Perma-Pipe International (PPIH) 10-Q 9 Sep 16 2016 Q2 Quarterly report Financial data

Entity information Document

Entity information Document - USD ($)	6 Months Ended
	Jul. 31, 2016	Sep. 08, 2016	Jul. 31, 2015
Document Information
Entity Registrant Name	MFRI INC.
Trading Symbol	MFRI
Entity Central Index Key	914,122
Current Fiscal Year End Date	--01-31
Entity Filer Category	Smaller Reporting Company
Document Type	10-Q
Document Period End Date	Jul. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		7,539,568
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 35,417,613

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015
Net sales	$ 22,859	$ 25,147	$ 45,928	$ 45,424
Cost of sales	19,879	22,021	40,956	39,943
Gross profit	2,980	3,126	4,972	5,481
Operating expenses
General and administrative expenses	3,370	4,227	8,463	8,933
Selling expenses	1,450	1,429	2,854	2,648
Total operating expenses	4,820	5,656	11,317	11,581
Loss from operations	(1,840)	(2,530)	(6,345)	(6,100)
(Loss) income from joint venture	0	(49)	0	116
Loss on consolidation of joint venture	0	0	(1,620)	0
Interest expense, net	97	162	323	83
Loss from continuing operations before income taxes	(1,937)	(2,741)	(8,288)	(6,067)
Income tax benefit	(1,077)	(473)	(1,334)	(447)
Loss from continuing operations	(860)	(2,268)	(6,954)	(5,620)
Income (loss) from discontinued operations, net of tax	1,309	(123)	1,109	(1,426)
Net income (loss)	$ 449	$ (2,391)	$ (5,845)	$ (7,046)
Weighted average common shares outstanding
Basic	7,481	7,277	7,416	7,264
Diluted	7,603	7,277	7,416	7,264
Loss per share from continuing operations
Basic and diluted	$ (0.11)	$ (0.31)	$ (0.94)	$ (0.77)
Earnings (loss) per share from discontinued operations
Basic and diluted	0.17	(0.02)	0.15	(0.20)
Earnings (loss) per share
Basic and diluted	$ 0.06	$ (0.33)	$ (0.79)	$ (0.97)

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015
Net income (loss)	$ 449	$ (2,391)	$ (5,845)	$ (7,046)
Other comprehensive income
Foreign currency translation adjustments, net of tax	(888)	(184)	1,034	158
Interest rate swap, net of tax	0	10	0	15
Unrealized gain on marketable security, net of tax	(5)	0	(4)	0
Minimum pension liability adjustment, net of tax	0	(196)	0	(196)
Other comprehensive (loss) income	(893)	22	1,030	369
Comprehensive loss	$ (444)	$ (2,369)	$ (4,815)	$ (6,677)

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jul. 31, 2016	Jan. 31, 2016
Current assets
Cash and cash equivalents	$ 11,612	$ 16,631
Restricted cash	943	2,324
Trade accounts receivable, less allowance for doubtful accounts of $72 at July 31, 2016 and $33 at January 31, 2016	28,341	36,090
Inventories, net	14,051	15,625
Assets of discontinued operations	2,548	15,733
Assets held for sale	0	3,062
Cash surrender value on life insurance policies, net	1,287	3,049
Prepaid expenses and other current assets	3,679	2,071
Costs and estimated earnings in excess of billings on uncompleted contracts	2,065	2,463
Total current assets	64,526	97,048
Property, plant and equipment, net of accumulated depreciation	37,168	25,400
Other assets
Goodwill	2,657	0
Note receivable from joint venture	0	1,905
Investment in joint venture	0	9,112
Other assets	5,076	4,658
Total other assets	7,733	15,675
Total assets	109,427	138,123
Current liabilities
Trade accounts payable	7,883	11,026
Accrued compensation and payroll taxes	3,769	4,274
Deferred compensation liability	3,207	6,167
Commissions and management incentives payable	2,144	2,874
Revolving line domestic	3,757	5,237
Current maturities of long-term debt	1,241	8,769
Customers' deposits	3,118	3,690
Outside commissions payable	1,883	1,295
Liabilities of discontinued operations	1,320	15,465
Liabilities held for sale	0	3,439
Billings in excess of costs and estimated earnings on uncompleted contracts	482	1,176
Other accrued liabilities	2,539	965
Income taxes payable	982	2,339
Total current liabilities	32,325	66,716
Long-term liabilities
Long-term debt, less current maturities	7,254	1,493
Deferred compensation liabilities	3,091	495
Deferred tax liabilities - long-term	1,703	160
Other long-term liabilities	395	231
Total long-term liabilities	12,443	2,379
Stockholders' equity
Common stock, $.01 par value, authorized 50,000 shares; 7,534 issued and outstanding at July 31, 2016 and 7,306 issued and outstanding at January 31, 2016	76	74
Additional paid-in capital	53,475	53,031
Treasury Stock, 45 shares at July 31, 2016 and 45 at January 31,2016	(290)	(290)
Retained earnings	14,348	20,193
Accumulated other comprehensive loss	(2,950)	(3,980)
Total stockholders' equity	64,659	69,028
Total liabilities and stockholders' equity	$ 109,427	$ 138,123

Balance Sheet parenthetical (Pa

Balance Sheet parenthetical (Parentheticals) - USD ($) shares in Thousands, $ in Thousands	Jul. 31, 2016	Jan. 31, 2016
Allowance for doubtful accounts receivable	$ 72	$ 33
Common stock, par value per share	$ 0.01	$ 0.01
Common stock, shares authorized	50,000	50,000
Common stock, shares issued	7,534	7,306
Common stock, shares outstanding	7,534	7,306
Treasury Stock, Number of Shares Held	45	45

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]
Shares, Outstanding		7,290,576
Treasury stock purchased		(44,566)
Shares issued		59,915
Stockholders' equity	$ 69,028	$ 74	$ 53,031	$ (290)	$ 20,193	$ (3,980)
Shares, Outstanding		7,305,925
Net income (loss)	(5,845)				(5,845)
Stock options exercised	184	$ 0	184
Restricted shares vested, deferred shares converted and payroll taxes paid with shares	125	$ 2	123
Stock-based compensation expense	137		137
Marketable security unrealized gain/loss	(6)					(6)
Foreign currency translation adjustments	1,025					1,025
Tax benefit/expense on above items	11					11
Treasury stock purchased				0
Shares issued		228,518
Stockholders' equity	$ 64,659	$ 76	$ 53,475	$ (290)	$ 14,348	$ (2,950)
Shares, Outstanding		7,534,443

