Document_and_Entity_Informatio
Document and Entity Information (USD $) | 3 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Apr. 30, 2014 | Jun. 06, 2014 | Jul. 31, 2013 |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'VIRCO MFG CORPORATION | ' | ' |
Entity Central Index Key | '0000751365 | ' | ' |
Document Type | '10-Q | ' | ' |
Document Period End Date | 30-Apr-14 | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'Q1 | ' | ' |
Current Fiscal Year End Date | '--01-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Public Float | ' | ' | $36 |
Entity Common Stock, Shares Outstanding | ' | 14,718,414 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Apr. 30, 2014 | Jan. 31, 2014 | Apr. 30, 2013 |
In Thousands, unless otherwise specified | |||
Current assets: | ' | ' | ' |
Cash | $1,471 | $1,051 | $1,174 |
Trade accounts receivables, net | 8,914 | 8,468 | 7,966 |
Other receivables | 75 | 52 | 76 |
Income tax receivable | 311 | 290 | 272 |
Inventories: | ' | ' | ' |
Finished goods, net | 13,175 | 7,237 | 10,365 |
Work in process, net | 18,775 | 11,116 | 18,105 |
Raw materials and supplies, net | 9,642 | 9,427 | 10,450 |
Total inventories | 41,592 | 27,780 | 38,920 |
Deferred Tax Assets, Net, Current | 203 | 203 | 0 |
Prepaid expenses and other current assets | 1,924 | 1,795 | 1,998 |
Total current assets | 54,490 | 39,639 | 50,406 |
Property, plant and equipment: | ' | ' | ' |
Land | 1,671 | 1,671 | 1,671 |
Land improvements | 1,193 | 1,185 | 1,213 |
Buildings and building improvements | 47,290 | 47,271 | 47,399 |
Machinery and equipment | 113,948 | 115,667 | 117,766 |
Leasehold improvements | 2,177 | 2,328 | 2,452 |
Total property, plant and equipment | 166,279 | 168,122 | 170,501 |
Less accumulated depreciation and amortization | 130,376 | 131,817 | 133,832 |
Net property, plant and equipment | 35,903 | 36,305 | 36,669 |
Deferred tax assets, net | 611 | 611 | 1,477 |
Other assets | 6,851 | 6,789 | 6,784 |
Total assets | 97,855 | 83,344 | 95,336 |
Current liabilities: | ' | ' | ' |
Accounts payable | 16,640 | 12,355 | 13,087 |
Accrued compensation and employee benefits | 3,865 | 3,594 | 3,636 |
Current portion of long-term debt | 14,586 | 2,248 | 12,932 |
Deferred tax liabilities | 0 | 0 | 572 |
Other accrued liabilities | 5,348 | 4,459 | 5,162 |
Total current liabilities | 40,439 | 22,656 | 35,389 |
Non-current liabilities: | ' | ' | ' |
Accrued self-insurance retention | 2,539 | 2,025 | 3,122 |
Accrued pension expenses | 23,538 | 23,951 | 26,074 |
Income tax payable | 44 | 69 | 105 |
Long-term debt, less current portion | 6,000 | 6,000 | 6,000 |
Other accrued liabilities | 1,090 | 1,038 | 1,529 |
Total non-current liabilities | 33,211 | 33,083 | 36,830 |
Commitments and contingencies | ' | ' | ' |
Preferred stock: | ' | ' | ' |
Authorized 3,000,000 shares, $.01 par value; none issued or outstanding | 0 | 0 | 0 |
Common stock: | ' | ' | ' |
Authorized 25,000,000 shares, $.01 par value; issued and outstanding 14,718,414 shares at 4/30/2014 and at 1/31/2014 and 14,550,371 shares at 04/30/2013 | 147 | 147 | 146 |
Additional paid-in capital | 116,111 | 115,978 | 115,812 |
Accumulated deficit | -78,394 | -74,540 | -77,257 |
Accumulated other comprehensive loss | -13,659 | -13,980 | -15,584 |
Total stockholders’ equity | 24,205 | 27,605 | 23,117 |
Total liabilities and stockholders’ equity | $97,855 | $83,344 | $95,336 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Apr. 30, 2014 | Apr. 30, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 3,000,000 | 3,000,000 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 14,718,414 | 14,550,371 |
Common stock, shares outstanding | 14,718,414 | 14,550,371 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Apr. 30, 2014 | Apr. 30, 2013 | ||
Income Statement [Abstract] | ' | ' | ||
Net sales | $23,530 | $19,890 | ||
Costs of goods sold | 15,353 | 13,481 | ||
Gross profit | 8,177 | 6,409 | ||
Selling, general and administrative expenses | 11,722 | 10,565 | ||
Interest expense, net | 329 | 328 | ||
Income (loss) before income taxes | -3,874 | -4,484 | ||
Income tax expense (benefit) | -19 | -37 | ||
Net income (loss) | ($3,855) | ($4,447) | ||
Net income (loss) per common share: | ' | ' | ||
Basic | ($0.26) | [1] | ($0.31) | [1] |
Diluted | ($0.26) | [1] | ($0.31) | [1] |
Weighted average shares outstanding: | ' | ' | ||
Basic | 14,718 | [2] | 14,441 | [2] |
Diluted | 14,718 | 14,441 | ||
[1] | Net loss per share was calculated based on basic shares outstanding due to the anti-dilutive effect on the inclusion of common stock equivalent shares. | |||
[2] | Certain exercisable and non-exercisable stock options were not included in the computation of diluted net loss per share at April 30, 2014 and 2013, because their inclusion would have been anti-dilutive. The number of stock options outstanding, which met this anti-dilutive criterion for the three months ended April 30, 2014 and 2013, was 266,000 and 203,000, respectively. |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Loss (USD $) | 3 Months Ended | |
Apr. 30, 2014 | Apr. 30, 2013 | |
Statement of Comprehensive Income [Abstract] | ' | ' |
Net income (loss) | ($3,855,000) | ($4,447,000) |
Other comprehensive income (loss) : | ' | ' |
Pension adjustments, net of tax | 321,000 | 402,000 |
Comprehensive income (loss) | ($3,534,000) | ($4,045,000) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 30, 2014 | Apr. 30, 2013 |
Operating activities | ' | ' |
Net income (loss) | ($3,855) | ($4,447) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' |
Depreciation and amortization | 1,071 | 1,016 |
Provision for doubtful accounts | 20 | 15 |
(Gain) loss on sale of property, plant and equipment | 0 | -5 |
Deferred income taxes | 0 | -37 |
Stock-based compensation | 133 | 142 |
Pension settlement | 0 | 0 |
Changes in operating assets and liabilities: | ' | ' |
Trade accounts receivable | -438 | 853 |
Other receivables | -23 | 32 |
Inventories | -13,812 | -13,603 |
Income taxes | -46 | -13 |
Prepaid expenses and other assets | -191 | -275 |
Accounts payable and accrued liabilities | 5,890 | 2,553 |
Net cash provided by (used in) operating activities | -11,251 | -13,769 |
Investing activities | ' | ' |
Capital expenditures | -667 | -800 |
Proceeds from sale of property, plant and equipment | 0 | 11 |
Net investment in life insurance | 0 | 0 |
Net cash provided by (used in) investing activities | -667 | -789 |
Financing activities | ' | ' |
Proceeds from long-term debt | 20,586 | 18,932 |
Repayment of long-term debt | -8,248 | -4,053 |
Common stock repurchased | 0 | 0 |
Cash dividend paid | 0 | 0 |
Net cash provided by (used in) financing activities | 12,338 | 14,879 |
Net increase (decrease) in cash | 420 | 321 |
Cash at beginning of year | 1,051 | 853 |
Cash at end of year | $1,471 | $1,174 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Apr. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended April 30, 2014, are not necessarily indicative of the results that may be expected for the fiscal year ending January 31, 2015. The balance sheet at January 31, 2014, has been derived from the audited financial statements at that date, but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2014 (“Form 10-K”). All references to the “Company” refer to Virco Mfg. Corporation and its subsidiaries. |
Correction_of_Immaterial_Error
Correction of Immaterial Errors | 3 Months Ended | ||||||||||||||||||||||||
Apr. 30, 2014 | |||||||||||||||||||||||||
Accounting Changes and Error Corrections [Abstract] | ' | ||||||||||||||||||||||||
Correction of Immaterial Errors | ' | ||||||||||||||||||||||||
Correction of Immaterial Errors | |||||||||||||||||||||||||
