Document and Entity Information
Document and Entity Information Document - shares | 3 Months Ended | |
May 31, 2018 | Jul. 09, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | VOXX INTERNATIONAL CORPORATION | |
Entity Central Index Key | 807,707 | |
Current Fiscal Year End Date | --02-28 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | May 31, 2018 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 24,199,054 |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | May 31, 2018 | Feb. 28, 2018 |
Stockholders' Equity: | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Current assets: | ||
Cash and cash equivalents | $ 49,827 | $ 51,740 |
Accounts receivable, net | 65,608 | 81,116 |
Inventory, net | 118,344 | 117,992 |
Nontrade Receivables | 1,717 | 493 |
Prepaid expenses and other current assets | 17,228 | 14,007 |
Income tax receivable | 646 | 511 |
Total current assets | 253,370 | 265,859 |
Long-term Investments | 3,373 | 4,167 |
Equity investments | 22,227 | 21,857 |
Property, Plant and Equipment, Net | 63,835 | 65,259 |
Goodwill | 54,785 | 54,785 |
Intangible Assets, Net | 148,275 | 150,320 |
Deferred income taxes | 24 | 24 |
Other assets | 15,050 | 13,373 |
Total assets | 560,939 | 575,644 |
Current liabilities: | ||
Accounts payable | 34,357 | 34,700 |
Accrued expenses and other current liabilities | 32,660 | 36,350 |
Income taxes payable | 317 | 2,587 |
Accrued Marketing Costs, Current | 10,854 | 14,020 |
Current portion of long-term debt | 8,010 | 7,730 |
Total current liabilities | 86,198 | 95,387 |
Long-term Debt | 8,153 | 8,476 |
Capital lease obligation | 852 | 699 |
Deferred Compensation Liability, Classified, Noncurrent | 2,769 | 3,369 |
Other tax liabilities | 2,163 | 2,191 |
Deferred tax liabilities | 11,579 | 12,217 |
Other long-term liabilities | 3,085 | 3,187 |
Total liabilities | 114,799 | 125,526 |
Preferred stock: | ||
Preferred stock | 0 | 0 |
Common stock: | ||
Paid-in capital | 296,502 | 296,395 |
Retained earnings | 193,734 | 194,673 |
Stockholders' Equity Attributable to Noncontrolling Interest | (7,444) | (5,830) |
Accumulated other comprehensive loss | 15,740 | (14,222) |
Treasury stock | (21,176) | (21,176) |
Total stockholders' equity | 453,584 | 455,948 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 446,140 | 450,118 |
Total liabilities and stockholders' equity | $ 560,939 | $ 575,644 |
Preferred stock, shares authorized | 1,500,000 | 1,500,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Treasury stock, shares | 2,168,094 | 2,168,094 |
Common Class A [Member] | ||
Common stock: | ||
Common Stock | $ 242 | $ 256 |
Class A Common stock, par value | $ 0.01 | $ 0.01 |
Class A Common stock, shares authorized | 60,000,000 | 60,000,000 |
Class A Common stock, shares issued | 24,106,194 | 24,106,194 |
Class A Common stock, shares outstanding | 21,938,100 | 21,938,100 |
Common Class B [Member] | ||
Common stock: | ||
Common Stock | $ 22 | $ 22 |
Class A Common stock, par value | $ 0.01 | $ 0.01 |
Class A Common stock, shares authorized | 10,000,000 | 10,000,000 |
Class A Common stock, shares issued | 2,260,954 | 2,260,954 |
Class A Common stock, shares outstanding | 2,260,954 | 2,260,954 |
Statement of Operations
Statement of Operations - USD ($) $ in Thousands | 3 Months Ended | |
May 31, 2018 | May 31, 2017 | |
Earnings Per Share, Basic | $ (0.04) | $ (0.13) |
Revenue, Net | $ 100,855 | $ 114,823 |
Cost of Goods Sold | 73,178 | 84,679 |
Gross Profit | 27,677 | 30,144 |
Operating expenses: | ||
Selling | 10,694 | 12,409 |
General and administrative | 16,112 | 20,197 |
Engineering and technical support | 5,911 | 6,654 |
Prepaid expenses and other current assets | 17,228 | |
Total operating expenses | 32,717 | 39,260 |
Operating Income (Loss) | (5,040) | (9,116) |
Other (expense) income: | ||
Interest and bank charges | (1,100) | (1,792) |
Equity in income of equity investees | 1,814 | 1,803 |
Other, net | 661 | (1,007) |
Total other (expense) income, net | 1,375 | (996) |
Income (loss) before income taxes | (3,665) | (10,112) |
Income Tax Expense (Benefit) | (1,113) | (7,428) |
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | (2,552) | (2,684) |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (2,552) | (4,906) |
Net Income (Loss) Attributable to Noncontrolling Interest | (1,613) | (1,875) |
Net income (loss) attributable to Voxx International Corporation | (939) | (3,031) |
Other comprehensive income (loss): | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | (2,020) | 7,359 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | 442 | (1,052) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | 36 | (120) |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | 24 | (4) |
Other Comprehensive Income (Loss), Net of Tax | (1,518) | 6,183 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ (2,457) | $ 3,152 |
Income (Loss) from Continuing Operations, Per Basic Share | $ (0.04) | $ (0.03) |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic Share | 0 | (0.09) |
Income (Loss) from Continuing Operations, Per Diluted Share | (0.04) | (0.03) |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Diluted Share | 0 | $ (0.09) |
Earnings Per Share, Diluted | $ (0.04) | |
Weighted Average Number of Shares Outstanding, Basic | 24,316,103 | 24,160,324 |
Weighted Average Number Diluted Shares Outstanding Adjustment | 0 | 0 |
Weighted Average Number of Shares Outstanding, Diluted | 24,316,103 | 24,160,324 |
Discontinued Operation, Tax Effect of Discontinued Operation | $ 3,366 | |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | $ 0 | $ (2,222) |
Statement of Cash Flows
Statement of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
May 31, 2018 | May 31, 2017 | |
Disposal Group, Including Discontinued Operation, Cash and Cash Equivalents | $ 5,085 | |
Cash flows from operating activities: | ||
Net income | $ (2,552) | (4,906) |
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | (2,552) | (2,684) |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | 0 | (2,222) |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Depreciation, Amortization and Accretion, Net | 2,962 | 4,445 |
Depreciation and amortization | 2,962 | 3,039 |
Amortization of debt discount | 206 | 205 |
Bad debt expense | 95 | 96 |
Interest and Debt Expense | 1,100 | 1,792 |
Interest Income (Expense), Nonoperating, Net | 206 | 15 |
Loss on forward contracts | 244 | |
Equity in income of equity investees | (1,814) | (1,803) |
Distribution of income from equity investees | 1,444 | 2,515 |
Deferred Income Tax Expense | (716) | (2,181) |
Non-cash compensation adjustment | (600) | (45) |
Non-cash stock based compensation expense | 107 | 142 |
Gain on sale of property, plant and equipment | (1) | (10) |
Changes in operating assets and liabilities (net of assets and liabilities acquired): | ||
Accounts receivable | 14,606 | 2,302 |
Inventory | (1,531) | (7,231) |
Receivables from vendors | (1,226) | (52) |
Prepaid expenses and other | 8 | (9,588) |
Investment securities-trading | 788 | 627 |
Accounts payable, accrued expenses, accrued sales incentives and other liabilities | (6,385) | 18,111 |
Income taxes payable | (2,350) | (1,901) |
Net cash provided by operating activities | 3,285 | 427 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (179) | (2,816) |
Proceeds from sale of property, plant and equipment | 1 | 10 |
Payments to Acquire Notes Receivable | (1,700) | 0 |
Purchase of acquired business | 0 | (1,814) |
Net cash used in investing activities | (1,878) | (4,620) |
Cash flows from financing activities: | ||
Principal payments on capital lease obligation | (86) | (172) |
Repayment of bank obligations | (679) | (15,330) |
Borrowings on bank obligations | 911 | 19,392 |
Net cash (used in) provided by financing activities | 146 | 3,890 |
Effect of exchange rate changes on cash | (3,466) | 563 |
Net increase (decrease) in cash and cash equivalents | (1,913) | 260 |
Cash and cash equivalents at beginning of period | 51,740 | |
Cash and cash equivalents at end of period | 49,827 | |
Cash and Cash Equivalents, at Carrying Value, Including Discontinued Operations | $ 49,827 | 8,060 |
Designated as Hedging Instrument [Member] | ||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Loss on forward contracts | $ (299) |
Basis of Presntation Level 1 (N
Basis of Presntation Level 1 (Notes) | 3 Months Ended |
May 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Significant Accounting Policies [Text Block] | Basis of Presentation The accompanying unaudited interim consolidated financial statements of VOXX International Corporation and Subsidiaries ("Voxx" or the "Company") have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission and in accordance with accounting principles generally accepted in the United States of America and include all adjustments (consisting of normal recurring adjustments), which, in the opinion of management, are necessary to present fairly the consolidated financial position, results of operations and cash flows for all periods presented. The results of operations are not necessarily indicative of the results to be expected for the full fiscal year or any interim period. These unaudited consolidated financial statements do not include all disclosures associated with consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America. Accordingly, these statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto contained in the Company's Form 10-K for the fiscal year ended February 28, 2018 . The Company's financial statements for the prior periods presented herein have been recast to reflect a certain business that was classified as discontinued operations during the second quarter of Fiscal 2018. See Note 2 for additional information. Net loss per share amounts for continuing and discontinued operations are computed independently. As a result, the sum of the per share amounts may not equal the total. We operate in three reportable segments, Automotive, Premium Audio and Consumer Accessories. See Note 22 for the Company's segment reporting disclosures. |
Acquisitions Acquisitions Level
Acquisitions Acquisitions Level 1 (Notes) | 3 Months Ended |
May 31, 2018 | |
Business Combinations [Abstract] | |
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | Acquisitions and Dispositions Rosen Electronics LLC On April 18, 2017, Voxx acquired certain assets and assumed certain liabilities of Rosen Electronics LLC for cash consideration of $1,814 . In addition, the Company agreed to pay a 2% fee related to future net sales of Rosen products for three years, which resulted in contingent consideration of $530 . Rosen's results of operations have been included in the consolidated financial statements from the date of acquisition. The purpose of this acquisition was to increase the Company's market share and strengthen its intellectual property related to the rear seat entertainment market. The following summarizes the final allocation of the purchase price for the fair value of the assets acquired and liabilities assumed at the date of acquisition: April 18, 2017 Assets acquired: Inventory $ 1,444 Goodwill 880 Intangible assets including trademarks and customer relationships 520 Total assets acquired 2,844 Liabilities assumed: Warranty accrual 500 Total 500 Total purchase price $ 2,344 Hirschmann Car Communication GmbH On August 31, 2017 (the "Closing Date"), the Company completed its sale of Hirschmann Car Communication GmbH and its subsidiaries (collectively, “Hirschmann”) to a subsidiary of TE Connectivity Ltd ("TE"). The consideration received by the Company was € 148,500 . The purchase price, at the exchange rate as of the close of business on the Closing Date approximated $177,000 , and is subject to adjustment based upon the final working capital. VOXX International (Germany) GmbH, the Company's German wholly-owned subsidiary, was the selling entity in this transaction. The Hirschmann subsidiary group, which was included within the Automotive segment, qualified to be presented as a discontinued operation in accordance with ASC 205-20 beginning in the Company's Fiscal 2018 second quarter ending August 31, 2017. Voxx will not have any continuing involvement in the Hirschmann business subsequent to the Closing Date. Hirschmann and TE will not be related parties of the Company after the deconsolidation of Hirschmann. The following table presents a reconciliation of the major financial lines constituting the results of operations for discontinued operations to the net income from discontinued operations, net of tax, presented separately in the Unaudited Consolidated Statements of Operations and Comprehensive (Loss) Income : Three Months Ended 2017 Net sales $ 44,279 Cost of sales 30,685 Gross profit 13,594 Operating expenses: Selling 1,382 General and administrative 6,996 Engineering and technical support 3,938 Total operating expenses 12,316 Operating income of discontinued operations 1,278 Other (expense) income: Interest and bank charges (a) (122 ) Other, net (12 ) Total other expense of discontinued operations, net (134 ) Total income from discontinued operations before taxes 1,144 Income tax expense on discontinued operations 3,366 Loss from discontinued operations, net of taxes $ (2,222 ) Loss per share - basic $ (0.09 ) Loss per share - diluted $ (0.09 ) (a) Includes an allocation of consolidated interest expense and interest expense directly related to debt assumed by the buyer. The allocation of consolidated interest expense was based upon the ratio of net assets of the discontinued operations to that of the Consolidated Company. The following table presents supplemental cash flow information of the discontinued operation: Three Months Ended 2017 Operating activities: Depreciation and amortization expense $ 1,406 Stock-based compensation expense 23 Investing activities: Capital expenditures $ 1,222 Non-cash investing and financing activities: Capital expenditures funded by long-term obligations $ 1,802 |
Net Income Per Common Share Lev
Net Income Per Common Share Level 1 (Notes) | 3 Months Ended |
May 31, 2018 | |
Net Income Per Common Share [Abstract] | |
Earnings Per Share [Text Block] | Net (Loss) Income Per Common Share Basic net (loss) income per common share from continuing operations, net of non-controlling interest, is based upon the weighted-average common shares outstanding during the period. Diluted net (loss) income per common share from continuing operations, net of non-controlling interest reflects the potential dilution that would occur if common stock equivalent securities or other contracts to issue common stock were exercised or converted into common stock. There are no reconciling items which impact the numerator of basic and diluted net (loss) income common share. A reconciliation between the denominator of basic and diluted net (loss) income per common share is as follows: Three Months Ended 2018 2017 Weighted-average common shares outstanding 24,316,103 24,160,324 Effect of dilutive securities: Stock options, warrants and restricted stock — — Weighted-average common shares and potential common shares outstanding 24,316,103 24,160,324 Restricted stock, stock options and warrants totaling 439,299 and 553,693 for the three months ended May 31, 2018 and 2017 , respectively, were not included in the net (loss) income per diluted share calculation because the exercise price of these stock options and warrants was greater than the average market price of the Company’s common stock during these periods, or the inclusion of these components would have been anti-dilutive. |
Fair Value Measurements Level 1
Fair Value Measurements Level 1 (Notes) | 3 Months Ended |