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jul. 31, 2016	Jul. 31, 2015
Operating activities
Net loss	$ (5,845)	$ (7,046)
Adjustments to reconcile net loss to net cash flows provided by operating activities
Depreciation and amortization	2,830	2,903
Loss on consolidation of joint venture	1,620	0
Gain on disposal of subsidiaries	(867)	0
Deferred tax (benefit) expense	(277)	31
Stock-based compensation expense (benefit)	137	(26)
Income from joint venture	0	(116)
Cash surrender value on life insurance policies	(132)	(64)
Gain on disposal of fixed assets	2,364	0
Provision on uncollectible accounts	400	192
Changes in operating assets and liabilities
Accounts receivable	16,277	(2,352)
Inventories	5,004	(5,267)
Costs and estimated earnings in excess of billings on uncompleted contracts	(296)	2,325
Accounts payable	(4,889)	8,250
Accrued compensation and payroll taxes	(5,884)	4,642
Customers' deposits	(1,824)	3,007
Income taxes receivable and payable	(1,418)	(1,115)
Prepaid expenses and other current assets	(1,233)	1,178
Other assets and liabilities	(758)	(6,469)
Net cash provided by operating activities	481	73
Investing activities
Acquisition of interest in subsidiary, net of cash acquired	(4,672)	0
Capital expenditures	(994)	(4,997)
Proceeds from surrender of corporate-owned life insurance policies	1,894	0
Receipts on loan from joint venture	0	1,890
Proceeds from sales of property and equipment	11,930	0
Net cash provided by (used in) investing activities	8,158	(3,107)
Financing activities
Proceeds from revolving lines	21,113	48,585
Proceeds from debt	6,147	668
Proceeds from borrowing against life insurance policies	0	1,916
Payments of debt on revolving lines of credit	(29,835)	(45,546)
Payments of other debt	(10,044)	(1,109)
Payments of borrowing against life insurance policies	0	(1,916)
(Decrease) increase in drafts payable	(248)	359
Payments on capitalized lease obligations	(1,204)	(434)
Payments for repurchase of common stock	0	(290)
Stock options exercised and restricted shares issued	309	(25)
Net cash (used in) provided by financing activities	(13,762)	2,208
Effect of exchange rate changes on cash and cash equivalents	104	326
Net decrease in cash and cash equivalents	(5,019)	(500)
Cash and cash equivalents - beginning of period	16,631	10,508
Cash and cash equivalents - end of period	11,612	10,008
Supplemental cash flow information
Interest paid	457	564
Income taxes paid	1,142	846
Fixed assets acquired under capital lease	0	732
Funds held in escrow related to the sale of Filtration assets	$ 502	$ 0

Basis of presentation

Basis of presentation	6 Months Ended
	Jul. 31, 2016
Basis of presentation [Abstract]
Basis of presentation [Text Block]	Basis of presentation. The interim consolidated financial statements of MFRI, Inc. and subsidiaries ("MFRI," "Company," or "Registrant") are unaudited, but include all adjustments which the Company's management considers necessary to present fairly the financial position and results of operations for the periods presented. These adjustments consist of normal recurring adjustments. Information and footnote disclosures have been omitted pursuant to Securities and Exchange Commission ("SEC") rules and regulations. The consolidated balance sheet as of January 31, 2016 is derived from the audited consolidated balance sheet as of that date. The results of operations for any interim period are not necessarily indicative of future or annual results. Interim financial statements should be read in conjunction with the financial statements and the notes thereto included in the Company's latest Annual Report on Form 10-K. The Company's fiscal year ends on January 31. Years and balances described as 2016 and 2015 are for the six months ended July 31, 2016 and 2015 , respectively.

Business segment reporting

Business segment reporting	6 Months Ended
	Jul. 31, 2016
Segment reporting [Line Items]
Segment Reporting Disclosure [Text Block]	Business segment reporting. As of January 31, 2016, MFRI is engaged in the manufacture and sale of products in one segment: Piping Systems. As described below, prior to January 29, 2016, the Company was also engaged in the manufacture and sale of products in the Filtration Products segment. Piping Systems engineers, designs, manufactures and sells specialty piping, leak detection and location systems . This segment's specialty piping systems include (i) industrial and secondary containment piping systems for transporting chemicals, hazardous fluids and petroleum products, (ii) insulated and jacketed district heating and cooling piping systems for efficient energy distribution to multiple locations from central energy plants, and (iii) oil and gas gathering flow and long lines for oil and mineral transportation. Piping Systems' leak detection and location systems are sold with many of its piping systems and on a stand-alone basis, to monitor areas where fluid intrusion may contaminate the environment, endanger personal safety, cause a fire hazard, impair essential services or damage equipment or property. Prior to January 29, 2016, the Company had a Filtration Products segment. This business is reported as discontinued operations in the consolidated financial statements, and the notes to consolidated financial statements have been restated to conform to the current year reporting of this business. For further information, see "Notes to Consolidated Financial Statements Note 4 Discontinued operations". For the three months ended July 31, 2016 , no customer accounted for 10% of the Company's consolidated net sales, and for the three months ended July 31, 2015 , one customer accounted for 10.2% of the Company's consolidated net sales. For the six months ended July 31, 2016 , one customer accounted for 10.7% of the Company's consolidated net sales, and for the six months ended July 31, 2015 , no customer accounted for 10% of the Company's consolidated net sales. At July 31, 2016 , one customer accounted for 16% of accounts receivable. Two customers accounted for 46% of accounts receivable at January 31, 2016 . Three Months Ended July 31, Six Months Ended July 31, 2016 2015 2016 2015 Net sales Piping Systems $22,859 $25,147 $45,928 $45,424 Gross profit Piping Systems $2,980 $3,126 $4,972 $5,481 Loss from operations Piping Systems ($714 ) ($825 ) ($2,415 ) ($2,251 ) Corporate ($1,126 ) ($1,705 ) (3,930 ) (3,849 ) Total loss from operations ($1,840 ) ($2,530 ) ($6,345 ) ($6,100 )

Acquisition (Notes)

