Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Feb. 28, 2014 | 23-May-14 | Aug. 31, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'Educational Development Corp | ' | ' |
Document Type | '10-K | ' | ' |
Current Fiscal Year End Date | '--02-28 | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 3,989,126 | ' |
Entity Public Float | ' | ' | $12,188,600 |
Amendment Flag | 'false | ' | ' |
Entity Central Index Key | '0000031667 | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Document Period End Date | 28-Feb-14 | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
BALANCE_SHEETS
BALANCE SHEETS (USD $) | Feb. 28, 2014 | Feb. 28, 2013 |
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $680,000 | $469,100 |
Accounts receivable, less allowance for doubtful accounts and sales returns $333,900 (2014) and $571,900 (2013) | 3,000,800 | 3,419,100 |
Inventories—Net | 9,869,400 | 9,724,700 |
Prepaid expenses and other assets | 262,200 | 438,800 |
Income tax receivable | 0 | 229,300 |
Deferred income taxes | 259,300 | 381,400 |
Total current assets | 14,071,700 | 14,662,400 |
INVENTORIES—Net | 470,200 | 559,000 |
PROPERTY, PLANT AND EQUIPMENT—Net | 1,877,600 | 1,915,500 |
INVESTMENT IN NONMARKETABLE EQUITY SECURITIES | 0 | 430,300 |
OTHER ASSETS | 267,400 | 256,700 |
DEFERRED INCOME TAXES | 71,400 | 76,900 |
TOTAL ASSETS | 16,758,300 | 17,900,800 |
CURRENT LIABILITIES: | ' | ' |
Accounts payable | 2,543,700 | 1,862,100 |
Line of credit | 0 | 1,250,000 |
Accrued salaries and commissions | 514,900 | 439,300 |
Income taxes payable | 140,900 | 0 |
Dividends payable | 318,200 | 317,900 |
Other current liabilities | 658,200 | 579,700 |
Total current liabilities | 4,175,900 | 4,449,000 |
COMMITMENTS (Note 7) | ' | ' |
SHAREHOLDERS’ EQUITY: | ' | ' |
Common stock, $0.20 par value; Authorized 8,000,000 shares; Issued 6,041,040 Outstanding 3,977,943 (2014) and 3,960,812 (2013) shares | 1,208,200 | 1,208,200 |
Capital in excess of par value | 8,548,000 | 8,548,000 |
Retained earnings | 14,280,500 | 15,194,700 |
24,036,700 | 24,950,900 | |
Less treasury stock, at cost | -11,454,300 | -11,499,100 |
Total shareholders' equity | 12,582,400 | 13,451,800 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $16,758,300 | $17,900,800 |
BALANCE_SHEETS_Parentheticals
BALANCE SHEETS (Parentheticals) (USD $) | Feb. 28, 2014 | Feb. 28, 2013 |
Allowance for doubtful accounts and sales returns (in Dollars) | $333,900 | $571,900 |
Common Stock, par value (in Dollars per share) | $0.20 | $0.20 |
Common Stock, shares authorized | 8,000,000 | 8,000,000 |
Common Stock, shares issued | 6,041,040 | 6,041,040 |
Common Stock, shares outstanding | 3,977,943 | 3,960,812 |
STATEMENTS_OF_EARNINGS
STATEMENTS OF EARNINGS (USD $) | 12 Months Ended | |
Feb. 28, 2014 | Feb. 28, 2013 | |
GROSS SALES | $40,558,000 | $39,215,300 |
Less discounts and allowances | -15,414,200 | -14,585,800 |
Transportation revenue | 953,200 | 858,000 |
NET REVENUES | 26,097,000 | 25,487,500 |
COST OF SALES | 10,523,500 | 10,494,200 |
Gross margin | 15,573,500 | 14,993,300 |
OPERATING EXPENSES: | ' | ' |
Operating and selling | 7,258,500 | 6,714,600 |
Sales commissions | 4,939,800 | 4,764,900 |
General and administrative | 2,123,500 | 2,285,700 |
Total operating expenses | 14,321,800 | 13,765,200 |
OTHER INCOME (EXPENSE) | -378,200 | 53,900 |
EARNINGS BEFORE INCOME TAXES | 873,500 | 1,282,000 |
INCOME TAXES | 515,900 | 479,100 |
NET EARNINGS | $357,600 | $802,900 |
BASIC AND DILUTED EARNINGS PER SHARE: | ' | ' |
Basic (in Dollars per share) | $0.09 | $0.20 |
Diluted (in Dollars per share) | $0.09 | $0.20 |
WEIGHTED AVERAGE NUMBER OF COMMON AND EQUIVALENT SHARES OUTSTANDING: | ' | ' |
Basic (in Shares) | 3,968,214 | 3,934,352 |
Diluted (in Shares) | 3,968,214 | 3,934,352 |
Dividends per share (in Dollars per share) | $0.32 | $0.44 |
STATEMENT_OF_CHANGES_IN_SHAREH
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total |
Balance at Feb. 29, 2012 | $1,208,200 | $8,548,000 | $16,124,900 | ($11,663,500) | $14,217,600 |
Balance (in Shares) at Feb. 29, 2012 | 6,041,040 | ' | ' | 2,127,857 | ' |
Purchases of treasury stock | ' | ' | ' | -56,700 | -56,700 |
Purchases of treasury stock (in Shares) | ' | ' | ' | 12,106 | ' |
Sales of treasury stock | ' | ' | ' | 221,100 | 221,100 |
Sales of treasury stock (in Shares) | ' | ' | ' | -59,735 | ' |
Dividends declared | ' | ' | -317,900 | ' | -317,900 |
Dividends paid | ' | ' | -1,415,200 | ' | -1,415,200 |
Net earnings | ' | ' | 802,900 | ' | 802,900 |
Balance at Feb. 28, 2013 | 1,208,200 | 8,548,000 | 15,194,700 | -11,499,100 | 13,451,800 |
Balance (in Shares) at Feb. 28, 2013 | 6,041,040 | ' | ' | 2,080,228 | 6,041,040 |
Purchases of treasury stock | ' | ' | ' | -129,200 | -129,200 |
Purchases of treasury stock (in Shares) | ' | ' | ' | 43,349 | ' |
Sales of treasury stock | ' | ' | ' | 174,000 | 174,000 |
Sales of treasury stock (in Shares) | ' | ' | ' | -60,480 | ' |
Dividends declared | ' | ' | -318,200 | ' | -318,200 |
Dividends paid | ' | ' | -953,600 | ' | -953,600 |
Net earnings | ' | ' | 357,600 | ' | 357,600 |
Balance at Feb. 28, 2014 | $1,208,200 | $8,548,000 | $14,280,500 | ($11,454,300) | $12,582,400 |
Balance (in Shares) at Feb. 28, 2014 | 6,041,040 | ' | ' | 2,063,097 | 6,041,040 |
STATEMENT_OF_CHANGES_IN_SHAREH1
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (Parentheticals) (Retained Earnings [Member], USD $) | 12 Months Ended | |
Feb. 28, 2014 | Feb. 28, 2013 | |
Retained Earnings [Member] | ' | ' |
Dividends declared | $0.08 | $0.08 |
Dividends paid | $0.24 | $0.36 |
STATEMENTS_OF_CASH_FLOWS
STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
Feb. 28, 2014 | Feb. 28, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net earnings | $357,600 | $802,900 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ' | ' |
Impairment of investment in nonmarketable equity securities | 430,300 | 0 |
Depreciation | 115,400 | 114,200 |
Deferred income taxes | 127,600 | -12,600 |
Provision for doubtful accounts and sales returns | 978,000 | 1,508,700 |
Changes in assets and liabilities: | ' | ' |
Accounts receivable | -559,700 | -1,352,800 |
Inventories, net | -55,900 | 118,300 |
Prepaid expenses and other assets | 165,900 | -117,300 |
Accounts payable, accrued salaries and commissions, and other current liabilities | 835,700 | -128,900 |
Income tax payable/receivable | 370,200 | -293,500 |
Total adjustments | 2,407,500 | -163,900 |
Net cash provided by operating activities | 2,765,100 | 639,000 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Investment in nonmarketable equity securities | 0 | -180,300 |
Purchases of property, plant and equipment | -77,500 | -29,300 |
Net cash used in investing activities | -77,500 | -209,600 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Cash received from sale of treasury stock | 174,000 | 221,100 |
Cash paid to acquire treasury stock | -129,200 | -56,700 |
Borrowings under revolving credit agreement | 1,250,000 | 2,185,000 |
Payments under revolving credit agreement | -2,500,000 | -1,185,000 |
Dividends paid | -1,271,500 | -1,884,800 |
Net cash used in financing activities | -2,476,700 | -720,400 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 210,900 | -291,000 |
CASH AND CASH EQUIVALENTS—BEGINNING OF YEAR | 469,100 | 760,100 |
CASH AND CASH EQUIVALENTS—END OF YEAR | 680,000 | 469,100 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ' | ' |
Cash paid for interest | 34,500 | 24,300 |
Cash paid for income taxes | $11,000 | $785,100 |
1_SUMMARY_OF_SIGNIFICANT_ACCOU
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||||
Feb. 28, 2014 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Significant Accounting Policies [Text Block] | ' | ||||||||
1 | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||