May 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Fair Value Measurements and Derivatives The Company applies the authoritative guidance on “Fair Value Measurements," which among other things, requires enhanced disclosures about investments that are measured and reported at fair value. This guidance establishes a hierarchal disclosure framework that prioritizes and ranks the level of market price observability used in measuring investments at fair value. Market price observability is impacted by a number of factors, including the type of investment and the characteristics specific to the investment. Investments with readily available active quoted prices, or for which fair value can be measured from actively quoted prices, generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. Investments measured and reported at fair value are classified and disclosed in one of the following categories: Level 1 - Quoted market prices in active markets for identical assets or liabilities. Level 2 - Inputs other than Level 1 inputs that are either directly or indirectly observable. Level 3 - Unobservable inputs developed using the Company's estimates and assumptions, which reflect those that market participants would use. The following table presents assets measured at fair value on a recurring basis at May 31, 2018 : Fair Value Measurements at Reporting Date Using Total Level 1 Level 2 Cash and cash equivalents: Cash and money market funds $ 49,827 $ 49,827 $ — Derivatives Designated for hedging $ 109 $ — $ 109 Investment securities: Mutual funds $ 2,833 $ 2,833 $ — Investment held at cost, less impairment (a) 540 — — Total investment securities $ 3,373 $ 2,833 $ — The following table presents assets and liabilities measured at fair value on a recurring basis at February 28, 2018 : Fair Value Measurements at Reporting Date Using Total Level 1 Level 2 Cash and cash equivalents: Cash and money market funds $ 51,740 $ 51,740 $ — Derivatives Designated for hedging $ (262 ) $ — $ (262 ) Investment securities: Trading securities $ 3,620 $ 3,620 $ — Other investment at cost (a) 547 — — Total investment securities $ 4,167 $ 3,620 $ — (a) This balance represents an investment in a non-controlled corporation held at cost, less impairment (see Note 4). The fair value of this investment would be based upon Level 3 inputs. The carrying amount of the Company's accounts receivable, short-term debt, accounts payable, accrued expenses, bank obligations and long-term debt approximates fair value because of (i) the short-term nature of the financial instrument; (ii) the interest rate on the financial instrument being reset every quarter to reflect current market rates; or (iii) the stated or implicit interest rate approximates the current market rates or are not materially different from market rates. Derivative Instruments The Company's derivative instruments include forward foreign currency contracts utilized to hedge a portion of its foreign currency inventory purchases. The forward foreign currency derivatives qualifying for hedge accounting are designated as cash flow hedges and valued using observable forward rates for the same or similar instruments (Level 2). The duration of open forward foreign currency contracts ranges from 1 month - 9 months and are classified in the balance sheet according to their terms. The Company also has an interest rate swap agreement as of May 31, 2018 that hedges interest rate exposure related to the forecasted outstanding balance of its Florida Mortgage, with monthly payments due through March 2026. The swap agreement locks the interest rate on the debt at 3.48% (inclusive of credit spread) through the maturity date of the loan. Interest rate swap agreements qualifying for hedge accounting are designated as cash flow hedges and valued based on a comparison of the change in fair value of the actual swap contracts designated as the hedging instruments and the change in fair value of a hypothetical swap contract (Level 2). We calculate the fair value of interest rate swap agreements quarterly based on the quoted market price for the same or similar financial instruments. Interest rate swaps are classified in the balance sheet as either assets or liabilities based on the fair value of the instruments at the end of the period. It is the Company's policy to enter into derivative instrument contracts with terms that coincide with the underlying exposure being hedged. As such, the Company's derivative instruments are expected to be highly effective. Hedge ineffectiveness, if any, is recognized as incurred through other income (expense) in the Company's Unaudited Consolidated Statements of Operations and Comprehensive (Loss) Income and amounted to $33 for the three months ended May 31, 2018 and $(43) for the three months ended May 31, 2017 . Financial Statement Classification The following table discloses the fair value as of May 31, 2018 and February 28, 2018 of derivative instruments: Derivative Assets and Liabilities Fair Value Account May 31, 2018 February 28, 2018 Designated derivative instruments Foreign currency contracts Prepaid expenses and other current assets $ 133 $ — Accrued expenses and other current liabilities — (227 ) Interest rate swap agreements Other long-term liabilities (24 ) (35 ) Total derivatives $ 109 $ (262 ) Cash flow hedges During Fiscal 2018, the Company entered into forward foreign currency contracts, which have a current outstanding notional value of $7,200 and are designated as cash flow hedges at May 31, 2018 . The current outstanding notional value of the Company's interest rate swap at May 31, 2018 is $8,483 . For cash flow hedges, the effective portion of the gain or loss is reported as a component of Other Comprehensive Income (Loss) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Activity related to cash flow hedges pertaining to continuing operations recorded during the three months ended May 31, 2018 and 2017 was as follows: Three months ended May 31, 2018 Pretax Gain(Loss) Recognized in Other Comprehensive Income Pretax Gain (Loss) Reclassified from Accumulated Other Comprehensive Income Gain (Loss)for Ineffectiveness in Other Income Cash flow hedges Foreign currency contracts $ 366 $ (235 ) $ 33 Interest rate swaps 11 — — Three months ended May 31, 2017 Pretax Gain(Loss) Recognized in Other Comprehensive Income Pretax Gain (Loss) Reclassified from Accumulated Other Comprehensive Income Gain (Loss)for Ineffectiveness in Other Income Cash flow hedges Foreign currency contracts $ (733 ) $ 274 $ (43 ) Interest rate swaps (44 ) — — The net income (loss) recognized in Other Comprehensive Income (Loss) for foreign currency contracts is expected to be recognized in cost of sales within the next twelve months . No amounts were excluded from the assessment of hedge effectiveness during the respective periods. As of May 31, 2018 , no foreign currency contracts originally designated for hedge accounting were de-designated or terminated. |
Investment Securities Level 1 (
Investment Securities Level 1 (Notes) | 3 Months Ended |
May 31, 2018 | |
Investment Securities [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | Investment Securities As of May 31, 2018 , and February 28, 2018 , the Company had the following investments: May 31, 2018 Carrying Value Investment Securities Marketable Equity Securities Mutual funds $ 2,833 Total Marketable Equity Securities 2,833 Investment Held at Cost, Less Impairment 540 Total Investment Securities $ 3,373 February 28, 2018 Cost Basis Unrealized Holding Gain/(Loss) Fair Value Investment Securities Marketable Equity Securities Trading Mutual funds $ 3,620 $ — $ 3,620 Total Marketable Securities 3,620 — 3,620 Other Long-Term Investment at Cost 547 — 547 Total Investment Securities $ 4,167 $ — $ 4,167 Long-Term Investments Equity Securities As required, in the first quarter of Fiscal 2019 the Company adopted ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities” ("ASU 2016-01"), which requires changes to the accounting for financial instruments that affect the Company’s equity investments and the presentation and disclosure for such instruments. Marketable equity securities previously classified as available-for-sale equity investments are now measured and recorded at fair value with changes in fair value recorded in the consolidated statement of operations. The impact of adopting ASU 2016-01 resulted in a cumulative effect adjustment of $24 , which was recorded in other income (expense) in the Unaudited Consolidated Statements of Operations and Comprehensive (Loss) Income for the three months ended May 31, 2018 , rather than in retained earnings, as it was not considered material to the Company's consolidated financial statements for the period. Mutual Funds The Company’s mutual funds are held in connection with its deferred compensation plan. Changes in the carrying value of these securities are offset by changes in the corresponding deferred compensation liability. In determining whether equity securities are other than temporarily impaired ("OTTI"), the Company considers its intent and ability to hold a security for a period of time sufficient to allow for the recovery of cost, along with factors including the length of time each security had been in an unrealized loss position, the extent of the decline and the near-term prospect for recovery. Additionally, on a quarterly basis, the Company is required to make a qualitative assessment of whether the investment is impaired. No impairment losses were incurred by the Company during the three months ended May 31, 2018 or 2017 . Additionally, upon adoption of ASU 2016-01, changes in fair value of equity securities are now recorded within the Consolidated Statements of Operations, and as such, OTTI considerations are no longer made with respect to equity securities. Investment Held at Cost, Less Impairment The Company's investment held at cost, less impairment, represents an investment in Fathom Systems Inc. ("Fathom"), a non-controlled corporation. On July 31, 2017 , RxNetworks, a Canadian company in which Voxx held a cost method investment consisting of shares of the investee's preferred stock, was sold to a third party. In consideration for its holdings in RxNetworks on July 31, 2017, Voxx received cash, as well as a proportionate share of the value (consisting of preferred stock) in Fathom, a newly formed entity, formerly a subsidiary of RxNetworks. On March 1, 2018, the Company adopted ASU No. 2016-01. This guidance requires equity investments to be measured at fair value with changes in fair value recognized in net income. Since it does not have a readily determinable market value, the Company has elected to measure its investment in Fathom at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment. No adjustments have been made to the value of the Company’s investment in Fathom for the three months ended May 31, 2018 either due to impairment or based on observable price changes. The Company monitors any events or changes in circumstances that may have a significant adverse effect on the fair value of this investment and makes any necessary adjustments. As of May 31, 2018 , the Company's investment in Fathom totaled $540 , or 8.1% of the outstanding shares of this company. During Fiscal 2018, the Company had an investment in 360fly, Inc., consisting of shares of the investee's preferred stock. The Company also issued a total of five senior secured notes to 360fly, Inc. during the fiscal year. One of the notes issued to the investee on February 28, 2018 was issued in the amount of, and in exchange for, the outstanding equity investment held by the Company on that date and as a result of this loan, all of the preferred stock shares of 360fly, Inc. owned by Voxx were canceled and the Company had no remaining investment in the equity of 360fly, Inc. as of May 31, 2018 or February 28, 2018 . Interest on all of the notes accrues at 8% . The notes are due on August 31, 2019 and are convertible into equity at the option of the Company only. The total outstanding balance of the notes receivable from 360fly, Inc. at May 31, 2018 and February 28, 2018 , net of allowances, is $12,588 and $10,888 , respectively, and is included in other assets on the Consolidated Balance Sheet. |
Other Comprehensive Income Leve
Other Comprehensive Income Level 1 (Notes) | 3 Months Ended |
May 31, 2018 | |
Other Comprehensive Income [Abstract] | |
Other Comprehensive Income [Text Block] | Accumulated Other Comprehensive (Loss) Income The Company’s accumulated other comprehensive (loss) income consists of the following: Foreign Currency Translation (Losses) Gains Unrealized (losses) gains on investments, net of tax (a) Pension plan adjustments, net of tax Derivatives designated in a hedging relationship, net of tax Total Balance at February 28, 2018 $ (13,027 ) $ (24 ) $ (786 ) $ (385 ) $ (14,222 ) Other comprehensive (loss) income before reclassifications (2,020 ) — 36 280 (1,704 ) Reclassified from accumulated other comprehensive income (loss) — 24 — 162 186 Net current-period other comprehensive (loss) income (2,020 ) 24 36 442 (1,518 ) Balance at May 31, 2018 $ (15,047 ) $ — $ (750 ) $ 57 $ (15,740 ) (a) Pursuant to ASU 2016-01 adopted by the Company (see Note 4), beginning on March 1, 2018, changes in fair value of the Company's investments in equity investments are recorded in earnings. During the three months ended May 31, 2018 , the Company recorded tax expense (benefit) related to derivatives designated in a hedging relationship of $186 and pension plan adjustments of $0 . The other comprehensive income (loss) before reclassification of $(2,020) includes the remeasurement of intercompany transactions of a long-term investment nature of $(934) with certain subsidiaries whose functional currency is not the U.S. dollar, and $(1,086) from translating the financial statements of the Company's non-U.S. dollar functional currency subsidiaries into our reporting currency, which is the U.S. dollar. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information Level 1 (Notes) | 3 Months Ended |
May 31, 2018 | |
Supplemental Cash Flow Information [Abstract] | |
Cash Flow, Supplemental Disclosures [Text Block] | Supplemental Cash Flow Information The following is supplemental information relating to the Unaudited Consolidated Statements of Cash Flows, including continuing and discontinued operations: Three Months Ended 2018 2017 Non-cash investing and financing activities: Capital expenditures funded by long-term obligations $ — $ 1,917 Cash paid during the period: Interest (excluding bank charges) $ 346 $ 1,299 Income taxes (net of refunds) 1,851 53 See Note 2 for additional supplemental cash flow information pertaining to discontinued operations. |
Accounting for Stock Based Comp
Accounting for Stock Based Compensation Level 1 (Notes) | 3 Months Ended |
May 31, 2018 | |
Accounting for Stock Based Compensation [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Accounting for Stock-Based Compensation The Company has various stock-based compensation plans, which are more fully described in Note 1 of the Company’s Form 10-K for the fiscal year ended February 28, 2018 . A restricted stock award is an award of common stock that is subject to certain restrictions during a specified period. Restricted stock awards are independent of option grants and are subject to forfeiture if employment terminates for a reason other than death, disability or retirement, prior to the release of the restrictions. The Company has a Supplemental Executive Retirement Plan (SERP), which was established in Fiscal 2014. Shares are granted based on certain performance criteria and vest on the later of three years from the date of grant, or the grantee reaching the age of 65 years. The shares will also vest upon termination of the grantee's employment by the Company without cause, provided that the grantee, at the time of termination, has been employed by the Company for at least 10 years, or as a result of the sale of all of the issued and outstanding stock, or all, or substantially all, of the assets of the subsidiary of which the grantee serves as CEO and/or President. When vested shares are issued to the grantee, the awards will be settled in shares or in cash, at the Company's sole option. The grantee cannot transfer the rights to receive shares before the restricted shares vest. There are no market conditions inherent in the award, only an employee performance requirement, and the service requirement that the respective employee continues employment with the Company through the vesting date. The following table presents a summary of the Company's restricted stock activity for the three months ended May 31, 2018 : Number of Shares Weighted Average Grant Date Fair Value Balance at February 28, 2018 439,299 $ 7.08 Granted — — Forfeited — — Balance at May 31, 2018 439,299 $ 7.08 Vested and unissued at May 31, 2018 117,049 $ 10.58 During the three months ended May 31, 2018 and 2017 , the Company recorded $107 and $119 , respectively, in stock-based compensation related to restricted stock awards for continuing operations. As of May 31, 2018 , there was approximately $940 of unrecognized stock-based compensation expense related to unvested restricted stock awards. |
Supply Chain Financing (Notes)
Supply Chain Financing (Notes) | 3 Months Ended |
May 31, 2018 | |
Supply Chain Financing [Abstract] | |
Financing Receivables [Text Block] | Supply Chain Financing The Company has supply chain financing agreements and factoring agreements that were entered into for the purpose of accelerating receivable collection and better managing cash flow. The balances under the agreements are sold without recourse and are accounted for as sales of accounts receivable. Total receivable balances sold for the three months ended May 31, 2018 , net of discounts, were $22,979 , compared to $32,360 for the three months ended May 31, 2017 . |
Research and Development
Research and Development | 3 Months Ended |
May 31, 2018 | |
Research and Development [Abstract] | |
Research, Development, and Computer Software Disclosure [Text Block] | Research and Development Expenditures for research and development are charged to expense as incurred. Such expenditures amounted to $2,358 for the three months ended May 31, 2018 , compared to $2,786 for the three months ended May 31, 2017 , net of customer reimbursements, and are included in continuing operations within engineering and technical support expenses on the Unaudited Consolidated Statements of Operations and Comprehensive (Loss) Income . |
Goodwill and Intangible Assets
Goodwill and Intangible Assets Level 1 (Notes) | 3 Months Ended |
May 31, 2018 | |
Goodwill and Intangible Assets [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | Goodwill and Intangible Assets The change in goodwill pertaining to continuing operations by segment is as follows: Automotive: Amount Beginning balance at March 1, 2018 $ 8,252 Activity during the period — Balance at May 31, 2018 $ 8,252 Gross carrying amount at May 31, 2018 $ 8,252 Accumulated impairment charge — Net carrying amount at May 31, 2018 $ 8,252 Premium Audio: Beginning balance at March 1, 2018 $ 46,533 Activity during the period — Balance at May 31, 2018 $ 46,533 Gross carrying amount at May 31, 2018 $ 78,696 Accumulated impairment charge (32,163 ) Net carrying amount at May 31, 2018 $ 46,533 Total Goodwill, net $ 54,785 Note: The Company's Consumer Accessories segment did not carry a goodwill balance at May 31, 2018 or February 28, 2018 . At May 31, 2018 , intangible assets consisted of the following: Gross Carrying Value Accumulated Amortization Total Net Book Value Finite-lived intangible assets: Customer relationships $ 49,916 $ 27,385 $ 22,531 Trademarks/Tradenames 415 402 13 Developed technology 31,290 7,482 23,808 Patents 2,803 2,155 648 License 1,400 1,400 — Contract 2,141 1,878 263 Total finite-lived intangible assets $ 87,965 $ 40,702 47,263 Indefinite-lived intangible assets Trademarks 101,012 Total net intangible assets $ 148,275 At February 28, 2018 , intangible assets consisted of the following: Gross Carrying Value Accumulated Amortization Total Net Book Value Finite-lived intangible assets: Customer relationships $ 50,249 $ 26,807 $ 23,442 Trademarks/Tradenames 415 400 15 Developed technology 31,290 6,802 24,488 Patents 2,830 2,138 692 License 1,400 1,400 — Contract 2,141 1,849 292 Total finite-lived intangible assets $ 88,325 $ 39,396 48,929 Indefinite-lived intangible assets Trademarks 101,391 Total net intangible assets $ 150,320 The Company recorded amortization expense for continuing operations of $1,582 for the three months ended May 31, 2018 , and $1,613 for the three months ended May 31, 2017 . The estimated aggregate amortization expense for continuing operations for all amortizable intangibles for May 31 of each of the succeeding years is as follows: Year Amount 2019 $ 6,307 2020 6,253 2021 6,043 2022 5,892 2023 5,588 |