Acquisition (Notes)	6 Months Ended
	Jul. 31, 2016
Business Acquisition [Line Items]
Schedule of Business Acquisitions, by Acquisition [Table Text Block]	Acquisition. MFRI entered into a purchase agreement with its joint venture partner Aegion Corporation to acquire the remaining 51% ownership of Bayou Perma-Pipe Canada, Ltd . ("BPPC"), a coating and insulation company in Camrose, Alberta , which acquisition closed on February 4, 2016 . MFRI had owned a 49% interest in BPPC since 2009, when the joint venture was formed with Aegion to serve the oil and gas industry in Western Canada. The purchase price was $13.1 million CAD ( $9.6 million USD) in cash and debt at closing and is subject to certain post-closing adjustments. The initial accounting for this acquisition is not complete pending detailed analyses of the facts and circumstances that existed as of the acquisition date. The following table represents the preliminary allocation of the total consideration in the acquisition of BPPC: Total purchase consideration: Cash $7,587 Loan payable 2,000 Purchase consideration to third party 9,587 Fair Value of 49% Previously Held Equity Interest 7,492 Total purchase consideration $17,079 Fair value of net assets acquired: Cash and cash equivalents $2,915 Property and equipment 12,670 Goodwill 2,657 Net working capital 406 Other assets (liabilities) net (1,569 ) Net assets acquired $17,079 The acquisition has preliminarily resulted in approximately $2.7 million of goodwill. The Company incurred legal, professional and other costs related to this acquisition. These one-time costs of $0.2 million were recognized as general and administrative expenses. In the first quarter, the Company recognized a non-cash loss of $1.6 million , which represents the difference between the pre-existing book value interest in BPPC immediately prior to the acquisition remeasured to its fair value upon the acquisition date. Pro Forma results - The following table summarizes, on a pro forma basis, the combined results of operations of the Company and the acquired business as though the acquisition had occurred as of February 1, 2015. The pro forma amounts presented are not necessarily indicative of either the actual consolidated results had the acquisition occurred as of February 1, 2015 or of future consolidated operating results. Three Months Ended July 31, Six Months Ended July 31, 2016 2015 2016 2015 Revenue $22,859 $26,935 $45,928 $56,271 Net income (loss) 449 (2,448 ) (5,845 ) (6,916 ) Earnings (loss) per share basic and diluted $0.06 ($0.34 ) ($0.79 ) ($0.95 ) Pro forma results presented above primarily reflect revenues that were down due to the effect of oil prices on customer demand in the U.S. and Canada and on certain market conditions in the Middle East.

Discontinued operations (Notes)

Discontinued operations (Notes)	6 Months Ended
	Jul. 31, 2016
Discontinued operations
Discontinued Operations [Text Block]	Discontinued operations. On January 29, 2016 , the Company sold certain assets and liabilities of its TDC Filter business based in Bolingbrook, Illinois to the Industrial Air division of CLARCOR. On January 29, 2016, the Company also sold its Nordic Air Filtration, Denmark and Nordic Air Filtration, United Arab Emirates ("U.A.E.") businesses to Hengst Holding GmbH. The aggregated sales price of these filtration businesses was $22.0 million , including cash proceeds of $18.4 million , of which $0.5 million is held in escrow until July 2017. In May, 2016, the Company completed the sale of its Bolingbrook Filtration manufacturing facility to a third party at a price of $7.1 million . The sale generated approximately $1.9 million in net cash after expenses and mortgage payoffs. The Company is currently engaged in liquidating the remaining assets of the Filtration bag business in Winchester, Virginia. The Filtration business segment is reported as discontinued operations in the consolidated financial statements, and the notes to consolidated financial statements have been revised to conform to the current year reporting. There was $0.7 million of tax expense for the three and six months ended July 31, 2016 . Results from discontinued operations net of tax for the three and six months ended July 31, 2016 and 2015 were as follows: Three Months Ended July 31, Six Months Ended July 31, 2016 2015 2016 2015 Net sales $3,276 $14,914 $10,467 $32,311 Gain on disposal of discontinued operations $1,605 $— $2,472 $— Income (loss) from discontinued operations $423 ($35 ) (660 ) (1,338 ) Income (loss) from discontinued operations before income taxes 2,028 (35 ) 1,812 (1,338 ) Income tax expense 719 88 703 88 Income (loss) from discontinued operations, net of tax $1,309 ($123 ) $1,109 ($1,426 ) Components of assets and liabilities from discontinued operations consist of the following: July 31, 2016 January 31, 2016 Current assets Cash and cash equivalents $— $5 Trade accounts receivable, net 597 5,720 Inventories, net — 2,000 Other assets 212 1,552 Property, plant and equipment, net of accumulated depreciation 1,739 6,456 Total assets from discontinued operations $2,548 $15,733 Current liabilities Trade accounts payable, accrued expenses and other $1,320 $7,514 Current maturities of long-term debt — 5,322 Other liabilities — 2,629 Total liabilities from discontinued operations $1,320 $15,465 Cash flows from discontinued operations: Six Months Ended July 31, 2016 2015 Net cash (used in) provided by discontinued operating activities ($208 ) $224 Net cash provided by (used in) discontinued investing activities 7,574 (1,295 ) Net cash (used in) provided by discontinued financing activities (7,365 ) 754

Income taxes

Income taxes	6 Months Ended
	Jul. 31, 2016
Income taxes [Abstract]
Income taxes [Text Block]	Income taxes. The determination of the consolidated provision for income taxes, deferred tax assets and liabilities and related valuation allowances requires management to make judgments and estimates. As a company with subsidiaries in foreign jurisdictions, the process of calculating income taxes involves estimating current tax obligations and exposures in each jurisdiction as well as making judgments regarding the future recoverability of deferred tax assets. Income earned in the U.A.E. is not subject to local country income tax. Additionally, the relative proportion of taxable income earned domestically versus internationally can fluctuate significantly from period to period. Changes in the estimated level of annual pre-tax income, tax laws and the results of tax audits can affect the overall effective income tax rate, which impacts the level of income tax expense and net income. Judgments and estimates related to the Company's projections and assumptions are inherently uncertain; therefore, actual results could differ materially from projections. The Company's effective tax rate ("ETR") from continuing operations for the second quarter and year-to-date was 55.6% and 16.1% , respectively compared to 17.3% and 7.4% during the respective prior-year periods. The change in the ETR from the prior year-to-date to the current year-to-date is mainly due to lower activity in the U.A.E., the Canadian acquisition and the allocation of tax expense between continuing operations, other comprehensive income and discontinued operations when applying intraperiod allocation rules. Income tax expense (or benefit) for each year is allocated to continuing operations, discontinued operations, extraordinary items, other comprehensive income, and other charges or credits recorded directly to stockholders’ equity. This allocation is commonly referred to as an intra-period tax allocation, as outlined in ASC 740, Income Taxes ("ASC 740"). When considering intra-period tax allocations, a company also should consider the accounting for income taxes in interim periods. ASC 740-20-45-7 requires that the tax effect of pretax income from continuing operations be determined without regard to the tax effects of items not included in continuing operations. This is commonly referred to as the "incremental approach", where the tax provision is generally calculated for continuing operations without regard to other items. ASC 740 also includes an exception to the general principle of intra-period tax allocation discussed above. This exception requires that all items (e.g., extraordinary items, discontinued operations, including items charged or credited directly to other comprehensive income) be considered in determining the amount of tax benefit that results from a loss from continuing operations. That is, when a company has a current period loss from continuing operations, management must consider income recorded in other categories in determining the tax benefit that is allocated to continuing operations. The exception in ASC 740 applies in all situations in which there is a loss from continuing operations and income from other items outside of continuing operations. This would include situations in which a company has recorded a full valuation allowance at the beginning and end of the period, and the overall tax provision for the year is zero (i.e., a benefit would be recognized in continuing operations even though the loss from continuing operations does not provide a current year incremental tax benefit). The ASC 740 exception, however, only relates to the allocation of the current year tax provision (which may be zero) and does not change a company’s overall tax provision. While intra-period tax allocation in general does not change the overall tax provision, it may result in a gross-up of the individual components, thereby changing the amount of tax provision included in each category. The amount of unrecognized tax benefits, including interest and penalties, at July 31, 2016 , recorded in other long-term liabilities was $0.1 million , all of which would impact the Company’s effective tax rate if recognized. The Company includes accrued interest and penalties related to uncertain tax positions in income tax expense, with $1,200 included in expense for the current quarter. The amount of accrued interest and penalties at July 31, 2016 associated with unrecognized tax benefits was $47,300 . The Company files income tax returns in U.S. federal and state jurisdictions. The IRS began an audit of the fiscal year ended January 31, 2015 in August 2016.

