Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Sep. 30, 2013 | Nov. 12, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'TANDY BRANDS ACCESSORIES INC | ' |
Document Type | '10-Q | ' |
Current Fiscal Year End Date | '--06-30 | ' |
Entity Common Stock, Shares Outstanding | ' | 7,161,713 |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0000869487 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations and Comprehensive Loss (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Net sales | $19,919 | $25,871 |
Cost of goods sold | 14,380 | 17,692 |
Gross margin | 5,539 | 8,179 |
Selling, general and administrative expenses | 5,093 | 8,854 |
Depreciation and amortization | 347 | 483 |
Total operating expenses | 5,440 | 9,337 |
Operating income (loss) | 99 | -1,158 |
Interest expense | -1,133 | -292 |
Other (expense) income | -6 | 36 |
Loss before income taxes | -1,040 | -1,414 |
Income tax benefit | -82 | -129 |
Net loss | -958 | -1,285 |
Other comprehensive income (loss): | ' | ' |
Currency translation adjustments | 86 | 229 |
Total comprehensive loss | ($872) | ($1,056) |
Loss per share: | ' | ' |
Basic (in Dollars per share) | ($0.13) | ($0.18) |
Diluted (in Dollars per share) | ($0.13) | ($0.18) |
Weighted average common shares outstanding: | ' | ' |
Basic (in Shares) | 7,161 | 7,134 |
Diluted (in Shares) | 7,161 | 7,134 |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | |||
Current assets: | ' | ' | ' |
Cash and cash equivalents | $677 | $518 | $176 |
Accounts receivable, net | 6,407 | 4,605 | 11,703 |
Inventories, net | 31,048 | 21,361 | 49,943 |
Inventory deposits | 346 | 837 | 1,029 |
Other current assets | 2,177 | 1,757 | 3,093 |
Total current assets | 40,655 | 29,078 | 65,944 |
Property and equipment, net | 4,146 | 4,373 | 5,439 |
Other assets: | ' | ' | ' |
Intangibles | 989 | 1,100 | 3,936 |
Other assets | 1,704 | 625 | 893 |
Total other assets | 2,693 | 1,725 | 4,829 |
47,494 | 35,176 | 76,212 | |
Current liabilities: | ' | ' | ' |
Accounts payable | 6,725 | 9,294 | 18,907 |
Accrued compensation | 906 | 776 | 1,174 |
Accrued expenses | 1,655 | 2,204 | 1,623 |
Accrued restructuring charges | 1,105 | 2,086 | ' |
Senior credit facility and term loan | 15,097 | 9,058 | 24,380 |
Purchase order financing facility | 2,157 | ' | ' |
Notes payable - current | 1,072 | ' | ' |
Total current liabilities | 28,717 | 23,418 | 46,084 |
Other liabilities: | ' | ' | ' |
Notes payable - non-current | 7,905 | ' | ' |
Other liabilities | 4,113 | 4,150 | 4,218 |
Total other liabilities | 12,018 | 4,150 | 4,218 |
Common stock, $1.00 par value, 10,000 shares authorized, 7,162 shares, 7,130 shares and 7,134 shares issued and outstanding, respectively | 7,162 | 7,130 | 7,134 |
Additional paid-in capital | 34,132 | 34,141 | 34,148 |
Accumulated deficit | -36,105 | -35,147 | -17,255 |
Other comprehensive income | 1,570 | 1,484 | 1,883 |
Total stockholders' equity | 6,759 | 7,608 | 25,910 |
$47,494 | $35,176 | $76,212 |
Consolidated_Balance_Sheets_Un1
Consolidated Balance Sheets (Unaudited) (Parentheticals) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 |
In Thousands, except Per Share data, unless otherwise specified | |||
Preferred stock par value (in Dollars per share) | $1 | $1 | $1 |
Preferred stock, shares authorized | 1,000 | 1,000 | 1,000 |
Preferred stock, shares issued | 0 | 0 | ' |
Common stock par value (in Dollars per share) | $1 | $1 | ' |
Common stock, shares authorized | 10,000 | 10,000 | 10,000 |
Common stock, shares issued | 7,162 | 7,130 | 7,134 |
Common stock, shares outstanding | 7,162 | 7,130 | 7,134 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows used for operating activities: | ' | ' |
Net loss | ($958) | ($1,285) |
Adjustments to reconcile net loss to net cash used for operating activities: | ' | ' |
Deferred income taxes | 2 | -21 |
Doubtful accounts receivable provision | 2 | 10 |
Depreciation and amortization | 409 | 547 |
Stock compensation expense | 22 | 51 |
Amortization of debt costs | 136 | 31 |
Other | ' | -37 |
Changes in assets and liabilities: | ' | ' |
Accounts receivable | -1,792 | -4,626 |
Inventories | -9,641 | -21,075 |
Other assets | -1,621 | -381 |
Inventory deposits | 491 | 6,078 |
Accounts payable | 6,403 | 7,958 |
Accrued expenses and restructuring charges | -1,444 | -196 |
Net cash used for operating activities | -7,991 | -12,946 |
Cash flows used for investing activities: | ' | ' |
Purchases of property and equipment | -70 | -325 |
Sales of property and equipment | ' | 208 |
Net cash used for investing activities | -70 | -117 |
Cash flows provided by financing activities: | ' | ' |
Change in cash overdrafts | ' | 374 |
Borrowings under purchase order financing facility | 2,742 | ' |