Equity Investments Level 1 (Not
Equity Investments Level 1 (Notes) | 3 Months Ended |
May 31, 2018 | |
Equity Investments [Abstract] | |
Equity Method Investments Disclosure [Text Block] | Equity Investment As of May 31, 2018 and February 28, 2018 , the Company had a 50% non-controlling ownership interest in ASA Electronics, LLC and Subsidiary (“ASA") which acts as a distributor of mobile electronics specifically designed for niche markets within the automotive industry, including RV's; buses; and commercial, heavy duty, agricultural, construction, powersport, and marine vehicles. The following presents summary financial information for ASA. Such summary financial information has been provided herein based upon the individual significance of ASA to the consolidated financial information of the Company. May 31, February 28, Current assets $ 44,646 $ 42,318 Non-current assets 6,810 7,095 Current liabilities 7,002 5,699 Members' equity 44,454 43,714 Three Months Ended 2018 2017 Net sales $ 25,081 $ 24,895 Gross profit 8,477 7,983 Operating income 3,579 3,573 Net income 3,628 3,606 The Company's share of income from ASA was $1,814 for the three months ended May 31, 2018 and $1,803 for the three months ended May 31, 2017 , respectively. |
Income Taxes Level 1 (Notes)
Income Taxes Level 1 (Notes) | 3 Months Ended |
May 31, 2018 | |
Income Taxes [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes For the three months ended May 31, 2018 , the Company recorded an income tax benefit from continuing operations of $1,113 , which includes a discrete income tax benefit of $27 related to the accrual of interest for unrecognized tax benefits. For the three months ended May 31, 2017 , the Company recorded an income tax benefit from continuing operations of $7,428 , which includes a discrete income tax provision of $11 related to the accrual of interest for unrecognized tax benefits. The effective tax rates for the three months ended May 31, 2018 and May 31, 2017 were an income tax benefit from continuing operations of 30.4% and an income tax benefit of 73.5% , respectively. The effective tax rate for the three months ended May 31, 2018 differs from the U.S. statutory rate of 21% primarily due to the non-controlling interest related to EyeLock LLC, state and local income taxes, nondeductible permanent differences, income taxed in foreign jurisdictions at varying tax rates, and the expected realization of certain deferred tax assets based on forecasted taxable income including deferred tax liabilities related to indefinite-lived intangible assets. Due to the modification providing for an indefinite carryforward of net operating losses arising in tax years beginning after December 31, 2017, future net operating losses are limited to 80% of taxable income in any given year, which limits the available source of taxable income provided by these deferred tax liabilities. At May 31, 2018 , the Company had an uncertain tax position liability from continuing operations of $2,163 , including interest and penalties. The unrecognized tax benefits include amounts related to various U.S. federal, state and local, and foreign tax issues. On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB No. 118”), which provides guidance on accounting for the tax effects of the Tax Cuts and Jobs Act ("TCJA"). The purpose of SAB No. 118 was to address any uncertainty or diversity of view in applying ASC Topic 740, Income Taxes in the reporting period in which the TCJA was enacted. SAB No. 118 addresses situations in which the accounting is incomplete for certain income tax effects of the TCJA upon issuance of a company’s financial statements for the reporting period that includes the enactment date. SAB No. 118 allows for a provisional amount to be recorded if it is a reasonable estimate of the impact of the TCJA. Additionally, SAB No. 118 allows for a measurement period to finalize the impacts of the TCJA, not to extend beyond one year from the date of enactment. The Company’s accounting for certain elements of the TCJA was incomplete as of the year ended February 28, 2018, and remains incomplete as of the quarter May 31, 2018; however, the Company was able to make reasonable estimates of the effects, and therefore, recorded provisional estimates for these items at May 31, 2018 and February 28, 2018. |
Inventory Level 1 (Notes)
Inventory Level 1 (Notes) | 3 Months Ended |
May 31, 2018 | |
Inventory [Abstract] | |
Inventory Disclosure [Text Block] | Inventory Inventories by major category are as follows: May 31, February 28, Raw materials $ 28,909 $ 28,071 Work in process 2,546 2,485 Finished goods 86,889 87,436 Inventory, net $ 118,344 $ 117,992 |
Financing Arrangements (Notes)
Financing Arrangements (Notes) | 3 Months Ended |
May 31, 2018 | |
Financing Arrangements [Abstract] | |
Debt Disclosure [Text Block] | Financing Arrangements The Company has the following financing arrangements: May 31, February 28, Debt Domestic credit facility (a) $ — $ — Florida mortgage (b) 8,483 8,613 Euro asset-based lending obligation (c) 6,450 6,119 Schwaiger mortgage (d) 378 468 Voxx Germany mortgage (e) 3,305 3,665 Total debt 18,616 18,865 Less: current portion of long-term debt 8,010 7,730 Long-term debt 10,606 11,135 Debt issuance costs 2,453 2,659 Total long-term debt, net of debt issuance costs $ 8,153 $ 8,476 (a) Domestic Credit Facility The Company has a senior secured credit facility (the "Credit Facility") that 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 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 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 16(b)). In conjunction with the sale of Hirschmann on August 31, 2017 (see Note 2), the Company paid down substantially all of the outstanding balance of the revolving credit facility, as well as the entire outstanding balance of the term loan, which is not renewable. As of May 31, 2018 , there was no balance outstanding under the revolving credit facility. The availability under the revolving credit line of the Credit Facility was $84,239 as of May 31, 2018 . All amounts outstanding under the 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 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. The commitments under the 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 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. As of May 31, 2018 , the weighted average interest rate on the facility was 5.50% . The 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 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; or (xv) consign or sell any of their inventory on certain terms. In addition, if excess availability under the 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, 2018 , the Company was in compliance with all debt covenants, including cash dominion. 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 Credit Agreement. Charges incurred on the unused portion of the Credit Facility during the three months ended May 31, 2018 totaled $147 , compared to $61 during the three months ended May 31, 2017 . These charges are included within interest and bank charges on the Unaudited Consolidated Statements of Operations and Comprehensive (Loss) Income . The Company has deferred financing costs related to the Credit Facility and a previous amendment and modification of the 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 Unaudited Consolidated Statements of Operations and Comprehensive (Loss) Income over the five-year term of the Credit Facility. During both the three months ended May 31, 2018 and 2017 , the Company amortized $198 of these costs. The net unamortized balance of these deferred financing costs as of May 31, 2018 is $2,213 . (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% ( 3.52% at May 31, 2018 ) 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 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 Sheets and are being amortized through interest and bank charges in the Unaudited Consolidated Statements of Operations and Comprehensive (Loss) Income over the ten-year term of the Florida Mortgage. The Company amortized $8 of these costs during the three months ended May 31, 2018 and $7 during the three months ended May 31, 2017 , respectively. The net unamortized balance of these deferred financing costs as of May 31, 2018 is $241 . 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). (c) Euro Asset-Based Lending Obligation Foreign bank obligations include a Euro accounts receivable factoring arrangement, which has a credit limit of up to 60% of eligible non-factored accounts receivable (see Note 9), and a Euro Asset-Based Lending ("ABL") credit facility, which has a credit limit of €8,000 and expires on July 31, 2020 for the Company's subsidiary, VOXX Germany. The rate of interest for the factoring arrangement is the three-month Euribor plus 1.6% ( 1.25% at May 31, 2018 ) and the rate of interest for the ABL is the three-month Euribor plus 2.3% ( 1.95% at May 31, 2018 ). As of May 31, 2018 , the amounts outstanding under these credit facilities, which are payable on demand, do not exceed their respective credit limits. (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. (e) Voxx Germany Mortgage This 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. |
Other Income (Expense) Level 1
Other Income (Expense) Level 1 (Notes) | 3 Months Ended |
May 31, 2018 | |
Other Income and Expenses [Abstract] | |
Other Income and Other Expense Disclosure [Text Block] | Other Income (Expense) Other income (expense) is comprised of the following: Three Months Ended 2018 2017 Foreign currency gain (loss) $ 335 $ (832 ) Interest income 206 15 Rental income 121 144 Miscellaneous (1 ) (334 ) Total other, net $ 661 $ (1,007 ) |
Foreign Currency Level 1 (Notes
Foreign Currency Level 1 (Notes) | 3 Months Ended |
May 31, 2018 | |
Foreign Currency [Abstract] | |
Foreign Currency Disclosure [Text Block] | Foreign Currency The Company has a subsidiary in Venezuela. Venezuela is currently experiencing significant political and civil unrest and economic instability and has implemented various foreign currency and price controls. The country has also experienced high rates of inflation over the last several years. The President of Venezuela has the authority to legislate certain areas by decree, which allows the government to nationalize certain industries or expropriate certain companies and property. These factors have had a negative impact on our business and our financial condition. In 2003, Venezuela created the Commission of Administration of Foreign Currency ("CADIVI") which establishes and administers currency controls and their associated rules and regulations. These controls include creating a fixed exchange rate between the Bolivar Fuerte and the U.S. Dollar, and the ability to restrict the exchange of Bolivar Fuertes for U.S. Dollars and vice versa. On March 1, 2010, the Company transitioned to hyper-inflationary accounting for Venezuela in accordance with the guidelines in ASC 830, "Foreign Currency." A hyper-inflationary economy designation occurs when a country has experienced cumulative inflation of approximately 100 percent or more over a 3-year period. The hyper-inflationary designation requires the local subsidiary in Venezuela to record all transactions as if they were denominated in U.S. dollars. Since January 2014, the Venezuelan government has created multiple alternative exchange rates designated to be used for the purchase of goods and services deemed non-essential. In March 2016, the former SIMADI exchange rate was replaced by the DICOM, a new floating exchange rate for non-essential imports. The Venezuelan government reported that the DICOM exchange rate would be allowed to float to meet market needs. In January 2018, the Venezuelan government eliminated the official government DIPRO exchange rate, stating that all currency transactions would now be carried out at the DICOM rate. As of May 31, 2018 and 2017 , the DICOM rate was deemed to be the appropriate rate to use for remeasuring its Venezuelan subsidiary’s financial statements. As of May 31, 2018 , the DICOM rate offered was approximately 80,000 bolivars to the U.S. dollar. Total net currency exchange losses of $(3) were recorded for the three months ended May 31, 2018 for Venezuela, as compared to $(84) for the three months ended May 31, 2017 , and are included in other income (expense) on the Unaudited Consolidated Statements of Operations and Comprehensive (Loss) Income . Our investment in Venezuela mainly consists of $3,508 of properties that are currently being held for investment purposes. No impairments were recorded related to these properties during the three months ended May 31, 2018 . The Company continues to monitor closely the continued economic instability, increasing inflation and currency restrictions imposed by the government and will continue to evaluate its local properties. Further devaluations or regulatory actions could impair the carrying value of these properties. |
Lease Obligations Level 1 (Note
Lease Obligations Level 1 (Notes) | 3 Months Ended |
May 31, 2018 | |
Lease Obligations [Abstract] | |
Leases of Lessee Disclosure [Text Block] | Lease Obligations At May 31, 2018 , the Company was obligated under non-cancelable operating leases for equipment, as well as warehouse and office facilities for minimum annual rental payments for continuing operations, as follows: Operating Leases 2019 $ 1,383 2020 614 2021 414 2022 367 2023 211 Thereafter 195 Total minimum lease payments $ 3,184 The Company has capital leases with a total lease liability of $1,278 at May 31, 2018 . These leases have maturities through Fiscal 2021. |
Capital Structure
Capital Structure | 3 Months Ended |
May 31, 2018 | |
Capital Structure [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Capital Structure The Company's capital structure is as follows: Shares Authorized Shares Outstanding Security Par Value May 31, February 28, May 31, February 28, Voting Rights per Share Liquidation Rights Preferred Stock $ 50.00 50,000 50,000 — — — $50 per share Series Preferred Stock $ 0.01 1,500,000 1,500,000 — — — — Class A Common Stock $ 0.01 60,000,000 60,000,000 21,938,100 21,938,100 1 Ratably with Class B Class B Common Stock $ 0.01 10,000,000 10,000,000 2,260,954 2,260,954 10 Ratably with Class A Treasury Stock at cost at cost 2,168,094 2,168,094 N/A N/A N/A |
Variable Interest Entities (Not
Variable Interest Entities (Notes) | 3 Months Ended |
May 31, 2018 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entity Disclosure [Text Block] | Variable Interest Entities A variable interest entity ("VIE") is an entity that either (i) has insufficient equity to permit the entity to finance its activities without additional subordinated financial support, or (ii) has equity investors who lack the characteristics of a controlling financial interest. Under ASC 810, an entity that holds a variable interest in a VIE and meets certain requirements would be considered to be the primary beneficiary of the VIE and required to consolidate the VIE in its consolidated financial statements. In order to be considered the primary beneficiary of a VIE, an entity must hold a variable interest in the VIE and have both: • the power to direct the activities that most significantly impact the economic performance of the VIE; and • the right to receive benefits from, or the obligation to absorb losses of, the VIE that could be potentially significant to the VIE. On September 1, 2015, Voxx acquired a majority voting interest in substantially all of the assets and certain specified liabilities of EyeLock, Inc. and EyeLock Corporation, a market leader of iris-based identity authentication solutions, through a newly-formed entity, EyeLock LLC. In connection with the acquisition, the Company entered into a Loan Agreement with EyeLock LLC. The terms of the Loan Agreement allowed EyeLock LLC to borrow funds for working capital purposes. During Fiscal 2017 and Fiscal 2018, the Company issued four convertible promissory notes to EyeLock LLC, allowing the entity to borrow additional funds. On April 1, 2018, all outstanding promissory notes were amended and restated with Voxx issuing a consolidated convertible promissory note to EyeLock LLC to borrow up to $39,000 . The promissory note bears interest at 10% and can be used to repay protective advances and to fund working capital requirements of the company. The amended and restated promissory note is due on February 28, 2019. The outstanding principal balance of this promissory note is convertible at the sole option of Voxx into units of EyeLock LLC. If Voxx chooses not to convert into equity, the outstanding loan principal of the amended and restated promissory note will be repaid at a multiple of 1.50 based on the repayment date. The agreement includes customary events of default and is collateralized by all of the property of EyeLock LLC. We determined that we hold a variable interest in EyeLock LLC as a result of: • our majority voting interest and ownership of substantially all of the assets and certain liabilities of the entity; and • the loan agreement with EyeLock LLC, which has a total outstanding balance of $37,106 as of May 31, 2018 . We concluded that we became the primary beneficiary of EyeLock LLC on September 1, 2015 in conjunction with the acquisition. This was the first date on which we had the power to direct the activities that most significantly impact the economic performance of the entity because we acquired a majority interest in substantially all of the assets and certain liabilities of EyeLock, Inc. and EyeLock Corporation on this date, as well as obtained a majority voting interest as a result of this transaction. Although we are considered to have control over EyeLock LLC under ASC 810, due to our majority ownership interest, the assets of EyeLock LLC can only be used to satisfy the obligations of EyeLock LLC. As a result of our majority ownership interest in the entity and our primary beneficiary conclusion, we consolidated EyeLock LLC within our consolidated financial statements beginning on September 1, 2015. Assets and Liabilities of EyeLock LLC The following table sets forth the carrying values of assets and liabilities of EyeLock LLC that were included on our Consolidated Balance Sheets as of May 31, 2018 and February 28, 2018 : May 31, 2018 February 28, 2018 Assets ( unaudited ) Current assets: Cash and cash equivalents $ 125 $ (101 ) Accounts receivable, net 243 128 Inventory, net (10 ) (119 ) Receivables from vendors 1 — Prepaid expenses and other current assets 63 117 Total current assets 422 25 Property, plant and equipment, net 166 186 Intangible assets, net 35,360 36,126 Other assets 242 119 Total assets $ 36,190 $ 36,456 Liabilities and Partners' Equity Current liabilities: Accounts payable $ 6,604 $ 4,610 Accrued expenses and other current liabilities 1,049 2,557 Current portion of debt 37,106 — Total current liabilities 44,759 7,167 Long-term debt — 33,722 Other long-term liabilities 1,200 1,200 Total liabilities 45,959 42,089 Commitments and contingencies Partners' equity: Capital 41,416 41,416 Retained earnings (51,185 ) (47,049 ) Total partners' equity (9,769 ) (5,633 ) Total liabilities and partners' equity $ 36,190 $ 36,456 Revenue and Expenses of EyeLock LLC The following table sets forth the revenues and expenses of EyeLock LLC that were included in our Unaudited Consolidated Statements of Operations and Comprehensive (Loss) Income for the three months ended May 31, 2018 and 2017, respectively: Three Months Ended 2018 2017 Net sales $ 123 $ 64 Cost of sales 10 (22 ) Gross profit 113 86 Operating expenses: Selling 328 593 General and administrative 1,226 1,658 Engineering and technical support 1,790 2,033 Total operating expenses 3,344 4,284 Operating loss (3,231 ) (4,198 ) Interest and bank charges (905 ) (609 ) Loss before income taxes (4,136 ) (4,807 ) Income tax expense — — Net loss $ (4,136 ) $ (4,807 ) |