Impairment of long lived assets

Impairment of long lived assets (Notes)	6 Months Ended
	Jul. 31, 2016
Property, Plant and Equipment [Line Items]
Impairment of long-lived assets	Impairment of long-lived assets and assets held for sale. The Company evaluates long-lived assets (including intangible assets) for impairment whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset may not be recoverable. An asset is considered impaired if its carrying amount exceeds the undiscounted future net cash flow the asset is expected to generate. There was no impairment of long-lived assets as of July 31, 2016 and January 31, 2016 . Goodwill. Goodwill represents the excess of purchase price over the fair value of the net assets acquired in conjunction with the Company’s acquisition of BPPC.

Other intangible assets with de

Other intangible assets with definite lives (Notes)	6 Months Ended
	Jul. 31, 2016
Other intangible assets with definite lives [Abstract]
Schedule of Indefinite-Lived Intangible Assets [Table Text Block]	Other intangible assets with definite lives. The Company owns several patents, including those covering features of its piping and electronic leak detection systems. Patents are capitalized and amortized on a straight-line basis over a period not to exceed the legal lives of the patents. The Company expenses costs incurred to renew or extend the term of intangible assets . Gross patents were $2.61 million and $2.59 million as of July 31, 2016 and January 31, 2016 , respectively. Accumulated amortization was approximately $2.36 million and $2.33 million as of July 31, 2016 and January 31, 2016 , respectively. Future amortizations over the next five years ending January 31 will be $22,900 in 2017 , $41,600 in 2018 , $33,650 in 2019 , $30,650 in 2020 , $24,450 in 2021 , and $101,200 thereafter. Patents are included in other assets in the balance sheet. Three Months Ended July 31, Six Months Ended July 31, 2016 2015 2016 2015 Patent amortization expense $11 $13 $22 $26

Stock-based compensation

Stock-based compensation	6 Months Ended
	Jul. 31, 2016
Stock-based compensation [Abstract]
Stock-based compensation [Text Block]	Stock-based compensation. The Company has stock-based compensation awards that can be granted to eligible employees, officers or directors. Three Months Ended July 31, Six Months Ended July 31, 2016 2015 2016 2015 Stock-based compensation benefit ($282 ) ($96 ) ($284 ) ($37 ) Restricted stock based compensation expense $390 $169 $668 $258 Stock-based compensation for 2016 was a benefit year-to-date due to cancellations. Most of these cancellations related to former employees from the Company's discontinued operations. The increase in the restricted stock based compensation expense relates to a grant in March 2016 and the conversion of performance restricted stock units to time-based restricted shares. This increase is partially offset by a decrease in management incentive compensation expense. Stock Options. The fair value of the outstanding option awards was estimated on the grant dates using the Black-Scholes option pricing model. Six Months Ended July 31, Fair value assumptions 2016 2015 Expected volatility 40.88% - 57.02% 40.88% - 59.39% Risk free interest rate .74% - 1.77% .74% - 1.77% Dividend yield none none Expected life 5.0 - 5.1 years 4.9 - 5.1 years Option activity Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at January 31, 2016 720 $11.38 5.1 $34 Granted 22 7.33 Exercised (28 ) 6.50 26 Expired or forfeited (110 ) 10.42 Outstanding end of period 604 11.63 4.9 259 Exercisable end of period 511 $12.05 4.3 $220 Unvested option activity Options Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Outstanding at January 31, 2016 166 $9.51 $— Granted 22 7.33 Vested (60 ) Expired or forfeited (35 ) 8.99 Outstanding end of period 93 $9.33 $39 As of July 31, 2016 , there was $0.3 million of total unrecognized compensation expense related to unvested stock options. The expense is expected to be recognized over a period of 2.3 years. Restricted stock. The following table summarizes restricted stock activity for the year: Restricted stock activity Restricted Shares Weighted Average Grant Price Per Share Aggregate Intrinsic Value Outstanding at January 31, 2016 163 $8.60 $1,040 Granted 241 7.26 Issued (94 ) Forfeited (1 ) 6.38 Outstanding end of period 309 $7.91 $2,157 As of July 31, 2016 , there was $0.8 million of unrecognized compensation expense related to unvested restricted stock granted under the plans. The cost is expected to be recognized over the weighted-average period of 2.9 years .

Earnings per share

Earnings per share	6 Months Ended
	Jul. 31, 2016
Earnings Per Share [Abstract]
Earnings per share [Text Block]	Earnings per share. Three Months Ended July 31, Six Months Ended July 31, 2016 2015 2016 2015 Basic weighted average common shares outstanding 7,481 7,277 7,416 7,264 Dilutive effect of equity compensation plans 122 — — — Weighted average common shares outstanding assuming full dilution 7,603 7,277 7,416 7,264 Stock options not included in the computation of diluted earnings per share of common stock because the option exercise prices exceeded the average market prices of the common shares 356 740 378 672 Stock options with an exercise price below the average market price 248 16 226 84

Interest expense, net

Interest expense, net	6 Months Ended
	Jul. 31, 2016
Interest expense, net [Abstract]
Interest Income and Interest Expense Disclosure [Text Block]	Interest expense, net. Three Months Ended July 31, Six Months Ended July 31, 2016 2015 2016 2015 Interest expense $139 $172 $392 $367 Interest income (42 ) (10 ) (69 ) (284 ) Interest expense, net $97 $162 $323 $83

