Entity information Document
Entity information Document - USD ($) | 9 Months Ended | ||
Oct. 31, 2017 | Dec. 12, 2017 | Jul. 31, 2016 | |
Document Information | |||
Entity Registrant Name | Perma-Pipe International Holdings, Inc. | ||
Trading Symbol | PPIH | ||
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 | Oct. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | Q3 | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 7,712,217 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 49,044,548 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | |
Net sales | $ 27,498 | $ 25,302 | $ 77,851 | $ 71,230 |
Cost of sales | 24,178 | 21,605 | 69,688 | 62,561 |
Gross profit | 3,320 | 3,697 | 8,163 | 8,669 |
Operating expenses | ||||
General and administrative expenses | 4,314 | 3,490 | 12,456 | 12,398 |
Selling expenses | 1,297 | 1,382 | 3,920 | 4,236 |
Total operating expenses | 5,611 | 4,872 | 16,376 | 16,634 |
Loss from operations | (2,291) | (1,175) | (8,213) | (7,965) |
Loss on consolidation of joint venture | 0 | 0 | 0 | (1,620) |
Interest expense, net | 193 | 112 | 507 | 435 |
Loss from continuing operations before income taxes | (2,484) | (1,287) | (8,720) | (10,020) |
Income tax expense (benefit) | 808 | 2,411 | (241) | 1,077 |
Loss from continuing operations | (3,292) | (3,698) | (8,479) | (11,097) |
(Loss) income from discontinued operations, net of tax | 0 | (203) | 0 | 906 |
Net loss | $ (3,292) | $ (3,901) | $ (8,479) | $ (10,191) |
Weighted average common shares outstanding | ||||
Basic and diluted | 7,714 | 7,541 | 7,668 | 7,457 |
Loss per share from continuing operations | ||||
Basic and diluted | $ (0.43) | $ (0.49) | $ (1.11) | $ (1.49) |
(Loss) earnings per share from discontinued operations | ||||
Basic and diluted | 0 | (0.03) | 0 | 0.12 |
Loss per share | ||||
Basic and diluted | $ (0.43) | $ (0.52) | $ (1.11) | $ (1.37) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | |
Net loss | $ (3,292) | $ (3,901) | $ (8,479) | $ (10,191) |
Other comprehensive (loss) income | ||||
Foreign currency translation adjustments, net of tax | (250) | (577) | 822 | 457 |
Unrealized loss on marketable security, net of tax | 0 | 9 | (92) | 5 |
Other comprehensive (loss) income | (250) | (568) | 730 | 462 |
Comprehensive loss | $ (3,542) | $ (4,469) | $ (7,749) | $ (9,729) |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Oct. 31, 2017 | Jan. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 8,373 | $ 7,603 |
Restricted cash | 898 | 1,098 |
Trade accounts receivable, less allowance for doubtful accounts of $128 at October 31, 2017 and $305 at January 31, 2017 | 28,884 | 31,271 |
Inventories, net | 14,005 | 13,565 |
Assets of discontinued operations | 0 | 25 |
Prepaid expenses and other current assets | 3,052 | 2,171 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 2,422 | 2,091 |
Total current assets | 57,634 | 57,824 |
Property, plant and equipment, net of accumulated depreciation | 34,882 | 36,275 |
Other assets | ||
Deferred tax assets - long-term | 693 | 147 |
Goodwill | 2,317 | 2,279 |
Other assets | 5,157 | 5,086 |
Total other assets | 8,167 | 7,512 |
Total assets | 100,683 | 101,611 |
Current liabilities | ||
Trade accounts payable | 9,462 | 10,901 |
Accrued compensation and payroll taxes | 3,429 | 4,236 |
Commissions and management incentives payable | 1,070 | 1,845 |
Revolving line North America | 9,088 | 3,813 |
Current maturities of long-term debt | 1,218 | 658 |
Customers' deposits | 4,206 | 2,640 |
Outside commissions payable | 1,802 | 1,612 |
Liabilities of discontinued operations | 138 | 199 |
Billings in excess of costs and estimated earnings on uncompleted contracts | 1,944 | 1,100 |
Other accrued liabilities | 2,170 | 2,360 |
Income taxes payable | 1,152 | 684 |
Total current liabilities | 35,679 | 30,048 |
Long-term liabilities | ||
Long-term debt, less current maturities | 7,577 | 7,258 |
Deferred compensation liabilities | 2,575 | 2,523 |
Deferred tax liabilities - long-term | 1,864 | 1,829 |
Other long-term liabilities | 575 | 540 |
Total long-term liabilities | 12,591 | 12,150 |
Stockholders' equity | ||
Common stock, $.01 par value, authorized 50,000 shares; 7,716 issued and outstanding at October 31, 2017 and 7,595 issued and outstanding at January 31, 2017 | 77 | 76 |
Additional paid-in capital | 55,936 | 55,358 |
Treasury stock, 27 shares at January 31,2017 | 0 | (170) |
Retained (deficit) earnings | (1,606) | 6,873 |
Accumulated other comprehensive loss | (1,994) | (2,724) |
Total stockholders' equity | 52,413 | 59,413 |
Total liabilities and stockholders' equity | $ 100,683 | $ 101,611 |
Balance Sheet parenthetical (Pa
Balance Sheet parenthetical (Parentheticals) - USD ($) shares in Thousands, $ in Thousands | Oct. 31, 2017 | Jan. 31, 2017 |
Allowance for doubtful accounts receivable | $ 128 | $ 305 |
Common stock, par value per share | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 50,000 | 50,000 |
Common stock, shares issued | 7,716 | 7,622 |
Common stock, shares outstanding | 7,716 | 7,595 |
Treasury stock, number of shares held | 0 | 27 |
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 | 7,305,925 | |||||
Treasury stock released | 17,813 | |||||
Shares issued | 271,771 | |||||
Stockholders' equity | $ 59,413 | $ 76 | $ 55,358 | $ (170) | $ 6,873 | $ (2,724) |
Shares, Outstanding | 7,595,509 | |||||
Net loss | (8,479) | (8,479) | ||||
Common stock issued under stock plans, net of shares used for tax withholding | (46) | $ 1 | (217) | $ 170 | ||
Stock-based compensation expense | 795 | 795 | ||||
Marketable security unrealized gain/loss | (142) | (142) | ||||
Foreign currency translation adjustment | 782 | 782 | ||||
Tax benefit/expense on above items | 90 | 90 | ||||
Treasury stock released | 26,753 | |||||
Shares issued | 93,395 | |||||
Stockholders' equity | $ 52,413 | $ 77 | $ 55,936 | $ 0 | $ (1,606) | $ (1,994) |
Shares, Outstanding | 7,715,657 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 31, 2017 | Oct. 31, 2016 | |
Operating activities | ||
Net loss | $ (8,479) | $ (10,191) |
Adjustments to reconcile net loss to net cash flows used in operating activities | ||
Depreciation and amortization | 3,772 | 4,258 |
Gain on disposal of subsidiaries | 0 | (186) |
Deferred tax benefit | (544) | (93) |
Stock-based compensation expense | 795 | 767 |
Loss on consolidation of joint venture | 0 | 1,620 |
Cash surrender value on life insurance policies | 0 | (136) |
Loss (gain) on disposal of fixed assets | (8) | 292 |
Provision on uncollectible accounts | (324) | 500 |
Gain from sale of marketable securities | (142) | 0 |
Changes in operating assets and liabilities | ||
Accounts receivable | 2,989 | 14,860 |
Inventories | (375) | 4,709 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 513 | (736) |
Accounts payable | (1,627) | (5,268) |
Accrued compensation and payroll taxes | (1,633) | (9,047) |
Customers' deposits | 1,566 | (1,880) |
Income taxes receivable and payable | (621) | 671 |
Prepaid expenses and other current assets | (196) | (742) |