Subsequent to the year ended January 31, 2014, the Company identified certain errors in the condensed consolidated balance sheets and consolidated statements of comprehensive income (loss) for the quarters ended April 30, July 31 and October 31, 2013. The Company previously recorded its quarterly net periodic pension cost as an increase to accrued pension expenses, when a portion of the net periodic pension cost attributed to the recognized net actuarial loss or (gain) should have been recorded as a decrease in the Company’s accumulated other comprehensive loss. These errors have no impact on the amounts previously reported in the Company’s statements of operations or statements of cash flows. Further, these errors have no impact on its consolidated financial statements as of and for the year ended January 31, 2014. | |||||||||||||||||||||||||
Management has evaluated the materiality of these errors quantitatively and qualitatively and has concluded that the corrections of these errors are immaterial to the condensed consolidated balance sheets, consolidated statements of comprehensive income (loss), and the financial statements as a whole. Accordingly, the Company has corrected the accompanying condensed consolidated balance sheet and consolidated statement of comprehensive income (loss) for the three months ended April 30, 2013, and it intends to revise its condensed consolidated balance sheets and consolidated statements of comprehensive income (loss) for the quarters ended July 31 and October 31, 2013 through subsequent periodic filings. The effect of recording immaterial corrections in the condensed consolidated balance sheets and consolidated statements of comprehensive income (loss) for the quarters ended April 30, July 31 and October 31, 2013 are as follows: | |||||||||||||||||||||||||
For the Quarter Ended April 30, 2013 | For the Quarter Ended July 31, 2013 | For the Quarter Ended October 31, 2013 | |||||||||||||||||||||||
(in thousands) | As Previously Reported | As Corrected | As Previously Reported | As Corrected | As Previously Reported | As Corrected | |||||||||||||||||||
Accrued pension expenses | $ | 26,476 | $ | 26,074 | $ | 26,567 | $ | 25,763 | $ | 26,398 | $ | 25,192 | |||||||||||||
Total stockholder’s equity | 22,715 | 23,117 | 28,901 | 29,705 | 33,181 | 34,387 | |||||||||||||||||||
Net income (loss) | (4,447 | ) | (4,447 | ) | 6,210 | 6,210 | 3,408 | 3,408 | |||||||||||||||||
Comprehensive income (loss) | (4,447 | ) | (4,045 | ) | 6,210 | 6,612 | 4,208 | 4,610 | |||||||||||||||||
Impact for period-to-date comprehensive income (loss) | (4,447 | ) | (4,045 | ) | 1,763 | 2,567 | 5,971 | 7,177 | |||||||||||||||||
Seasonality
Seasonality | 3 Months Ended |
Apr. 30, 2014 | |
Seasonality [Abstract] | ' |
Seasonality | ' |
Seasonality | |
The market for educational furniture is marked by extreme seasonality, with approximately 50% of the Company’s total sales typically occurring from June to August each year, which is the Company’s peak season. Hence, the Company typically builds and carries significant amounts of inventory during and in anticipation of this peak summer season to facilitate the rapid delivery requirements of customers in the educational market. This requires a large up-front investment in inventory, labor, storage and related costs as inventory is built in anticipation of peak sales during the summer months. As the capital required for this build-up generally exceeds cash available from operations, the Company has historically relied on third-party bank financing to meet cash flow requirements during the build-up period immediately preceding the peak season. In addition, the Company typically is faced with a large balance of accounts receivable during the peak season. This occurs for two primary reasons. First, accounts receivable balances typically increase during the peak season as shipments of products increase. Second, many customers during this period are government institutions, which tend to pay accounts receivable more slowly than commercial customers. | |
The Company’s working capital requirements during and in anticipation of the peak summer season require management to make estimates and judgments that affect assets, liabilities, revenues and expenses, and related contingent assets and liabilities. On an ongoing basis, management evaluates its estimates, including those related to market demand, labor costs, and stocking inventory. |
New_Accounting_Standards
New Accounting Standards | 3 Months Ended |
Apr. 30, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
New Accounting Standards | ' |
New Accounting Standards | |
In July 2013, the FASB issued accounting guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, or similar tax loss, or a tax carryforward exists. The Company adopted the guidance effective February 1, 2014, the beginning of the Company's 2014 fiscal year. The guidance did not have a material impact on the Company's financial statements. | |
In April 2014, the FASB issued accounting guidance which changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. The guidance will be effective for fiscal years beginning on or after January 31, 2015 and interim periods within those annual periods with early adoption allowed. The Company does not expect the adoption to have a material impact on its financial statements. | |
In May 2014, the FASB issued a comprehensive new revenue recognition standard which will supersede previous existing revenue recognition guidance. The standard creates a five-step model for revenue recognition that requires companies to exercise judgment when considering contract terms and relevant facts and circumstances. The five-step model includes (1) identifying the contract, (2) identifying the separate performance obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations and (5) recognizing revenue when each performance obligation has been satisfied. The standard also requires expanded disclosures surrounding revenue recognition. The standard is effective for fiscal periods beginning after December 15, 2016 and allows for either full retrospective or modified retrospective adoption. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements. |
Inventories
Inventories | 3 Months Ended |
Apr. 30, 2014 | |
Inventory Disclosure [Abstract] | ' |
Inventories | ' |
Inventories | |
Inventories primarily consist of raw materials, work in progress, and finished goods of manufactured products. In addition, the Company maintains an inventory of finished goods purchased for resale. Inventories are stated at lower of cost or market and consist of materials, labor, and overhead. The Company determines the cost of inventory by the first-in, first-out method. The value of inventory includes any related production overhead costs incurred in bringing the inventory to its present location and condition. The Company records the cost of excess capacity as a period expense, not as a component of capitalized inventory valuation. | |
Management continually monitors production costs, material costs and inventory levels to determine that interim inventories are fairly stated. |
Debt
Debt | 3 Months Ended | |||||||||||
Apr. 30, 2014 | ||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||
Debt | ' | |||||||||||
Debt | ||||||||||||
Outstanding balances (in thousands) for the Company’s long-term debt were as follows: | ||||||||||||
4/30/14 | 1/31/14 | 4/30/13 | ||||||||||
(in thousands) | ||||||||||||
Revolving credit line | 20,586 | 8,248 | 18,932 | |||||||||
Other | — | — | — | |||||||||
Total debt | 20,586 | 8,248 | 18,932 | |||||||||
Less current portion | 14,586 | 2,248 | 12,932 | |||||||||
