Financing Arrangements (Details) € in Thousands, $ in Thousands | 3 Months Ended | 45 Months Ended | | | | | | | | | | |
May 31, 2017USD ($)Rate | May 31, 2016USD ($) | Apr. 01, 2020Rate | Feb. 28, 2017USD ($) | Apr. 26, 2016USD ($) | Jul. 20, 2015Rate | Jul. 06, 2015USD ($) | Feb. 28, 2014USD ($) | Jan. 09, 2014USD ($) | Jan. 03, 2013Rate | Jul. 15, 2012EUR (€) | Jan. 09, 2012Rate | Oct. 23, 2000EUR (€) |
Debt Instrument [Line Items] | | | | | | | | | | | | | | |
Long-term Debt | | $ 102,296 | | | $ 97,747 | | | | | | | | | |
Current portion of long-term debt | | (10,420) | | | (10,217) | | | | | | | | | |
Long-term Debt, Excluding Current Maturities | | 105,571 | | | 101,228 | | | | | | | | | |
Debt Instrument, Periodic Payment | | $ 938 | | | | | | | | | | | | |
Line of Credit Facility, Maximum Borrowing Capacity | | | | | | | | $ 9,995 | | | | | | |
Debt Instrument, Description of Variable Rate Basis | | 0.7 | | | | | | | | | | | | |
Amortization of Financing Costs | | $ 61 | $ 49 | | | | | | | | | | | |
Debt Issuance Costs, Gross | | | | | | $ 1,779 | | $ 332 | | | | | | |
Line of Credit Facility, Amount Outstanding | | 86,075 | | | | | | | | | | | | |
Line of Credit Facility, Remaining Borrowing Capacity | | $ 16,710 | | | | | | | | | | | | |
Debt Instrument, Basis Spread on Variable Rate | Rate | | 1.54% | | | | | | | | | | | | |
Debt Issuance Costs, Net | | $ 3,275 | | | 3,481 | | | | | | | | | |
Derivative, Fixed Interest Rate | Rate | | | | | | | 3.48% | | | | | | | |
Line of Credit Facility, Maximum Borrowing Capacity | | | | | | | | | | $ 125,000 | | | | |
Payments to Acquire Property, Plant, and Equipment | | $ 2,816 | 2,297 | | | | | | | | | | | |
Debt Instrument, Interest Rate at Period End | Rate | | 3.39% | | | | | | | | | | | | |
Mortgages [Member] | | | | | | | | | | | | | | |
Debt Instrument [Line Items] | | | | | | | | | | | | | | |
Accumulated Amortization, Deferred Finance Costs | | $ 8 | | | | | | | | | | | | |
Revolving Credit Facility [Member] | | | | | | | | | | | | | | |
Debt Instrument [Line Items] | | | | | | | | | | | | | | |
Accumulated Amortization, Deferred Finance Costs | | 198 | $ 196 | | | | | | | | | | | |
Debt Issuance Costs, Net | | 3,003 | | | | | | | | | | | | |
Long-term Debt [Member] | | | | | | | | | | | | | | |
Debt Instrument [Line Items] | | | | | | | | | | | | | | |
Line of Credit Facility, Amount Outstanding | | $ 11,250 | | | | | | | | | | | | |
Line of Credit Facility, Maximum Borrowing Capacity | | | | | | 15,000 | | | | | | | | |
Letter of Credit [Member] | | | | | | | | | | | | | | |
Debt Instrument [Line Items] | | | | | | | | | | | | | | |
Line of Credit Facility, Maximum Borrowing Capacity | | | | | | 15,000 | | | | 15,625 | | | | |
Revolving Credit Facility [Member] | | | | | | | | | | | | | | |
Debt Instrument [Line Items] | | | | | | | | | | | | | | |
Line of Credit Facility, Current Borrowing Capacity | | | | | | 140,000 | | | | | | | | |
Line of Credit Facility, Maximum Borrowing Capacity | | | | | | 175,000 | | | | 30,000 | | | | |
Loans [Member] | | | | | | | | | | | | | | |
Debt Instrument [Line Items] | | | | | | | | | | | | | | |
Line of Credit Facility, Maximum Borrowing Capacity | | | | | | $ 15,000 | | | | 6,250 | | | | |
United States of America, Dollars | Revolving Credit Facility [Member] | | | | | | | | | | | | | | |
Debt Instrument [Line Items] | | | | | | | | | | | | | | |
Line of Credit Facility, Maximum Borrowing Capacity | | | | | | | | | | $ 125,000 | | | | |
Corporate and Other [Member] | Mortgages [Member] | | | | | | | | | | | | | | |
Debt Instrument [Line Items] | | | | | | | | | | | | | | |
Debt Instrument, Interest Rate at Period End | Rate | | 2.25% | | | | | | | | | | | | |
Schwaiger [Member] | Mortgages [Member] | | | | | | | | | | | | | | |
Debt Instrument [Line Items] | | | | | | | | | | | | | | |
Debt Instrument, Interest Rate, Stated Percentage | Rate | | | | | | | | | | | | | 3.75% | |
Hirschmann [Member] | | | | | | | | | | | | | | |
Debt Instrument [Line Items] | | | | | | | | | | | | | | |
Debt Instrument, Basis Spread on Variable Rate | Rate | | 2.00% | | | | | | | | | | | | |
Line of Credit Facility, Maximum Borrowing Capacity | € | | | | | | | | | | | | € 8,000 | | |
Debt Instrument, Interest Rate at Period End | Rate | | 1.67% | | | | | | | | | | | | |
Audiovox Germany [Member] | Bank Loan Obligations [Member] | | | | | | | | | | | | | | |
Debt Instrument [Line Items] | | | | | | | | | | | | | | |