Other assets and liabilities | 105 | (4,992) |
Net cash used in operating activities | (4,193) | (6,178) |
Investing activities | ||
Acquisition of interest in subsidiary, net of cash acquired | 0 | (4,672) |
Capital expenditures | (2,082) | (1,544) |
Proceeds from surrender of corporate-owned life insurance policies | 0 | 1,894 |
Proceeds from sale marketable securities | 142 | 0 |
Proceeds from sales of property and equipment | 1 | 13,962 |
Net cash (used in) provided by investing activities | (1,939) | 9,640 |
Financing activities | ||
Proceeds from revolving lines | 31,652 | 32,908 |
Proceeds from debt | 0 | 6,048 |
Payments of debt on revolving lines of credit | (26,055) | (39,807) |
Payments of other debt | (161) | (10,077) |
Decrease in drafts payable | (4) | (184) |
Borrowings (payments) on capitalized lease obligations | 632 | (1,429) |
Release of treasury stock | 170 | 0 |
Stock options exercised and restricted shares issued | (216) | 363 |
Net cash provided by (used in) financing activities | 6,018 | (12,178) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 684 | (285) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 570 | (9,001) |
Cash, cash equivalents and restricted cash - beginning of period | 8,701 | 18,955 |
Cash, cash equivalents and restricted cash - end of period | 9,271 | 9,954 |
Supplemental cash flow information | ||
Interest paid | 584 | 605 |
Income taxes paid | 786 | 1,281 |
Fixed assets acquired under capital leases | 841 | 0 |
Funds held in escrow related to the sale of Filtration assets | $ 250 | $ 502 |
Basis of presentation
Basis of presentation | 9 Months Ended |
Oct. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation [Text Block] | Basis of presentation. The interim consolidated financial statements of Perma-Pipe International Holdings, Inc. and subsidiaries ("PPIH," "Company," or "Registrant") are unaudited, but include all adjustments that 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, 2017 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 2017 and 2016 are for the nine months ended October 31, 2017 and 2016 , respectively. |
Business segment reporting
Business segment reporting | 9 Months Ended |
Oct. 31, 2017 | |
Segment reporting [Line Items] | |
Segment Reporting Disclosure [Text Block] | Business segment reporting. As of January 31, 2016, PPIH 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 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. For further information, see "Notes to Consolidated Financial Statements, Note 4 Discontinued operations". For the three months ended October 31, 2017 , no individual customer accounted for 10% or more of the Company's consolidated net sales, and for the three months ended October 31, 2016 one customer accounted for 17.0% of the Company's consolidated net sales. For the nine months ended October 31, 2017 and 2016, no individual customer accounted for 10% or more of the Company's consolidated net sales. At October 31, 2017 , one customer accounted for 19% of all accounts receivable. Two customers accounted for 33% of all accounts receivable at January 31, 2017 . Three Months Ended October 31, Nine Months Ended October 31, 2017 2016 2017 2016 Net sales Piping Systems $27,498 $25,302 $77,851 $71,230 Gross profit Piping Systems $3,320 $3,697 $8,163 $8,669 Income (loss) from operations Piping Systems ($428 ) $640 ($1,825 ) ($1,775 ) Corporate ($1,863 ) ($1,815 ) (6,388 ) (6,190 ) Total loss from operations ($2,291 ) ($1,175 ) ($8,213 ) ($7,965 ) |
Correction of immaterial error
Correction of immaterial error (Notes) | 9 Months Ended |
Oct. 31, 2017 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Accounting Changes and Error Corrections [Text Block] | Correction of immaterial errors. An error was identified during the preparation and review of the second quarter financial statements, as stock-based compensation cost and additional paid in capital had been reversed for vested equity awards that expired, terminated or were unexercised . The cumulative adjustment for the stock-based compensation cost covering the period from May 1, 2015 to January 31, 2016 was approximately $846 thousand . The adjustments applicable to the fiscal year ending January 31, 2017 were approximately $95 thousand for the three months ending April 30, 2016, $350 thousand for the three months ending July 31, 2016, $138 thousand for the three months ending October 31, 2016, and $213 thousand for the three months ending January 31, 2017. Pursuant to the guidance of Staff Accounting Bulletin ("SAB") No. 99, Materiality, the Company concluded that the errors were not material to any of its prior period financial statements. The prior period financial statements were revised, in accordance with SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements . A reconciliation of the effects of the adjustments to the previously reported balance sheet and stockholders' equity at January 31, 2017 follows: As Reported Adjustment Revised Additional paid in capital $53,716 $1,642 $55,358 Retained earnings 8,515 (1,642 ) 6,873 A reconciliation of the effects of the adjustments to the previously reported statement of operations for the three months ending October 31, 2016 follows: As Reported Adjustment Revised General and administrative expense $3,352 $138 $3,490 Total operating expenses 4,734 138 4,872 Loss from operations (1,037 ) (138 ) (1,175 ) Loss from continuing operations before income taxes (1,149 ) (138 ) (1,287 ) Loss from continuing operations (3,560 ) (138 ) (3,698 ) Net loss (3,763 ) (138 ) (3,901 ) Loss per share from continuing operations (0.47 ) (0.02 ) (0.49 ) Loss per share (0.50 ) (0.02 ) (0.52 ) A reconciliation of the effects of the adjustments to the previously reported statement of operations for the nine months ending October 31, 2016 follows: As Reported Adjustment Revised General and administrative expense $11,815 $583 $12,398 Total operating expenses 16,051 583 16,634 Loss from operations (7,382 ) (583 ) (7,965 ) Loss from continuing operations before income taxes (9,437 ) (583 ) (10,020 ) Loss from continuing operations (10,514 ) (583 ) (11,097 ) Net loss (9,608 ) (583 ) (10,191 ) Loss per share from continuing operations (1.41 ) (0.08 ) (1.49 ) Loss per share (1.29 ) (0.08 ) (1.37 ) A reconciliation of the effects of the adjustments to the previously reported statement of cash flows for the nine months ending October 31, 2016 follows: As Reported Adjustment Revised Net loss ($9,608) ($583) ($10,191) Stock-based compensation expense 184 583 767 |
Discontinued operations (Notes)
Discontinued operations (Notes) | 9 Months Ended |
Oct. 31, 2017 | |
Discontinued operations | |
