011 are still open based on statutes of limitation only. | |
Chinese tax authorities have performed limited reviews on all Chinese subsidiaries as of tax years 2008, 2009, 2010, 2011, 2012, 2013 and 2014 with no significant issues noted. We believe our tax positions are reasonably stated as of April 30, 2015. On May 20, 2015, Weifang Lakeland Safety Products Co., Ltd., one of our Chinese operations, was visited by the local tax authority as a routine check. Following this visit, management believes there is no material risk in our China tax position. | |
Our operations in the UK are profitable and continue to be subject to UK taxation. Management is not aware of any exposure in the UK. | |
Lakeland Protective Wear, Inc., our Canadian subsidiary, follows Canada tax regulatory framework recording its tax expense and tax deferred assets or liabilities. As of this statement filing date, we believe the Lakeland Protective Wear, Inc.’s tax situation is reasonably stated in accordance with accounting principles generally accepted in the United States of America, and we do not anticipate future tax liability. | |
The Company’s Brazilian subsidiary is currently under a tax audit, which raised some issues regarding the tax impact related to the merger held in 2008 and the goodwill resulting from the structure which was set up by the Company's Brazilian counsel's suggestion. The structure used is relatively common in acquisitions of Brazilian operations made by non-Brazilian companies. In general, acquisitions with this structure have survived challenge by the taxing authorities in Brazil. The cumulative amount of tax benefits recognized on the Company’s books through April 30, 2015, resulting from the tax deduction of the goodwill amortization is approximately US $0.9 million (R$ 2,774,843) consisting of tax of approximately US $0.1 million (R$ 280,416) and the remainder in interest and penalties. In February 2015, a court decision was reached in favor of the Company and as such no provision has been recorded. | |
In connection with the exit plan from Brazil, the Company claimed a worthless stock deduction which generated a tax benefit of approximately US $9.5 million, net of a US $2.9 million valuation allowance. While the Company and its tax advisors believe that this deduction is valid, there can be no assurance that the IRS will not challenge it and, if challenged, there is no assurance that the Company will prevail. | |
Except in Canada, it is our practice and intention to reinvest the earnings of our non-US subsidiaries in their operations. As of April 30, 2015, the Company had not made a provision for US or additional foreign withholding taxes on approximately $23.6 million of the excess of the amount for financial reporting over the tax basis of investments in foreign subsidiaries that are essentially permanent in duration ($21.6 million at January 31, 2015). Generally, such amounts become subject to US taxation upon remittance of dividends and under certain other circumstances. If theses earnings were repatriated to the US, the deferred tax liability associated with these temporary differences would be approximately $3.4 million at April 30, 2015. | |
In China, a dividend of $1.3 million was declared and paid to the Company in July 2014 from the Company’s China subsidiary, Weifang Lakeland Safety Products Co., Ltd. (“Weifang”) and in August 2014, a dividend of $450,000 was declared from the Company’s China subsidiary, Weifang Meiyang Protective Products Co., Ltd. (“Meiyang”) and paid to the Company in October 2014. The Company’s Board of Directors has instituted a plan to pay annual dividends of $1.0 million to the Company from Weifang’s future profits and 33% of Meiyang’s future profits starting in the next fiscal year. All other retained earnings are expected to be reinvested indefinitely. | |
Change in Accounting Estimate/Valuation Allowance | |
We record net deferred tax assets to the extent we believe these assets will more likely than not be realized. In making such determination, we considered all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial operations. The valuation allowance was $2,945,884 at April 30, 2015 and January 31, 2015. | |
Income Tax Expense | |
Income tax expenses consist of federal, state and foreign income taxes. Income tax expenses were $0.8 million for the three months ended April 30, 2015, as compared to income tax expense of $0 million for the three months ended April 30, 2014. | |
Derivative_Instruments_and_For
Derivative Instruments and Foreign Currency Exposure | 3 Months Ended |
Apr. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 11. Derivative Instruments and Foreign Currency Exposure |
The Company is exposed to foreign currency risk. Management has commenced a derivative instrument program to partially offset this risk by purchasing forward contracts to sell the Canadian Dollar and the Euro other than the cash flow hedge discussed below. Such contracts are largely timed to expire with the last day of the fiscal quarter, with a new contract purchased on the first day of the following quarter, to match the operating cycle of the Company. We designated the forward contracts as derivatives, but not as hedging instruments, with loss and gain recognized in current earnings. | |
The Company accounts for its foreign exchange derivative instruments by recognizing all derivatives as either assets or liabilities at fair value, which may result in additional volatility in both current period earnings and other comprehensive income as a result of recording recognized and unrecognized gains and losses from changes in the fair value of derivative instruments | |
We have two types of derivatives to manage the risk of foreign currency fluctuations as noted below:. | |
We enter into forward contracts with financial institutions to manage our currency exposure related to net assets and liabilities denominated in foreign currencies. Those forward contract derivatives, not designated as hedging instruments, are generally settled quarterly. Gain and loss on those forward contracts are included in current earnings. There were no outstanding forward contracts at April 30, 2015 or 2014. | |
We enter cash flow hedge contracts with financial institutions to manage our currency exposure on future cash payments denominated in foreign currencies. The effective portion of gain or loss on cash flow hedge is reported as a component of accumulated other comprehensive income. The notional amount of these contracts was $3.3 million and $2.5 million at April 30, 2015 and 2014, respectively. The corresponding asset and income recorded in the consolidated statements of other comprehensive income is $115,482 at April 30, 2015 and in April 30, 2014 the amount is immaterial to the consolidated financial statements. | |
VAT_Tax_Issue_in_Brazil_and_Pr
VAT Tax Issue in Brazil and Prior Period Adjustments | 3 Months Ended | ||||||||||||||||
Apr. 30, 2015 | |||||||||||||||||
Vat Tax Issues Disclosure [Abstract] | |||||||||||||||||
VAT Tax Issue [Text Block] | 12. VAT Tax Issue in Brazil and Prior Period Adjustments | ||||||||||||||||
Asserted Claims and Prior Period Adjustments | |||||||||||||||||
VAT (i.e. Value Added Tax) tax in Brazil is at the state level. We commenced operations in Brazil in May 2008 through an acquisition of Qualytextil, S.A. (“QT”). At the time of the acquisition, and going back to 2004, the acquired company used a port facility in a neighboring state (Recife-Pernambuco), rather than its own, in order to take advantage of incentives, in the form of a discounted VAT tax, to use such neighboring port facility. We continued this practice until April 2009. The practice was stopped largely for economic reasons, resulting from additional trucking costs and longer lead time. The Bahia state auditors (state of domicile for the Lakeland operations in Brazil) initially reviewed the period from 2004-2006 and filed a claim for unpaid VAT taxes in October 2009. The claim asserted that the state VAT taxes are owed to the state of domicile of the ultimate importer/user and disregarded the fact that the VAT taxes had already been paid to the neighboring state. | |||||||||||||||||
The audit notice claimed that the taxes paid to Recife-Pernambuco should have been paid to Bahia in the amount of R$4.8 million and assessed fines and interest of an additional R$5.6 million for a total of R$10.4 million (approximately US$3.0 million, $3.5 million and $6.5 million, respectively based on exchange rates at the time of the claim). | |||||||||||||||||
Bahia had announced an amnesty for this tax whereby R$3.5 million (US$1.9 million) of the taxes claimed were paid by QT by the end of the month of May 2010, and the interest and penalties related thereto were forgiven. According to fiscal regulation of Brazil, R$2.1 million (US$1.1 million) of this amnesty payment has since been recouped as credits against future taxes due. | |||||||||||||||||
An audit for the 2007-2009 period has been completed by the State of Bahia. In October 2010, the Company received five claims for 2007-2009 from the State of Bahia, the largest of which was for taxes of R$6.2 (US$2.1) million and fines and interest currently at R$8.3 million (US$2.8 million), for a total of R$14.6 (US$4.9) million. The Company intends to defend itself through a regulatory process and wait for the next amnesty period. Of other claims, our attorney informs us that three claims totaling R$1.3 (US$0.4) million in respect of fines and penalties will likely be successfully defended based on state auditor misunderstanding. | |||||||||||||||||
Lakeland intends to apply for amnesty and make any necessary payments upon a forthcoming, anticipated amnesty periods imposed by the local Brazilian authorities. Of this R$6.2 (US$2.1) million claim, R$3.4 (US$1.1) million is eligible for future credit. The future credit amount had been recorded at the USD value at the exchange rate prevailing in 2010 when recorded, but has not been recorded on the books and have been adjusted due to open contingencies (see prior period adjustment for see on VAT taxes in Brazil below). | |||||||||||||||||