Segment Reporting (Notes)
Segment Reporting (Notes) | 3 Months Ended |
May 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Segment Reporting The Company operates in three distinct segments based upon our products and our internal organizational structure. The three operating segments, which are also the Company's reportable segments, are Automotive, Premium Audio and Consumer Accessories. Our Automotive segment designs, manufactures, distributes and markets rear-seat entertainment devices, satellite radio products, automotive security, remote start systems, mobile multimedia devices, aftermarket/OE-styled radios, car link-smartphone telematics applications, collision avoidance systems and location-based services. Our Premium Audio segment designs, manufactures, distributes and markets home theater systems, high-end loudspeakers, outdoor speakers, iPad/iPod and computer speakers, business music systems, cinema speakers, flat panel speakers, Bluetooth speakers, soundbars, headphones and DLNA (Digital Living Network Alliance) compatible devices. Our Consumer Accessories segment designs, markets and distributes remote controls; wireless and Bluetooth speakers; karaoke products; action cameras; iris identification and biometric security related products; personal sound amplifiers; infant/nursery products; activity tracking bands; smart-home security and safety products; and A/V connectivity, portable/home charging, reception, and digital consumer products. The accounting principles applied at the consolidated financial statement level are generally the same as those applied at the operating segment level and there are no material intersegment sales. The segments are allocated interest expense, based upon a pre-determined formula, which utilizes a percentage of each operating segment's intercompany balance, which is offset in Corporate/Eliminations. Segment data for each of the Company's segments are presented below: Automotive Premium Audio Consumer Accessories Corporate/ Eliminations Total Three Months Ended May 31, 2018 Net sales $ 39,646 $ 32,389 $ 28,743 $ 77 $ 100,855 Equity in income of equity investees 1,814 — — — 1,814 Interest expense and bank charges 245 1,791 1,790 (2,726 ) 1,100 Depreciation and amortization expense 239 836 1,113 774 2,962 Income (loss) before income taxes 4,514 1,646 (7,468 ) (2,357 ) (3,665 ) Three Months Ended May 31, 2017 Net sales $ 37,023 $ 37,728 $ 39,928 $ 144 $ 114,823 Equity in income of equity investees 1,803 — — — 1,803 Interest expense and bank charges 86 1,944 1,712 (1,950 ) 1,792 Depreciation and amortization expense 269 883 1,164 723 3,039 Income (loss) before income taxes 3,546 (3,871 ) (7,125 ) (2,662 ) (10,112 ) |
Contingencies and Derivative Se
Contingencies and Derivative Settlement Level 1 (Notes) | 3 Months Ended |
May 31, 2018 | |
Contingencies and Derivative Settlement [Abstract] | |
Legal Matters and Contingencies [Text Block] | Contingencies The Company is currently, and has in the past, been a party to various routine legal proceedings incident to the ordinary course of business. If management determines, based on the underlying facts and circumstances, that it is probable a loss will result from a litigation contingency and the amount of the loss can be reasonably estimated, the estimated loss is accrued for. The Company does not believe that any of its current outstanding litigation matters will have a material adverse effect on the Company's financial statements, individually, or in the aggregate. The Company has been a plaintiff in a counterfeit lawsuit with ePro ("the Defendant") in the United States District Court for the Southern District of New York. On September 30, 2016, the judge in the lawsuit awarded the Company $2,681 . On January 25, 2018, the United States Court of Appeals for the Second Circuit affirmed the District Court judgment and denied the Defendant's petition for appeal. The Defendant's time to appeal to the United States Supreme Court has expired and the award is final as of May 31, 2018. The Company has recorded $2,076 of this settlement as a reduction of general and administrative expense on the Unaudited Consolidated Statements of Operations and Comprehensive (Loss) Income for the three months ended May 31, 2018 and $605 as an offset against prepaid legal fees recorded in prior periods. The products the Company sells are continually changing as a result of improved technology. As a result, although the Company and its suppliers attempt to avoid infringing known proprietary rights, the Company may be subject to legal proceedings and claims for alleged infringement by patent, trademark or other intellectual property owners. Any claims relating to the infringement of third-party proprietary rights, even if not meritorious, could result in costly litigation, divert management’s attention and resources, or require the Company to either enter into royalty or license agreements that are not advantageous to the Company, or pay material amounts of damages. |
New Accounting Pronouncements L
New Accounting Pronouncements Level 1 (Notes) | 3 Months Ended |
May 31, 2018 | |
New Accounting Pronouncements [Abstract] | |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | New Accounting Pronouncements Accounting Pronouncements Recently Adopted In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, "Revenues from Contracts with Customers (Topic 606)," which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The standard requires entities to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The new guidance also includes a cohesive set of disclosure requirements intended to provide users of financial statements comprehensive information about the nature, amounts, timing and uncertainty of revenue and cash flows arising from a company's contracts with customers. ASU 2014-09 defines a five-step process to achieve this core principle and in doing so, it is possible that more judgment and estimates may be required within the revenue recognition process than were required under previous guidance, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to separate performance obligations, among others. The new standard was effective for the Company beginning March 1, 2018. The FASB issued four subsequent standards in 2016 containing implementation guidance related to the new standard. These standards provided additional guidance related to principal versus agent considerations, licensing, and identifying performance obligations. Additionally, these standards provided narrow-scope improvements and practical expedients as well as technical corrections and improvements. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the modified retrospective method). The Company has adopted the standard using the modified retrospective method effective March 1, 2018. The adoption of ASC Topic 606 did not have a material impact on the Company's business process, internal controls, systems, consolidated financial condition, results of operations or cash flows. As such, a cumulative effective adjustment was not recorded to opening retained earnings. See Note 23 for information concerning the Company's revenue recognition policy. In January 2016, the FASB issued ASU 2016-01 "Recognition and Measurement of Financial Assets and Financial Liabilities," which amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments. This amendment requires all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee). This standard is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. This standard was effective for the Company's quarter ended May 31, 2018 and did not have a material impact on the consolidated financial statements. In February 2018, the FASB issued ASU 2018-03, “ Technical Corrections and Improvements to Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” These amendments clarify the guidance in ASU No. 2016-01, on the following issues (among other things): Equity Securities without a Readily Determinable Fair Value-Discontinuation; Equity Securities without a Readily Determinable Fair Value Adjustments; Forward Contracts and Purchase Options; and Transition Guidance for Equity Securities without a Readily Determinable Fair Value. The amendments in this ASU are effective in conjunction with the adoption of ASU No. 2016-01. The adoption of these updates did not have a material impact on our consolidated financial statements (see Note 4). In August 2016, the FASB issued ASU No. 2016-15, "Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments," which addresses eight specific cash flow issues and is intended to reduce diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The guidance is effective for interim and annual periods beginning after December 15, 2017, and early adoption is permitted. This standard was effective for the quarter ended May 31, 2018 and did not have a material impact on the Company's consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory,” which is intended to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. This update removes the current exception in GAAP prohibiting entities from recognizing current and deferred income tax expenses or benefits related to transfer of assets, other than inventory, within the consolidated entity. The current exception to defer the recognition of any tax impact on the transfer of inventory within the consolidated entity until it is sold to a third party remains unaffected. The amendments in this update are effective for public entities for annual reporting periods beginning after December 15, 2017. This standard was effective for the quarter ended May 31, 2018 and did not have a material impact on the Company's consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18 , "Statement of Cash Flows (Topic 230)" to reduce diversity in practice related to the classification and presentation of changes in restricted cash on the statement of cash flows under Topic 230, Statement of Cash Flows. The revised guidance requires that amounts generally described as restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The guidance will be applied on a retrospective basis beginning with the earliest period presented. The amendments in this ASU are effective for annual and interim periods beginning after December 15, 2017. This standard was effective for the quarter ended May 31, 2018 and did not have a material impact on the Company's consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, "Business Combinations (Topic 805) - Clarifying the Definition of a Business," with the objective to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets versus businesses. The amendments in ASU 2017-01 provide a screen to determine when a set of assets and activities is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen is expected to reduce the number of transactions that need to be further evaluated. If the screen is not met, the amendments in ASU 2017-01 (i) require that to be considered a business, a set of assets and liabilities acquired must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output; and (ii) remove the evaluation of whether a market participant could replace missing elements. The amendments in this ASU are effective for annual and interim periods beginning after December 15, 2017 and should be applied prospectively. Early adoption is permitted for transactions for which the acquisition date occurs before the issuance date of ASU 2017-01, only when the transaction has not been reported in financial statements that have been issued or made available for issuance. This standard was effective for the quarter ended May 31, 2018 and did not have a material impact on the Company's consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-07, "Compensation-Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost." The new standard requires that an employer disaggregate the service cost component of net benefit cost. Also, these amendments provide guidance on how to present the service cost component and the other components of net benefit costs in the income statement and allow only the service cost component of net benefit cost to be eligible for capitalization. The guidance is effective for fiscal years beginning after December 15, 2017. This standard was effective for the quarter ended May 31, 2018 and did not have a material impact on the Company's consolidated financial statements. In May 2017, the FASB issued ASU No. 2017-09, “Compensation-Stock Compensation (Topic 718) - Scope of Modification Accounting," which amends the scope of modification accounting for share-based payment arrangements. The standard provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting under ASC 718. Specifically, an entity would not apply modification accounting if the fair value, vesting conditions, and classification of the awards are the same immediately before and after the modification. The new standard is effective for annual periods beginning after December 15, 2017 and interim periods within those years. This standard was effective for the quarter ended May 31, 2018 and did not have a material impact on the Company's consolidated financial statements. Standards Issued Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)." ASU 2016-02 requires that a lessee recognize the assets and liabilities that arise from operating leases. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. This amendment will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. The Company will adopt this guidance beginning with its first quarter ended May 31, 2019. The Company has established a task force, comprised of multiple functional groups inside the Company and is currently in the process of evaluating critical components of ASC Topic 842 and the potential impact of the guidance on the Company's financial position, results of operations and cash flows. Based on the preliminary work completed, the Company is considering the potential implications of the new standard in determining the discount rate to be used in valuing new and existing leases, procedural and operational changes that may be necessary to comply with the provisions of the guidance and all applicable financial statement disclosures required by the guidance, all of which are areas that could be impacted by adoption of the ASC. At this time, the Company has not completed its full evaluation; however, it believes the adoption of ASC Topic 842 will have a material impact on the total assets and total liabilities reported on the Company's Consolidated Balance Sheets. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The standard significantly changes how entities will measure credit losses for most financial assets and certain other instruments that aren’t measured at fair value through net income. The standard will replace today’s “incurred loss” approach with an “expected loss” model for instruments measured at amortized cost. For available-for-sale debt securities, entities will be required to record allowances rather than reduce the carrying amount, as they do today under the other-than-temporary impairment model. It also simplifies the accounting model for purchased credit-impaired debt securities and loans. The amendment will affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The amendments should be applied on either a prospective transition or modified-retrospective approach depending on the subtopic. This ASU is effective for annual periods beginning after December 15, 2019, and interim periods therein. Early adoption is permitted for annual periods beginning after December 15, 2018, and interim periods therein. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment." Under the new guidance, if a reporting unit's carrying value amount exceeds its fair value, an entity will record an impairment charge based on that difference. The impairment charge will be limited to the amount of goodwill allocated to that reporting unit. The standard eliminates today's requirement to calculate goodwill impairment using Step 2, which calculates an impairment charge by comparing the implied fair value of goodwill with its carrying amount. The standard does not change the guidance on completing Step 1 of the goodwill impairment test. The amendments in this ASU are effective for annual or any interim goodwill impairments tests in fiscal years beginning after December 15, 2019 and should be applied prospectively. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is currently evaluating the impact of the new standard on our consolidated financial statements. In August 2017, the FASB issued ASU No. 2017-12, "Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities," which improves the financial reporting of hedging relationships to better align risk management activities in financial statements and make certain targeted improvements to simplify the application of the hedge accounting guidance in current GAAP. The standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted for any interim and annual financial statements that have not yet been issued. The Company is currently in the process of evaluating the impact of this new pronouncement on its consolidated financial statements. In February 2018, the FASB issued ASU No. 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income." ASU 2018-02 was issued to address the income tax accounting treatment of the stranded tax effects within other comprehensive income due to the prohibition of backward tracing due to an income tax rate change that was initially recorded in other comprehensive income due to the enactment of the Tax Cuts and Jobs Act ("TCJA") on December 22, 2017, which changed the Company's income tax rate from 35% to 21%. The amendments to the ASU changed US GAAP whereby an entity may elect to reclassify the stranded tax effect from accumulated other comprehensive income to retained earnings. The amendments of the ASU may be adopted in total or in part using a full retrospective or modified retrospective method. The amendments of the ASU are effective for periods beginning after December 15, 2018. Early adoption is permitted. The Company is assessing the effect of ASU 2018-02 on its consolidated financial statements. The effects of changes in tax laws are required to be recognized in the period in which the legislation is enacted. However, due to the complexity and significance of the TCJA’s provisions, the FASB issued ASU 2018-06, " Income Taxes (Topic 740)," pursuant to the SEC staff issued Staff Accounting Bulletin No. 118 (SAB 118), which allows companies to record the tax effects of the TCJA on a provisional basis based on a reasonable estimate, and then, if necessary, subsequently adjust such amounts during a limited measurement period as more information becomes available. The measurement period ends when a company has obtained, prepared, and analyzed the information necessary to finalize its accounting, but cannot extend beyond one year from enactment. |
Product Warranties (Notes)
Product Warranties (Notes) | 3 Months Ended |
May 31, 2018 | |
Payables and Accruals - Warranties [Abstract] | |
Product Warranty Disclosure [Text Block] | (15) Product Warranties and Product Repair Costs The following table provides a summary of the activity with respect to product warranties and product repair costs. Liabilities for product warranties and product repair costs are included within accrued expenses and other current liabilities on the Consolidated Balance Sheets. Three Months Ended 2018 2017 Opening balance $ 6,233 $ 5,608 Liabilities acquired during acquisition — 500 Liabilities accrued for warranties accrued during the period 1,500 2,032 Balances transferred (a) (832 ) — Warranties paid during the period (1,976 ) (2,213 ) Ending balance $ 4,925 $ 5,927 (a) In conjunction with the implementation of ASC Topic 606, Revenue from Contracts with Customers (see Note 23), the Company recorded a refund liability, representing the amount of consideration received for products sold that the Company expects to refund to customers, as well as a corresponding return asset that reflects the Company's right to receive goods back from customers. The return asset is calculated as the carrying amount of goods at the time of sale, less any expected costs to recover the goods and any expected reduction in value and is included in prepaid expenses and other current assets on the Unaudited Consolidated Balance Sheet at May 31, 2018 . The balance above represents amounts that would reduce the value of inventory returned to the Company and has been reclassified to the return asset in order to properly reflect the value of the inventory the Company expects to receive back from customers. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers (Notes) | 3 Months Ended |
May 31, 2018 | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer [Text Block] | (23) Revenue from Contract with Customers On March 1, 2018, the Company adopted ASC Topic 606, Revenue from Contracts with Customers, and all the related amendments (“ASC Topic 606”), using the modified retrospective method. In addition, we elected to apply certain of the permitted practical expedients within the revenue recognition guidance and make certain accounting policy elections, including those related to significant financing components, sales taxes and shipping and handling activities. Most of the changes resulting from the adoption of ASC Topic 606 on March 1, 2018 were changes in presentation within the Unaudited Consolidated Balance Sheet. Therefore, while we made adjustments to certain opening balances on our March 1, 2018 Unaudited Consolidated Balance Sheet, we made no adjustment to opening Retained Earnings. We expect the impact of the adoption of ASC Topic 606 to be immaterial to our net income on an ongoing basis; however, adoption did increase the level of disclosures concerning our net sales. Results for reporting periods beginning March 1, 2018 are presented under the new guidance, while prior period amounts continue to be reported in accordance with previous guidance without revision. Revenue from Contracts with Customers The core principle of ASC Topic 606 is that an entity recognizes revenue to depict the transfer of promised goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. We apply the FASB’s guidance on revenue recognition, which requires us to recognize the amount of revenue and consideration that we expect to receive in exchange for goods and services transferred to our customers. To do this, the Company applies the five-step model prescribed by the FASB, which requires us to: (i) identify the contract with the customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when, or as, we satisfy a performance obligation. We account for a contract or purchase order when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Revenue is recognized when control of the product passes to the customer, which is upon shipment, unless otherwise specified within the customer contract or on the purchase order as delivery, and is recognized at the amount that reflects the consideration the Company expects to receive for the products sold, including various forms of discounts. When revenue is recorded, estimates of returns are made and recorded as a reduction of revenue. Contracts with customers are evaluated to determine if there are separate performance obligations related to timing of product shipment that will be satisfied in different accounting periods. When that is the case, revenue is deferred until each performance obligation is met. No performance obligation related amounts were deferred as of May 31, 2018 . Within our Automotive segment, while the majority of the contracts we enter into with Original Equipment Manufacturers (“OEM”) are long-term supply arrangements, the performance obligations are established by the enforceable contract, which is generally considered to be the purchase order. The purchase orders are of durations less than one year. As such, the Company applies the practical expedient in ASC paragraph 606-10-50-14 and does not disclose information about remaining performance obligations that have original expected durations of one year or less, for which work has not yet been performed. Certain taxes assessed by governmental authorities on revenue producing transactions, such as value added taxes, are excluded from revenue and recorded on a net basis. Performance Obligations The Company’s primary source of revenue is derived from the manufacture and distribution of premium audio, consumer accessories, and automotive products. Our consumer accessories products primarily consist of finished goods sold to retail customers, while our premium audio products primarily consist of finished goods sold to both retail and commercial customers. Our automotive products are sold both to OEM and aftermarket customers. The majority of the products sold to our automotive customers are manufactured by the Company. We recognize revenue for sales to our customers when transfer of control of the related good or service has occurred. All of our revenue was recognized under the point in time approach for the three months ended May 31, 2018 . Contract terms with certain of our OEM customers could result in products and services being transferred over time as a result of the customized nature of some of our products, together with contractual provisions in the customer contracts that provide us with an enforceable right to payment for performance completed to date; however, under typical terms, we do not have the right to consideration until the time of shipment from our manufacturing facilities or distribution centers, or until the time of delivery to our customers. If certain contracts in the future provide the Company with this enforceable right of payment, the timing of revenue recognition from products transferred to customers over time may be slightly accelerated compared to our right to consideration at the time of shipment or delivery. Our typical payment terms vary based on the customer and the type of goods and services in the contract or purchase order. The period of time between invoicing and when payment is due is not significant. Amounts billed and due from our customers are classified as receivables on the Unaudited Consolidated Balance Sheet. As our standard payment terms are less than one year, we have elected the practical expedient under ASC paragraph 606-10-32-18 to not assess whether a contract has a significant financing component. Our customers take delivery of goods, and they are recognized as revenue at the time of transfer of control to the customer, which is usually at the time of shipment, unless otherwise specified in the customer contract or purchase order. This determination is based on applicable shipping terms, as well as the consideration of other indicators, including timing of when the Company has a present right to payment, when physical possession of products is transferred to customers, when the customer has the significant risks and rewards of ownership of the asset, and any provisions in contracts regarding customer acceptance. While unit prices are generally fixed, we provide variable consideration for certain of our customers, typically in the form of promotional incentives at the time of sale. We utilize the most likely amount consistently to estimate the effect of uncertainty on the amount of variable consideration to which we would be entitled. The most likely amount method considers the single most likely amount from a range of possible consideration amounts. The most likely amounts are based upon the contractual terms of the incentives and historical experience with each customer. We record estimates for cash discounts, promotional rebates, and other promotional allowances in the period the related revenue is recognized (“Customer Credits”). The provision for Customer Credits is recorded as a reduction from gross sales and reserves for Customer Credits are presented within accrued sales incentives on the Unaudited Consolidated Balance Sheet. Actual Customer Credits have not differed materially from estimated amounts for each period presented. Amounts billed to customers for shipping and handling are included in net sales and costs associated with shipping and handling are included in cost of sales. We have concluded that our estimates of variable consideration are not constrained according to the definition within the new standard. Additionally, the Company applies the practical expedient in ASC paragraph 606-10-25-18B and accounts for shipping and handling activities that occur after the customer has obtained control of a good as a fulfillment activity, rather than a separate performance obligation. With the adoption of ASC Topic 606, we reclassified certain amounts related to variable consideration. Under ASC Topic 606, we are required to present a refund liability and a return asset within the Unaudited Consolidated Balance Sheet, whereas in periods prior to adoption, we presented the estimated margin impact of expected returns as a contra-asset within accounts receivable. The changes in the refund liability are reported in net sales, and the changes in the return asset are reported in cost of sales in the Unaudited Consolidated Statements of Operations and Comprehensive (Loss) Income . As a result, the balance sheet presentation was adjusted beginning in Fiscal 2019. As of May 31, 2018 , the balance of the return asset is $1,654 and the balance of the refund liability is $3,906 , and they are presented within prepaid expenses and other current assets and accrued expenses and other current liabilities, respectively, on the Unaudited Consolidated Balance Sheet. We warrant our products against certain defects in material and workmanship when used as designed, which primarily range from 30 days to 3 years. We offer limited lifetime warranties on certain products, which limit the customer’s remedy to the repair or replacement of the defective product or part for the designated lifetime of the product, or for the life of the vehicle for the original owner, if it is an automotive product. We do not sell extended warranties. Contract Balances Contract assets primarily relate to the Company’s rights to consideration for work completed but not billed at the reporting date on contracts with customers. Contract assets are transferred to receivables when the rights become unconditional. Contract liabilities primarily relate to contracts where advance payments or deposits have been received, but performance obligations have not yet been met, and therefore, revenue has not been recognized. The Company has no contract assets or contract liability balances at May 31, 2018 . Disaggregation of Revenue The Company operates in three reportable segments: Automotive, Premium Audio and Consumer Accessories. ASC Topic 606 requires further disaggregation of an entity’s revenue. In the following table, the Company's net sales are disaggregated accordingly for the three months ended May 31, 2018 and 2017 : |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
May 31, 2018 | |
Business Combinations [Abstract] | |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | The following summarizes the final allocation of the purchase price for the fair value of the assets acquired and liabilities assumed at the date of acquisition: April 18, 2017 Assets acquired: Inventory $ 1,444 Goodwill 880 Intangible assets including trademarks and customer relationships 520 Total assets acquired 2,844 Liabilities assumed: Warranty accrual 500 Total 500 Total purchase price $ 2,344 |
Disposal Groups, Including Discontinued Operations [Table Text Block] | The following table presents a reconciliation of the major financial lines constituting the results of operations for discontinued operations to the net income from discontinued operations, net of tax, presented separately in the Unaudited Consolidated Statements of Operations and Comprehensive (Loss) Income : Three Months Ended 2017 Net sales $ 44,279 Cost of sales 30,685 Gross profit 13,594 Operating expenses: Selling 1,382 General and administrative 6,996 Engineering and technical support 3,938 Total operating expenses 12,316 Operating income of discontinued operations 1,278 Other (expense) income: Interest and bank charges (a) (122 ) Other, net (12 ) Total other expense of discontinued operations, net (134 ) Total income from discontinued operations before taxes 1,144 Income tax expense on discontinued operations 3,366 Loss from discontinued operations, net of taxes $ (2,222 ) Loss per share - basic $ (0.09 ) Loss per share - diluted $ (0.09 ) (a) Includes an allocation of consolidated interest expense and interest expense directly related to debt assumed by the buyer. The allocation of consolidated interest expense was based upon the ratio of net assets of the discontinued operations to that of the Consolidated Company. The following table presents supplemental cash flow information of the discontinued operation: Three Months Ended 2017 Operating activities: Depreciation and amortization expense $ 1,406 Stock-based compensation expense 23 Investing activities: Capital expenditures $ 1,222 Non-cash investing and financing activities: Capital expenditures funded by long-term obligations $ 1,802 |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 3 Months Ended |
May 31, 2018 | |
