Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2016 | Apr. 01, 2016 | Jul. 31, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | VIRCO MFG CORPORATION | ||
Entity Central Index Key | 751,365 | ||
Document Type | 10-K | ||
Document Period End Date | Jan. 31, 2016 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
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 | $ 39 | ||
Entity Common Stock, Shares Outstanding | 14,998,187 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 31, 2016 | Jan. 31, 2015 |
Current assets: | ||
Cash | $ 815 | $ 470 |
Trade accounts receivables (net of allowance for doubtful accounts of $200 at January 31, 2016 and 2015) | 9,929 | 10,614 |
Other receivables | 34 | 43 |
Income tax receivable | 317 | 267 |
Inventories, net | 34,603 | 26,678 |
Prepaid expenses and other current assets | 1,074 | 743 |
Total current assets | 46,772 | 38,815 |
Property, plant and equipment | ||
Land | 1,671 | 1,671 |
Land improvements | 675 | 851 |
Buildings and building improvements | 45,860 | 47,047 |
Machinery and equipment | 103,969 | 110,060 |
Leasehold improvements | 1,636 | 1,909 |
Total property, plant and equipment | 153,811 | 161,538 |
Less accumulated depreciation and amortization | 118,991 | 126,317 |
Net property, plant and equipment | 34,820 | 35,221 |
Deferred income tax assets, net | 703 | 780 |
Other assets | 7,140 | 6,995 |
Total assets | 89,435 | 81,811 |
Current liabilities: | ||
Accounts payable | 12,982 | 9,901 |
Accrued compensation and employee benefits | 5,608 | 4,199 |
Current portion of long-term debt | 663 | 3,366 |
Other accrued liabilities | 3,525 | 3,939 |
Total current liabilities | 22,778 | 21,405 |
Non-current liabilities: | ||
Accrued self-insurance | 1,650 | 1,730 |
Accrued retirement benefits | 23,330 | 28,986 |
Income tax payable | 38 | 42 |
Non-current portion | 6,097 | 6,153 |
Other accrued liabilities | 2,229 | 922 |
Total non-current liabilities | $ 33,344 | $ 37,833 |
Commitments and contingencies | ||
Preferred stock: | ||
Authorized 3,000,000 shares, $.01 par value; none issued or outstanding | $ 0 | $ 0 |
Common stock: | ||
Authorized 25,000,000 shares, $.01 par value; issued and outstanding 14,998,187 shares in 2016 and 14,852,640 shares in 2015 | 150 | 149 |
Additional paid-in capital | 116,633 | 116,348 |
Accumulated deficit | (69,140) | (73,690) |
Accumulated other comprehensive loss | (14,330) | (20,234) |
Total stockholders’ equity | 33,313 | 22,573 |
Total liabilities and stockholders’ equity | $ 89,435 | $ 81,811 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jan. 31, 2016 | Jan. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivables | $ 200 | $ 200 |
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 | 14,998,187 | 14,852,640 |
Common stock, shares outstanding | 14,998,187 | 14,852,640 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | ||
Income Statement [Abstract] | ||||
Net sales | $ 168,595 | $ 164,052 | $ 155,042 | |
Costs of goods sold | 108,985 | 108,654 | 102,488 | |
Gross profit | 59,610 | 55,398 | 52,554 | |
Selling, general and administrative expenses | 53,653 | 52,741 | 52,587 | |
Loss (gain) on sale of property, plant & equipment | 9 | (2) | (10) | |
Restructuring expense | 0 | 287 | 1,408 | |
Operating income (loss) | 5,948 | 2,372 | (1,431) | |
Interest expense, net | 1,281 | 1,454 | 1,302 | |
Income (loss) before income taxes | 4,667 | 918 | (2,733) | |
Income tax expense (benefit) | 118 | 69 | (1,003) | |
Net income (loss) | $ 4,549 | $ 849 | $ (1,730) | |
Net income (loss) per common share: | ||||
Basic | [1] | $ 0.31 | $ 0.06 | $ (0.12) |
Diluted | [1] | $ 0.30 | $ 0.06 | $ (0.12) |
Weighted average shares outstanding: | ||||
Basic | 14,914 | 14,756 | 14,620 | |
Diluted | [2] | 15,118 | 14,987 | 14,620 |
[1] | Net loss per share for fiscal year 2014 was calculated based on basic shares outstanding due to the anti-dilutive effect on the inclusion of common stock equivalent shares. | |||
[2] | For fiscal year 2014, approximately 180,000 shares of common stock equivalents were excluded in the computation of diluted net income per share, as the effect would be anti-dilutive. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 4,549 | $ 849 | $ (1,730) |
Other comprehensive income (loss) : | |||
Pension adjustments | 5,904 | (6,254) | 2,006 |
Comprehensive income (loss) | $ 10,453 | $ (5,405) | $ 276 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders’ Equity - USD ($) | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss |
Balance (in shares) at Jan. 31, 2013 | 14,550,371 | ||||
Balance at Jan. 31, 2013 | $ 27,020,000 | $ 146,000 | $ 115,670,000 | $ (72,810,000) | $ (15,986,000) |
Net income (loss) | (1,730,000) | 0 | 0 | (1,730,000) | 0 |
Pension adjustments, net of tax effect | 2,006,000 | $ 0 | 0 | 0 | 2,006,000 |
Shares vested and others (in shares) | 168,043 | ||||
Shares vested and others | (214,000) | $ 1,000 | (215,000) | 0 | 0 |
Stock compensation expense | 523,000 | $ 0 | 523,000 | 0 | 0 |
Balance (in shares) at Jan. 31, 2014 | 14,718,414 | ||||
Balance at Jan. 31, 2014 | 27,605,000 | $ 147,000 | 115,978,000 | (74,540,000) | (13,980,000) |
Net income (loss) | 849,000 | 0 | 0 | 849,000 | 0 |
Pension adjustments, net of tax effect | (6,254,000) | $ 0 | 0 | 0 | (6,254,000) |
Shares vested and others (in shares) | 134,226 | ||||
Shares vested and others | (129,000) | $ 2,000 | (132,000) | 1,000 | 0 |
Stock compensation expense | 502,000 | $ 0 | 502,000 | 0 | 0 |
Balance (in shares) at Jan. 31, 2015 | 14,852,640 | ||||
Balance at Jan. 31, 2015 | 22,573,000 | $ 149,000 | 116,348,000 | (73,690,000) | (20,234,000) |
Net income (loss) | 4,549,000 | 0 | 0 | 4,549,000 | 0 |
Pension adjustments, net of tax effect | 5,904,000 | $ 0 | 0 | 0 | 5,904,000 |
Shares vested and others (in shares) | 145,547 | ||||
Shares vested and others | (205,000) | $ 1,000 | (207,000) | 1,000 | 0 |
Stock compensation expense | 492,000 | $ 0 | 492,000 | 0 | 0 |
Balance (in shares) at Jan. 31, 2016 | 14,998,187 | ||||
Balance at Jan. 31, 2016 | $ 33,313,000 | $ 150,000 | $ 116,633,000 | $ (69,140,000) | $ (14,330,000) |
Consolidated Statements of Sto7
Consolidated Statements of Stockholders’ Equity (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Statement of Stockholders' Equity [Abstract] | |||
Pension adjustment tax effects | $ 0 | $ 1,078 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Operating activities | |||
Net income (loss) | $ 4,549 | $ 849 | $ (1,730) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 4,757 | 4,408 | 4,209 |
Increase (decrease) in provision for doubtful accounts | 141 | 115 | (6) |
Increase (decrease) in inventory reserve | 350 | (275) | (100) |
Loss (gain) on sale of property, plant and equipment | 9 | (2) | (10) |
Deferred income taxes | 77 | 34 | 97 |
Stock-based compensation | 493 | 502 | 523 |
Defined benefit plan, recognized net loss due to settlements | 587 | 0 | 924 |
Amortization of net actuarial loss for pension plans | 2,013 | 1,283 | 1,548 |
Changes in operating assets and liabilities: | |||
Trade accounts receivable | 544 | (2,261) | 376 |
Other receivables | 10 | 9 | 56 |
Inventories | (8,275) | 1,376 | (2,364) |
Income taxes | (54) | (4) | (105) |
Prepaid expenses and other current assets | (532) | 915 | (58) |
Accounts payable and accrued liabilities | 2,838 | (5,290) | (3,603) |
Net cash provided by (used in) operating activities | 7,507 | 1,659 | (243) |
Investing activities | |||
Capital expenditures | (4,261) | (3,314) | (3,632) |
Proceeds from sale of property, plant and equipment | 8 | 2 | 19 |
Net proceeds from (investments in) life insurance | 56 | (70) | (25) |
Net cash (used in) provided by investing activities | (4,197) | (3,382) | (3,638) |
Financing activities | |||
Proceeds from long-term debt | 31,960 | 33,750 | 28,851 |
Repayment of long-term debt | (34,719) | (32,479) | (24,656) |
Common stock repurchased | (206) | (129) | (116) |
Cash dividend paid | 0 | 0 | 0 |
Net cash (used in) provided by financing activities | (2,965) | 1,142 | 4,079 |
Net (decrease) increase in cash | 345 | (581) | 198 |
Cash at beginning of year | 470 | 1,051 | 853 |
Cash at end of year | 815 | 470 | 1,051 |
Interest | 1,281 | 1,454 | 1,302 |
Income tax, net of refunds | $ 72 | $ 46 | $ 74 |
Summary of Business and Signifi
Summary of Business and Significant Accounting Policies | 12 Months Ended |
Jan. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Business and Significant Accounting Policies | Summary of Business and Significant Accounting Policies Business Virco Mfg. Corporation (the “Company”), which operates in one business segment, is engaged in the design, production and distribution of quality furniture for the commercial and education markets. Over 66 years of manufacturing operations have resulted in a wide product assortment. Major products include mobile tables, mobile storage equipment, desks, computer furniture, chairs, activity tables, folding chairs and folding tables. The Company manufactures its products in Torrance, California, and Conway, Arkansas, for sale primarily in the United States. The Company operates in a seasonal business, and requires significant amounts of working capital under its credit facility to fund acquisitions of inventory and finance receivables during the summer delivery season. Restrictions imposed by the terms of the Company’s credit facility may limit the Company’s operating and financial flexibility. However, management believes that its existing cash and available borrowings under its credit facility, and any cash generated from operations will be sufficient to fund its working capital requirements, capital expenditures and other obligations through the next 12 months. Principles of Consolidation The consolidated financial statements include the accounts of Virco Mfg. Corporation and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Reclassifications Certain reclassifications have been made to the prior year financial information to conform with the current period presentation. Management Use of Estimates Preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities - and disclosure of contingent assets and liabilities - at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Significant estimates made by management include, but are not limited to, valuation of inventory; deferred tax assets and liabilities; useful lives of property, plant, and equipment; liabilities under pension, warranty, self-insurance, and environmental claims, revenue recognition; and the accounts receivable allowance for doubtful accounts. Actual results could differ from these estimates. Fiscal Year End Fiscal years 2016 , 2015 , and 2014 refer to the fiscal years ended January 31, 2016 , 2015 and 2014 , respectively. Concentration of Credit Risk Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of accounts receivable. The Company performs ongoing credit evaluations of its customers and maintains allowances for potential credit losses. Sales to the Company’s recurring customers are generally made on open account with terms consistent with the industry. Credit is extended based on an evaluation of the customer’s financial condition and payment history. Past due accounts are determined based on how recently payments have been made in relation to the terms granted. Amounts are written off against the allowance in the period that the Company determines that the receivable is not collectable. The Company purchases insurance on receivables from certain commercial customers to minimize the Company’s credit risk. The Company does not typically obtain collateral to secure credit risk. Customers with inadequate credit are required to provide cash in advance or letters of credit. The Company does not assess interest on receivable balances. A substantial percentage of the Company’s receivables come from low-risk government entities. No customer exceeded 10% of the Company’s sales for each of the three years ended January 31, 2016 . Foreign sales were approximately 6.7% , 7.7% and 7.5% of the Company’s sales for fiscal years 2016 , 2015 and 2014 , respectively. No single customer accounted for more than 10% of the Company’s accounts receivable at January 31, 2016 or 2015 . Because of the short time between shipment and collection, the net carrying value of receivables approximates the fair value for these assets. Fair Values of Financial Instruments The fair values of the Company’s cash, accounts receivable, and accounts payable approximate their carrying amounts due to their short-term nature. Financial assets and liabilities measured at fair value on a recurring basis are classified in one of the three following categories, which are described below: Level 1 — Valuations based on unadjusted quoted prices for identical assets in an active market. Level 2 — Valuations based on quoted prices in markets where trading occurs infrequently or whose values are based on quoted prices of instruments with similar attributes in active markets. Level 3 — Valuations based on inputs that are unobservable and involve management judgment and our own assumptions about market participants and pricing. Financial assets measured at fair value on a recurring basis include assets associated with the Virco Employees Retirement Plan. Inventories Inventory is valued at the lower of cost or Net Realizable Value (determined on a first-in, first-out basis) and includes material, labor, and factory overhead. The Company maintains allowances for estimated slow moving and obsolete inventory to reflect the difference between the cost of inventory and the estimated market value. Allowances for slow moving and obsolete inventory are determined through a physical inspection of the product in connection with a physical inventory, a review of slow-moving product, and consideration of active marketing programs. The market for education furniture is traditionally driven by value, not style, and the Company has not typically incurred significant obsolescence expenses. If market conditions are less favorable than those anticipated by management, additional allowances may be required. Due to reductions in sales volume in the past years, the Company’s manufacturing facilities are operating at reduced levels of capacity. The Company records the cost of excess capacity as a period expense, not as a component of capitalized inventory valuation. The following table presents an updated breakdown of the Company’s net inventory (in thousands) as of January 31, 2016 and 2015: January 31, 2016 2015 Finished goods 10,233 7,821 WIP 13,443 10,181 Raw materials 10,927 8,676 Inventories, net 34,603 26,678 In connection with the preparation of the consolidated financial statements, the Company determined that its reserve for excess and obsolete inventory had previously been applied exclusively to the Finished goods portion of inventory, when it should have been applied against Finished goods, Work in process, and Raw materials and supplies, based on the identification of the specific parts determined to be held in excess or obsolete. The Company evaluated the impact of this error on prior year financial statements and concluded that it was immaterial for the year ended January 31, 2015, and for all interim periods within the year. While the amounts included in the prior year disclosure were considered to be immaterial, the Company elected to revise the disclosure of previously reported amounts to be consistent with the presentation for the year ended January 31, 2016. The changes resulted in no change to Inventories, net. The changes resulted in an increase to Finished goods of $2,219,000 , a decrease to Work in process of $1,306,000 , and a decrease to Raw materials and supplies of $913,000 as of January 31, 2015. Property, Plant and Equipment Property, plant and equipment are stated at cost, less accumulated depreciation. Depreciation and amortization are computed on the straight-line method for financial reporting purposes based upon the following estimated useful lives: Land improvements 5 to 25 years Buildings and building improvements 5 to 40 years Machinery and equipment 3 to 10 years Leasehold improvements shorter of lease or useful life The Company did not capitalize interest costs as part of the acquisition cost of property, plant and equipment for the years ended January 31, 2016 , 2015 and 2014 . The Company capitalizes the cost of significant repairs that extend the life of an asset. Repairs and maintenance that do not extend the life of an asset are expensed as incurred. Repair and maintenance expense was $1,759,000 , $1,616,000 and $1,691,000 for fiscal years ended January 31, 2016 , 2015 and 2014 , respectively. The Company subleased space at one of its facilities on a month-to-month basis during 2016 , 2015 , and 2014 . Rental income was $51,000 , $40,000 , $40,000 for fiscal years ended January 31, 2016 , 2015 , and 2014 respectively. The Company has established asset retirement obligations related to leased manufacturing facilities in accordance with Financial Accounting Standards Board (FASB) Accounting Standard Codification (ASC) Topic 410, “Asset Retirement and Environmental Obligations.” Accrued asset retirement obligations are recorded at net present value and discounted over the life of the lease. Asset retirement obligations, included in other non-current liabilities were $581,000 and $572,000 at January 31, 2016 and 2015 , respectively. January 