The Company has changed its strategy regarding the large VAT tax claim as a result of the current cash flow needs in Brazil. In February 2014, as had been anticipated, the administrative proceedings have ended and a switch to a formal judicial proceeding became required. The Company is presently attempting to negotiate a guarantee with the administrative level in the Tax department whereby the Company would either pledge its inventory as collateral for the judicial deposit or alternately would agree to deposit into an escrow account with the court system a monthly judicial deposit of a negotiated percentage of its future sales in Brazil. The Company would then be able to avail itself of a later amnesty. Any amounts paid into the escrow would be available at such time to be applied to the amnesty payment. The Company believes it is more likely than not that it will have the cash from operations or the borrowing capacity at such time to fund such amnesty payment but no assurances can be given. | |||||||||||||||||
Such arrangement would result in a judicial tax claim filed against the Company for 20% greater than the total claim, or approximately US$5.1 million (R$15.4 million). Of this amount, only a portion of any amount paid into future amnesty would be eligible for future credit as discussed elsewhere in this note. | |||||||||||||||||
Once this arrangement is completed, the formal judicial process could take from 5 to 10 years. The Company believes there is a strong likelihood that another amnesty would be offered by the state prior to such completion. | |||||||||||||||||
The Company has accepted amnesty for a smaller claim (the fifth referenced above) which will result in eight monthly payments of about US $14,000 (R$42,000) which reflects abatement of 80% of penalty and interest. | |||||||||||||||||
Of three remaining claims, our attorney informs us that R$1.0 (US $0.3) million will be successfully defended based on a lapse of statute of limitations and R$0.3 (US $0.1) million based on state auditor misunderstanding. No accrual has been made for these items. | |||||||||||||||||
In December 2013, the Company learned of a different VAT tax claimed by the State of Sao Paulo for a tax in the amount of approximately US $45,000 and the total claim including interest and penalties totaling approximately US $200,000. In July 2014, management settled this claim for an amount of US $75,000 (R$172,000) net present value which will be paid in 120 monthly installments of R$4,500 (US $1,500) fixed with no interest or monetary depreciation. An amount of US $75,000 (R$ 172,000) has been charged to expense in Q2FY15. | |||||||||||||||||
Set forth below are the total amounts of potential tax liability from both the original and larger of the five secondary claims, the amount of payments already made into amnesty or scheduled for future payment, which are not eligible for future credit (essentially the discount allowed as an incentive by the neighboring state), less the amount of VAT taxes actually paid which are available as a credit and the amounts of the escrow released by one of the three sellers of the Brazilian company acquired by the Company. The foregoing forms the basis for the US$1.6 million charge to expense recorded by Lakeland in the first quarter of fiscal 2011. | |||||||||||||||||
A table summarizing all four different VAT claims remaining open and their status is listed below: | |||||||||||||||||
Principal | Interest & Penalty | Total | Approximate | Loss | Strategy | Collateral | |||||||||||
for Totals | Possibility | ||||||||||||||||
R$ | R$ | R$ | US $ | ||||||||||||||
305,897 | 534,038 | 839,935 | $ | 280,577 | Remote | To await Judicial Process and negotiate judicial deposit | New Land | ||||||||||
573,457 | 1,337,933 | 1,911,390 | $ | 636,492 | Remote | To await Judicial Process and negotiate judicial deposit | Plant | ||||||||||
6,209,836 | 8,356,422 | 14,566,258 | 4,865,800 | Probable | To await Judicial Process and negotiate judicial deposit | - | |||||||||||
402,071 | 826,346 | 1,228,417 | $ | 410,347 | Remote | To await Judicial Process and negotiate judicial deposit | New Land | ||||||||||
7,491,261 | 11,054,740 | 18,546,000 | $ | 6,193,216 | |||||||||||||
The R$ 6,209,836 for the larger VAT claim is intended to be paid into the next amnesty and as such is included on the condensed consolidated balance sheet as liabilities of discontinued operations of US $2,074,371 as of April 30, 2015. | |||||||||||||||||
Numbers may not add due to rounding. | |||||||||||||||||
Future Accounting for Funds | |||||||||||||||||
Following earlier payment into the amnesty program in 2010 and December 2013, a portion of the taxes were since recouped via credits against future taxes due. The Company does not expect any further charges to expense. Any future payment into amnesty has already been reflected on our books as a liability at January 31, 2015 and April 30, 2015, along with potential future credits. | |||||||||||||||||
Balance Sheet Treatment in Brazil after Discontinued Operations | |||||||||||||||||
The Company has reflected the above items on its April 30, 2015, balance sheet as follows: | |||||||||||||||||
R$ millions | US$ millions | ||||||||||||||||
Liabilities of discontinued operations | Taxes payable | 6.2 | 2.1 | ||||||||||||||
Prior Period Adjustment for Credit on VAT taxes in Brazil | |||||||||||||||||
In April 2010, the Company had recorded a credit of approximately R$3.4 million ($1.9 million at time of recording in 2010 and $1.3 million at exchange rates at January 31, 2015) arising on the payment of VAT taxes into the anticipated future amnesty. This credit results from the fact that these VAT taxes were paid to the neighboring state of Pernambuco and the State of Bahia is demanding payment in full to them even though a discounted amount of taxes had already been paid to Pernambuco and the credit is allowed for these paid taxes but against future taxes due. | |||||||||||||||||
It has since been determined that while the Company is entitled to such credit upon payment of the taxes into a future amnesty program, there is a possibility this credit could be challenged by a supervisor in the Bahia tax department. Based on research which failed to reveal any instances in which such a challenge has been made and prevailed, the Company believes that in the case of such challenge it is also remote that such challenge would prevail. Further, the Company paid an earlier claim for VAT taxes into an amnesty program in 2010 and received this credit which was utilized in full with no such challenge. However, since there is a contingency open as to the granting of this credit, (i.e. it is contingent upon paying the tax into a future amnesty program and the credit not being challenged by the Bahia tax department), however small, US GAAP prohibits this from being recorded as a “contingent asset” and therefore the Company has adjusted the condensed consolidated balance sheets as at January 31, 2013 and January 31, 2014, to eliminate this “contingent asset.” | |||||||||||||||||
Prior Period Adjustment for exchange rates on VAT taxes in Brazil | |||||||||||||||||
The VAT liability was not entered on the Brazil subsidiary’s books in earlier years but was treated as a consolidation entry and, accordingly, was not adjusted by the changing foreign exchange rates. This will be a favorable adjustment of $0.7 million and will reduce the liability in US dollars. Accordingly, the Company has adjusted the condensed consolidated balance sheets as at January 31, 2013 and January 31, 2014. | |||||||||||||||||
It should be noted that these assets would have been eliminated in any case in the event of the effectuation of the proposed transfer of the Company’s Brazilian subsidiary to an officer of the Company. Further, this, along with the other prior period adjustment referred to above, may reduce the Company’s basis in its Brazil subsidiary to below zero. The Company has announced that its Board has approved the aforementioned transfer. In such case, if and when the transfer is consummated, it may result in reporting a gain on such sale to the extent of negative basis. | |||||||||||||||||
Upon a transfer of Lakeland Brazil the buyer would assume these VAT tax liabilities. As described in Note 17, the Company could, under certain circumstances, continue to be exposed to these liabilities. | |||||||||||||||||
Brazil_Management_and_Share_Pu
Brazil Management and Share Purchase Agreement-Arbitration Award and Settlement Agreement | 3 Months Ended |
Apr. 30, 2015 | |
Brazil Management and Share Purchase Agreement [Abstract] | |
Brazil Management and Share Purchase Agreement [Text Block] | 13. Brazil Management and Share Purchase Agreement-Arbitration Award and Settlement Agreement |
Lakeland Industries, Inc. and its wholly-owned subsidiary, Lakeland Brasil S.A. (“Lakeland Brazil” and, for the purposes of this footnote, together with the Company were parties to an arbitration proceeding in Brazil involving the Company and two former officers (the “former officers”) of Lakeland Brazil. On May 8, 2012, the Company received notice of an arbitral award in favor of the former officers. | |
On September 11, 2012, the Company and the former officers entered into a settlement agreement (the “Settlement Agreement”) which fully and finally resolved all alleged outstanding claims against the Company arising from the arbitration proceeding. Pursuant to the Settlement Agreement, the Company agreed to a payment schedule to the former officers with a balance remaining as of April 30, 2015 of $3,750,000 in US dollars consisting of 15 consecutive quarterly installments of US $250,000 ending on December 31, 2018, net of imputed interest of $127,832 as shown on the condensed consolidated balance sheet at $2,636,523, net of current maturity of $1,000,000. The Company is current with all obligations pursuant to this Settlement Agreement. | |