Long-term Debt | € | [1] | | | | | | | | | | | | | € 8,000 |
Portion of Accounts Receivable Eligible for Factoring | | | | | | | | | | | | | | 60.00% |
Debt Instrument, Basis Spread on Variable Rate | Rate | | 1.60% | | | | | | | | | | | | |
Debt Instrument, Interest Rate at Period End | Rate | | 1.27% | | | | | | | | | | | | |
Audiovox Germany [Member] | Mortgages [Member] | | | | | | | | | | | | | | |
Debt Instrument [Line Items] | | | | | | | | | | | | | | |
Debt Instrument, Interest Rate, Stated Percentage | Rate | | | | | | | | | | | 2.85% | | | |
Debt [Member] | | | | | | | | | | | | | | |
Debt Instrument [Line Items] | | | | | | | | | | | | | | |
Debt, Long-term and Short-term, Combined Amount | | $ 115,991 | | | 111,445 | | | | | | | | | |
Mortgages [Member] | Corporate and Other [Member] | | | | | | | | | | | | | | |
Debt Instrument [Line Items] | | | | | | | | | | | | | | |
Debt, Long-term and Short-term, Combined Amount | [2] | 8,988 | | | | | | | $ 9,113 | | | | | |
Mortgages [Member] | Schwaiger [Member] | | | | | | | | | | | | | | |
Debt Instrument [Line Items] | | | | | | | | | | | | | | |
Debt, Long-term and Short-term, Combined Amount | [2] | 614 | | | 644 | | | | | | | | | |
Mortgages [Member] | Audiovox Germany [Member] | | | | | | | | | | | | | | |
Debt Instrument [Line Items] | | | | | | | | | | | | | | |
Debt, Long-term and Short-term, Combined Amount | [3] | 3,890 | | | 3,875 | | | | | | | | | |
Bank Loan Obligations [Member] | Audiovox Germany [Member] | | | | | | | | | | | | | | |
Debt Instrument [Line Items] | | | | | | | | | | | | | | |
Debt, Long-term and Short-term, Combined Amount | [1] | 4,120 | | | 3,905 | | | | | | | | | |
Long-term Debt [Member] | Klipsch [Member] | | | | | | | | | | | | | | |
Debt Instrument [Line Items] | | | | | | | | | | | | | | |
Debt, Long-term and Short-term, Combined Amount | [4] | 57 | | | 113 | | | | | | | | | |
Line of Credit [Member] | Hirschmann [Member] | | | | | | | | | | | | | | |
Debt Instrument [Line Items] | | | | | | | | | | | | | | |
Debt, Long-term and Short-term, Combined Amount | [5] | $ 997 | | | 1,002 | | | | | | | | | |
London Interbank Offered Rate (LIBOR) [Member] | Long-term Debt [Member] | | | | | | | | | | | | | | |
Debt Instrument [Line Items] | | | | | | | | | | | | | | |
Debt Instrument, Basis Spread on Variable Rate | Rate | | | | 4.25% | | | | | | | | | | |
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | | | | | | | | | | | | | | |
Debt Instrument [Line Items] | | | | | | | | | | | | | | |
Debt Instrument, Basis Spread on Variable Rate | Rate | | 1.75% | | | | | | | | | | | | |
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | Long-term Debt [Member] | | | | | | | | | | | | | | |
Debt Instrument [Line Items] | | | | | | | | | | | | | | |
Debt Instrument, Basis Spread on Variable Rate | Rate | | | | 0.00% | | | | | | | | | | |
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | | | | | | | | | | | | | | |
Debt Instrument [Line Items] | | | | | | | | | | | | | | |
Debt Instrument, Basis Spread on Variable Rate | Rate | | 2.25% | | | | | | | | | | | | |
Base Rate [Member] | Long-term Debt [Member] | | | | | | | | | | | | | | |
Debt Instrument [Line Items] | | | | | | | | | | | | | | |
Debt Instrument, Basis Spread on Variable Rate | Rate | | | | 3.25% | | | | | | | | | | |
Base Rate [Member] | Minimum [Member] | | | | | | | | | | | | | | |
Debt Instrument [Line Items] | | | | | | | | | | | | | | |
Debt Instrument, Basis Spread on Variable Rate | Rate | | 0.75% | | | | | | | | | | | | |
Base Rate [Member] | Maximum [Member] | | | | | | | | | | | | | | |
Debt Instrument [Line Items] | | | | | | | | | | | | | | |
Debt Instrument, Basis Spread on Variable Rate | Rate | | 1.25% | | | | | | | | | | | | |
Corporate and Other [Member] | Revolving Credit Facility [Member] | | | | | | | | | | | | | | |
Debt Instrument [Line Items] | | | | | | | | | | | | | | |
Debt, Long-term and Short-term, Combined Amount | [6] | $ 97,325 | | | $ 92,793 | | | | | | | | | |
| |