31, 2016 2015 Balance at beginning of period $ 572,000 $ 563,000 Decrease in obligation — — Accretion expense 9,000 9,000 Balance at end of period $ 581,000 $ 572,000 Impairment of Long-Lived Assets An impairment loss is recognized in the event facts and circumstances indicate the carrying amount of a long-lived asset may not be recoverable, and an estimate of future undiscounted cash flows is less than the carrying amount of the asset. Impairment is recorded based on the excess of the carrying amount of the impaired asset over the fair value. Generally, fair value represents the Company’s expected future cash flows from the use of an asset or group of assets, discounted at a rate commensurate with the risks involved. There were no impairments in fiscal years 2016, 2015 and 2014. Net Income (Loss) per Share Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding. Diluted net income (loss) per share is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding plus the dilution effect of stock grants. The following table sets forth the computation of basic and diluted income (loss) per share: In thousands, except per share data 2016 2015 2014 Numerator Net income (loss) $ 4,549 $ 849 $ (1,730 ) Denominator Weighted-average shares — basic 14,914 14,756 14,620 Dilutive effect of equity incentive plans 204 231 — Weighted-average shares — diluted (1) 15,118 14,987 14,620 Net income (loss) per common share Basic $ 0.31 $ 0.06 $ (0.12 ) Diluted 0.30 0.06 (0.12 ) ___________________ (1) For fiscal year 2014, approximately 180,000 shares of common stock equivalents were excluded in the computation of diluted net income per share, as the effect would be anti-dilutive. Environmental Costs The Company is subject to numerous environmental laws and regulations in the various jurisdictions in which it operates that (a) govern operations that may have adverse environmental effects, such as the discharge of materials into the environment, as well as handling, storage, transportation and disposal practices for solid and hazardous wastes, and (b) impose liability for response costs and certain damages resulting from past and current spills, disposals or other releases of hazardous materials. Normal, recurring expenses related to operating the Company's factories in a manner that meets or exceeds environmental laws and regulations are matched to the cost of producing inventory. Despite our efforts to comply with existing laws and regulations, compliance with more stringent laws or regulations, or stricter interpretation of existing laws, may require additional expenditures by us, some of which may be material. We reserve amounts for such matters when expenditures are probable and reasonably estimable. Costs incurred to investigate and remediate environmental waste are expensed, unless the remediation extends the useful life of the assets employed at the site. At January 31, 2016 and 2015 , the Company had not capitalized any remediation costs and had not recorded any amortization expense in fiscal years 2016 , 2015 , and 2014 . Advertising Costs Advertising costs are expensed in the period during which the advertising space is run. Selling, general and administrative expenses include advertising costs of $1,057,000 in 2016 , $1,277,000 in 2015 , and $1,246,000 in 2014 . Prepaid advertising costs reported as an asset on the balance sheet at January 31, 2016 and 2015 , were $234,000 and $244,000 , respectively. Product Warranty Expense The Company provides a product warranty on most products. The standard warranty offered on products sold through January 31, 2005 is five years. Effective February 1, 2005, the standard warranty was increased to 10 years on products sold after February 1, 2005. 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 generally provides that customers can return a defective product during the specified warranty period following purchase in exchange for a replacement product or that the Company can repair the product at no charge to the customer. The Company determines whether replacement or repair is appropriate in each circumstance. The Company uses historic data to estimate appropriate levels of warranty reserves. Because product mix, production methods, and raw material sources change over time, historic data may not always provide precise estimates for future warranty expense. The Company recorded warranty reserves of $1,000,000 and $950,000 as of January 31, 2016 and 2015 , respectively. The current portion of the warranty reserve was 600,000 for both 2016 and 2015. Self-Insurance In 2016 and 2015 , the Company was self-insured for product and general liability losses up to $250,000 per occurrence, for workers’ compensation losses up to $250,000 per occurrence, and for auto liability up to $50,000 per occurrence. Actuaries assist the Company in determining its liability for the self-insured component of claims, which have been discounted to their net present value utilizing a discount rate of 2.00% in 2016 and 0.50% in 2015 . Stock-Based Compensation Plans The Company recognizes stock-based compensation cost for shares that are expected to vest, on a straight-line basis, over the requisite service period of the award. Virco issued a 10% stock dividend or 3/2 stock split every year beginning in 1983 through 2003. Although the stock dividend had no cash consequences to the Company, the accounting methodology required for 10% dividends has affected the equity section of the balance sheet. When the Company records a 10% stock dividend, 10% of the market capitalization of the Company on the date of the declaration is reclassified from retained earnings to additional paid-in capital. During the period from 1983 through 2003, the cumulative effect of the stock dividends has been to reclassify over $122 million from retained earnings to additional paid-in capital. The equity section of the balance sheet on January 31, 2016 reflects additional paid-in capital of approximately $116 million and accumulated deficit of approximately $69 million. Other than the losses incurred during 2004-2006 and 2011-2014, the accumulated deficit is a result of the accounting reclassification, and is not the result of accumulated losses. Accumulated Other Comprehensive Income (Loss), Net of Tax The following table summarizes the changes in accumulated balances of other comprehensive income (loss) for the year ended January 31, 2016 and 2015: January 31, (in thousands) 2016 2015 Balance as of beginning of year $ (20,234 ) $ (13,980 ) Other comprehensive income (loss) before reclassifications 3,891 (7,537 ) Amounts reclassified from AOCI 2,013 1,283 Net current period other comprehensive (loss) income 5,904 (6,254 ) Balance as of end of year $ (14,330 ) $ (20,234 ) The reclassifications out of accumulated other comprehensive income (loss) of $2,013,000 and $1,283,000 for the years ended January 31, 2016 and 2015, respectively, related to amortization of actuarial losses. Revenue Recognition The Company recognizes revenue in accordance with FASB ASC Topic 605, “Revenue Recognition.” Revenue is recognized when title passes under its various shipping terms, when installation services are complete, and when collectability is reasonably assured. The Company reports sales net of sales returns and allowances, sales taxes imposed by various government authorities, cash discounts and rebate to customers. In most instances, the Company sells furniture on bids and contracts, which may include multiple elements. For sales that include freight to the customer, many sales are delivered on the same day shipped, with an average delivery being in route for 1 to 3 days. Installation, which involves carrying the furniture to the classroom and setting the desks and chairs in place, typically occurs the day the furniture is delivered. In accordance with ASC 605, 25, “Revenue Recognition - Multiple-Element Arrangements,” revenue arrangements with multiple deliverables are generally accounted for by the Company on a combined unit of accounting as our customers control our ability to deliver and install the furniture, and as a result the furniture delivery and installation are generally provided at the same time. We recognize the consideration for the combined unit of accounting once the final item has been delivered and installed. Delivery Costs For the fiscal years ended January 31, 2016 , 2015 and 2014 , shipping and classroom delivery costs of approximately $15,799,000 , $15,411,000 and $14,576,000 , respectively, were included in selling, general and administrative expenses. Accounting for 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 FASB ASC Topic 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. A valuation allowance against deferred tax assets is recorded when it is determined to be more likely than not that the asset will not be realized. |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Jan. 31, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers ("ASU 2014-09") an updated standard on revenue recognition . This ASU will supersede the revenue recognition requirements in Accounting Standards Codification Topic 605, Revenue Recognition , and most industry-specific guidance. ASU 2014-09 provides enhancements to the quality and consistency of how revenue is reported while also improving comparability in the financial statements of companies reporting using US GAAP and International Financial Reporting Standards. The core principle of the new standard is for companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which the Company expects to be entitled in exchange for those goods or services. In doing so the Company may be required to use more judgment and make more estimates than under current authoritative guidance. ASU 2014-09 will be effective for the Company in the first quarter of fiscal 2018 and may be applied on a full retrospective or modified retrospective approach. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. This standard sets forth management’s responsibility to evaluate, each reporting period, whether there is substantial doubt about our ability to continue as a going concern, and if so, to provide related footnote disclosures. The standard is effective for annual and interim reporting periods ending after December 15, 2016. We are currently evaluating this new standard and expect it to have no impact on our financial position and results of operations. In April 2015, the FASB issued an Accounting Standards Update that requires reporting entities to present debt issuance costs as a direct deduction from the face amount of that note payable presented in the balance sheet. The Accounting Standards Update is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted. A reporting entity is required to apply the amendments in the Accounting Standards Update retrospectively to all prior periods. The adoption of the Accounting Standards will have no impact on our consolidated financial statements. In July 2015, the FASB issued authoritative guidance to simplify the subsequent measurement of inventories by replacing the lower of cost or market test with a lower of cost and net realizable value test. This guidance is effective for fiscal years beginning after December 15, 2016, which will be the Company’s first quarter of fiscal 2018, and requires prospective adoption, with early adoption permitted In November 2015, the FASB issued Accounting Standard Update No. 2015-17, "Balance Sheet Classification of Deferred Taxes", an update to ASC 740, Income Taxes. Current GAAP requires an entity to separate deferred income tax liabilities and assets into current and noncurrent amounts in a classified statement of financial position. To simplify the presentation of deferred income taxes, the amendments in this Update require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by the amendments in this Update. For public business entities, the amendments in this update are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Board also decided to permit earlier application by all entities as of the beginning of any interim or annual reporting period. The Company has chosen to early adopt the Update for the year ended January 31, 2016. The Company chose to retrospectively adopt these provisions in Q4 2016, which resulted in reclassifications in our Consolidated Balance Sheet as of January 31, 2015, of $156,000 from current Deferred income taxes to long-term Deferred income taxes . In February 2016, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update (“ASU”) No. 2016-02, an updated to ASC 842, Leases. This update will require lease assets and lease liabilities to be recognized on the balance sheet and disclosure of key information about leasing arrangements. This guidance is effective for the Company commencing in the first quarter of fiscal year ending January 31, 2020 and must be adopted using a modified retrospective transition, and provides for certain practical expedients. Early adoption is permitted. The adoption of this guidance is expected to have a material impact on the Company’s consolidated financial statements or related disclosures. |
Debt
Debt | 12 Months Ended |
Jan. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt Outstanding balances (in thousands) for the Company’s long-term debt were as follows: January 31, In thousands, except per share data 2016 2015 Revolving credit line $ 6,663 $ 9,366 Other 97 153 Total debt 6,760 9,519 Less current portion 663 3,366 Non-current portion $ 6,097 $ 6,153 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”). The credit agreement has been amended twelve times subsequent to that date, which, among other things, extended the maturity date of the Credit Agreement for three years until December 22, 2019, reduced the maximum availability under the Credit Agreement by $10,250,000 to $49,750,000, modified, eliminated, or waived covenants, amended seasonal advances and established sub-lines for equipment financing. On April 4, 2016 the Company entered into Amendment No. 12, which retroactively modified the capital expenditure covenant at January 31, 2016 and established quarterly covenants for the fiscal year ending January 31, 2017, and extended the maturity to December 2019. The Credit Agreement provides the Borrowers with a secured revolving line of credit (the “Revolving Credit Facility”) of up to $49,750,000 , 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 February 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, 2019, 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 0.50% to 1.50% , and the applicable margin for Eurodollar Currency Rate loans is a percentage within a range of 1.50% to 2.50% , 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. For the year ended January 31, 2016 the Credit Agreement contained a covenant that forbid the Company from issuing dividends or making payments with respect to the Company's capital stock. As discussed above, on April 4, 2016 the Company entered into Amendment No. 12 which allows the Company to pay up to $1.3 million in cash dividends and stock repurchases. In addition, it 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, 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 January 31, 2016 the Credit Agreement required the Company to maintain: (1) a minimum tangible net worth of at least $21,346,000 for the fiscal quarter ending January 31, 2016 , (2) a minimum fixed charge coverage ratio of at least 1.00 to 1.00 for the four consecutive fiscal quarters ending January 31, 2016 , and (3) a minimum EBITDA amount of $6,137,000 for the twelve consecutive fiscal months ending January 31, 2016 . The actual results of the Company with respect to the foregoing financial covenants for the period ending January 31, 2016 were as follows: (1) the Company maintained a tangible net worth of $33,312,000 for the fiscal year ending January 31, 2016 , (2) the Company maintained a fixed charge coverage ratio of greater than 5.28 to 1.00 for the four consecutive fiscal quarters ended January 31, 2016 , and (3) the Company achieved EBITDA of $11,198,000 for the twelve consecutive fiscal months ending January 31, 2016 . 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 violation of its capital expenditure covenant for the relevant period ended January 31, 2016 . However, as noted above, on April 4, 2016 the Company entered into Amendment No. 12, which modified the capital expenditure covenant as of January 31, 2016 . The Company was in compliance with the modified covenant. 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 $12,943,000 was available for borrowing as of January 31, 2016 . As of January 31, 2016, long-term debt repayments are approximately as follows (in thousands): Year ending January 31, 2017 $ 663 2018 6,097 2019 — 2020 — 2021 — Thereafter — Management believes that the carrying value of debt approximated fair value at January 31, 2016 and 2015 , as all of the long-term debt bears interest at variable rates based on prevailing market conditions. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Jan. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement Plans | Retirement Plans Pension Plans The Company maintains three defined benefit pension plans, the Virco Employees Retirement Plan (“Employee Plan”), the Virco Important Performers Retirement Plan (“VIP Plan”), and the Non-Employee Directors Retirement Plan (“Directors Plan”). The Company and its subsidiaries cover all employees hired prior to December 31, 2003 under the Employee Plan, which is a qualified noncontributory defined benefit retirement plan. Benefits under the Employee Plan are based on years of service and career average earnings. Benefit accruals under the Employee Plan were frozen effective December 31, 2003. The Company also provides a supplementary retirement plan for certain key employees, the VIP Plan. The VIP Plan provides a benefit up to 50% of average compensation for the last five years in the VIP Plan, offset by benefits earned under the Employee Plan. Benefit accruals under the VIP Plan were frozen effective December 31, 2003. The VIP Plan benefits are secured by a life insurance program. Substantially all assets securing the VIP Plan are held in a rabbi trust. These cash surrender values are included in other assets in the consolidated balance sheets. The cash surrender values of the policies securing the VIP Plan were $3,462,000 and $3,311,000 at January 31, 2016 and 2015 , respectively. Death benefits payable under life insurance policies held by the Plan were approximately $9,391,000 and $9,486,000 at January 31, 2016 and 2015, respectively. The Company maintains a rabbi trust to hold assets related to the VIP Retirement Plan and a Split Dollar Life Insurance Plan. In April 2001, the Board of Directors established the Directors Plan, a non-qualified plan for non-employee directors of the Company. The Directors 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. Benefit accruals under the Directors Plan were frozen effective December 31, 2003. At January 31, 2016 , the Directors Plan did not hold any assets. The annual measurement date for all plans for the fiscal years ended January 31, 2016 , 2015 , and 2014 is January 31 . Effective December 31, 2003, the Company froze all future benefit accruals under the plans. Employees can continue to vest under the benefits earned to date, but no covered participants will earn additional benefits under the plan freeze. Accounting policy regarding pensions requires management to make complex and subjective estimates and assumptions relating to amounts which are inherently uncertain. Three primary economic assumptions influence the reported values of plan liabilities and pension costs. The Company takes the following factors into consideration: discount rate, assumed rate of return and rate of increase in compensation. The discount rate represents an estimate of the rate of return on a portfolio of high-quality fixed-income securities that would provide cash flows that match the expected benefit payment stream from the plans. When setting the discount rate, the Company utilizes a spot-rate yield curve developed from high-quality bonds currently available which reflects changes in rates that have occurred over the past year. This assumption is sensitive to movements in market rates that have occurred since the preceding valuation date, and therefore, may change from year to year. Because the Company froze future benefit accruals for all three defined benefit plans, the compensation increase assumption had no impact on pension expense, accumulated benefit obligation or projected benefit obligation for the period ended January 31, 2016 or 2015 . The assumed rate of return on plan assets represents an estimate of long-term returns available to investors who hold a mixture of stocks, bonds, and cash equivalent securities. When setting its expected return on plan asset assumptions, the Company considers long-term rates of return on various asset classes (both historical and forecasted, using data collected from various sources generally regarded as authoritative) in the context of expected long-term average asset allocations for its defined benefit pension plan. Two of the Company's defined benefit pension plans (the VIP Plan and the Directors Plan) are executive benefit plans that are not funded and are subject to the Company's creditors. Because these plans are not funded, the assumed rate of return has no impact on pension expense or the funded status of the plans. The Company maintains a trust for and funds the pension obligations for the Employee Plan. The Board of Directors appoints a Retirement Plan Committee that establishes a policy for investment and funding strategies. Approximately 70% of the trust assets are managed by investment advisors and held in common trust funds with the balance managed by the Retirement Plan Committee. The Retirement Plan Committee has established target asset allocations for its investment advisors, who invest the trust assets in a variety of institutional collective trust funds. The long-term asset allocation target provided to the investment advisors is 80% stock and 20% bond, with maximum allocations of 80% large cap stocks, 30% small cap stocks, and 30% international stock. The Company has established a custom benchmark derived from a variety of stock and bond indices that are weighted to approximate the asset allocation provided to the investment advisors. The investment advisors' performance is compared to the custom index as part of the evaluation of the investment advisors' performance. The Retirement Plan Committee receives monthly reports from the investment advisors and meets periodically with them to discuss investment performance. At January 31, 2016 and 2015 , the amount of the plan assets invested in bond or short-term investment funds was 23% and 14% , respectively, and the balance of the trust was held in equity funds or investments. The trust does not hold any Company stock. During 2015, the pension plans were impacted by a material decrease in discount rates and by application of a new mortality table. A reduction in the discount rate caused pension obligations to increase by $5.4 million , $1.7 million , and $0.02 million for the Employee Plan, VIP Plan, and Director Plan, respectively. It is the Company's policy to contribute adequate funds to the trust accounts to cover benefit payments under the VIP Plan and Directors Plan and to maintain the funded status of the Employee Plan at a level which is adequate to avoid significant restrictions to the Employee Plan under the Pension Protection Act of 2006. The Company contributed $1.6 million , $2.4 million , and $1.8 million , to the trust in 2016, 2015, and 2014, respectively. Contributions during fiscal year 2017 will depend upon actual investment results and benefit payments, but are anticipated to be approximately $1.4 million . During 2016, 2015, and 2014, the Company paid approximately $591,000 , $580,000 and $564,000 respectively, in benefits per year under the non-qualified plans. It is anticipated that contributions to non-qualified plans will be approximately $627,000 for 2017. At January 31, 2016, accumulated other comprehensive loss of approximately $16.8 million ( $14.3 million net of tax) is attributable to the pension plans. The following tables set forth (in thousands) the funded status of the Company’s pension plans at January 31, 2016 , and 2015 : Employee Plan VIP Plan Directors Plan 1/31/2016 1/31/2015 1/31/2016 1/31/2015 1/31/2016 1/31/2015 Change in Benefit Obligation Benefit obligation at beg. of year $ 37,708 $ 32,069 $ 10,104 $ 7,662 $ 428 $ 439 Service cost — — — — — — Interest cost 1,147 1,260 343 350 13 17 Participant contributions — — — — Amendments — — — — Actuarial losses (gains) (4,256 ) 5,962 (1,209 ) 2,636 (107 ) 8 Plan settlement (1,380 ) (1,071 ) — — Benefits paid (560 ) (512 ) (537 ) (544 ) (54 ) (36 ) Benefit obligation at end of year $ 32,659 $ 37,708 $ 8,701 $ 10,104 $ 280 $ 428 Change in Plan Assets Fair value at beg. of year $ 21,187 $ 18,168 $ — $ — $ — $ — Actual return on plan assets (974 ) 2,172 — — — — Company contributions 1,575 2,430 537 544 54 36 Settlements (1,380 ) (1,071 ) — — Benefits paid (560 ) (512 ) (537 ) (544 ) (54 ) (36 ) Fair value at end of year $ 19,848 $ 21,187 $ — $ — $ — $ — Funded Status Unfunded status of the plan $ (12,811 ) $ (16,521 ) $ (8,701 ) $ (10,104 ) $ (280 ) $ (428 ) Amounts Recognized in Statement of Financial Position Current liabilities — — (593 ) (613 ) (34 ) — Non-current liabilities (12,811 ) (16,521 ) (8,108 ) (9,491 ) (246 ) (428 ) Accrued benefit cost $ (12,811 ) $ (16,521 ) $ (8,701 ) $ (10,104 ) $ (280 ) $ (428 ) Amounts Recognized in Statement of Financial Position and Operations Accrued benefit liability $ (12,811 ) $ (16,521 ) $ (8,701 ) $ (10,104 ) $ (280 ) $ (428 ) Accumulated other comp. loss (gain) 13,889 17,992 3,023 4,716 (144 ) (37 ) Net amount recognized $ 1,078 $ 1,471 $ (5,678 ) $ (5,388 ) $ (424 ) $ (465 ) Items not yet Recognized as a Component of Net Periodic Pension Expense, Included in AOCI Unrecognized net actuarial loss (gain) $ 13,889 $ 17,992 $ 3,023 $ 4,716 $ (144 ) $ (37 ) Unamortized prior service costs — — — — — — Net initial asset recognition — — — — — — $ 13,889 $ 17,992 $ 3,023 $ 4,716 $ (144 ) $ (37 ) Employee Plan VIP Plan Directors Plan 1/31/2016 1/31/2015 1/31/2016 1/31/2015 1/31/2016 1/31/2015 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income Net loss (gain) $ (1,986 ) $ 4,893 $ (1,209 ) $ 2,636 $ (107 ) $ 8 Prior service cost — — Amortization of (loss) gain (2,117 ) (1,136 ) (484 ) (178 ) — 31 Amortization of prior service cost (credit) — — — — — — Amortization of initial asset — — — — — — Total recognized in other comprehensive (loss) income $ (4,103 ) $ 3,757 $ (1,693 ) $ 2,458 $ (107 ) $ 39 Items to be Recognized as a Component of Periodic Pension Cost for next fiscal year Prior service cost $ — $ — $ — $ — $ — $ — Net actuarial loss (gain) 1,162 1,529 310 484 (116 ) — $ 1,162 $ 1,529 $ 310 $ 484 $ (116 ) $ — Supplemental Data Projected benefit obligation $ 32,659 $ 37,708 $ 8,701 $ 10,104 $ 280 $ 428 Accumulated benefit obligation 32,659 37,708 8,701 10,104 280 428 Fair value of plan assets 19,848 21,187 — — — — Components of Net Cost Service cost $ — $ — $ — $ — $ — $ — Interest cost 1,147 1,260 343 350 13 17 Expected return on plan assets (1,295 ) (1,102 ) — — — — Amortization of transition amount — — — — — — Recognized (gain) loss due to settlement 587 — — — — — Amortization of prior service cost — — — — — Recognized net actuarial loss 1,529 1,136 484 178 — (31 ) Benefit cost $ 1,968 $ 1,294 $ 827 $ 528 $ 13 $ (14 ) Estimated Future Benefit Payments FYE 01-31-2017 $ 6,194 $ 593 $ 34 FYE 01-31-2018 1,503 294 32 FYE 01-31-2019 1,797 321 31 FYE 01-31-2020 1,597 341 29 FYE 01-31-2021 1,601 328 27 FYE 01-31-2022 to 2026 9,455 1,911 103 Total $ 22,147 $ 3,788 $ 256 Weighted Average Assumptions to Determine Benefit Obligations at Year-End Discount rate 4.00 % 3.25 % 4.25 % 3.50 % 3.25 % 3.25 % Rate of compensation increase N/A N/A N/A N/A N/A N/A Weighted Average Assumptions to Determine Net Periodic Pension Cost Discount rate 3.25 % 4.25 % 3.50 % 4.75 % 3.25 % 4.25 % Expected return on plan assets 6.50 % 6.50 % N/A N/A N/A N/A Rate of compensation increase N/A N/A N/A N/A N/A N/A Fair Value Measurements of Plan Assets Employee Plan 1/31/2016 1/31/2015 Level 1 Measurement Cash & Cash Equivalents $ — $ 528 Common Stock 5,831 6,476 Total Level 1 $ 5,831 $ 7,004 Level 2 Measurement PNC Govt Money Fund $ 1,087 $ — Vanguard Total Bond 3,478 — Ishares Russell 2000 1,276 — Vanguard All World 1,668 — Blackrock S&P Index 5,410 — Bond Index Fund — 427 Core Bond CIT Fund — 1,457 US Aggregate Bond Index Fund — 627 Large Cap Growth Index Fund — 3,610 Large Cap Value Index Fund — 3,561 Russell 2000 Index Fund — 1,499 International Equity Index Fund — 1,653 Managed Investment Fund 1,098 1,075 Vanguard MSCI Emerging Markets Fund — 274 Total Level 2 $ 14,017 $ 14,183 Level 3 Measurement None N/A N/A 401(k) Retirement Plan The Company’s retirement plan, which covers all U.S. employees, allows participants to defer from 1% to 50% of their eligible compensation through a 401(k) retirement program. Through December 31, 2001, the plan included an employee stock ownership component. The plan continues to include Virco stock as one of the investment options. At January 31, 2016 and 2015 , the plan held 634,003 shares and 689,284 shares of Virco stock, respectively. For the fiscal years ended January 31, 2016 , the Company made a small contribution to employees enrolled in the Plan in connection with an auto enrollment program. For the fiscal years ended January 31, 2016 , 2015 and 2014 there was no employer match and therefore no compensation cost to the Company. Life Insurance The Company provided post-retirement life insurance to certain retired employees under the Dual Option Life Insurance Plan. Effective January 2004, the Company terminated this plan for active employees. The Company has purchased split-dollar life insurance on the lives of the covered participants. Death benefits due to participants are approximately $2,650,000 . Cash surrender values of these policies, which are included in other assets in the consolidated balance sheets, were $2,555,000 and $2,924,000 at January 31, 2016 and 2015 , respectively. Death benefits payable under the policies were approximately $4,951,000 and $5,696,000 at January 31, 2016 and 2015 , respectively. Death benefits received under the Plan in excess of the benefit obligation will be retained in the trust and used to secure and fund benefits payable under the VIP Pension Plan. The Company maintains a rabbi trust to hold assets related to the Dual Option Life Insurance Plan. All assets securing this plan are held in the rabbi trust. The following sets forth the Company's change in death benefits payable during the years ended January 31, 2016 and 2015: 1/31/2016 1/31/2015 Liability beginning of year $ 2,388,000 $ 2,401,000 Accretion expense 78,000 104,000 Death benefits paid (300,000 ) (117,000 ) Liability end of year $ 2,166,000 $ 2,388,000 |
Stock-Based Compensation and St
Stock-Based Compensation and Stockholders' Rights | 12 Months Ended |
Jan. 31, 2016 | |
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 75,174 awards during fiscal 2016. As of January 31, 2016 , there were approximately 803,520 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 no awards during fiscal 2016 . As of January 31, 2016 , there were approximately 13,075 shares available for future issuance under the 2007 Plan. Accounting for the Plans Restricted Stock Unit Awards The following table presents a summary of restricted stock and stock unit awards: Expense for 12 months ended Unrecognized Compensation Cost at Date of Grants Units Granted Terms of Vesting 1/31/2016 1/31/2015 1/31/2014 1/31/2016 2011 Stock Incentive Plan 06/22/2015 48,000 4 years $ 22,000 $ — $ — $ 110,000 06/22/2015 27,174 1 year 50,000 — — 25,000 06/24/2014 28,626 1 year 25,000 49,000 — — 06/24/2014 490,000 5 years 246,000 171,000 — 801,000 12/03/2013 10,000 1 year 13,000 6,000 — 12/03/2013 18,000 5 years — — 1,000 — 06/25/2013 71,430 1 year 50,000 100,000 — 06/19/2012 31,250 1 year — — 17,000 — 06/19/2012 520,000 5 years 150,000 157,000 160,000 196,000 2007 Stock Incentive Plan 06/19/2012 78,125 1 year — — 41,000 — 03/21/2012 40,000 Immediate — — — — 06/21/2011 68,960 1 year — — — — 06/16/2009 382,500 5 years 62,000 198,000 — 06/19/2007 262,500 5 years — — — — Totals for the period $ 493,000 $ 502,000 $ 523,000 $ 1,132,000 A summary of the Company’s restricted stock unit awards activity, and related information for the following years ended January 31, is as follows: 2016 2015 2014 Restricted stock units Weighted- average fair value of restricted stock units Restricted stock units Weighted- average fair value of restricted stock units Restricted stock units Weighted- average fair value of restricted stock units Outstanding at beginning of year 812,626 $ 2.24 544,430 $ 1.87 743,375 $ 1.89 Granted 75,174 2.76 518,626 2.61 99,430 2.07 Vested (212,626 ) 2.79 (232,430 ) 2.38 (260,375 ) 2.01 Forfeited (18,000 ) 2.74 (18,000 ) 2.61 (38,000 ) 2.00 Outstanding at end of year 657,174 2.34 812,626 2.24 544,430 1.87 Weighted-average fair value of restricted stock units granted during the year $ 2.76 $ 2.61 $ 2.07 The aggregate fair value of restricted stock unit awards vested during fiscal years 2016, 2015 and 2014 was $593,000 , $553,000 and $523,000 , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The income tax expense (benefit) for the last three years is reconciled to the statutory federal income tax rate using the liability method as follows (in thousands): Year ended January 31, 2016 2015 2014 Statutory $ 1,587 $ 285 $ (929 ) State taxes (net of federal tax) 303 144 (47 ) Change in valuation allowance (2,214 ) (248 ) (253 ) State rate adjustment 168 (8 ) 82 Change in unrecognized tax benefits (3 ) (19 ) (32 ) Expirations of attributes 229 65 100 Other 48 (150 ) 76 Income tax expense (benefit) $ 118 $ 69 $ (1,003 ) Significant components of the expense (benefit) for income taxes (in thousands) attributed to continuing operations are as follows: Year ended January 31, 2016 2015 2014 Current Federal $ 1 $ — $ 1 State 40 35 (24 ) 41 35 (23 ) Deferred Federal 1,567 232 (753 ) State 724 48 23 2,291 280 (730 ) Change in Valuation Allowance (2,214 ) (246 ) (250 ) 77 34 (980 ) Income tax expense (benefit) $ 118 $ 69 $ (1,003 ) Deferred tax assets and liabilities (in thousands) are comprised of the following: Year ended January 31, 2016 2015 Deferred tax assets Accrued vacation and sick leave $ 1,106 $ 1,003 Retirement plans 8,837 10,887 Insurance reserves 791 830 Warranty 535 487 Net operating loss carryforwards 10,393 13,303 Intangibles 25 145 Inventory 1,582 1,472 Other 859 595 $ 24,128 $ 28,722 Deferred tax liabilities Tax in excess of book depreciation $ (1,432 ) $ (1,458 ) Other (87 ) (85 ) $ (1,519 ) $ (1,543 ) Valuation allowance (21,906 ) (26,399 ) Net long term deferred tax asset $ 703 $ 780 The following table summarizes the activity related to our gross unrecognized tax benefits from February 1, 2013 to January 31, 2016 (in thousands): January 31, 2016 2015 Balances as of February 1, $ 36 $ 52 Increases related to prior year tax positions — 3 Decreases related to prior year tax positions (2 ) — Increases related to current year tax positions 5 6 Decreases relating to settlements with taxing authorities — — Decreases related to lapsing of statute of limitations (8 ) (25 ) Balance as of January 31, $ 31 $ 36 At January 31, 2016 , the Company’s unrecognized tax benefits associated with uncertain tax positions were $31,000 , of which $20,000 if recognized, would favorably affect the effective tax rate. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense which is consistent with the recognition of the items in prior reporting. The Company had recorded a liability for interest and penalties related to unrecognized tax benefits of $7,000 at January 31, 2016 , and $6,000 at January 31, 2015 . In 2016, the Company closed its IRS examination for its tax return for the year ended January 31, 2013 with no changes. The years ended January 31, 2012 , January 31, 2014 and forward remain open for examination by the IRS. The fiscal years ended January 31, 2012 and forward remain open for examination by state tax authorities. The Company is not currently under IRS or state examination. During 2015, the Company completed Texas income tax examinations of the tax years ending January 31, 2010 and 2011. The examination did not materially impact the Consolidated Statements of Operations. The specific timing of when the resolution of each tax position will be reached is uncertain. As of January 31, 2016 , it is reasonably possible that unrecognized tax benefits will decrease by $8,000 within the next 12 months due to the expiration of the statute of limitations. In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. 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. The Company considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. A valuation allowance was recorded against the majority of the net deferred tax assets totaling $21,906,000 and $26,399,000 at January 31, 2016 and 2015 , respectively. At January 31, 2016 , the Company had net operating loss carryforwards for federal and state income tax purposes, expiring at various dates through 2035. At January 31, 2016, the Company had federal and state net operating loss carryforwards of approximately $19,859,000 and $45,390,000 , respectively. |
Commitments
Commitments | 12 Months Ended |
Jan. 31, 2016 | |
Commitments [Abstract] | |
Commitments | Commitments The Company has operating leases on real property and equipment that expire at various dates. The Torrance, CA manufacturing and distribution facility is leased under a 5 -year operating lease that expires on February 28, 2020. One of the Conway, AR manufacturing facilities is leased under a 10 -year operating lease that expires on March 31, 2018. The Company leases machinery and equipment under a 5-year operating lease arrangement. The Company has the option of buying out the assets at the end of the lease period. The Company leases trucks, automobiles, and forklifts under operating leases that include certain fleet management and maintenance services. Certain of the leases contain renewal or purchase options and require payment for property taxes and insurance. The Company records rent expense on a straight-line basis based on contractual lease payments. Allowances from lessors for tenant improvements have been included in the straight-line rent expense for applicable locations. Tenant improvements are capitalized and depreciated over the remaining life of the applicable lease. Minimum future lease payments (in thousands) for operating leases in effect as of January 31, 2016 , are as follows: Year ending January 31, 2017 $ 4,266 2018 4,548 2019 4,177 2020 4,157 2021 347 Thereafter — Total minimum lease payments 17,495 Less sublease revenues — $ 17,495 Rent expense relating to operating leases was as follows (in thousands): Year ended January 31, 2016 $ 5,681 2015 6,025 2014 6,555 The Company has issued purchase commitments for raw materials at January 31, 2016 , of approximately $12,131,000 . There were no commitments in excess of normal operating requirements. |
Contingencies
Contingencies | 12 Months Ended |
Jan. 31, 2016 | |
Contingencies [Abstract] | |
Contingencies | Contingencies The Company and other furniture manufacturers are subject to federal, state and local laws and regulations relating to the discharge of materials into the environment and the generation, handling, storage, transportation and disposal of waste and hazardous materials. The Company has expended, and expects to continue to spend, significant amounts in the future to comply with environmental laws. Normal recurring expenses relating to operating the Company factories in a manner that meets or exceeds environmental laws are matched to the cost of producing inventory. Despite the Company’s significant dedication to operating in compliance with applicable laws, there is a risk that the Company could fail to comply with a regulation or that applicable laws and regulations change. On these occasions, the Company records liabilities for remediation costs when remediation costs are probable and can be reasonably estimated. The Company is subject to contingencies pursuant to environmental laws and regulations that in the future may require the Company to take action to correct the effects on the environment of prior disposal practices or releases of chemical or petroleum substances by the Company or other parties. The Company has a self-insured retention for product and general liability losses up to $250,000 per occurrence, workers’ compensation liability losses up to $250,000 per occurrence, and for automobile liability losses up to $50,000 per occurrence. The Company has purchased insurance to cover losses in excess of the retention up to a limit of $30,000,000 . The Company has obtained an actuarial estimate of its total expected future losses for liability claims and recorded a liability equal to the net present value of $2,050,000 and $2,130,000 at January 31, 2016 and 2015 , respectively, based upon the Company’s estimated payout period of five years using a 2.0% and 0.5% discount rate, respectively. Workers’ compensation, automobile, general and product liability claims may be asserted in the future for events not currently known by management. Management does not anticipate that any related settlement, after consideration of the existing reserve for claims incurred and potential insurance recovery, would have a material adverse effect on the Company’s financial position, results of operations or cash flows. Estimated payments under the self-insurance programs are as follows (in thousands): Year ending January 31, 2017 $ 400 2018 375 2019 375 2020 375 2021 375 Thereafter 170 Total 2,070 Discount to net present value (20 ) $ 2,050 The Company and its subsidiaries are defendants in various legal proceedings resulting from operations in the normal course of business. It is the opinion of management, in consultation with legal counsel, that the ultimate outcome of all such matters will not materially affect the Company’s financial position, results of operations or cash flows. |
Warranty
Warranty | 12 Months Ended |
Jan. 31, 2016 | |
Standard Product Warranty Disclosure [Abstract] | |
Warranty | Warranty 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. The following is a summary of the Company’s warranty-claim activity during 2016 and 2015 . January 31, (In thousands) 2016 2015 Beginning balance $ 950 $ 1,000 Provision for current year 675 650 Provision for (benefits from) prior year (250 ) (258 ) Costs incurred (375 ) (442 ) Ending balance $ 1,000 $ 950 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jan. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The Company has evaluated events subsequent to January 31, 2016, to assess the need for potential recognition or disclosure in this report. 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 require recognition or additional disclosure in the financial statements except for Amendment No. 12, dated April 4, 2016 to the Revolving Credit and Security Agreement, dated as of December 22, 2011, which is disclosed in the notes to the consolidated financial statements. |
Quarterly Results (Unaudited)
Quarterly Results (Unaudited) | 12 Months Ended |
Jan. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results (Unaudited) | Quarterly Results (Unaudited) The Company’s quarterly results for the years ended January 31, 2016 and 2015 , as adjusted, are summarized as follows (in thousands, except per share data): Q1 Q2 Q3 Q4 Year ended January 31, 2016 Net sales $ 23,048 $ 61,072 $ 64,981 $ 19,494 Gross profit 8,194 23,996 23,210 4,210 Net (loss) income (3,178 ) 7,450 6,003 (5,726 ) Per common share Net (loss) income* Basic $ (0.21 ) $ 0.50 $ 0.40 $ (0.38 ) Assuming dilution (0.21 ) 0.49 0.39 (0.38 ) Year ended January 31, 2015 Net sales $ 23,383 $ 53,042 $ 62,273 $ 25,354 Gross profit 8,030 20,696 20,672 6,000 Net (loss) income (3,855 ) 5,203 4,632 (5,131 ) Per common share Net (loss) income* Basic $ (0.26 ) $ 0.35 $ 0.31 $ (0.35 ) Assuming dilution (0.26 ) 0.35 0.31 (0.35 ) ______________________________ * 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. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts (Notes) | 12 Months Ended |
Jan. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts and Reserves | VIRCO MFG. CORPORATION AND SUBSIDIARIES SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS AND RESERVES FOR THE YEARS ENDED JANUARY 31, 2016, 2015 AND 2014 (In Thousands) Col. A Col. B Col. C Col. E Col. F Allowance for doubtful accounts for the period ended: January 31, 2016 $ 200 $ 141 $ 141 $ 200 January 31, 2015 $ 200 $ 115 $ 115 $ 200 January 31, 2014 $ 275 $ 3 $ 78 $ 200 Warranty reserve for the period ended: January 31, 2016 $ 950 $ 375 $ 325 $ 1,000 January 31, 2015 $ 1,000 $ 442 $ 492 $ 950 January 31, 2014 $ 1,000 $ 380 $ 380 $ 1,000 Product, general, workers’ compensation and automobile liability reserves for the period ended: January 31, 2016 $ 2,130 $ 975 $ 1,290 $ 1,815 January 31, 2015 $ 2,425 $ 204 $ 499 $ 2,130 January 31, 2014 $ 2,985 $ 1,546 $ 2,106 $ 2,425 Deferred tax valuation allowance for the period ended: January 31, 2016 $ 26,399 $ — $ 4,493 $ 21,906 January 31, 2015 $ 24,210 $ 2,189 $ — $ 26,399 January 31, 2014 $ 24,601 $ — $ 391 $ 24,210 All other schedules for which provision is made in the applicable accounting regulation of the Securities and Exchange Commission are not required under the related instructions, are inapplicable, or are included in the Financial Statements or Notes thereto, and therefore are not required to be presented under this Item. |
Summary of Business and Signi21
Summary of Business and Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 31, 2016 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | The consolidated financial statements include the accounts of Virco Mfg. Corporation and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Reclassifications | Certain reclassifications have been made to the prior year financial information to conform with the current period presentation. |
Management Use of Estimates | Preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities - and disclosure of contingent assets and liabilities - at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Significant estimates made by management include, but are not limited to, valuation of inventory; deferred tax assets and liabilities; useful lives of property, plant, and equipment; liabilities under pension, warranty, self-insurance, and environmental claims, revenue recognition; and the accounts receivable allowance for doubtful accounts. Actual results could differ from these estimates. |
Fiscal Year End | Fiscal years 2016 , 2015 , and 2014 refer to the fiscal years ended January 31, 2016 , 2015 and 2014 , respectively. |
Concentration of Credit Risk | Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of accounts receivable. The Company performs ongoing credit evaluations of its customers and maintains allowances for potential credit losses. Sales to the Company’s recurring customers are generally made on open account with terms consistent with the industry. Credit is extended based on an evaluation of the customer’s financial condition and payment history. Past due accounts are determined based on how recently payments have been made in relation to the terms granted. Amounts are written off against the allowance in the period that the Company determines that the receivable is not collectable. The Company purchases insurance on receivables from certain commercial customers to minimize the Company’s credit risk. The Company does not typically obtain collateral to secure credit risk. Customers with inadequate credit are required to provide cash in advance or letters of credit. The Company does not assess interest on receivable balances. A substantial percentage of the Company’s receivables come from low-risk government entities. No customer exceeded 10% of the Company’s sales for each of the three years ended January 31, 2016 . Foreign sales were approximately 6.7% , 7.7% and 7.5% of the Company’s sales for fiscal years 2016 , 2015 and 2014 , respectively. No single customer accounted for more than 10% of the Company’s accounts receivable at January 31, 2016 or 2015 . Because of the short time between shipment and collection, the net carrying value of receivables approximates the fair value for these assets. |
Fair Values of Financial Instruments | The fair values of the Company’s cash, accounts receivable, and accounts payable approximate their carrying amounts due to their short-term nature. Financial assets and liabilities measured at fair value on a recurring basis are classified in one of the three following categories, which are described below: Level 1 — Valuations based on unadjusted quoted prices for identical assets in an active market. Level 2 — Valuations based on quoted prices in markets where trading occurs infrequently or whose values are based on quoted prices of instruments with similar attributes in active markets. Level 3 — Valuations based on inputs that are unobservable and involve management judgment and our own assumptions about market participants and pricing. Financial assets measured at fair value on a recurring basis include assets associated with the Virco Employees Retirement Plan. |
Inventories | Inventory is valued at the lower of cost or Net Realizable Value (determined on a first-in, first-out basis) and includes material, labor, and factory overhead. The Company maintains allowances for estimated slow moving and obsolete inventory to reflect the difference between the cost of inventory and the estimated market value. Allowances for slow moving and obsolete inventory are determined through a physical inspection of the product in connection with a physical inventory, a review of slow-moving product, and consideration of active marketing programs. The market for education furniture is traditionally driven by value, not style, and the Company has not typically incurred significant obsolescence expenses. If market conditions are less favorable than those anticipated by management, additional allowances may be required. Due to reductions in sales volume in the past years, the Company’s manufacturing facilities are operating at reduced levels of capacity. The Company records the cost of excess capacity as a period expense, not as a component of capitalized inventory valuation. The following table presents an updated breakdown of the Company’s net inventory (in thousands) as of January 31, 2016 and 2015: January 31, 2016 2015 Finished goods 10,233 7,821 WIP 13,443 10,181 Raw materials 10,927 8,676 Inventories, net 34,603 26,678 In connection with the preparation of the consolidated financial statements, the Company determined that its reserve for excess and obsolete inventory had previously been applied exclusively to the Finished goods portion of inventory, when it should have been applied against Finished goods, Work in process, and Raw materials and supplies, based on the identification of the specific parts determined to be held in excess or obsolete. The Company evaluated the impact of this error on prior year financial statements and concluded that it was immaterial for the year ended January 31, 2015, and for all interim periods within the year. While the amounts included in the prior year disclosure were considered to be immaterial, the Company elected to revise the disclosure of previously reported amounts to be consistent with the presentation for the year ended January 31, 2016. The changes resulted in no change to Inventories, net. The changes resulted in an increase to Finished goods of $2,219,000 , a decrease to Work in process of $1,306,000 , and a decrease to Raw materials and supplies of $913,000 as of January 31, 2015. |