Debt

Debt	6 Months Ended
	Jul. 31, 2016
Debt [Abstract]
Debt Disclosure [Text Block]	Debt. Debt totaled $12.3 million at July 31, 2016 , a net decrease of $3.2 million since January 31, 2016 . Revolving lines domestic . On September 24, 2014, the Company entered into a Credit and Security Agreement with a financial institution (as amended, "Credit Agreement"). Under the terms of the Credit Agreement, which matures on September 24, 2019 , the Company can borrow up to $15.0 million , subject to borrowing base availability from secured domestic assets, such as accounts receivable and inventory, and other requirements, under a revolving line of credit. The Credit Agreement covenants restrict debt, liens, and investments, and require attainment of specific levels of profitability and cash flows . At July 31, 2016 , the Company was in compliance with loan covenants. The domestic revolving line balance as of July 31, 2016 and January 31, 2016 was included as a current liability in the consolidated balance sheets. Interest rates vary based on the average availability in the preceding fiscal quarter and are: (a) a margin in effect plus a base rate, if below certain availability limits; or (b) a margin in effect plus the Eurodollar rate for the corresponding interest period. As of July 31, 2016 , the Company had borrowed $3.8 million at 3.5% and 2.22% and had $7.0 million available to it under the revolving line of credit. In addition, $0.3 million of availability was used under the Credit Agreement primarily to support letters of credit to guarantee amounts committed for inventory purchases. Cash required for operations, as needed, is provided by draw downs on the line of credit. Revolving lines foreign . The Company also had credit arrangements used by its Middle Eastern subsidiaries. These credit arrangements are in the form of overdraft facilities and project financing at rates competitive in the countries in which the Company operates. The lines of credit are secured by certain equipment, certain assets, such as accounts receivable and inventory, and a guarantee by the Company . The Company's credit arrangement covenants require a minimum tangible net worth to be maintained . At July 31, 2016 , the Company was in compliance with the covenants under the credit arrangements. At July 31, 2016 , interest rates were 4.0% per annum below National Bank of Fujairah Base Rate, minimum 3.5% per annum, and Emirates Inter Bank Offered Rate (EIBOR) plus 3.5% per annum. At July 31 2016, the Company's interest rates range from 3.5% to 6.0% . At July 31, 2016 , the Company had available borrowing capacity of $29.1 million under these credit arrangements. In addition, $7.7 million of availability was used to support letters of credit to guarantee amounts committed for inventory purchases and project completion guarantees. At July 31, 2016 , borrowings under these credit arrangements totaled $0.8 million ; an additional $20.6 million remained unused. The foreign revolving lines balances as of July 31, 2016 and January 31, 2016 were included as current maturities of long-term debt in the consolidated balance sheets. On February 1, 2016, the Company executed a promissory note in favor of United Pipeline Systems Limited, an affiliate of Aegion, Inc. for $2.0 million . The promissory note was paid on July 28, 2016. In addition, the Company on July 28, 2016 paid off the balance of $2.2 million in previously affiliated debt to Aegion in its Canadian subsidiary which was acquired in the purchase of BPPC. On July 28, 2016 , the Company borrowed $8.0 million CAD (approximately $6.1 million USD at the prevailing exchange rate on the transaction date) from a bank in Canada under a mortgage note secured by the manufacturing facility located in Alberta, Canada that matures on December 23, 2042 . The interest rate is variable, currently at 4.7% with monthly payments of $31 thousand CAD (approximately $24 thousand USD) for interest; principal payments begin January 2017.

Fair value of financial instrum

Fair value of financial instruments	6 Months Ended
	Jul. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Disclosures [Text Block]	Fair Value. In relation to the acquisition of BPPC, the Company estimated the fair value of the assets acquired and liabilities assumed at acquisition date. See "Notes to Consolidated Financial Statements Note 3 Acquisition", for a further discussion of this purchase. The carrying values of cash and cash equivalents, accounts receivable and accounts payable are reasonable estimates of their fair value due to their short-term nature. The carrying amount of the Company's short-term debt, revolving line of credit and long-term debt approximate fair value, because the majority of the amounts outstanding accrue interest at variable rates. The Company held a marketable equity security of approximately $0.1 million at July 31, 2016 , which it classified as available-for-sale and recorded in other non-current assets on the Consolidated Balance Sheet. This security is carried at estimated fair value with unrealized gains and losses reflected in Accumulated Other Comprehensive Income and classified as Level 1 in the fair value hierarchy. The assessment for impairment of marketable equity securities as available-for sale is based on established financial methodologies, including quoted market prices for publicly traded securities. If the Company determines that a loss in the value of the investment is other than temporary, any such losses are recorded in other expense (income), net.

Other accrued liabilities (Note

Other accrued liabilities (Notes)	6 Months Ended
	Jul. 31, 2016
Other accrued liabilities [Abstract]
Other Liabilities Disclosure [Text Block]	Other accrued liabilities. In the second quarter, the Company recorded a legal settlement accrual of $0.8 million , which is included in other accrued liabilities.

Recent accounting pronouncement

Recent accounting pronouncements	6 Months Ended
	Jul. 31, 2016
Recent accounting pronouncements [Abstract]
Recent accounting pronouncements [Text Block]	Recent accounting pronouncements . In August 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments. The new standard provides guidance on eight targeted areas and how they are presented and classified in the statement of cash flows. The guidance is effective for fiscal years beginning after December 15, 2017. The Company is currently evaluating the effect that this standard will have on the consolidated financial statements. In March 2016, the FASB issued guidance relating to the accounting for share-based payment transactions. This guidance involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classifications of awards as either equity or liabilities and classification on the statement of cash flows. The standard is effective for the Company beginning in its fiscal year 2017, including interim periods within those fiscal years, and early adoption is permitted. The Company is currently evaluating the effect that this standard will have on the consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This ASU requires entities to recognize assets and liabilities for most leases on their balance sheets. It also requires additional qualitative and quantitative disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. ASU No. 2016-02 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the effect that this standard will have on the consolidated financial statements and related disclosures. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40) - Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). ASU 2014-15 provides guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and for annual periods and interim periods thereafter. Early adoption is permitted. The adoption of ASU 2014-15 is not expected to have an impact on the Company’s consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. This new standard provides for a single comprehensive model and supersedes most current revenue recognition guidance, including industry specific guidance, and provides for enhanced disclosure requirements. The objective of the new guidance is to improve the consistency, comparability and usefulness to users of financial statements. On April 1, 2015, FASB decided to defer the effective date of the new revenue standard by one year. As a result, public entities would apply the new revenue standard for fiscal years, and interim periods within those years, beginning after December 15, 2017. ASU 2014-09 provides for two implementation methods (1) full retrospective application to each prior period or (2) modified retrospective application with the cumulative effect as of the date of adoption. The Company is evaluating the financial statement impacts of the guidance in this ASU and determining which transition method will be utilized.