Net Income Per Common Share [Abstract] | |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share [Table Text Block] | There are no reconciling items which impact the numerator of basic and diluted net (loss) income common share. A reconciliation between the denominator of basic and diluted net (loss) income per common share is as follows: Three Months Ended 2018 2017 Weighted-average common shares outstanding 24,316,103 24,160,324 Effect of dilutive securities: Stock options, warrants and restricted stock — — Weighted-average common shares and potential common shares outstanding 24,316,103 24,160,324 |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Measurements (Tables) | 3 Months Ended |
May 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following table presents assets measured at fair value on a recurring basis at May 31, 2018 : Fair Value Measurements at Reporting Date Using Total Level 1 Level 2 Cash and cash equivalents: Cash and money market funds $ 49,827 $ 49,827 $ — Derivatives Designated for hedging $ 109 $ — $ 109 Investment securities: Mutual funds $ 2,833 $ 2,833 $ — Investment held at cost, less impairment (a) 540 — — Total investment securities $ 3,373 $ 2,833 $ — The following table presents assets and liabilities measured at fair value on a recurring basis at February 28, 2018 : Fair Value Measurements at Reporting Date Using Total Level 1 Level 2 Cash and cash equivalents: Cash and money market funds $ 51,740 $ 51,740 $ — Derivatives Designated for hedging $ (262 ) $ — $ (262 ) Investment securities: Trading securities $ 3,620 $ 3,620 $ — Other investment at cost (a) 547 — — Total investment securities $ 4,167 $ 3,620 $ — (a) This balance represents an investment in a non-controlled corporation held at cost, less impairment (see Note 4). The fair value of this investment would be based upon Level 3 inputs. |
Fair Value Measurements Fair 33
Fair Value Measurements Fair Values (Tables) | 3 Months Ended |
May 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Activity related to cash flow hedges pertaining to continuing operations recorded during the three months ended May 31, 2018 and 2017 was as follows: Three months ended May 31, 2018 Pretax Gain(Loss) Recognized in Other Comprehensive Income Pretax Gain (Loss) Reclassified from Accumulated Other Comprehensive Income Gain (Loss)for Ineffectiveness in Other Income Cash flow hedges Foreign currency contracts $ 366 $ (235 ) $ 33 Interest rate swaps 11 — — Three months ended May 31, 2017 Pretax Gain(Loss) Recognized in Other Comprehensive Income Pretax Gain (Loss) Reclassified from Accumulated Other Comprehensive Income Gain (Loss)for Ineffectiveness in Other Income Cash flow hedges Foreign currency contracts $ (733 ) $ 274 $ (43 ) Interest rate swaps (44 ) — — |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
May 31, 2018 | |
Investment Securities [Abstract] | |
Unrealized Gain (Loss) on Investments [Table Text Block] | As of May 31, 2018 , and February 28, 2018 , the Company had the following investments: May 31, 2018 Carrying Value Investment Securities Marketable Equity Securities Mutual funds $ 2,833 Total Marketable Equity Securities 2,833 Investment Held at Cost, Less Impairment 540 Total Investment Securities $ 3,373 February 28, 2018 Cost Basis Unrealized Holding Gain/(Loss) Fair Value Investment Securities Marketable Equity Securities Trading Mutual funds $ 3,620 $ — $ 3,620 Total Marketable Securities 3,620 — 3,620 Other Long-Term Investment at Cost 547 — 547 Total Investment Securities $ 4,167 $ — $ 4,167 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 3 Months Ended |
May 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The Company’s accumulated other comprehensive (loss) income consists of the following: Foreign Currency Translation (Losses) Gains Unrealized (losses) gains on investments, net of tax (a) Pension plan adjustments, net of tax Derivatives designated in a hedging relationship, net of tax Total Balance at February 28, 2018 $ (13,027 ) $ (24 ) $ (786 ) $ (385 ) $ (14,222 ) Other comprehensive (loss) income before reclassifications (2,020 ) — 36 280 (1,704 ) Reclassified from accumulated other comprehensive income (loss) — 24 — 162 186 Net current-period other comprehensive (loss) income (2,020 ) 24 36 442 (1,518 ) Balance at May 31, 2018 $ (15,047 ) $ — $ (750 ) $ 57 $ (15,740 ) |
Supplemental Cash Flow Inform36
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
May 31, 2018 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | The following is supplemental information relating to the Unaudited Consolidated Statements of Cash Flows, including continuing and discontinued operations: Three Months Ended 2018 2017 Non-cash investing and financing activities: Capital expenditures funded by long-term obligations $ — $ 1,917 Cash paid during the period: Interest (excluding bank charges) $ 346 $ 1,299 Income taxes (net of refunds) 1,851 53 |
Accounting for Stock Based Co37
Accounting for Stock Based Compensation (Tables) | 3 Months Ended |
May 31, 2018 | |
Accounting for Stock Based Compensation [Abstract] | |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | The following table presents a summary of the Company's restricted stock activity for the three months ended May 31, 2018 : Number of Shares Weighted Average Grant Date Fair Value Balance at February 28, 2018 439,299 $ 7.08 Granted — — Forfeited — — Balance at May 31, 2018 439,299 $ 7.08 Vested and unissued at May 31, 2018 117,049 $ 10.58 |
Goodwill and Intangible Asset38
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
May 31, 2018 | |
Goodwill and Intangible Assets [Abstract] | |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | he estimated aggregate amortization expense for continuing operations for all amortizable intangibles for May 31 of each of the succeeding years is as follows: Year Amount 2019 $ 6,307 2020 6,253 2021 6,043 2022 5,892 2023 5,588 |
Schedule of Goodwill [Table Text Block] | The change in goodwill pertaining to continuing operations by segment is as follows: Automotive: Amount Beginning balance at March 1, 2018 $ 8,252 Activity during the period — Balance at May 31, 2018 $ 8,252 Gross carrying amount at May 31, 2018 $ 8,252 Accumulated impairment charge — Net carrying amount at May 31, 2018 $ 8,252 Premium Audio: Beginning balance at March 1, 2018 $ 46,533 Activity during the period — Balance at May 31, 2018 $ 46,533 Gross carrying amount at May 31, 2018 $ 78,696 Accumulated impairment charge (32,163 ) Net carrying amount at May 31, 2018 $ 46,533 Total Goodwill, net $ 54,785 |
Schedule of Intangible Assets and Goodwill [Table Text Block] | At May 31, 2018 , intangible assets consisted of the following: Gross Carrying Value Accumulated Amortization Total Net Book Value Finite-lived intangible assets: Customer relationships $ 49,916 $ 27,385 $ 22,531 Trademarks/Tradenames 415 402 13 Developed technology 31,290 7,482 23,808 Patents 2,803 2,155 648 License 1,400 1,400 — Contract 2,141 1,878 263 Total finite-lived intangible assets $ 87,965 $ 40,702 47,263 Indefinite-lived intangible assets Trademarks 101,012 Total net intangible assets $ 148,275 At February 28, 2018 , intangible assets consisted of the following: Gross Carrying Value Accumulated Amortization Total Net Book Value Finite-lived intangible assets: Customer relationships $ 50,249 $ 26,807 $ 23,442 Trademarks/Tradenames 415 400 15 Developed technology 31,290 6,802 24,488 Patents 2,830 2,138 692 License 1,400 1,400 — Contract 2,141 1,849 292 Total finite-lived intangible assets $ 88,325 $ 39,396 48,929 Indefinite-lived intangible assets Trademarks 101,391 Total net intangible assets $ 150,320 |
Equity Investments (Tables)
Equity Investments (Tables) | 3 Months Ended |
May 31, 2018 | |
Note 10. Equity Investments [Abstract] | |
Equity Method Investment, Summarized Financial Information [Abstract] | The following presents summary financial information for ASA. Such summary financial information has been provided herein based upon the individual significance of ASA to the consolidated financial information of the Company. May 31, February 28, Current assets $ 44,646 $ 42,318 Non-current assets 6,810 7,095 Current liabilities 7,002 5,699 Members' equity 44,454 43,714 Three Months Ended 2018 2017 Net sales $ 25,081 $ 24,895 Gross profit 8,477 7,983 Operating income 3,579 3,573 Net income 3,628 3,606 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
May 31, 2018 | |
Inventory [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories by major category are as follows: May 31, February 28, Raw materials $ 28,909 $ 28,071 Work in process 2,546 2,485 Finished goods 86,889 87,436 Inventory, net $ 118,344 $ 117,992 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 3 Months Ended |
May 31, 2018 | |
Financing Arrangements [Abstract] | |
Schedule of Debt [Table Text Block] | The Company has the following financing arrangements: May 31, February 28, Debt Domestic credit facility (a) $ — $ — Florida mortgage (b) 8,483 8,613 Euro asset-based lending obligation (c) 6,450 6,119 Schwaiger mortgage (d) 378 468 Voxx Germany mortgage (e) 3,305 3,665 Total debt 18,616 18,865 Less: current portion of long-term debt 8,010 7,730 Long-term debt 10,606 11,135 Debt issuance costs 2,453 2,659 Total long-term debt, net of debt issuance costs $ 8,153 $ 8,476 |
Other Income (Tables)
Other Income (Tables) | 3 Months Ended |
May 31, 2018 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Nonoperating Income (Expense) [Table Text Block] | Other income (expense) is comprised of the following: Three Months Ended 2018 2017 Foreign currency gain (loss) $ 335 $ (832 ) Interest income 206 15 Rental income 121 144 Miscellaneous (1 ) (334 ) Total other, net $ 661 $ (1,007 ) |
Lease Obligations (Tables)
Lease Obligations (Tables) | 3 Months Ended |
May 31, 2018 | |
Lease Obligations [Abstract] | |
Schedule of Minimum Future Payment of Capital and Operating Lease [Table Text Block] | At May 31, 2018 , the Company was obligated under non-cancelable operating leases for equipment, as well as warehouse and office facilities for minimum annual rental payments for continuing operations, as follows: Operating Leases 2019 $ 1,383 2020 614 2021 414 2022 367 2023 211 Thereafter 195 Total minimum lease payments $ 3,184 |
Capital Structure (Tables)
Capital Structure (Tables) | 3 Months Ended |
May 31, 2018 | |
Capital Structure [Abstract] | |
Schedule of Capital Units [Table Text Block] | The Company's capital structure is as follows: Shares Authorized Shares Outstanding Security Par Value May 31, February 28, May 31, February 28, Voting Rights per Share Liquidation Rights Preferred Stock $ 50.00 50,000 50,000 — — — $50 per share Series Preferred Stock $ 0.01 1,500,000 1,500,000 — — — — Class A Common Stock $ 0.01 60,000,000 60,000,000 21,938,100 21,938,100 1 Ratably with Class B Class B Common Stock $ 0.01 10,000,000 10,000,000 2,260,954 2,260,954 10 Ratably with Class A Treasury Stock at cost at cost 2,168,094 2,168,094 N/A N/A N/A |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) - Variable Interest Entity, Primary Beneficiary [Member] | 3 Months Ended |
May 31, 2018 | |
Condensed Balance Sheet [Table Text Block] | May 31, 2018 February 28, 2018 Assets ( unaudited ) Current assets: Cash and cash equivalents $ 125 $ (101 ) Accounts receivable, net 243 128 Inventory, net (10 ) (119 ) Receivables from vendors 1 — Prepaid expenses and other current assets 63 117 Total current assets 422 25 Property, plant and equipment, net 166 186 Intangible assets, net 35,360 36,126 Other assets 242 119 Total assets $ 36,190 $ 36,456 Liabilities and Partners' Equity Current liabilities: Accounts payable $ 6,604 $ 4,610 Accrued expenses and other current liabilities 1,049 2,557 Current portion of debt 37,106 — Total current liabilities 44,759 7,167 Long-term debt — 33,722 Other long-term liabilities 1,200 1,200 Total liabilities 45,959 42,089 Commitments and contingencies Partners' equity: Capital 41,416 41,416 Retained earnings (51,185 ) (47,049 ) Total partners' equity (9,769 ) (5,633 ) Total liabilities and partners' equity $ 36,190 $ 36,456 |
Condensed Income Statement [Table Text Block] | Revenue and Expenses of EyeLock LLC The following table sets forth the revenues and expenses of EyeLock LLC that were included in our Unaudited Consolidated Statements of Operations and Comprehensive (Loss) Income for the three months ended May 31, 2018 and 2017, respectively: Three Months Ended 2018 2017 Net sales $ 123 $ 64 Cost of sales 10 (22 ) Gross profit 113 86 Operating expenses: Selling 328 593 General and administrative 1,226 1,658 Engineering and technical support 1,790 2,033 Total operating expenses 3,344 4,284 Operating loss (3,231 ) (4,198 ) Interest and bank charges (905 ) (609 ) Loss before income taxes (4,136 ) (4,807 ) Income tax expense — — Net loss $ (4,136 ) $ (4,807 ) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
May 31, 2018 | |
Segment Reporting Information [Line Items] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Segment data for each of the Company's segments are presented below: Automotive Premium Audio Consumer Accessories Corporate/ Eliminations Total Three Months Ended May 31, 2018 Net sales $ 39,646 $ 32,389 $ 28,743 $ 77 $ 100,855 Equity in income of equity investees 1,814 — — — 1,814 Interest expense and bank charges 245 1,791 1,790 (2,726 ) 1,100 Depreciation and amortization expense 239 836 1,113 774 2,962 Income (loss) before income taxes 4,514 1,646 (7,468 ) (2,357 ) (3,665 ) Three Months Ended May 31, 2017 Net sales $ 37,023 $ 37,728 $ 39,928 $ 144 $ 114,823 Equity in income of equity investees 1,803 — — — 1,803 Interest expense and bank charges 86 1,944 1,712 (1,950 ) 1,792 Depreciation and amortization expense 269 883 1,164 723 3,039 Income (loss) before income taxes 3,546 (3,871 ) (7,125 ) (2,662 ) (10,112 ) |
Product Warranties (Tables)
Product Warranties (Tables) | 3 Months Ended |
May 31, 2018 | |
Product Warranty Liability [Line Items] | |
Schedule of Product Warranty Liability [Table Text Block] | The following table provides a summary of the activity with respect to product warranties and product repair costs. Liabilities for product warranties and product repair costs are included within accrued expenses and other current liabilities on the Consolidated Balance Sheets. Three Months Ended 2018 2017 Opening balance $ 6,233 $ 5,608 Liabilities acquired during acquisition — 500 Liabilities accrued for warranties accrued during the period 1,500 2,032 Balances transferred (a) (832 ) — Warranties paid during the period (1,976 ) (2,213 ) Ending balance $ 4,925 $ 5,927 (a) In conjunction with the implementation of ASC Topic 606, Revenue from Contracts with Customers (see Note 23), the Company recorded a refund liability, representing the amount of consideration received for products sold that the Company expects to refund to customers, as well as a corresponding return asset that reflects the Company's right to receive goods back from customers. The return asset is calculated as the carrying amount of goods at the time of sale, less any expected costs to recover the goods and any expected reduction in value and is included in prepaid expenses and other current assets on the Unaudited Consolidated Balance Sheet at May 31, 2018 . The balance above represents amounts that would reduce the value of inventory returned to the Company and has been reclassified to the return asset in order to properly reflect the value of the inventory the Company expects to receive back from customers. |
Revenue from Contracts with C48
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
May 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | Disaggregation of Revenue The Company operates in three reportable segments: Automotive, Premium Audio and Consumer Accessories. ASC Topic 606 requires further disaggregation of an entity’s revenue. In the following table, the Company's net sales are disaggregated accordingly for the three months ended May 31, 2018 and 2017 : Three Months Ended 2018 2017 Automotive Segment Original Equipment Manufacturer Customers $ 23,085 $ 19,809 Aftermarket Customers 16,561 17,214 Total Automotive Segment 39,646 37,023 Premium Audio Segment Retail Customers 31,204 36,083 Commercial Customers 1,185 1,645 Total Premium Audio Segment 32,389 37,728 Consumer Accessories Segment Retail Customers 28,743 39,928 Total Consumer Accessories Segment 28,743 39,928 Corporate/Eliminations 77 144 Total Net Sales $ 100,855 $ 114,823 |
Basis of Presentation (Details)
Basis of Presentation (Details) | 3 Months Ended |
May 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of Reportable Segments | 3 |
Acquisitions (Details)
Acquisitions (Details) $ / shares in Units, € in Thousands, $ in Thousands | Apr. 18, 2017USD ($) | May 31, 2018USD ($)$ / shares | May 31, 2017USD ($)$ / shares | Feb. 28, 2018USD ($) | Aug. 31, 2017USD ($) | Aug. 31, 2017EUR (€) | Feb. 28, 2017USD ($) |
Depreciation and Amortization, Discontinued Operations | $ 1,406 | ||||||
Share-based Compensation | $ 107 | 142 | |||||
Disposal Group, Including Discontinued Operation, Revenue | 44,279 | ||||||
Disposal Group, Including Discontinued Operation, Costs of Goods Sold | 30,685 | ||||||
Disposal Group, Including Discontinued Operation, Gross Profit (Loss) | 13,594 | ||||||
Disposal Group, Including Discontinued Operation, Operating Expense | 12,316 | ||||||
Disposal Group, Including Discontinued Operation, Operating Income (Loss) | 1,278 | ||||||
Disposal Group, Including Discontinued Operation, Interest Expense | (122) | ||||||
Disposal Group, Including Discontinued Operation, Other Income | (12) | ||||||
Disposal Group, Including Discontinued Operation, Other Expense | 134 | ||||||
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | 1,144 | ||||||
Discontinued Operation, Tax Effect of Discontinued Operation | 3,366 | ||||||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | $ 0 | (2,222) | |||||
Disposal Group, Including Discontinued Operation, General and Administrative Expense | $ 6,996 | ||||||
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic Share | $ / shares | $ 0 | $ (0.09) | |||||
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Diluted Share | $ / shares | $ 0 | $ (0.09) | |||||