Nature of Business—Educational Development Corporation (“we”, “our”, or “the Company”) distributes books and publications through our EDC Publishing and Usborne Books & More (“UBAM”) divisions to book, toy and gift stores, libraries and home educators located throughout the United States (“U.S.”). We are the sole U.S. distributor of books and related items, which are published by an England-based publishing company, Usborne, our primary supplier. We are also in the direct publishing market through our ownership of Kane Miller Book Publishers. | |||||||||
Estimates—Our financial statements were prepared in conformity with accounting principles generally accepted in the United States of America, which requires management to make estimates and assumptions that affect the amounts and disclosures in the financial statements. Actual results could differ from these estimates. | |||||||||
Business Concentration—A significant portion of our inventory purchases are concentrated with Usborne. Purchases from them were approximately $9.0 million and $8.6 million for the years ended February 28, 2014 and 2013, respectively. Total inventory purchases for those same periods were approximately $11.4 million and $11.3 million, respectively. | |||||||||
Cash and Cash Equivalents—Cash and cash equivalents are maintained at financial institutions and, at times, balances may exceed federally insured limits. We have never experienced any losses related to these balances. Insurance coverage on our non-interest bearing cash balances was limited to $250,000 and our non-interest bearing cash balances exceed federally insured limits. The majority of payments due from banks for third party credit card transactions process within two business days. These amounts due are classified as cash and cash equivalents. Cash and cash equivalents includes demand and time deposits, money market funds and other marketable securities with maturities of three months or less when acquired. | |||||||||
Accounts Receivable— Accounts receivable are uncollateralized customer obligations due under normal trade terms generally requiring payment within thirty days from the invoice date. Trade accounts are stated at the amount management expects to collect from outstanding balances. Delinquency fees are not assessed. Payments of accounts receivable are allocated to the specific invoices identified on the customers’ remittance advice. Accounts receivable are carried at original invoice amount less an estimated reserve made for returns and discounts based on quarterly review of historical rates of returns and expected discounts to be taken. The carrying amount of accounts receivable is reduced, if needed, by a valuation allowance that reflects management’s best estimate of the amounts that will not be collected. | |||||||||
Management periodically reviews accounts receivable balances and, based on an assessment of historical bad debts, current customer receivable balances, age of customer receivable balances, customers’ financial conditions and current economic trends, estimates the portion of the balance that will not be collected. Management provides for probable uncollectible amounts through a charge to earnings and a credit to a valuation account based on its assessment of the current status of the individual accounts. Balances which remain outstanding after management has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to trade accounts receivable. Recoveries of trade receivables previously written off are recorded as income when received. | |||||||||
Inventories—Inventories are stated at the lower of cost or market. Cost is determined using the FIFO method. We present a portion of our inventory as a noncurrent asset. Occasionally we purchase book inventory in quantities in excess of what will be sold within the normal operating cycle due to minimum order requirements of our primary supplier. These excess quantities are included in noncurrent inventory. We estimate noncurrent inventory using the current year turnover ratio by title. All inventory in excess of 2½ years of anticipated sales is classified as noncurrent inventory. | |||||||||
Inventories are presented net of a valuation allowance. Management has estimated and included an allowance for slow moving inventory for both current and noncurrent inventory. This allowance is based on management’s analysis of inventory on hand at February 28, 2014 and 2013. | |||||||||
Property, Plant and Equipment—Property, plant and equipment are stated at cost and depreciated on a straight-line basis over the estimated useful lives, as follows: | |||||||||
Building | 30 years | ||||||||
Machinery and equipment | 3 - 10 years | ||||||||
Furniture and fixtures | 3 years | ||||||||
Income Taxes—We account for income taxes using the liability method. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement and the tax basis of assets and liabilities using the current tax laws and rates. A valuation allowance is established when necessary to reduce deferred tax assets to the amounts that are “more likely than not” to be realized. | |||||||||
Revenue Recognition—Sales are recognized and recorded when products are shipped. Products are shipped FOB shipping point. The UBAM division’s sales are paid at the time the product is shipped. These sales accounted for 58% of net revenues in both fiscal years 2014 and 2013. | |||||||||
Estimated allowances for sales returns are recorded as sales are recognized and recorded. Management uses a moving average calculation to estimate the allowance for sales returns. We are not responsible for product damaged in transit. Damaged returns are primarily from the retail stores related to damages which occur in the stores, not in shipping to the stores. It is industry practice to accept returns from wholesale customers. Management has estimated and included a reserve for sales returns of $100,000 as of February 28, 2014 and 2013. | |||||||||
Transportation revenue represents the amount billed to the customer for shipping the product and is recorded when the product is shipped. | |||||||||
Advertising Costs—Advertising costs are expensed as incurred. Advertising expenses, included in selling and operating expenses in the statements of earnings, were $348,600 and $222,600 for the years ending February 28, 2014 and 2013, respectively. | |||||||||
Shipping and Handling Costs— We classify shipping and handling costs as operating and selling expenses in the statements of earnings. Shipping and handling costs were $2,595,800 and $2,348,900 for the years ending February 28, 2014 and 2013, respectively. | |||||||||
Earnings per Share—Basic earnings per share (“EPS”) is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted EPS is based on the combined weighted average number of common shares outstanding and dilutive potential common shares issuable which include, where appropriate, the assumed exercise of options. In computing Diluted EPS, we have utilized the treasury stock method. | |||||||||
The computation of weighted average common and common equivalent shares used in the calculation of basic and diluted earnings per share (“EPS”) is shown below. | |||||||||
Year Ended February 28, | |||||||||
2014 | 2013 | ||||||||
Earnings Per Share: | |||||||||
Net earnings applicable to common shareholders | $ | 357,600 | $ | 802,900 | |||||
Shares: | |||||||||
Weighted average shares outstanding–basic | 3,968,214 | 3,934,352 | |||||||
Assumed exercise of options | - | - | |||||||
Weighted average shares outstanding–diluted | 3,968,214 | 3,934,352 | |||||||
Basic Earnings Per Share | $ | 0.09 | $ | 0.2 | |||||
Diluted Earnings Per Share | $ | 0.09 | $ | 0.2 | |||||
Stock options not considered above because they were antidilutive | 11,000 | 16,000 | |||||||
Long-Lived Asset Impairment— We review the value of long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable based on estimated future cash flows. No impairment was noted as a result of such review during the years ended February 28, 2014 and 2013. | |||||||||
Stock-Based Compensation—Share-based payment transactions with employees, such as stock options and restricted stock, are measured at estimated fair value at date of grant and recognized as compensation expense. | |||||||||