Property, Plant and Equipment | Property, plant and equipment are stated at cost, less accumulated depreciation. Depreciation and amortization are computed on the straight-line method for financial reporting purposes based upon the following estimated useful lives: Land improvements 5 to 25 years Buildings and building improvements 5 to 40 years Machinery and equipment 3 to 10 years Leasehold improvements shorter of lease or useful life The Company did not capitalize interest costs as part of the acquisition cost of property, plant and equipment for the years ended January 31, 2016 , 2015 and 2014 . The Company capitalizes the cost of significant repairs that extend the life of an asset. Repairs and maintenance that do not extend the life of an asset are expensed as incurred. Repair and maintenance expense was $1,759,000 , $1,616,000 and $1,691,000 for fiscal years ended January 31, 2016 , 2015 and 2014 , respectively. The Company subleased space at one of its facilities on a month-to-month basis during 2016 , 2015 , and 2014 . Rental income was $51,000 , $40,000 , $40,000 for fiscal years ended January 31, 2016 , 2015 , and 2014 respectively. The Company has established asset retirement obligations related to leased manufacturing facilities in accordance with Financial Accounting Standards Board (FASB) Accounting Standard Codification (ASC) Topic 410, “Asset Retirement and Environmental Obligations.” Accrued asset retirement obligations are recorded at net present value and discounted over the life of the lease. Asset retirement obligations, included in other non-current liabilities were $581,000 and $572,000 at January 31, 2016 and 2015 , respectively. January 31, 2016 2015 Balance at beginning of period $ 572,000 $ 563,000 Decrease in obligation — — Accretion expense 9,000 9,000 Balance at end of period $ 581,000 $ 572,000 |
Impairment of Long-Lived Assets | An impairment loss is recognized in the event facts and circumstances indicate the carrying amount of a long-lived asset may not be recoverable, and an estimate of future undiscounted cash flows is less than the carrying amount of the asset. Impairment is recorded based on the excess of the carrying amount of the impaired asset over the fair value. Generally, fair value represents the Company’s expected future cash flows from the use of an asset or group of assets, discounted at a rate commensurate with the risks involved. There were no impairments in fiscal years 2016, 2015 and 2014. |
Net Loss per Share | Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding. Diluted net income (loss) per share is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding plus the dilution effect of stock grants. The following table sets forth the computation of basic and diluted income (loss) per share: In thousands, except per share data 2016 2015 2014 Numerator Net income (loss) $ 4,549 $ 849 $ (1,730 ) Denominator Weighted-average shares — basic 14,914 14,756 14,620 Dilutive effect of equity incentive plans 204 231 — Weighted-average shares — diluted (1) 15,118 14,987 14,620 Net income (loss) per common share Basic $ 0.31 $ 0.06 $ (0.12 ) Diluted 0.30 0.06 (0.12 ) ___________________ (1) For fiscal year 2014, approximately 180,000 shares of common stock equivalents were excluded in the computation of diluted net income per share, as the effect would be anti-dilutive. |
Environmental Costs | The Company is subject to numerous environmental laws and regulations in the various jurisdictions in which it operates that (a) govern operations that may have adverse environmental effects, such as the discharge of materials into the environment, as well as handling, storage, transportation and disposal practices for solid and hazardous wastes, and (b) impose liability for response costs and certain damages resulting from past and current spills, disposals or other releases of hazardous materials. Normal, recurring expenses related to operating the Company's factories in a manner that meets or exceeds environmental laws and regulations are matched to the cost of producing inventory. Despite our efforts to comply with existing laws and regulations, compliance with more stringent laws or regulations, or stricter interpretation of existing laws, may require additional expenditures by us, some of which may be material. We reserve amounts for such matters when expenditures are probable and reasonably estimable. Costs incurred to investigate and remediate environmental waste are expensed, unless the remediation extends the useful life of the assets employed at the site. At January 31, 2016 and 2015 , the Company had not capitalized any remediation costs and had not recorded any amortization expense in fiscal years 2016 , 2015 , and 2014 . |
Advertising Costs | Advertising costs are expensed in the period during which the advertising space is run. Selling, general and administrative expenses include advertising costs of $1,057,000 in 2016 , $1,277,000 in 2015 , and $1,246,000 in 2014 . Prepaid advertising costs reported as an asset on the balance sheet at January 31, 2016 and 2015 , were $234,000 and $244,000 , respectively. |
Product Warranty Expense | The Company provides a product warranty on most products. The standard warranty offered on products sold through January 31, 2005 is five years. Effective February 1, 2005, the standard warranty was increased to 10 years on products sold after February 1, 2005. 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 generally provides that customers can return a defective product during the specified warranty period following purchase in exchange for a replacement product or that the Company can repair the product at no charge to the customer. The Company determines whether replacement or repair is appropriate in each circumstance. The Company uses historic data to estimate appropriate levels of warranty reserves. Because product mix, production methods, and raw material sources change over time, historic data may not always provide precise estimates for future warranty expense. The Company recorded warranty reserves of $1,000,000 and $950,000 as of January 31, 2016 and 2015 , respectively. The current portion of the warranty reserve was 600,000 for both 2016 and 2015. |
Self-Insurance | In 2016 and 2015 , the Company was self-insured for product and general liability losses up to $250,000 per occurrence, for workers’ compensation losses up to $250,000 per occurrence, and for auto liability up to $50,000 per occurrence. Actuaries assist the Company in determining its liability for the self-insured component of claims, which have been discounted to their net present value utilizing a discount rate of 2.00% in 2016 and 0.50% in 2015 . |
Share-based Compensation Plans | The Company recognizes stock-based compensation cost for shares that are expected to vest, on a straight-line basis, over the requisite service period of the award. Virco issued a 10% stock dividend or 3/2 stock split every year beginning in 1983 through 2003. Although the stock dividend had no cash consequences to the Company, the accounting methodology required for 10% dividends has affected the equity section of the balance sheet. When the Company records a 10% stock dividend, 10% of the market capitalization of the Company on the date of the declaration is reclassified from retained earnings to additional paid-in capital. During the period from 1983 through 2003, the cumulative effect of the stock dividends has been to reclassify over $122 million from retained earnings to additional paid-in capital. The equity section of the balance sheet on January 31, 2016 reflects additional paid-in capital of approximately $116 million and accumulated deficit of approximately $69 million. Other than the losses incurred during 2004-2006 and 2011-2014, the accumulated deficit is a result of the accounting reclassification, and is not the result of accumulated losses. |
Accumulated Other Comprehensive Income (Loss), Net of Tax | Accumulated Other Comprehensive Income (Loss), Net of Tax The following table summarizes the changes in accumulated balances of other comprehensive income (loss) for the year ended January 31, 2016 and 2015: January 31, (in thousands) 2016 2015 Balance as of beginning of year $ (20,234 ) $ (13,980 ) Other comprehensive income (loss) before reclassifications 3,891 (7,537 ) Amounts reclassified from AOCI 2,013 1,283 Net current period other comprehensive (loss) income 5,904 (6,254 ) Balance as of end of year $ (14,330 ) $ (20,234 ) The reclassifications out of accumulated other comprehensive income (loss) of $2,013,000 and $1,283,000 for the years ended January 31, 2016 and 2015, respectively, related to amortization of actuarial losses. |
Revenue Recognition | The Company recognizes revenue in accordance with FASB ASC Topic 605, “Revenue Recognition.” Revenue is recognized when title passes under its various shipping terms, when installation services are complete, and when collectability is reasonably assured. The Company reports sales net of sales returns and allowances, sales taxes imposed by various government authorities, cash discounts and rebate to customers. In most instances, the Company sells furniture on bids and contracts, which may include multiple elements. For sales that include freight to the customer, many sales are delivered on the same day shipped, with an average delivery being in route for 1 to 3 days. Installation, which involves carrying the furniture to the classroom and setting the desks and chairs in place, typically occurs the day the furniture is delivered. In accordance with ASC 605, 25, “Revenue Recognition - Multiple-Element Arrangements,” revenue arrangements with multiple deliverables are generally accounted for by the Company on a combined unit of accounting as our customers control our ability to deliver and install the furniture, and as a result the furniture delivery and installation are generally provided at the same time. We recognize the consideration for the combined unit of accounting once the final item has been delivered and installed. |
Delivery Costs | For the fiscal years ended January 31, 2016 , 2015 and 2014 , shipping and classroom delivery costs of approximately $15,799,000 , $15,411,000 and $14,576,000 , respectively, were included in selling, general and administrative expenses. |
Accounting for Income Taxes | Accounting for 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 FASB ASC Topic 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. A valuation allowance against deferred tax assets is recorded when it is determined to be more likely than not that the asset will not be realized. |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 12 Months Ended |
Jan. 31, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers ("ASU 2014-09") an updated standard on revenue recognition . This ASU will supersede the revenue recognition requirements in Accounting Standards Codification Topic 605, Revenue Recognition , and most industry-specific guidance. ASU 2014-09 provides enhancements to the quality and consistency of how revenue is reported while also improving comparability in the financial statements of companies reporting using US GAAP and International Financial Reporting Standards. The core principle of the new standard is for companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which the Company expects to be entitled in exchange for those goods or services. In doing so the Company may be required to use more judgment and make more estimates than under current authoritative guidance. ASU 2014-09 will be effective for the Company in the first quarter of fiscal 2018 and may be applied on a full retrospective or modified retrospective approach. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. This standard sets forth management’s responsibility to evaluate, each reporting period, whether there is substantial doubt about our ability to continue as a going concern, and if so, to provide related footnote disclosures. The standard is effective for annual and interim reporting periods ending after December 15, 2016. We are currently evaluating this new standard and expect it to have no impact on our financial position and results of operations. In April 2015, the FASB issued an Accounting Standards Update that requires reporting entities to present debt issuance costs as a direct deduction from the face amount of that note payable presented in the balance sheet. The Accounting Standards Update is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted. A reporting entity is required to apply the amendments in the Accounting Standards Update retrospectively to all prior periods. The adoption of the Accounting Standards will have no impact on our consolidated financial statements. In July 2015, the FASB issued authoritative guidance to simplify the subsequent measurement of inventories by replacing the lower of cost or market test with a lower of cost and net realizable value test. This guidance is effective for fiscal years beginning after December 15, 2016, which will be the Company’s first quarter of fiscal 2018, and requires prospective adoption, with early adoption permitted In November 2015, the FASB issued Accounting Standard Update No. 2015-17, "Balance Sheet Classification of Deferred Taxes", an update to ASC 740, Income Taxes. Current GAAP requires an entity to separate deferred income tax liabilities and assets into current and noncurrent amounts in a classified statement of financial position. To simplify the presentation of deferred income taxes, the amendments in this Update require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by the amendments in this Update. For public business entities, the amendments in this update are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Board also decided to permit earlier application by all entities as of the beginning of any interim or annual reporting period. The Company has chosen to early adopt the Update for the year ended January 31, 2016. The Company chose to retrospectively adopt these provisions in Q4 2016, which resulted in reclassifications in our Consolidated Balance Sheet as of January 31, 2015, of $156,000 from current Deferred income taxes to long-term Deferred income taxes . In February 2016, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update (“ASU”) No. 2016-02, an updated to ASC 842, Leases. This update will require lease assets and lease liabilities to be recognized on the balance sheet and disclosure of key information about leasing arrangements. This guidance is effective for the Company commencing in the first quarter of fiscal year ending January 31, 2020 and must be adopted using a modified retrospective transition, and provides for certain practical expedients. Early adoption is permitted. The adoption of this guidance is expected to have a material impact on the Company’s consolidated financial statements or related disclosures. |
Summary of Business and Signi23
Summary of Business and Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Inventory, Net | The following table presents an updated breakdown of the Company’s net inventory (in thousands) as of January 31, 2016 and 2015: January 31, 2016 2015 Finished goods 10,233 7,821 WIP 13,443 10,181 Raw materials 10,927 8,676 Inventories, net 34,603 26,678 |
Depreciation and amortization computed on the straight-line method for financial reporting purposes based upon estimated useful lives | Property, plant and equipment are stated at cost, less accumulated depreciation. Depreciation and amortization are computed on the straight-line method for financial reporting purposes based upon the following estimated useful lives: Land improvements 5 to 25 years Buildings and building improvements 5 to 40 years Machinery and equipment 3 to 10 years Leasehold improvements shorter of lease or useful life |
Asset retirement obligations related to leased manufacturing facilities | January 31, 2016 2015 Balance at beginning of period $ 572,000 $ 563,000 Decrease in obligation — — Accretion expense 9,000 9,000 Balance at end of period $ 581,000 $ 572,000 |
Computation of basic and diluted loss per share | The following table sets forth the computation of basic and diluted income (loss) per share: In thousands, except per share data 2016 2015 2014 Numerator Net income (loss) $ 4,549 $ 849 $ (1,730 ) Denominator Weighted-average shares — basic 14,914 14,756 14,620 Dilutive effect of equity incentive plans 204 231 — Weighted-average shares — diluted (1) 15,118 14,987 14,620 Net income (loss) per common share Basic $ 0.31 $ 0.06 $ (0.12 ) Diluted 0.30 0.06 (0.12 ) ___________________ (1) For fiscal year 2014, approximately 180,000 shares of common stock equivalents were excluded in the computation of diluted net income per share, as the effect would be anti-dilutive. |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the changes in accumulated balances of other comprehensive income (loss) for the year ended January 31, 2016 and 2015: January 31, (in thousands) 2016 2015 Balance as of beginning of year $ (20,234 ) $ (13,980 ) Other comprehensive income (loss) before reclassifications 3,891 (7,537 ) Amounts reclassified from AOCI 2,013 1,283 Net current period other comprehensive (loss) income 5,904 (6,254 ) Balance as of end of year $ (14,330 ) $ (20,234 ) The reclassifications out of accumulated other comprehensive income (loss) of $2,013,000 and $1,283,000 for the years ended January 31, 2016 and 2015, respectively, related to amortization of actuarial losses. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Debt Disclosure [Abstract] | |
