Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Aug. 31, 2019 | Oct. 08, 2019 | |
Document Information Line Items | ||
Entity Registrant Name | Educational Development Corp | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --02-28 | |
Entity Common Stock, Shares Outstanding | 8,467,379 | |
Amendment Flag | false | |
Entity Central Index Key | 0000031667 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Aug. 31, 2019 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Ex Transition Period | false | |
Entity Interactive Data Current | Yes |
CONDENSED BALANCE SHEETS
CONDENSED BALANCE SHEETS - USD ($) | Aug. 31, 2019 | Feb. 28, 2019 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 966,800 | $ 3,199,300 |
Accounts receivable, less allowance for doubtful accounts of $311,700 (August 31) and $268,600 (February 28) | 3,498,700 | 3,258,800 |
Inventories - Net | 35,619,700 | 33,445,600 |
Prepaid expenses and other assets | 1,008,400 | 1,603,500 |
Total current assets | 41,093,600 | 41,507,200 |
INVENTORIES - Net | 658,600 | 575,000 |
PROPERTY, PLANT AND EQUIPMENT - Net | 26,714,500 | 27,164,600 |
OTHER ASSETS | 70,000 | 19,500 |
TOTAL ASSETS | 68,536,700 | 69,266,300 |
CURRENT LIABILITIES | ||
Accounts payable | 13,180,700 | 14,228,600 |
Line of credit | 1,056,100 | 0 |
Deferred revenues | 751,900 | 965,600 |
Current maturities of long-term debt | 927,200 | 945,900 |
Accrued salaries and commissions | 1,751,500 | 2,039,000 |
Income taxes payable | 1,070,400 | 756,400 |
Dividends payable | 422,300 | 410,100 |
Other current liabilities | 2,538,600 | 4,177,900 |
Total current liabilities | 21,698,700 | 23,523,500 |
LONG-TERM DEBT - Net of current maturities | 18,377,300 | 18,830,700 |
DEFERRED INCOME TAXES - Net | 1,000,200 | 872,600 |
OTHER LONG-TERM LIABILITIES | 146,100 | 109,000 |
Total liabilities | 41,222,300 | 43,335,800 |
SHAREHOLDERS' EQUITY | ||
Common stock, $0.20 par value; Authorized 16,000,000 shares; Issued 12,400,080 (August 31) and 12,092,080 (February 28) shares; Outstanding 8,447,898 (August 31) and 8,195,082 (February 28) shares | 2,480,000 | 2,418,400 |
Capital in excess of par value | 9,368,100 | 8,975,100 |
Retained earnings | 27,294,900 | 25,754,900 |
39,143,000 | 37,148,400 | |
Less treasury stock, at cost | (11,828,600) | (11,217,900) |
Total shareholders' equity | 27,314,400 | 25,930,500 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 68,536,700 | $ 69,266,300 |
CONDENSED BALANCE SHEETS (Paren
CONDENSED BALANCE SHEETS (Parentheticals) - USD ($) | Aug. 31, 2019 | Feb. 28, 2019 |
Allowance for doubtful accounts (in Dollars) | $ 311,700 | $ 268,600 |
Common Stock, par value (in Dollars per share) | $ 0.20 | $ 0.20 |
Common Stock, shares authorized | 16,000,000 | 16,000,000 |
Common Stock, shares issued | 12,400,080 | 12,092,080 |
Common Stock, shares outstanding | 8,447,898 | 8,195,082 |
CONDENSED STATEMENTS OF EARNING
CONDENSED STATEMENTS OF EARNINGS - USD ($) | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | |
NET REVENUES | $ 24,438,000 | $ 24,681,000 | $ 52,025,400 | $ 54,703,300 |
COST OF GOODS SOLD | 8,046,400 | 8,462,700 | 17,102,600 | 18,132,400 |
Gross margin | 16,391,600 | 16,218,300 | 34,922,800 | 36,570,900 |
OPERATING EXPENSES | ||||
Operating and selling | 4,192,500 | 3,261,600 | 8,576,400 | 8,013,800 |
Sales commissions | 7,263,100 | 7,313,000 | 15,796,100 | 16,686,100 |
General and administrative | 3,717,600 | 3,738,400 | 7,655,800 | 7,630,900 |
Total operating expenses | 15,173,200 | 14,313,000 | 32,028,300 | 32,330,800 |
INTEREST EXPENSE | 242,500 | 270,000 | 474,500 | 483,400 |
OTHER INCOME | (390,800) | (400,300) | (793,200) | (774,700) |
EARNINGS BEFORE INCOME TAXES | 1,366,700 | 2,035,600 | 3,213,200 | 4,531,400 |
INCOME TAXES | 359,100 | 544,900 | 842,000 | 1,224,100 |
NET EARNINGS | $ 1,007,600 | $ 1,490,700 | $ 2,371,200 | $ 3,307,300 |
BASIC AND DILUTED EARNINGS PER SHARE | ||||
Basic (in Dollars per share) | $ 0.12 | $ 0.18 | $ 0.29 | $ 0.40 |
Diluted (in Dollars per share) | $ 0.12 | $ 0.18 | $ 0.29 | $ 0.40 |
WEIGHTED AVERAGE NUMBER OF COMMON AND EQUIVALENT SHARES OUTSTANDING | ||||
Basic (in Shares) | 8,312,648 | 8,185,419 | 8,248,460 | 8,181,305 |
Diluted (in Shares) | 8,318,790 | 8,192,833 | 8,254,926 | 8,188,920 |
Dividends per share (in Dollars per share) | $ 0.05 | $ 0 | $ 0.10 | $ 0.05 |
Gross Sales [Member] | ||||
REVENUES | $ 32,541,700 | $ 33,013,600 | $ 69,015,400 | $ 72,088,400 |
Discounts and Allowances [Member] | ||||
WEIGHTED AVERAGE NUMBER OF COMMON AND EQUIVALENT SHARES OUTSTANDING | ||||
Less discounts and allowances | (10,241,000) | (10,444,700) | (21,572,400) | (22,346,100) |
Transportation Revenue [Member] | ||||
REVENUES | $ 2,137,300 | $ 2,112,100 | $ 4,582,400 | $ 4,961,000 |
CONDENSED STATEMENTS OF SHAREHO
CONDENSED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total |
Balance at Feb. 28, 2018 | $ 2,418,400 | $ 8,573,300 | $ 20,714,500 | $ (11,304,100) | $ 20,402,100 |
Balance (in Shares) at Feb. 28, 2018 | 12,092,080 | 3,912,468 | |||
Purchases of treasury stock | $ (29,600) | (29,600) | |||
Purchases of treasury stock (in Shares) | 2,846 | ||||
Sales of treasury stock | $ 25,100 | 25,100 | |||
Sales of treasury stock (in Shares) | (3,302) | ||||
Dividends declared | (409,000) | (409,000) | |||
Net earnings | 1,816,600 | 1,816,600 | |||
Balance at May. 31, 2018 | $ 2,418,400 | 8,573,300 | 22,122,100 | $ (11,308,600) | 21,805,200 |
Balance (in Shares) at May. 31, 2018 | 12,092,080 | 3,912,012 | |||
Balance at Feb. 28, 2018 | $ 2,418,400 | 8,573,300 | 20,714,500 | $ (11,304,100) | 20,402,100 |
Balance (in Shares) at Feb. 28, 2018 | 12,092,080 | 3,912,468 | |||
Net earnings | 3,307,300 | ||||
Balance at Aug. 31, 2018 | $ 2,418,400 | 8,643,300 | 23,612,800 | $ (11,231,400) | 23,443,100 |
Balance (in Shares) at Aug. 31, 2018 | 12,092,080 | 3,902,378 | |||
Balance at May. 31, 2018 | $ 2,418,400 | 8,573,300 | 22,122,100 | $ (11,308,600) | 21,805,200 |
Balance (in Shares) at May. 31, 2018 | 12,092,080 | 3,912,012 | |||
Exercise of options | $ 77,200 | 77,200 | |||
Exercise of options (in Shares) | (9,634) | ||||
Share-based compensation expense | 70,000 | 70,000 | |||
Net earnings | 1,490,700 | 1,490,700 | |||
Balance at Aug. 31, 2018 | $ 2,418,400 | 8,643,300 | 23,612,800 | $ (11,231,400) | 23,443,100 |
Balance (in Shares) at Aug. 31, 2018 | 12,092,080 | 3,902,378 | |||
Balance at Feb. 28, 2019 | $ 2,418,400 | 8,975,100 | 25,754,900 | $ (11,217,900) | 25,930,500 |
Balance (in Shares) at Feb. 28, 2019 | 12,092,080 | 3,896,998 | |||
Purchases of treasury stock | $ (302,500) | (302,500) | |||
Purchases of treasury stock (in Shares) | 36,959 | ||||
Sales of treasury stock | 68,100 | $ 54,300 | 122,400 | ||
Sales of treasury stock (in Shares) | (19,171) | ||||
Dividends declared | (408,900) | (408,900) | |||
Share-based compensation expense | 166,300 | 166,300 | |||
Net earnings | 1,363,600 | 1,363,600 | |||
Balance at May. 31, 2019 | $ 2,418,400 | 9,209,500 | 26,709,600 | $ (11,466,100) | 26,871,400 |
Balance (in Shares) at May. 31, 2019 | 12,092,080 | 3,914,786 | |||