New accounting pronouncements—The Financial Accounting Standards Board (“FASB”) periodically issues new accounting standards in a continuing effort to improve standards of financial accounting and reporting. We have reviewed the recently issued pronouncements and concluded that the recently issued accounting standards are not applicable to us. | |||||||||
2_INVENTORIES
2. INVENTORIES | 12 Months Ended | ||||||||
Feb. 28, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventory Disclosure [Text Block] | ' | ||||||||
2. INVENTORIES | |||||||||
Inventories consist of the following: | |||||||||
February 28, | |||||||||
2014 | 2013 | ||||||||
Current: | |||||||||
Book inventory | $ | 9,894,400 | $ | 9,749,700 | |||||
Inventory valuation allowance | (25,000 | ) | (25,000 | ) | |||||
Inventories net–current | $ | 9,869,400 | $ | 9,724,700 | |||||
Noncurrent: | |||||||||
Book inventory | $ | 824,000 | $ | 934,000 | |||||
Inventory valuation allowance | (353,800 | ) | (375,000 | ) | |||||
Inventories net–noncurrent | $ | 470,200 | $ | 559,000 | |||||
3_PROPERTY_PLANT_AND_EQUIPMENT
3. PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended | ||||||||
Feb. 28, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment Disclosure [Text Block] | ' | ||||||||
3 | PROPERTY, PLANT AND EQUIPMENT | ||||||||
Property, plant and equipment consist of the following: | |||||||||
February 28, | |||||||||
2014 | 2013 | ||||||||
Land | $ | 250,000 | $ | 250,000 | |||||
Building | 2,124,700 | 2,124,700 | |||||||
Machinery and equipment | 2,363,800 | 2,287,900 | |||||||
Furniture and fixtures | 75,700 | 74,100 | |||||||
4,814,200 | 4,736,700 | ||||||||
Less accumulated depreciation | (2,936,600 | ) | (2,821,200 | ) | |||||
$ | 1,877,600 | $ | 1,915,500 | ||||||
4_INCOME_TAXES
4. INCOME TAXES | 12 Months Ended | ||||||||
Feb. 28, 2014 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Income Tax Disclosure [Text Block] | ' | ||||||||
4. INCOME TAXES | |||||||||
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The tax effects of significant items comprising our net deferred tax assets and liabilities as of February 28 are as follows: | |||||||||
2014 | 2013 | ||||||||
Current: | |||||||||
Deferred tax assets: | |||||||||
Allowance for doubtful accounts | $ | 58,500 | $ | 175,900 | |||||
Inventory overhead capitalization | 79,000 | 77,800 | |||||||
Inventory valuation allowance | 9,500 | 9,500 | |||||||
Allowance for sales returns | 38,000 | 38,000 | |||||||
Accruals | 74,300 | 80,200 | |||||||
Deferred tax assets-current | 259,300 | 381,400 | |||||||
Noncurrent: | |||||||||
Deferred tax assets: | |||||||||
Inventory valuation allowance | $ | 134,400 | $ | 140,600 | |||||
Capital loss carryforward | 163,600 | - | |||||||
Subtotal deferred tax assets | 298,000 | 140,600 | |||||||
Less valuation allowance | (163,600 | ) | |||||||
Total net deferred tax assets | 134,400 | 140,600 | |||||||
Deferred tax liabilities: | |||||||||
Property and equipment | (63,000 | ) | (63,700 | ) | |||||
Deferred tax liabilities | (63,000 | ) | (63,700 | ) | |||||
Net deferred tax asset-noncurrent | $ | 71,400 | $ | 76,900 | |||||
Management has assessed the evidence to estimate whether sufficient future capital gains will be generated to utilize the existing capital loss carryforward. As no current expectation of capital gains exists, Management has objectively determined that a valuation allowance is necessary to reduce the carrying value of deferred tax assets as it is “more likely than not” that such assets are unrealizable. | |||||||||
The amount of the deferred tax asset considered realizable, however, could be adjusted if future capital gains are generated during the carryforward period. Management has determined that no valuation allowance is necessary to reduce the carrying value of other deferred tax assets as it is “more likely than not” that such assets are realizable. | |||||||||
The components of income tax expense are as follows: | |||||||||
February 28, | |||||||||
2014 | 2013 | ||||||||
Current: | |||||||||
Federal | $ | 299,000 | $ | 411,000 | |||||
State | 89,300 | 80,700 | |||||||
388,300 | 491,700 | ||||||||
Deferred: | |||||||||
Federal | 133,200 | (10,600 | ) | ||||||
State | (5,600 | ) | (2,000 | ) | |||||
127,600 | (12,600 | ) | |||||||
Total income tax expense | $ | 515,900 | $ | 479,100 | |||||
The following reconciles our expected income tax expense utilizing statutory tax rates to the actual tax expense: | |||||||||
February 28, | |||||||||
2014 | 2013 | ||||||||
Tax expense at federal statutory rate | $ | 297,000 | $ | 435,900 | |||||
State income tax–net of federal tax benefit | 70,100 | 50,400 | |||||||
Change in capital loss valuation allowance | 163,600 | - | |||||||
Other | (14,800 | ) | (7,200 | ) | |||||
Total income tax expense | $ | 515,900 | $ | 479,100 | |||||
We file our tax returns in the U.S. and certain state jurisdictions. We are no longer subject to income tax examinations by tax authorities for fiscal years before 2011. We are currently the subject of an income tax examination for fiscal year 2012 by the IRS. | |||||||||
Based upon a review of our income tax filing positions, we believe that our positions would be sustained upon an audit and do not anticipate any adjustments that would result in a material change to our financial position. Therefore, no reserves for uncertain income tax positions have been recorded. We classify interest and penalties associated with income taxes as a component of income tax expense on the statement of earnings. | |||||||||
5_EMPLOYEE_BENEFIT_PLAN
5. EMPLOYEE BENEFIT PLAN | 12 Months Ended | |
Feb. 28, 2014 | ||
Compensation and Retirement Disclosure [Abstract] | ' | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | ' | |
5 | EMPLOYEE BENEFIT PLAN | |
We have a profit sharing plan that incorporates the provisions of Section 401(k) of the Internal Revenue Code. The 401(k) plan covers substantially all employees meeting specific age and length of service requirements. Matching contributions are discretionary and amounted to $57,100 and $67,500 in the fiscal years ended February 28, 2014 and 2013, respectively. The 401(k) plan includes an option for employees to invest in our stock, which is purchased from our Treasury stock shares. Shares purchased for the 401(k) plan from Treasury stock amounted to 60,480 net shares and 57,367 net shares in the fiscal years ended February 28, 2014 and 2013, respectively. | ||
6_DEBT
6. DEBT | 12 Months Ended | |
Feb. 28, 2014 | ||
Debt Disclosure [Abstract] | ' | |
Debt Disclosure [Text Block] | ' | |
6 | DEBT | |
We have a $2,500,000 revolving credit agreement, with interest payable monthly at the greater of (a) prime rate minus 0.75% or (b) 4.00%. At February 28, 2014, the rate in effect was 4.00%. The revolving credit agreement is collateralized by substantially all of our assets and matures on June 30, 2014. | ||
We had no borrowings outstanding on the above revolving credit agreement at February 28, 2014 and $1,250,000 in borrowings outstanding at February 28, 2013. Available credit under the revolving credit agreement was $2,500,000 at February 28, 2014. This agreement also contains a provision for our use of the Bank’s letters of credit. The Bank agrees to issue, or obtain issuance of commercial or stand-by letters of credit provided that no letters of credit will have an expiry date later than June 30, 2014 and that the sum of the line of credit plus the letters of credit would not exceed the borrowing base in effect at the time. The agreement contains provisions that require us to maintain specified financial ratios, restrict transactions with related parties, prohibit mergers or consolidation, disallow additional debt, and limit the amount of compensation, salaries, investments, capital expenditures and leasing transactions. We intend to renew the bank agreement or obtain other financing upon maturity. | ||
7_COMMITMENTS
7. COMMITMENTS | 12 Months Ended |
Feb. 28, 2014 | |