Repayments under purchase order financing facility | -585 | ' |
Net borrowings under senior credit facility | 6,039 | 12,570 |
Net cash provided by financing activities | 8,196 | 12,944 |
Effect of exchange-rate changes on cash and cash equivalents | 24 | 78 |
Net increase (decrease) in cash and cash equivalents | 159 | -41 |
Cash and cash equivalents beginning of year | 518 | 217 |
Cash and cash equivalents end of period | 677 | 176 |
Supplemental disclosure of non-cash financing activities: | ' | ' |
Conversion of accounts payable to subordinated notes payable | $8,977 | ' |
Note_1_Accounting_Principles
Note 1 - Accounting Principles | 3 Months Ended |
Sep. 30, 2013 | |
Disclosure Text Block [Abstract] | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ' |
Note 1 - Accounting Principles | |
The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In our opinion, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. | |
The accompanying unaudited financial statements have been prepared on the basis of accounting principles applicable to a going concern, which contemplates the realization of assets and extinguishment of liabilities in the normal course of business. We have incurred net losses over the past two fiscal years and we have an accumulated deficit. Our financial results and liquidity forecasts were negatively impacted by lower than expected consumer point-of-sale purchases and retailer promotional activity in December 2012 in our gifts segment, which was markedly higher than both our expectations and historical levels. These factors raise substantial doubt about our ability to continue as a going concern and our independent registered public accounting firm included an explanatory paragraph in its audit report contained in our Form 10-K for the fiscal year ended June 30, 2013 that expresses doubt as to our ability to continue as a going concern. These financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. | |
The preparation of our unaudited consolidated financial statements requires the use of estimates that affect the reported value of assets, liabilities, revenues, and expenses. These estimates are based on historical experience and various other factors that we believe to be reasonable under the circumstances, the results of which form the basis for our conclusions. We continually evaluate the information used to make these estimates as the business and economic environment change, including evaluation of events subsequent to the end of the quarter through the financial statements issuance date. Actual results may differ from these estimates under different assumptions or conditions. Such differences could have a material impact on our future financial position, results of operations, and cash flows. | |
The consolidated balance sheet at June 30, 2013 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. These interim unaudited consolidated financial statements should be read in conjunction with the financial statements and the notes thereto included in our 2013 Annual Report on Form 10-K filed with the Securities and Exchange Commission. | |
Historically, our first and second quarter sales and operating results reflect a seasonal increase compared to the third and fourth quarters of our fiscal year. Sales and operating results for the first three months of fiscal 2014 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2014. | |
Note_2_Fair_Value_Measurements
Note 2 - Fair Value Measurements | 3 Months Ended |
Sep. 30, 2013 | |
Fair Value Disclosures [Abstract] | ' |
Fair Value Disclosures [Text Block] | ' |
Note 2 - Fair Value Measurements | |
We measure fair values using unadjusted quoted prices in active markets (Level 1 inputs), quoted prices for similar instruments in active or inactive markets, or other directly-observable factors (Level 2 inputs), or inputs that are unobservable and significant to the fair value measurement (Level 3 inputs). Our financial instruments consist primarily of cash, trade receivables and payables, and our credit facility. The carrying values of cash and trade receivables and payables are considered to be representative of their respective fair values. Our credit facility, which was entered into effective July 24, 2013 (and most recently amended September 26, 2013), bears interest at floating market interest rates; therefore, we believe the fair value of amounts borrowed approximates the carrying value. At September 30, 2013, June 30, 2013 and September 30, 2012, no other material financial assets or liabilities were measured at fair value. | |
Note_3_Restructuring_Plan
Note 3 - Restructuring Plan | 3 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||||||