Non-current portion | $ | 6,000 | $ | 6,000 | $ | 6,000 | ||||||
On December 22, 2011 (the Closing Date), the Company and Virco Inc., a wholly owned subsidiary of the Company (Virco and, together with the Company, the Borrowers) entered into a Revolving Credit and Security Agreement (the Credit Agreement) with PNC Bank, National Association, as administrative agent and lender (PNC). On June 15, 2012, the Borrowers entered into Amendment No. 1 (Amendment No. 1) to the Credit Agreement which, among other things, increased the borrowing availability thereunder by $3,000,000 from $6,000,000 to $9,000,000 for the period from May 1 through July 14 of each year. On July 27, 2012, the Borrowers entered into Amendment No. 2 (Amendment No. 2) to the Credit Agreement which, among other things, reduced the minimum EBITDA financial covenant contained therein for the five consecutive months ending June 2012 from $1,600,000 to $300,000. On September 12, 2012, the Borrowers entered into Amendment No. 3 (Amendment No. 3) to the Credit Agreement which, among other things, modified the minimum EBITDA covenant for the balance of the fiscal year. On December 6, 2012, the Borrowers entered into Amendment No. 4 (Amendment No. 4) to the Credit Agreement which, among other things, waived the violation of the minimum EBITDA and minimum tangible net worth covenants at October 31, 2012 and eliminated the minimum EBITDA covenant at November 30, 2012. On March 1, 2013, the Borrowers entered into Amendment No. 5 (Amendment No. 5) to the Credit Agreement, which among other things modified the minimum tangible net worth covenant for the periods from January 31, 2013 to January 31, 2014, modified the minimum EBIDTA covenant for certain periods to January 31, 2014 and waived the violation of the minimum EBITDA covenant for the eleven consecutive fiscal month period ending December 31, 2012. On January 9, 2014, the Borrowers entered into Amendment No. 6 (Amendment No. 6) to the Credit Agreement, which, among other things, amended the definition of “Peak Season” and increased the peak season borrowing capacity. On April 15, 2014, the Borrowers entered into Amendment No. 7 (Amendment No. 7) to the Credit Agreement, which, among other things, extended the maturity date of the Credit Agreement for three years until December 22, 2017, reduced the maximum availability under the Credit Agreement by 10,000,000 from $60,000,000 to $50,000,000, waived the violation of the minimum EBITDA covenant at January 31, 2014, waived the violation of the fixed charge coverage ratio covenant at January 31, 2014, included levels for the minimum tangible net worth financial covenant and a minimum EBITDA financial covenant for fiscal year 2014 and the minimum fixed charge coverage ratio until the maturity date of the Credit Agreement. | ||||||||||||
The Credit Agreement, as amended, provides the Borrowers with a secured revolving line of credit (the Revolving Credit Facility) of up to $50,000,000, with seasonal adjustments to the credit limit and subject to borrowing base limitations, and includes a sub-limit of up to $3,000,000 for issuances of letters of credit. The Revolving Credit Facility is an asset-based line of credit that is subject to a borrowing base limitation and generally provides for advances of up to 85% of eligible accounts receivable, plus a percentage equal to the lesser of 60% of the value of eligible inventory or 85% of the liquidation value of eligible inventory, plus an amount ranging from $8,000,000 to $14,000,000 from January 1 through July 31 of each year, minus undrawn amounts of letters of credit and reserves. The Revolving Credit Facility is secured by substantially all of the Borrowers' personal property and certain of the Borrowers' real property. The principal amount outstanding under the Credit Agreement and any accrued and unpaid interest is due no later than December 22, 2017, and the Revolving Credit Facility is subject to certain prepayment penalties upon earlier termination of the Revolving Credit Facility. Prior to the maturity date, principal amounts outstanding under the Credit Agreement may be repaid and reborrowed at the option of the Borrowers without premium or penalty, subject to borrowing base limitations, seasonal adjustments and certain other conditions. | ||||||||||||
The Revolving Credit Facility bears interest, at the Borrowers' option, at either the Alternate Base Rate (as defined in the Credit Agreement) or the Eurodollar Currency Rate (as defined in the Credit Agreement), in each case plus an applicable margin. The applicable margin for Alternate Base Rate loans is a percentage within a range of 0.75% to 1.75%, and the applicable margin for Eurodollar Currency Rate loans is a percentage within a range of 1.75% to 2.75%,, in each case based on the EBITDA of the Borrowers at the end of each fiscal quarter, and may be increased at PNC's option by 2.0% during the continuance of an event of default. Accrued interest with respect to principal amounts outstanding under the Credit Agreement is payable in arrears on a monthly basis for Alternative Base Rate loans, and at the end of the applicable interest period but at most every three months for Eurodollar Currency Rate loans. | ||||||||||||
The Credit Agreement contains a covenant that forbids the Company from issuing dividends or making payments with respect to the Company's capital stock, and contains numerous other covenants that limit under certain circumstances the ability of the Borrowers and their subsidiaries to, among other things, merge with or acquire other entities, incur new liens, incur additional indebtedness, repurchase stock, sell assets outside of the ordinary course of business, enter into transactions with affiliates, or substantially change the general nature of the business of the Borrowers, taken as a whole. The Credit Agreement also requires the Company to maintain the following financial maintenance covenants: (1) a minimum tangible net worth amount, (2) a minimum fixed charge coverage ratio, and (3) a minimum EBITDA amount, in each case as of the end of the relevant monthly, quarterly or annual measurement period. As of April 30, 2014 the Credit Agreement required the Company to maintain: (1) a minimum tangible net worth of at least $19,771,000 for the fiscal quarter ending April 30, 2014, (2) a minimum fixed charge coverage ratio of at least 1.00 to 1.00 for the four consecutive fiscal quarters ending January 31, 2015, and (3) a minimum EBITDA amount of $(4,938,000) for the three months ended April 30, 2014 and $5,512,000 for the twelve consecutive fiscal months ending January 31, 2015. | ||||||||||||
In addition, the Credit Agreement contains a clean down provision that requires the Company to reduce borrowings under the line to less than $6,000,000 for a period of 60 consecutive days each fiscal year. The Company believes that normal operating cash flow will allow it to meet the clean down requirement with no adverse impact on the Company's liquidity. The Company was in compliance with its covenants at April 30, 2014. | ||||||||||||