In addition, pursuant to the Settlement Agreement, as additional security for payment of the settlement amount, Lakeland Brazil agreed to grant the former officers a second mortgage interest on certain of its property in Brazil, which mortgage is expressly behind the lien securing the payment of tax debts to a state within Brazil related to certain notices of tax assessment on such property. The Company also agreed to become a co-obligor, in lieu of a guarantor, for payment of the settlement amount. | |
On March 9, 2015, Lakeland Brazil changed its legal form to a Limitada and changed its name to Lake Brasil Industria E Comercio de Roupas E Equipamentos de Protecao Individual LTDA. | |
Goodwill
Goodwill | 3 Months Ended |
Apr. 30, 2015 | |
Real Estate [Abstract] | |
Goodwill Intangible and Other Assets Net and Goodwill Impairment [Text Block] | 14. Goodwill |
There was no impairment of goodwill during Q1 fiscal year 2016. | |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 3 Months Ended |
Apr. 30, 2015 | |
New Accounting Pronouncements and Changes In Accounting Principles [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | 15. Recent Accounting Pronouncements |
The Company considers the applicability and impact of all accounting standards updates (ASUs). No recent accounting pronouncement is expected to have a material impact on the consolidated financial statements. | |
Litigation
Litigation | 3 Months Ended |
Apr. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Matters and Contingencies [Text Block] | 16. Litigation |
The Company is involved in various litigation proceedings, in addition to those described in Note 10 of the financial statements of the Company’s Form 10-K filed May 18 , 2015 for the year ended January 31, 2015, arising during the normal course of business which, though in the opinion of the management of the Company, will not have a material effect on the Company’s financial position and results of operations or cash flows; however, there can be no assurance as to the ultimate outcome of these matters. | |
Discontinued_Operations
Discontinued Operations | 3 Months Ended | |||||||
Apr. 30, 2015 | ||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | 17. Discontinued Operations | |||||||
Potential Transfer of the Company’s Brazilian Operations | ||||||||
Discontinued operations | ||||||||
On April 29, 2015, the Board of Directors of Lakeland Industries, Inc. determined to exit the Brazilian market. The Company’s Brazilian operations have been unprofitable over the last several years. After extensively considering a number of options and the advice of Brazilian legal counsel, the Board of Directors approved a transfer of the Company’s wholly-owned Brazilian subsidiary, Lakeland Brazil to a current officer of Lakeland Brazil, subject to successful negotiation and entry into a definitive agreement. It is intended that the transfer involve the assumption of a substantial amount of liabilities by the transferee and additional funding from the Company. In order to effectuate a transfer and aid the transferee to meet its liabilities, it is anticipated the Company would contribute funding of approximately US $1,900,000 to the transferee, subject to possible partial recoupment through a land sale. The transfer has been approved by the Company’s senior lender, Alostar Bank of Commerce. | ||||||||
The Company expects that the transfer of Lakeland Brazil will occur during the second quarter of fiscal 2016. However, there can be no assurances that the transfer will be successfully consummated. The Company currently estimates that it will incur total pre-tax exit and disposal costs of approximately US $2.2 million, consisting of the aforementioned approximately US $1,900,000 of funding to the transferee in connection with the transfer of Lakeland Brazil and approximately US $300,000 for legal and accounting fees and expenses. The foregoing are estimates only. Actual amounts will not be known until the Company has fully implemented the proposed transfer transaction. Even after the transfer, the Company may continue to be exposed to certain liabilities arising in connection with the prior operations of Lakeland Brazil, including, without limitation, from lawsuits pending in the labor courts in Brazil and VAT taxes, as more fully described in the Company’s annual report on Form 10-K for the fiscal year ended January 31, 2015. The Company understands that under the laws of Brazil, a concept of fraudulent bankruptcy exists, which may hold a parent company liable for the liabilities of its Brazilian subsidiary in the event some level of fraud or misconduct is shown during the period that the parent company owned the subsidiary. While the Company believes that there has been no such fraud or misconduct, there can be no assurance that the courts of Brazil will not make such a finding nonetheless. The risk of exposure to the Company substantially diminishes if the transferee continues to operate the Brazilian subsidiary for a period of at least two years, as the risk of a finding of a fraudulent bankruptcy lessens and pre-sale liabilities are paid off. | ||||||||
The following tables summarize the results of the Brazil business included in the consolidated statement of income for the three months ended April 30, 2015 and 2014, and balance sheets as of April 30, 2015 and January 31, 2015 as discontinued operations. | ||||||||
Balance Sheet | ||||||||
(000's) | (000's) | |||||||
April 30, 2015 | January 31, 2015 | |||||||
Assets of discontinued operations: | ||||||||
Cash | $ | 12 | $ | 53 | ||||
Accounts receivable | 622 | 888 | ||||||
Inventory | 2,979 | 3,216 | ||||||
Other current assets | 1,495 | 634 | ||||||
Property/Equipment held for sale | 1,339 | 1,544 | ||||||
Total assets of discontinued operations | 6,447 | 6,335 | ||||||
Liabilities of discontinued operations: | ||||||||
Accounts payable | 467 | 651 | ||||||
Accrued compensation and benefits | 1,361 | 1,739 | ||||||
Other accrued expenses | 1,901 | 1,163 | ||||||
Short term borrowings | 630 | 688 | ||||||
Other liabilities | 2,333 | 2,333 | ||||||
Total liabilities of discontinued operations | 6,692 | 6,574 | ||||||
Statement of Operations | ||||||||
(000's) | (000's) | |||||||
April 30, 2015 | April 30, 2014 | |||||||
Net sales from discontinued operations | $ | 444 | $ | 1,749 | ||||
Cost of goods sold from discontinued operations | 412 | 1,154 | ||||||
Gross profit from discontinued operations | 32 | 595 | ||||||
Operating expense from discontinued operations | 484 | 871 | ||||||
Operating loss from discontinued operations | -452 | -276 | ||||||
Other, net from discontinued operations | -479 | -78 | ||||||
Loss from discontinued operations before income tax | -931 | -354 | ||||||
Net loss from discontinued operations | $ | -931 | $ | -354 | ||||
Summary Cash Flow Statement | ||||||||
(000's) | (000's) | |||||||
April 30, 2015 | April 30, 2014 | |||||||
Net cash used in operating activities | -587 | -570 | ||||||
Net cash used in investing activities | — | -2 | ||||||
Net cash provided by financing activities | 552 | 572 | ||||||
Net effect on cash of FX variations | -6 | — | ||||||
Net increase in cash and cash equivalents | -41 | — | ||||||
Cash and cash equivalents at beginning of year | 53 | — | ||||||
Cash and cash equivalents at end of year | $ | 12 | $ | — | ||||
Subsequent_Event
Subsequent Event | 3 Months Ended |
Apr. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 18. Subsequent Event |
In June 2015, Alostar Bank of Commerce, the Company's lender, amended the loan agreement to allow for the Brazil exit plan. | |
Inventories_Tables
Inventories (Tables) | 3 Months Ended | |||||||
Apr. 30, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Schedule of Inventory, Current [Table Text Block] | Inventories of continuing operations consist of the following (in $000s): | |||||||
April 30, 2015 | January 31, 2015 | |||||||
Raw materials | $ | 16,468 | $ | 14,379 | ||||
Work-in-process | 1,882 | 1,670 | ||||||
Finished goods | 21,145 | 21,043 | ||||||
$ | 39,495 | $ | 37,092 | |||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | |||||||
Apr. 30, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table sets forth the computation of basic and diluted earnings per share for “income from continuing operations” at April 30, 2015 and 2014, as follows: | |||||||
Three Months Ended | ||||||||
April 30, | ||||||||
(in $000s) | ||||||||
2015 | 2014 | |||||||
Numerator | ||||||||
Net income from continuing operations | $ | 2,160 | $ | 354 | ||||
Net loss from discontinued operations | -931 | -354 | ||||||
Net income (loss) | $ | 1,229 | $ | 0 | ||||
Denominator | ||||||||
Denominator for basic earnings per share | 7,062,144 | 5,923,224 | ||||||
(weighted-average shares which reflect 356,441 shares in the treasury as a result of the stock repurchase program that ended in 2011, and 0 and 566,015 weighted average common equivalents relating to the warrant issued with the FY14 subordinated debt financing) | ||||||||
Effect of dilutive securities from restricted stock plan and from dilutive effect of stock options | 173,241 | —— | ||||||
Denominator for diluted earnings per share (adjusted weighted average shares) | 7,235,385 | 5,923,224 | ||||||
Basic earnings per share from continuing operations | $ | 0.31 | $ | 0.06 | ||||
Basic earnings per share from discontinued operations | $ | -0.14 | $ | -0.06 | ||||
Basic earnings per share | $ | 0.17 | $ | 0 | ||||
Diluted earnings per share from continuing operations | $ | 0.3 | $ | 0.06 | ||||
Diluted earnings per share from discontinued operations | $ | -0.13 | $ | -0.06 | ||||
Diluted earnings per share | $ | 0.17 | $ | 0 | ||||
Employee_Stock_Compensation_Ta
Employee Stock Compensation (Tables) | 3 Months Ended | ||||||||||||||||
Apr. 30, 2015 | |||||||||||||||||