Restructuring and Related Activities Disclosure [Text Block] | ' | ||||||||||||
Note 3 – Restructuring Plan | |||||||||||||
During third quarter of fiscal 2013, the Board of Directors (the “Board”) approved the Restructuring plan pursuant to which we reduced the complexity of our business through paring down the customer base we serve, focusing on the most profitable belts, small leather goods, and gifts products, streamlining our operations and further reducing operating expenses. | |||||||||||||
The primary components of the Restructuring included: (1) eliminating unprofitable products; (2) reducing the amount of risk in our gifts business; (3) reducing corporate and distribution employee headcount; (4) closing or downsizing four facilities; (5) outsourcing and relocating our gifts distribution facility from Dallas to a third-party provider in California; and (6) exiting development efforts and accelerating recognition of future expenses associated with non-core brands. | |||||||||||||
The following table presents the movement in the severance liability and other restructuring costs (in thousands): | |||||||||||||
Severance | Other | Total | |||||||||||
Accrued restructuring charges, June 30, 2013 | $ | 299 | $ | 1,787 | $ | 2,086 | |||||||
Charges | - | (524 | ) | (524 | ) | ||||||||
Cash spent | (290 | ) | (167 | ) | (457 | ) | |||||||
Accrued restructuring charges, September 30, 2013 | $ | 9 | $ | 1,096 | $ | 1,105 | |||||||
In connection with Restructuring we ceased development and marketing of gifts under the Sharper Image® license and recognized all future obligations ($0.9 million) as set forth in the original license agreement. In August 2013, we entered into a settlement agreement for the Sharper Image® license in which we would pay $0.4 million to settle all remaining contractual obligations and terminate the license. As a result of this settlement, we reversed $0.5 million of previously accrued restructuring charges during the first quarter of fiscal 2014. | |||||||||||||
Note_4_Business_Segment_Inform
Note 4 - Business Segment Information | 3 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Segment Reporting Disclosure [Text Block] | ' | ||||||||
Note 4 - Business Segment Information | |||||||||
We sell our products through all major retail distribution channels throughout North America, including, without limitation, mass merchants, national chain stores, department stores, specialty stores, golf pro shops, sporting goods stores, and the retail exchange operations of the United States military. Our business segments are based on product categories: (1) accessories, which include belts and small leather goods, and (2) gifts. Each segment is measured by management based on income consisting of net sales less cost of goods sold, product distribution expenses, and royalties utilizing accounting policies consistent in all material respects with those described in Note 2 of the notes to consolidated financial statements included in our 2013 Annual Report on Form 10-K filed with the Securities and Exchange Commission. No inter-segment revenue is recorded. Assets, related depreciation and amortization, and selling, general and administrative expenses are not allocated to the segments. | |||||||||
The following table presents operating information by segment and reconciliation of segment operating income to our consolidated operating income (loss) (in thousands): | |||||||||
Three Months Ended | |||||||||
30-Sep | |||||||||
2013 | 2012 | ||||||||
Net sales: | |||||||||
Accessories | $ | 17,665 | $ | 19,988 | |||||
Gifts | 2,254 | 5,883 | |||||||
$ | 19,919 | $ | 25,871 | ||||||
Segment operating income: | |||||||||
Accessories | $ | 3,075 | $ | 4,266 | |||||
Gifts | 132 | 121 | |||||||
3,207 | 4,387 | ||||||||
Selling, general and administrative expenses | (2,761 | ) | (5,062 | ) | |||||
Depreciation and amortization | (347 | ) | (483 | ) | |||||
Operating income (loss) | $ | 99 | $ | (1,158 | ) | ||||
Note_5_Borrowings
Note 5 - Borrowings | 3 Months Ended |
Sep. 30, 2013 | |
Debt Disclosure [Abstract] | ' |
Debt Disclosure [Text Block] | ' |
Note 5 - Borrowings | |