Disclosure Text Block Supplement [Abstract] | ' |
Commitments Disclosure [Text Block] | ' |
7. COMMITMENTS | |
At February 28, 2014, we had outstanding purchase commitments for inventory totaling approximately $5,270,800. | |
Rent expense for the year ended February 28, 2014 was $57,200. As of February 28, 2014, we did not have any lease commitments in excess of one year. | |
8_CAPITAL_STOCK_STOCK_OPTIONS_
8. CAPITAL STOCK, STOCK OPTIONS AND WARRANTS | 12 Months Ended | ||||||||||||||||
Feb. 28, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||||||||||
8 | CAPITAL STOCK, STOCK OPTIONS AND WARRANTS | ||||||||||||||||
The Board of Directors adopted the 2002 Incentive Stock Option Plan (the “2002 Plan”) in June of 2002. The 2002 Plan also authorized us to grant up to 1,000,000 stock options. | |||||||||||||||||
Options granted under 2002 Incentive Plan vest at date of grant and are exercisable up to ten years from the date of grant. The exercise price on options granted is equal to the market price at the date of grant. Options outstanding at February 28, 2014 expire beginning in March 2014 through December 2019. | |||||||||||||||||
A summary of the status of our Incentive Plans as of February 28, 2014 and 2013, and changes during the years then ended is presented below: | |||||||||||||||||
February 28, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Weighted | Weighted | ||||||||||||||||
Average | Average | ||||||||||||||||
Exercise | Exercise | ||||||||||||||||
Shares | Price | Shares | Price | ||||||||||||||
Outstanding at | |||||||||||||||||
Beginning of Year | 16,000 | $ | 5.55 | 16,000 | $ | 5.55 | |||||||||||
Exercised/canceled | (5,000 | ) | (5.25 | ) | - | - | |||||||||||
Outstanding at End of Year | 11,000 | $ | 5.68 | 16,000 | $ | 5.55 | |||||||||||
All options outstanding are exercisable at February 28, 2014. | |||||||||||||||||
9_QUARTERLY_RESULTS_OF_OPERATI
9. QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) | 12 Months Ended | ||||||||||||||||||||
Feb. 28, 2014 | |||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||||||
Quarterly Financial Information [Text Block] | ' | ||||||||||||||||||||
9 | QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) | ||||||||||||||||||||
The following is a summary of the quarterly results of operations for the years ended February 28, 2014 and 2013. | |||||||||||||||||||||
Basic | Diluted | ||||||||||||||||||||
Net | Earnings | Earnings | |||||||||||||||||||
Revenues | Gross Margin | Net Earnings | Per Share | Per Share | |||||||||||||||||
2014 | |||||||||||||||||||||
First quarter | $ | 5,990,500 | $ | 3,514,300 | $ | 66,600 | $ | 0.02 | $ | 0.02 | |||||||||||
Second quarter | 5,715,100 | 3,054,100 | 56,400 | 0.01 | 0.01 | ||||||||||||||||
Third quarter | 8,502,000 | 5,207,500 | 547,800 | 0.14 | 0.14 | ||||||||||||||||
Fourth quarter | 5,889,400 | 3,797,600 | (313,200 | ) | (0.08 | ) | (0.08 | ) | |||||||||||||
Total year | $ | 26,097,000 | $ | 15,573,500 | $ | 357,600 | $ | 0.09 | $ | 0.09 | |||||||||||
2013 | |||||||||||||||||||||
First quarter | $ | 6,594,600 | $ | 4,118,700 | $ | 350,200 | $ | 0.09 | $ | 0.09 | |||||||||||
Second quarter | 5,464,400 | 3,024,200 | 138,200 | 0.04 | 0.04 | ||||||||||||||||
Third quarter | 7,864,400 | 4,813,200 | 525,700 | 0.13 | 0.13 | ||||||||||||||||
Fourth quarter | 5,564,100 | 3,037,200 | (211,200 | ) | (0.06 | ) | (0.06 | ) | |||||||||||||
Total year | $ | 25,487,500 | $ | 14,993,300 | $ | 802,900 | $ | 0.2 | $ | 0.2 | |||||||||||
10_BUSINESS_SEGMENTS
10. BUSINESS SEGMENTS | 12 Months Ended | ||||||||
Feb. 28, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Segment Reporting Disclosure [Text Block] | ' | ||||||||
10 | BUSINESS SEGMENTS | ||||||||
We have two reportable segments: EDC Publishing and Usborne Books & More (“UBAM”) which are business units that offer different methods of distribution to different types of customers. They are managed separately based on the fundamental differences in their operations. | |||||||||
· | EDC Publishing markets its products to retail accounts, which include book, toy and gift stores, school supply stores and museums, through commissioned sales representatives, trade and specialty wholesalers and an internal telesales group. | ||||||||
· | UBAM markets its product line through a nationwide network of independent sales consultants using a combination of direct sales, home shows and book fairs. The UBAM division also distributes to school and public libraries. | ||||||||
The accounting policies of the segments are the same as those described in the summary of significant accounting policies. We evaluate segment performance based on earnings (loss) before income taxes of the segments, which is defined as segment net sales reduced by direct cost of sales and direct expenses. Corporate expenses, depreciation, interest expense and income taxes are not allocated to the segments, but are listed in the “other” column. Corporate expenses include the executive department, accounting department, information services department, general office management and building facilities management. Our assets and liabilities are not allocated on a segment basis. | |||||||||
Information by industry segment for the years ended February 28, 2014 and 2013 is set forth below: | |||||||||
NET REVENUES | |||||||||
2014 | 2013 | ||||||||
Publishing | $ | 10,968,400 | $ | 10,811,600 | |||||
UBAM | $ | 15,128,600 | $ | 14,675,900 | |||||
Other | $ | - | $ | - | |||||
Total | $ | 26,097,000 | $ | 25,487,500 | |||||
EARNINGS (LOSS) BEFORE INCOME TAXES | |||||||||
2014 | 2013 | ||||||||
Publishing | $ | 3,448,900 | $ | 3,457,900 | |||||
UBAM | $ | 2,159,700 | $ | 2,105,800 | |||||
Other | $ | (4,735,100 | ) | $ | (4,281,700 | ) | |||
Total | $ | 873,500 | $ | 1,282,000 | |||||
11_STOCK_REPURCHASE_PLAN
11. STOCK REPURCHASE PLAN | 12 Months Ended | |
Feb. 28, 2014 | ||
Disclosure Text Block Supplement [Abstract] | ' | |
Treasury Stock [Text Block] | ' | |
11 | STOCK REPURCHASE PLAN | |
In April 2008, the Board of Directors authorized us to purchase up to an additional 500,000 shares of our common stock under the plan initiated in 1998. This plan has no expiration date. During fiscal year 2014, we purchased 43,349 shares of common stock at an average price of $2.98 per share totaling approximately $129,200. The maximum number of shares that may be repurchased in the future is 304,654. | ||
12_RECEIVABLE_FROM_CUSTOMER_IN
12. RECEIVABLE FROM CUSTOMER IN BANKRUPTCY | 12 Months Ended |
Feb. 28, 2014 | |
Receivables [Abstract] | ' |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | ' |
12. RECEIVABLE FROM CUSTOMER IN BANKRUPTCY | |
At February 28, 2013, we had a receivable due from a customer who has filed for protection from its creditors under Chapter 11 of the Bankruptcy Reform Act of 1978 in the amount of $364,300, of which $340,000 was reserved in the allowance for doubtful accounts during a prior year. During fiscal year 2014, we received a final bankruptcy payment towards this receivable in the amount of $44,800 representing 12% of the allowed amount of our general unsecured claim. The remaining balance was written off against the reserve during the year ended February 28, 2014. | |
13_STOCK_PURCHASE_AGREEMENT
13. STOCK PURCHASE AGREEMENT | 12 Months Ended |
Feb. 28, 2014 | |
Investments, All Other Investments [Abstract] | ' |
Cost-method Investments, Description [Text Block] | ' |
13. STOCK PURCHASE AGREEMENT | |
As of February 28, 2013, we acquired a 15.6% position with Demibooks, Inc. for an investment of $430,300 under a Stock Purchase Agreement. We accounted for this investment using the cost method, as reflected on the balance sheet under ‘investment in nonmarketable equity securities’. Demibooks provides a publishing platform, Composer, which is a code-free way for publishers and self-published authors and illustrators to create interactive books for the iPad on the device itself. We utilize the Composer platform to create proprietary interactive products. During the year ended 2014, we identified an impairment indicator in the value of our investment in Demibooks, and determined the impairment to be other than temporary. The Company estimated the fair value of the investment to be $0 based on the estimated future cash flows, and recognized an impairment loss of $430,300, which is reflected on the statements of earnings under other expenses. | |