Discontinued Operations [Text Block] | Discontinued operations. The domestic fabric filter business, which was included in discontinued operations, sold product until operations ceased in the second quarter of 2016. 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 $0.1 million of tax benefit for the three months ended October 31, 2016 and $0.6 million of tax benefit for the nine months ended October 31, 2016 . Income (loss) from discontinued operations net of tax for the three and nine months ended October 31, 2016 and 2017 was as follows: Three Months Ended October 31, Nine Months Ended October 31, 2017 2016 2017 2016 Net sales from discontinued operations $— $— $— $10,467 (Loss) gain on disposal of discontinued operations — (2,204 ) — 268 Income from discontinued operations — 1,876 — 1,216 (Loss) income from discontinued operations before income taxes — (328 ) — 1,484 Income tax (benefit) expense — (125 ) — 578 (Loss) income from discontinued operations, net of tax $— ($203 ) $— $906 Components of assets and liabilities from discontinued operations consist of the following: October 31, 2017 January 31, 2017 Current assets Trade accounts receivable, net $— $25 Total assets from discontinued operations $— $25 Current liabilities Trade accounts payable, accrued expenses and other $138 $199 Total liabilities from discontinued operations $138 $199 Cash flows from discontinued operations: Nine Months Ended October 31, 2017 2016 Net cash used in discontinued operating activities ($36 ) ($673 ) Net cash provided by discontinued investing activities — 9,606 Net cash used in discontinued financing activities — (8,933 ) |
Income taxes
Income taxes | 9 Months Ended |
Oct. 31, 2017 | |
Income Tax Disclosure [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 United Arab Emirates ("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 third quarter and year-to-date was 32.5% and 2.8% , respectively, compared to (187.3)% and (10.7)% during the respective prior-year periods. The change in the ETR from the prior year-to-date to the current year-to-date was mainly due to changes in the foreign income and loss activities. The amount of unrecognized tax benefits, including interest and penalties, at October 31, 2017 , recorded in other long-term liabilities was $0.2 million , all of which would impact the Company’s ETR if recognized. The Company includes accrued interest and penalties related to uncertain tax positions in income tax expense, with $1,150 included in expense for the current quarter. The amount of accrued interest and penalties at October 31, 2017 associated with unrecognized tax benefits was $49,100 . The Company files income tax returns in U.S. federal and state jurisdictions. The Internal Revenue Service ("IRS") began an audit of the fiscal year ended January 31, 2015 in August 2016. In August 2017, the Company received a notice from the IRS that it had concluded the tax audit for the year ended January 31, 2015. No changes were made to the reported tax. |
Long-lived assets and Goodwill
Long-lived assets and Goodwill (Notes) | 9 Months Ended |
Oct. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |
Impairment of long-lived assets | Impairment of long-lived assets. 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. A factor considered important that could trigger an impairment review includes a year-to-date loss from operations. An asset is considered impaired if its carrying amount exceeds the undiscounted future net cash flow the asset is expected to generate. Piping Systems has a year-to-date loss, but based on the Company's review, there was no impairment of long-lived assets as of October 31, 2017 or January 31, 2017 . Goodwill. The purchase price of an acquired company is allocated between intangible assets and the net tangible assets of the acquired business with the residual of the purchase price recorded as goodwill . All identifiable goodwill as of October 31, 2017 and January 31, 2017 is attributable to the purchase of Perma-Pipe Canada, Ltd. ("PPC") January 31, 2017 Foreign exchange change effect October 31, 2017 Goodwill $2,279 $38 $2,317 In January 2017, the Financial Accounting Standards Board ("FASB") issued authoritative guidance that simplifies the assessment of goodwill for impairment when the estimated fair value of a reporting unit is less than its carrying value by eliminating the requirement to determine the fair value of goodwill. Under the new guidance, the amount of goodwill impairment will be determined by the amount the carrying value of the reporting unit exceeds its fair value. The new guidance is effective for the Company beginning January 1, 2020, with early adoption permitted. The Company adopted this new guidance in the fourth quarter of 2016. The Company performs an impairment assessment of goodwill annually as of January 31 , or more frequently if triggering events occur, based on the estimated fair value of the related reporting unit or intangible asset. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. There was no impairment to goodwill as of October 31, 2017. |
Other intangible assets with de
Other intangible assets with definite lives (Notes) | 9 Months Ended |
Oct. 31, 2017 | |
Indefinite-Lived Intangible Assets (Excluding Goodwill) [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 $2.64 million as of October 31, 2017 and January 31, 2017 . Accumulated amortization was approximately $2.41 million and $2.38 million as of October 31, 2017 and January 31, 2017 , respectively. Full year amortizations for the next five years ending January 31 will be $45,600 in 2018 , $37,500 in 2019 , $34,700 in 2020 , $28,100 in 2021 , and $17,400 in 2022 , with the residual balance of $93,800 to be amortized in future periods thereafter. Patents are included in other assets in the consolidated balance sheets. Three Months Ended October 31, Nine Months Ended October 31, 2017 2016 2017 2016 Patent amortization expense $12 $12 $34 $34 |
Stock-based compensation
Stock-based compensation | 9 Months Ended |
Oct. 31, 2017 | |
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 October 31, Nine Months Ended October 31, 2017 2016 2017 2016 Stock-based compensation expense $21 $55 $80 $216 Restricted stock-based compensation expense $294 $151 $938 $819 Stock Options. The fair value of the outstanding option awards was estimated on the grant dates using the Black-Scholes option pricing model. Nine Months Ended October 31, Fair value assumptions 2017 2016 Expected volatility 43.2% 43.2% Risk free interest rate 1.2% 1.2% Dividend yield 0 0 Expected life 5.0 5.0 Option activity Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at January 31, 2017 524 $11.55 4.5 $534 Exercised (30 ) 6.77 37 Expired or forfeited (125 ) 18.75 Outstanding end of period 369 9.50 4.3 338 Exercisable end of period 335 $9.62 3.9 $303 Unvested option activity Options Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Outstanding at January 31, 2017 74 $9.31 $69 Vested (32 ) Expired or forfeited (8 ) 11.49 Outstanding end of period 34 $8.32 $35 As of October 31, 2017 , there was $0.1 million of total unrecognized compensation expense related to unvested stock options. The expense is expected to be recognized over a period of 1.8 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, 2017 290 $8.75 $2,540 Granted 172 8.02 Issued (55 ) Forfeited (39 ) 7.86 Outstanding end of period 368 $8.35 $2,955 As of October 31, 2017 , there was $1.6 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 2.2 years . |