Effective July 24, 2013, we along with our subsidiaries, (1) H. A. Sheldon Canada, Ltd. (“HA Sheldon”) and (2) TBAC Investment Trust, a Pennsylvania business trust (“TBAC Trust”), each as guarantors, entered into a new credit agreement (the “Credit Agreement”) with Salus Capital Partners, LLC, as lender, administrative agent and collateral agent (“Salus”). The Credit Agreement provides for senior financing in an aggregate principal amount of up to $29.0 million at any one time outstanding. The facility is comprised of a revolving credit facility in the amount of $27.5 million and a first-in, last-out term loan facility in the amount of $1.5 million, and expires in July 2015 (the “Credit Facility”). Under the Credit Facility, borrowings bear interest at either 0.75% per annum or the rate per annum for LIBOR as published for an interest period of thirty days, plus (i) 8.50% with respect to the revolver, and (ii) 11.25% with respect to the term loan. At September 30, 2013, we had outstanding borrowings under the revolving credit facility in the amount of $13.6 million. At November 11, 2013, we had $3.8 million in borrowing availability under the credit facility after accounting for the $900,000 minimum excess availability requirement. | |
The Credit Facility is guaranteed by HA Sheldon and TBAC Trust and is secured by a first priority lien on substantially all of our assets, excluding certain goods and related accounts receivable financed pursuant to the King Trade Facility (see “King Trade Facility” below), for which Salus will have a second priority lien. The Credit Facility contains covenants which establish minimum consolidated EBITDA requirements, account concentration limitations, budgeted expenses and accounts payable to inventory ratios. The Credit Facility also permits Salus, as agent, to establish reserves with respect to inventory, availability, real estate and accounts receivable in determining the borrowing base under the Credit Agreement. The borrowing base is generally determined by calculating (i) the cost of eligible finished goods inventory, net of reserves, multiplied by the product of the applicable appraisal percentage multiplied by the appraised value of eligible finished goods, plus (ii) the lesser of (a) the cost of eligible piece goods inventory, net of reserves, multiplied by the product of the applicable appraisal percentage multiplied by the appraised value of eligible piece goods inventory, or (b) the costs of eligible piece goods inventory, net of reserves, multiplied by the applicable advance rate, plus (iii) the applicable receivables advance rate multiplied by the face amount of eligible trade receivables, net of applicable reserves, plus (iv) the applicable real estate advance rate multiplied by the appraised value of eligible real estate. The following amounts are then subtracted from that calculation: the reserve for the term loan, an availability block of $900,000, and the amount of any other availability reserves deemed applicable by the agent in certain circumstances. | |
The Credit Agreement contains customary representations and warranties and, pursuant to the Credit Agreement, we have agreed to certain customary affirmative covenants, including reporting requirements, insurance maintenance requirements, engagement of a financial advisor, compliance with laws and the maintenance of records. The Credit Agreement provides for certain fees in connection with unused commitments and early termination of the agreement, as well as other fees. The Credit Agreement also contains customary negative covenants which limit our ability to engage in certain actions without the lender’s consent, including creating additional liens on its properties, making certain investments, guaranteeing or incurring certain debt, repurchasing our common stock, entering into certain mergers or consolidations, paying dividends, making certain investments in other entities, prepaying debt, and making certain property transfers. The Credit Agreement also provides for customary events of default. | |
On September 26, 2013 we, along with our subsidiaries, H.A. Sheldon Canada, Ltd. and TBAC Investment Trust, and our senior lender Salus Capital Partners LLC, entered into a First Amendment to the Credit Agreement (the “Amendment”). Pursuant to the Amendment, our senior lender formally waived the going concern qualification in the audit report as an event of default, our failure to satisfy a minimum availability requirement for certain weeks, and extended the time period to deliver certain post-close deliverables. | |
As of November 14, 2013, we were in violation of certain provisions contained in the Credit Agreement, including the covenant relating to satisfaction of minimum availability targets and certain disbursement and shipment requirements for certain weeks. These violations were primarily a result of the delays in gifts shipments and payments resulting from the effects of Typhoon Fitow, which impacted several of our suppliers in Asia. | |