Events of default (subject to certain cure periods and other limitations) under the Credit Agreement include, but are not limited to, (i) non-payment of principal, interest or other amounts due under the Credit Agreement, (ii) the violation of terms, covenants, representations or warranties in the Credit Agreement or related loan documents, (iii) any event of default under agreements governing certain indebtedness of the Borrowers and certain defaults by the Borrowers under other agreements that would materially adversely affect the Borrowers, (iv) certain events of bankruptcy, insolvency or liquidation involving the Borrowers, (v) judgments or judicial actions against the Borrowers in excess of $250,000, subject to certain conditions, (vi) the failure of the Company to comply with Pension Benefit Plans (as defined in the Credit Agreement), (vii) the invalidity of loan documents pertaining to the Credit Agreement, (viii) a change of control of the Borrowers and (ix) the interruption of operations of any of the Borrowers' manufacturing facilities for five consecutive days during the peak season or fifteen consecutive days during any other time, subject to certain conditions. | ||||||||||||
Pursuant to the Credit Agreement, substantially all of the Borrowers' accounts receivable are automatically and promptly swept to repay amounts outstanding under the Revolving Credit Facility upon receipt by the Borrowers. Due to this automatic liquidating nature of the Revolving Credit Facility, if the Borrowers breach any covenant, violate any representation or warranty or suffer a deterioration in their ability to borrow pursuant to the borrowing base calculation, the Borrowers may not have access to cash liquidity unless provided by PNC at its discretion. In addition, certain of the covenants and representations and warranties set forth in the Credit Agreement contain limited or no materiality thresholds, and many of the representations and warranties must be true and correct in all material respects upon each borrowing, which the Borrowers expect to occur on an ongoing basis. There can be no assurance that the Borrowers will be able to comply with all such covenants and be able to continue to make such representations and warranties on an ongoing basis. | ||||||||||||
The Company's line of credit with PNC is structured to provide seasonal credit availability during the Company's peak summer season. The Company believes that the Revolving Credit Facility will provide sufficient liquidity to meet its capital requirements in the next 12 months. Approximately $9,871,000 was available for borrowing as of April 30, 2014. | ||||||||||||
The descriptions set forth herein of the Credit Agreement, Amendment No. 1, Amendment No. 2, Amendment No. 3, Amendment No. 4, Amendment No. 5, Amendment No. 6 and Amendment No. 7 are qualified in their entirety by the terms of such agreements, each of which has been filed with the Securities and Exchange Commission. | ||||||||||||
Management believes that the carrying value of debt approximated fair value at April 30, 2014 and 2013, as all of the long-term debt bears interest at variable rates based on prevailing market conditions. |
Net_Income_Loss_per_Share
Net Income (Loss) per Share | 3 Months Ended | ||||||||
Apr. 30, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Net Income (Loss) per Share | ' | ||||||||
Net Income (Loss) per Share | |||||||||
Three Months Ended | |||||||||
4/30/14 | 4/30/13 | ||||||||
(In thousands, except per share data) | |||||||||
Net income (loss) | $ | (3,855 | ) | $ | (4,447 | ) | |||
Average shares outstanding (a) | 14,718 | 14,441 | |||||||
Net effect of dilutive stock options based on the treasury stock method using average market price | — | — | |||||||
Totals | 14,718 | 14,441 | |||||||
Net income (loss) per share - basic | $ | (0.26 | ) | $ | (0.31 | ) | |||
Net income (loss) per share - diluted | $ | (0.26 | ) | $ | (0.31 | ) | |||
(a) | Certain exercisable and non-exercisable stock options were not included in the computation of diluted net loss per share at April 30, 2014 and 2013, because their inclusion would have been anti-dilutive. The number of stock options outstanding, which met this anti-dilutive criterion for the three months ended April 30, 2014 and 2013, was 266,000 and 203,000, respectively. |
Income_Taxes
Income Taxes | 3 Months Ended |
Apr. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Tax Disclosure [Text Block] | ' |
Income Taxes | |
The Company recognizes deferred income taxes under the asset and liability method of accounting for income taxes in accordance with the provisions of ASC No. 740, “Accounting for Income Taxes.” Deferred income taxes are recognized for differences between the financial statement and tax basis of assets and liabilities at enacted statutory tax rates in effect for the years in which the differences are expected to reverse. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. In assessing the realizability of deferred tax assets, the Company considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income or reversal of deferred tax liabilities during the periods in which those temporary differences become deductible. Based on this consideration, the Company determined the realization of a majority of the net deferred tax assets do not meet the more likely than not criteria and a valuation allowance was recorded against the majority of the net deferred tax assets at April 30, 2014. The effective tax rate for the quarter ended April 30, 2014 was impacted by the valuation allowance recognized against state deferred tax assets and discrete items associated with non-taxable permanent differences. | |
The years ended January 31, 2012, January 31, 2013 and January 31, 2014 remain open for examination by the IRS. The Company is not currently under IRS examination. The years ended January 31, 2010 through January 31, 2014 remain open for examination by state tax authorities. The Company is not currently under any state examinations. | |
The specific timing of when the resolution of each tax position will be reached is uncertain. As of April 30, 2014, we do not believe that there are any positions for which it is reasonably possible that the total amount of unrecognized tax benefits will significantly increase or decrease within the next 12 months. |
StockBased_Compensation_and_St
Stock-Based Compensation and Stockholders' Rights | 3 Months Ended | |||||||||||||||
Apr. 30, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Stock Based Compensation and Stockholders' Rights | ' | |||||||||||||||
Stock-Based Compensation and Stockholders’ Rights | ||||||||||||||||
Stock Incentive Plans | ||||||||||||||||
The Company's two stock plans are the 2011 Employee Stock Incentive Plan (the “2011 Plan”) and the 2007 Employee Incentive Stock Plan (the “2007 Plan”). Under the 2011 Plan, the Company may grant an aggregate of 1,000,000 shares to its employees and non-employee directors in the form of stock options or awards. Restricted stock or stock units awarded under the 2011 Plan are expensed ratably over the vesting period of the awards. The Company determines the fair value of its restricted stock unit awards and related compensation expense as the difference between the market value of the awards on the date of grant less the exercise price of the awards granted. The Company granted 0 awards under the 2011 Plan during the quarter ended April 30, 2014. As of April 30, 2014, there were approximately 349,320 shares available for future issuance under the 2011 Plan. | ||||||||||||||||
Under the 2007 Plan, the Company may grant an aggregate of 1,000,000 shares to its employees and non-employee directors in the form of stock options or awards. Restricted stock or stock units awarded under the 2007 Plan are expensed ratably over the vesting period of the awards. The Company determines the fair value of its restricted stock unit awards and related compensation expense as the difference between the market value of the awards on the date of grant less the exercise price of the awards granted. The Company granted 0 awards under the 2007 Plan during 2013 and 0 award under the 2007 Plan during the quarter ended April 30, 2014. As of April 30, 2014, there were approximately 13,075 shares available for future issuance under the 2007 Plan. | ||||||||||||||||