Reclassifications (Notes)

Reclassifications (Notes)	6 Months Ended
	Jul. 31, 2016
Reclassifications [Abstract]
Reclassifications [Text Block]	Reclassifications. Reclassifications were made to the prior-year balance sheet to conform to the current-year presentations.

Business segment (Tables)

Business segment (Tables)	6 Months Ended
	Jul. 31, 2016
Business segment reporting [Abstract]
Business segment reporting [Table Text Block]	Three Months Ended July 31, Six Months Ended July 31, 2016 2015 2016 2015 Net sales Piping Systems $22,859 $25,147 $45,928 $45,424 Gross profit Piping Systems $2,980 $3,126 $4,972 $5,481 Loss from operations Piping Systems ($714 ) ($825 ) ($2,415 ) ($2,251 ) Corporate ($1,126 ) ($1,705 ) (3,930 ) (3,849 ) Total loss from operations ($1,840 ) ($2,530 ) ($6,345 ) ($6,100 )

Acquisition (Tables)

Acquisition (Tables)	6 Months Ended
	Jul. 31, 2016
Business Acquisition [Line Items]
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]	Total purchase consideration: Cash $7,587 Loan payable 2,000 Purchase consideration to third party 9,587 Fair Value of 49% Previously Held Equity Interest 7,492 Total purchase consideration $17,079 Fair value of net assets acquired: Cash and cash equivalents $2,915 Property and equipment 12,670 Goodwill 2,657 Net working capital 406 Other assets (liabilities) net (1,569 ) Net assets acquired $17,079
Business Acquisition, Pro Forma Information [Table Text Block]	Three Months Ended July 31, Six Months Ended July 31, 2016 2015 2016 2015 Revenue $22,859 $26,935 $45,928 $56,271 Net income (loss) 449 (2,448 ) (5,845 ) (6,916 ) Earnings (loss) per share basic and diluted $0.06 ($0.34 ) ($0.79 ) ($0.95 )

Discontinued operations (Tables

Discontinued operations (Tables)	6 Months Ended
	Jul. 31, 2016
Discontinued operations
Disposal Groups, Including Discontinued Operations [Table Text Block]	Three Months Ended July 31, Six Months Ended July 31, 2016 2015 2016 2015 Net sales $3,276 $14,914 $10,467 $32,311 Gain on disposal of discontinued operations $1,605 $— $2,472 $— Income (loss) from discontinued operations $423 ($35 ) (660 ) (1,338 ) Income (loss) from discontinued operations before income taxes 2,028 (35 ) 1,812 (1,338 ) Income tax expense 719 88 703 88 Income (loss) from discontinued operations, net of tax $1,309 ($123 ) $1,109 ($1,426 ) Components of assets and liabilities from discontinued operations consist of the following: July 31, 2016 January 31, 2016 Current assets Cash and cash equivalents $— $5 Trade accounts receivable, net 597 5,720 Inventories, net — 2,000 Other assets 212 1,552 Property, plant and equipment, net of accumulated depreciation 1,739 6,456 Total assets from discontinued operations $2,548 $15,733 Current liabilities Trade accounts payable, accrued expenses and other $1,320 $7,514 Current maturities of long-term debt — 5,322 Other liabilities — 2,629 Total liabilities from discontinued operations $1,320 $15,465 Cash flows from discontinued operations: Six Months Ended July 31, 2016 2015 Net cash (used in) provided by discontinued operating activities ($208 ) $224 Net cash provided by (used in) discontinued investing activities 7,574 (1,295 ) Net cash (used in) provided by discontinued financing activities (7,365 ) 754

Other intangible assets with 26

Other intangible assets with definite lives (Tables)	6 Months Ended
	Jul. 31, 2016
Other intangible assets with definite lives [Abstract]
Patent amortization expense [Table Text Block]	Three Months Ended July 31, Six Months Ended July 31, 2016 2015 2016 2015 Patent amortization expense $11 $13 $22 $26

Stock-based compensation Stock

Stock-based compensation Stock Compensation (Tables)	6 Months Ended
	Jul. 31, 2016
Stock-based compensation [Abstract]
Stock-based compensation expense [Table Text Block]	Three Months Ended July 31, Six Months Ended July 31, 2016 2015 2016 2015 Stock-based compensation benefit ($282 ) ($96 ) ($284 ) ($37 ) Restricted stock based compensation expense $390 $169 $668 $258
Fair value assumptions [Table Text Block]	Six Months Ended July 31, Fair value assumptions 2016 2015 Expected volatility 40.88% - 57.02% 40.88% - 59.39% Risk free interest rate .74% - 1.77% .74% - 1.77% Dividend yield none none Expected life 5.0 - 5.1 years 4.9 - 5.1 years
Option activity [Table Text Block]	Option activity Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at January 31, 2016 720 $11.38 5.1 $34 Granted 22 7.33 Exercised (28 ) 6.50 26 Expired or forfeited (110 ) 10.42 Outstanding end of period 604 11.63 4.9 259 Exercisable end of period 511 $12.05 4.3 $220
Unvested option activity [Table Text Block]	Unvested option activity Options Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Outstanding at January 31, 2016 166 $9.51 $— Granted 22 7.33 Vested (60 ) Expired or forfeited (35 ) 8.99 Outstanding end of period 93 $9.33 $39
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block]	Restricted stock activity Restricted Shares Weighted Average Grant Price Per Share Aggregate Intrinsic Value Outstanding at January 31, 2016 163 $8.60 $1,040 Granted 241 7.26 Issued (94 ) Forfeited (1 ) 6.38 Outstanding end of period 309 $7.91 $2,157

Earnings per share (Tables)

Earnings per share (Tables)	6 Months Ended
	Jul. 31, 2016
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three Months Ended July 31, Six Months Ended July 31, 2016 2015 2016 2015 Basic weighted average common shares outstanding 7,481 7,277 7,416 7,264 Dilutive effect of equity compensation plans 122 — — — Weighted average common shares outstanding assuming full dilution 7,603 7,277 7,416 7,264 Stock options not included in the computation of diluted earnings per share of common stock because the option exercise prices exceeded the average market prices of the common shares 356 740 378 672 Stock options with an exercise price below the average market price 248 16 226 84

Interest expense, net (Tables)

Interest expense, net (Tables)	6 Months Ended
	Jul. 31, 2016
Interest expense, net [Abstract]
Interest income and interest expense [Table Text Block]	Three Months Ended July 31, Six Months Ended July 31, 2016 2015 2016 2015 Interest expense $139 $172 $392 $367 Interest income (42 ) (10 ) (69 ) (284 ) Interest expense, net $97 $162 $323 $83