Outstanding balances of long-term debt | Outstanding balances (in thousands) for the Company’s long-term debt were as follows: January 31, In thousands, except per share data 2016 2015 Revolving credit line $ 6,663 $ 9,366 Other 97 153 Total debt 6,760 9,519 Less current portion 663 3,366 Non-current portion $ 6,097 $ 6,153 |
Schedule of maturities of long-term debt | As of January 31, 2016, long-term debt repayments are approximately as follows (in thousands): Year ending January 31, 2017 $ 663 2018 6,097 2019 — 2020 — 2021 — Thereafter — |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of pension plans | The following tables set forth (in thousands) the funded status of the Company’s pension plans at January 31, 2016 , and 2015 : Employee Plan VIP Plan Directors Plan 1/31/2016 1/31/2015 1/31/2016 1/31/2015 1/31/2016 1/31/2015 Change in Benefit Obligation Benefit obligation at beg. of year $ 37,708 $ 32,069 $ 10,104 $ 7,662 $ 428 $ 439 Service cost — — — — — — Interest cost 1,147 1,260 343 350 13 17 Participant contributions — — — — Amendments — — — — Actuarial losses (gains) (4,256 ) 5,962 (1,209 ) 2,636 (107 ) 8 Plan settlement (1,380 ) (1,071 ) — — Benefits paid (560 ) (512 ) (537 ) (544 ) (54 ) (36 ) Benefit obligation at end of year $ 32,659 $ 37,708 $ 8,701 $ 10,104 $ 280 $ 428 Change in Plan Assets Fair value at beg. of year $ 21,187 $ 18,168 $ — $ — $ — $ — Actual return on plan assets (974 ) 2,172 — — — — Company contributions 1,575 2,430 537 544 54 36 Settlements (1,380 ) (1,071 ) — — Benefits paid (560 ) (512 ) (537 ) (544 ) (54 ) (36 ) Fair value at end of year $ 19,848 $ 21,187 $ — $ — $ — $ — Funded Status Unfunded status of the plan $ (12,811 ) $ (16,521 ) $ (8,701 ) $ (10,104 ) $ (280 ) $ (428 ) Amounts Recognized in Statement of Financial Position Current liabilities — — (593 ) (613 ) (34 ) — Non-current liabilities (12,811 ) (16,521 ) (8,108 ) (9,491 ) (246 ) (428 ) Accrued benefit cost $ (12,811 ) $ (16,521 ) $ (8,701 ) $ (10,104 ) $ (280 ) $ (428 ) Amounts Recognized in Statement of Financial Position and Operations Accrued benefit liability $ (12,811 ) $ (16,521 ) $ (8,701 ) $ (10,104 ) $ (280 ) $ (428 ) Accumulated other comp. loss (gain) 13,889 17,992 3,023 4,716 (144 ) (37 ) Net amount recognized $ 1,078 $ 1,471 $ (5,678 ) $ (5,388 ) $ (424 ) $ (465 ) Items not yet Recognized as a Component of Net Periodic Pension Expense, Included in AOCI Unrecognized net actuarial loss (gain) $ 13,889 $ 17,992 $ 3,023 $ 4,716 $ (144 ) $ (37 ) Unamortized prior service costs — — — — — — Net initial asset recognition — — — — — — $ 13,889 $ 17,992 $ 3,023 $ 4,716 $ (144 ) $ (37 ) Employee Plan VIP Plan Directors Plan 1/31/2016 1/31/2015 1/31/2016 1/31/2015 1/31/2016 1/31/2015 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income Net loss (gain) $ (1,986 ) $ 4,893 $ (1,209 ) $ 2,636 $ (107 ) $ 8 Prior service cost — — Amortization of (loss) gain (2,117 ) (1,136 ) (484 ) (178 ) — 31 Amortization of prior service cost (credit) — — — — — — Amortization of initial asset — — — — — — Total recognized in other comprehensive (loss) income $ (4,103 ) $ 3,757 $ (1,693 ) $ 2,458 $ (107 ) $ 39 Items to be Recognized as a Component of Periodic Pension Cost for next fiscal year Prior service cost $ — $ — $ — $ — $ — $ — Net actuarial loss (gain) 1,162 1,529 310 484 (116 ) — $ 1,162 $ 1,529 $ 310 $ 484 $ (116 ) $ — Supplemental Data Projected benefit obligation $ 32,659 $ 37,708 $ 8,701 $ 10,104 $ 280 $ 428 Accumulated benefit obligation 32,659 37,708 8,701 10,104 280 428 Fair value of plan assets 19,848 21,187 — — — — Components of Net Cost Service cost $ — $ — $ — $ — $ — $ — Interest cost 1,147 1,260 343 350 13 17 Expected return on plan assets (1,295 ) (1,102 ) — — — — Amortization of transition amount — — — — — — Recognized (gain) loss due to settlement 587 — — — — — Amortization of prior service cost — — — — — Recognized net actuarial loss 1,529 1,136 484 178 — (31 ) Benefit cost $ 1,968 $ 1,294 $ 827 $ 528 $ 13 $ (14 ) Estimated Future Benefit Payments FYE 01-31-2017 $ 6,194 $ 593 $ 34 FYE 01-31-2018 1,503 294 32 FYE 01-31-2019 1,797 321 31 FYE 01-31-2020 1,597 341 29 FYE 01-31-2021 1,601 328 27 FYE 01-31-2022 to 2026 9,455 1,911 103 Total $ 22,147 $ 3,788 $ 256 Weighted Average Assumptions to Determine Benefit Obligations at Year-End Discount rate 4.00 % 3.25 % 4.25 % 3.50 % 3.25 % 3.25 % Rate of compensation increase N/A N/A N/A N/A N/A N/A Weighted Average Assumptions to Determine Net Periodic Pension Cost Discount rate 3.25 % 4.25 % 3.50 % 4.75 % 3.25 % 4.25 % Expected return on plan assets 6.50 % 6.50 % N/A N/A N/A N/A Rate of compensation increase N/A N/A N/A N/A N/A N/A |
Fair value measurements of plan assets | 1/31/2016 1/31/2015 Level 1 Measurement Cash & Cash Equivalents $ — $ 528 Common Stock 5,831 6,476 Total Level 1 $ 5,831 $ 7,004 Level 2 Measurement PNC Govt Money Fund $ 1,087 $ — Vanguard Total Bond 3,478 — Ishares Russell 2000 1,276 — Vanguard All World 1,668 — Blackrock S&P Index 5,410 — Bond Index Fund — 427 Core Bond CIT Fund — 1,457 US Aggregate Bond Index Fund — 627 Large Cap Growth Index Fund — 3,610 Large Cap Value Index Fund — 3,561 Russell 2000 Index Fund — 1,499 International Equity Index Fund — 1,653 Managed Investment Fund 1,098 1,075 Vanguard MSCI Emerging Markets Fund — 274 Total Level 2 $ 14,017 $ 14,183 Level 3 Measurement None N/A N/A |
Life insurance liability | The following sets forth the Company's change in death benefits payable during the years ended January 31, 2016 and 2015: 1/31/2016 1/31/2015 Liability beginning of year $ 2,388,000 $ 2,401,000 Accretion expense 78,000 104,000 Death benefits paid (300,000 ) (117,000 ) Liability end of year $ 2,166,000 $ 2,388,000 |
Stock-Based Compensation and 26
Stock-Based Compensation and Stockholders' Rights (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Restricted Stock and Stock Unit Award Activity | The following table presents a summary of restricted stock and stock unit awards: Expense for 12 months ended Unrecognized Compensation Cost at Date of Grants Units Granted Terms of Vesting 1/31/2016 1/31/2015 1/31/2014 1/31/2016 2011 Stock Incentive Plan 06/22/2015 48,000 4 years $ 22,000 $ — $ — $ 110,000 06/22/2015 27,174 1 year 50,000 — — 25,000 06/24/2014 28,626 1 year 25,000 49,000 — — 06/24/2014 490,000 5 years 246,000 171,000 — 801,000 12/03/2013 10,000 1 year 13,000 6,000 — 12/03/2013 18,000 5 years — — 1,000 — 06/25/2013 71,430 1 year 50,000 100,000 — 06/19/2012 31,250 1 year — — 17,000 — 06/19/2012 520,000 5 years 150,000 157,000 160,000 196,000 2007 Stock Incentive Plan 06/19/2012 78,125 1 year — — 41,000 — 03/21/2012 40,000 Immediate — — — — 06/21/2011 68,960 1 year — — — — 06/16/2009 382,500 5 years 62,000 198,000 — 06/19/2007 262,500 5 years — — — — Totals for the period $ 493,000 $ 502,000 $ 523,000 $ 1,132,000 A summary of the Company’s restricted stock unit awards activity, and related information for the following years ended January 31, is as follows: 2016 2015 2014 Restricted stock units Weighted- average fair value of restricted stock units Restricted stock units Weighted- average fair value of restricted stock units Restricted stock units Weighted- average fair value of restricted stock units Outstanding at beginning of year 812,626 $ 2.24 544,430 $ 1.87 743,375 $ 1.89 Granted 75,174 2.76 518,626 2.61 99,430 2.07 Vested (212,626 ) 2.79 (232,430 ) 2.38 (260,375 ) 2.01 Forfeited (18,000 ) 2.74 (18,000 ) 2.61 (38,000 ) 2.00 Outstanding at end of year 657,174 2.34 812,626 2.24 544,430 1.87 Weighted-average fair value of restricted stock units granted during the year $ 2.76 $ 2.61 $ 2.07 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income tax expense (benefit) reconciled to statutory rate | The income tax expense (benefit) for the last three years is reconciled to the statutory federal income tax rate using the liability method as follows (in thousands): Year ended January 31, 2016 2015 2014 Statutory $ 1,587 $ 285 $ (929 ) State taxes (net of federal tax) 303 144 (47 ) Change in valuation allowance (2,214 ) (248 ) (253 ) State rate adjustment 168 (8 ) 82 Change in unrecognized tax benefits (3 ) (19 ) (32 ) Expirations of attributes 229 65 100 Other 48 (150 ) 76 Income tax expense (benefit) $ 118 $ 69 $ (1,003 ) |
Significant components of expense (benefit) | Significant components of the expense (benefit) for income taxes (in thousands) attributed to continuing operations are as follows: Year ended January 31, 2016 2015 2014 Current Federal $ 1 $ — $ 1 State 40 35 (24 ) 41 35 (23 ) Deferred Federal 1,567 232 (753 ) State 724 48 23 2,291 280 (730 ) Change in Valuation Allowance (2,214 ) (246 ) (250 ) 77 34 (980 ) Income tax expense (benefit) $ 118 $ 69 $ (1,003 ) |
Deferred tax assets and liabilities | Deferred tax assets and liabilities (in thousands) are comprised of the following: Year ended January 31, 2016 2015 Deferred tax assets Accrued vacation and sick leave $ 1,106 $ 1,003 Retirement plans 8,837 10,887 Insurance reserves 791 830 Warranty 535 487 Net operating loss carryforwards 10,393 13,303 Intangibles 25 145 Inventory 1,582 1,472 Other 859 595 $ 24,128 $ 28,722 Deferred tax liabilities Tax in excess of book depreciation $ (1,432 ) $ (1,458 ) Other (87 ) (85 ) $ (1,519 ) $ (1,543 ) Valuation allowance (21,906 ) (26,399 ) Net long term deferred tax asset $ 703 $ 780 |
Unrecognized tax benefits | The following table summarizes the activity related to our gross unrecognized tax benefits from February 1, 2013 to January 31, 2016 (in thousands): January 31, 2016 2015 Balances as of February 1, $ 36 $ 52 Increases related to prior year tax positions — 3 Decreases related to prior year tax positions (2 ) — Increases related to current year tax positions 5 6 Decreases relating to settlements with taxing authorities — — Decreases related to lapsing of statute of limitations (8 ) (25 ) Balance as of January 31, $ 31 $ 36 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Commitments [Abstract] | |
Minimum future lease payments | Minimum future lease payments (in thousands) for operating leases in effect as of January 31, 2016 , are as follows: Year ending January 31, 2017 $ 4,266 2018 4,548 2019 4,177 2020 4,157 2021 347 Thereafter — Total minimum lease payments 17,495 Less sublease revenues — $ 17,495 |
Rent expense | Rent expense relating to operating leases was as follows (in thousands): Year ended January 31, 2016 $ 5,681 2015 6,025 2014 6,555 |
Contingencies (Tables)
Contingencies (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Contingencies [Abstract] | |
Estimated payments under the self-insurance programs | Estimated payments under the self-insurance programs are as follows (in thousands): Year ending January 31, 2017 $ 400 2018 375 2019 375 2020 375 2021 375 Thereafter 170 Total 2,070 Discount to net present value (20 ) $ 2,050 |
Warranty (Tables)
Warranty (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Standard Product Warranty Disclosure [Abstract] | |
Warranty claim activity | The following is a summary of the Company’s warranty-claim activity during 2016 and 2015 . January 31, (In thousands) 2016 2015 Beginning balance $ 950 $ 1,000 Provision for current year 675 650 Provision for (benefits from) prior year (250 ) (258 ) Costs incurred (375 ) (442 ) Ending balance $ 1,000 $ 950 |
Quarterly Results (Unaudited) (
Quarterly Results (Unaudited) (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly results | The Company’s quarterly results for the years ended January 31, 2016 and 2015 , as adjusted, are summarized as follows (in thousands, except per share data): Q1 Q2 Q3 Q4 Year ended January 31, 2016 Net sales $ 23,048 $ 61,072 $ 64,981 $ 19,494 Gross profit 8,194 23,996 23,210 4,210 Net (loss) income (3,178 ) 7,450 6,003 (5,726 ) Per common share Net (loss) income* Basic $ (0.21 ) $ 0.50 $ 0.40 $ (0.38 ) Assuming dilution (0.21 ) 0.49 0.39 (0.38 ) Year ended January 31, 2015 Net sales $ 23,383 $ 53,042 $ 62,273 $ 25,354 Gross profit 8,030 20,696 20,672 6,000 Net (loss) income (3,855 ) 5,203 4,632 (5,131 ) Per common share Net (loss) income* Basic $ (0.26 ) $ 0.35 $ 0.31 $ (0.35 ) Assuming dilution (0.26 ) 0.35 0.31 (0.35 ) ______________________________ * 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. |
Summary of Business and Signi32
Summary of Business and Significant Accounting Policies (Concentration of Credit risk) (Details) | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Concentration Risk [Line Items] | |||
Period of Manufacturing Operations | 66 years | ||
Sales Revenue, Goods, Net [Member] | |||
Concentration Risk [Line Items] | |||
Foreign sales revenue by percent | 6.70% | 7.70% | 7.50% |
Summary of Business and Signi33
Summary of Business and Significant Accounting Policies (Inventory, net) (Details) - USD ($) $ in Thousands | Jan. 31, 2016 | Jan. 31, 2015 |
Inventory [Line Items] | ||
Finished goods | $ 10,233 | $ 7,821 |
WIP | 13,443 | 10,181 |
Raw materials | 10,927 | 8,676 |
Inventories, net | $ 34,603 | 26,678 |
Changes [Increase (Decrease)] Resulting from Error | ||
Inventory [Line Items] | ||
Finished goods | 2,219 | |
WIP | (1,306) | |
Raw materials | $ (913) |
Summary of Business and Signi34
Summary of Business and Significant Accounting Policies (Property, Plant, and Equipment) (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Repair and maintenance | $ 1,759,000 | $ 1,616,000 | $ 1,691,000 |
Depreciation and amortization expense | 4,757,000 | 4,408,000 | 4,209,000 |
Rental income | $ 51,000 | $ 40,000 | $ 40,000 |
Land Improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 5 years | ||
Land Improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 25 years | ||
Buildings and building improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 5 years | ||
Buildings and building improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 40 years | ||
Machinery and equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 3 years | ||
Machinery and equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 10 years |
Summary of Business and Signi35
Summary of Business and Significant Accounting Policies (Asset Retirement Obligations) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Accounting Policies [Abstract] | ||
Asset retirement obligation beginning of period | $ 572 | $ 563 |
Decrease in obligation | 0 | 0 |
Accretion expense | 9 | 9 |
Asset retirement obligation end of period | $ 581 | $ 572 |
Summary of Business and Signi36
Summary of Business and Significant Accounting Policies (Computation of Basic and Diluted Loss Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||
Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||
Net income (loss) | $ (5,726) | $ 6,003 | $ 7,450 | $ (3,178) | $ (5,131) | $ 4,632 | $ 5,203 | $ (3,855) | $ 4,549 | $ 849 | $ (1,730) | ||||||||||||
Weighted-average shares — basic | 14,914,000 | 14,756,000 | 14,620,000 | ||||||||||||||||||||
Dilutive effect of equity incentive plans | 204,000 | 231,000 | 0 | ||||||||||||||||||||
Weighted-average shares — diluted | [1] | 15,118,000 | 14,987,000 | 14,620,000 | |||||||||||||||||||
Basic | $ (0.38) | [2] | $ 0.40 | [2] | $ 0.50 | [2] | $ (0.21) | [2] | $ (0.35) | [2] | $ 0.31 | [2] | $ 0.35 | [2] | $ (0.26) | [2] | $ 0.31 | [3] | $ 0.06 | [3] | $ (0.12) | [3] | |
Diluted | $ (0.38) | [2] | $ 0.39 | [2] | $ 0.49 | [2] | $ (0.21) | [2] | $ (0.35) | [2] | $ 0.31 | [2] | $ 0.35 | [2] | $ (0.26) | [2] | $ 0.30 | [3] | $ 0.06 | [3] | $ (0.12) | [3] | |
Anti-dilutive common stock equivalents | 180,000 | ||||||||||||||||||||||
[1] | For fiscal year 2014, approximately 180,000 shares of common stock equivalents were excluded in the computation of diluted net income per share, as the effect would be anti-dilutive. | ||||||||||||||||||||||
[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. | ||||||||||||||||||||||
[3] | Net loss per share for fiscal year 2014 was calculated based on basic shares outstanding due to the anti-dilutive effect on the inclusion of common stock equivalent shares. |
Summary of Business and Signi37
Summary of Business and Significant Accounting Policies (Advertising Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Accounting Policies [Abstract] | |||
Advertising cost | $ 1,057 | $ 1,277 | $ 1,246 |
Prepaid advertising costs | $ 234 | $ 244 |
Summary of Business and Signi38
Summary of Business and Significant Accounting Policies (Product Warranty Expense) (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Warranty [Line Items] | |||
Accrued warranty balance | $ 1,000,000 | $ 950,000 | $ 1,000,000 |
Product Warranty Accrual, Current | $ 600,000 | ||
Minimum [Member] | |||
Warranty [Line Items] | |||
Product warranty period | 5 years | ||
Maximum [Member] | |||
Warranty [Line Items] | |||
Product warranty period | 10 years |
Summary of Business and Signi39
Summary of Business and Significant Accounting Policies (Self-Insurance) (Details) - USD ($) | Jan. 31, 2016 | Jan. 31, 2015 |
Loss Contingencies [Line Items] | ||
Discount rate | 2.00% | 0.50% |
Product and General Liability [Member] | ||
Loss Contingencies [Line Items] | ||
Self insurance reserve | $ 250,000 | $ 250,000 |
Workers Compensation [Member] | ||
Loss Contingencies [Line Items] | ||