The shares of common stock issued upon exercise of a previously granted stock option are considered new issuances from shares reserved for issuance upon adoption of the various plans. While the Company does not have a formal written policy detailing such issuance, it requires that the option holders provide a written notice of exercise to the stock plan administrator and payment for the shares prior to issuance of the shares. | ||||||||||||||||
Accounting for the Plans | ||||||||||||||||
Restricted Stock Unit Awards | ||||||||||||||||
The following table presents a summary of restricted stock and stock unit awards at April 30, 2014 and 2013: | ||||||||||||||||
Expense for 3 months ended | Unrecognized | |||||||||||||||
Compensation | ||||||||||||||||
Cost at | ||||||||||||||||
Date of Grants | Units Granted | Terms of Vesting | 4/30/14 | 4/30/13 | 4/30/14 | |||||||||||
2011 Stock Incentive Plan | ||||||||||||||||
12/3/13 | 10,000 | 1 year | $ | 6,000 | $ | — | $ | 7,000 | ||||||||
12/3/13 | 18,000 | 5 year | 3,000 | — | 33,000 | |||||||||||
6/25/13 | 71,430 | 1 year | 37,000 | — | 13,000 | |||||||||||
6/19/12 | 31,250 | 1 year | — | 13,000 | — | |||||||||||
6/19/12 | 520,000 | 5 year | 40,000 | 42,000 | 483,000 | |||||||||||
2007 Stock Incentive Plan | ||||||||||||||||
6/19/12 | 78,125 | 1 year | — | 30,000 | — | |||||||||||
6/16/09 | 382,500 | 5 year | 47,000 | 57,000 | 15,000 | |||||||||||
Totals for the period | $ | 133,000 | $ | 142,000 | $ | 551,000 | ||||||||||
Stockholders’ Rights | ||||||||||||||||
On October 15, 1996, the Board of Directors declared a dividend of one preferred stock purchase right (the “Rights”) for each outstanding share of the Company’s common stock. Each of the Rights entitles a stockholder to purchase for an exercise price of $50.00 ($20.70, as adjusted for stock splits and stock dividends), subject to adjustment, one one-hundredth of a share of Series A Junior Participating Cumulative Preferred Stock of the Company, or under certain circumstances, shares of common stock of the Company or a successor company with a market value equal to two times the exercise price. The Rights are not exercisable, and would only become exercisable for all other persons when any person has acquired or commences to acquire a beneficial interest of at least 20% of the Company’s outstanding common stock. The Rights have no voting privileges, and may be redeemed by the Board of Directors at a price of $.001 per Right at any time prior to the acquisition of a beneficial ownership of 20% of the outstanding common stock. There are 200,000 shares, (483,153 shares as adjusted by stock splits and stock dividends) of Series A Junior Participating Cumulative Preferred Stock reserved for issuance upon exercise of the Rights. On July 31, 2007, the Company and Mellon Investor Services LLC entered into an amendment to the Rights Agreement governing the Rights. The amendment, among other things, extended the term of the Rights issued under the Rights Agreement to October 25, 2016, removed the dead-hand provisions from the Rights Agreement, and formally replaced the former Rights Agent, The Chase Manhattan Bank, with its successor-in-interest, Mellon Investor Services LLC. | ||||||||||||||||
As part of the Board of Directors ongoing review of the Company’s corporate governance policies, the Board of Directors determined that the trend among companies is to terminate or not renew shareholders rights plan absent a specific risk to the stockholders interest. To that end, the Board of Directors has determined to terminate the Rights Agreement and the Rights following the 2014 Annual Meeting of the Company’s stockholders, subject to shareholders approval. |
Stockholders_Equity
Stockholders’ Equity | 3 Months Ended |
Apr. 30, 2014 | |
Equity [Abstract] | ' |
Stockholders’ Equity | ' |
Stockholders’ Equity | |
During the three months ended April 30, 2014, the Company did not repurchase any shares of its common stock. As of April 30, 2014, $1.1 million remained available for repurchases of the Company’s common stock pursuant to the Company’s repurchase program approved by the Board of Directors, subject to restriction under the Company's Credit Agreement with PNC. Pursuant to the Company’s Credit Agreement with PNC, the Company is prohibited from repurchasing any shares of its stock except in cases where a repurchase is financed by a substantially concurrent issuance of new shares of the Company’s common stock. |
Retirement_Plans_Retirement_Pl
Retirement Plans Retirement Plans | 3 Months Ended | |||||||||||||||||||||||
Apr. 30, 2014 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||
Retirement Plans | ' | |||||||||||||||||||||||
Retirement Plans | ||||||||||||||||||||||||
The Company and its subsidiaries cover employees under a noncontributory defined benefit retirement plan, entitled the Virco Employees’ Retirement Plan (the “Pension Plan”). Benefits under the Employees Retirement Plan are based on years of service and career average earnings. As more fully described in the Form 10-K, benefit accruals under the Employees Retirement Plan were frozen effective December 31, 2003. | ||||||||||||||||||||||||
The Company also provides a supplementary retirement plan for certain key employees, the VIP Retirement Plan (the “VIP Plan”). The VIP Plan provides a benefit of up to 50% of average compensation for the last 5 years in the VIP Plan, offset by benefits earned under the Pension Plan. As more fully described in the Form 10-K, benefit accruals under this plan were frozen effective December 31, 2003. | ||||||||||||||||||||||||
The Company also provides a non-qualified plan for non-employee directors of the Company (the “Non-Employee Directors Retirement Plan”). The Non-Employee Directors Retirement Plan provides a lifetime annual retirement benefit equal to the director’s annual retainer fee for the fiscal year in which the director terminates his or her position with the Board, subject to the director providing 10 years of service to the Company. As more fully described in the Form 10-K, benefit accruals under this plan were frozen effective December 31, 2003. | ||||||||||||||||||||||||
The net periodic pension cost (income) for the Pension Plan, the VIP Plan, and the Non-Employee Directors Retirement Plan for the three months ended April 30, 2014 and 2013 were as follows (in thousands): | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
Pension Plan | VIP Plan | Non-Employee Directors Retirement Plan | ||||||||||||||||||||||
4/30/14 | 4/30/13 | 4/30/14 | 4/30/13 | 4/30/14 | 4/30/13 | |||||||||||||||||||
Service cost | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Interest cost | 315 | 322 | 88 | 83 | 4 | 4 | ||||||||||||||||||
Expected return on plan assets | (275 | ) | (276 | ) | — | — | — | — | ||||||||||||||||
Amortization of transition amount | — | — | — | — | — | — | ||||||||||||||||||
Recognized (gain) loss due to curtailments | — | — | — | — | — | — | ||||||||||||||||||
Amortization of prior service cost | — | — | — | — | — | — | ||||||||||||||||||
Recognized net actuarial loss | 284 | 350 | 45 | 55 | (8 | ) | (3 | ) | ||||||||||||||||
Benefit cost | $ | 324 | $ | 396 | $ | 133 | $ | 138 | $ | (4 | ) | $ | 1 | |||||||||||
Warranty_Accrual
Warranty Accrual | 3 Months Ended | |||||||
Apr. 30, 2014 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Warranty Accrual | ' | |||||||
Warranty Accrual | ||||||||