Share-Based Arrangements With Employees and Nonemployees [Abstract] | |||||||||||||||||
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | The following table represents our stock options granted, exercised and forfeited during the three-months ended April 30, 2015. | ||||||||||||||||
Stock Options | Number of Shares | Weighted Average Exercise Price per | Weighted Average Remaining | Aggregate Intrinsic Value | |||||||||||||
Share | Contractual Term | ||||||||||||||||
Outstanding at January 31, 2015 | 17,000 | $ | 7.11 | 1.83 years | $ | 54,580 | |||||||||||
Granted during the three-months ended April 30, 2015 | — | — | — | — | |||||||||||||
Forfeited during the three-months ended April 30, 2015 | -5,000 | $ | 6.21 | — | — | ||||||||||||
Outstanding at April 30, 2015 | 12,000 | $ | 7.48 | 2.26 years | $ | 24,070 | |||||||||||
Exercisable at April 30, 2015 | 12,000 | $ | 7.48 | 2.26 years | $ | 24,070 | |||||||||||
Reserved for future issuance: | |||||||||||||||||
Directors’ Plan (expired on December 31, 2012) | 0 | ||||||||||||||||
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | Shares under 2012 Equity Plan | Outstanding Unvested Grants at | Granted during | Becoming Vested during FY16 | Forfeited during | Outstanding Unvested Grants at | |||||||||||
Maximum at Beginning of FY16 | FY16 through April 30, 2015 | through April 30, 2015 | FY16 through April 30, 2015 | Maximum at End of | |||||||||||||
April 30, 2015 | |||||||||||||||||
Restricted stock grants – employees | 147,500 | — | — | — | 147,500 | ||||||||||||
Restricted stock grants - directors | 49,500 | — | — | — | 49,500 | ||||||||||||
Matching award program | 17,600 | — | — | — | 17,600 | ||||||||||||
Bonus in stock - employees | 36,172 | — | 18,316 | — | 17,856 | ||||||||||||
Retainer in stock - directors | 13,634 | 1,514 | 3,107 | — | 12,041 | ||||||||||||
Total restricted stock plan | 264,406 | 1,514 | 21,423 | — | 244,497 | ||||||||||||
Weighted average grant date fair value | $ | 6.27 | $ | 9.22 | $ | 4.06 | — | $ | 6.49 | ||||||||
Segment_Data_Tables
Segment Data (Tables) | 3 Months Ended | |||||||||||
Apr. 30, 2015 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Schedule Of Revenue From External Customers Geographic Areas [Table Text Block] | Domestic and international sales from continuing operations are as follows in millions of dollars: | |||||||||||
Three Months Ended April 30, | ||||||||||||
2015 | 2014 | |||||||||||
Domestic | $ | 12.84 | 51.73 | % | $ | 12.2 | 56.07 | % | ||||
International | 11.98 | 48.27 | % | 9.56 | 43.93 | % | ||||||
Total | $ | 24.82 | 100 | % | $ | 21.76 | 100 | % | ||||
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | Three Months Ended | |||||||||||
April 30, | ||||||||||||
(in millions of dollars) | ||||||||||||
2015 | 2014 | |||||||||||
(Restated for discontinued | ||||||||||||
operations) | ||||||||||||
Net Sales from continuing operations: | ||||||||||||
USA | $ | 13.65 | $ | 13.11 | ||||||||
Other foreign | 3.08 | 3.67 | ||||||||||
Europe (UK) | 5.61 | 2.79 | ||||||||||
Mexico | 0.86 | 0.92 | ||||||||||
China | 11.26 | 10.7 | ||||||||||
Corporate | 0.62 | 0.98 | ||||||||||
Less intersegment sales | -10.26 | -10.41 | ||||||||||
Consolidated sales | $ | 24.82 | $ | 21.76 | ||||||||
External Sales from continuing operations: | ||||||||||||
USA | $ | 12.84 | $ | 12.2 | ||||||||
Other foreign | 3.01 | 3.45 | ||||||||||
Europe (UK) | 5.6 | 2.79 | ||||||||||
Mexico | 0.31 | 0.42 | ||||||||||
China | 3.06 | 2.9 | ||||||||||
Consolidated external sales | $ | 24.82 | $ | 21.76 | ||||||||
Intersegment Sales from continuing operations: | ||||||||||||
USA | $ | 0.81 | $ | 0.91 | ||||||||
Other foreign | 0.07 | 0.22 | ||||||||||
Europe (UK) | 0.01 | — | ||||||||||
Mexico | 0.55 | 0.5 | ||||||||||
China | 8.2 | 7.8 | ||||||||||
Corporate | 0.62 | 0.98 | ||||||||||
Consolidated intersegment sales | $ | 10.26 | $ | 10.41 | ||||||||
Three Months Ended | ||||||||||||
April 30, | ||||||||||||
(in millions of dollars) | ||||||||||||
2015 | 2014 | |||||||||||
(Restated for discontinued operations | ||||||||||||
Operating Profit (Loss) from continuing operations: | ||||||||||||
USA | $ | 2.57 | $ | 0.91 | ||||||||
Other foreign | -0.1 | 0.17 | ||||||||||
Europe (UK) | 1.79 | 0.21 | ||||||||||
Mexico | -0.05 | -0.02 | ||||||||||
China | 0.77 | 0.96 | ||||||||||
Corporate | -1.62 | -1.33 | ||||||||||
Less intersegment profit | -0.14 | -0.04 | ||||||||||
Consolidated operating profit | $ | 3.22 | $ | 0.86 | ||||||||
Depreciation and Amortization Expense from continuing operations: | ||||||||||||
USA | $ | 0.04 | $ | 0.04 | ||||||||
Other foreign | 0.02 | 0.03 | ||||||||||
Europe (UK) | — | — | ||||||||||
Mexico | 0.03 | 0.01 | ||||||||||
China | 0.08 | 0.06 | ||||||||||
Corporate | 0.1 | 0.16 | ||||||||||
Less intersegment | -0.03 | -0.01 | ||||||||||
Consolidated depreciation & amortization expense | $ | 0.24 | $ | 0.29 | ||||||||
Interest Expense from continuing operations: | ||||||||||||
USA (shown in Corporate) | $ | — | $ | — | ||||||||
Other foreign | 0.02 | 0.04 | ||||||||||
Europe (UK) | — | 0.01 | ||||||||||
Mexico | — | 0.02 | ||||||||||
China | 0.04 | -0.02 | ||||||||||
Corporate | 0.12 | 0.49 | ||||||||||
Less intersegment | — | -0.05 | ||||||||||
Consolidated interest expense | $ | 0.18 | $ | 0.49 | ||||||||
Income Tax Expense (Benefits) from continuing operations: | ||||||||||||
USA (shown in Corporate) | $ | — | $ | — | ||||||||
Other foreign | 0.05 | 0.06 | ||||||||||
Europe (UK) | 0.4 | 0.02 | ||||||||||
Mexico | — | -0.04 | ||||||||||
China | 0.17 | 0.25 | ||||||||||
Corporate | 0.3 | -0.25 | ||||||||||
Less intersegment | -0.03 | -0.02 | ||||||||||
Consolidated income tax expense | $ | 0.89 | $ | 0.02 | ||||||||
April 30, 2015 | January 31, 2015 | |||||||||||
(in millions of dollars) | (in millions of dollars) | |||||||||||
Total Assets:* | ||||||||||||
USA | $ | 39 | $ | 36.35 | ||||||||
Other foreign | 18 | 18 | ||||||||||
Europe (UK) | 6.87 | 6.75 | ||||||||||
Mexico | 4.17 | 4.2 | ||||||||||
China | 34.47 | 33.04 | ||||||||||
India | -1.42 | -1.31 | ||||||||||
Brazil (discontinued operations) | 6.45 | 6.34 | ||||||||||
Corporate | 70.72 | 70.33 | ||||||||||
Less intersegment | -78.73 | -80.49 | ||||||||||
Consolidated assets | $ | 99.53 | $ | 93.21 | ||||||||
Total Assets Less Intersegment:* | ||||||||||||
USA | $ | 32.82 | $ | 30.14 | ||||||||
Other foreign | 10.22 | 10.32 | ||||||||||
Europe (UK) | 6.87 | 6.75 | ||||||||||
Mexico | 4.15 | 4.13 | ||||||||||
China | 21.55 | 17.03 | ||||||||||
India | 0.3 | 0.44 | ||||||||||
Brazil (discontinued operations) | 6.45 | 6.33 | ||||||||||
Corporate | 17.17 | 18.07 | ||||||||||
Consolidated assets | $ | 99.53 | $ | 93.21 | ||||||||
Property and Equipment: | ||||||||||||
USA | $ | 2.28 | $ | 2.3 | ||||||||
Other foreign | 1.83 | 1.77 | ||||||||||
Europe (UK) | 0.07 | 0.07 | ||||||||||
Mexico | 2.16 | 2.17 | ||||||||||
China | 2.74 | 2.7 | ||||||||||
India | 0.04 | 0.05 | ||||||||||
Corporate | 1.3 | 1.2 | ||||||||||
Less intersegment | -0.11 | -0.12 | ||||||||||
Consolidated property and equipment | $ | 10.31 | $ | 10.14 | ||||||||
Capital Expenditures: | ||||||||||||
USA | $ | 0.03 | $ | 0.05 | ||||||||
Other foreign | 0.02 | 0.05 | ||||||||||
Europe (UK) | — | 0.03 | ||||||||||
Mexico | — | 0.03 | ||||||||||
China | 0.11 | 0.31 | ||||||||||
India | — | 0.02 | ||||||||||
Corporate | 0.15 | 0.39 | ||||||||||
Consolidated capital expenditures | $ | 0.31 | $ | 0.88 | ||||||||
Goodwill: | ||||||||||||
USA | $ | 0.87 | $ | 0.87 | ||||||||
Consolidated goodwill | $ | 0.87 | $ | 0.87 | ||||||||
* Negative assets reflect intersegment accounts eliminated in consolidation | ||||||||||||
VAT_Tax_Issue_in_Brazil_and_Pr1
VAT Tax Issue in Brazil and Prior Period Adjustments (Tables) | 3 Months Ended | ||||||||||||||||
Apr. 30, 2015 | |||||||||||||||||
Vat Tax Issues Disclosure [Abstract] | |||||||||||||||||
Schedule Of Value Added Tax Claims [Table Text Block] | A table summarizing all four different VAT claims remaining open and their status is listed below: | ||||||||||||||||
Principal | Interest & Penalty | Total | Approximate | Loss | Strategy | Collateral | |||||||||||
for Totals | Possibility | ||||||||||||||||
R$ | R$ | R$ | US $ | ||||||||||||||
305,897 | 534,038 | 839,935 | $ | 280,577 | Remote | To await Judicial Process and negotiate judicial deposit | New Land | ||||||||||
573,457 | 1,337,933 | 1,911,390 | $ | 636,492 | Remote | To await Judicial Process and negotiate judicial deposit | Plant | ||||||||||
6,209,836 | 8,356,422 | 14,566,258 | 4,865,800 | Probable | To await Judicial Process and negotiate judicial deposit | - | |||||||||||
402,071 | 826,346 | 1,228,417 | $ | 410,347 | Remote | To await Judicial Process and negotiate judicial deposit | New Land | ||||||||||
7,491,261 | 11,054,740 | 18,546,000 | $ | 6,193,216 | |||||||||||||
Schedule Of Unused Value Added Tax Credit [Table Text Block] | The Company has reflected the above items on its April 30, 2015, balance sheet as follows: | ||||||||||||||||
R$ millions | US$ millions | ||||||||||||||||
Liabilities of discontinued operations | Taxes payable | 6.2 | 2.1 | ||||||||||||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 3 Months Ended | |||||||
Apr. 30, 2015 | ||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||
Schedule Of Disposal Groups Including Discontinued Operations Balance Sheet [Table Text Block] | The following tables summarize the results of the Brazil business included in the consolidated statement of income for the three months ended April 30, 2015 and 2014, and balance sheets as of April 30, 2015 and January 31, 2015 as discontinued operations. | |||||||
Balance Sheet | ||||||||
(000's) | (000's) | |||||||
April 30, 2015 | January 31, 2015 | |||||||
Assets of discontinued operations: | ||||||||
Cash | $ | 12 | $ | 53 | ||||
Accounts receivable | 622 | 888 | ||||||
Inventory | 2,979 | 3,216 | ||||||
Other current assets | 1,495 | 634 | ||||||
Property/Equipment held for sale | 1,339 | 1,544 | ||||||