Earnings per share
Earnings per share | 9 Months Ended |
Oct. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings per share [Text Block] | Earnings per share. Three Months Ended October 31, Nine Months Ended October 31, 2017 2016 2017 2016 Basic weighted average common shares outstanding 7,714 7,541 7,668 7,457 Dilutive effect of equity compensation plans — — — — Weighted average common shares outstanding assuming full dilution 7,714 7,541 7,668 7,457 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 143 270 143 336 Stock options with an exercise price below the average market price 226 304 226 238 |
Interest expense, net
Interest expense, net | 9 Months Ended |
Oct. 31, 2017 | |
Interest Income (Expense), Net [Abstract] | |
Interest Income and Interest Expense Disclosure [Text Block] | Interest expense, net. Three Months Ended October 31, Nine Months Ended October 31, 2017 2016 2017 2016 Interest expense $225 $164 $583 $556 Interest income (32 ) (52 ) (76 ) (121 ) Interest expense, net $193 $112 $507 $435 |
Debt
Debt | 9 Months Ended |
Oct. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Debt. Debt totaled $17.9 million at October 31, 2017 , a net increase of $6.2 million since January 31, 2017 . Revolving lines North America . On September 24, 2014 , the Company entered into the Credit and Security Agreement with a financial institution (as amended, "Credit Agreement"). Under the terms of the Credit Agreement, which matures on September 24, 2018 , the Company can borrow up to a combined $15.0 million in the U.S. and Canada, subject to borrowing base availability from secured domestic and certain Canadian assets, such as accounts receivable and inventory, and other requirements, under a revolving line of credit. The Credit Agreement covenants restrict debt, liens, share repurchases and investments, and require achieving a minimum fixed charge coverage ratio with respective performance metrics as defined by the Credit Agreement if a minimum availability is not met . In a seventh amendment to the Credit Agreement executed on December 14, 2017 , lenders increased the borrowing limit for the Company’s Canadian subsidiary and adjusted minimum availability requirements for borrowers in the U.S. and Canada with a limited waiver of related covenant non-compliance retroactive to October 31, 2017 . Other than noted above, the Company was in compliance with all covenants under the Credit Agreement as of October 31, 2017 . The North American revolving line balances as of October 31, 2017 and January 31, 2017 were included as current liabilities in the consolidated balance sheets, because the Credit Agreement has a subjective acceleration clause. 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. On October 31, 2017 , the Company had borrowed $9.1 million at 5.5% and 4.5% and had $0.7 million available to it under the revolving line of credit. In addition, $0.2 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. Some credit arrangement covenants require a minimum tangible net worth to be maintained, including maintaining certain levels of intercompany subordinated debt. In addition, some of the revolving credit facilities restrict payment of dividends. On October 31, 2017 , the Company was in compliance with the covenants under the credit arrangements. On October 31, 2017 , interest rates were based on the Emirates Inter Bank Offered Rate (EIBOR) plus 3.5% per annum, with a minimum interest rate of 4.5% per annum. On October 31, 2017, the Company's interest rates ranged from 5.0% to 6.5% , and the Company could borrow $13.5 million under these credit arrangements. On October 31, 2017 , $7.3 million of availability was used to support letters of credit to guarantee amounts committed for inventory purchases and for performance guarantees. On October 31, 2017 , the Company had borrowed $0.4 million and had, an additional $5.8 million available. The foreign revolving lines balances as of January 31, 2017 were included as current maturities of long-term debt in the consolidated balance sheets. On May 5, 2017 , Piping Systems obtained two capital leases for a total of $0.94 million CAD (approximately $0.7 million USD at the prevailing exchange rate on the transaction date) to finance vehicle equipment. The interest rate for these capital leases is 7.8% per annum with monthly principal and interest payments of $9 thousand , and these leases mature on April 30, 2021 . On October 20, 2017 , Piping Systems obtained a capital lease for $0.18 million CAD (approximately $0.1 million USD at the prevailing exchange rate on the transaction date) to finance vehicle equipment. The interest rate for these capital leases is 4.0% per annum with monthly principal and interest payments of $3 thousand , and these leases mature on September 29, 2022 . |
Restricted cash (Notes)
Restricted cash (Notes) | 9 Months Ended |
Oct. 31, 2017 | |
Restricted Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Restricted cash. Restricted cash held by foreign subsidiaries was $0.9 million as of October 31, 2017 and $1.1 million as of January 31, 2017 . Restricted cash held by foreign subsidiaries related to an escrow account from the sale of Nordic Air Filtration and fixed deposits that also serve as security deposits and guarantees. Nine Months Ended October 31, 2017 2016 Cash and cash equivalents $8,373 $9,008 Restricted cash 898 946 Cash, cash equivalents and restricted cash shown in the statement of cashflows $9,271 $9,954 |
Fair value of financial instrum
Fair value of financial instruments | 9 Months Ended |
Oct. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value Disclosures [Text Block] | Fair Value. 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. |
Acquisition (Notes)
Acquisition (Notes) | 9 Months Ended |
Oct. 31, 2017 | |
Business Acquisition [Line Items] | |
Business Combination Disclosure [Text Block] | Acquisition. On February 4, 2016 , PPIH acquired the remaining 51% ownership of PPC , a coating and insulation company in Camrose, Alberta that serves 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. This transaction was accounted for under the acquisition method of accounting. The following table represents the allocation of the total consideration in the acquisition of PPC: 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 13,124 Goodwill 2,279 Net working capital 406 Other assets (liabilities) net (1,645 ) Net assets acquired $17,079 The acquisition resulted in $2.3 million of goodwill. Goodwill is not deductible for income tax purposes. 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 of 2016, the Company recognized a non-cash loss of $1.6 million , which represents the difference between the pre-existing book value interest in PPC immediately prior to the acquisition remeasured to its fair value upon the acquisition date. |