Disposal Group, Including Discontinued Operation, Cash and Cash Equivalents | $ 5,085 | $ 6,844 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | $ 1,444 | ||||||
Business Combination, Consideration Transferred | 1,814 | ||||||
Goodwill | 880 | $ 54,785 | $ 54,785 | ||||
Capital Lease Obligations, Noncurrent | 852 | 699 | |||||
Deferred Compensation Liability, Classified, Noncurrent | 2,769 | $ 3,369 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 520 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 2,844 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other | 500 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 500 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 2,344 | ||||||
Disposal Group, Including Discontinued Operation, Consideration | $ 177,000 | € 148,500 | |||||
Capital Expenditure, Discontinued Operations | 1,222 | ||||||
Capital Expenditures Incurred but Not yet Paid | $ 0 | 1,917 | |||||
Fee payable for future net sales | 2.00% | ||||||
Business Combination, Contingent Consideration, Liability | $ 530 | ||||||
Selling and Marketing Expense [Member] | |||||||
Disposal Group, Including Discontinued Operation, Operating Expense | 1,382 | ||||||
Other Operating Income (Expense) [Member] | |||||||
Disposal Group, Including Discontinued Operation, Operating Expense | 3,938 | ||||||
Discontinued Operations, Disposed of by Sale [Member] | |||||||
Capital Expenditures Incurred but Not yet Paid | 1,802 | ||||||
Discontinued Operations [Member] | |||||||
Share-based Compensation | $ 23 |
Net Income Per Common Share (De
Net Income Per Common Share (Details) | 3 Months Ended | |||
May 31, 2018shares | Nov. 30, 2017shares | May 31, 2017shares | Nov. 30, 2016shares | |
Net Income Per Common Share [Abstract] | ||||
Reconciling Items to Basic and Diluted EPS | 0 | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 439,299 | 553,693 | ||
Weighted-average common shares outstanding | 24,316,103 | 24,160,324 | ||
Weighted Average Number Diluted Shares Outstanding Adjustment | 0 | 0 | ||
Weighted-average common shares and potential common shares outstanding | 24,316,103 | 24,160,324 |
Fair Value Measurements Fair 52
Fair Value Measurements Fair Value Hierarchy (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
May 31, 2018 | May 31, 2017 | Feb. 28, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Assets (Liabilities), at Fair Value, Net | $ (109) | $ (262) | |
Cost Method Investments, Fair Value Disclosure | 540 | 547 | |
Cash and Cash Equivalents, Fair Value Disclosure | 49,827 | 51,740 | |
Investments, Fair Value Disclosure | 3,373 | 4,167 | |
Gain (Loss) on Fair Value Hedge Ineffectiveness, Net | 33 | $ (43) | |
Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Assets (Liabilities), at Fair Value, Net | 0 | 0 | |
Cost Method Investments, Fair Value Disclosure | 0 | 0 | |
Cash and Cash Equivalents, Fair Value Disclosure | 49,827 | 51,740 | |
Investments, Fair Value Disclosure | 2,833 | 3,620 | |
Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Assets (Liabilities), at Fair Value, Net | (109) | (262) | |
Cost Method Investments, Fair Value Disclosure | 0 | 0 | |
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 | |
Investments, Fair Value Disclosure | 0 | 0 | |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative, Notional Amount | 8,483 | ||
Trading Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments, Fair Value Disclosure | 2,833 | 3,620 | |
Trading Securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments, Fair Value Disclosure | 2,833 | 3,620 | |
Trading Securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments, Fair Value Disclosure | $ 0 | $ 0 |
Fair Value Measurements Fair 53
Fair Value Measurements Fair Values (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
May 31, 2018 | May 31, 2017 | Feb. 28, 2018 | Jul. 20, 2015 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Prepaid Expense and Other Assets, Current | $ 17,228 | $ 14,007 | ||
Derivative Assets (Liabilities), at Fair Value, Net | (109) | (262) | ||
Derivative, Fixed Interest Rate | 3.48% | |||
Gain (Loss) on Fair Value Hedge Ineffectiveness, Net | 33 | $ (43) | ||
Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Accrued Liabilities | 0 | (227) | ||
Prepaid Expense and Other Assets, Current | 133 | 0 | ||
Derivative, Notional Amount | 7,200 | |||
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Other Assets | (24) | $ (35) | ||
Derivative, Notional Amount | $ 8,483 |
Fair Value Measurements Cash Fl
Fair Value Measurements Cash Flow Hedging Activity (Details) $ in Thousands | 3 Months Ended | ||||
May 31, 2018USD ($) | Nov. 30, 2017USD ($) | May 31, 2017USD ($) | Nov. 30, 2016USD ($) | Feb. 28, 2018USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Investments, Fair Value Disclosure | $ 3,373 | $ 4,167 | |||
Maximum length of time - recognition of settled forward contracts into earnings | 12 months | ||||
Number of Foreign Currency Derivatives Held | 0 | ||||
Gain (Loss) on Fair Value Hedge Ineffectiveness, Net | $ 33 | $ (43) | |||
Foreign Exchange Contract [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | $ 366 | $ (733) | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (235) | 274 | |||
Derivative, Net Hedge Ineffectiveness Gain (Loss) | 33 | (43) | |||
Interest Rate Swap [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | 11 | (44) | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | 0 | |||
Derivative, Net Hedge Ineffectiveness Gain (Loss) | $ 0 | $ 0 | |||
Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Notional Amount of Foreign Currency Derivatives | 7,200 | ||||
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Notional Amount of Foreign Currency Derivatives | $ 8,483 | ||||
Maximum [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, Remaining Maturity | 9 months | ||||
Minimum [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, Remaining Maturity | 1 month | ||||
Trading Securities [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Investments, Fair Value Disclosure | $ 2,833 | 3,620 | |||
Fair Value, Inputs, Level 1 [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Investments, Fair Value Disclosure | 2,833 | 3,620 | |||
Fair Value, Inputs, Level 1 [Member] | Trading Securities [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Investments, Fair Value Disclosure | $ 2,833 | $ 3,620 |
Investment Securities (Details)
Investment Securities (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
May 31, 2018USD ($)Rate | May 31, 2017USD ($) | Feb. 28, 2018USD ($) | |
Gain (Loss) on Investments [Line Items] | |||
Trading Securities, Equity | $ 2,833 | ||
Cumulative Effect on Retained Earnings, before Tax | 24 | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 24 | ||
Trading Securities, Cost | $ 3,620 | ||
Marketable Securities | 2,833 | 3,620 | |
Cost Method Investments, Original Cost | 540 | ||
Long-term Investments | 3,373 | 4,167 | |
Cost-method Investments, Realized Gain (Loss) | 0 | ||
Investments | 4,167 | ||
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities | $ 0 | ||
Cost Method Investments | 547 | ||
Notes, Loans and Financing Receivable, Gross, Noncurrent | $ 12,588 | 10,888 | |
Loans Receivable with Fixed Rates of Interest | Rate | 8.00% | ||
Investments, Fair Value Disclosure | $ 3,373 | 4,167 | |
Rx Networks [Member] | |||
Gain (Loss) on Investments [Line Items] | |||
Cost Method Investment, Owndership Percentage | 8.10% | ||
Eye See 360 [Member] | |||
Gain (Loss) on Investments [Line Items] | |||
Cost Method Investments | 0 | ||
Fathom [Member] [Domain] | |||
Gain (Loss) on Investments [Line Items] | |||
Cost Method Investments | $ 540 | ||
Cost-method Investments [Member] | |||
Gain (Loss) on Investments [Line Items] | |||
Cost Method Investments, Original Cost | 547 | ||
Available-for-sale Securities [Member] | |||
Gain (Loss) on Investments [Line Items] | |||
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | ||
Venezuelan bolívar fuerte | |||
Gain (Loss) on Investments [Line Items] | |||
Foreign Currency Exchange Rate, Translation | 80,000,000 | ||
Fair Value Measurement [Domain] | |||
Gain (Loss) on Investments [Line Items] | |||
Trading Securities, Fair Value Disclosure | 3,620 | ||
Marketable Securities | 3,620 | ||
Investments, Fair Value Disclosure | $ 4,167 |
Other Comprehensive Income (Det
Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
May 31, 2018 | May 31, 2017 | Feb. 28, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | $ (15,047) | $ (13,027) | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment, after Tax | 36 | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | 280 | ||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Reclassification Adjustments, Net of Tax | 0 | ||
Total accumulated other comprehensive loss | 15,740 | (14,222) | |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (2,020) | ||
Other Comprehensive Income (Loss) before Reclassifications, Tax | (2,020) | ||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | 57 | (385) | |
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax | (750) | (786) | |
Accumulated Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | 0 | $ (24) | |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (1,704) | ||
Translation Adjustment Functional to Reporting Currency, Loss (Gain), Reclassified to Earnings, Net of Tax | 0 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 186 | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 162 | ||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, after Tax | 0 | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 24 | ||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | 442 | $ (1,052) | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | 36 | (120) | |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | 24 | (4) | |
Other Comprehensive Income (Loss), Net of Tax | (1,518) | 6,183 | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax | 0 | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | 186 | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | (2,020) | $ 7,359 | |
foreign currency translation gain (loss) [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | (1,086) | ||
foreign currency remeasurement gain (loss) [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | $ (934) |
Supplemental Cash Flow Inform57
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
May 31, 2018 | May 31, 2017 | |
Other Significant Noncash Transactions [Line Items] | ||
Capital expenditures funded by long-term obligations | $ 0 | $ 1,917 |
Non-cash investing activities: | ||
Interest (excluding bank charges) | 346 | 1,299 |
Income taxes (net of refunds) | $ 1,851 | $ 53 |
Accounting for Stock Based Co58
Accounting for Stock Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | Jul. 31, 2017 | May 31, 2018 | May 31, 2017 | Feb. 28, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price | $ 6.52 | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | $ 107 | $ 119 | ||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 117,049 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 7.08 | $ 7.08 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 74,156 | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Weighted Average Grant Date Fair Value | $ 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 439,299 | 439,299 | ||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 940 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Weighted Average Grant Date Fair Value | $ 10.58 |
Supply Chain Financing (Details
Supply Chain Financing (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2017 | Nov. 30, 2016 | |
Supply Chain Financing [Abstract] | ||
Proceeds from Sale and Collection of Receivables | $ 22,979 | $ 32,360 |
Research and Development (Detai
Research and Development (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2017 | Nov. 30, 2016 | |
Research and Development [Abstract] | ||
Research and Development Expense (Excluding Acquired in Process Cost) | $ 2,358 | $ 2,786 |
Goodwill and Intangible Asset61
Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
May 31, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | Feb. 28, 2018 | Apr. 18, 2017 | |
Goodwill and Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 6,307 | ||||
Goodwill | 54,785 | $ 54,785 | $ 880 | ||
Finite-Lived Intangible Assets, Gross | 87,965 | 88,325 | |||
Finite-Lived Intangible Assets, Accumulated Amortization | 40,702 | 39,396 | |||
Finite-Lived Intangible Assets, Net | 47,263 | 48,929 | |||
Intangible Assets, Net (Excluding Goodwill) | 148,275 | 150,320 | |||
Depreciation and amortization | $ 1,582 | $ 1,613 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 6,253 | ||||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 6,043 | ||||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 5,892 | ||||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 5,588 | ||||
Customer Relationships [Member] | |||||
Goodwill and Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | 49,916 | 50,249 | |||
Finite-Lived Intangible Assets, Accumulated Amortization | 27,385 | 26,807 | |||
Finite-Lived Intangible Assets, Net | 22,531 | 23,442 | |||
Trademarks and Tradenames [Member] | |||||
Goodwill and Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | 415 | 415 | |||
Finite-Lived Intangible Assets, Accumulated Amortization | 402 | 400 | |||
Finite-Lived Intangible Assets, Net | 13 | 15 | |||
Patented Technology [Member] | |||||
Goodwill and Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | 31,290 | 31,290 | |||
Finite-Lived Intangible Assets, Accumulated Amortization | 7,482 | 6,802 | |||
Finite-Lived Intangible Assets, Net | 23,808 | 24,488 | |||
Patents [Member] | |||||
Goodwill and Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | 2,803 | 2,830 | |||
Finite-Lived Intangible Assets, Accumulated Amortization | 2,155 | 2,138 | |||
Finite-Lived Intangible Assets, Net | 648 | 692 | |||
Licensing Agreements [Member] | |||||
Goodwill and Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | 1,400 | 1,400 | |||
Finite-Lived Intangible Assets, Accumulated Amortization | 1,400 | 1,400 | |||
Finite-Lived Intangible Assets, Net | 0 | 0 | |||
Contractual Rights [Member] | |||||
Goodwill and Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | 2,141 | 2,141 | |||
Finite-Lived Intangible Assets, Accumulated Amortization | 1,878 | 1,849 | |||
Finite-Lived Intangible Assets, Net | 263 | 292 | |||
Trademarks [Member] | |||||
Goodwill and Intangible Assets [Line Items] | |||||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 101,012 | 101,391 | |||
Automotive [Member] | |||||
Goodwill and Intangible Assets [Line Items] | |||||
Goodwill | 8,252 | 8,252 | |||
Goodwill, Acquired During Period | 0 | ||||
Goodwill, Gross | 8,252 | ||||
Goodwill, Impaired, Accumulated Impairment Loss | 0 | ||||
Premium Audio [Member] | |||||
Goodwill and Intangible Assets [Line Items] | |||||
Goodwill | 46,533 | $ 46,533 | |||
Goodwill, Acquired During Period | 0 | ||||
Goodwill, Gross | 78,696 | ||||
Goodwill, Impaired, Accumulated Impairment Loss | $ (32,163) |
Equity Investments (Details)
Equity Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
May 31, 2018 | May 31, 2017 | Feb. 28, 2018 | |
Equity in income of equity investees | $ 1,814 | $ 1,803 | |
Equity Method Investment, Summarized Financial Information, Current Assets | 44,646 | $ 42,318 | |
Equity Method Investment, Summarized Financial Information, Noncurrent Assets | 6,810 | 7,095 | |
Equity Method Investment, Summarized Financial Information, Current Liabilities | 7,002 | 5,699 | |
Equity Method Investment Summarized Financial Information, Equity | 44,454 | $ 43,714 | |
Equity Method Investment, Summarized Financial Information, Revenue | 25,081 | 24,895 | |
Equity Method Investment, Summarized Financial Information, Gross Profit (Loss) | 8,477 | 7,983 | |
Equity Method Investment, Summarized Financial Information, Income (Loss) from Continuing Operations | 3,579 | 3,573 | |
Equity Method Investment, Summarized Financial Information, Net Income (Loss) | $ 3,628 | $ 3,606 | |
ASA Electronics, LLC [Member] | |||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
May 31, 2018 | May 31, 2017 | Feb. 28, 2018 | |
Effective Income Tax Rate, Continuing Operations | 30.40% | 73.50% | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | ||
Operating Loss Carryforwards, Limitations on Use | 0.8 | ||
Income Tax Expense (Benefit) | $ (1,113) | $ (7,428) | |
Unrecognized Tax Benefits, Period Increase (Decrease) | 27 | $ 11 | |
Liability for Uncertainty in Income Taxes, Noncurrent | $ 2,163 | $ 2,191 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | May 31, 2018 | Feb. 28, 2018 |
Inventory [Abstract] | ||
Inventory, Raw Materials, Net of Reserves | $ 28,909 | $ 28,071 |
Inventory, Work in Process, Net of Reserves | 2,546 | 2,485 |
Inventory, Finished Goods, Net of Reserves | 86,889 | 87,436 |
Inventory, net | $ 118,344 | $ 117,992 |
Financing Arrangements (Details
Financing Arrangements (Details) € in Thousands, $ in Thousands | 3 Months Ended | |||||||||
May 31, 2018USD ($)Rate | May 31, 2017USD ($) | Feb. 28, 2018USD ($) | Apr. 26, 2016USD ($) | Jul. 20, 2015Rate | Jul. 06, 2015USD ($) | Jan. 03, 2013Rate | Jan. 09, 2012Rate | Oct. 23, 2000EUR (€) | ||
Debt Instrument [Line Items] | ||||||||||
Long-term Debt | $ 8,153 | $ 8,476 | ||||||||
Debt, Current | 8,010 | 7,730 | ||||||||
Long-term Debt, Excluding Current Maturities | 10,606 | 11,135 | ||||||||
Debt Issuance Costs, Net | 2,453 | 2,659 | ||||||||
Long-term Line of Credit | 0 | |||||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 84,239 | |||||||||
Debt Instrument, Basis Spread on Variable Rate | Rate | 1.54% | |||||||||
Debt Instrument, Interest Rate, Effective Percentage | Rate | 5.50% | |||||||||
Debt Issuance Costs, Gross | $ 332 | |||||||||
Line of Credit Facility, Commitment Fee Amount | $ 147 | $ 61 | ||||||||
Long-term Construction Loan | $ 9,995 | |||||||||
Debt Instrument, Description of Variable Rate Basis | 0.7 | |||||||||