Self insurance reserve | 250,000 | 250,000 |
Automobile Losses [Member] | ||
Loss Contingencies [Line Items] | ||
Self insurance reserve | $ 50,000 | $ 50,000 |
Summary of Business and Signi40
Summary of Business and Significant Accounting Policies (Manufacturing Operations and Shipping Fees) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Accounting Policies [Abstract] | |||
Shipping and delivery costs | $ 15,799 | $ 15,411 | $ 14,576 |
Summary of Business and Signi41
Summary of Business and Significant Accounting Policies (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning of year | $ (20,234) | ||
Amortization of prior service cost (credit) | 2,013 | $ 1,283 | $ 1,548 |
Net current period other comprehensive (loss) income | 5,904 | (6,254) | 2,006 |
Balance as of end of year | (14,330) | (20,234) | |
Accumulated Other Comprehensive Loss | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning of year | (20,234) | (13,980) | |
Other comprehensive income (loss) before reclassifications | 3,891 | (7,537) | |
Amortization of prior service cost (credit) | 2,013 | 1,283 | |
Net current period other comprehensive (loss) income | 5,904 | (6,254) | 2,006 |
Balance as of end of year | $ (14,330) | $ (20,234) | $ (13,980) |
Debt (Long-term Debt) (Details)
Debt (Long-term Debt) (Details) - USD ($) $ in Thousands | Jan. 31, 2016 | Jan. 31, 2015 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 6,760 | $ 9,519 |
Less current portion | 663 | 3,366 |
Non-current portion | 6,097 | 6,153 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 6,663 | 9,366 |
Other Debt [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 97 | $ 153 |
Debt (Long-term Debt Repayments
Debt (Long-term Debt Repayments) (Details) $ in Thousands | Jan. 31, 2016USD ($) |
Debt Disclosure [Abstract] | |
2,017 | $ 663 |
2,018 | 6,097 |
2,019 | 0 |
2,020 | 0 |
2,021 | 0 |
Thereafter | $ 0 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) | 12 Months Ended |
Jan. 31, 2016USD ($) | |
Line of Credit Facility [Line Items] | |
Revolving credit facility | $ 49,750,000 |
Sub-limit for issuances of letters of credit | $ 3,000,000 |
Revolving Credit Facility bears interest increased | 2.00% |
Maximum fixed charge coverage ratio | 5.28 |
Debt Instrumet, Covenant, Maintained Tangible Net Worth | $ 33,312,000 |
Debt Instrument, Covenant, Achieved EBITDA | 11,198,000 |
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 |
Accounts receivable [Member] | |
Line of Credit Facility [Line Items] | |
Revolving credit facility borrowing base limitation | 85.00% |
Inventory [Member] | |
Line of Credit Facility [Line Items] | |
Revolving credit facility borrowing base limitation | 60.00% |
Minimum [Member] | |
Line of Credit Facility [Line Items] | |
Revolving credit facility | $ 8,000,000 |
Maximum [Member] | |
Line of Credit Facility [Line Items] | |
Revolving credit facility | $ 14,000,000 |
Maximum [Member] | Accounts receivable [Member] | |
Line of Credit Facility [Line Items] | |
Revolving credit facility borrowing base limitation | 85.00% |
Credit Agreement [Member] | |
Line of Credit Facility [Line Items] | |
Minimum EBITDA | $ 6,137,000 |
Maximum fixed charge coverage ratio | 1 |
PNC [Member] | Revolving Credit Facility [Member] | |
Line of Credit Facility [Line Items] | |
Remaining borrowing capacity | $ 12,943,000 |
PNC [Member] | Revolving Credit Facility [Member] | Credit Agreement [Member] | |
Line of Credit Facility [Line Items] | |
Minimum tangible net worth covenant | $ 21,346,000 |
Eurodollar [Member] | Minimum [Member] | |
Line of Credit Facility [Line Items] | |
Revolving credit facility bears interest range of | 1.50% |
Eurodollar [Member] | Maximum [Member] | |
Line of Credit Facility [Line Items] | |
Revolving credit facility bears interest range of | 2.50% |
Alternate Base Rate Loans [Member] | London Interbank Offered Rate LIBOR [Member] | Minimum [Member] | |
Line of Credit Facility [Line Items] | |
Revolving credit facility bears interest range of | 0.50% |
Alternate Base Rate Loans [Member] | London Interbank Offered Rate LIBOR [Member] | Maximum [Member] | |
Line of Credit Facility [Line Items] | |
Revolving credit facility bears interest range of | 1.50% |
Retirement Plans (Pension Plans
Retirement Plans (Pension Plans, Narrative) (Details) - USD ($) | 12 Months Ended | |||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Liability for Future Policy Benefits, Life | $ 9,391,000 | $ 9,486,000 | ||
Restructuring expense | 0 | 287,000 | $ 1,408,000 | |
Company contributions | 1,600,000 | 2,400,000 | 1,800,000 | |
Benefit payments | 591,000 | 580,000 | $ 564,000 | |
Accumulated other comprehensive loss | 16,800,000 | |||
Defined Benefit Plan, Accumulated Other Comprehensive Income Net Prior Service Cost (Credit), after Tax | $ 14,300,000 | |||
Employee Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Percentage of trust assets managed | 70.00% | |||
Liability increase for pension obligations | 5,400,000 | |||
Company contributions | $ 1,575,000 | 2,430,000 | ||
Accumulated other comprehensive loss net of tax | 13,889,000 | 17,992,000 | ||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, Net of Tax | 1,986,000 | (4,893,000) | ||
Defined Benefit Plan, Accumulated Other Comprehensive Income Net Prior Service Cost (Credit), after Tax | $ 0 | 0 | ||
VIP Retirement Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Benefit of average compensation | 50.00% | |||
Benefit of average compensation period | 5 years | |||
Cash surrender value | $ 3,462,000 | 3,311,000 | ||
Liability increase for pension obligations | 1,700,000 | |||
Company contributions | 537,000 | 544,000 | ||
Accumulated other comprehensive loss net of tax | 3,023,000 | 4,716,000 | ||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, Net of Tax | 1,209,000 | (2,636,000) | ||
Defined Benefit Plan, Accumulated Other Comprehensive Income Net Prior Service Cost (Credit), after Tax | $ 0 | 0 | ||
Directors Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Director years of service | 10 years | |||
Liability increase for pension obligations | 20,000 | |||
Company contributions | $ 54,000 | 36,000 | ||
Accumulated other comprehensive loss net of tax | (144,000) | (37,000) | ||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, Net of Tax | 107,000 | (8,000) | ||
Defined Benefit Plan, Accumulated Other Comprehensive Income Net Prior Service Cost (Credit), after Tax | $ 0 | $ 0 | ||
Common Stock [Member] | Employee Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Long-term asset allocation target | 80.00% | |||
Debt Securities [Member] | Employee Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Long-term asset allocation target | 20.00% | |||
Short-term investment funds | 23.00% | 14.00% | ||
Large Cap Stock [Member] | Employee Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Long-term asset allocation target | 80.00% | |||
Small Cap Stock [Member] | Employee Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Long-term asset allocation target | 30.00% | |||
International Stock [Member] | Employee Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Long-term asset allocation target | 30.00% | |||
Scenario, Forecast [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Estimated contributions to qualified pension plans for 2017 | $ 1,400,000 | |||
Estimated future contributions to non-qualified plans for 2017 | $ 627,000 |
Retirement Plans (Funded Status
Retirement Plans (Funded Status) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Change in Plan Assets | |||
Company contributions | $ 1,600 | $ 2,400 | $ 1,800 |
Employee Plan [Member] | |||
Change in Benefit Obligation | |||
Benefit obligation at beg. of year | 37,708 | 32,069 | |
Service cost | 0 | 0 | |
Interest cost | $ 1,147 | 1,260 | |
Participant contributions | 0 | ||
Amendments | 0 | ||
Actuarial losses (gains) | $ (4,256) | 5,962 | |
Plan settlement | (1,380) | (1,071) | |
Benefits paid | (560) | (512) | |
Benefit obligation at end of year | 32,659 | 37,708 | 32,069 |
Change in Plan Assets | |||
Fair value at beg. of year | 21,187 | 18,168 | |
Actual return on plan assets | (974) | 2,172 | |
Company contributions | 1,575 | 2,430 | |
Settlements | (1,380) | (1,071) | |
Benefits paid | (560) | (512) | |
Fair value at end of year | 19,848 | 21,187 | 18,168 |
Unfunded status of the plan | (12,811) | (16,521) | |
Amounts Recognized in Statement of Financial Position | |||
Current liabilities | 0 | 0 | |
Non-current liabilities | (12,811) | (16,521) | |
Accrued benefit cost | (12,811) | (16,521) | |
Amounts Recognized in Statement of Financial Position and Operations | |||
Accrued benefit liability | (12,811) | (16,521) | |
Accumulated other comp. loss (gain) | 13,889 | 17,992 | |
Net amount recognized | 1,078 | 1,471 | |
Items not yet Recognized as a Component of Net Periodic Pension Expense, Included in AOCI | |||
Unrecognized net actuarial loss (gain) | 13,889 | 17,992 | |
Unamortized prior service costs | 0 | 0 | |
Net initial asset recognition | 0 | 0 | |
Net periodic pension expense, included in AOCI | 13,889 | 17,992 | |
VIP Retirement Plan [Member] | |||
Change in Benefit Obligation | |||
Benefit obligation at beg. of year | 10,104 | 7,662 | |
Service cost | 0 | 0 | |
Interest cost | $ 343 | 350 | |
Participant contributions | 0 | ||
Amendments | 0 | ||
Actuarial losses (gains) | $ (1,209) | 2,636 | |
Plan settlement | 0 | ||
Benefits paid | $ (537) | (544) | |
Benefit obligation at end of year | 8,701 | 10,104 | 7,662 |
Change in Plan Assets | |||
Fair value at beg. of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Company contributions | $ 537 | 544 | |
Settlements | 0 | ||
Benefits paid | $ (537) | (544) | |
Fair value at end of year | 0 | 0 | 0 |
Unfunded status of the plan | (8,701) | (10,104) | |
Amounts Recognized in Statement of Financial Position | |||
Current liabilities | (593) | (613) | |
Non-current liabilities | (8,108) | (9,491) | |
Accrued benefit cost | (8,701) | (10,104) | |
Amounts Recognized in Statement of Financial Position and Operations | |||
Accrued benefit liability | (8,701) | (10,104) | |
Accumulated other comp. loss (gain) | 3,023 | 4,716 | |
Net amount recognized | (5,678) | (5,388) | |
Items not yet Recognized as a Component of Net Periodic Pension Expense, Included in AOCI | |||
Unrecognized net actuarial loss (gain) | 3,023 | 4,716 | |
Unamortized prior service costs | 0 | 0 | |
Net initial asset recognition | 0 | 0 | |
Net periodic pension expense, included in AOCI | 3,023 | 4,716 | |
Directors Plan [Member] | |||
Change in Benefit Obligation | |||
Benefit obligation at beg. of year | 428 | 439 | |
Service cost | 0 | 0 | |
Interest cost | 13 | 17 | |
Participant contributions | 0 | 0 | |
Amendments | 0 | 0 | |
Actuarial losses (gains) | $ (107) | 8 | |
Plan settlement | 0 | ||
Benefits paid | $ (54) | (36) | |
Benefit obligation at end of year | 280 | 428 | 439 |
Change in Plan Assets | |||
Fair value at beg. of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Company contributions | $ 54 | 36 | |
Settlements | 0 | ||
Benefits paid | $ (54) | (36) | |
Fair value at end of year | 0 | 0 | $ 0 |
Unfunded status of the plan | (280) | (428) | |
Amounts Recognized in Statement of Financial Position | |||
Current liabilities | (34) | 0 | |
Non-current liabilities | (246) | (428) | |
Accrued benefit cost | (280) | (428) | |
Amounts Recognized in Statement of Financial Position and Operations | |||
Accrued benefit liability | (280) | (428) | |
Accumulated other comp. loss (gain) | (144) | (37) | |
Net amount recognized | (424) | (465) | |
Items not yet Recognized as a Component of Net Periodic Pension Expense, Included in AOCI | |||
Unrecognized net actuarial loss (gain) | (144) | (37) | |
Unamortized prior service costs | 0 | 0 | |
Net initial asset recognition | 0 | 0 | |
Net periodic pension expense, included in AOCI | $ (144) | $ (37) |
Retirement Plans (Periodic Pens
Retirement Plans (Periodic Pension Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income | |||
Amortization of prior service cost (credit) | $ 2,013 | $ 1,283 | $ 1,548 |
Total recognized in other Comprehensive Income | (5,904) | 6,254 | (2,006) |
Items not yet Recognized as a Component of Net Periodic Pension Expense, Included in AOCI | |||
Defined Benefit Plan, Accumulated Other Comprehensive Income Net Prior Service Cost (Credit), after Tax | 14,300 | ||
Employee Plan [Member] | |||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income | |||
Net loss (gain) | $ (1,986) | 4,893 | |
Prior service cost | 0 | ||
Defined Benefit Plan, Amortization of Gains (Losses) | $ (2,117) | (1,136) | |
Amortization of prior service cost (credit) | 0 | 0 | |
Amortization of initial asset | 0 | 0 | |
Total recognized in other Comprehensive Income | (4,103) | 3,757 | |
Items not yet Recognized as a Component of Net Periodic Pension Expense, Included in AOCI | |||
Defined Benefit Plan, Accumulated Other Comprehensive Income Net Prior Service Cost (Credit), after Tax | 0 | 0 | |
Net actuarial loss (gain) | 1,162 | 1,529 | |
Net periodic pension cost | 1,162 | 1,529 | |
Projected benefit obligation | 32,659 | 37,708 | 32,069 |
Accumulated benefit obligation | 32,659 | 37,708 | |
Fair value of plan assets | 19,848 | 21,187 | 18,168 |
Components of Net Cost | |||
Service cost | 0 | 0 | |
Interest cost | 1,147 | 1,260 | |
Expected return on plan assets | (1,295) | (1,102) | |
Amortization of transition amount | 0 | 0 | |
Recognized (gain) loss due to settlement | 587 | 0 | |
Amortization of prior service cost | 0 | 0 | |
Recognized net actuarial loss | 1,529 | 1,136 | |
Benefit cost | 1,968 | $ 1,294 | |
Estimated Future Benefit Payments | |||
FYE 01-31-2017 | 6,194 | ||
FYE 01-31-2018 | 1,503 | ||
FYE 01-31-2019 | 1,797 | ||
FYE 01-31-2020 | 1,597 | ||
FYE 01-31-2021 | 1,601 | ||
FYE 01-31-2022 to 2026 | 9,455 | ||
Total | $ 22,147 | ||
Weighted Average Assumptions to Determine Benefit Obligations at Year-End | |||
Discount rate | 4.00% | 3.25% | |
Weighted Average Assumptions to Determine Net Periodic Pension Cost | |||
Discount rate | 3.25% | 4.25% | |
Expected return on plan assets | 6.50% | 6.50% | |
VIP Retirement Plan [Member] | |||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income | |||
Net loss (gain) | $ (1,209) | $ 2,636 | |
Prior service cost | |||
Defined Benefit Plan, Amortization of Gains (Losses) | $ (484) | $ (178) | |
Amortization of prior service cost (credit) | 0 | 0 | |
Amortization of initial asset | 0 | 0 | |
Total recognized in other Comprehensive Income | (1,693) | 2,458 | |
Items not yet Recognized as a Component of Net Periodic Pension Expense, Included in AOCI | |||
Defined Benefit Plan, Accumulated Other Comprehensive Income Net Prior Service Cost (Credit), after Tax | 0 | 0 | |
Net actuarial loss (gain) | 310 | 484 | |
Net periodic pension cost | 310 | 484 | |
Projected benefit obligation | 8,701 | 10,104 | 7,662 |
Accumulated benefit obligation | 8,701 | 10,104 | |
Fair value of plan assets | 0 | 0 | 0 |
Components of Net Cost | |||
Service cost | 0 | 0 | |
Interest cost | 343 | 350 | |
Expected return on plan assets | 0 | 0 | |
Amortization of transition amount | 0 | 0 | |
Recognized (gain) loss due to settlement | 0 | 0 | |
Amortization of prior service cost | 0 | 0 | |
Recognized net actuarial loss | 484 | 178 | |
Benefit cost | 827 | $ 528 | |
Estimated Future Benefit Payments | |||
FYE 01-31-2017 | 593 | ||
FYE 01-31-2018 | 294 | ||
FYE 01-31-2019 | 321 | ||
FYE 01-31-2020 | 341 | ||
FYE 01-31-2021 | 328 | ||
FYE 01-31-2022 to 2026 | 1,911 | ||
Total | $ 3,788 | ||
Weighted Average Assumptions to Determine Benefit Obligations at Year-End | |||
Discount rate | 4.25% | 3.50% | |
Weighted Average Assumptions to Determine Net Periodic Pension Cost | |||
Discount rate | 3.50% | 4.75% | |
Directors Plan [Member] | |||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income | |||
Net loss (gain) | $ (107) | $ 8 | |
Prior service cost | 0 | ||
Defined Benefit Plan, Amortization of Gains (Losses) | $ 0 | 31 | |
Amortization of prior service cost (credit) | 0 | 0 | |
Amortization of initial asset | 0 | 0 | |
Total recognized in other Comprehensive Income | (107) | 39 | |
Items not yet Recognized as a Component of Net Periodic Pension Expense, Included in AOCI | |||
Defined Benefit Plan, Accumulated Other Comprehensive Income Net Prior Service Cost (Credit), after Tax | 0 | 0 | |
Net actuarial loss (gain) | (116) | 0 | |
Net periodic pension cost | (116) | 0 | |
Projected benefit obligation | 280 | 428 | 439 |
Accumulated benefit obligation | 280 | 428 | |
Fair value of plan assets | 0 | 0 | $ 0 |
Components of Net Cost | |||
Service cost | 0 | 0 | |
Interest cost | 13 | 17 | |
Expected return on plan assets | 0 | 0 | |
Amortization of transition amount | 0 | 0 | |
Recognized (gain) loss due to settlement | 0 | 0 | |
Recognized net actuarial loss | 0 | (31) | |
Benefit cost | 13 | $ (14) | |
Estimated Future Benefit Payments | |||
FYE 01-31-2017 | 34 | ||
FYE 01-31-2018 | 32 | ||
FYE 01-31-2019 | 31 | ||
FYE 01-31-2020 | 29 | ||
FYE 01-31-2021 | 27 | ||
FYE 01-31-2022 to 2026 | 103 | ||
Total | $ 256 | ||
Weighted Average Assumptions to Determine Benefit Obligations at Year-End | |||
Discount rate | 3.25% | 3.25% | |
Weighted Average Assumptions to Determine Net Periodic Pension Cost | |||
Discount rate | 3.25% | 4.25% |
Retirement Plans (Fair Value of