Business segment reporting (Det

Business segment reporting (Details) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jul. 31, 2016USD ($)Segments	Jul. 31, 2015USD ($)	Jul. 31, 2016USD ($)	Jul. 31, 2015USD ($)	Jan. 31, 2016
Segment reporting
Number of reportable segments | Segments	1
Net sales	$ 22,859	$ 25,147	$ 45,928	$ 45,424
Gross profit	2,980	3,126	4,972	5,481
Loss from operations	(1,840)	(2,530)	$ (6,345)	(6,100)
Piping Systems [Member]
Segment reporting
Segment Reporting Information, Description of Products and Services			Piping Systems engineers, designs, manufactures and sells specialty piping, leak detection and location systems
Net sales	22,859	25,147	$ 45,928	45,424
Gross profit	2,980	3,126	4,972	5,481
Loss from operations	(714)	(825)	(2,415)	(2,251)
Corporate Segment [Member]
Segment reporting
Loss from operations	$ (1,126)	$ (1,705)	$ (3,930)	$ (3,849)
Credit Concentration Risk [Member]
Segment reporting
Concentration Risk, Percentage			16.00%		46.00%
Sales Revenue, Net [Member]
Segment reporting
Concentration Risk, Percentage		10.20%	10.70%

Acquisition (Details)

Acquisition (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015	Jan. 31, 2016
Business Acquisition [Line Items]
Business Acquisition, Name of Acquired Entity			Bayou Perma-Pipe Canada, Ltd
Business Acquisition, Description of Acquired Entity			a coating and insulation company in Camrose, Alberta
Business Acquisition, Date of Acquisition Agreement			Feb. 4, 2016
Equity Method Investment, Ownership Percentage					49.00%
Cash			$ 7,587
Loan payable			2,000
Purchase consideration to third party			9,587
Fair Value of 49% Previously Held Equity Interest			7,492
Total purchase consideration			17,079
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents	$ 2,915		2,915
Property and equipment	12,670		12,670
Goodwill	2,657		2,657		$ 0
Business combination, net working capital	406		406
Business Combination, other assets (liabilities) net Acquired and Liabilities Assumed, Noncurrent Liabilities	(1,569)		(1,569)
Net assets acquired	17,079		17,079
Business Acquisition, Transaction Costs	200		200
Loss on consolidation of joint venture	0	$ 0	1,620	$ 0
Net sales	22,859	25,147	45,928	45,424
Business acquisition, pro forma net sales		26,935		56,271
Net income (loss)	$ 449	(2,391)	$ (5,845)	(7,046)
Business acquisition, pro forma net loss		$ (2,448)		$ (6,916)
Business acquisition, pro forma loss per share, basic and diluted		$ (0.34)		$ (0.95)
Earnings (loss) per share, basic and diluted	$ 0.06	$ (0.33)	$ (0.79)	$ (0.97)

Discontinued operations (Detail

Discontinued operations (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jul. 31, 2016	Jan. 31, 2016
Discontinued operations
Disposal Date		Jan. 29, 2016
Sale price of discontinued operations		$ 22,000
Net proceeds from divestiture of businesses		$ 18,400
escrow	$ 500

Discontinued operations Discont

Discontinued operations Discontinued financials (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015	Jan. 31, 2016
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Property, Plant and Equipment, Disposals			$ 7,100
Proceeds from Sale of Buildings			1,900
Disposal Group, Including Discontinued Operation, Revenue	$ 3,276	$ 14,914	10,467	$ 32,311
Gain on disposal of discontinued operations	1,605	0	2,472	0
Income (loss) from discontinued operations	423	(35)	(660)	(1,338)
Income (loss) from discontinued operations before income tax	2,028	(35)	1,812	(1,338)
Discontinued operation, income tax expense	719	88	703	88
Income (loss) from discontinued operations, net of tax	1,309	$ (123)	1,109	(1,426)
Disposal Group, Including Discontinued Operation, Cash and Cash Equivalents	0		0		$ 5
Disposal Group, Including Discontinued Operation, accounts receivable, net	597		597		5,720
Disposal Group, Including Discontinued Operation, Inventory	0		0		2,000
Disposal Group, Including Discontinued Operation, Other Assets	212		212		1,552
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment	1,739		1,739		6,456
Disposal Group, Including Discontinued Operation, Assets	2,548		2,548		15,733
Disposal Group, Including Discontinued Operation, Accounts Payable and Accrued Liabilities	1,320		1,320		7,514
Disposal Group, current maturities	0		0		5,322
Disposal Group, Including Discontinued Operation, Liabilities, Noncurrent	0		0		2,629
Disposal Group, Including Discontinued Operation, Liabilities	$ 1,320		1,320		$ 15,465
Cash (used in) provided by operating activities, discontinued operations			(208)	224
Cash Provided by (Used in) Investing Activities, Discontinued Operations			7,574	(1,295)
Cash (used in) provided by financing activities, discontinued operations			$ (7,365)	$ 754

Income taxes Income taxes (Deta

Income taxes Income taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015
Income tax [Abstract]
effective income tax rate from continuing operations	55.60%	17.30%	16.10%	7.40%
Unrecognized tax benefits	$ 143		$ 143
Unrecognized tax benefits, income tax penalties and interest expense	1
Unrecognized tax benefits, income tax penalties and interest accrued	$ 47		$ 47
Income Tax Contingency [Line Items]
Income Tax Examination, Description			IRS began an audit of the fiscal year ended January 31, 2015

Impairment of long lived asse35

Impairment of long lived assets (Details)	6 Months Ended
	Jul. 31, 2016
Property, Plant and Equipment [Line Items]
Impairment of Tangible Assets, Other Descriptors	There was no impairment of long-lived assets as of July 31, 2016 and January 31, 2016

Other intangible assets with 36

Other intangible assets with definite lives (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015	Jan. 31, 2016
Other intangible assets with definite lives [Abstract]
Finite-Lived Intangible Assets, Amortization Method			Patents are capitalized and amortized on a straight-line basis over a period not to exceed the legal lives of the patents.
Finite Lived Intangible Assets, Intent or Ability to Renew or Extend Arrangement			The Company expenses costs incurred to renew or extend the term of intangible assets
Gross patents	$ 2,612		$ 2,612		$ 2,586
Accumulated amortization	2,357		2,357		$ 2,335
Amortization expense, next twelve months	23		23
Amortization expense, year two	42		42
Amortization expense, year three	34		34
Amortization expense, year four	31		31
Amortization expense, year five	24		24
Amortization expense, thereafter	101		101
Patent amortization expense	$ 11	$ 13	$ 22	$ 26

Stock-based compensation Stock-

Stock-based compensation Stock-based compensation expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015
Stock-based compensation expense [Abstract]
Stock-based compensation benefit	$ (282)	$ (96)	$ (284)	$ (37)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock based compensation expense	$ 390	$ 169	$ 668	$ 258