Total assets of discontinued operations | 6,447 | 6,335 | ||||||
Liabilities of discontinued operations: | ||||||||
Accounts payable | 467 | 651 | ||||||
Accrued compensation and benefits | 1,361 | 1,739 | ||||||
Other accrued expenses | 1,901 | 1,163 | ||||||
Short term borrowings | 630 | 688 | ||||||
Other liabilities | 2,333 | 2,333 | ||||||
Total liabilities of discontinued operations | 6,692 | 6,574 | ||||||
Schedule Of Disposal Groups Including Discontinued Operations Income Statement [Table Text Block] | Statement of Operations | |||||||
(000's) | (000's) | |||||||
April 30, 2015 | April 30, 2014 | |||||||
Net sales from discontinued operations | $ | 444 | $ | 1,749 | ||||
Cost of goods sold from discontinued operations | 412 | 1,154 | ||||||
Gross profit from discontinued operations | 32 | 595 | ||||||
Operating expense from discontinued operations | 484 | 871 | ||||||
Operating loss from discontinued operations | -452 | -276 | ||||||
Other, net from discontinued operations | -479 | -78 | ||||||
Loss from discontinued operations before income tax | -931 | -354 | ||||||
Net loss from discontinued operations | $ | -931 | $ | -354 | ||||
Schedule Of Disposal Groups Including Discontinued Operations Cash Flow Statement [Table Text Block] | Summary Cash Flow Statement | |||||||
(000's) | (000's) | |||||||
April 30, 2015 | April 30, 2014 | |||||||
Net cash used in operating activities | -587 | -570 | ||||||
Net cash used in investing activities | — | -2 | ||||||
Net cash provided by financing activities | 552 | 572 | ||||||
Net effect on cash of FX variations | -6 | — | ||||||
Net increase in cash and cash equivalents | -41 | — | ||||||
Cash and cash equivalents at beginning of year | 53 | — | ||||||
Cash and cash equivalents at end of year | $ | 12 | $ | — | ||||
Business_Details_Textual
Business (Details Textual) | 3 Months Ended | |
Apr. 30, 2015 | Apr. 30, 2014 | |
Concentration Risk [Line Items] | ||
Entity Wide Revenue Major Customer Description | No customer accounted for more than 10% of net sales | No customer accounted for more than 10% of net sales |
Inventories_Details
Inventories (Details) (USD $) | Apr. 30, 2015 | Jan. 31, 2015 | |
In Thousands, unless otherwise specified | |||
Inventory [Line Items] | |||
Raw materials | $16,468 | $14,379 | |
Work-in-process | 1,882 | 1,670 | |
Finished goods | 21,145 | 21,043 | |
Inventory, Net, Total | $39,495 | $37,092 | [1] |
[1] | Restated for discontinued operations. |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Apr. 30, 2015 | Apr. 30, 2014 | |
Numerator | |||
Net income from continuing operations | $2,160 | $354 | [1] |
Net loss from discontinued operations | -931 | -354 | [1] |
Net income (loss) | $1,229 | $0 | [1] |
Denominator | |||
Denominator for basic earnings per share (weighted-average shares which reflect 356,441 shares in the treasury as a result of the stock repurchase program that ended in 2011, and 0 and 566,015 weighted average common equivalents relating to the warrant issued with the FY14 subordinated debt financing) | 7,062,144 | 5,923,224 | |
Effect of dilutive securities from restricted stock plan and from dilutive effect of stock options | 173,241 | 0 | |
Denominator for diluted earnings per share (adjusted weighted average shares) | 7,235,385 | 5,923,224 | [1] |
Basic earnings per share from continuing operations (in dollars per share) | $0.31 | $0.06 | [1] |
Basic earnings per share from discontinued operations (in dollars per share) | ($0.14) | ($0.06) | [1] |
Diluted earnings per share (in dollars per share) | $0.17 | $0 | [1] |
Diluted earnings per share from continuing operations (in dollars per share) | $0.30 | $0.06 | [1] |
Diluted earnings per share from discontinued operations (in dollars per share) | ($0.13) | ($0.06) | [1] |
Diluted earnings per share (in dollars per share) | $0.17 | $0 | [1] |
[1] | Restated for discontinued operations. |
Earnings_Per_Share_Details_Tex
Earnings Per Share (Details Textual) | 3 Months Ended | |
Apr. 30, 2015 | Apr. 30, 2014 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Weighted Average Number of Shares, Treasury Stock | 356,441 | 356,441 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 566,015 |
LongTerm_Debt_and_Subsequent_E1
Long-Term Debt and Subsequent Event (Details Textual) | Apr. 30, 2015 | Jan. 31, 2015 | Apr. 30, 2015 | Mar. 27, 2014 | Mar. 27, 2014 | Mar. 27, 2014 | Mar. 27, 2014 | Apr. 30, 2015 | Mar. 25, 2015 | Mar. 25, 2015 | Apr. 30, 2015 | Dec. 03, 2014 | Dec. 03, 2014 | Dec. 03, 2015 | Apr. 30, 2015 | Apr. 30, 2015 | Dec. 03, 2014 | Dec. 03, 2014 | Jan. 31, 2015 | Oct. 29, 2014 | Jun. 28, 2013 | Oct. 11, 2014 | Apr. 30, 2015 | Apr. 30, 2015 | Oct. 11, 2014 | Oct. 11, 2014 | Jun. 28, 2013 | Jun. 28, 2013 | Jun. 28, 2013 | Apr. 30, 2015 | Apr. 30, 2015 | Apr. 30, 2015 | Apr. 30, 2015 | Apr. 30, 2015 | Apr. 30, 2015 | Apr. 30, 2014 | Jan. 31, 2015 | Apr. 30, 2015 | Apr. 30, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Apr. 30, 2015 | Mar. 31, 2015 | Jun. 03, 2015 | Apr. 30, 2015 | Apr. 30, 2015 | Mar. 25, 2015 | Mar. 25, 2015 | |
USD ($) | USD ($) | China Subsidiary [Member] | China Subsidiary [Member] | China Subsidiary [Member] | Weifang Lakeland Safety Products Co Ltd And Weifang Rural Credit Cooperative Bank [Member] | Weifang Lakeland Safety Products Co Ltd And Weifang Rural Credit Cooperative Bank [Member] | Weifang Lakeland Safety Products Co Ltd And Weifang Rural Credit Cooperative Bank [Member] | Weifang Lakeland Safety Products Co Ltd And Weifang Rural Credit Cooperative Bank [Member] | Weifang Lakeland Safety Products Co Ltd And Weifang Rural Credit Cooperative Bank [Member] | Argentina Subsidiary [Member] | Borrowings In UK [Member] | Borrowings In UK [Member] | Borrowings In UK [Member] | Borrowings In UK [Member] | Borrowings In UK [Member] | Borrowings In UK [Member] | Borrowings In UK [Member] | Subordinated Debt [Member] | Subordinated Debt [Member] | Subordinated Debt [Member] | Bank of China Anqiu Branch [Member] | Bank of China Anqiu Branch [Member] | Bank of China Anqiu Branch [Member] | Bank of China Anqiu Branch [Member] | Bank of China Anqiu Branch [Member] | Senior Loan Agreement [Member] | Subordinated Loan Agreement [Member] | Subordinated Loan Agreement [Member] | Brazil Loans [Member] | Brazil Loans [Member] | Brazil Loans [Member] | Brazil Loans [Member] | Business Development Bank Of Canada [Member] | Business Development Bank Of Canada [Member] | Business Development Bank Of Canada [Member] | Senior Credit Facility [Member] | Senior Credit Facility [Member] | Senior Credit Facility [Member] | Senior Credit Facility [Member] | Senior Credit Facility [Member] | Senior Credit Facility [Member] | Senior Credit Facility [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | ||
USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | USD ($) | GBP (£) | USD ($) | GBP (£) | Amendment [Member] | Amendment [Member] | Private Placement [Member] | Private Placement [Member] | Private Placement [Member] | USD ($) | CNY | China Subsidiary [Member] | China Subsidiary [Member] | USD ($) | Junior Lender [Member] | Junior Lender [Member] | USD ($) | BRL | Maximum [Member] | Minimum [Member] | USD ($) | CAD | USD ($) | USD ($) | USD ($) | Amendment [Member] | Floor Interest Rate [Member] | Initial Interest Rate [Member] | Weifang Lakeland Safety Products Co Ltd And Weifang Rural Credit Cooperative Bank [Member] | Weifang Lakeland Safety Products Co Ltd And Weifang Rural Credit Cooperative Bank [Member] | Weifang Lakeland Safety Products Co Ltd And Weifang Rural Credit Cooperative Bank [Member] | Weifang Lakeland Safety Products Co Ltd And Weifang Rural Credit Cooperative Bank [Member] | |||||||||||
USD ($) | GBP (£) | USD ($) | USD ($) | USD ($) | USD ($) | CNY | USD ($) | Warrant [Member] | USD ($) | CNY | USD ($) | CNY | |||||||||||||||||||||||||||||||||||||
USD ($) | |||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||
Subordinated Debt, Total | $3,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Warrants To Purchase Common Stock | 566,015 | ||||||||||||||||||||||||||||||||||||||||||||||||
Beneficial Ownership Percentage | 9.58% | ||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from Issuance of Subordinated Long-term Debt | 3,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Line Of Credit Facility, Borrowing Base Calculation, Percentage Of Accounts Receivable | 85.00% | ||||||||||||||||||||||||||||||||||||||||||||||||
Line Of Credit Facility, Borrowing Base Calculation, Percentage Of Eligible Inventory | 60.00% | ||||||||||||||||||||||||||||||||||||||||||||||||
Line Of Credit Facility, Borrowing Base Calculation, Percentage Of Liquidation Value Of Inventory | 85.00% | ||||||||||||||||||||||||||||||||||||||||||||||||
Line Of Credit Facility, Borrowing Base Calculation, Inbound Inventory In Transit Inventory | 1,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Line Of Credit Facility, Borrowing Base Calculation, Receivables And Inventory Held By Canadian Subsidiary | 2,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Line Of Credit Facility, Borrowing Base Calculation, Amount Available At Closing | 6,300,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Line of Credit Facility, Collateral | A perfected first security lien on all of the Borrowers United States and Canadian assets, other than its Mexican plant and the Canadian warehouse o Pledge of 65% of Lakeland US stock in all foreign subsidiaries other than 100% pledge of stock of its Canadian subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||||||
Line of Credit Facility, Covenant Terms | Prepayment penalties of 2% if prior to the second anniversary of the Closing Date and 1% thereafter Interest Rate | ||||||||||||||||||||||||||||||||||||||||||||||||
Line of Credit Facility, Interest Rate Description | 525 | 325 | |||||||||||||||||||||||||||||||||||||||||||||||
Line of Credit Facility, Interest Rate at Period End | 6.72% | 5.60% | 6.00% | 6.00% | 7.38% | 7.38% | 6.25% | 6.25% | 6.42% | 6.42% | |||||||||||||||||||||||||||||||||||||||