Our senior lender has not, as of the date of this report, accelerated the indebtedness and continues to advance funds. However, the senior lender may, in accordance with the terms of our Credit Agreement, exercise any available remedies under the credit agreement while we are in default and could refuse to continue to advance funds. In the event the senior lender refuses to advance funds or accelerates the indebtedness, we do not believe the Company has sufficient liquidity and capital resources to repay the debt and continue normal operations. In such an event, there can be no assurance that we would be successful in obtaining additional capital resources or that we would have sufficient liquidity and capital resources to meet future financial obligations. The Company is currently in discussions with the senior lender concerning the default under the Credit Agreement. If we are unable to obtain a waiver of the default or a modification of the terms of the credit agreement, restructure our finances or if the senior lender refuses to advance funds, the Company may need to restructure, sell assets, explore a potential bankruptcy filing or explore other alternatives. | |
Effective July 24, 2013, we also entered into a Master Agreement (“Master Agreement”) with EPK Financial Corporation, d/b/a King Trade Capital (“King Trade”) that provides for a purchase and sale facility (the “King Trade Facility”). This facility provides us with additional financing to purchase certain inventory related to our holiday 2013 seasonal gifts business using purchase orders as eligible collateral. | |
In order to receive financing under the King Trade Facility, we must present the transaction to King Trade for its consideration. King Trade reserves the right to accept or reject proposed transactions. The King Trade Facility is guaranteed by HA Sheldon and TBAC Trust and is secured by (i) a first priority lien on the goods and related accounts receivable financed by the Company under the King Trade Facility, and (ii) a second priority lien on substantially all of our other assets. | |
The Master Agreement contains representations and warranties and covenants that are customary for such financing arrangements. The maximum aggregate amount permitted to be outstanding under the King Trade Facility is $11.5 million, unless King Trade otherwise agrees. The amounts payable under the King Trade Facility bear interest at varying rates (from 17% to 19%, annualized) which depend primarily on the length of time such amounts are outstanding, the amount advanced for each transaction and the aggregate of all amounts advanced. At September 30, 2013, we had outstanding borrowings of $2.2 million. | |
In connection with the entry into these credit arrangements, we also entered into agreements with two significant licensors and three significant vendors to address outstanding accounts payable owed to these parties. Generally, the arrangements with these parties consist of the agreement (i) to pay a portion of the outstanding amount owed within specified time periods following the closing of the Credit Facility, and (ii) to pay the remainder of the outstanding amounts pursuant to unsecured, subordinated promissory notes. The aggregate amount financed through the use of the unsecured, subordinated promissory notes is $9.0 million and such notes bear interest at varying interest rates. Although the individual notes contain varying payment terms, the final principal and interest under such notes is due either July 15, 2014 or July 15, 2015. | |
Note_6_LongTerm_Incentie_Award
Note 6 - Long-Term Incentie Awards | 3 Months Ended |
Sep. 30, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' |
Note 6 - Long-Term Incentive Awards | |
During the first quarter of fiscal 2014, we issued 815,000 performance units comprised 50% of cash and 50% of phantom shares of our common stock, to certain employees. Each unit has a $1.00 assigned value and the number of phantom shares of common stock attributable to each award was determined based on the fair market value of our common stock on the date of grant. The units will vest if, and only if, there is a change of control of the Company during the performance cycle, which is July 1, 2013 or September 16, 2013 through December 31, 2013. | |
Note_7_Income_Taxes
Note 7 - Income Taxes | 3 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Income Tax Disclosure [Text Block] | ' | ||||||||
Note 7 - Income Taxes | |||||||||
The following presents components of our income tax (benefit) expense (in thousands): | |||||||||
Three Months Ended | |||||||||
30-Sep | |||||||||
2013 | 2012 | ||||||||
Federal and state | $ | 4 | $ | 5 | |||||
Deferred federal and state | (239 | ) | (491 | ) | |||||
Foreign | (102 | ) | 2 | ||||||
Uncertain tax positions | (86 | ) | (161 | ) | |||||
Deferred tax valuation allowance | 341 | 516 | |||||||
$ | (82 | ) | $ | (129 | ) | ||||