[1] | (b) Florida Mortgage On July 6, 2015, VOXX HQ LLC, the Company’s wholly owned subsidiary, closed on a $9,995 industrial development revenue tax exempt bond under a loan agreement in favor of the Orange County Industrial Development Authority (the “Authority”) to finance the construction of the Company's manufacturing facility and executive offices in Lake Nona, Florida. Wells Fargo Bank, N.A. ("Wells Fargo") was the purchaser of the bond and U.S. Bank National Association is the trustee under an Indenture of Trust with the Authority. Voxx borrowed the proceeds of the bond purchase from the Authority during construction as a revolving loan, which converted to a permanent mortgage upon completion of the facility in January 2016 (the "Florida Mortgage"). The Company makes principal and interest payments to Wells Fargo, which began March 1, 2016 and will continue through March of 2026. The Florida Mortgage bears interest at 70% of 1-month LIBOR plus 1.54% (2.25% at May 31, 2017) and is secured by a first mortgage on the property, a collateral assignment of leases and rents and a guaranty by the Company. The financial covenants of the Florida Mortgage are as defined in the Company’s Amended Credit Facility with Wells Fargo dated April 26, 2016. The Company incurred debt financing costs totaling approximately $332 as a result of obtaining the Florida Mortgage, which are recorded as deferred financing costs and included in Long-term debt as a contra-liability balance on the accompanying Consolidated Balance Sheet and are being amortized through Interest and bank charges in the Consolidated Statement of Operations and Comprehensive Income (Loss) over the ten year term of the Florida Mortgage. The Company amortized $8 of these costs during both of the three months ended May 31, 2017 and 2016, respectively. On July 20, 2015, the Company entered into an interest rate swap agreement in order to hedge interest rate exposure related to the Florida Mortgage and pays a fixed rate of 3.48% under the swap agreement (See Note 4). | |
[2] | (d) Schwaiger Mortgage In January 2012, the Company's Schwaiger subsidiary purchased a building, entering into a mortgage note payable. The mortgage note bears interest at 3.75% and will be fully paid by December 2019. | |
[3] | (f) Voxx Germany MortgageThis balance represents a mortgage on the land and building housing Voxx Germany's headquarters in Pulheim, Germany, which was entered into in January 2013. The mortgage bears interest at 2.85%, payable in twenty-six quarterly installments through June 2019. | |
[4] | (e) Klipsch NotesThis balance represents a mortgage on a facility included in the assets acquired in connection with the Klipsch acquisition on March 1, 2011 and assumed by Voxx. The balance of this note will be fully paid by the end of Fiscal 2018. | |
[5] | Hirschmann Line of CreditIn December 2014, Hirschmann entered into an agreement for a €8,000 working capital line of credit with a financial institution. The line of credit is payable on demand and is mutually cancelable. The rate of interest is the three month Euribor plus 2% (1.67% at May 31, 2017). Hirschmann and Voxx Germany are joint and severally liable for the line of credit balance, which is also guaranteed by VOXX International Corporation. | |
[6] | (a) Domestic Credit Facility From March 1, 2016 through April 25, 2016, the Company had a senior secured credit facility (the "Credit Facility") with an aggregate availability of $125,000, consisting of a revolving credit facility of $125,000, with a $30,000 multicurrency revolving credit facility sublimit, a $15,625 sublimit for Letters of Credit and a $6,250 sublimit for Swingline Loans. This Credit Facility was due on January 9, 2019; however, it was subject to acceleration upon the occurrence of an Event of Default (as defined in the Credit Agreement).On April 26, 2016, the Company amended and restated the Credit Facility ("Amended Credit Facility"). The Amended Credit Facility provides for a revolving credit facility with committed availability of up to $140,000, which may be increased, at the option of the Company, up to a maximum of $175,000, and a term loan in the amount of $15,000. The Amended Credit Facility also includes a $15,000 sublimit for letters of credit and a $15,000 sublimit for swingline loans. The availability under the revolving credit line within the Amended Credit Facility is subject to a borrowing base, which is based on eligible accounts receivable, eligible inventory and certain real estate, subject to reserves as determined by the lender, and is also limited by amounts outstanding under the Florida Mortgage (see Note 15(b)). As of May 31, 2017, $86,075 was outstanding under the revolving credit facility. The remaining availability under the revolving credit line of the Amended Credit Facility was $16,710 as of May 31, 2017.The balance outstanding on the term loan at May 31, 2017 was $11,250. The term loan is repayable