14_FAIR_VALUE_MEASUREMENTS
14. FAIR VALUE MEASUREMENTS | 12 Months Ended |
Feb. 28, 2014 | |
Fair Value Disclosures [Abstract] | ' |
Fair Value Disclosures [Text Block] | ' |
14. FAIR VALUE MEASUREMENTS | |
The valuation hierarchy included in U.S. GAAP considers the transparency of inputs used to value assets and liabilities as of the measurement date. The less transparent or observable the inputs used to value assets and liabilities, the lower the classification of the assets and liabilities in the valuation hierarchy. A financial instrument's classification within the valuation hierarchy is based on the lowest level of input that is significant to its fair value measurement. The three levels of the valuation hierarchy and the classification of our financial assets and liabilities within the hierarchy are as follows: | |
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. | |
Level 2 - Observable inputs other than quoted prices included within Level 1 for the asset or liability, either directly or indirectly. If an asset or liability has a specified term, a Level 2 input must be observable for substantially the full term of the asset or liability. | |
Level 3 - Unobservable inputs for the asset or liability. | |
We do not report any assets or liabilities at fair value in the financial statements. However, the estimated fair value of our line of credit is estimated by management to approximate the carrying value of $0 and $1,250,000 at February 28, 2014 and 2013, respectively. Management's estimates are based on the obligations' characteristics, including floating interest rate, maturity, and collateral. Such valuation inputs are considered a Level 2 measurement in the fair value valuation hierarchy. | |
15_SUBSEQUENT_EVENT
15. SUBSEQUENT EVENT | 12 Months Ended |
Feb. 28, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
15. SUBSEQUENT EVENT | |
On March 21, 2014, we paid the previously declared $0.08 dividend per share to shareholders of record as of March 14, 2014. | |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 12 Months Ended | ||||||||
Feb. 28, 2014 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Use of Estimates, Policy [Policy Text Block] | ' | ||||||||
Estimates—Our financial statements were prepared in conformity with accounting principles generally accepted in the United States of America, which requires management to make estimates and assumptions that affect the amounts and disclosures in the financial statements. Actual results could differ from these estimates. | |||||||||
Concentration Risk, Credit Risk, Policy [Policy Text Block] | ' | ||||||||
Business Concentration—A significant portion of our inventory purchases are concentrated with Usborne. Purchases from them were approximately $9.0 million and $8.6 million for the years ended February 28, 2014 and 2013, respectively. Total inventory purchases for those same periods were approximately $11.4 million and $11.3 million, respectively. | |||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | ' | ||||||||
Cash and Cash Equivalents—Cash and cash equivalents are maintained at financial institutions and, at times, balances may exceed federally insured limits. We have never experienced any losses related to these balances. Insurance coverage on our non-interest bearing cash balances was limited to $250,000 and our non-interest bearing cash balances exceed federally insured limits. The majority of payments due from banks for third party credit card transactions process within two business days. These amounts due are classified as cash and cash equivalents. Cash and cash equivalents includes demand and time deposits, money market funds and other marketable securities with maturities of three months or less when acquired. | |||||||||
Receivables, Policy [Policy Text Block] | ' | ||||||||
Accounts Receivable— Accounts receivable are uncollateralized customer obligations due under normal trade terms generally requiring payment within thirty days from the invoice date. Trade accounts are stated at the amount management expects to collect from outstanding balances. Delinquency fees are not assessed. Payments of accounts receivable are allocated to the specific invoices identified on the customers’ remittance advice. Accounts receivable are carried at original invoice amount less an estimated reserve made for returns and discounts based on quarterly review of historical rates of returns and expected discounts to be taken. The carrying amount of accounts receivable is reduced, if needed, by a valuation allowance that reflects management’s best estimate of the amounts that will not be collected. | |||||||||
Management periodically reviews accounts receivable balances and, based on an assessment of historical bad debts, current customer receivable balances, age of customer receivable balances, customers’ financial conditions and current economic trends, estimates the portion of the balance that will not be collected. Management provides for probable uncollectible amounts through a charge to earnings and a credit to a valuation account based on its assessment of the current status of the individual accounts. Balances which remain outstanding after management has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to trade accounts receivable. Recoveries of trade receivables previously written off are recorded as income when received. | |||||||||
Inventory, Policy [Policy Text Block] | ' | ||||||||
Inventories—Inventories are stated at the lower of cost or market. Cost is determined using the FIFO method. We present a portion of our inventory as a noncurrent asset. Occasionally we purchase book inventory in quantities in excess of what will be sold within the normal operating cycle due to minimum order requirements of our primary supplier. These excess quantities are included in noncurrent inventory. We estimate noncurrent inventory using the current year turnover ratio by title. All inventory in excess of 2½ years of anticipated sales is classified as noncurrent inventory. | |||||||||
Inventories are presented net of a valuation allowance. Management has estimated and included an allowance for slow moving inventory for both current and noncurrent inventory. This allowance is based on management’s analysis of inventory on hand at February 28, 2014 and 2013. | |||||||||
Property, Plant and Equipment, Policy [Policy Text Block] | ' | ||||||||
Property, Plant and Equipment—Property, plant and equipment are stated at cost and depreciated on a straight-line basis over the estimated useful lives, as follows: | |||||||||
Building | 30 years | ||||||||
Machinery and equipment | 3 - 10 years | ||||||||
Furniture and fixtures | 3 years | ||||||||
Income Tax, Policy [Policy Text Block] | ' | ||||||||
Income Taxes—We account for income taxes using the liability method. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement and the tax basis of assets and liabilities using the current tax laws and rates. A valuation allowance is established when necessary to reduce deferred tax assets to the amounts that are “more likely than not” to be realized. | |||||||||
Revenue Recognition, Policy [Policy Text Block] | ' | ||||||||
Revenue Recognition—Sales are recognized and recorded when products are shipped. Products are shipped FOB shipping point. The UBAM division’s sales are paid at the time the product is shipped. These sales accounted for 58% of net revenues in both fiscal years 2014 and 2013. | |||||||||