Balance at Feb. 28, 2019 | $ 2,418,400 | 8,975,100 | 25,754,900 | $ (11,217,900) | 25,930,500 |
Balance (in Shares) at Feb. 28, 2019 | 12,092,080 | 3,896,998 | |||
Net earnings | 2,371,200 | ||||
Balance at Aug. 31, 2019 | $ 2,480,000 | 9,368,100 | 27,294,900 | $ (11,828,600) | 27,314,400 |
Balance (in Shares) at Aug. 31, 2019 | 12,400,080 | 3,952,182 | |||
Balance at May. 31, 2019 | $ 2,418,400 | 9,209,500 | 26,709,600 | $ (11,466,100) | 26,871,400 |
Balance (in Shares) at May. 31, 2019 | 12,092,080 | 3,914,786 | |||
Purchases of treasury stock | $ (417,100) | (417,100) | |||
Purchases of treasury stock (in Shares) | 60,357 | ||||
Sales of treasury stock | 54,000 | $ 54,600 | 108,600 | ||
Sales of treasury stock (in Shares) | (22,961) | ||||
Dividends declared | (422,300) | (422,300) | |||
Share-based compensation expense | 166,200 | 166,200 | |||
Issuance of restricted share awards for vesting | $ 61,600 | (61,600) | |||
Issuance of restricted share awards for vesting (in Shares) | 308,000 | ||||
Net earnings | 1,007,600 | 1,007,600 | |||
Balance at Aug. 31, 2019 | $ 2,480,000 | $ 9,368,100 | $ 27,294,900 | $ (11,828,600) | $ 27,314,400 |
Balance (in Shares) at Aug. 31, 2019 | 12,400,080 | 3,952,182 |
CONDENSED STATEMENTS OF SHARE_2
CONDENSED STATEMENTS OF SHAREHOLDERS' EQUITY (Parentheticals) - $ / shares | 3 Months Ended | 6 Months Ended | ||||
Aug. 31, 2019 | May 31, 2019 | Aug. 31, 2018 | May 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | |
Dividends declared | $ 0.05 | $ 0.05 | $ 0 | $ 0.05 | $ 0.10 | $ 0.05 |
CONDENSED STATEMENTS OF CASH FL
CONDENSED STATEMENTS OF CASH FLOWS - USD ($) | 6 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net earnings | $ 2,371,200 | $ 3,307,300 |
Adjustments to reconcile net earnings to net cash used in operating activities: | ||
Depreciation | 684,800 | 717,600 |
Deferred income taxes, net | 127,600 | 251,100 |
Provision for doubtful accounts | 63,200 | 17,200 |
Provision for inventory valuation allowance | 129,900 | 176,300 |
Share-based compensation expense | 332,500 | 70,000 |
Changes in assets and liabilities: | ||
Accounts receivable | (303,100) | (264,800) |
Inventories | (2,387,600) | (7,216,400) |
Prepaid expenses and other assets | 544,600 | (35,800) |
Accounts payable | (1,047,900) | 2,767,400 |
Accrued salaries and commissions, and other liabilities | (1,889,700) | (1,276,400) |
Deferred revenues | (213,700) | (234,800) |
Income taxes payable | 314,000 | (632,400) |
Total adjustments | (3,645,400) | (5,661,000) |
Net cash used in operating activities | (1,274,200) | (2,353,700) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of property, plant and equipment | (234,700) | (1,331,800) |
Net cash used in investing activities | (234,700) | (1,331,800) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Payments on long-term debt | (472,100) | (467,200) |
Cash received from sale of treasury stock | 231,000 | 102,300 |
Cash used to purchase treasury stock | (719,600) | (29,600) |
Net borrowings under line of credit | 1,056,100 | 2,598,700 |
Dividends paid | (819,000) | (409,000) |
Net cash (used in) provided by financing activities | (723,600) | 1,795,200 |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (2,232,500) | (1,890,300) |
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | 3,199,300 | 2,723,300 |
CASH AND CASH EQUIVALENTS - END OF PERIOD | 966,800 | 833,000 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION | ||
Cash paid for interest | 465,900 | 454,800 |
Cash paid for income taxes | 448,600 | 1,596,100 |
NON-CASH TRANSACTIONS | ||
Accrued capital expenditures | $ 0 | $ 0 |
Note 1 - BASIS OF PRESENTATION
Note 1 - BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Aug. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Note 1 Basis of Presentation The accompanying Unaudited Condensed Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim condensed financial information and in accordance with the rules and regulations of the Securities and Exchange Commission. The Unaudited Condensed Financial Statements include all adjustments considered necessary for a fair presentation of the financial position and results of operations for the interim periods presented. Such adjustments consist only of normal recurring items, unless otherwise disclosed herein. Accordingly, the Unaudited Condensed Financial Statements do not include all of the information and notes required by GAAP for complete financial statements. However, we believe that the disclosures made are adequate to make the information not misleading. These interim Unaudited Condensed Financial Statements should be read in conjunction with our audited financial statements as of and for the year ended February 28, 2019 included in our Form 10-K. The results of operations for interim periods are not necessarily indicative of the results to be expected for a full year due to the seasonality of our product sales. On July 24, 2018, our Board of Directors authorized a two-for-one stock split in the form of a stock dividend. The stock dividend was distributed on August 22, 2018 to shareholders of record as of August 14, 2018. All share-based data, including the number of shares outstanding and per share amounts, have been retroactively adjusted to reflect the stock split for all periods presented. Use of Estimates in the Preparation of Financial Statements The preparation of the Unaudited Condensed Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes. Actual results could differ from those estimates. Significant Accounting Policies Our significant accounting policies, other than the adoption of new accounting pronouncements separately documented below, are consistent with those disclosed in Note 1 to our audited financial statements as of and for the year ended February 28, 2019 included in our Form 10-K. 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 accounting standards updates (“ASU”) and concluded that the following recently issued accounting standards apply to us: In February 2016, FASB issued ASU 2016-02, Leases (Topic 842). In addition, in July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases and ASU 2018-11, Leases (Topic 842), Targeted Improvements, which provide an additional (and optional) transition method whereby the new lease standard is applied at the adoption date and recognized as an adjustment to retained earnings. This ASU requires lessees to recognize a right of use asset and lease liability on the balance sheet for all leases, with the exception of short-term leases. The new accounting model for lessors remains largely unchanged, although some changes have been made to align it with the new lessee model and the new revenue recognition guidance. This update also requires companies to include additional disclosures regarding their lessee and lessor agreements. We adopted this standard on March 1, 2019, and it did not have a material impact on our condensed financial position, results of operations or cash flows. Adoption of this ASU resulted in an increase in our assets and liabilities by approximately $52,900 due to the recognition of right of use assets and lease liabilities. See Note 3 – Leases for our lease disclosures. In June 2016, FASB issued ASU No. 2016-13 “Financial Instruments—Credit Losses”, which requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The new standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company adopted ASU No. 2016-13 in the first quarter of fiscal 2020. The adoption of this ASU did not have a material impact on the Company’s condensed financial position, results of operations or cash flows. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820). The new guidance modifies disclosure requirements related to fair value measurement. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Implementation on a prospective or retrospective basis varies by specific disclosure requirement. The Company adopted ASU No. 2018-13 in the first quarter of fiscal 2020. The adoption of this ASU did not have a material impact on the Company’s condensed financial position, results of operations or cash flows. |