The federal statutory income tax rate reconciles to our effective income tax rate as follows: | |||||||||
Three Months Ended | |||||||||
30-Sep | |||||||||
2013 | 2012 | ||||||||
Statutory rate | (34.0 | )% | (34.0 | )% | |||||
Deferred tax valuation allowance | 32.7 | 36.6 | |||||||
State and foreign taxes net of federal tax benefit | 1.6 | (3.0 | ) | ||||||
Uncertain tax positions | (8.2 | ) | (11.4 | ) | |||||
Repatriation of foreign earnings | - | 0.7 | |||||||
Other, net | - | 2 | |||||||
(7.9 | )% | (9.1 | )% | ||||||
At September 30, 2013 we had federal income tax net operating loss carryovers of approximately $67.4 million expiring in 2029 through 2034. The valuation allowance on our net deferred tax asset was approximately $30.5 million. | |||||||||
During the first quarter of fiscal 2014 and 2013, $0.1 million and $0.2 million, respectively, of the liability previously recorded for uncertain state tax positions was released from the reserve as it no longer failed to meet the more-likely-than-not threshold. | |||||||||
Note_8_Loss_Per_Share
Note 8 - Loss Per Share | 3 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Earnings Per Share [Text Block] | ' | ||||||||
Note 8 - Loss Per Share | |||||||||
Our basic and diluted losses per common share are computed as follows (in thousands except per share amounts): | |||||||||
Three Months Ended | |||||||||
30-Sep | |||||||||
2013 | 2012 | ||||||||
Numerator for basic and diluted earnings per share: | |||||||||
Net loss | $ | (958 | ) | $ | (1,285 | ) | |||
Denominator for basic and diluted earnings per share | 7,161 | 7,134 | |||||||
Loss per common share | $ | (0.13 | ) | $ | (0.18 | ) | |||
Loss per common share assuming dilution | $ | (0.13 | ) | $ | (0.18 | ) | |||
Potentially dilutive securities which could have had an antidilutive effect on our per share results of operations were (in thousands except per share amounts): | |||||||||
30-Sep | |||||||||
2013 | 2012 | ||||||||
Stock options (exercise prices per share: 2013 - $1.12 to $15.60; 2012 - $1.40 to $15.60) | 104 | 155 | |||||||
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 3 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Fair Value Measurement, Policy [Policy Text Block] | ' |
We measure fair values using unadjusted quoted prices in active markets (Level 1 inputs), quoted prices for similar instruments in active or inactive markets, or other directly-observable factors (Level 2 inputs), or inputs that are unobservable and significant to the fair value measurement (Level 3 inputs). Our financial instruments consist primarily of cash, trade receivables and payables, and our credit facility. The carrying values of cash and trade receivables and payables are considered to be representative of their respective fair values. Our credit facility, which was entered into effective July 24, 2013 (and most recently amended September 26, 2013), bears interest at floating market interest rates; therefore, we believe the fair value of amounts borrowed approximates the carrying value. At September 30, 2013, June 30, 2013 and September 30, 2012, no other material financial assets or liabilities were measured at fair value. |
Note_3_Restructuring_Plan_Tabl
Note 3 - Restructuring Plan (Tables) | 3 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||||||
Restructuring and Related Costs [Table Text Block] | ' | ||||||||||||
Severance | Other | Total | |||||||||||
Accrued restructuring charges, June 30, 2013 | $ | 299 | $ | 1,787 | $ | 2,086 | |||||||
Charges | - | (524 | ) | (524 | ) | ||||||||
Cash spent | (290 | ) | (167 | ) | (457 | ) | |||||||
Accrued restructuring charges, September 30, 2013 | $ | 9 | $ | 1,096 | $ | 1,105 | |||||||
Note_4_Business_Segment_Inform1
Note 4 - Business Segment Information (Tables) | 3 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ' | ||||||||
Three Months Ended | |||||||||
30-Sep | |||||||||
2013 | 2012 | ||||||||
Net sales: | |||||||||
Accessories | $ | 17,665 | $ | 19,988 | |||||
Gifts | 2,254 | 5,883 | |||||||
$ | 19,919 | $ | 25,871 | ||||||
Segment operating income: | |||||||||
Accessories | $ | 3,075 | $ | 4,266 | |||||
Gifts | 132 | 121 | |||||||
3,207 | 4,387 | ||||||||
Selling, general and administrative expenses | (2,761 | ) | (5,062 | ) | |||||
Depreciation and amortization | (347 | ) | (483 | ) | |||||
Operating income (loss) | $ | 99 | $ | (1,158 | ) | ||||
Note_7_Income_Taxes_Tables
Note 7 - Income Taxes (Tables) | 3 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | ' | ||||||||
Three Months Ended | |||||||||
30-Sep | |||||||||
2013 | 2012 | ||||||||
Federal and state | $ | 4 | $ | 5 | |||||
Deferred federal and state | (239 | ) | (491 | ) | |||||
Foreign | (102 | ) | 2 | ||||||