Estimated allowances for sales returns are recorded as sales are recognized and recorded. Management uses a moving average calculation to estimate the allowance for sales returns. We are not responsible for product damaged in transit. Damaged returns are primarily from the retail stores related to damages which occur in the stores, not in shipping to the stores. It is industry practice to accept returns from wholesale customers. Management has estimated and included a reserve for sales returns of $100,000 as of February 28, 2014 and 2013. | |||||||||
Transportation revenue represents the amount billed to the customer for shipping the product and is recorded when the product is shipped. | |||||||||
Advertising Costs, Policy [Policy Text Block] | ' | ||||||||
Advertising Costs—Advertising costs are expensed as incurred. Advertising expenses, included in selling and operating expenses in the statements of earnings, were $348,600 and $222,600 for the years ending February 28, 2014 and 2013, respectively. | |||||||||
Shipping and Handling Cost, Policy [Policy Text Block] | ' | ||||||||
Shipping and Handling Costs— We classify shipping and handling costs as operating and selling expenses in the statements of earnings. Shipping and handling costs were $2,595,800 and $2,348,900 for the years ending February 28, 2014 and 2013, respectively. | |||||||||
Earnings Per Share, Policy [Policy Text Block] | ' | ||||||||
Earnings per Share—Basic earnings per share (“EPS”) is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted EPS is based on the combined weighted average number of common shares outstanding and dilutive potential common shares issuable which include, where appropriate, the assumed exercise of options. In computing Diluted EPS, we have utilized the treasury stock method. | |||||||||
The computation of weighted average common and common equivalent shares used in the calculation of basic and diluted earnings per share (“EPS”) is shown below. | |||||||||
Year Ended February 28, | |||||||||
2014 | 2013 | ||||||||
Earnings Per Share: | |||||||||
Net earnings applicable to common shareholders | $ | 357,600 | $ | 802,900 | |||||
Shares: | |||||||||
Weighted average shares outstanding–basic | 3,968,214 | 3,934,352 | |||||||
Assumed exercise of options | - | - | |||||||
Weighted average shares outstanding–diluted | 3,968,214 | 3,934,352 | |||||||
Basic Earnings Per Share | $ | 0.09 | $ | 0.2 | |||||
Diluted Earnings Per Share | $ | 0.09 | $ | 0.2 | |||||
Stock options not considered above because they were antidilutive | 11,000 | 16,000 | |||||||
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | ' | ||||||||
Long-Lived Asset Impairment— We review the value of long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable based on estimated future cash flows. No impairment was noted as a result of such review during the years ended February 28, 2014 and 2013. | |||||||||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' | ||||||||
Stock-Based Compensation—Share-based payment transactions with employees, such as stock options and restricted stock, are measured at estimated fair value at date of grant and recognized as compensation expense. | |||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | ' | ||||||||
New accounting pronouncements—The Financial Accounting Standards Board (“FASB”) periodically issues new accounting standards in a continuing effort to improve standards of financial accounting and reporting. We have reviewed the recently issued pronouncements and concluded that the recently issued accounting standards are not applicable to us. |
1_SUMMARY_OF_SIGNIFICANT_ACCOU1
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||
Feb. 28, 2013 | |||||||||
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) [Line Items] | ' | ||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | 'The computation of weighted average common and common equivalent shares used in the calculation of basic and diluted earnings per share (“EPS”) is shown below. | ||||||||
Year Ended February 28, | |||||||||
2014 | 2013 | ||||||||
Earnings Per Share: | |||||||||
Net earnings applicable to common shareholders | $ | 357,600 | $ | 802,900 | |||||
Shares: | |||||||||
Weighted average shares outstanding–basic | 3,968,214 | 3,934,352 | |||||||
Assumed exercise of options | - | - | |||||||
Weighted average shares outstanding–diluted | 3,968,214 | 3,934,352 | |||||||
Basic Earnings Per Share | $ | 0.09 | $ | 0.2 | |||||
Diluted Earnings Per Share | $ | 0.09 | $ | 0.2 | |||||
Stock options not considered above because they were antidilutive | 11,000 | 16,000 | |||||||
Estimated Useful Lives [Member] | ' | ||||||||
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) [Line Items] | ' | ||||||||
Property, Plant and Equipment [Table Text Block] | 'Property, plant and equipment are stated at cost and depreciated on a straight-line basis over the estimated useful lives, as follows: | ||||||||
Building | 30 years | ||||||||
Machinery and equipment | 3 - 10 years | ||||||||
Furniture and fixtures | 3 years |
2_INVENTORIES_Tables
2. INVENTORIES (Tables) | 12 Months Ended | ||||||||
Feb. 28, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Schedule of Inventory [Table Text Block] | 'Inventories consist of the following: | ||||||||
February 28, | |||||||||
2014 | 2013 | ||||||||
Current: | |||||||||
Book inventory | $ | 9,894,400 | $ | 9,749,700 | |||||
Inventory valuation allowance | (25,000 | ) | (25,000 | ) | |||||
Inventories net–current | $ | 9,869,400 | $ | 9,724,700 | |||||
Noncurrent: | |||||||||
Book inventory | $ | 824,000 | $ | 934,000 | |||||
Inventory valuation allowance | (353,800 | ) | (375,000 | ) | |||||
Inventories net–noncurrent | $ | 470,200 | $ | 559,000 |
3_PROPERTY_PLANT_AND_EQUIPMENT1
3. PROPERTY, PLANT AND EQUIPMENT (Tables) (Property, Plant and Equipment [Member]) | 12 Months Ended | ||||||||
Feb. 28, 2013 | |||||||||
Property, Plant and Equipment [Member] | ' | ||||||||
3. PROPERTY, PLANT AND EQUIPMENT (Tables) [Line Items] | ' | ||||||||
Property, Plant and Equipment [Table Text Block] | 'Property, plant and equipment consist of the following: | ||||||||
February 28, | |||||||||
2014 | 2013 | ||||||||
Land | $ | 250,000 | $ | 250,000 | |||||
Building | 2,124,700 | 2,124,700 | |||||||
Machinery and equipment | 2,363,800 | 2,287,900 | |||||||
Furniture and fixtures | 75,700 | 74,100 | |||||||
4,814,200 | 4,736,700 | ||||||||
Less accumulated depreciation | (2,936,600 | ) | (2,821,200 | ) | |||||
$ | 1,877,600 | $ | 1,915,500 |
4_INCOME_TAXES_Tables
4. INCOME TAXES (Tables) | 12 Months Ended | ||||||||
Feb. 28, 2014 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 'Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The tax effects of significant items comprising our net deferred tax assets and liabilities as of February 28 are as follows: | ||||||||
2014 | 2013 | ||||||||
Current: | |||||||||
Deferred tax assets: | |||||||||
Allowance for doubtful accounts | $ | 58,500 | $ | 175,900 | |||||
Inventory overhead capitalization | 79,000 | 77,800 | |||||||
Inventory valuation allowance | 9,500 | 9,500 | |||||||
Allowance for sales returns | 38,000 | 38,000 | |||||||
Accruals | 74,300 | 80,200 | |||||||
Deferred tax assets-current | 259,300 | 381,400 | |||||||
Noncurrent: | |||||||||
Deferred tax assets: | |||||||||
Inventory valuation allowance | $ | 134,400 | $ | 140,600 | |||||
Capital loss carryforward | 163,600 | - | |||||||
Subtotal deferred tax assets | 298,000 | 140,600 | |||||||
Less valuation allowance | (163,600 | ) | |||||||
Total net deferred tax assets | 134,400 | 140,600 | |||||||
Deferred tax liabilities: | |||||||||
Property and equipment | (63,000 | ) | (63,700 | ) | |||||
Deferred tax liabilities | (63,000 | ) | (63,700 | ) | |||||
Net deferred tax asset-noncurrent | $ | 71,400 | $ | 76,900 | |||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | 'The components of income tax expense are as follows: | ||||||||
February 28, | |||||||||
2014 | 2013 | ||||||||
Current: | |||||||||
Federal | $ | 299,000 | $ | 411,000 | |||||
State | 89,300 | 80,700 | |||||||
388,300 | 491,700 | ||||||||
Deferred: | |||||||||
Federal | 133,200 | (10,600 | ) | ||||||