Note 2 - INVENTORIES
Note 2 - INVENTORIES | 6 Months Ended |
Aug. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | Note 2 Inventories consist of the following: 2019 August 31, February 28, Current: Book inventory $ 35,819,300 $ 33,494,200 Inventory valuation allowance (199,600 ) (48,600 ) Inventories net - current $ 35,619,700 $ 33,445,600 Noncurrent: Book inventory $ 936,900 $ 904,400 Inventory valuation allowance (278,300 ) (329,400 ) Inventories net - noncurrent $ 658,600 $ 575,000 Book inventory quantities in excess of what we expect will be sold within the normal operating cycle, based on 2.5 years of anticipated sales, are included in non-current inventory. Significant portions of our inventory purchases are concentrated with an England-based publishing company, Usborne Publishing, Ltd. (“Usborne”). Purchases from this company were approximately $6.0 million and $7.9 million for the three months ended August 31, 2019 and 2018, respectively. Total inventory purchases from all suppliers were $8.0 million and $10.6 million for the three months ended August 31, 2019 and 2018, respectively. Purchases from Usborne were approximately $11.9 million and $15.5 million for the six months ended August 31, 2019 and 2018, respectively. Total inventory purchases from all suppliers were $17.2 million and $21.6 million for the six months ended August 31, 2019 and 2018, respectively. |
Note 3 - LEASES
Note 3 - LEASES | 6 Months Ended |
Aug. 31, 2019 | |
ASU 2016-02 Transition [Abstract] | |
Lessee, Operating Lease, Disclosure [Table Text Block] | Note 3 As of March 1, 2019, we adopted ASU 2016-02, Leases (Topic 842) using the modified retrospective method of adoption. We elected to use the transition option that allows us to initially apply the new lease standard at the adoption date and recognize a cumulative-effect adjustment (if any) to the opening balance of retained earnings in the year of adoption. Comparable periods continue to be presented under the guidance of the previous standard, ASC 840. ASC 842 requires lessees to recognize a lease liability and right-of-use asset on the balance sheet for operating leases. For lessors, the new accounting model remains largely the same, although some changes have been made to align it with the new lessee model and the new revenue recognition guidance, ASC 606, Revenue from Contracts with Customers. Our adoption of ASC 842 did not result in any adjustments to retained earnings. We have both lessee and lessor arrangements. Our leases are evaluated at inception or at any subsequent modification. Depending on the terms, leases are classified as either operating or finance leases if we are the lessee, or as operating, sales-type or direct financing leases if we are the lessor, as appropriate under ASC 842. Our lessee arrangement includes a rental agreement where we have exclusive use of dedicated office space in San Diego, California, and qualifies as an operating lease. Our lessor arrangements include two rental agreements for warehouse and office space in Tulsa, Oklahoma, and both qualify as operating leases under ASC 842. In accordance with ASC 842, we have made an accounting policy election to not apply the new standard to lessee arrangements with a term of one year or less and no purchase option that is reasonably certain of exercise. We will continue to account for these short-term arrangements by recognizing payments and expenses as incurred, without recording a lease liability and right-of-use asset. We have also made an accounting policy election for both our lessee and lessor arrangements to combine lease and non-lease components. This election is applied to all of our lease arrangements as our non-lease components are not material and do not result in significant timing differences in the recognition of rental expenses or income. In addition, the Company elected the package of practical expedients upon adoption which permits the Company to not reassess under the new standard the Company’s prior conclusions about lease identification, lease classification and initial direct costs. Operating Leases – Lessee We recognize a lease liability, reported in other liabilities on the condensed balance sheets, for each lease based on the present value of remaining minimum fixed rental payments (which includes payments under any renewal option that we are reasonably certain to exercise), using a discount rate that approximates the rate of interest we would have to pay to borrow on a collateralized basis over a similar term. We also recognize a right-of-use asset, reported in other assets on the condensed balance sheets, for each lease, valued at the lease liability, adjusted for prepaid or accrued rent balances existing at the time of initial recognition. The lease liability and right-of-use asset are reduced over the term of the lease as payments are made and the assets are used. Minimum fixed rental payments are recognized on a straight-line basis over the life of the lease as costs and expenses on our condensed statements of earnings. Variable and short-term rental payments are recognized as costs and expenses as they are incurred. Future minimum rental payments under operating leases with initial terms greater than one year as of August 31, 2019, are as follows: Year ending February 28 (29), 2020 $ 6,400 2021 13,200 2022 13,700 2023 14,200 2024 8,400 Total future minimum rental payments 55,900 Present value discount (5,500 ) Total operating lease liability $ 50,400 The following table provides further information about our operating leases as of and for the six months ended August 31, 2019: Current lease liability $ 13,400 Long-term lease liability $ 37,100 Right-of-use asset $ 50,400 Fixed lease cost $ 6,200 Operating cash flows – operating lease $ 6,200 Remaining lease term (months) 49 Discount rate 4.60 % Operating lease expense was $9,100 for six months ended August 31, 2018 and was recognized in accordance with ASC 840. Operating Leases – Lessor We recognize fixed rental income on a straight-line basis over the life of the lease as revenue on our condensed statements of earnings. Variable rental payments are recognized as revenue in the period in which the changes in facts and circumstances on which the variable lease payments are based occur. Future minimum payments receivable under operating leases with terms greater than one year are estimated as follows: Year ending February 28 (29), 2020 $ 695,900 2021 1,414,300 2022 1,441,900 2023 1,470,000 2024 1,471,700 Thereafter 10,806,500 Total $ 17,300,300 The cost of the leased space was approximately $10,359,900 as of August 31, 2019 and February 28, 2019. The accumulated depreciation associated with the leased assets was $1,413,800 and $1,233,400 as of August 31, 2019 and February 28, 2019, respectively. Both the leased assets and accumulated depreciation are included in property, plant and equipment-net on the condensed balance sheets. |