in consecutive quarterly installments of $938 through April 1, 2020. All other amounts outstanding under the Amended Credit Facility will mature and become due on April 26, 2021; however, it is subject to acceleration upon the occurrence of an Event of Default (as defined in the Amended Credit Agreement). The Company may prepay any amounts outstanding at any time, subject to payment of certain breakage and redeployment costs relating to LIBOR Rate Loans, provided that the term loan shall not be voluntarily prepaid except as set forth in the agreement. The commitments under the Amended Credit Facility may be irrevocably reduced at any time, without premium or penalty as set forth in the agreement.Generally, the Company may designate specific borrowings under the Amended Credit Facility as either Base Rate Loans or LIBOR Rate Loans, except that swingline loans may only be designated as Base Rate Loans. Loans designated as LIBOR Rate Loans bear interest at a rate equal to the then applicable LIBOR rate plus a range of 1.75 - 2.25%. Loans designated as Base Rate loans bear interest at a rate equal to the applicable margin for Base Rate Loans of 0.75 - 1.25% as defined in the agreement. Amounts outstanding in respect of the term loan bear interest at a rate equal to either (as selected by the Company pursuant to the agreement) (a) the then-applicable LIBOR Rate (not to be less than 0.00%) plus 4.25% or (b) the then-applicable Base Rate plus 3.25%. As of May 31, 2017, the weighted average interest rate on the facility was 3.39%.The Amended Credit Facility requires compliance with a financial covenant calculated as of the last day of each month, consisting of a Fixed Charge Coverage Ratio. The Amended Credit Facility also contains covenants that limit the ability of the loan parties and certain of their subsidiaries which are not loan parties to, among other things: (i) incur additional indebtedness; (ii) incur liens; (iii) merge, consolidate or dispose of a substantial portion of their business; (iv) transfer or dispose of assets; (v) change their name, organizational identification number, state or province of organization or organizational identity; (vi) make any material change in their nature of business; (vii) prepay or otherwise acquire indebtedness; (viii) cause any Change of Control; (ix) make any Restricted Junior Payment; (x) change their fiscal year or method of accounting; (xi) make advances, loans or investments; (xii) enter into or permit any transaction with an affiliate of any borrower or any of their subsidiaries; (xiii) use proceeds for certain items; (xiv) issue or sell any of their stock; (xv) consign or sell any of their inventory on certain terms. In addition, if excess availability under the Amended Credit Facility were to fall below certain specified levels, as defined in the agreement, the lenders would have the right to assume dominion and control over the Company's cash. As of May 31, 2017, the Company was in compliance with this cash dominion covenant.The Obligations under the loan documents are secured by a general lien on and security interest in substantially all of the assets of the borrowers and certain of the guarantors, including accounts receivable, equipment, real estate, general intangibles and inventory. The Company has guaranteed the obligations of the borrowers under the Amended Credit Agreement.Charges incurred on the unused portion of the Amended Credit Facility during the three months ended May 31, 2017 totaled $61, compared to $49 during the three months ended May 31, 2016. These charges are included within Interest and Bank Charges on the Consolidated Statement of Operations and Comprehensive Income (Loss). The Company accounted for the latest amendment as a modification of debt and added the costs incurred to amend the agreement, totaling $1,779, to the remaining financing costs related to the previous credit facility. These deferred financing costs are included in Long-term debt on the accompanying Consolidated Balance Sheets as a contra-liability balance, and are amortized through Interest and bank charges in the Consolidated Statements of Operations and Comprehensive Income (Loss) over the five year term of the Amended Credit Facility. During the three months ended May 31, 2017, the Company amortized $198 of these costs, compared to $196 for the three months ended May 31, 2016. The net unamortized balance of these debt issuance costs as of May 31, 2017 was $3,003. | |