State | (5,600 | ) | (2,000 | ) | |||||
127,600 | (12,600 | ) | |||||||
Total income tax expense | $ | 515,900 | $ | 479,100 | |||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 'The following reconciles our expected income tax expense utilizing statutory tax rates to the actual tax expense: | ||||||||
February 28, | |||||||||
2014 | 2013 | ||||||||
Tax expense at federal statutory rate | $ | 297,000 | $ | 435,900 | |||||
State income tax–net of federal tax benefit | 70,100 | 50,400 | |||||||
Change in capital loss valuation allowance | 163,600 | - | |||||||
Other | (14,800 | ) | (7,200 | ) | |||||
Total income tax expense | $ | 515,900 | $ | 479,100 |
8_CAPITAL_STOCK_STOCK_OPTIONS_1
8. CAPITAL STOCK, STOCK OPTIONS AND WARRANTS (Tables) | 12 Months Ended | ||||||||||||||||
Feb. 28, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | 'A summary of the status of our Incentive Plans as of February 28, 2014 and 2013, and changes during the years then ended is presented below: | ||||||||||||||||
February 28, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Weighted | Weighted | ||||||||||||||||
Average | Average | ||||||||||||||||
Exercise | Exercise | ||||||||||||||||
Shares | Price | Shares | Price | ||||||||||||||
Outstanding at | |||||||||||||||||
Beginning of Year | 16,000 | $ | 5.55 | 16,000 | $ | 5.55 | |||||||||||
Exercised/canceled | (5,000 | ) | (5.25 | ) | - | - | |||||||||||
Outstanding at End of Year | 11,000 | $ | 5.68 | 16,000 | $ | 5.55 |
9_QUARTERLY_RESULTS_OF_OPERATI1
9. QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) (Tables) | 12 Months Ended | ||||||||||||||||||||
Feb. 28, 2014 | |||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] | 'The following is a summary of the quarterly results of operations for the years ended February 28, 2014 and 2013. | ||||||||||||||||||||
Basic | Diluted | ||||||||||||||||||||
Net | Earnings | Earnings | |||||||||||||||||||
Revenues | Gross Margin | Net Earnings | Per Share | Per Share | |||||||||||||||||
2014 | |||||||||||||||||||||
First quarter | $ | 5,990,500 | $ | 3,514,300 | $ | 66,600 | $ | 0.02 | $ | 0.02 | |||||||||||
Second quarter | 5,715,100 | 3,054,100 | 56,400 | 0.01 | 0.01 | ||||||||||||||||
Third quarter | 8,502,000 | 5,207,500 | 547,800 | 0.14 | 0.14 | ||||||||||||||||
Fourth quarter | 5,889,400 | 3,797,600 | (313,200 | ) | (0.08 | ) | (0.08 | ) | |||||||||||||
Total year | $ | 26,097,000 | $ | 15,573,500 | $ | 357,600 | $ | 0.09 | $ | 0.09 | |||||||||||
2013 | |||||||||||||||||||||
First quarter | $ | 6,594,600 | $ | 4,118,700 | $ | 350,200 | $ | 0.09 | $ | 0.09 | |||||||||||
Second quarter | 5,464,400 | 3,024,200 | 138,200 | 0.04 | 0.04 | ||||||||||||||||
Third quarter | 7,864,400 | 4,813,200 | 525,700 | 0.13 | 0.13 | ||||||||||||||||
Fourth quarter | 5,564,100 | 3,037,200 | (211,200 | ) | (0.06 | ) | (0.06 | ) | |||||||||||||
Total year | $ | 25,487,500 | $ | 14,993,300 | $ | 802,900 | $ | 0.2 | $ | 0.2 |
10_BUSINESS_SEGMENTS_Tables
10. BUSINESS SEGMENTS (Tables) | 12 Months Ended | ||||||||
Feb. 28, 2013 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | 'Information by industry segment for the years ended February 28, 2014 and 2013 is set forth below: | ||||||||
NET REVENUES | |||||||||
2014 | 2013 | ||||||||
Publishing | $ | 10,968,400 | $ | 10,811,600 | |||||
UBAM | $ | 15,128,600 | $ | 14,675,900 | |||||
Other | $ | - | $ | - | |||||
Total | $ | 26,097,000 | $ | 25,487,500 | |||||
EARNINGS (LOSS) BEFORE INCOME TAXES | |||||||||
2014 | 2013 | ||||||||
Publishing | $ | 3,448,900 | $ | 3,457,900 | |||||
UBAM | $ | 2,159,700 | $ | 2,105,800 | |||||
Other | $ | (4,735,100 | ) | $ | (4,281,700 | ) | |||
Total | $ | 873,500 | $ | 1,282,000 |
1_SUMMARY_OF_SIGNIFICANT_ACCOU2
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | |
Feb. 28, 2014 | Feb. 28, 2013 | |
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ' | ' |
Cash, FDIC Insured Amount | $250,000 | ' |
Concentration Risk, Percentage | 58.00% | 58.00% |
Revenue Recognition, Sales Returns, Reserve for Sales Returns | 100,000 | 100,000 |
Advertising Expense | 348,600 | 222,600 |
Shipping, Handling and Transportation Costs | 2,595,800 | 2,348,900 |
Impairment of Intangible Assets, Finite-lived | 0 | 0 |
England Based Publishing Company [Member] | ' | ' |
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ' | ' |
Payments for (Proceeds from) Other Investing Activities | 9,000,000 | 8,600,000 |
All Inventory Suppliers [Member] | ' | ' |
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ' | ' |
Payments for (Proceeds from) Other Investing Activities | $11,400,000 | $11,300,000 |
1_SUMMARY_OF_SIGNIFICANT_ACCOU3
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Property, Plant and Equipment, Estimated Useful Lives | 12 Months Ended |
Feb. 28, 2014 | |
Building [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated Useful Live | '30 years |
Machinery and Equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated Useful Live | '3 - 10 years |
Furniture and Fixtures [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated Useful Live | '3 years |
1_SUMMARY_OF_SIGNIFICANT_ACCOU4
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Diluted Earnings Per Share (USD $) | 12 Months Ended | |
Feb. 28, 2014 | Feb. 28, 2013 | |
Earnings Per Share: | ' | ' |
Net earnings applicable to common shareholders (in Dollars) | $357,600 | $802,900 |
Shares: | ' | ' |
Weighted average shares outstandingbbasic | 3,968,214 | 3,934,352 |
Assumed exercise of options | 0 | 0 |
Weighted average shares outstandingbdiluted | 3,968,214 | 3,934,352 |
Basic Earnings Per Share (in Dollars per share) | $0.09 | $0.20 |
Diluted Earnings Per Share (in Dollars per share) | $0.09 | $0.20 |
Stock options not considered above because they were antidilutive | 11,000 | 16,000 |
2_INVENTORIES_Details_Schedule
2. INVENTORIES (Details) - Schedule of Inventory (USD $) | Feb. 28, 2014 | Feb. 28, 2013 |
2. INVENTORIES (Details) - Schedule of Inventory [Line Items] | ' | ' |
Inventories netbnoncurrent | $470,200 | $559,000 |
Inventories netbcurrent | 9,869,400 | 9,724,700 |
Current [Member] | ' | ' |
2. INVENTORIES (Details) - Schedule of Inventory [Line Items] | ' | ' |
Book inventory | 9,894,400 | 9,749,700 |
Inventory valuation allowance | -25,000 | -25,000 |
Noncurrent [Member] | ' | ' |
2. INVENTORIES (Details) - Schedule of Inventory [Line Items] | ' | ' |
Book inventory | 824,000 | 934,000 |
Inventory valuation allowance | ($353,800) | ($375,000) |
3_PROPERTY_PLANT_AND_EQUIPMENT2
3. PROPERTY, PLANT AND EQUIPMENT (Details) - Schedule of Property, Plant and Equipment (USD $) | Feb. 28, 2014 | Feb. 28, 2013 |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | $4,814,200 | $4,736,700 |
Less accumulated depreciation | -2,936,600 | -2,821,200 |
1,877,600 | 1,915,500 | |
Land [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 250,000 | 250,000 |
Building [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 2,124,700 | 2,124,700 |
Machinery and Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 2,363,800 | 2,287,900 |
Furniture and Fixtures [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | $75,700 | $74,100 |
4_INCOME_TAXES_Details_Schedul
4. INCOME TAXES (Details) - Schedule of Deferred Tax Assets and Liabilities (USD $) | Feb. 28, 2014 | Feb. 28, 2013 |
Deferred tax assets: | ' | ' |
Allowance for doubtful accounts | $58,500 | $175,900 |
Inventory overhead capitalization | 79,000 | 77,800 |
Inventory valuation allowance | 9,500 | 9,500 |
Allowance for sales returns | 38,000 | 38,000 |
Accruals | 74,300 | 80,200 |
Deferred tax assets-current | 259,300 | 381,400 |
Deferred tax assets: | ' | ' |
Inventory valuation allowance | 134,400 | 140,600 |
Capital loss carryforward | 163,600 | 0 |
Subtotal deferred tax assets | 298,000 | 140,600 |
Less valuation allowance | -163,600 | 0 |
Total net deferred tax assets | 134,400 | 140,600 |
Deferred tax liabilities: | ' | ' |
Property and equipment | -63,000 | -63,700 |
Deferred tax liabilities | -63,000 | -63,700 |
