Document and Entity Information
Document and Entity Information Document - shares | 9 Months Ended | |
Nov. 30, 2020 | Jan. 08, 2021 | |
Document Information [Line Items] | ||
Entity Registrant Name | VOXX International Corporation | |
Title of 12(b) Security | Class A Common Stock $.01 par value | |
Entity Trading Symbol | VOXX | |
Security Exchange Name | NASDAQ | |
Entity Central Index Key | 0000807707 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Current Fiscal Year End Date | --02-28 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Nov. 30, 2020 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Address, State or Province | FL | |
Entity File Number | 0-28839 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 13-1964841 | |
Entity Address, Address Line One | 2351 J Lawson Blvd | |
Entity Address, City or Town | Orlando | |
Entity Address, Postal Zip Code | 32824 | |
City Area Code | 800 | |
Local Phone Number | 645-7750 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Class A Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 21,666,976 | |
Class B Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 2,260,954 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Nov. 30, 2020 | Feb. 29, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 21,337 | $ 37,425 |
Accounts receivable, net | 155,322 | 69,714 |
Inventory | 138,607 | 99,110 |
Receivables from vendors | 251 | 230 |
Prepaid expenses and other current assets | 17,880 | 10,885 |
Income tax receivable | 454 | 456 |
Total current assets | 333,851 | 217,820 |
Investment securities | 1,827 | 2,282 |
Equity investment | 22,182 | 21,924 |
Property, plant and equipment, net | 52,124 | 51,424 |
Operating lease, right of use asset | 4,811 | 3,143 |
Goodwill | 58,928 | 55,000 |
Intangible assets, net | 92,797 | 88,288 |
Deferred income tax assets | 56 | 52 |
Other assets | 1,413 | 1,638 |
Total assets | 567,989 | 441,571 |
Current liabilities: | ||
Accounts payable | 80,177 | 22,096 |
Accrued expenses and other current liabilities | 55,695 | 34,046 |
Income taxes payable | 3,166 | 1,523 |
Accrued sales incentives | 27,883 | 12,250 |
Contract liabilities, current | 3,396 | 0 |
Current portion of long-term debt | 500 | 1,107 |
Total current liabilities | 170,817 | 71,022 |
Long-term debt, net of debt issuance costs | 5,973 | 6,099 |
Finance lease liabilities, less current portion | 386 | 720 |
Operating lease liabilities, less current portion | 3,813 | 2,391 |
Contract liabilities, less current portion | 1,016 | 0 |
Deferred compensation | 1,827 | 2,282 |
Deferred income tax liabilities | 7,975 | 3,828 |
Other tax liabilities | 1,123 | 1,225 |
Other long-term liabilities | 5,570 | 3,294 |
Total liabilities | 198,500 | 90,861 |
Commitments and contingencies (see Note 25) | 0 | 0 |
Redeemable equity (see Note 8) | 2,959 | 2,481 |
Stockholders' equity: | ||
Preferred stock: | 0 | 0 |
Paid-in capital | 300,107 | 299,228 |
Retained earnings | 139,458 | 122,139 |
Accumulated other comprehensive loss | (16,046) | (19,055) |
Less: Treasury stock, at cost, 2,749,218 shares of Class A Common Stock at both November 30, 2020 and February 29, 2020 | (23,918) | (23,918) |
Less: Redeemable equity | (2,959) | (2,481) |
Total VOXX International Corporation stockholders' equity | 396,909 | 376,179 |
Non-controlling interest | (30,379) | (27,950) |
Total stockholders' equity | 366,530 | 348,229 |
Total liabilities, redeemable equity, and stockholders' equity | 567,989 | 441,571 |
Common Class A [Member] | ||
Stockholders' equity: | ||
Common stock | 245 | 244 |
Common Class B [Member] | ||
Stockholders' equity: | ||
Common stock | $ 22 | $ 22 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Nov. 30, 2020 | Feb. 29, 2020 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Treasury stock, shares | 2,749,218 | 2,749,218 |
Common Class A [Member] | ||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 60,000,000 | 60,000,000 |
Common stock, shares issued | 24,416,194 | 24,306,194 |
Common stock, shares outstanding | 21,666,976 | 21,556,976 |
Common Class B [Member] | ||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 2,260,954 | 2,260,954 |