Recent accounting pronouncement
Recent accounting pronouncements | 9 Months Ended |
Oct. 31, 2017 | |
Accounting Policies [Abstract] | |
Recent accounting pronouncements [Text Block] | Recent accounting pronouncements . In March 2017, the FASB issued authoritative guidance which changes the income statement presentation of the components of net periodic benefit cost related to defined benefit pension and other postretirement plans. The primary change under the new guidance is that only the service cost component of net periodic benefit cost should be included in operating income and is eligible for capitalization as an asset. The other components of net periodic benefit cost, such as interest cost, the expected return on assets, and amortization of actuarial gains and losses and prior service cost, should be presented below operating income. The guidance is effective for the Company starting February 1, 2018 and will be applied retrospectively to the presentation of net periodic benefit cost and prospectively to the capitalization of service cost. The Company does not expect the adoption of this guidance to have a material impact on the results of operations or financial position. In October 2016, the FASB issued authoritative guidance requiring the recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs rather than when transferred to a third party as required under the current guidance. The new guidance is effective for the Company beginning February 1, 2018, with early adoption permitted. The Company is currently assessing the potential impact the guidance will have upon adoption. 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 May 2014, FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers ("Topic 606")", with several clarifying updates issued during 2016. This new standard will replace all current GAAP guidance on this topic and eliminate all industry-specific guidance. The new revenue recognition guidance provides a unified model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. The mandatory adoption will require new qualitative and quantitative disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments, information about contract balances and performance obligations, and assets recognized from costs incurred to obtain or fulfill a contract. This guidance is effective for the Company beginning February 1, 2018, with early adoption permitted. The new revenue standards may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company is currently evaluating the impact of adopting the standard on the Company’s financial position, results of operations, cash flows and related disclosures and has selected the modified retrospective basis with a cumulative adjustment to opening retained earnings in the year of initial adoption. The Company has completed staff education and has completed the discovery and analysis phases of reviewing contracts and identifying potential differences that would result from applying the new standard to current contracts. The Company is currently beginning to identify and implement changes to the Company’s business processes, systems and controls to support adoption of the new standard in 2018. Although it is early in the evaluation process, the Company does not expect Topic 606 to have a material impact on the financial statements, though internal processes, record keeping and disclosures may be significantly impacted. The sales are not believed to be material, because Topic 606 generally supports the recognition of revenue over time under the cost-to-cost method for the majority of the contracts, which is consistent with the current percentage of completion revenue recognition model. The Company evaluated other recent accounting pronouncements and does not expect them to have a material impact on the consolidated financial statements. |
Reclassifications (Notes)
Reclassifications (Notes) | 9 Months Ended |
Oct. 31, 2017 | |
Reclassifications [Abstract] | |
Reclassifications [Text Block] | Reclassifications. Reclassifications were made to the prior-year consolidated statement of cash flows to conform to the current-year presentations and were not material to the financial statements. |
Subsequent Event
Subsequent Event | 9 Months Ended |
Oct. 31, 2017 | |
Subsequent Event [Line Items] | |
Subsequent Events [Text Block] | Subsequent events . In December, 2017, the Company completed a seventh amendment to the Credit Agreement. Lenders increased the borrowing limit for the Company’s Canadian subsidiary and adjusted minimum availability requirements for borrowers in the U.S. and Canada with a limited waiver retroactive to October 31, 2017. |
Business segment (Tables)
Business segment (Tables) | 9 Months Ended |
Oct. 31, 2017 | |
Segment Reporting [Abstract] | |
Business segment reporting [Table Text Block] | Three Months Ended October 31, Nine Months Ended October 31, 2017 2016 2017 2016 Net sales Piping Systems $27,498 $25,302 $77,851 $71,230 Gross profit Piping Systems $3,320 $3,697 $8,163 $8,669 Income (loss) from operations Piping Systems ($428 ) $640 ($1,825 ) ($1,775 ) Corporate ($1,863 ) ($1,815 ) (6,388 ) (6,190 ) Total loss from operations ($2,291 ) ($1,175 ) ($8,213 ) ($7,965 ) |
Correction of immaterial erro26
Correction of immaterial error (Tables) | 9 Months Ended |
Oct. 31, 2017 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block] | A reconciliation of the effects of the adjustments to the previously reported balance sheet and stockholders' equity at January 31, 2017 follows: As Reported Adjustment Revised Additional paid in capital $53,716 $1,642 $55,358 Retained earnings 8,515 (1,642 ) 6,873 A reconciliation of the effects of the adjustments to the previously reported statement of operations for the three months ending October 31, 2016 follows: As Reported Adjustment Revised General and administrative expense $3,352 $138 $3,490 Total operating expenses 4,734 138 4,872 Loss from operations (1,037 ) (138 ) (1,175 ) Loss from continuing operations before income taxes (1,149 ) (138 ) (1,287 ) Loss from continuing operations (3,560 ) (138 ) (3,698 ) Net loss (3,763 ) (138 ) (3,901 ) Loss per share from continuing operations (0.47 ) (0.02 ) (0.49 ) Loss per share (0.50 ) (0.02 ) (0.52 ) A reconciliation of the effects of the adjustments to the previously reported statement of operations for the nine months ending October 31, 2016 follows: As Reported Adjustment Revised General and administrative expense $11,815 $583 $12,398 Total operating expenses 16,051 583 16,634 Loss from operations (7,382 ) (583 ) (7,965 ) Loss from continuing operations before income taxes (9,437 ) (583 ) (10,020 ) Loss from continuing operations (10,514 ) (583 ) (11,097 ) Net loss (9,608 ) (583 ) (10,191 ) Loss per share from continuing operations (1.41 ) (0.08 ) (1.49 ) Loss per share (1.29 ) (0.08 ) (1.37 ) A reconciliation of the effects of the adjustments to the previously reported statement of cash flows for the nine months ending October 31, 2016 follows: As Reported Adjustment Revised Net loss ($9,608) ($583) ($10,191) Stock-based compensation expense 184 583 767 |