Net deferred tax asset-noncurrent | $71,400 | $76,900 |
4_INCOME_TAXES_Details_Schedul1
4. INCOME TAXES (Details) - Schedule of Components of Income Tax Expense (Benefit) (USD $) | 12 Months Ended | |
Feb. 28, 2014 | Feb. 28, 2013 | |
Current: | ' | ' |
Federal | $299,000 | $411,000 |
State | 89,300 | 80,700 |
388,300 | 491,700 | |
Deferred: | ' | ' |
Federal | 133,200 | -10,600 |
State | -5,600 | -2,000 |
127,600 | -12,600 | |
Total income tax expense | $515,900 | $479,100 |
4_INCOME_TAXES_Details_Schedul2
4. INCOME TAXES (Details) - Schedule of Effective Income Tax Rate Reconciliation (USD $) | 12 Months Ended | |
Feb. 28, 2014 | Feb. 28, 2013 | |
Schedule of Effective Income Tax Rate Reconciliation [Abstract] | ' | ' |
Tax expense at federal statutory rate | $297,000 | $435,900 |
State income taxbnet of federal tax benefit | 70,100 | 50,400 |
Change in capital loss valuation allowance | 163,600 | 0 |
Other | -14,800 | -7,200 |
Total income tax expense | $515,900 | $479,100 |
5_EMPLOYEE_BENEFIT_PLAN_Detail
5. EMPLOYEE BENEFIT PLAN (Details) (401(k) Plan [Member], USD $) | 12 Months Ended | |
Feb. 28, 2014 | Feb. 28, 2013 | |
401(k) Plan [Member] | ' | ' |
5. EMPLOYEE BENEFIT PLAN (Details) [Line Items] | ' | ' |
Defined Benefit Plan, Contributions by Employer | $57,100 | $67,500 |
Stock Issued During Period, Shares, Treasury Stock Reissued | 60,480 | 57,367 |
6_DEBT_Details
6. DEBT (Details) (USD $) | 12 Months Ended | |
Feb. 28, 2014 | Feb. 28, 2013 | |
Debt Disclosure [Abstract] | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | $2,500,000 | ' |
Line of Credit Facility, Interest Rate Description | '(a) prime rate minus 0.75% or (b) 4.00% | ' |
Line of Credit Facility, Interest Rate at Period End | 4.00% | ' |
Line of Credit Facility, Amount Outstanding | 0 | 1,250,000 |
Line of Credit Facility, Remaining Borrowing Capacity | $2,500,000 | ' |
7_COMMITMENTS_Details
7. COMMITMENTS (Details) (USD $) | 12 Months Ended |
Feb. 28, 2014 | |
7. COMMITMENTS (Details) [Line Items] | ' |
Operating Leases, Rent Expense | $57,200 |
Inventory [Member] | ' |
7. COMMITMENTS (Details) [Line Items] | ' |
Purchase Commitment, Remaining Minimum Amount Committed | $5,270,800 |
8_CAPITAL_STOCK_STOCK_OPTIONS_2
8. CAPITAL STOCK, STOCK OPTIONS AND WARRANTS (Details) | 12 Months Ended |
Feb. 28, 2014 | |
2002 Plan [Member] | ' |
8. CAPITAL STOCK, STOCK OPTIONS AND WARRANTS (Details) [Line Items] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,000,000 |
Collective Incentive Plans [Member] | ' |
8. CAPITAL STOCK, STOCK OPTIONS AND WARRANTS (Details) [Line Items] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | 'vest at date of grant and are exercisable up to ten years from the date of grant |
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | 'exercise price on options granted is equal to the market price at the date of grant |
8_CAPITAL_STOCK_STOCK_OPTIONS_3
8. CAPITAL STOCK, STOCK OPTIONS AND WARRANTS (Details) - Schedule of Stock Option Activity (USD $) | 12 Months Ended | |
Feb. 28, 2014 | Feb. 28, 2013 | |
Number of Shares [Member] | ' | ' |
Outstanding at | ' | ' |
Beginning of Year | 16,000 | 16,000 |
Exercised/canceled | -5,000 | 0 |
Outstanding at End of Year | 11,000 | 16,000 |
Weighted Average Exercise Price [Member] | ' | ' |
Outstanding at | ' | ' |
Beginning of Year | 5.55 | 5.55 |
Exercised/canceled | -5.25 | 0 |
Outstanding at End of Year | 5.68 | 5.55 |
9_QUARTERLY_RESULTS_OF_OPERATI2
9. QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) (Details) - Schedule of Quarterly Financial Information (USD $) | 12 Months Ended | 3 Months Ended | ||||||||
Feb. 28, 2014 | Feb. 28, 2013 | 31-May-13 | 31-May-12 | Aug. 31, 2013 | Aug. 31, 2012 | Nov. 30, 2013 | Nov. 30, 2012 | Feb. 28, 2014 | Feb. 28, 2013 | |
First Quarter [Member] | First Quarter [Member] | Second Quarter [Member] | Second Quarter [Member] | Third Quarter [Member] | Third Quarter [Member] | Fourth Quarter [Member] | Fourth Quarter [Member] | |||
9. QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) (Details) - Schedule of Quarterly Financial Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Revenues | $26,097,000 | $25,487,500 | $5,990,500 | $6,594,600 | $5,715,100 | $5,464,400 | $8,502,000 | $7,864,400 | $5,889,400 | $5,564,100 |
Gross Margin | 15,573,500 | 14,993,300 | 3,514,300 | 4,118,700 | 3,054,100 | 3,024,200 | 5,207,500 | 4,813,200 | 3,797,600 | 3,037,200 |
Net Earnings | $357,600 | $802,900 | $66,600 | $350,200 | $56,400 | $138,200 | $547,800 | $525,700 | ($313,200) | ($211,200) |
Basic Earnings Per Share (in Dollars per share) | $0.09 | $0.20 | $0.02 | $0.09 | $0.01 | $0.04 | $0.14 | $0.13 | ($0.08) | ($0.06) |
Diluted Earnings Per Share (in Dollars per share) | $0.09 | $0.20 | $0.02 | $0.09 | $0.01 | $0.04 | $0.14 | $0.13 | ($0.08) | ($0.06) |
10_BUSINESS_SEGMENTS_Details
10. BUSINESS SEGMENTS (Details) | 12 Months Ended |
Feb. 28, 2014 | |
Segment Reporting [Abstract] | ' |
Number of Reportable Segments | 2 |
10_BUSINESS_SEGMENTS_Details_S
10. BUSINESS SEGMENTS (Details) - Schedule of Information by Industry Segment (USD $) | 12 Months Ended | |
Feb. 28, 2014 | Feb. 28, 2013 | |
Segment Reporting Information [Line Items] | ' | ' |
Net Revenues | $26,097,000 | $25,487,500 |
Earnings (Loss) Before Income Taxes | 873,500 | 1,282,000 |
Publishing [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net Revenues | 10,968,400 | 10,811,600 |
Earnings (Loss) Before Income Taxes | 3,448,900 | 3,457,900 |
Usborne Books and More [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net Revenues | 15,128,600 | 14,675,900 |
Earnings (Loss) Before Income Taxes | 2,159,700 | 2,105,800 |
Other Segments [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net Revenues | 0 | 0 |
Earnings (Loss) Before Income Taxes | ($4,735,100) | ($4,281,700) |
11_STOCK_REPURCHASE_PLAN_Detai
11. STOCK REPURCHASE PLAN (Details) (USD $) | 12 Months Ended |
Feb. 28, 2014 | |
Disclosure Text Block Supplement [Abstract] | ' |
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 500,000 |
Stock Repurchased During Period, Shares | 43,349 |
Stock Repurchased During Period, Average Price Paid (in Dollars per share) | $2.98 |
Stock Repurchased During Period, Value (in Dollars) | $129,200 |
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 304,654 |
12_RECEIVABLE_FROM_CUSTOMER_IN1
12. RECEIVABLE FROM CUSTOMER IN BANKRUPTCY (Details) (USD $) | 12 Months Ended | |
Feb. 28, 2014 | Feb. 28, 2013 | |
Receivables [Abstract] | ' | ' |
Accounts Receivable, Gross, Current | ' | $364,300 |
Allowance for Doubtful Accounts Receivable | ' | 340,000 |
Proceeds from Collection of Other Receivables | $44,800 | ' |
Accounts Receivable, Percent of General Unsecured Claim | 12.00% | ' |
13_STOCK_PURCHASE_AGREEMENT_De
13. STOCK PURCHASE AGREEMENT (Details) (Demibooks Stock Purchase Agreement [Member], USD $) | 12 Months Ended |
Feb. 28, 2013 | |
Demibooks Stock Purchase Agreement [Member] | ' |
13. STOCK PURCHASE AGREEMENT (Details) [Line Items] | ' |
Cost Method Investments, Additional Information | 'we acquired a 15.6% position with Demibooks, Inc. for an investment of $430,300 under a Stock Purchase Agreement. |
Cost Method Investment, Ownership, Percentage | 15.60% |
Payments to Acquire Other Investments | $430,300 |
Cost-method Investments, Aggregate Carrying Amount, Not Evaluated for Impairment | 0 |
Cost-method Investments, Other than Temporary Impairment | $430,300 |
14_FAIR_VALUE_MEASUREMENTS_Det
14. FAIR VALUE MEASUREMENTS (Details) (Fair Value, Inputs, Level 2 [Member], USD $) | Feb. 28, 2014 | Feb. 28, 2013 |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
14. FAIR VALUE MEASUREMENTS (Details) [Line Items] | ' | ' |
Lines of Credit, Fair Value Disclosure | $0 | $1,250,000 |
15_SUBSEQUENT_EVENT_Details
15. SUBSEQUENT EVENT (Details) (Subsequent Event [Member], USD $) | 0 Months Ended |
Mar. 21, 2014 | |
Subsequent Event [Member] | ' |
15. SUBSEQUENT EVENT (Details) [Line Items] | ' |
Common Stock, Dividends, Per Share, Cash Paid | $0.08 |