Stock-based compensation Fair v

Stock-based compensation Fair value assumptions (Details)	6 Months Ended
	Jul. 31, 2016	Jul. 31, 2015
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	40.88%	40.88%
Risk free interest rate	0.74%	0.74%
Dividend yield	0.00%	0.00%
Expected life	5 years	4 years 10 months 24 days
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	57.02%	59.39%
Risk free interest rate	1.77%	1.77%
Dividend yield	0.00%	0.00%
Expected life	5 years 1 month 12 days	5 years 1 month 12 days

Stock-based compensation (Detai

Stock-based compensation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended	6 Months Ended
	Jan. 31, 2016	Jul. 31, 2016
Option activity [Line Items]
Granted		22
Weighted average grant date fair value		$ 7.33
Unrecognized compensation expense		$ 300
Unrecognized compensation expense recognized period		2 years 3 months 30 days
Restricted Stock [Member]
Option activity [Line Items]
Unrecognized compensation expense		$ 800
Unrecognized compensation expense recognized period		2 years 10 months 30 days
Stock Option [Member]
Option activity [Line Items]
Outstanding at beginning of year	720
Weighted Average Exercise Price Per Share	$ 11.38
Weighted Average Remaining Contractual Term	5 years 1 month 4 days
Options Outstanding Aggregate Intrinsic Value	$ 34	$ 259
Granted		22
Weighted average grant date fair value		$ 7.33
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period		(28)
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price		$ 6.50
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value		$ 26
Expired or forfeited		(110)
Expired or Forfeited Weighted Average Exercise Price Per Share		$ 10.42
Outstanding end of period		604
Outstanding Weighted Average Exercise Price Per Share		$ 11.63
Outstanding Weighted Average Remaining Contractual Term		4 years 10 months 30 days
Exercisable end of period		511
Exercisable Weighted Average Exercise Price Per Share		$ 12.05
Exercisable Weighted Average Remaining Contractual Term		4 years 3 months 8 days
Exercisable Aggregate Intrinsic Value		$ 220
unvested option [Member]
Option activity [Line Items]
Outstanding at beginning of year	166	93
Weighted Average Exercise Price Per Share	$ 9.51	$ 9.33
Options Outstanding Aggregate Intrinsic Value	$ 0	$ 39
Vested		(60)
Expired or forfeited		(35)
Expired or Forfeited Weighted Average Exercise Price Per Share		$ 8.99

Stock-based compensation Restri

Stock-based compensation Restricted stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Jul. 31, 2016	Jan. 31, 2016
Outstanding	309	163
weighted average, outstanding	$ 7.91	$ 8.60
Aggregate Intrinsic Value, Outstanding	$ 2,157	$ 1,040
Granted	241
Weighted Average Grant Date Fair Value	$ 7.26
Issued	(94)
Stock Issued During Period, Shares, Restricted Stock Award, Forfeited	(1)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value	$ 6.38

Earnings per share (Details)

Earnings per share (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015
Earnings per share [Line Items]
Basic weighted average common shares outstanding	7,481	7,277	7,416	7,264
Dilutive effect of equity incentive plans	122	0	0	0
Weighted average common shares outstanding assuming full dilution	7,603	7,277	7,416	7,264
Stock options not included in the computation of diluted earnings per share of common stock because the option exercise prices exceeded the average market prices of the common shares	356	740	378	672
Stock options with an exercise price below the average market price	248	16	226	84

Interest expense, net (Details)

Interest expense, net (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015
Interest expense, net [Abstract]
Interest expense	$ 139	$ 172	$ 392	$ 367
Interest income	(42)	(10)	(69)	(284)
Interest expense, net	$ 97	$ 162	$ 323	$ 83

Debt (Details)

Debt (Details) $ in Millions	6 Months Ended
	Jul. 31, 2016USD ($)Rate
Debt [Line Items]
Debt	$ 12.3
Debt, net change	$ (3.2)
UNITED STATES
Debt [Line Items]
Maturity date	Sep. 24, 2019
Line of Credit Facility, Maximum Borrowing Capacity	$ 15
Line of Credit Facility, Covenant Terms	require attainment of specific levels of profitability and cash flows
Line of Credit Facility, Covenant Compliance	in compliance
Line of Credit Facility, Interest Rate Description	(a) a margin in effect plus a base rate, if below certain availability limits; or (b) a margin in effect plus the Eurodollar rate for the corresponding interest period.
Revolving line, amount outstanding	$ 3.8
Prime interest rate | Rate	3.50%
Eurodollar interest rate | Rate	2.22%
Revolving line, remaining borrowing capacity	$ 7
Letters of Credit Outstanding, Amount	0.3
Foreign Line of Credit [Member]
Debt [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 29.1
Line of Credit Facility, Covenant Terms	The Company's credit arrangement covenants require a minimum tangible net worth to be maintained
Line of Credit Facility, Covenant Compliance	in compliance with the covenants under the credit arrangements.
Line of Credit Facility, Collateral change	certain equipment, certain assets, such as accounts receivable and inventory, and a guarantee by the Company
Line of Credit Facility, Interest Rate Description	interest rates were 4.0% per annum below National Bank of Fujairah Base Rate, minimum 3.5% per annum, and Emirates Inter Bank Offered Rate (EIBOR) plus 3.5% per annum. At July 31 2016, the Company's interest rates range from 3.5% to 6.0%
Revolving line, amount outstanding	$ 0.8
Revolving line, remaining borrowing capacity	20.6
Letters of Credit Outstanding, Amount	$ 7.7

Debt Note payable (Details)

Debt Note payable (Details) $ in Thousands	6 Months Ended
	Jul. 31, 2016USD ($)Rate
Short-term Debt [Line Items]
Payment of promissory note	$ 2,000
Repayments of affiliated debt	$ 2,200
Long-term Debt [Member]
Short-term Debt [Line Items]
Debt Instrument, Issuance Date	Jul. 28, 2016
Face value of debt in local currency	$8.0 million CAD
Debt Instrument, Face Amount	$ 6,100
Debt Instrument, Maturity Date	Dec. 23, 2042
Debt Instrument, Interest Rate, Effective Percentage | Rate	4.70%
Debt Instrument, Periodic Payment, Interest	$ 24

Fair value of financial instr45

Fair value of financial instruments (Details) $ in Millions	Jul. 31, 2016USD ($)
Marketable Securities	$ 0.1

Other accrued liabilities (Deta

Other accrued liabilities (Details) $ in Millions	6 Months Ended
	Jul. 31, 2016USD ($)
Other accrued liabilities [Abstract]
Litigation Settlement, Amount	$ 0.8