Derivative, Fixed Interest Rate | Rate | 3.48% | |||||||||
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] | Maximum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | Rate | 2.25% | |||||||||
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% | |||||||||
Debt [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt, Long-term and Short-term, Combined Amount | $ 18,616 | 18,865 | ||||||||
Mortgages [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Issuance Costs, Net | 241 | |||||||||
Amortization of Debt Issuance Costs | 8 | 7 | ||||||||
Revolving Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Issuance Costs, Net | 2,213 | |||||||||
Amortization of Debt Issuance Costs | 198 | $ 198 | ||||||||
Corporate, Non-Segment [Member] | Mortgages [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt, Long-term and Short-term, Combined Amount | [1] | 8,483 | 8,613 | |||||||
Corporate, Non-Segment [Member] | Revolving Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt, Long-term and Short-term, Combined Amount | [2] | $ 0 | 0 | |||||||
Corporate, Non-Segment [Member] | Mortgages [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Effective Percentage | Rate | 3.52% | |||||||||
Schwaiger [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | Rate | 3.75% | |||||||||
Schwaiger [Member] | Mortgages [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt, Long-term and Short-term, Combined Amount | [1] | $ 378 | 468 | |||||||
Audiovox Germany [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | Rate | 1.60% | |||||||||
Debt Instrument, Interest Rate, Effective Percentage | Rate | 1.25% | |||||||||
Short-term Debt | € | [3] | € 8,000 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | Rate | 2.85% | |||||||||
Audiovox Germany [Member] | Mortgages [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt, Long-term and Short-term, Combined Amount | [4] | $ 3,305 | 3,665 | |||||||
Audiovox Germany [Member] | Bank Loan Obligations [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt, Long-term and Short-term, Combined Amount | [3] | $ 6,450 | $ 6,119 | |||||||
Audiovox Germany [Member] | Bank Loan Obligations [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Portion of Accounts Receivable Eligible for Factoring | 60.00% | |||||||||
Long-term Debt [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 15,000 | |||||||||
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 | |||||||||
Letter of Credit [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 15,000 | |||||||||
Loans [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 15,000 | |||||||||
Foreign Line of Credit [Member] | Audiovox Germany [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | Rate | 2.30% | |||||||||
Debt Instrument, Interest Rate, Effective Percentage | Rate | 1.95% | |||||||||
[1] | (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. | |||||||||
[2] | (a) Domestic Credit Facility The Company has a senior secured credit facility (the "Credit Facility") that 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 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 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 16(b)). In conjunction with the sale of Hirschmann on August 31, 2017 (see Note 2), the Company paid down substantially all of the outstanding balance of the revolving credit facility, as well as the entire outstanding balance of the term loan, which is not renewable. As of May 31, 2018, there was no balance outstanding under the revolving credit facility. The availability under the revolving credit line of the Credit Facility was $84,239 as of May 31, 2018.All amounts outstanding under the 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 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. The commitments under the 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 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. As of May 31, 2018, the weighted average interest rate on the facility was 5.50%.The 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 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; or (xv) consign or sell any of their inventory on certain terms. In addition, if excess availability under the 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, 2018, the Company was in compliance with all debt covenants, including cash dominion.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 Credit Agreement.Charges incurred on the unused portion of the Credit Facility during the three months ended May 31, 2018 totaled $147, compared to $61 during the three months ended May 31, 2017. These charges are included within interest and bank charges on the Unaudited Consolidated Statements of Operations and Comprehensive (Loss) Income. The Company has deferred financing costs related to the Credit Facility and a previous amendment and modification of the 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 Unaudited Consolidated Statements of Operations and Comprehensive (Loss) Income over the five-year term of the Credit Facility. During both the three months ended May 31, 2018 and 2017, the Company amortized $198 of these costs. The net unamortized balance of these deferred financing costs as of May 31, 2018 is $2,213. | |||||||||
[3] | (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% (3.52% at May 31, 2018) 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 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 Sheets and are being amortized through interest and bank charges in the Unaudited Consolidated Statements of Operations and Comprehensive (Loss) Income over the ten-year term of the Florida Mortgage. The Company amortized $8 of these costs during the three months ended May 31, 2018 and $7 during the three months ended May 31, 2017, respectively. The net unamortized balance of these deferred financing costs as of May 31, 2018 is $241.On July 20, 2015, the Company entered into an interest rate swap agreement in order to hedge interest rate exposure related to the Florida Mortgage and pays a fixed rate of 3.48% under the swap agreement (See Note 4). | |||||||||
[4] | (e) Voxx Germany MortgageThis balance represents a mortgage on the land and building housing Voxx Germany's headquarters in Pulheim, Germany, which was entered into in January 2013. The mortgage bears interest at 2.85%, payable in twenty-six quarterly installments through June 2019. |
Other Income (Details)
Other Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
May 31, 2018 | May 31, 2017 | |
Foreign Currency Transaction Gain (Loss), Realized | $ 335 | $ (832) |
Interest income | 206 | 15 |
Rental income | 121 | 144 |
Other Nonoperating Gains (Losses) | (1) | (334) |
Total other, net | $ 661 | $ (1,007) |
Foreign Currency (Details)
Foreign Currency (Details) number in Thousands, $ in Thousands | 3 Months Ended | |
May 31, 2018USD ($) | May 31, 2017USD ($) | |
Foreign Currency Translation Gain (Loss) | $ 335 | $ (832) |
Venezuelan bolívar fuerte | ||
Foreign Currency Exchange Rate, Translation | 80,000 | |
VENEZUELA | ||
Foreign Currency Translation Gain (Loss) | $ 3 | $ 84 |
Real Estate Investment Property, Net | $ 3,508 |
Lease Obligations (Details)
Lease Obligations (Details) $ in Thousands | May 31, 2018USD ($) |
Capital Leased Assets [Line Items] | |
Capital Lease Obligations | $ 1,278 |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 1,383 |
Operating Leases, Future Minimum Payments, Due in Two Years | 614 |
Operating Leases, Future Minimum Payments, Due in Three Years | 414 |
Operating Leases, Future Minimum Payments, Due in Four Years | 367 |
Operating Leases, Future Minimum Payments, Due in Five Years | 211 |
Operating Leases, Future Minimum Payments, Due Thereafter | 195 |
Operating Leases, Future Minimum Payments Due | $ 3,184 |
Capital Structure (Details)
Capital Structure (Details) - $ / shares | 3 Months Ended | |
May 31, 2018 | Feb. 28, 2018 | |
Capital Unit [Line Items] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 1,500,000 | 1,500,000 |
Preferred stock, shares outstanding | 0 | 0 |
Preferred Stock, Liquidation Preference Per Share | $ 50 | |
Treasury stock, shares | 2,168,094 | 2,168,094 |
Preferred Stock [Member] | ||
Capital Unit [Line Items] | ||
Preferred stock, par value | $ 50 | |
Preferred stock, shares authorized | 50,000 | 50,000 |
Preferred stock, shares outstanding | 0 | 0 |
Preferred Stock, Voting Rights | 0 | |
Series A Preferred Stock [Member] | ||
Capital Unit [Line Items] | ||
Preferred stock, par value | $ 0.01 | |
Preferred stock, shares authorized | 1,500,000 | 1,500,000 |
Preferred stock, shares outstanding | 0 | 0 |
Preferred Stock, Voting Rights | 0 | |
Common Class A [Member] | ||
Capital Unit [Line Items] | ||
Class A Common stock, par value | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 60,000,000 | 60,000,000 |
Common Stock, Shares, Outstanding | 21,938,100 | 21,938,100 |
Common Stock, Voting Rights | 1 | |
Common Class B [Member] | ||
Capital Unit [Line Items] | ||
Class A Common stock, par value | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Common Stock, Shares, Outstanding | 2,260,954 | 2,260,954 |
Common Stock, Voting Rights | 10 | |
Treasury Stock [Member] | ||
Capital Unit [Line Items] | ||
Treasury stock, shares | 2,168,094 | 2,168,094 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
May 31, 2018 | May 31, 2017 | Feb. 28, 2018 | |
Debt Instrument, Fee | 1.5 | ||
Cash and Cash Equivalents, at Carrying Value | $ (49,827) | $ (51,740) | |
Accounts Receivable, Net, Current | 65,608 | 81,116 | |
Inventory, Net | (118,344) | (117,992) | |
Nontrade Receivables | 1,717 | 493 | |
Prepaid Expense and Other Assets, Current | 17,228 | 14,007 | |
Total current assets | 253,370 | 265,859 | |
Property, Plant and Equipment, Net | 63,835 | 65,259 | |
Other Assets, Noncurrent | 15,050 | 13,373 | |
Total assets | 560,939 | 575,644 | |
Accounts Payable, Current | 34,357 | 34,700 | |
Other Liabilities, Current | 32,660 | 36,350 | |
Current portion of long-term debt | 8,010 | 7,730 | |
Total current liabilities | 86,198 | 95,387 | |
Long-term Debt | 8,153 | 8,476 | |
Other Liabilities, Noncurrent | 3,085 | 3,187 | |
Total liabilities | 114,799 | 125,526 | |
Additional Paid in Capital | 296,502 | 296,395 | |
Retained Earnings (Accumulated Deficit) | 193,734 | 194,673 | |
Total stockholders' equity | 453,584 | 455,948 | |
Total liabilities and stockholders' equity | 560,939 | 575,644 | |
Revenue, Net | 100,855 | $ 114,823 | |
Cost of Goods Sold | (73,178) | (84,679) | |
Gross Profit | 27,677 | 30,144 | |
Selling Expense | 10,694 | 12,409 | |
General and Administrative Expense | 16,112 | 20,197 | |
Engineering and Technical Support Expense | 5,911 | 6,654 | |
Total operating expenses | 32,717 | 39,260 | |
Operating Income (Loss) | (5,040) | (9,116) | |
Interest and bank charges | (1,100) | (1,792) | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (3,665) | (10,112) | |
Income Tax Expense (Benefit) | (1,113) | (7,428) | |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (2,552) | (4,906) | |
Variable Interest Entity, Primary Beneficiary [Member] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 39,000 | ||
Debt Instrument, Interest Rate During Period | 10.00% | ||
Cash and Cash Equivalents, at Carrying Value | $ (125) | (101) | |
Accounts Receivable, Net, Current | 243 | 128 | |
Inventory, Net | (10) | (119) | |
Nontrade Receivables | 1 | 0 | |
Prepaid Expense and Other Assets, Current | 63 | 117 | |
Total current assets | 422 | 25 | |
Property, Plant and Equipment, Net | 166 | 186 | |
Intangible Assets, Net (Including Goodwill) | 35,360 | 36,126 | |
Other Assets, Noncurrent | 242 | 119 | |
Total assets | 36,190 | 36,456 | |
Accounts Payable, Current | 6,604 | 4,610 | |
Other Liabilities, Current | 1,049 | 2,557 | |
Current portion of long-term debt | 37,106 | 0 | |
Total current liabilities | 44,759 | 7,167 | |
Long-term Debt | 0 | 33,722 | |
Other Liabilities, Noncurrent | 1,200 | 1,200 | |
Total liabilities | 45,959 | 42,089 | |
Additional Paid in Capital | 41,416 | 41,416 | |
Retained Earnings (Accumulated Deficit) | (51,185) | (47,049) | |
Total stockholders' equity | (9,769) | (5,633) | |
Total liabilities and stockholders' equity | 36,190 | $ 36,456 | |
Revenue, Net | 123 | 64 | |
Cost of Goods Sold | (10) | (22) | |
Gross Profit | 113 | 86 | |
Selling Expense | 328 | 593 | |
General and Administrative Expense | 1,226 | 1,658 | |
Engineering and Technical Support Expense | 1,790 | 2,033 | |
Total operating expenses | 3,344 | 4,284 | |
Operating Income (Loss) | (3,231) | (4,198) | |
Interest and bank charges | (905) | (609) | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (4,136) | (4,807) | |
Income Tax Expense (Benefit) | 0 | 0 | |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ (4,136) | $ (4,807) |
Segment Reporting (Details)
Segment Reporting (Details) | 3 Months Ended | |
May 31, 2018USD ($) | May 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of Reportable Segments | 3 | |
Revenue, Net | $ 100,855,000 | $ 114,823,000 |
Income (Loss) from Equity Method Investments | 1,814,000 | 1,803,000 |
Interest and Debt Expense | 1,100,000 | 1,792,000 |
Depreciation and amortization | 2,962,000 | 3,039,000 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (3,665,000) | (10,112,000) |
Operating Segments [Member] | Automotive [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue, Net | 39,646,000 | 37,023,000 |
Income (Loss) from Equity Method Investments | 1,814,000 | 1,803,000 |
Interest and Debt Expense | 245,000 | 86,000 |
Depreciation and amortization | 239,000 | 269,000 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 4,514,000 | 3,546,000 |
Operating Segments [Member] | Premium Audio [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue, Net | 32,389,000 | 37,728,000 |
Income (Loss) from Equity Method Investments | 0 | 0 |
Interest and Debt Expense | 1,791,000 | 1,944,000 |
Depreciation and amortization | 836,000 | 883,000 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 1,646,000 | (3,871,000) |
Operating Segments [Member] | Consumer Accessories [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue, Net | 28,743,000 | 39,928,000 |
Income (Loss) from Equity Method Investments | 0 | 0 |
Interest and Debt Expense | 1,790,000 | 1,712,000 |
Depreciation and amortization | 1,113,000 | 1,164,000 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (7,468,000) | (7,125,000) |
Corporate, Non-Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue, Net | 77,000 | 144,000 |
Income (Loss) from Equity Method Investments | 0 | 0 |
Interest and Debt Expense | (2,726,000) | (1,950,000) |
Depreciation and amortization | 774,000 | 723,000 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (2,357,000) | $ (2,662,000) |
Intersegment Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 0 |
Contingencies and Derivative 72
Contingencies and Derivative Settlement (Details) $ in Thousands | 3 Months Ended |
May 31, 2018USD ($) | |
Contingencies [Abstract] | |
Litigation Settlement, Amount Awarded from Other Party | $ 2,681 |
Gain (Loss) Related to Litigation Settlement | 2,076 |
Other Prepaid Expense, Current | $ 605 |
New Accounting Pronouncements (
New Accounting Pronouncements (Details) - USD ($) $ in Thousands | May 31, 2018 | Feb. 28, 2018 |
New Accounting Pronouncements [Abstract] | ||
Debt Issuance Costs, Net | $ 2,453 | $ 2,659 |
Subsequent Event (Details)
Subsequent Event (Details) | 3 Months Ended |
May 31, 2018 | |
Subsequent Event [Line Items] | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% |
Product Warranties (Details)
Product Warranties (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
May 31, 2018 | May 31, 2017 | Feb. 28, 2018 | Feb. 28, 2017 | |
Product Warranty Liability [Line Items] | ||||
Standard Product Warranty Accrual | $ 4,925 | $ 5,927 | $ 6,233 | $ 5,608 |
Standard Product Warranty Accrual, Additions from Business Acquisition | 0 | 500 | ||
Standard Product Warranty Accrual, Increase for Warranties Issued | 1,500 | 2,032 | ||
Standard Product Warranty Accrual, Period Increase (Decrease) | (832) | 0 | ||
Standard Product Warranty Accrual, Decrease for Payments | $ (1,976) | $ (2,213) |
Revenue from Contracts with C76
Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | |
May 31, 2018 | May 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | $ 100,855 | $ 114,823 |
Contract with Customer, Liability | 0 | |
Revenue, Remaining Performance Obligation | 0 | |
Contract with Customer, Right to Recover Product | 1,654 | |
Contract with Customer, Refund Liability | 3,906 | |
Contract with Customer, Asset, Net | 0 | |
Operating Segments [Member] | Automotive [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 39,646 | 37,023 |
Operating Segments [Member] | Automotive [Member] | OEM [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 23,085 | 19,809 |
Operating Segments [Member] | Automotive [Member] | aftermarket [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 16,561 | 17,214 |
Operating Segments [Member] | Premium Audio [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 32,389 | 37,728 |
Operating Segments [Member] | Premium Audio [Member] | retail customer [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 31,204 | 36,083 |
Operating Segments [Member] | Premium Audio [Member] | commercial customer [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 1,185 | 1,645 |
Operating Segments [Member] | Consumer Accessories [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 28,743 | 39,928 |
Corporate, Non-Segment [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | $ 77 | $ 144 |
Uncategorized Items - voxx-2018
Label | Element | Value |
Cash and Cash Equivalents, at Carrying Value, Including Discontinued Operations | us-gaap_CashAndCashEquivalentsAtCarryingValueIncludingDiscontinuedOperations | $ 7,800,000 |
Cash and Cash Equivalents, at Carrying Value, Including Discontinued Operations | us-gaap_CashAndCashEquivalentsAtCarryingValueIncludingDiscontinuedOperations | $ 51,740,000 |