Line of Credit Facility, Commitment Fee Percentage | 0.50% | ||||||||||||||||||||||||||||||||||||||||||||||||
Line of Credit Facility, Collateral Fees, Amount | 3,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Line Of Credit Facility, Financial Covenant Fixed Charge Coverage Ratio | 1.1 to 1 | ||||||||||||||||||||||||||||||||||||||||||||||||
Line Of Credit Facility Financial Covenant Minimum Amount Of EBITDA Quarter One | 4,100,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Line Of Credit Facility, Financial Covenant, Capital Expenditures | 1,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
line Of Credit, Facility Other Covenants, Limitation On Advances | 200,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Line Of Credit, Facility Other Covenants, Limitation On Investments In Foreign Subsidiaries | 1,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Fee Amount | 225,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.35% | 5.35% | 34.00% | 2.50% | 1.40% | ||||||||||||||||||||||||||||||||||||||||||||
Short-term Debt, Percentage Bearing Fixed Interest Rate | 3.44% | ||||||||||||||||||||||||||||||||||||||||||||||||
Short-term Debt, Refinanced, Amount | 1,100,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Term | 240 months | 240 months | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 6.45% | 6.45% | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Periodic Payment | 6,447 | 8,169 | |||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, Current Maturities | 50,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, Total | 829,762 | 1,057,474 | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Unamortized Discount | 2,200,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,900,000 | 1,250,000 | 2,300,000 | 1,500,000 | |||||||||||||||||||||||||||||||||||||||||||||
Line Of Credit Facility Advance Rate | 3.46% | 3.46% | 3.00% | 3.00% | |||||||||||||||||||||||||||||||||||||||||||||
Line Of Credit Facility Bench mark Interest Rate At Period End | 120.00% | 120.00% | 120.00% | 123.00% | |||||||||||||||||||||||||||||||||||||||||||||
Professional Fees | 6,500 | 40,000 | 7,475 | 46,000 | |||||||||||||||||||||||||||||||||||||||||||||
Long-term Line of Credit | 1,300,000 | 8,000,000 | 1,300,000 | 8,000,000 | 300,000 | 1,000,000 | 800,000 | 5,000,000 | 800,000 | 5,000,000 | 15,000,000 | 15,000,000 | 1,300,000 | 8,000,000 | |||||||||||||||||||||||||||||||||||
Short-Term Debt | 3,446,000 | 2,611,000 | [1] | 629,686 | 1,885,028 | ||||||||||||||||||||||||||||||||||||||||||||
Accrued Liabilities | 5,299 | 15,863 | |||||||||||||||||||||||||||||||||||||||||||||||
Notes Payable | 600,000 | 400,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Line Of Credit Facility Floor Interest Rate | 6.25% | 4.25% | |||||||||||||||||||||||||||||||||||||||||||||||
Stock Issued During Period, Shares, Other | 1,110,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Debt Related Commitment Fees and Debt Issuance Costs | $600,000 | $1,600,000 | $600,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Line Of Credit facility Maturity Description | An initial term of three years from June 28, 2013 (the Closing Date), which has been extended to June 28, 2017 pursuant to the Amendment o Prepayment penalties of 2% if prior to the second anniversary of the Closing Date and 1% thereafter | ||||||||||||||||||||||||||||||||||||||||||||||||
Description Of Senior Loan Agreement | The primary purposes of the Second Amendment are to (i) modify the definition of Permitted Asset Disposition to provide the Company with the ability to transfer the stock of the Companys wholly-owned Brazilian subsidiary, Lake Brasil Indstria e Comrcio de Roupas e Equipamentos de Proteo Individual Ltda. (Lakeland Brazil), and (ii) allow the Borrowers to transfer funds to Lakeland Brazil for the specific purposes of settling arbitration claims, paying contractual expenses, and paying expenses incurred in connection with a transfer of the stock of Lakeland Brazil so long as, after giving effect to any such transfer, the amount Borrowers have as excess availability under the revolver loans, excluding the $15 million facility cap for this purpose only, calculated pursuant to and under the Senior Loan Agreement, is at least $3.0 million. Also, as part of the Second Amendment, Lender consented to the sale of the Companys corporate offices in Ronkonkoma, New York on the condition that the net cash proceeds from the sale in the amount of at least $450,000 are used by the Company to pay down the Borrowers obligations to Lender under the Senior Loan Agreement. | ||||||||||||||||||||||||||||||||||||||||||||||||
[1] | Restated for discontinued operations. |
Major_Supplier_Details_Textual
Major Supplier (Details Textual) | 3 Months Ended | |
Apr. 30, 2015 | Apr. 30, 2014 | |
Major Supplier [Line Items] | ||
Entity Wide Purchases Major Supplier Percentage | 10.00% | 10.00% |
Employee_Stock_Compensation_De
Employee Stock Compensation (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Apr. 30, 2015 | Jan. 31, 2015 | Apr. 03, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares, Outstanding at January 31, 2015 | 17,000 | ||
Number of Shares, Granted | 0 | ||
Number of Shares, Forfeited | -5,000 | ||
Number of Shares, Outstanding, Outstanding at April 30, 2015 | 12,000 | 17,000 | |
Number of Shares, Exercisable at April 30, 2015 | 12,000 | ||
Number of Shares, Reserved for future issuance, Directors' Plan (expired on December 31, 2012) | 0 | ||
Weighted Average Exercise Price per Share, Outstanding at January 31, 2015 (in dollars per share) | $7.11 | ||
Weighted Average Exercise Price per Share, Granted (in dollars per share) | $0 | ||
Weighted Average Exercise Price per Share, Forfeited (in dollars per share) | $6.21 | ||
Weighted Average Exercise Price per Share, Outstanding at April 30, 2015 (in dollars per share) | $7.48 | $7.11 | |
Weighted Average Exercise Price per Share, Exercisable at April 30, 2015 (in dollars per share) | $7.48 | ||
Weighted Average Remaining Contractual Term, Outstanding at April 30, 2015 (in years) | 2 years 3 months 4 days | 1 year 9 months 29 days | |
Weighted Average Remaining Contractual Term, Exercisable at April 30, 2015 (in years) | 2 years 3 months 4 days | ||
Aggregate Intrinsic Value, Outstanding at Apil 30, 2015 (in dollars) | $24,070 | $54,580 | |
Aggregate Intrinsic Value, Exercisable at April 30, 2015 (in dollars) | $24,070 |
Employee_Stock_Compensation_De1
Employee Stock Compensation (Details 1) (Shares Under 2012 Equity Plan [Member], USD $) | 3 Months Ended |
Apr. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding Unvested Grants at Maximum at Beginning of FY16, restricted stock | 264,406 |
Granted during FY16, restricted stock | 1,514 |
Becoming Vested during FY16, restricted stock | 21,423 |
Forfeited during FY16, restricted stock | 0 |
Outstanding Unvested Grants at Maximum at End of FY16, restricted stock | 244,497 |
Outstanding Unvested Grants at Maximum at Beginning of FY16, Weighted average grant date fair value (in dollars per share) | $6.27 |
Granted during FY16, Weighted average grant date fair value (in dollars per share) | $9.22 |
Becoming Vested during FY16, Weighted average grant date fair value (in dollars per share) | $4.06 |
Forfeited during FY16, Weighted average grant date fair value (in dollars per share) | $0 |
Outstanding Unvested Grants at Maximum at End of FY16, Weighted average grant date fair value (in dollars per share) | $6.49 |
Restricted Stock Grants - Employees [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding Unvested Grants at Maximum at Beginning of FY16, restricted stock | 147,500 |
Granted during FY16, restricted stock | 0 |
Becoming Vested during FY16, restricted stock | 0 |
Forfeited during FY16, restricted stock | 0 |
Outstanding Unvested Grants at Maximum at End of FY16, restricted stock | 147,500 |
Restricted Stock Grants - Directors [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding Unvested Grants at Maximum at Beginning of FY16, restricted stock | 49,500 |
Granted during FY16, restricted stock | 0 |
Becoming Vested during FY16, restricted stock | 0 |
Forfeited during FY16, restricted stock | 0 |
Outstanding Unvested Grants at Maximum at End of FY16, restricted stock | 49,500 |
Matching Award Program [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding Unvested Grants at Maximum at Beginning of FY16, restricted stock | 17,600 |
Granted during FY16, restricted stock | 0 |
Becoming Vested during FY16, restricted stock | 0 |
Forfeited during FY16, restricted stock | 0 |
Outstanding Unvested Grants at Maximum at End of FY16, restricted stock | 17,600 |
Bonus in stock - employees [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding Unvested Grants at Maximum at Beginning of FY16, restricted stock | 36,172 |
Granted during FY16, restricted stock | 0 |
Becoming Vested during FY16, restricted stock | 18,316 |
Forfeited during FY16, restricted stock | 0 |
Outstanding Unvested Grants at Maximum at End of FY16, restricted stock | 17,856 |
Retainer in stock - directors [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding Unvested Grants at Maximum at Beginning of FY16, restricted stock | 13,634 |
Granted during FY16, restricted stock | 1,514 |
Becoming Vested during FY16, restricted stock | 3,107 |
Forfeited during FY16, restricted stock | 0 |
Outstanding Unvested Grants at Maximum at End of FY16, restricted stock | 12,041 |
Employee_Stock_Compensation_De2
Employee Stock Compensation (Details Textual) (USD $) | 3 Months Ended | ||||
Apr. 30, 2015 | Apr. 30, 2014 | Jun. 20, 2012 | Jun. 17, 2009 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation | $127,000 | $24,000 | [1] | ||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 45,955 | 8,771 | |||
Equity Incentive 2012 Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 310,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 53,556 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 188,497 | ||||