Note 4 - DEBT
Note 4 - DEBT | 6 Months Ended |
Aug. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Note 4 Debt consists of the following: 2019 August 31, February 28, Line of credit $ 1,056,100 $ - Long-term debt $ 19,304,500 $ 19,776,600 Less current maturities (927,200 ) (945,900 ) Long-term debt, net of current maturities $ 18,377,300 $ 18,830,700 We have a Loan Agreement dated as of March 10, 2016 (as amended the “Loan Agreement”) with MidFirst Bank (“the Bank”) which includes multiple loans. Term Loan #1 is comprised of Tranche A totaling $11.7 million and Tranche B totaling $4.4 million as of August 31, 2019, both with the maturity date of December 1, 2025. Tranche A has a fixed interest rate of 4.23% and interest is payable monthly. For Tranche B, interest is payable monthly at the bank adjusted LIBOR Index plus a tiered pricing rate based on the Company’s Adjusted Funded Debt to EBITDA Ratio (4.42% at August 31, 2019). Term Loan #1 is secured by the primary office, warehouse and land. We also have Term Loan #2 with the Bank totaling $3.2 million as of August 31, 2019, with the maturity date of June 28, 2021, and interest payable monthly at the bank adjusted LIBOR Index plus a tiered pricing rate based on the Company’s Adjusted Funded Debt to EBITDA Ratio (4.42% at August 31, 2019). Term Loan #2 is secured by our secondary warehouse and land. The Loan Agreement also provided a $15.0 million revolving loan (“line of credit”) through August 15, 2020 with interest payable monthly at the bank adjusted LIBOR Index plus a tiered pricing rate based on the Company’s Adjusted Funded Debt to EBITDA Ratio (4.42% at August 31, 2019). Tranche B of Term Loan #1, Term Loan #2 and the line of credit accrue interest at a tiered rate based on our Adjusted Funded Debt to EBITDA Ratio, which is payable monthly. The variable interest pricing tier is as follows: Pricing Tier Adjusted Funded Debt to EBITDA Ratio LIBOR Margin (bps) I >2.00 300.00 II >1.50 but < 275.00 III >1.00 but < 250.00 IV < 225.00 Adjusted Funded Debt is defined as all long-term and short-term bank debt less the outstanding balances of Tranche A and Tranche B Term Loans. EBITDA is defined in the Loan Agreement as earnings before interest expense, income tax expense (benefit) and depreciation and amortization expenses, reduced by rental income. The $15.0 million line of credit is limited to advance rates on eligible receivables and eligible inventory levels. We had $1,056,100 and no borrowings outstanding on our revolving credit agreement at August 31, 2019 and February 28, 2019, respectively. Available credit under the revolving credit agreement was $11,709,600 and $12,439,300 at August 31, 2019 and February 28, 2019, respectively. On June 15, 2018, the Company executed the Eighth Amendment Loan Agreement with the Bank related to our Loan Agreement. The amendment modified the Loan Agreement, extending the termination date until August 15, 2019, reduced the interest rate pricing grid for all floating rate borrowings covered by the Loan Agreement, established a new $3,000,000 advancing term loan to be used for capital expansions to increase daily shipping capacity, released the personal Guaranty of Randall W. White and Carol White, along with other covenant restrictions being lessened. The amendment also included an adjustment to the Adjusted Funded Debt to EBITDA ratio for covenant compliance. On February 7, 2019, the Company executed the Ninth Amendment Loan Agreement with the Bank related to our Loan Agreement. The amendment modified the Loan Agreement, removing the covenant prohibiting the Company from repurchasing its shares, subject to certain conditions. On August 15, 2019, the Company executed the Tenth Amendment Loan Agreement with the Bank related to our Loan Agreement. The amendment modified the Loan Agreement, extending the termination date of the line of credit to August 15, 2020, amends the definition of LIBOR Margin, reduces the frequency of reports to the Lender, amends the Adjusted Funded Debt to EBITDA Ratio and amends the Compliance and Borrowing Base Certificates. The Loan 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 August 15, 2020, 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. As of August 31, 2019, we had no letters of credit outstanding. The Loan Agreement also contains provisions that require us to maintain specified financial ratios; restricts transactions with related parties; prohibits mergers or consolidation; disallows additional debt; and limits the amount of investments, capital expenditures and leasing transactions we can make on a quarterly basis. Additionally, the Loan Agreement places limitations on the amount of dividends that may be distributed and the total value of stock that can be repurchased. The following table reflects aggregate future maturities of long-term debt during the next five fiscal years and thereafter as follows: Year ending February 28 (29), 2020 $ 471,700 2021 988,500 2022 1,038,100 2023 1,087,500 2024 1,139,400 Thereafter 14,579,300 Total $ 19,304,500 |
Note 5 - EARNINGS PER SHARE
Note 5 - EARNINGS PER SHARE | 6 Months Ended |
Aug. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Note 5 Basic earnings per share (“EPS”) is computed by dividing net earnings 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. See Note 1 for additional information regarding the stock split that occurred in fiscal 2019. The computation of weighted average common and common equivalent shares used in the calculation of basic and diluted EPS is shown below. Three Months Ended August 31, Six Months Ended August 31, 2019 2018 2019 2018 Earnings per share: Net earnings applicable to common shareholders $ 1,007,600 $ 1,490,700 $ 2,371,200 $ 3,307,300 Shares: Weighted average shares outstanding-basic 8,312,648 8,185,419 8,248,460 8,181,305 Assumed exercise of options 6,142 7,414 6,466 7,615 Weighted average shares outstanding-diluted 8,318,790 8,192,833 8,254,926 8,188,920 Diluted earnings per share: Basic $ 0.12 $ 0.18 $ 0.29 $ 0.40 Diluted $ 0.12 $ 0.18 $ 0.29 $ 0.40 |
Note 6 - STOCK-BASED COMPENSATI
Note 6 - STOCK-BASED COMPENSATION | 6 Months Ended |
Aug. 31, 2019 | |