Common stock, shares outstanding | 2,260,954 | 2,260,954 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Income Statement [Abstract] | ||||
Net sales | $ 201,065 | $ 110,112 | $ 401,084 | $ 293,812 |
Cost of sales | 142,937 | 78,648 | 284,905 | 212,570 |
Gross profit | 58,128 | 31,464 | 116,179 | 81,242 |
Operating expenses: | ||||
Selling | 12,761 | 9,580 | 30,190 | 28,162 |
General and administrative | 21,128 | 16,689 | 51,668 | 51,896 |
Engineering and technical support | 5,676 | 5,059 | 14,942 | 15,901 |
Total operating expenses | 39,565 | 31,328 | 96,800 | 95,959 |
Operating income (loss) | 18,563 | 136 | 19,379 | (14,717) |
Other (expense) income: | ||||
Interest and bank charges | (471) | (751) | (2,334) | (2,635) |
Equity in income of equity investee | 1,761 | 967 | 4,506 | 3,672 |
Gain on sale of real property (see Note 19) | 4,057 | 4,057 | ||
Investment gain (see Note 4) | 42 | 42 | 775 | |
Other, net | (121) | (322) | 21 | 1,869 |
Total other income, net | 1,211 | 3,951 | 2,235 | 7,738 |
Income (loss) before income taxes | 19,774 | 4,087 | 21,614 | (6,979) |
Income tax expense | 2,334 | 2,720 | 6,724 | 1,190 |
Net income (loss) | 17,440 | 1,367 | 14,890 | (8,169) |
Less: net loss attributable to non-controlling interest | (811) | (1,097) | (2,429) | (3,521) |
Net income (loss) attributable to VOXX International Corporation | 18,251 | 2,464 | 17,319 | (4,648) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | 79 | (295) | 3,608 | (1,321) |
Derivatives designated for hedging | (43) | 13 | (514) | (271) |
Pension plan adjustments | (6) | 2 | (85) | 25 |
Other comprehensive income (loss), net of tax | 30 | (280) | 3,009 | (1,567) |
Comprehensive income (loss) attributable to VOXX International Corporation | $ 18,281 | $ 2,184 | $ 20,328 | $ (6,215) |
Income (loss) per share - basic: Attributable to VOXX International Corporation | $ 0.75 | $ 0.10 | $ 0.72 | $ (0.19) |
Income (loss) per share - diluted: Attributable to VOXX International Corporation | $ 0.74 | $ 0.10 | $ 0.71 | $ (0.19) |
Weighted-average common shares outstanding (basic) | 24,197,786 | 24,418,313 | 24,196,393 | 24,458,926 |
Weighted-average common shares outstanding (diluted) | 24,677,525 | 24,625,410 | 24,532,329 | 24,458,926 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Non-controlling Interests [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Treasury Stock [Member] | Redeemable Equity [Member] |
Stockholders equity, beginning of period at Feb. 28, 2019 | $ 395,101 | $ (12,571) | $ 264 | $ 296,946 | $ 148,582 | $ (16,944) | $ (21,176) | $ 0 |
Net loss | (2,372) | (1,224) | 0 | 0 | (1,148) | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | (904) | 0 | 0 | 0 | 0 | (904) | 0 | 0 |
Stock-based compensation expense | 159 | 0 | 0 | 159 | 0 | 0 | 0 | 0 |
Stockholders equity, end of period at May. 31, 2019 | 391,984 | (13,795) | 264 | 297,105 | 147,434 | (17,848) | (21,176) | 0 |
Stockholders equity, beginning of period at Feb. 28, 2019 | 395,101 | (12,571) | 264 | 296,946 | 148,582 | (16,944) | (21,176) | 0 |
Net loss | (8,169) | |||||||
Other comprehensive income (loss), net of tax | (1,567) | |||||||
Reclassifications of stockholders' equity to redeemable equity (see Note 8) | 745 | |||||||
Stockholders equity, end of period at Nov. 30, 2019 | 383,017 | (16,092) | 266 | 298,760 | 143,934 | (18,511) | (23,216) | (2,124) |
Stockholders equity, beginning of period at May. 31, 2019 | 391,984 | (13,795) | 264 | 297,105 | 147,434 | (17,848) | (21,176) | 0 |
Net loss | (7,164) | (1,200) | 0 | 0 | (5,964) | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | (383) | 0 | 0 | 0 | 0 | (383) | 0 | 0 |
Stock-based compensation expense | 161 | 0 | 2 | 1,184 | 0 | 0 | 0 | (1,025) |
Reclassifications of stockholders' equity to redeemable equity (see Note 8) | (745) | 0 | 0 | 0 | 0 | 0 | 0 | (745) |
Repurchase of common stock | (983) | 0 | 0 | 0 | 0 | 0 | (983) | 0 |
Stockholders equity, end of period at Aug. 31, 2019 | 382,870 | (14,995) | 266 | 298,289 | 141,470 | (18,231) | (22,159) | (1,770) |
Net loss | 1,367 | (1,097) | 0 | 0 | 2,464 | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | (280) | 0 | 0 | 0 | 0 | (280) | 0 | 0 |