The Company provides a warranty against all substantial defects in material and workmanship. In 2005 the Company extended its standard warranty from five years to 10 years. Effective February 1, 2014 the Company modified its warranty to a limited lifetime warranty. The new warranty effective February 1, 2014 is not anticipated to have a significant effect on warranty expense. The Company’s warranty is not a guarantee of service life, which depends upon events outside the Company’s control and may be different from the warranty period. The Company accrues an estimate of its exposure to warranty claims based upon both product sales data and an analysis of actual warranty claims incurred. At the current time, management cannot reasonably determine whether warranty claims for the upcoming fiscal year will be less than, equal to, or greater than warranty claims incurred in 2013. | ||||||||
The following is a summary of the Company’s warranty-claim activity for the three months ended April 30, 2014 and 2013. | ||||||||
Three Months Ended | ||||||||
4/30/14 | 4/30/13 | |||||||
(In thousands) | ||||||||
Beginning balance | $ | 1,000 | $ | 1,000 | ||||
Provision | 135 | 141 | ||||||
Costs incurred | (135 | ) | (141 | ) | ||||
Ending balance | $ | 1,000 | $ | 1,000 | ||||
Subsequent_Events
Subsequent Events | 3 Months Ended |
Apr. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Events | |
We have evaluated subsequent events to assess the need for potential recognition or disclosure in this Quarterly Report on Form 10-Q. Such events were evaluated through the date these financial statements were issued. Based upon this evaluation, it was determined that, no subsequent events occurred that required recognition or disclosure in the financial statements. | |
As part of the Board of Directors ongoing review of the Company’s corporate governance policies, the Board of Directors determined that the trend among companies is to terminate or not renew shareholders rights plan absent a specific risk to the stockholders interest. To that end, the Board of Directors has determined to terminate the Rights Agreement and the Rights following the 2014 Annual Meeting of the Company’s stockholders, subject to shareholders approval. |
Correction_of_Immaterial_Error1
Correction of Immaterial Errors (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Apr. 30, 2014 | |||||||||||||||||||||||||
Accounting Changes and Error Corrections [Abstract] | ' | ||||||||||||||||||||||||
Schedule of effect of recording immaterial corrections in the condensed consolidated balance sheets and consolidated statements of comprehensive income (loss) | ' | ||||||||||||||||||||||||
The effect of recording immaterial corrections in the condensed consolidated balance sheets and consolidated statements of comprehensive income (loss) for the quarters ended April 30, July 31 and October 31, 2013 are as follows: | |||||||||||||||||||||||||
For the Quarter Ended April 30, 2013 | For the Quarter Ended July 31, 2013 | For the Quarter Ended October 31, 2013 | |||||||||||||||||||||||
(in thousands) | As Previously Reported | As Corrected | As Previously Reported | As Corrected | As Previously Reported | As Corrected | |||||||||||||||||||
Accrued pension expenses | $ | 26,476 | $ | 26,074 | $ | 26,567 | $ | 25,763 | $ | 26,398 | $ | 25,192 | |||||||||||||
Total stockholder’s equity | 22,715 | 23,117 | 28,901 | 29,705 | 33,181 | 34,387 | |||||||||||||||||||
Net income (loss) | (4,447 | ) | (4,447 | ) | 6,210 | 6,210 | 3,408 | 3,408 | |||||||||||||||||
Comprehensive income (loss) | (4,447 | ) | (4,045 | ) | 6,210 | 6,612 | 4,208 | 4,610 | |||||||||||||||||
Impact for period-to-date comprehensive income (loss) | (4,447 | ) | (4,045 | ) | 1,763 | 2,567 | 5,971 | 7,177 | |||||||||||||||||
Debt_Tables
Debt (Tables) | 3 Months Ended | |||||||||||
Apr. 30, 2014 | ||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||
Outstanding balances of long-term debt | ' | |||||||||||
Debt | ||||||||||||
Outstanding balances (in thousands) for the Company’s long-term debt were as follows: | ||||||||||||
4/30/14 | 1/31/14 | 4/30/13 | ||||||||||
(in thousands) | ||||||||||||
Revolving credit line | 20,586 | 8,248 | 18,932 | |||||||||
Other | — | — | — | |||||||||
Total debt | 20,586 | 8,248 | 18,932 | |||||||||
Less current portion | 14,586 | 2,248 | 12,932 | |||||||||
Non-current portion | $ | 6,000 | $ | 6,000 | $ | 6,000 | ||||||
Net_Income_Loss_per_Share_Tabl
Net Income (Loss) per Share (Tables) | 3 Months Ended | ||||||||
Apr. 30, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Schedule of Earnings Per Share, Basic and Diluted | ' | ||||||||
Three Months Ended | |||||||||
4/30/14 | 4/30/13 | ||||||||
(In thousands, except per share data) | |||||||||
Net income (loss) | $ | (3,855 | ) | $ | (4,447 | ) | |||
Average shares outstanding (a) | 14,718 | 14,441 | |||||||
Net effect of dilutive stock options based on the treasury stock method using average market price | — | — | |||||||
Totals | 14,718 | 14,441 | |||||||
Net income (loss) per share - basic | $ | (0.26 | ) | $ | (0.31 | ) | |||
Net income (loss) per share - diluted | $ | (0.26 | ) | $ | (0.31 | ) |
StockBased_Compensation_and_St1
Stock-Based Compensation and Stockholders' Rights (Tables) | 3 Months Ended | |||||||||||||||
Apr. 30, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Schedule of Restricted Stock and Stock Unit Award Activity | ' | |||||||||||||||
Restricted Stock Unit Awards | ||||||||||||||||
The following table presents a summary of restricted stock and stock unit awards at April 30, 2014 and 2013: | ||||||||||||||||
Expense for 3 months ended | Unrecognized | |||||||||||||||
Compensation | ||||||||||||||||
Cost at | ||||||||||||||||
Date of Grants | Units Granted | Terms of Vesting | 4/30/14 | 4/30/13 | 4/30/14 | |||||||||||
2011 Stock Incentive Plan | ||||||||||||||||
12/3/13 | 10,000 | 1 year | $ | 6,000 | $ | — | $ | 7,000 | ||||||||
12/3/13 | 18,000 | 5 year | 3,000 | — | 33,000 | |||||||||||
6/25/13 | 71,430 | 1 year | 37,000 | — | 13,000 | |||||||||||
6/19/12 | 31,250 | 1 year | — | 13,000 | — | |||||||||||
6/19/12 | 520,000 | 5 year | 40,000 | 42,000 | 483,000 | |||||||||||
2007 Stock Incentive Plan | ||||||||||||||||
6/19/12 | 78,125 | 1 year | — | 30,000 | — | |||||||||||
6/16/09 | 382,500 | 5 year | 47,000 | 57,000 | 15,000 | |||||||||||
Totals for the period | $ | 133,000 | $ | 142,000 | $ | 551,000 | ||||||||||
Retirement_Plans_Retirement_Pl1
Retirement Plans Retirement Plans (Tables) | 3 Months Ended | |||||||||||||||||||||||
Apr. 30, 2014 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||
Schedule of Defined Benefit Plans Disclosures | ' | |||||||||||||||||||||||
The net periodic pension cost (income) for the Pension Plan, the VIP Plan, and the Non-Employee Directors Retirement Plan for the three months ended April 30, 2014 and 2013 were as follows (in thousands): | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
Pension Plan | VIP Plan | Non-Employee Directors Retirement Plan | ||||||||||||||||||||||
4/30/14 | 4/30/13 | 4/30/14 | 4/30/13 | 4/30/14 | 4/30/13 | |||||||||||||||||||
Service cost | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Interest cost | 315 | 322 | 88 | 83 | 4 | 4 | ||||||||||||||||||
Expected return on plan assets | (275 | ) | (276 | ) | — | — | — | — | ||||||||||||||||
Amortization of transition amount | — | — | — | — | — | — | ||||||||||||||||||
Recognized (gain) loss due to curtailments | — | — | — | — | — | — | ||||||||||||||||||
Amortization of prior service cost | — | — | — | — | — | — | ||||||||||||||||||
Recognized net actuarial loss | 284 | 350 | 45 | 55 | (8 | ) | (3 | ) | ||||||||||||||||