Share-based Payment Arrangement, Disclosure [Abstract] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | Note 6 We account for stock-based compensation whereby share-based payment transactions with employees, such as stock options and restricted stock, are measured at estimated fair value at the date of grant. For awards subject to service conditions, compensation expense is recognized over the vesting period on a straight-line basis. Awards subject to performance conditions are attributed separately for each vesting tranche of the award and are recognized ratably from the service inception date to the vesting date for each tranche. Forfeitures are recognized when they occur. The Company has outstanding stock options under the 2002 Employee Incentive Stock Option Plan totaling 10,000 shares. No options have been exercised in the three and six months ended August 31, 2019. All options outstanding at August 31, 2019 expire in December 2019. In July 2018, our shareholders approved the Company’s 2019 Long-Term Incentive Plan (“2019 LTI Plan”). The 2019 LTI Plan establishes up to 600,000 shares of restricted stock which can be granted to certain members of management based on exceeding specified net revenues and pre-tax performance metrics during fiscal years 2019, 2020 and 2021. Restricted shares granted under the 2019 LTI Plan “cliff vest” after five years. The restricted share awards granted under the 2019 LTI Plan contain both service and performance conditions. The Company recognizes share compensation expense only for the portion of the restricted share awards that are considered probable of vesting. Shares are considered granted, and the service inception date begins, when a mutual understanding of the key terms and conditions between the Company and the employee have been established. The fair value of these awards is determined based on the closing price of the shares on the grant date. The probability of restricted share awards granted with future performance conditions is evaluated at each reporting period and compensation expense is adjusted based on the probability assessment. For certain awards that provide discretion to adjust the allocation of the restricted shares, the service-inception date for such awards could precede the grant date as a mutual understanding of the key terms and conditions between the Company and the employee has not yet been established. For awards in which the service-inception date precedes the grant date, compensation cost is accrued beginning on the service-inception date. The Company estimates the award's fair value on each subsequent reporting date, until the grant date, based on the closing market price of the Company’s common stock. On the grant date, the award's fair value is fixed, subject to the remaining performance conditions, and the cumulative amount of previously recognized compensation expense is adjusted to the fair value at the grant date. During fiscal year 2019, the Company granted approximately 308,000 restricted shares under the 2019 LTI Plan with an average grant-date fair value of $9.94 per share. During the second fiscal quarter of 2020, the Company recognized $166,200 of compensation expense associated with the shares granted in fiscal year 2019. The Company recognized compensation expense totaling $332,500 in the first six months of fiscal 2020. The remaining compensation expense for these awards, totaling approximately $2,327,900, will be recognized ratably over the remaining vesting period of approximately 42 months. A summary of compensation expense recognized in connection with restricted share awards follows: Three Months Ended August 31, Six Months Ended August 31, 2019 2018 2019 2018 Share-based compensation expense $ 166,200 $ 70,000 $ 332,500 $ 70,000 |
Note 7 - SHIPPING AND HANDLING
Note 7 - SHIPPING AND HANDLING COSTS | 6 Months Ended |
Aug. 31, 2019 | |
Disclosure Text Block [Abstract] | |
Other Operating Income and Expense [Text Block] | Note 7 We classify shipping and handling costs as operating and selling expenses in the statements of earnings. Shipping and handling costs include postage, freight, handling costs, as well as, shipping materials and supplies. These costs were $3,837,600 and $3,259,900 for the three months ended August 31, 2019 and 2018, respectively. These costs were $8,049,800 and $7,658,900 for the six months ended August 31, 2019 and 2018, respectively. |
Note 8 - BUSINESS SEGMENTS
Note 8 - BUSINESS SEGMENTS | 6 Months Ended |
Aug. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Note 8 We have two reportable segments: Publishing and Usborne Books & More (“UBAM”). These reportable segments 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. Our Publishing segment markets its products to retail accounts, which include book, school supply, toy and gift stores and museums, through commissioned sales representatives, trade and specialty wholesalers and our internal tele-sales group. Our UBAM segment markets its products through a network of independent sales consultants using a combination of internet sales, direct sales, home shows and book fairs. The accounting policies of the segments are the same as those of the rest of the Company. We evaluate segment performance based on earnings before income taxes of the segments, which is defined as segment net revenues reduced by 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” row below. Corporate expenses include the executive department, accounting department, information services department, general office management, warehouse operations and building facilities management. Our assets and liabilities are not allocated on a segment basis. Information by reporting segment for the three and six-month periods ended August 31, 2019 and 2018, are as follows: NET REVENUES Three Months Ended August 31, Six Months Ended August 31, 2019 2018 2019 2018 Publishing $ 2,702,800 $ 2,605,500 $ 5,042,100 $ 4,911,700 UBAM 21,735,200 22,075,500 46,983,300 49,791,600 Total $ 24,438,000 $ 24,681,000 $ 52,025,400 $ 54,703,300 EARNINGS (LOSS) BEFORE INCOME TAXES Three Months Ended August 31, Six Months Ended August 31, 2019 2018 2019 2018 Publishing $ 784,700 $ 636,700 $ 1,420,400 $ 1,143,000 UBAM 3,488,300 4,277,100 7,857,300 9,376,100 Other (2,906,300 ) (2,878,200 ) (6,064,500 ) (5,987,700 ) Total $ 1,366,700 $ 2,035,600 $ 3,213,200 $ 4,531,400 |
Note 9 - FAIR VALUE MEASUREMENT
Note 9 - FAIR VALUE MEASUREMENTS | 6 Months Ended |
Aug. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Note 9 The valuation hierarchy included in U.S. GAAP considers the transparency of inputs used to value assets and liabilities as of the measurement date. 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 term notes payable is estimated by management to approximate $19,490,200 and $19,123,700 at August 31, 2019 and February 28, 2019, 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. |
Note 10 - DEFERRED REVENUES
Note 10 - DEFERRED REVENUES | 6 Months Ended |