Stock-based compensation expense | 117 | 0 | 0 | 471 | 0 | 0 | 0 | (354) |
Repurchase of common stock | (1,057) | 0 | 0 | 0 | 0 | 0 | (1,057) | 0 |
Stockholders equity, end of period at Nov. 30, 2019 | 383,017 | (16,092) | 266 | 298,760 | 143,934 | (18,511) | (23,216) | (2,124) |
Stockholders equity, beginning of period at Feb. 29, 2020 | 348,229 | (27,950) | 266 | 299,228 | 122,139 | (19,055) | (23,918) | (2,481) |
Net loss | (9,105) | (833) | 0 | 0 | (8,272) | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | 313 | 0 | 0 | 0 | 0 | 313 | 0 | 0 |
Stock-based compensation expense | 151 | 0 | 1 | 351 | 0 | 0 | 0 | (201) |
Stockholders equity, end of period at May. 31, 2020 | 339,588 | (28,783) | 267 | 299,579 | 113,867 | (18,742) | (23,918) | (2,682) |
Stockholders equity, beginning of period at Feb. 29, 2020 | 348,229 | (27,950) | 266 | 299,228 | 122,139 | (19,055) | (23,918) | (2,481) |
Net loss | 14,890 | |||||||
Other comprehensive income (loss), net of tax | 3,009 | |||||||
Reclassifications of stockholders' equity to redeemable equity (see Note 8) | 478 | |||||||
Stockholders equity, end of period at Nov. 30, 2020 | 366,530 | (30,379) | 267 | 300,107 | 139,458 | (16,046) | (23,918) | (2,959) |
Stockholders equity, beginning of period at May. 31, 2020 | 339,588 | (28,783) | 267 | 299,579 | 113,867 | (18,742) | (23,918) | (2,682) |
Net loss | 6,555 | (785) | 0 | 0 | 7,340 | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | 2,666 | 0 | 0 | 0 | 0 | 2,666 | 0 | 0 |
Settlement of SERP restricted stock units | (575) | 0 | 0 | (575) | 0 | 0 | 0 | 0 |
Stock-based compensation expense | 250 | 0 | 0 | 335 | 0 | 0 | 0 | (85) |
Stockholders equity, end of period at Aug. 31, 2020 | 348,484 | (29,568) | 267 | 299,339 | 121,207 | (16,076) | (23,918) | (2,767) |
Net loss | 17,440 | (811) | 0 | 0 | 18,251 | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | 30 | 0 | 0 | 0 | 0 | 30 | 0 | 0 |
Stock-based compensation expense | 576 | 0 | 0 | 768 | 0 | 0 | 0 | (192) |
Stockholders equity, end of period at Nov. 30, 2020 | $ 366,530 | $ (30,379) | $ 267 | $ 300,107 | $ 139,458 | $ (16,046) | $ (23,918) | $ (2,959) |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) (Unaudited) - shares | 3 Months Ended | |
Nov. 30, 2019 | Aug. 31, 2019 | |
Common Stock [Member] | ||
Treasury Stock, Shares, Acquired | 218,453 | 208,312 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 14,890 | $ (8,169) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Depreciation and amortization | 8,224 | 9,229 |
Amortization of debt discount | 508 | 617 |
Bad debt (recovery) expense | (385) | 303 |
Reduction in the carrying amount of the right of use asset | 836 | 668 |
Loss (gain) on forward contracts | 61 | (347) |
Equity in income of equity investees | (4,506) | (3,672) |
Distribution of income from equity investees | 4,248 | 4,169 |
Deferred income tax expense (benefit) | 4,187 | (338) |
Non-cash compensation adjustment | (455) | (51) |
Stock based compensation expense | 1,454 | 1,816 |
Gain on sale of property, plant, and equipment | (3,788) | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (78,692) | (20,880) |
Inventory | (31,406) | (9,353) |
Receivables from vendors | (19) | 790 |
Prepaid expenses and other | (6,465) | 528 |
Investment securities-trading | 455 | 304 |
Accounts payable, accrued expenses, accrued sales incentives, contract liabilities, and other liabilities | 83,049 | 3,379 |
Income taxes payable | 1,388 | 908 |
Net cash used in operating activities | (2,628) | (23,887) |
Cash flows from investing activities: | ||
Purchases of property, plant, and equipment | (3,510) | (2,192) |
Purchase of acquired business, less cash received | (11,000) | |
Proceeds from sale of property, plant, and equipment | 11,951 | |
Net cash (used in) provided by investing activities | (14,510) | 9,759 |
Cash flows from financing activities: | ||
Principal payments on finance lease obligation | (470) | (477) |
Repayment of bank obligations | (20,375) | (9,046) |
Borrowings on bank obligations | 20,000 | |
Deferred financing costs | (260) | |
Settlement of restricted stock units | (575) | |
Purchase of treasury stock | (2,040) | |
Net cash used in financing activities | (1,680) | (11,563) |