Discontinued operations (Tables
Discontinued operations (Tables) | 9 Months Ended |
Oct. 31, 2017 | |
Discontinued operations | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | Three Months Ended October 31, Nine Months Ended October 31, 2017 2016 2017 2016 Net sales from discontinued operations $— $— $— $10,467 (Loss) gain on disposal of discontinued operations — (2,204 ) — 268 Income from discontinued operations — 1,876 — 1,216 (Loss) income from discontinued operations before income taxes — (328 ) — 1,484 Income tax (benefit) expense — (125 ) — 578 (Loss) income from discontinued operations, net of tax $— ($203 ) $— $906 Components of assets and liabilities from discontinued operations consist of the following: October 31, 2017 January 31, 2017 Current assets Trade accounts receivable, net $— $25 Total assets from discontinued operations $— $25 Current liabilities Trade accounts payable, accrued expenses and other $138 $199 Total liabilities from discontinued operations $138 $199 Cash flows from discontinued operations: Nine Months Ended October 31, 2017 2016 Net cash used in discontinued operating activities ($36 ) ($673 ) Net cash provided by discontinued investing activities — 9,606 Net cash used in discontinued financing activities — (8,933 ) |
Long-lived assets and Goodwil28
Long-lived assets and Goodwill (Tables) | 9 Months Ended |
Oct. 31, 2017 | |
Goodwill [Line Items] | |
Schedule of Goodwill [Table Text Block] | January 31, 2017 Foreign exchange change effect October 31, 2017 Goodwill $2,279 $38 $2,317 |
Other intangible assets with 29
Other intangible assets with definite lives (Tables) | 9 Months Ended |
Oct. 31, 2017 | |
Indefinite-Lived Intangible Assets (Excluding Goodwill) [Abstract] | |
Patent amortization expense [Table Text Block] | Three Months Ended October 31, Nine Months Ended October 31, 2017 2016 2017 2016 Patent amortization expense $12 $12 $34 $34 |
Stock-based compensation Stock
Stock-based compensation Stock Compensation (Tables) | 9 Months Ended |
Oct. 31, 2017 | |
Stock-based compensation [Abstract] | |
Stock-based compensation expense [Table Text Block] | Three Months Ended October 31, Nine Months Ended October 31, 2017 2016 2017 2016 Stock-based compensation expense $21 $55 $80 $216 Restricted stock-based compensation expense $294 $151 $938 $819 |
Fair value assumptions [Table Text Block] | Nine Months Ended October 31, Fair value assumptions 2017 2016 Expected volatility 43.2% 43.2% Risk free interest rate 1.2% 1.2% Dividend yield 0 0 Expected life 5.0 5.0 |
Option activity [Table Text Block] | Option activity Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at January 31, 2017 524 $11.55 4.5 $534 Exercised (30 ) 6.77 37 Expired or forfeited (125 ) 18.75 Outstanding end of period 369 9.50 4.3 338 Exercisable end of period 335 $9.62 3.9 $303 |
Unvested option activity [Table Text Block] | Unvested option activity Options Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Outstanding at January 31, 2017 74 $9.31 $69 Vested (32 ) Expired or forfeited (8 ) 11.49 Outstanding end of period 34 $8.32 $35 |
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, 2017 290 $8.75 $2,540 Granted 172 8.02 Issued (55 ) Forfeited (39 ) 7.86 Outstanding end of period 368 $8.35 $2,955 |
Earnings per share (Tables)
Earnings per share (Tables) | 9 Months Ended |
Oct. 31, 2017 | |
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 October 31, Nine Months Ended October 31, 2017 2016 2017 2016 Basic weighted average common shares outstanding 7,714 7,541 7,668 7,457 Dilutive effect of equity compensation plans — — — — Weighted average common shares outstanding assuming full dilution 7,714 7,541 7,668 7,457 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 143 270 143 336 Stock options with an exercise price below the average market price 226 304 226 238 |
Interest expense, net (Tables)
Interest expense, net (Tables) | 9 Months Ended |
Oct. 31, 2017 | |
Interest Income (Expense), Net [Abstract] | |
Interest income and interest expense [Table Text Block] | Three Months Ended October 31, Nine Months Ended October 31, 2017 2016 2017 2016 Interest expense $225 $164 $583 $556 Interest income (32 ) (52 ) (76 ) (121 ) Interest expense, net $193 $112 $507 $435 |
Restricted cash Restricted cash
Restricted cash Restricted cash (Tables) | 9 Months Ended |
Oct. 31, 2017 | |
Restricted Cash and Cash Equivalents Items [Line Items] | |
Restrictions on Cash and Cash Equivalents [Table Text Block] | Nine Months Ended October 31, 2017 2016 Cash and cash equivalents $8,373 $9,008 Restricted cash 898 946 Cash, cash equivalents and restricted cash shown in the statement of cashflows $9,271 $9,954 |
Acquisition (Tables)
Acquisition (Tables) | 9 Months Ended |
Oct. 31, 2017 | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisitions, by Acquisition [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 13,124 Goodwill 2,279 Net working capital 406 Other assets (liabilities) net (1,645 ) Net assets acquired $17,079 |
Business segment reporting (Det
Business segment reporting (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2017USD ($)Segments | Oct. 31, 2016USD ($) | Oct. 31, 2017USD ($) | Oct. 31, 2016USD ($) | |
Segment reporting | ||||
Number of reportable segments | Segments | 1 | |||
Net sales | $ 27,498 | $ 25,302 | $ 77,851 | $ 71,230 |
Gross profit | 3,320 | 3,697 | 8,163 | 8,669 |
Loss from operations | (2,291) | (1,175) | $ (8,213) | (7,965) |
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 | 27,498 | 25,302 | $ 77,851 | 71,230 |
Gross profit | 3,320 | 3,697 | 8,163 | 8,669 |
Loss from operations | (428) | 640 | (1,825) | (1,775) |
Corporate Segment [Member] | ||||
Segment reporting | ||||
Loss from operations | $ (1,863) | $ (1,815) | $ (6,388) | $ (6,190) |
Business segment reporting Conc
Business segment reporting Concentration risk percentage (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Oct. 31, 2016Rate | Oct. 31, 2017 | Jan. 31, 2017 | |
Sales Revenue, Net [Member] | |||
Concentration Risk, Percentage | 17.00% | ||
Credit Concentration Risk [Member] | |||
Concentration Risk, Percentage | 19.00% | 33.00% |
Correction of immaterial erro37
Correction of immaterial error (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Oct. 31, 2017 | Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | Jan. 31, 2016 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Error corrections and prior period adjustments, description | An error was identified during the preparation and review of the second quarter financial statements, as stock-based compensation cost and additional paid in capital had been reversed for vested equity awards that expired, terminated or were unexercised | |||||||
Additional paid-in capital | $ 55,936 | $ 55,358 | $ 55,936 | |||||
Retained earnings | (1,606) | 6,873 | (1,606) | |||||
General and administrative expenses | 4,314 | $ 3,490 | 12,456 | $ 12,398 | ||||