Aug. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Note 10 The Company’s UBAM division receives payments on orders in advance of shipment. Any payments received prior to the end of our fiscal quarter that were not shipped as of August 31, 2019 are recorded as deferred revenues on the condensed balance sheet. We received approximately $751,900 at August 31, 2019 in payments for sales orders which were, or will be, shipped out subsequent to the quarter end. Orders that were included in deferred revenues predominantly shipped within the first few days of the next fiscal quarter. |
Note 11 - SUBSEQUENT EVENTS
Note 11 - SUBSEQUENT EVENTS | 6 Months Ended |
Aug. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Note 11 On October 8, 2019, our Board of Directors declared a distribution of $0.05 per share of common stock. This cash distribution will be paid on or about December 5, 2019 to shareholders of record on November 14, 2019. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 6 Months Ended |
Aug. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying Unaudited Condensed Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim condensed financial information and in accordance with the rules and regulations of the Securities and Exchange Commission. The Unaudited Condensed Financial Statements include all adjustments considered necessary for a fair presentation of the financial position and results of operations for the interim periods presented. Such adjustments consist only of normal recurring items, unless otherwise disclosed herein. Accordingly, the Unaudited Condensed Financial Statements do not include all of the information and notes required by GAAP for complete financial statements. However, we believe that the disclosures made are adequate to make the information not misleading. These interim Unaudited Condensed Financial Statements should be read in conjunction with our audited financial statements as of and for the year ended February 28, 2019 included in our Form 10-K. The results of operations for interim periods are not necessarily indicative of the results to be expected for a full year due to the seasonality of our product sales. On July 24, 2018, our Board of Directors authorized a two-for-one stock split in the form of a stock dividend. The stock dividend was distributed on August 22, 2018 to shareholders of record as of August 14, 2018. All share-based data, including the number of shares outstanding and per share amounts, have been retroactively adjusted to reflect the stock split for all periods presented. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates in the Preparation of Financial Statements The preparation of the Unaudited Condensed Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes. Actual results could differ from those estimates. |
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 accounting standards updates (“ASU”) and concluded that the following recently issued accounting standards apply to us: In February 2016, FASB issued ASU 2016-02, Leases (Topic 842). In addition, in July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases and ASU 2018-11, Leases (Topic 842), Targeted Improvements, which provide an additional (and optional) transition method whereby the new lease standard is applied at the adoption date and recognized as an adjustment to retained earnings. This ASU requires lessees to recognize a right of use asset and lease liability on the balance sheet for all leases, with the exception of short-term leases. The new accounting model for lessors remains largely unchanged, although some changes have been made to align it with the new lessee model and the new revenue recognition guidance. This update also requires companies to include additional disclosures regarding their lessee and lessor agreements. We adopted this standard on March 1, 2019, and it did not have a material impact on our condensed financial position, results of operations or cash flows. Adoption of this ASU resulted in an increase in our assets and liabilities by approximately $52,900 due to the recognition of right of use assets and lease liabilities. See Note 3 – Leases for our lease disclosures. In June 2016, FASB issued ASU No. 2016-13 “Financial Instruments—Credit Losses”, which requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The new standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company adopted ASU No. 2016-13 in the first quarter of fiscal 2020. The adoption of this ASU did not have a material impact on the Company’s condensed financial position, results of operations or cash flows. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820). The new guidance modifies disclosure requirements related to fair value measurement. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Implementation on a prospective or retrospective basis varies by specific disclosure requirement. The Company adopted ASU No. 2018-13 in the first quarter of fiscal 2020. The adoption of this ASU did not have a material impact on the Company’s condensed financial position, results of operations or cash flows. |
Note 2 - INVENTORIES (Tables)
Note 2 - INVENTORIES (Tables) | 6 Months Ended |
Aug. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory [Table Text Block] | Inventories consist of the following: 2019 August 31, February 28, Current: Book inventory $ 35,819,300 $ 33,494,200 Inventory valuation allowance (199,600 ) (48,600 ) Inventories net - current $ 35,619,700 $ 33,445,600 Noncurrent: Book inventory $ 936,900 $ 904,400 Inventory valuation allowance (278,300 ) (329,400 ) Inventories net - noncurrent $ 658,600 $ 575,000 |
Note 3 - LEASES (Tables)
Note 3 - LEASES (Tables) | 6 Months Ended |
Aug. 31, 2019 | |
ASU 2016-02 Transition [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Minimum fixed rental payments are recognized on a straight-line basis over the life of the lease as costs and expenses on our condensed statements of earnings. Variable and short-term rental payments are recognized as costs and expenses as they are incurred. Future minimum rental payments under operating leases with initial terms greater than one year as of August 31, 2019, are as follows: Year ending February 28 (29), 2020 $ 6,400 2021 13,200 2022 13,700 2023 14,200 2024 8,400 Total future minimum rental payments 55,900 Present value discount (5,500 ) Total operating lease liability $ 50,400 |
Lease, Cost [Table Text Block] | The following table provides further information about our operating leases as of and for the six months ended August 31, 2019: Current lease liability $ 13,400 Long-term lease liability $ 37,100 Right-of-use asset $ 50,400 Fixed lease cost $ 6,200 Operating cash flows – operating lease $ 6,200 Remaining lease term (months) 49 Discount rate 4.60 % |
Lessor, Operating Lease, Payments to be Received, Maturity [Table Text Block] | Future minimum payments receivable under operating leases with terms greater than one year are estimated as follows: Year ending February 28 (29), 2020 $ 695,900 2021 1,414,300 2022 1,441,900 2023 1,470,000 2024 1,471,700 Thereafter 10,806,500 Total $ 17,300,300 |
Note 4 - DEBT (Tables)
Note 4 - DEBT (Tables) | 6 Months Ended |