Retirement Plans (Fair Value of Employee Plan Assets) (Details) - Employee Plan [Member] - USD ($) $ in Thousands | Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 19,848 | $ 21,187 | $ 18,168 |
Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5,831 | 7,004 | |
Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 14,017 | 14,183 | |
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 528 | |
Common Stock [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5,831 | 6,476 | |
PNC Government Money Fund [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,087 | 0 | |
Vanguard Total Bond [Domain] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,478 | 0 | |
Ishares Russell 2000 [Domain] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,276 | 0 | |
Vanguard All World [Domain] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,668 | 0 | |
Blackrock S&P Index [Domain] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5,410 | 0 | |
Bond Index Fund [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 427 | |
Core Bond CIT Fund [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 1,457 | |
US Aggregate Bond Index Fund [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 627 | |
Large Cap Growth Index Fund [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 3,610 | |
Large Cap Value Index Fund [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 3,561 | |
Russell 2000 Index Fund [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 1,499 | |
International Equity Index Fund [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 1,653 | |
Managed Investment Fund [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,098 | 1,075 | |
Vanguard MSCI Emerging Markets Fund [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | $ 274 |
Retirement Plans (401(k) Retire
Retirement Plans (401(k) Retirement Plan) (Details) - 401(k) Retirement Plan [Member] - shares | 12 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Virco stock held in plan | 634,003 | 689,284 |
Minimum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Participant deferral percentage allowance | 1.00% | |
Maximum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Participant deferral percentage allowance | 50.00% |
Retirement Plans (Life Insuranc
Retirement Plans (Life Insurance) (Details) - USD ($) | 12 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | ||
Liability for Future Policy Benefits, Life | $ 9,391,000 | $ 9,486,000 |
Life Insurance, Corporate or Bank Owned, Amount | 2,650,000 | |
Liability beginning of year | 2,388,000 | 2,401,000 |
Accretion expense | 78,000 | 104,000 |
Present value of death benefits paid | (300,000) | (117,000) |
Liability end of year | 2,166,000 | 2,388,000 |
Cash surrender value | 2,555,000 | 2,924,000 |
Company purchase of life insurance for participants | $ 4,951,000 | $ 5,696,000 |
Stock-Based Compensation and 51
Stock-Based Compensation and Stockholders' Rights (Restricted Stock Units) (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Weighted- average fair value of restricted stock units | |||
Aggregate fair value of stock awards vested during the period | $ 593,000 | $ 553,000 | $ 523,000 |
Restricted Stock or Stock Units [Member] | |||
Summary of restricted stock and stock unit awards | |||
Granted | 75,174 | 518,626 | 99,430 |
Expense for 12 months ended | $ 493,000 | $ 502,000 | $ 523,000 |
Unrecognized compensation at cost | $ 1,132,000 | ||
Restricted Stock Units | |||
Beginning balance | 812,626 | 544,430 | 743,375 |
Granted | 75,174 | 518,626 | 99,430 |
Vested | (212,626) | (232,430) | (260,375) |
Forfeited | (18,000) | (18,000) | (38,000) |
Ending balance | 657,174 | 812,626 | 544,430 |
Weighted- average fair value of restricted stock units | |||
Beginning balance | $ 2.24 | $ 1.87 | $ 1.89 |
Granted | 2.76 | 2.61 | 2.07 |
Vested | 2.79 | 2.38 | 2.01 |
Forfeited | 2.74 | 2.61 | 2 |
Ending balance | $ 2.34 | $ 2.24 | $ 1.87 |
2011 Plan [Member] | 48,000 Restricted Stock Units, issued 6/22/2015, vesting over 4 years [Member] | |||
Summary of restricted stock and stock unit awards | |||
Granted | 48,000 | ||
Maximum term of stock options | 4 years | ||
Expense for 12 months ended | $ 22,000 | $ 0 | $ 0 |
Unrecognized compensation at cost | $ 110,000 | ||
Restricted Stock Units | |||
Granted | 48,000 | ||
2011 Plan [Member] | 27,174 Restricted Stock Units, issued 6/22/2015, vesting over 1 years [Member] | |||
Summary of restricted stock and stock unit awards | |||
Granted | 27,174 | ||
Maximum term of stock options | 1 year | ||
Expense for 12 months ended | $ 50,000 | 0 | 0 |
Unrecognized compensation at cost | $ 25,000 | ||
Restricted Stock Units | |||
Granted | 27,174 | ||
2011 Plan [Member] | 28,626 Restricted Stock Units, issued 6/24/2014, vesting over 1 years [Member] | |||
Summary of restricted stock and stock unit awards | |||
Granted | 28,626 | ||
Maximum term of stock options | 1 year | ||
Expense for 12 months ended | $ 25,000 | 49,000 | 0 |
Unrecognized compensation at cost | $ 0 | ||
Restricted Stock Units | |||
Granted | 28,626 | ||
2011 Plan [Member] | 490,000 Restricted Stock Units, issued 6/24/2014, vesting over 5 years [Member] | |||
Summary of restricted stock and stock unit awards | |||
Granted | 490,000 | ||
Maximum term of stock options | 5 years | ||
Expense for 12 months ended | $ 246,000 | 171,000 | 0 |
Unrecognized compensation at cost | $ 801,000 | ||
Restricted Stock Units | |||
Granted | 490,000 | ||
2011 Plan [Member] | 10,000 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 12 months ended | 13,000 | 6,000 | |
Unrecognized compensation at cost | $ 0 | ||
Restricted Stock Units | |||
Granted | 10,000 | ||
2011 Plan [Member] | 18,000 Restricted Stock Units, issued 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 12 months ended | $ 0 | 0 | 1,000 |
Unrecognized compensation at cost | $ 0 | ||
Restricted Stock Units | |||
Granted | 18,000 | ||
2011 Plan [Member] | 71,430 Restricted Stock Units, issued 6/25/2013, vesting over 1 years [Member] | |||
Summary of restricted stock and stock unit awards | |||
Granted | 71,430 | ||
Maximum term of stock options | 1 year | ||
Expense for 12 months ended | 50,000 | 100,000 | |
Unrecognized compensation at cost | $ 0 | ||
Restricted Stock Units | |||
Granted | 71,430 | ||
2011 Plan [Member] | 31,250 Restricted Stock Units, issued 6/19/2012, vesting over 1 years [Member] | |||
Summary of restricted stock and stock unit awards | |||
Granted | 31,250 | ||
Maximum term of stock options | 1 year | ||
Expense for 12 months ended | $ 0 | 0 | 17,000 |
Unrecognized compensation at cost | $ 0 | ||
Restricted Stock Units | |||
Granted | 31,250 | ||
2011 Plan [Member] | 520,000 Restricted Stock Units, 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 12 months ended | $ 150,000 | 157,000 | 160,000 |
Unrecognized compensation at cost | $ 196,000 | ||
Restricted Stock Units | |||
Granted | 520,000 | ||
2011 Plan [Member] | Restricted Stock or Stock Units [Member] | |||
Summary of restricted stock and stock unit awards | |||
Granted | 75,174 | ||
Restricted Stock Units | |||
Granted | 75,174 | ||
2007 Plan [Member] | 78,125 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 12 months ended | $ 0 | 0 | 41,000 |
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 | ||
Expense for 12 months ended | $ 0 | 0 | 0 |
Unrecognized compensation at cost | $ 0 | ||
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 | ||
Expense for 12 months ended | $ 0 | 0 | 0 |
Unrecognized compensation at cost | $ 0 | ||
Restricted Stock Units | |||
Granted | 68,960 | ||
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 12 months ended | 62,000 | 198,000 | |
Unrecognized compensation at cost | $ 0 | ||
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 | ||
Expense for 12 months ended | $ 0 | $ 0 | $ 0 |
Unrecognized compensation at cost | $ 0 | ||
Restricted Stock Units | |||
Granted | 262,500 |
Stock-Based Compensation and 52
Stock-Based Compensation and Stockholders' Rights (Textual) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate fair value of stock awards vested during the period | $ 593 | $ 553 | $ 523 |
Preferred stock, par value | $ 0.01 | $ 0.01 | |
Restricted Stock or Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted during the year | 75,174 | 518,626 | 99,430 |
Restricted Stock or Stock Units [Member] | 2007 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant of stock option or awards | 1,000,000 | ||
Stock available for future issuance | 13,075 | ||
Restricted Stock or Stock Units [Member] | 2011 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted during the year | 75,174 | ||
Stock available for future issuance | 803,520 |
Income Taxes (Income Tax Expens
Income Taxes (Income Tax Expense Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Statutory | $ 1,587 | $ 285 | $ (929) |
State taxes (net of federal tax) | 303 | 144 | (47) |
Change in valuation allowance | (2,214) | (248) | (253) |
State rate adjustment | 168 | (8) | 82 |
Change in unrecognized tax benefits | (3) | (19) | (32) |
Expirations of attributes | 229 | 65 | 100 |
Other | 48 | (150) | 76 |
Income tax expense (benefit) | $ 118 | $ 69 | $ (1,003) |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Current | |||
Federal | $ 1 | $ 0 | $ 1 |
State | 40 | 35 | (24) |
Current income tax benefit (expense) | 41 | 35 | (23) |
Deferred | |||
Federal | 1,567 | 232 | (753) |
State | 724 | 48 | 23 |
Total deferred income taxes | 2,291 | 280 | (730) |
Change in Valuation Allowance | (2,214) | (246) | (250) |
Deferred income taxes | 77 | 34 | (980) |
Income tax expense (benefit) | $ 118 | $ 69 | $ (1,003) |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jan. 31, 2016 | Jan. 31, 2015 |
Deferred tax assets | ||
Accrued vacation and sick leave | $ 1,106 | $ 1,003 |
Retirement plans | 8,837 | 10,887 |
Insurance reserves | 791 | 830 |
Warranty | 535 | 487 |
Net operating loss carryforwards | 10,393 | 13,303 |
Intangibles | 25 | 145 |
Inventory | 1,582 | 1,472 |
Other | 859 | 595 |
Total deferred tax assets | 24,128 | 28,722 |
Deferred tax liabilities | ||
Tax in excess of book depreciation | (1,432) | (1,458) |
Other | (87) | (85) |
Total deferred tax liabilities | (1,519) | (1,543) |
Valuation allowance | (21,906) | (26,399) |
Net long term deferred tax asset | $ 703 | $ 780 |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Beginning Balance, unrecognized tax benefits | $ 36 | $ 52 |
Increases related to prior year tax positions | 0 | 3 |
Decreases related to prior year tax positions | (2) | 0 |
Increases related to current year tax positions | 5 | 6 |
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | 0 | 0 |
Decreases related to lapsing of statute of limitations | (8) | (25) |
Ending Balance, unrecognized tax benefits | $ 31 | $ 36 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Thousands | Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits | $ 31 | $ 36 | $ 52 |
Unrecognized tax benefits that would favorably impact effective tax rate | 20 | ||
Liability for interest and penalties related to unrecognized tax benefits | 7 | 6 | |
Unrecognized tax benefit amount that is reasonably possible to decrease | 8 | ||
Valuation allowance | 21,906 | $ 26,399 | |
Federal net operating loss carryforward | 19,859 | ||
State net operating loss carryforward | $ 45,390 |
Commitments (Lease Terms) (Deta
Commitments (Lease Terms) (Details) | 12 Months Ended |
Jan. 31, 2016 | |
Manufacturing and Distribution Facility in Torrance, CA [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Operating lease period | 5 years |
Manufacturing Facility in Conway, AR [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Operating lease period | 10 years |
Commitments (Minimum Future Lea
Commitments (Minimum Future Lease Payments) (Details) $ in Thousands | Jan. 31, 2016USD ($) |
Operating Leases, Future Minimum Payments Due | |
Operating leases payments due 2017 | $ 4,266 |
Operating leases payments due 2018 | 4,548 |
Operating leases payments due 2019 | 4,177 |
Operating leases payments due 2020 | 4,157 |
Operating leases payments due 2021 | 347 |
Operating leases payments due Thereafter | 0 |
Total minimum lease payments | 17,495 |
Less sublease revenues | 0 |
Total | $ 17,495 |
Commitments (Rent Expense) (Det
Commitments (Rent Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Commitments [Abstract] | |||
Rent expense | $ 5,681 | $ 6,025 | $ 6,555 |
Commitments (Purchase Commitmen
Commitments (Purchase Commitments) (Details) | 12 Months Ended |
Jan. 31, 2016USD ($) | |
Raw Materials [Member] | |
Long-term Purchase Commitment [Line Items] | |
Purchase commitment | $ 12,131,000 |
Contingencies (Details Textual)
Contingencies (Details Textual) - USD ($) | 12 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Loss Contingencies [Line Items] | ||
Liability retention losses | $ 30,000,000 | |
Expected future losses | $ 2,050,000 | $ 2,130,000 |
Estimated payout period | 5 years | |
Discount rate | 2.00% | 0.50% |
Product and General Liability [Member] | ||
Loss Contingencies [Line Items] | ||
Self insurance reserve | $ 250,000 | $ 250,000 |
Workers Compensation [Member] | ||
Loss Contingencies [Line Items] | ||
Self insurance reserve | 250,000 | 250,000 |
Automobile Losses [Member] | ||
Loss Contingencies [Line Items] | ||
Self insurance reserve | $ 50,000 | $ 50,000 |
Contingencies (Minimum Self Ins
Contingencies (Minimum Self Insurance Payments) (Details) $ in Thousands | Jan. 31, 2016USD ($) |
Self Insurance, Future Estimated Payments Due | |
Estimated self insurance payments due in 2017 | $ 400 |
Estimated self insurance payments due in 2018 | 375 |
Estimated self insurance payments due in 2019 | 375 |
Estimated self insurance payments due in 2020 | 375 |
Estimated self insurance payments due in 2021 | 375 |
Estimated self insurance payments due thereafter | 170 |
Estimated self insurance payments, gross | 2,070 |
Discount to net present value | (20) |
Estimated self insurance payments, net | $ 2,050 |
Warranty (Details)
Warranty (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Warranty claim activity | ||
Beginning accrued warranty balance | $ 950 | $ 1,000 |
Provision | 675 | 650 |
Provision for (benefits from) prior year | (250) | (258) |
Costs incurred | (375) | (442) |
Ending accrued warranty balance | $ 1,000 | $ 950 |
Minimum [Member] | ||
Warranty [Line Items] | ||
Product warranty period | 5 years | |
Maximum [Member] | ||
Warranty [Line Items] | ||
Product warranty period | 10 years |
Quarterly Results (Unaudited)65
Quarterly Results (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | ||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||
Net sales | $ 19,494 | $ 64,981 | $ 61,072 | $ 23,048 | $ 25,354 | $ 62,273 | $ 53,042 | $ 23,383 | $ 168,595 | $ 164,052 | $ 155,042 | |||||||||||
Gross profit | 4,210 | 23,210 | 23,996 | 8,194 | 6,000 | 20,672 | 20,696 | 8,030 | 59,610 | 55,398 | 52,554 | |||||||||||
Net income (loss) | $ (5,726) | $ 6,003 | $ 7,450 | $ (3,178) | $ (5,131) | $ 4,632 | $ 5,203 | $ (3,855) | $ 4,549 | $ 849 | $ (1,730) | |||||||||||
Per common share | ||||||||||||||||||||||
Basic (dollar per share) | $ (0.38) | [1] | $ 0.40 | [1] | $ 0.50 | [1] | $ (0.21) | [1] | $ (0.35) | [1] | $ 0.31 | [1] | $ 0.35 | [1] | $ (0.26) | [1] | $ 0.31 | [2] | $ 0.06 | [2] | $ (0.12) | [2] |
Assuming dilution (dollar per share) | $ (0.38) | [1] | $ 0.39 | [1] | $ 0.49 | [1] | $ (0.21) | [1] | $ (0.35) | [1] | $ 0.31 | [1] | $ 0.35 | [1] | $ (0.26) | [1] | $ 0.30 | [2] | $ 0.06 | [2] | $ (0.12) | [2] |
[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] | Net loss per share for fiscal year 2014 was calculated based on basic shares outstanding due to the anti-dilutive effect on the inclusion of common stock equivalent shares. |
Schedule II - Valuation and Q66
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Allowance for doubtful accounts | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Valuation Allowances and Reserves, Beginning Balance | $ 200 | $ 200 | $ 275 |
Valuation Allowances and Reserves, Charged to (Reduced from) Expenses | 141 | 115 | 3 |
Valuation Allowances and Reserves, Deductions from Reserves | 141 | 115 | 78 |
Valuation Allowances and Reserves, Ending Balance | 200 | 200 | 200 |
Warranty reserve | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Valuation Allowances and Reserves, Beginning Balance | 950 | 1,000 | 1,000 |
Valuation Allowances and Reserves, Charged to (Reduced from) Expenses | 375 | 442 | 380 |
Valuation Allowances and Reserves, Deductions from Reserves | 325 | 492 | 380 |
Valuation Allowances and Reserves, Ending Balance | 1,000 | 950 | 1,000 |
Product, general, workers’ compensation and automobile liability reserves | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Valuation Allowances and Reserves, Beginning Balance | 2,130 | 2,425 | 2,985 |
Valuation Allowances and Reserves, Charged to (Reduced from) Expenses | 975 | 204 | 1,546 |
Valuation Allowances and Reserves, Deductions from Reserves | 1,290 | 499 | 2,106 |
Valuation Allowances and Reserves, Ending Balance | 1,815 | 2,130 | 2,425 |
Deferred tax valuation allowance | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Valuation Allowances and Reserves, Beginning Balance | 26,399 | 24,210 | 24,601 |
Valuation Allowances and Reserves, Charged to (Reduced from) Expenses | 0 | 2,189 | 0 |
Valuation Allowances and Reserves, Deductions from Reserves | 4,493 | 0 | 391 |
Valuation Allowances and Reserves, Ending Balance | $ 21,906 | $ 26,399 | $ 24,210 |