Total operating expenses | 5,611 | 4,872 | 16,376 | 16,634 | ||||
Loss from operations | (2,291) | (1,175) | (8,213) | (7,965) | ||||
Loss from continuing operations before income taxes | (2,484) | (1,287) | (8,720) | (10,020) | ||||
Loss from continuing operations | (3,292) | (3,698) | (8,479) | (11,097) | ||||
Net loss | $ (3,292) | $ (3,901) | (8,479) | (10,191) | ||||
Stock-based compensation expense | $ 795 | $ 767 | ||||||
Loss per share from continuing operations | $ (0.43) | $ (0.49) | $ (1.11) | $ (1.49) | ||||
Loss per share | $ (0.43) | $ (0.52) | $ (1.11) | $ (1.37) | ||||
Scenario, Previously Reported [Member] | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Additional paid-in capital | 53,716 | |||||||
Retained earnings | 8,515 | |||||||
General and administrative expenses | $ 3,352 | $ 11,815 | ||||||
Total operating expenses | 4,734 | 16,051 | ||||||
Loss from operations | (1,037) | (7,382) | ||||||
Loss from continuing operations before income taxes | (1,149) | (9,437) | ||||||
Loss from continuing operations | (3,560) | (10,514) | ||||||
Net loss | $ (3,763) | (9,608) | ||||||
Stock-based compensation expense | $ 184 | |||||||
Loss per share from continuing operations | $ (0.47) | $ (1.41) | ||||||
Loss per share | $ (0.50) | $ (1.29) | ||||||
Restatement Adjustment [Member] | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Additional paid-in capital | 1,642 | |||||||
Retained earnings | (1,642) | |||||||
General and administrative expenses | $ 213 | $ 138 | $ 350 | $ 95 | $ 583 | $ 846 | ||
Total operating expenses | 138 | 583 | ||||||
Loss from operations | (138) | (583) | ||||||
Loss from continuing operations before income taxes | (138) | (583) | ||||||
Loss from continuing operations | (138) | (583) | ||||||
Net loss | $ (138) | (583) | ||||||
Stock-based compensation expense | $ 583 | |||||||
Loss per share from continuing operations | $ (0.02) | $ (0.08) | ||||||
Loss per share | $ (0.02) | $ (0.08) |
Discontinued operations (Detail
Discontinued operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | |
Discontinued operations | ||||
Discontinued operation, income tax (benefit) expense | $ 0 | $ (125) | $ 0 | $ 578 |
Discontinued operations Discont
Discontinued operations Discontinued financials (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | Jan. 31, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Disposal Group, Including Discontinued Operation, Revenue | $ 0 | $ 0 | $ 0 | $ 10,467 | |
(Loss) gain on disposal of discontinued operations | 0 | (2,204) | 0 | 268 | |
Income from discontinued operations | 0 | 1,876 | 0 | 1,216 | |
(Loss) income from discontinued operations before income tax | 0 | (328) | 0 | 1,484 | |
Discontinued operation, income tax (benefit) expense | 0 | (125) | 0 | 578 | |
(Loss) income from discontinued operations, net of tax | 0 | $ (203) | 0 | 906 | |
Disposal Group, Including Discontinued Operation, accounts receivable | 0 | 0 | $ 25 | ||
Disposal Group, Including Discontinued Operation, Assets | 0 | 0 | 25 | ||
Disposal Group, Including Discontinued Operation, Accounts Payable and Accrued Liabilities | 138 | 138 | 199 | ||
Disposal Group, Including Discontinued Operation, Liabilities | $ 138 | 138 | $ 199 | ||
Net cash used in discontinued operating activities | (36) | (673) | |||
Net cash provided by discontinued investing activities | 0 | 9,606 | |||
Net cash used in discontinued financing activities | $ 0 | $ (8,933) |
Income taxes Income taxes (Deta
Income taxes Income taxes (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||||
effective income tax rate from continuing operations | (32.50%) | (187.30%) | 2.80% | (10.70%) |
Unrecognized tax benefits | $ 200,000 | $ 200,000 | ||
Unrecognized tax benefits, income tax penalties and interest expense | 1,150 | |||
Unrecognized tax benefits, income tax penalties and interest accrued | $ 49,100 | $ 49,100 | ||
Income Tax Contingency [Line Items] | ||||
Income Tax Examination, Description | The Internal Revenue Service ("IRS") began an audit of the fiscal year ended January 31, 2015 in August 2016. In August 2017, the Company received a notice from the IRS that it had concluded the tax audit for the year ended January 31, 2015. No changes were made to the reported tax. |
Long-lived assets and Goodwil41
Long-lived assets and Goodwill (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 31, 2017 | Jan. 31, 2017 | |
Property, Plant and Equipment [Line Items] | ||
New Date of Annual Goodwill Impairment Test | impairment assessment of goodwill annually as of January 31 | |
Impairment of long-lived assets | there was no impairment of long-lived assets as of October 31, 2017 or January 31, 2017 | |
Goodwill recognized, description | allocated between intangible assets and the net tangible assets of the acquired business with the residual of the purchase price recorded as goodwill | |
Goodwill | $ 2,317 | $ 2,279 |
Goodwill, Period Increase (Decrease) | $ 38 | |
Goodwill no impairment | There was no impairment to goodwill as of October 31, 2017. |
Other intangible assets with 42
Other intangible assets with definite lives (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | Jan. 31, 2017 | |
Indefinite-Lived Intangible Assets (Excluding Goodwill) [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 | $ 2,640,000 | $ 2,640,000 | |||
Accumulated amortization | 2,410,000 | 2,410,000 | $ 2,380,000 | ||
Amortization expense, next twelve months | 45,600 | 45,600 | |||
Amortization expense, year two | 37,500 | 37,500 | |||
Amortization expense, year three | 34,700 | 34,700 | |||
Amortization expense, year four | 28,100 | 28,100 | |||
Amortization expense, year five | 17,400 | 17,400 | |||
Amortization expense, thereafter | 93,800 | 93,800 | |||
Patent amortization expense | $ 12,000 | $ 12,000 | $ 34,000 | $ 34,000 |
Stock-based compensation Stock-
Stock-based compensation Stock-based compensation expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Stock-based compensation expense | $ 21 | $ 55 | $ 80 | $ 216 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock based compensation expense | $ 294 | $ 151 | $ 938 | $ 819 |
Stock-based compensation Fair v
Stock-based compensation Fair value assumptions (Details) | 9 Months Ended | |
Oct. 31, 2017 | Oct. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 43.20% | 43.20% |
Risk free interest rate | 1.20% | 1.20% |
Dividend yield | 0.00% | 0.00% |
Expected life | 5 years 10 days | 5 years 10 days |
Stock-based compensation Option
Stock-based compensation Options (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended |
Oct. 31, 2017 | Jan. 31, 2017 | |
Option activity [Line Items] | ||
Unrecognized compensation expense | $ 100 | |
Unrecognized compensation expense recognized period | 1 year 9 months 30 days | |
Restricted Stock [Member] | ||
Option activity [Line Items] | ||
Unrecognized compensation expense | $ 1,600 | |
Unrecognized compensation expense recognized period | 2 years 2 months 30 days | |
Stock Option [Member] | ||