Benefit cost | $ | 324 | $ | 396 | $ | 133 | $ | 138 | $ | (4 | ) | $ | 1 | |||||||||||
Warranty_Accrual_Warranty_Tabl
Warranty Accrual Warranty (Tables) | 3 Months Ended | |||||||
Apr. 30, 2014 | ||||||||
Guarantees [Abstract] | ' | |||||||
Schedule of Product Warranty Liability | ' | |||||||
The following is a summary of the Company’s warranty-claim activity for the three months ended April 30, 2014 and 2013. | ||||||||
Three Months Ended | ||||||||
4/30/14 | 4/30/13 | |||||||
(In thousands) | ||||||||
Beginning balance | $ | 1,000 | $ | 1,000 | ||||
Provision | 135 | 141 | ||||||
Costs incurred | (135 | ) | (141 | ) | ||||
Ending balance | $ | 1,000 | $ | 1,000 | ||||
Seasonality_Details
Seasonality (Details) (Sales [Member]) | 3 Months Ended |
Apr. 30, 2014 | |
Sales [Member] | ' |
Seasonality (Textual) [Abstract] | ' |
The market for educational furniture is marked by extreme seasonality | 50.00% |
Correction_of_Immaterial_Error2
Correction of Immaterial Errors (Effect of recording immaterial corrections in the condensed consolidated balance sheets and consolidated statements of comprehensive income (loss))(Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Apr. 30, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jul. 31, 2013 | Oct. 31, 2013 | Jan. 31, 2014 |
Accrued pension expenses | $23,538 | $25,192 | $25,763 | $26,074 | $25,763 | $25,192 | $23,951 |
Total stockholder’s equity | 24,205 | 34,387 | 29,705 | 23,117 | 29,705 | 34,387 | 27,605 |
Net income (loss) | -3,855 | 3,408 | 6,210 | -4,447 | ' | ' | ' |
Comprehensive income (loss) | -3,534 | 4,610 | 6,612 | -4,045 | 2,567 | 7,177 | ' |
As Previously Reported | ' | ' | ' | ' | ' | ' | ' |
Accrued pension expenses | ' | 26,398 | 26,567 | 26,476 | 26,567 | 26,398 | ' |
Total stockholder’s equity | ' | 33,181 | 28,901 | 22,715 | 28,901 | 33,181 | ' |
Net income (loss) | ' | 3,408 | 6,210 | -4,447 | ' | ' | ' |
Comprehensive income (loss) | ' | $4,208 | $6,210 | ($4,447) | $1,763 | $5,971 | ' |
Debt_Longterm_Debt_Details
Debt (Long-term Debt) (Details) (USD $) | Apr. 30, 2014 | Jan. 31, 2014 | Apr. 30, 2013 |
In Thousands, unless otherwise specified | |||
Debt Instrument [Line Items] | ' | ' | ' |
Long-term debt | $20,586 | $8,248 | $18,932 |
Less current portion | 14,586 | 2,248 | 12,932 |
Non-current portion | 6,000 | 6,000 | 6,000 |
Revolving Credit Facility [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Long-term debt | 20,586 | 8,248 | 18,932 |
Other Debt [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Long-term debt | $0 | $0 | $0 |
Net_Income_Loss_per_Share_Deta
Net Income (Loss) per Share (Details) (USD $) | 3 Months Ended | |||||
In Thousands, except Share data, unless otherwise specified | Apr. 30, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' | ||
Net income (loss) | ($3,855) | $3,408 | $6,210 | ($4,447) | ||
Average shares outstanding | 14,718,000 | [1] | ' | ' | 14,441,000 | [1] |
Net effect of dilutive stock options based on the treasury stock method using average market price | 0 | ' | ' | 0 | ||
Totals | 14,718,000 | ' | ' | 14,441,000 | ||
Earnings Per Share, Basic | ($0.26) | [2] | ' | ' | ($0.31) | [2] |
Earnings Per Share, Diluted | ($0.26) | [2] | ' | ' | ($0.31) | [2] |
Stock Option [Member] | ' | ' | ' | ' | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' | ||
Antidilutive securities excluded from computation of earnings per share, Amount | 266,000 | ' | ' | 203,000 | ||
[1] | Certain exercisable and non-exercisable stock options were not included in the computation of diluted net loss per share at April 30, 2014 and 2013, because their inclusion would have been anti-dilutive. The number of stock options outstanding, which met this anti-dilutive criterion for the three months ended April 30, 2014 and 2013, was 266,000 and 203,000, respectively. | |||||
[2] | Net loss per share was calculated based on basic shares outstanding due to the anti-dilutive effect on the inclusion of common stock equivalent shares. |
Debt_Narrative_Details
Debt (Narrative) (Details) (USD $) | 3 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | |||||||||||||||||
Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Jan. 31, 2015 | Apr. 30, 2014 | Apr. 30, 2014 | Jul. 14, 2012 | Jun. 15, 2012 | Jun. 14, 2012 | Jul. 27, 2012 | Apr. 15, 2014 | Apr. 14, 2014 | Apr. 30, 2014 | Dec. 22, 2011 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | |
Accounts receivable [Member] | Inventory [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Credit Agreement [Member] | Credit Agreement [Member] | PNC [Member] | PNC [Member] | PNC [Member] | PNC [Member] | PNC [Member] | PNC [Member] | PNC [Member] | PNC [Member] | PNC [Member] | Eurodollar [Member] | Eurodollar [Member] | Alternate Base Rate Loans [Member] | Alternate Base Rate Loans [Member] | ||
Accounts receivable [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Minimum [Member] | Maximum [Member] | London Interbank Offered Rate LIBOR [Member] | London Interbank Offered Rate LIBOR [Member] | ||||||||
Amendment No. 1 to the Credit Agreement [Member] | Amendment No. 1 to the Credit Agreement [Member] | Amendment No. 1 to the Credit Agreement [Member] | Amendment No. 2 to the Credit Agreement [Member] | Amendment No. 7 To The Credit Agreement [Member] | Amendment No. 7 To The Credit Agreement [Member] | Credit Agreement [Member] | Credit Agreement [Member] | Minimum [Member] | Maximum [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase(Decrease) in borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3,000,000 | ' | ' | ' | ($10,000,000) | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,000,000 | 6,000,000 | ' | 50,000,000 | 60,000,000 | ' | ' | ' | ' | ' | ' |
Minimum EBITDA | ' | ' | ' | ' | ' | ' | 5,512,000 | -4,938,000 | ' | ' | ' | ' | 300,000 | ' | ' | ' | 1,600,000 | ' | ' | ' | ' |
Revolving credit facility | ' | ' | ' | 8,000,000 | 14,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sub-limit for issuances of letters of credit | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facility borrowing base limitation | ' | 85.00% | 60.00% | ' | ' | 85.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facility bears interest range of | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.75% | 2.75% | 0.75% | 1.75% |
Revolving Credit Facility bears interest increased | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum tangible net worth covenant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19,771,000 | ' | ' | ' | ' | ' |
Minimum fixed charge coverage ratio | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Provision to reduce borrowings under the line | 6,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Provision to reduce borrowings under the line, period | '60 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Judgments or judicial actions against the borrowers in excess | 250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | $9,871,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
StockBased_Compensation_and_St2
Stock-Based Compensation and Stockholders' Rights (Restricted Stock Units) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Apr. 30, 2014 | Apr. 30, 2013 | Jan. 31, 2014 | |
Restricted Stock or Stock Units [Member] | ' | ' | ' |
Summary of restricted stock and stock unit awards | ' | ' | ' |
Expense for 3 months ended | $133,000 | $142,000 | ' |
Unrecognized compensation at cost | 551,000 | ' | ' |
2011 Plan [Member] | 10000 units of restricted stock issued on 12/3/2013 vesting over 1 Year [Member] | ' | ' | ' |
Summary of restricted stock and stock unit awards | ' | ' | ' |
Granted | ' | ' | 10,000 |
Maximum term of stock options | ' | ' | '1 year |