Share-based Compensation | 127,652 | 5,468 | |||
Equity Incentive 2009 Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation | 0 | 18,896 | |||
Non-employee Directors Option Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options to Purchase Common Stock | 5,000 | ||||
Additional Options to Purchase Common Stock | 1,000 | ||||
Director Option Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation | 0 | 0 | |||
Restricted Stock [Member] | Equity Incentive 2012 Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Employee Service Share-Based Compensation, Nonvested Awards, Total Compensation Cost Not Yet Recognized, Stock Options | $207,122 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $6.49 | ||||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Unvested In Period | 244,497 | ||||
Restricted Stock [Member] | Equity Incentive 2009 Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 253,000 | ||||
Employees Bonus In Stock Program [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 133.00% | ||||
Director Fee In Stock Program [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 133.00% | ||||
[1] | Restated for discontinued operations. |
Segment_Data_Details
Segment Data (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Apr. 30, 2015 | Apr. 30, 2014 | |
Segment Reporting Information [Line Items] | |||
Net sales from continuing operations | $24,819 | $21,758 | [1] |
Sales Revenue, Percentage | 100.00% | 100.00% | |
Domestic [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales from continuing operations | 12,840 | 12,200 | |
Sales Revenue, Percentage | 51.73% | 56.07% | |
International [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales from continuing operations | $11,980 | $9,560 | |
Sales Revenue, Percentage | 48.27% | 43.93% | |
[1] | Restated for discontinued operations. |
Segment_Data_Details_1
Segment Data (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | ||||
Apr. 30, 2015 | Apr. 30, 2014 | Jan. 31, 2015 | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales from continuing operations | $24,819,000 | $21,758,000 | [1] | |||
Operating Profit (Loss) | 3,220,000 | 858,000 | [1] | |||
Depreciation and Amortization Expense | 246,000 | 293,000 | [1] | |||
Interest Expense | -183,000 | -486,000 | [1] | |||
Income Tax Expense (Benefits) | 892,000 | 23,000 | [1] | |||
Total assets | 99,530,000 | [2] | 93,208,000 | [1],[2] | ||
Property and Equipment | 10,311,000 | 10,144,000 | [1] | |||
Capital Expenditures | 310,000 | 880,000 | ||||
Goodwill | 871,000 | 871,000 | [1] | |||
External Sales [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales from continuing operations | 24,820,000 | 21,760,000 | ||||
Intersegment Eliminations [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales from continuing operations | 10,260,000 | 10,410,000 | ||||
Operating Profit (Loss) | -140,000 | -40,000 | ||||
Depreciation and Amortization Expense | -30,000 | -10,000 | ||||
Interest Expense | 0 | -50,000 | ||||
Income Tax Expense (Benefits) | -30,000 | -20,000 | ||||
Total assets | -78,730,000 | [2] | -80,490,000 | [2] | ||
Property and Equipment | -110,000 | -120,000 | ||||
Sales [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales from continuing operations | -10,260,000 | -10,410,000 | ||||
Unites States [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales from continuing operations | 13,650,000 | 13,110,000 | ||||
Operating Profit (Loss) | 2,570,000 | 910,000 | ||||
Depreciation and Amortization Expense | 40,000 | 40,000 | ||||
Interest Expense | 0 | 0 | ||||
Income Tax Expense (Benefits) | 0 | 0 | ||||
Total assets | 39,000,000 | [2] | 36,350,000 | [2] | ||
Property and Equipment | 2,280,000 | 2,300,000 | ||||
Capital Expenditures | 30,000 | 50,000 | ||||
Goodwill | 870,000 | 870,000 | ||||
Unites States [Member] | External Sales [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales from continuing operations | 12,840,000 | 12,200,000 | ||||
Unites States [Member] | Intersegment Eliminations [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales from continuing operations | 810,000 | 910,000 | ||||
Total assets | 32,820,000 | [2] | 30,140,000 | [2] | ||
Other foreign [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales from continuing operations | 3,080,000 | 3,670,000 | ||||
Operating Profit (Loss) | -100,000 | 170,000 | ||||
Depreciation and Amortization Expense | 20,000 | 30,000 | ||||
Interest Expense | 20,000 | 40,000 | ||||
Income Tax Expense (Benefits) | 50,000 | 60,000 | ||||
Total assets | 18,000,000 | [2] | 18,000,000 | [2] | ||
Property and Equipment | 1,830,000 | 1,770,000 | ||||
Capital Expenditures | 20,000 | 50,000 | ||||
Other foreign [Member] | External Sales [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales from continuing operations | 3,010,000 | 3,450,000 | ||||
Other foreign [Member] | Intersegment Eliminations [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales from continuing operations | 70,000 | 220,000 | ||||
Total assets | 10,220,000 | [2] | 10,320,000 | [2] | ||
Europe [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Total assets | 6,870,000 | [2] | 6,750,000 | [2] | ||
Property and Equipment | 70,000 | 70,000 | ||||
Capital Expenditures | 0 | 30,000 | ||||
Europe [Member] | Intersegment Eliminations [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Total assets | 6,870,000 | [2] | 6,750,000 | [2] | ||
Europe [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales from continuing operations | 5,610,000 | 2,790,000 | ||||
Operating Profit (Loss) | 1,790,000 | 210,000 | ||||
Depreciation and Amortization Expense | 0 | 0 | ||||
Interest Expense | 0 | 10,000 | ||||
Income Tax Expense (Benefits) | 400,000 | 20,000 | ||||
Europe [Member] | External Sales [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales from continuing operations | 5,600,000 | 2,790,000 | ||||
Europe [Member] | Intersegment Eliminations [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales from continuing operations | 10,000 | |||||
Mexico [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales from continuing operations | 860,000 | 920,000 | ||||
Operating Profit (Loss) | -50,000 | -20,000 | ||||
Depreciation and Amortization Expense | 30,000 | 10,000 | ||||
Interest Expense | 0 | 20,000 | ||||
Income Tax Expense (Benefits) | 0 | -40,000 | ||||
Total assets | 4,170,000 | [2] | 4,200,000 | [2] | ||
Property and Equipment | 2,160,000 | 2,170,000 | ||||
Capital Expenditures | 0 | 30,000 | ||||
Mexico [Member] | External Sales [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales from continuing operations | 310,000 | 420,000 | ||||
Mexico [Member] | Intersegment Eliminations [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales from continuing operations | 550,000 | 500,000 | ||||
Total assets | 4,150,000 | [2] | 4,130,000 | [2] | ||
China [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales from continuing operations | 11,260,000 | 10,700,000 | ||||
Operating Profit (Loss) | 770,000 | 960,000 | ||||
Depreciation and Amortization Expense | 80,000 | 60,000 | ||||
Interest Expense | 40,000 | -20,000 | ||||
Income Tax Expense (Benefits) | 170,000 | 250,000 | ||||
Total assets | 34,470,000 | [2] | 33,040,000 | [2] | ||
Property and Equipment | 2,740,000 | 2,700,000 | ||||
Capital Expenditures | 110,000 | 310,000 | ||||
China [Member] | External Sales [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales from continuing operations | 3,060,000 | 2,900,000 | ||||
China [Member] | Intersegment Eliminations [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales from continuing operations | 8,200,000 | 7,800,000 | ||||
Total assets | 21,550,000 | [2] | 17,030,000 | [2] | ||
Brazil [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Total assets | 6,450,000 | [2] | 6,340,000 | [2] | ||
Brazil [Member] | Intersegment Eliminations [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Total assets | 6,450,000 | [2] | 6,330,000 | [2] | ||
Corporate [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales from continuing operations | 620,000 | 980,000 | ||||
Operating Profit (Loss) | -1,620,000 | -1,330,000 | ||||
Depreciation and Amortization Expense | 100,000 | 160,000 | ||||
Interest Expense | 120,000 | 490,000 | ||||
Income Tax Expense (Benefits) | 300,000 | -250,000 | ||||
Total assets | 70,720,000 | [2] | 70,330,000 | [2] | ||
Property and Equipment | 1,300,000 | 1,200,000 | ||||
Capital Expenditures | 150,000 | 390,000 | ||||
Corporate [Member] | Intersegment Eliminations [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales from continuing operations | 620,000 | 980,000 | ||||
Total assets | 17,170,000 | [2] | 18,070,000 | [2] | ||
India [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Total assets | -1,420,000 | [2] | -1,310,000 | [2] | ||
Property and Equipment | 40,000 | 50,000 | ||||
Capital Expenditures | 0 | 20,000 | ||||
India [Member] | Intersegment Eliminations [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Total assets | $300,000 | [2] | $440,000 | [2] | ||
[1] | Restated for discontinued operations. | |||||
[2] | Negative assets reflect intersegment accounts eliminated in consolidation |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) | 3 Months Ended | 3 Months Ended | ||||||||
Apr. 30, 2015 | Apr. 30, 2014 | Jan. 31, 2015 | Apr. 30, 2015 | Apr. 30, 2015 | Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2015 | Apr. 30, 2015 | ||
USD ($) | USD ($) | USD ($) | Brazil [Member] | Brazil [Member] | Federal State And Foreign Income Taxes [Member] | Federal State And Foreign Income Taxes [Member] | Weifang Lakeland Safety Products Co., Ltd. [Member] | Weifang Meiyang Protective Products Co., Ltd [Member] | ||
USD ($) | BRL | USD ($) | USD ($) | USD ($) | USD ($) | |||||
Income Taxes [Line Items] | ||||||||||
Income Tax Examination, Tax Expense | $100,000 | 280,416 | ||||||||
Undistributed Earnings of Foreign Subsidiaries | 23,600,000 | 21,600,000 | ||||||||