Option activity [Line Items] | ||
Outstanding at beginning of year | 524 | |
Weighted Average Exercise Price Per Share | $ 11.55 | |
Weighted Average Remaining Contractual Term | 4 years 5 months 30 days | |
Options Outstanding Aggregate Intrinsic Value | $ 338 | $ 534 |
Options, exercises in period | (30) | |
Options, exercises in period, weighted average exercise price | $ 6.77 | |
Options, exercises in period, intrinsic value | $ 37 | |
Expired or forfeited | (125) | |
Expired or Forfeited Weighted Average Exercise Price Per Share | $ 18.75 | |
Outstanding end of period | 369 | |
Outstanding Weighted Average Exercise Price Per Share | $ 9.50 | |
Outstanding Weighted Average Remaining Contractual Term | 4 years 3 months 30 days | |
Exercisable end of period | 335 | |
Exercisable Weighted Average Exercise Price Per Share | $ 9.62 | |
Exercisable Weighted Average Remaining Contractual Term | 3 years 10 months 31 days | |
Exercisable Aggregate Intrinsic Value | $ 303 | |
unvested option [Member] | ||
Option activity [Line Items] | ||
Outstanding at beginning of year | 34 | 74 |
Options, vested, number of shares | (32) | |
Weighted Average Exercise Price Per Share | $ 8.32 | $ 9.31 |
Options Outstanding Aggregate Intrinsic Value | $ 35 | $ 69 |
Expired or forfeited | (8) | |
Expired or Forfeited Weighted Average Exercise Price Per Share | $ 11.49 |
Stock-based compensation Restri
Stock-based compensation Restricted stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | |
Oct. 31, 2017 | Jan. 31, 2017 | |
Outstanding | 368 | 290 |
Share-based compensation nonvested weighted average grant date fair value | $ 8.35 | $ 8.75 |
Aggregate Intrinsic Value, Outstanding | $ 2,955 | $ 2,540 |
Granted | 172 | |
Weighted Average Grant Date Fair Value | $ 8.02 | |
Issued | (55) | |
Stock Issued During Period, Shares, Restricted Stock Award, Forfeited | (39) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 7.86 |
Earnings per share (Details)
Earnings per share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | |
Earnings per share [Line Items] | ||||
Basic weighted average common shares outstanding | 7,714 | 7,541 | 7,668 | 7,457 |
Dilutive effect of equity compensation plans | 0 | 0 | 0 | 0 |
Weighted average common shares outstanding assuming full dilution | 7,714 | 7,541 | 7,668 | 7,457 |
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 | 143 | 270 | 143 | 336 |
Stock options with an exercise price below the average market price | 226 | 304 | 226 | 238 |
Interest expense, net (Details)
Interest expense, net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | |
Interest Income (Expense), Net [Abstract] | ||||
Interest expense | $ 225 | $ 164 | $ 583 | $ 556 |
Interest income | (32) | (52) | (76) | (121) |
Interest expense, net | $ 193 | $ 112 | $ 507 | $ 435 |
Debt (Details)
Debt (Details) $ in Millions | 9 Months Ended |
Oct. 31, 2017USD ($)Rate | |
Debt [Line Items] | |
Debt | $ 17.9 |
Debt, net change | $ 6.2 |
Description of violation and waiver received | lenders increased the borrowing limit for the Company’s Canadian subsidiary and adjusted minimum availability requirements for borrowers in the U.S. and Canada with a limited waiver of related covenant non-compliance retroactive to October 31, 2017 |
UNITED STATES | |
Debt [Line Items] | |
Line of Credit Facility, Initiation Date | Sep. 24, 2014 |
Maturity date | Sep. 24, 2018 |
Line of Credit Facility, Covenant Terms | require achieving a minimum fixed charge coverage ratio with respective performance metrics as defined by the Credit Agreement if a minimum availability is not met |
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. |
Prime interest rate | Rate | 5.50% |
Letters of Credit Outstanding, Amount | $ 0.2 |
North America [Member] | |
Debt [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | 15 |
Revolving line, amount outstanding | 9.1 |
Revolving line, remaining borrowing capacity | $ 0.7 |
CANADA | |
Debt [Line Items] | |
Eurodollar interest rate | Rate | 4.50% |
Foreign Line of Credit [Member] | |
Debt [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 13.5 |
Line of Credit Facility, Covenant Compliance | in compliance with the covenants under the credit arrangements. |
Line of Credit Facility, Interest Rate Description | interest rates were based on the Emirates Inter Bank Offered Rate (EIBOR) plus 3.5% per annum, with a minimum interest rate of 4.5% per annum. On October 31, 2017, the Company's interest rates ranged from 5.0% to 6.5% |
Revolving line, remaining borrowing capacity | $ 5.8 |
Letters of Credit Outstanding, Amount | $ 7.3 |
Debt Lease debt (Details)
Debt Lease debt (Details) $ in Thousands | 9 Months Ended |
Oct. 31, 2017USD ($)Rate | |
Capital leases | |
Capital lease, issuance date | May 5, 2017 |
Proceeds from capital lease | $ 700 |
Capital lease, interest rate during period | Rate | 7.80% |
Capital lease, periodic payment | $ 9 |
Capital lease, maturity date | Apr. 30, 2021 |
Lease Agreements [Member] | |
Capital leases | |
Capital lease, issuance date | Oct. 20, 2017 |
Proceeds from capital lease | $ 100 |
Capital lease, interest rate during period | Rate | 4.00% |
Capital lease, periodic payment | $ 3 |
Capital lease, maturity date | Sep. 29, 2022 |
Restricted cash (Details)
Restricted cash (Details) - USD ($) $ in Thousands | Oct. 31, 2017 | Jan. 31, 2017 | Oct. 31, 2016 | Jan. 31, 2016 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Cash and cash equivalents | $ 8,373 | $ 7,603 | $ 9,008 | |
Restricted cash | 898 | 1,098 | 946 | |
Cash, cash equivalents and restricted cash shown in the statement of cashflows | $ 9,271 | $ 8,701 | $ 9,954 | $ 18,955 |
Acquisition (Details)
Acquisition (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | Jan. 31, 2017 | |
Business Acquisition [Line Items] | |||||
Business Acquisition, Date of Acquisition Agreement | Feb. 4, 2016 | ||||
Business Acquisition, Name of Acquired Entity | PPC | ||||
Business Acquisition, Description of Acquired Entity | a coating and insulation company in Camrose, Alberta that serves the oil and gas industry in Western Canada | ||||
Cash to acquire businesses | $ 7,587 | ||||
Business Combination, Consideration Transferred, Liabilities Incurred | 2,000 | ||||
Business Combination, Purchase consideration to third party | 9,587 | ||||
Business Combination, Step Acquisition,Fair value of 49% previously held equity interest | 7,492 | ||||
Business Combination, Consideration Transferred | 17,079 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | 2,915 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 13,124 | ||||
Goodwill | $ 2,317 | $ 2,317 | 2,279 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net working capital | 406 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other assets (liabilities), net | (1,645) | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net assets acquired | 17,079 | ||||
Business Acquisition, Transaction Costs | $ 200 | ||||
Loss on consolidation of joint venture | $ 0 | $ 0 | $ 0 | $ 1,620 |