Uncertain tax positions | (86 | ) | (161 | ) | |||||
Deferred tax valuation allowance | 341 | 516 | |||||||
$ | (82 | ) | $ | (129 | ) | ||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | ' | ||||||||
Three Months Ended | |||||||||
30-Sep | |||||||||
2013 | 2012 | ||||||||
Statutory rate | (34.0 | )% | (34.0 | )% | |||||
Deferred tax valuation allowance | 32.7 | 36.6 | |||||||
State and foreign taxes net of federal tax benefit | 1.6 | (3.0 | ) | ||||||
Uncertain tax positions | (8.2 | ) | (11.4 | ) | |||||
Repatriation of foreign earnings | - | 0.7 | |||||||
Other, net | - | 2 | |||||||
(7.9 | )% | (9.1 | )% | ||||||
Note_8_Loss_Per_Share_Tables
Note 8 - Loss Per Share (Tables) | 3 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | ||||||||
Three Months Ended | |||||||||
30-Sep | |||||||||
2013 | 2012 | ||||||||
Numerator for basic and diluted earnings per share: | |||||||||
Net loss | $ | (958 | ) | $ | (1,285 | ) | |||
Denominator for basic and diluted earnings per share | 7,161 | 7,134 | |||||||
Loss per common share | $ | (0.13 | ) | $ | (0.18 | ) | |||
Loss per common share assuming dilution | $ | (0.13 | ) | $ | (0.18 | ) | |||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | ' | ||||||||
30-Sep | |||||||||
2013 | 2012 | ||||||||
Stock options (exercise prices per share: 2013 - $1.12 to $15.60; 2012 - $1.40 to $15.60) | 104 | 155 |
Note_3_Restructuring_Plan_Deta
Note 3 - Restructuring Plan (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Note 3 - Restructuring Plan (Details) [Line Items] | ' |
Gain (Loss) on Contract Termination | $0.50 |
Closed or Downsized Facility [Member] | ' |
Note 3 - Restructuring Plan (Details) [Line Items] | ' |
Number of Stores | 4 |
Restructuring Plan March 2013 [Member] | ' |
Note 3 - Restructuring Plan (Details) [Line Items] | ' |
Contractual Obligation | 0.9 |
Contractual Obligation, Due in Next Twelve Months | $0.40 |
Note_3_Restructuring_Plan_Deta1
Note 3 - Restructuring Plan (Details) - Summary of severance liability and other restructuring costs (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring charges | $1,105 | $2,086 |
Charges | -524 | ' |
Cash spent | -457 | ' |
Employee Severance [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring charges | 9 | 299 |
Cash spent | -290 | ' |
Other Restructuring [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring charges | 1,096 | 1,787 |
Charges | -524 | ' |
Cash spent | ($167) | ' |
Note_4_Business_Segment_Inform2
Note 4 - Business Segment Information (Details) - Summary of operating information by segment and reconciliation of segment income to consolidated operating income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Net sales: | ' | ' |
Net Sales | $19,919 | $25,871 |
Segment operating income: | ' | ' |
Segment Income | 99 | -1,158 |
Selling, general and administrative expenses | -2,761 | -5,062 |
Depreciation and amortization | -347 | -483 |
Operating income (loss) | 99 | -1,158 |
Accessories [Member] | ' | ' |
Net sales: | ' | ' |
Net Sales | 17,665 | 19,988 |
Segment operating income: | ' | ' |
Segment Income | 3,075 | 4,266 |
Operating income (loss) | 3,075 | 4,266 |
Gifts [Member] | ' | ' |
Net sales: | ' | ' |
Net Sales | 2,254 | 5,883 |
Segment operating income: | ' | ' |
Segment Income | 132 | 121 |
Operating income (loss) | 132 | 121 |
Total [Member] | ' | ' |
Segment operating income: | ' | ' |
Segment Income | 3,207 | 4,387 |
Operating income (loss) | $3,207 | $4,387 |
Note_5_Borrowings_Details
Note 5 - Borrowings (Details) | 3 Months Ended | 13 Months Ended | 13 Months Ended | 0 Months Ended | ||||||||
Sep. 30, 2013 | Sep. 30, 2013 | Jul. 24, 2013 | Jul. 24, 2013 | Jul. 24, 2013 | Jul. 24, 2013 | Jul. 24, 2013 | Nov. 11, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
USD ($) | CAD | One Month LIBOR [Member] | One Month LIBOR [Member] | Salus Capital Partners, LLC [Member] | Salus Capital Partners, LLC [Member] | Salus Capital Partners, LLC [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | King Trade Facility [Member] | Minimum [Member] | Maximum [Member] | |
Revolving Credit Facility [Member] | Loan Facility [Member] | Revolving Credit Facility [Member] | Loan Facility [Member] | USD ($) | USD ($) | USD ($) | USD ($) | King Trade Facility [Member] | King Trade Facility [Member] | |||
USD ($) | USD ($) | |||||||||||
Note 5 - Borrowings (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | ' | ' | ' | ' | $27,500,000 | $1,500,000 | $29,000,000 | ' | ' | $11,500,000 | ' | ' |
Debt Instrument, Basis Spread on Variable Rate | ' | ' | 8.50% | 11.25% | ' | ' | 0.75% | ' | ' | ' | ' | ' |
Line of Credit Facility, Amount Outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 13,600,000 | 2,200,000 | ' | ' |