Expense for 3 months ended | 6,000 | 0 | ' |
Unrecognized compensation at cost | 7,000 | ' | ' |
Restricted Stock Units | ' | ' | ' |
Granted | ' | ' | 10,000 |
2011 Plan [Member] | 10000 units of restricted stock issued on 12/3/2013 vesting over 5 years [Member] | ' | ' | ' |
Summary of restricted stock and stock unit awards | ' | ' | ' |
Granted | ' | ' | 18,000 |
Maximum term of stock options | ' | ' | '5 years |
Expense for 3 months ended | 3,000 | 0 | ' |
Unrecognized compensation at cost | 33,000 | ' | ' |
Restricted Stock Units | ' | ' | ' |
Granted | ' | ' | 18,000 |
2011 Plan [Member] | 71,430 units of restricted stock issued on 6/25/2013 vesting over 1yr [Member] | ' | ' | ' |
Summary of restricted stock and stock unit awards | ' | ' | ' |
Granted | ' | ' | 71,430 |
Maximum term of stock options | ' | ' | '1 year |
Expense for 3 months ended | 37,000 | 0 | ' |
Unrecognized compensation at cost | 13,000 | ' | ' |
Restricted Stock Units | ' | ' | ' |
Granted | ' | ' | 71,430 |
2011 Plan [Member] | 31,250 units of restricted stock issued on 6/19/2012 vesting over 1 year | ' | ' | ' |
Summary of restricted stock and stock unit awards | ' | ' | ' |
Granted | ' | ' | 31,250 |
Maximum term of stock options | ' | ' | '1 year |
Expense for 3 months ended | 0 | 13,000 | ' |
Unrecognized compensation at cost | 0 | ' | ' |
Restricted Stock Units | ' | ' | ' |
Granted | ' | ' | 31,250 |
2011 Plan [Member] | 520,000 Grants of Restricted Stock, issued 6/19/2012, vesting over 5 years [Member] | ' | ' | ' |
Summary of restricted stock and stock unit awards | ' | ' | ' |
Granted | ' | ' | 520,000 |
Maximum term of stock options | ' | ' | '5 years |
Expense for 3 months ended | 40,000 | 42,000 | ' |
Unrecognized compensation at cost | 483,000 | ' | ' |
Restricted Stock Units | ' | ' | ' |
Granted | ' | ' | 520,000 |
2007 Plan [Member] | Grants of Restricted Stock, issued 6/19/2012, vesting over 1 year [Member] | ' | ' | ' |
Summary of restricted stock and stock unit awards | ' | ' | ' |
Granted | ' | ' | 78,125 |
Maximum term of stock options | ' | ' | '1 year |
Expense for 3 months ended | 0 | 30,000 | ' |
Unrecognized compensation at cost | 0 | ' | ' |
Restricted Stock Units | ' | ' | ' |
Granted | ' | ' | 78,125 |
2007 Plan [Member] | 40,000 Grants of Restricted Stock, issued 3/21/2012, vesting immediately [Member] | ' | ' | ' |
Summary of restricted stock and stock unit awards | ' | ' | ' |
Granted | ' | ' | 40,000 |
Restricted Stock Units | ' | ' | ' |
Granted | ' | ' | 40,000 |
2007 Plan [Member] | 68,960 Grants of Restricted Stock, issued 6/21/2011, vesting over 1 year [Member] | ' | ' | ' |
Summary of restricted stock and stock unit awards | ' | ' | ' |
Granted | ' | ' | 68,960 |
Maximum term of stock options | ' | ' | '1 year |
Restricted Stock Units | ' | ' | ' |
Granted | ' | ' | 68,960 |
2007 Plan [Member] | 56,455 Grants of Restricted Stock, issued 6/8/2010, vesting over 1 year [Member] | ' | ' | ' |
Summary of restricted stock and stock unit awards | ' | ' | ' |
Granted | ' | ' | 56,455 |
Maximum term of stock options | ' | ' | '1 year |
Restricted Stock Units | ' | ' | ' |
Granted | ' | ' | 56,455 |
2007 Plan [Member] | 382,500 Restricted Stock Units, issued 6/16/2009, vesting over 5 years [Member] | ' | ' | ' |
Summary of restricted stock and stock unit awards | ' | ' | ' |
Granted | ' | ' | 382,500 |
Maximum term of stock options | ' | ' | '5 years |
Expense for 3 months ended | 47,000 | 57,000 | ' |
Unrecognized compensation at cost | $15,000 | ' | ' |
Restricted Stock Units | ' | ' | ' |
Granted | ' | ' | 382,500 |
2007 Plan [Member] | 262,500 Restricted Stock Units, issued 6/19/2007, vesting over 5 years [Member] | ' | ' | ' |
Summary of restricted stock and stock unit awards | ' | ' | ' |
Granted | ' | ' | 262,500 |
Maximum term of stock options | ' | ' | '5 years |
Restricted Stock Units | ' | ' | ' |
Granted | ' | ' | 262,500 |
2007 Plan [Member] | Restricted Stock or Stock Units [Member] | ' | ' | ' |
Summary of restricted stock and stock unit awards | ' | ' | ' |
Granted | ' | ' | 0 |
Restricted Stock Units | ' | ' | ' |
Granted | ' | ' | 0 |
StockBased_Compensation_and_St3
Stock-Based Compensation and Stockholders' Rights (Textual) (Details) (USD $) | Apr. 30, 2014 | Apr. 30, 2013 | Oct. 15, 1996 | Oct. 15, 1996 | Jan. 31, 2014 | Apr. 30, 2014 | Apr. 30, 2014 |
Series A Junior Participating Cumulative Preferred Stock [Member] | Restricted Stock or Stock Units [Member] | Restricted Stock or Stock Units [Member] | Restricted Stock or Stock Units [Member] | ||||
2007 Plan [Member] | 2007 Plan [Member] | 2011 Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Grant of stock option or awards | ' | ' | ' | ' | ' | 1,000,000 | ' |
Granted during the year | ' | ' | ' | ' | 0 | ' | ' |
Stock available for future issuance | ' | ' | ' | ' | ' | 13,075 | 349,320 |
Rights entitles a stockholder to purchase for an exercise price | ' | ' | $50 | ' | ' | ' | ' |
Adjusted for stock splits and stock dividends, price | ' | ' | $20.70 | ' | ' | ' | ' |
Acquire a beneficial interest | ' | ' | 20.00% | ' | ' | ' | ' |
Preferred stock, par value | $0.01 | $0.01 | $0.00 | ' | ' | ' | ' |
Preferred stock, shares | ' | ' | ' | 200,000 | ' | ' | ' |
Adjusted by stock splits and stock dividends, Shares | ' | ' | ' | 483,153 | ' | ' | ' |
Stockholders_Equity_Details
Stockholders' Equity (Details) | Apr. 30, 2014 |
In Millions, unless otherwise specified | |
Equity [Abstract] | ' |
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 1.1 |
Retirement_Plans_Periodic_Pens
Retirement Plans (Periodic Pension Cost) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 30, 2014 | Apr. 30, 2013 |
Components of Net Cost | ' | ' |
Amortization of prior service cost | ' | $0 |
Employee Plan [Member] | ' | ' |
Components of Net Cost | ' | ' |
Service cost | 0 | 0 |
Interest cost | 315 | 322 |
Expected return on plan assets | -275 | -276 |
Amortization of transition amount | 0 | 0 |
Recognized (gain) loss due to curtailments | 0 | 0 |
Amortization of prior service cost | 0 | 0 |
Recognized net actuarial loss | 284 | 350 |
Benefit cost | 324 | 396 |
VIP Retirement Plan [Member] | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase | 50.00% | ' |
Components of Net Cost | ' | ' |
Service cost | 0 | 0 |
Interest cost | 88 | 83 |
Expected return on plan assets | 0 | 0 |
Amortization of transition amount | 0 | 0 |
Recognized (gain) loss due to curtailments | 0 | 0 |
Amortization of prior service cost | 0 | 0 |
Recognized net actuarial loss | 45 | 55 |
Benefit cost | 133 | 138 |
Directors Plan [Member] | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' |
Director Providing Service To Company | '10 years | ' |
Components of Net Cost | ' | ' |
Service cost | 0 | 0 |
Interest cost | 4 | 4 |
Expected return on plan assets | 0 | 0 |
Amortization of transition amount | 0 | 0 |
Recognized (gain) loss due to curtailments | 0 | 0 |
Recognized net actuarial loss | -8 | -3 |
Benefit cost | ($4) | $1 |
Retirement_Plans_Pension_plan_
Retirement Plans Pension plan actuarial gain or loss (Details) | 9 Months Ended |
Oct. 31, 2013 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' |
Benefit Of Average Compensation Years | '5 years |
Warranty_Details
Warranty (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 30, 2014 | Apr. 30, 2013 |
Warranty claim activity | ' | ' |
Beginning balance | $1,000 | $1,000 |
Provision | 135 | 141 |
Costs incurred | -135 | -141 |
Ending balance | $1,000 | $1,000 |
Minimum [Member] | ' | ' |
Warranty [Line Items] | ' | ' |
Product warranty period | '5 years | ' |
Maximum [Member] | ' | ' |
Warranty [Line Items] | ' | ' |
Product warranty period | '10 years | ' |