Aug. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | Debt consists of the following: 2019 August 31, February 28, Line of credit $ 1,056,100 $ - Long-term debt $ 19,304,500 $ 19,776,600 Less current maturities (927,200 ) (945,900 ) Long-term debt, net of current maturities $ 18,377,300 $ 18,830,700 |
Schedule of Long-term Debt Instruments [Table Text Block] | Tranche B of Term Loan #1, Term Loan #2 and the line of credit accrue interest at a tiered rate based on our Adjusted Funded Debt to EBITDA Ratio, which is payable monthly. The variable interest pricing tier is as follows: Pricing Tier Adjusted Funded Debt to EBITDA Ratio LIBOR Margin (bps) I >2.00 300.00 II >1.50 but < 275.00 III >1.00 but < 250.00 IV < 225.00 |
Schedule of Maturities of Long-term Debt [Table Text Block] | The following table reflects aggregate future maturities of long-term debt during the next five fiscal years and thereafter as follows: Year ending February 28 (29), 2020 $ 471,700 2021 988,500 2022 1,038,100 2023 1,087,500 2024 1,139,400 Thereafter 14,579,300 Total $ 19,304,500 |
Note 5 - EARNINGS PER SHARE (Ta
Note 5 - EARNINGS PER SHARE (Tables) | 6 Months Ended |
Aug. 31, 2019 | |
Earnings Per Share [Abstract] | |
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 EPS is shown below. Three Months Ended August 31, Six Months Ended August 31, 2019 2018 2019 2018 Earnings per share: Net earnings applicable to common shareholders $ 1,007,600 $ 1,490,700 $ 2,371,200 $ 3,307,300 Shares: Weighted average shares outstanding-basic 8,312,648 8,185,419 8,248,460 8,181,305 Assumed exercise of options 6,142 7,414 6,466 7,615 Weighted average shares outstanding-diluted 8,318,790 8,192,833 8,254,926 8,188,920 Diluted earnings per share: Basic $ 0.12 $ 0.18 $ 0.29 $ 0.40 Diluted $ 0.12 $ 0.18 $ 0.29 $ 0.40 |
Note 6 - STOCK-BASED COMPENSA_2
Note 6 - STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Aug. 31, 2019 | |
Share-based Payment Arrangement, Disclosure [Abstract] | |
Share-based Payment Arrangement, Cost by Plan [Table Text Block] | A summary of compensation expense recognized in connection with restricted share awards follows: Three Months Ended August 31, Six Months Ended August 31, 2019 2018 2019 2018 Share-based compensation expense $ 166,200 $ 70,000 $ 332,500 $ 70,000 |
Note 8 - BUSINESS SEGMENTS (Tab
Note 8 - BUSINESS SEGMENTS (Tables) | 6 Months Ended |
Aug. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Information by reporting segment for the three and six-month periods ended August 31, 2019 and 2018, are as follows: NET REVENUES Three Months Ended August 31, Six Months Ended August 31, 2019 2018 2019 2018 Publishing $ 2,702,800 $ 2,605,500 $ 5,042,100 $ 4,911,700 UBAM 21,735,200 22,075,500 46,983,300 49,791,600 Total $ 24,438,000 $ 24,681,000 $ 52,025,400 $ 54,703,300 EARNINGS (LOSS) BEFORE INCOME TAXES Three Months Ended August 31, Six Months Ended August 31, 2019 2018 2019 2018 Publishing $ 784,700 $ 636,700 $ 1,420,400 $ 1,143,000 UBAM 3,488,300 4,277,100 7,857,300 9,376,100 Other (2,906,300 ) (2,878,200 ) (6,064,500 ) (5,987,700 ) Total $ 1,366,700 $ 2,035,600 $ 3,213,200 $ 4,531,400 |
Note 2 - INVENTORIES (Details)
Note 2 - INVENTORIES (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | |
Note 2 - INVENTORIES (Details) [Line Items] | ||||
Payments for Purchase of Other Assets | $ 8 | $ 10.6 | $ 17.2 | $ 21.6 |
England Based Publishing Company [Member] | ||||
Note 2 - INVENTORIES (Details) [Line Items] | ||||
Payments for Purchase of Other Assets | $ 6 | $ 7.9 | $ 11.9 | $ 15.5 |
Note 2 - INVENTORIES (Details)
Note 2 - INVENTORIES (Details) - Schedule of Inventory, Noncurrent - USD ($) | Aug. 31, 2019 | Feb. 28, 2019 |
Inventory Current [Member] | ||
Current: | ||
Book inventory | $ 35,819,300 | $ 33,494,200 |
Inventory valuation allowance | (199,600) | (48,600) |
Inventories net | 35,619,700 | 33,445,600 |
Inventory, Noncurrent [Member] | ||
Current: | ||
Book inventory | 936,900 | 904,400 |
Inventory valuation allowance | (278,300) | (329,400) |
Inventories net | $ 658,600 | $ 575,000 |
Note 3 - LEASES (Details)
Note 3 - LEASES (Details) | 6 Months Ended | |
Aug. 31, 2019USD ($) | Feb. 28, 2019USD ($) | |
ASU 2016-02 Transition [Abstract] | ||
Number of Rental Agreements | 2 | |
Operating Leases, Rent Expense | $ 9,100 | |
Property Subject to or Available for Operating Lease, Net | 10,359,900 | |
Property Subject to or Available for Operating Lease, Accumulated Depreciation | $ 1,413,800 | $ 1,233,400 |
Note 3 - LEASES (Details) - Sch
Note 3 - LEASES (Details) - Schedule of Future Minimum Rental Payments for Operating Leases | Aug. 31, 2019USD ($) |
Schedule of Future Minimum Rental Payments for Operating Leases [Abstract] | |
2020 | $ 6,400 |
2021 | 13,200 |
2022 | 13,700 |
2023 | 14,200 |
2024 | 8,400 |
Total future minimum rental payments | 55,900 |
Present value discount | (5,500) |
Total operating lease liability | $ 50,400 |
Note 3 - LEASES (Details) - Lea
Note 3 - LEASES (Details) - Lease, Cost | 6 Months Ended |
Aug. 31, 2019USD ($) | |
Lease, Cost [Abstract] | |
Current lease liability | $ 13,400 |
Long-term lease liability | 37,100 |
Right-of-use asset | 50,400 |
Fixed lease cost | 6,200 |
Operating cash flows – operating lease | $ 6,200 |
Weighted average remaining lease term (months) | 49 months |
Weighted average discount rate | 4.60% |
Note 3 - LEASES (Details) - Les
Note 3 - LEASES (Details) - Lessor, Operating Lease, Payments to be Received, Maturity | Aug. 31, 2019USD ($) |
Lessor, Operating Lease, Payments to be Received, Maturity [Abstract] | |
2020 | $ 695,900 |
2021 | 1,414,300 |
2022 | 1,441,900 |
2023 | 1,470,000 |
2024 | 1,471,700 |
Thereafter | 10,806,500 |
Total | $ 17,300,300 |
Note 4 - DEBT (Details)
Note 4 - DEBT (Details) - USD ($) | Mar. 10, 2016 | Aug. 31, 2019 | Feb. 28, 2019 | Jun. 15, 2018 |
Note 4 - DEBT (Details) [Line Items] | ||||
Line of Credit, Current | $ 1,056,100 | $ 0 | ||
Line of Credit [Member] | ||||
Note 4 - DEBT (Details) [Line Items] | ||||
Line of Credit, Current | 1,056,100 | |||
Line of Credit Facility, Remaining Borrowing Capacity | 11,709,600 | $ 12,439,300 | ||
Line of Credit [Member] | Term Loan # 2 [Member] | ||||
Note 4 - DEBT (Details) [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 15,000,000 | |||
Notes Payable to Banks [Member] | Tranche A [Member] | ||||
Note 4 - DEBT (Details) [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 11,700,000 | |||
Line of Credit Facility, Expiration Date | Aug. 15, 2020 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.23% | |||
Debt Instrument, Payment Terms | interest is payable monthly | |||
Notes Payable to Banks [Member] | Tranche B [Member] | ||||
Note 4 - DEBT (Details) [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 4,400,000 | |||
Line of Credit Facility, Expiration Date | Dec. 1, 2025 | |||
Debt Instrument, Payment Terms | interest payable monthly at the bank adjusted LIBOR Index plus a tiered pricing rate based on the Company’s Adjusted Funded Debt to EBITDA Ratio | |||
Debt Instrument, Interest Rate During Period | 4.42% | |||