Deferred Tax Liability Not Recognized, Amount of Unrecognized Deferred Tax Liability, Undistributed Earnings of Foreign Subsidiaries | 3,400,000 | |||||||||
Estimated Dividends, Amount | 1,000,000 | |||||||||
Estimated Dividends, Percentage | 33.00% | |||||||||
Dividends | 1,300,000 | 450,000 | ||||||||
Provision (Benefit) For Income Taxes | 892,000 | 23,000 | [1] | 0 | 800,000 | |||||
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | 2,945,884 | 2,945,884 | 2,900,000 | |||||||
Effective Income Tax Rate Reconciliation, Deduction, Other, Amount | 9,500,000 | |||||||||
Effective Income Tax Rate Reconciliation, Deduction, Goodwill and Amortization | $900,000 | 2,774,843 | ||||||||
[1] | Restated for discontinued operations. |
Derivative_Instruments_and_For1
Derivative Instruments and Foreign Currency Exposure (Details Textual) (USD $) | 3 Months Ended | |
Apr. 30, 2015 | Apr. 30, 2014 | |
Derivative [Line Items] | ||
Other Comprehensive Income, Other, Net of Tax | $115,482 | |
Derivative Financial Instruments, Assets [Member] | ||
Derivative [Line Items] | ||
Other Assets | $3,300,000 | $2,500,000 |
VAT_Tax_Issue_in_Brazil_and_Pr2
VAT Tax Issue in Brazil and Prior Period Adjustments (Details) | Apr. 30, 2015 | Apr. 30, 2015 | Apr. 30, 2015 | Apr. 30, 2015 | Apr. 30, 2015 | Apr. 30, 2015 | Apr. 30, 2015 | Apr. 30, 2015 | Apr. 30, 2015 | Apr. 30, 2015 |
USD ($) | BRL | VAT Claims, One [Member] | VAT Claims, One [Member] | VAT Claims, Two [Member] | VAT Claims, Two [Member] | VAT Claims, Three [Member] | VAT Claims, Three [Member] | VAT Claims, Four [Member] | VAT Claims, Four [Member] | |
USD ($) | BRL | USD ($) | BRL | USD ($) | BRL | USD ($) | BRL | |||
Vat Tax Issue In Brazil [Line Items] | ||||||||||
VAT Claims, Principal | 7,491,261 | 305,897 | 573,457 | 6,209,836 | 402,071 | |||||
VAT Claims, Interest And Penalty | 11,054,740 | 534,038 | 1,337,933 | 8,356,422 | 826,346 | |||||
VAT Claims, Total | $6,193,216 | 18,546,000 | $280,577 | 839,935 | $636,492 | 1,911,390 | $4,865,800 | 14,566,258 | $410,347 | 1,228,417 |
VAT Claims, Loss Possibility | Remote | Remote | Remote | Remote | Probable | Probable | Remote | Remote | ||
VAT Claims, Strategy | To await Judicial Process and negotiate judicial deposit | To await Judicial Process and negotiate judicial deposit | To await Judicial Process and negotiate judicial deposit | To await Judicial Process and negotiate judicial deposit | To await Judicial Process and negotiate judicial deposit | To await Judicial Process and negotiate judicial deposit | To await Judicial Process and negotiate judicial deposit | To await Judicial Process and negotiate judicial deposit | ||
VAT Claims, Collateral | New Land | New Land | Plant | Plant | - | - | New Land | New Land |
VAT_Tax_Issue_in_Brazil_and_Pr3
VAT Tax Issue in Brazil and Prior Period Adjustments (Details 1) | Apr. 30, 2015 | Apr. 30, 2015 |
In Millions, unless otherwise specified | USD ($) | BRL |
Vat Tax Issue In Brazil [Line Items] | ||
Long-term liabilities, Taxes payable | $2.10 | 6.2 |
VAT_Tax_Issue_in_Brazil_and_Pr4
VAT Tax Issue in Brazil and Prior Period Adjustments (Details Textual) | 1 Months Ended | 3 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | |||||||||||||||
Oct. 31, 2010 | Oct. 31, 2010 | 31-May-10 | 31-May-10 | Apr. 30, 2015 | Apr. 30, 2015 | Apr. 30, 2011 | Jan. 31, 2015 | Apr. 30, 2015 | Apr. 30, 2010 | Apr. 30, 2010 | Apr. 30, 2010 | Jan. 31, 2014 | Jan. 31, 2014 | Oct. 31, 2010 | Oct. 31, 2010 | Apr. 30, 2015 | Apr. 30, 2015 | Apr. 30, 2015 | Apr. 30, 2015 | ||
USD ($) | BRL | USD ($) | BRL | USD ($) | BRL | USD ($) | USD ($) | Discontinued Operations [Member] | Latest Tax Year [Member] | Tax Year 2010 [Member] | Tax Year 2015 [Member] | After State Amnesty Accepted [Member] | After State Amnesty Accepted [Member] | Claim 2007-2009 By State Of Bahia [Member] | Claim 2007-2009 By State Of Bahia [Member] | Claim December 2013 By State of Sao Paulo [Member] | Claim December 2013 By State of Sao Paulo [Member] | Maximum [Member] | Minimum [Member] | ||
USD ($) | BRL | USD ($) | USD ($) | USD ($) | BRL | USD ($) | BRL | USD ($) | BRL | ||||||||||||
Value Added Tax Favorable Adjustment | |||||||||||||||||||||
Value Added Tax Examination Claims Incurred In Period | $3,000,000 | 4,800,000 | $45,000 | ||||||||||||||||||
Value Added Tax Examination Penalties and Interest Expense | 3,500,000 | 5,600,000 | 200,000 | ||||||||||||||||||
Formal Judicial Process Period | 10 years | 5 years | |||||||||||||||||||
Value Added Tax Claims, Accepted Amnesty for Smaller Claim, Number of Periodic Payment | 120 | 120 | |||||||||||||||||||
Value Added Tax Claims, Accepted Amnesty for Smaller Claim, Periodic Payment | 14,000 | 42,000 | 1,500 | 4,500 | |||||||||||||||||
Value Added Tax Claims, Percentage of Abatement for Penalty and Interest | 80.00% | 80.00% | |||||||||||||||||||
Value Added Tax Claims Including Penalty And Interest | 75,000 | 172,000 | |||||||||||||||||||
Accrued Value Added Taxes Noncurrent | 130,000 | 60,000 | [1] | 2,074,371 | |||||||||||||||||
Value Added Tax Examination Income Tax Total | 6,500,000 | 10,400,000 | |||||||||||||||||||
Value Added Tax Claim Paid Amount | 1,900,000 | 3,500,000 | |||||||||||||||||||
Value Added Tax Credit Carry forward Amount | 1,100,000 | 2,100,000 | |||||||||||||||||||
Value Added Tax Judicial Tax Claim Amount | 5,100,000 | 15,400,000 | |||||||||||||||||||
Value Added Tax Fines And Penalties | 2,800,000 | 8,300,000 | |||||||||||||||||||
Value Added Tax Available For Credit | 1,100,000 | 3,400,000 | |||||||||||||||||||
Value Added Tax Fines And Penalties Defendable | 400,000 | 1,300,000 | |||||||||||||||||||
Value Added Tax Judicial deposit | 2,100,000 | 6,200,000 | |||||||||||||||||||
Value Added Tax Payable During Period | 4,900,000 | 14,600,000 | |||||||||||||||||||
Value Added Tax Judicial Tax Claim Percentage | 20.00% | 20.00% | |||||||||||||||||||
Other Tax Expense (Benefit) | 1,600,000 | ||||||||||||||||||||
Value Added Tax Credit | 3,400,000 | 1,900,000 | 1,300,000 | ||||||||||||||||||
Value Added Tax Favorable Adjustment | 700,000 | ||||||||||||||||||||
Loss Contingency, Opinion of Counsel | our attorney informs us that R$1.0 (US $0.3) million will be successfully defended based on a lapse of statute of limitations and R$0.3 (US $0.1) million based on state auditor misunderstanding | our attorney informs us that R$1.0 (US $0.3) million will be successfully defended based on a lapse of statute of limitations and R$0.3 (US $0.1) million based on state auditor misunderstanding | |||||||||||||||||||
Value Added Tax Claim Received | $2,100,000 | 6,200,000 | |||||||||||||||||||
[1] | Restated for discontinued operations. |
Brazil_Management_and_Share_Pu1
Brazil Management and Share Purchase Agreement-Arbitration Award and Settlement Agreement (Details Textual) (USD $) | 3 Months Ended | ||
Apr. 30, 2015 | Jan. 31, 2015 | ||
Brazil Management and Share Purchase Agreement-Arbitration Award and Settlement Agreement [Line Items] | |||
Estimated Litigation Liability, Current | $1,000,000 | $1,000,000 | [1] |
Estimated Litigation Liability, Noncurrent | 2,637,000 | 2,870,000 | [1] |
Former Officers [Member] | |||
Brazil Management and Share Purchase Agreement-Arbitration Award and Settlement Agreement [Line Items] | |||
Long-term Debt, Gross | 3,750,000 | ||
Debt Instrument, Frequency of Periodic Payment | quarterly | ||
Debt Instrument, Number of Periodic Payments | 15 installments | ||
Debt Instrument, Periodic Payment | 250,000 | ||
Debt Instrument, Maturity Date | 31-Dec-18 | ||
Estimated Litigation Liability, Current | 2,636,523 | ||
Estimated Litigation Liability, Noncurrent | 1,000,000 | ||
Interest Expense, Long-term Debt, Total | $127,832 | ||
[1] | Restated for discontinued operations. |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | Apr. 30, 2015 | Jan. 31, 2015 | |
In Thousands, unless otherwise specified | |||
Assets of discontinued operations: | |||
Cash | $12 | $53 | |
Accounts receivable | 622 | 888 | |
Inventory | 2,979 | 3,216 | |
Other current assets | 1,495 | 634 | |
Property/Equipment held for sale | 1,339 | 1,544 | |
Total assets of discontinued operations | 6,447 | 6,335 | |
Liabilities of discontinued operations: | |||
Accounts payable | 467 | 651 | |
Accrued compensation and benefits | 1,361 | 1,739 | |
Other accrued expenses | 1,901 | 1,163 | |
Short term borrowings | 630 | 688 | |
Other liabilities | 2,333 | 2,333 | |
Total liabilities of discontinued operations | $6,692 | $6,574 | [1] |
[1] | Restated for discontinued operations. |
Discontinued_Operations_Detail1
Discontinued Operations (Details 1) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 30, 2015 | Apr. 30, 2014 |
Net sales from discontinued operations | $444 | $1,749 |
Cost of goods sold from discontinued operations | 412 | 1,154 |
Gross profit from discontinued operations | 32 | 595 |
Operating expense from discontinued operations | 484 | 871 |
Operating loss from discontinued operations | -452 | -276 |
Other, net from discontinued operations | -479 | -78 |
Loss from discontinued operations before income tax | -931 | -354 |
Net loss from discontinued operations | ($931) | ($354) |
Discontinued_Operations_Detail2
Discontinued Operations (Details 2) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 30, 2015 | Apr. 30, 2014 |
Net cash used in operating activities | ($587) | ($570) |
Net cash used in investing activities | 0 | -2 |
Net cash provided by financing activities | 552 | 572 |
Net effect on cash of FX variations | -6 | 0 |
Net increase in cash and cash equivalents | -41 | 0 |
Cash and cash equivalents at beginning of year | 53 | 0 |
Cash and cash equivalents at end of year | $12 | $0 |
Discontinued_Operations_Detail3
Discontinued Operations (Details Textual) (Subsequent Event [Member], USD $) | 3 Months Ended | |
Apr. 30, 2015 | Apr. 29, 2015 | |
Subsequent Event [Member] | ||
Loans Receivable, Net | $1,900,000 | |
Legal Fees | 300,000 | |
Business Exit Costs | $2,200,000 |