Line of Credit Facility, Remaining Borrowing Capacity | ' | ' | ' | ' | ' | ' | ' | 3,800,000 | ' | ' | ' | ' |
Line of Credit Facility, Minimum Excess Availability Requirement | ' | ' | ' | ' | ' | ' | ' | 900,000 | ' | ' | ' | ' |
Minimum Availability Covenant, Amount | 900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17.00% | 19.00% |
Notes Payable (in Dollars) | ' | 9,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note_6_LongTerm_Incentie_Award1
Note 6 - Long-Term Incentie Awards (Details) (USD $) | 3 Months Ended |
Sep. 30, 2013 | |
Performance Shares [Member] | Minimum [Member] | ' |
Note 6 - Long-Term Incentie Awards (Details) [Line Items] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period (in Shares) | 815,000 |
Cash Share Units [Member] | ' |
Note 6 - Long-Term Incentie Awards (Details) [Line Items] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Settled In Cash Percentage | 50.00% |
Phantom Share Units (PSUs) [Member] | ' |
Note 6 - Long-Term Incentie Awards (Details) [Line Items] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Settled In Cash Percentage | 50.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Intrinsic Value, Amount Per Share (in Dollars per share) | 1 |
Note_7_Income_Taxes_Details
Note 7 - Income Taxes (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Millions, unless otherwise specified | ||
Note 7 - Income Taxes (Details) [Line Items] | ' | ' |
Income Tax Examination, Increase (Decrease) in Liability from Prior Year | $0.10 | $0.20 |
Reasonably Possible [Member] | State and Local Jurisdiction [Member] | Minimum [Member] | ' | ' |
Note 7 - Income Taxes (Details) [Line Items] | ' | ' |
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | 67.4 | ' |
Internal Revenue Service (IRS) [Member] | Minimum [Member] | ' | ' |
Note 7 - Income Taxes (Details) [Line Items] | ' | ' |
Deferred Tax Assets, Valuation Allowance | $30.50 | ' |
Note_7_Income_Taxes_Details_Si
Note 7 - Income Taxes (Details) - Significant components of income tax expense (benefit) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Note 7 - Income Taxes (Details) - Significant components of income tax expense (benefit) [Line Items] | ' | ' |
Deferred federal and state | $2 | ($21) |
Uncertain tax positions | -86 | -161 |
Deferred tax valuation allowance | 341 | 516 |
-82 | -129 | |
Domestic Tax Authority [Member] | ' | ' |
Note 7 - Income Taxes (Details) - Significant components of income tax expense (benefit) [Line Items] | ' | ' |
Federal and state | 4 | 5 |
Deferred federal and state | -239 | -491 |
Foreign Tax Authority [Member] | ' | ' |
Note 7 - Income Taxes (Details) - Significant components of income tax expense (benefit) [Line Items] | ' | ' |
Foreign | ($102) | $2 |
Note_7_Income_Taxes_Details_Fe
Note 7 - Income Taxes (Details) - Federal statutory income tax rate reconciled to effective income tax rate | 3 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Federal statutory income tax rate reconciled to effective income tax rate [Abstract] | ' | ' |
Statutory rate | -34.00% | -34.00% |
Deferred tax valuation allowance | 32.70% | 36.60% |
State and foreign taxes net of federal tax benefit | 1.60% | -3.00% |
Uncertain tax positions | -8.20% | -11.40% |
Repatriation of foreign earnings | ' | 0.70% |
Other, net | ' | 2.00% |
-7.90% | -9.10% |
Note_8_Loss_Per_Share_Details_
Note 8 - Loss Per Share (Details) - Summary of basic and diluted earnings (losses) per common share (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Numerator for basic and diluted earnings per share: | ' | ' |
Net loss (in Dollars) | ($958) | ($1,285) |
Denominator for basic and diluted earnings per share (in Shares) | 7,161 | 7,134 |
Loss per common share | ($0.13) | ($0.18) |
Loss per common share assuming dilution | ($0.13) | ($0.18) |
Note_8_Loss_Per_Share_Details_1
Note 8 - Loss Per Share (Details) - Summary of potentially dilutive securities which could have had an antidilutive effect on per share results (Equity Option [Member]) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Equity Option [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Stock options (exercise prices per share: 2013 - $1.12 to $15.60; 2012 - $1.40 to $15.60) | 104 | 155 |
Note_8_Loss_Per_Share_Details_2
Note 8 - Loss Per Share (Details) - Summary of potentially dilutive securities which could have had an antidilutive effect on per share results (Parentheticals) (Equity Option [Member], USD $) | 3 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Equity Option [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Stock options, exercise prices per share | $1.12 | $1.40 |
Stock options, exercise prices per share | $15.60 | $15.60 |