Notes Payable to Banks [Member] | Term Loan # 2 [Member] | ||||
Note 4 - DEBT (Details) [Line Items] | ||||
Debt Instrument, Face Amount | $ 3,200,000 | |||
Debt Instrument, Maturity Date | Jun. 28, 2021 | |||
Notes Payable to Banks [Member] | Term Loan # 1 [Member] | ||||
Note 4 - DEBT (Details) [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 3,000,000 | |||
London Interbank Offered Rate (LIBOR) [Member] | Line of Credit [Member] | Term Loan # 2 [Member] | ||||
Note 4 - DEBT (Details) [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 15,000,000 | |||
Line of Credit Facility, Interest Rate at Period End | 4.42% | |||
London Interbank Offered Rate (LIBOR) [Member] | Notes Payable to Banks [Member] | Term Loan # 2 [Member] | ||||
Note 4 - DEBT (Details) [Line Items] | ||||
Debt Instrument, Interest Rate During Period | 4.42% |
Note 4 - DEBT (Details) - Sched
Note 4 - DEBT (Details) - Schedule of Debt - USD ($) | Aug. 31, 2019 | Feb. 28, 2019 |
Schedule of Debt [Abstract] | ||
Line of credit | $ 1,056,100 | $ 0 |
Long-term debt | 19,304,500 | 19,776,600 |
Less current maturities | (927,200) | (945,900) |
Long-term debt, net of current maturities | $ 18,377,300 | $ 18,830,700 |
Note 4 - DEBT (Details) - Sch_2
Note 4 - DEBT (Details) - Schedule of Long-term Debt Instruments | 6 Months Ended |
Aug. 31, 2019 | |
Pricing Tier I [Member] | |
Debt Instrument [Line Items] | |
Adjusted Funded Debt to EBITDA Ratio | >2.00 |
Pricing Tier II [Member] | |
Debt Instrument [Line Items] | |
Adjusted Funded Debt to EBITDA Ratio | >1.50 but <2.00 |
Pricing Tier III [Member] | |
Debt Instrument [Line Items] | |
Adjusted Funded Debt to EBITDA Ratio | >1.00 but <1.50 |
Pricing Tier IV [Member] | |
Debt Instrument [Line Items] | |
Adjusted Funded Debt to EBITDA Ratio | <1.00 |
London Interbank Offered Rate (LIBOR) [Member] | Pricing Tier I [Member] | |
Debt Instrument [Line Items] | |
LIBOR Margin | 300.00% |
London Interbank Offered Rate (LIBOR) [Member] | Pricing Tier II [Member] | |
Debt Instrument [Line Items] | |
LIBOR Margin | 275.00% |
London Interbank Offered Rate (LIBOR) [Member] | Pricing Tier III [Member] | |
Debt Instrument [Line Items] | |
LIBOR Margin | 250.00% |
London Interbank Offered Rate (LIBOR) [Member] | Pricing Tier IV [Member] | |
Debt Instrument [Line Items] | |
LIBOR Margin | 225.00% |
Note 4 - DEBT (Details) - Sch_3
Note 4 - DEBT (Details) - Schedule of Maturities of Long-term Debt - USD ($) | Aug. 31, 2019 | Feb. 28, 2019 |
Schedule of Maturities of Long-term Debt [Abstract] | ||
2020 | $ 471,700 | |
2021 | 988,500 | |
2022 | 1,038,100 | |
2023 | 1,087,500 | |
2024 | 1,139,400 | |
Thereafter | 14,579,300 | |
Total | $ 19,304,500 | $ 19,776,600 |
Note 5 - EARNINGS PER SHARE (De
Note 5 - EARNINGS PER SHARE (Details) - Schedule of Earnings Per Share, Basic and Diluted - USD ($) | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | |
Earnings per share: | ||||
Net earnings applicable to common shareholders (in Dollars) | $ 1,007,600 | $ 1,490,700 | $ 2,371,200 | $ 3,307,300 |
Shares: | ||||
Weighted average shares outstanding-basic | 8,312,648 | 8,185,419 | 8,248,460 | 8,181,305 |
Assumed exercise of options | 6,142 | 7,414 | 6,466 | 7,615 |
Weighted average shares outstanding-diluted | 8,318,790 | 8,192,833 | 8,254,926 | 8,188,920 |
Diluted earnings per share: | ||||
Basic (in Dollars per share) | $ 0.12 | $ 0.18 | $ 0.29 | $ 0.40 |
Diluted (in Dollars per share) | $ 0.12 | $ 0.18 | $ 0.29 | $ 0.40 |
Note 6 - STOCK-BASED COMPENSA_3
Note 6 - STOCK-BASED COMPENSATION (Details) | 3 Months Ended | 6 Months Ended |
Aug. 31, 2019USD ($)$ / sharesshares | Aug. 31, 2019USD ($)$ / sharesshares | |
2002 Plan [Member] | ||
Note 6 - STOCK-BASED COMPENSATION (Details) [Line Items] | ||
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Outstanding | 10,000 | 10,000 |
The 2019 Long-term Incentive Plan [Member] | ||
Note 6 - STOCK-BASED COMPENSATION (Details) [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 600,000 | 600,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | |
Shares Issued, Shares, Share-based Payment Arrangement, before Forfeiture | 308,000 | |
Shares Issued, Price Per Share | $ / shares | $ 9.94 | $ 9.94 |
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | $ | $ 166,200 | $ 332,500 |
Share-based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount | $ | $ 2,327,900 | $ 2,327,900 |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 42 months |
Note 6 - STOCK-BASED COMPENSA_4
Note 6 - STOCK-BASED COMPENSATION (Details) - Share-based Payment Arrangement, Cost by Plan - USD ($) | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | |
Share-based Payment Arrangement, Cost by Plan [Abstract] | ||||
Share-based compensation expense | $ 166,200 | $ 70,000 | $ 332,500 | $ 70,000 |
Note 7 - SHIPPING AND HANDLIN_2
Note 7 - SHIPPING AND HANDLING COSTS (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | |
Shipping and Handling [Member] | ||||
Note 7 - SHIPPING AND HANDLING COSTS (Details) [Line Items] | ||||
Cost of Goods and Services Sold | $ 3,837,600 | $ 3,259,900 | $ 8,049,800 | $ 7,658,900 |
Note 8 - BUSINESS SEGMENTS (Det
Note 8 - BUSINESS SEGMENTS (Details) | 6 Months Ended |
Aug. 31, 2019 | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 2 |
Note 8 - BUSINESS SEGMENTS (D_2
Note 8 - BUSINESS SEGMENTS (Details) - Schedule of Information by Industry Segment - USD ($) | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | |
Segment Reporting Information [Line Items] | ||||
Net Revenues | $ 24,438,000 | $ 24,681,000 | $ 52,025,400 | $ 54,703,300 |
Earnings (Loss) Before Income Taxes | 1,366,700 | 2,035,600 | 3,213,200 | 4,531,400 |
Publishing [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Revenues | 2,702,800 | 2,605,500 | 5,042,100 | 4,911,700 |
Earnings (Loss) Before Income Taxes | 784,700 | 636,700 | 1,420,400 | 1,143,000 |
Usborne Books and More [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Revenues | 21,735,200 | 22,075,500 | 46,983,300 | 49,791,600 |
Earnings (Loss) Before Income Taxes | 3,488,300 | 4,277,100 | 7,857,300 | 9,376,100 |
Other Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Earnings (Loss) Before Income Taxes | $ (2,906,300) | $ (2,878,200) | $ (6,064,500) | $ (5,987,700) |
Note 9 - FAIR VALUE MEASUREME_2
Note 9 - FAIR VALUE MEASUREMENTS (Details) - USD ($) | Aug. 31, 2019 | Feb. 28, 2019 |
Fair Value, Inputs, Level 2 [Member] | ||
Note 9 - FAIR VALUE MEASUREMENTS (Details) [Line Items] | ||
Long-term Debt, Fair Value | $ 19,490,200 | $ 19,123,700 |
Note 10 - DEFERRED REVENUES (De
Note 10 - DEFERRED REVENUES (Details) | 6 Months Ended |
Aug. 31, 2019USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Deferred Revenue, Additions | $ 751,900 |
Note 11 - SUBSEQUENT EVENTS (De
Note 11 - SUBSEQUENT EVENTS (Details) - Subsequent Event [Member] | Oct. 08, 2019$ / shares |
Note 11 - SUBSEQUENT EVENTS (Details) [Line Items] | |
Dividends Payable, Date Declared | Oct. 8, 2019 |
Common Stock, Dividends, Per Share, Declared | $ 0.05 |
Dividends Payable, Date of Record | Nov. 14, 2019 |
Dividends Payable, Date to be Paid | Dec. 5, 2019 |