Effect of exchange rate changes on cash | 2,730 | (389) |
Net decrease in cash and cash equivalents | (16,088) | (26,080) |
Cash and cash equivalents at beginning of period | 37,425 | 58,236 |
Cash and cash equivalents at end of period | $ 21,337 | $ 32,156 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Nov. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | (1) Basis of Presentation The accompanying unaudited interim consolidated financial statements of VOXX International Corporation and Subsidiaries ("Voxx" or the "Company") have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission as defined in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 270 for interim financial information, and in accordance with accounting principles generally accepted in the United States of America (“GAAP”), and include all adjustments (consisting of normal recurring adjustments), which, in the opinion of management, are necessary to present fairly the consolidated financial position, results of operations, changes in stockholders’ equity, and cash flows for all periods presented. The results of operations are not necessarily indicative of the results to be expected for the full fiscal year or any interim period. These unaudited consolidated financial statements do not include all disclosures associated with consolidated financial statements prepared in accordance with GAAP. Accordingly, these statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto contained in the Company's Form 10-K for the fiscal year ended February 29, 2020. Certain amounts in the prior year have been reclassified to conform to the current year presentation. We operate in three reportable segments: Automotive Electronics, Consumer Electronics, and Biometrics. See Note 23 for the Company's segment reporting disclosures. |
Acquisitions
Acquisitions | 9 Months Ended |
Nov. 30, 2020 | |
Acquisitions And Dispositions [Abstract] | |
Acquisitions | (2) Acquisitions Directed LLC and Directed Electronics Canada, Inc. Acquisition On July 1, 2020, the Company completed the acquisition of certain assets and liabilities, which comprise the aftermarket vehicle remote start and security systems and connected car solutions (telematics) businesses of Directed LLC and Directed Electronics Canada Inc. (collectively, with Directed LLC, “Directed”) via an asset purchase agreement. The acquired assets include inventory, accounts receivable, certain fixed assets, IT systems, and intellectual property. The cash purchase price was $11,000. Net sales from the Company’s newly formed subsidiaries, VOXX DEI LLC and VOXX DEI Canada, Ltd. (collectively, with VOXX DEI LLC, “DEI”), included in our consolidated results for the three and nine months ended November 30, 2020 represented approximately 11.8% and 7.1%, respectively, of our consolidated net sales. DEI’s results of operations are included in the consolidated financial statements of Voxx in our Automotive Electronics segment. The purpose of this acquisition was to expand the Company’s market share within the automotive electronics industry. The following summarizes the allocation of the purchase price based upon the fair value of the assets acquired and liabilities assumed at the date of acquisition: July 1, 2020 Measurement Period Adjustments July 1, 2020 (as adjusted) Assets acquired: Inventory $ 7,054 - 7,054 Accounts receivable 5,173 67 5,240 Other current assets 160 - 160 Property and equipment 2,815 - 2,815 Operating lease, right of use asset 1,771 - 1,771 Customer relationships 2,600 (100 ) 2,500 Trademarks 4,500 - 4,500 Patented technology 1,030 - 1,030 Goodwill 3,290 55 3,345 Total assets acquired $ 28,393 $ 22 $ 28,415 Liabilities assumed: Accounts payable 8,144 - 8,144 Accrued expenses 1,406 11 1,417 Contract liabilities 4,872 11 4,883 Warranty accrual 1,200 - 1,200 Operating lease liability 1,771 - 1,771 Total $ 17,393 $ 22 $ 17,415 Total purchase price $ 11,000 $ - $ 11,000 The purchase allocation presented above is preliminary. We are in the process of refining the valuation of acquired assets and liabilities, including goodwill, and expect to finalize the purchase price allocation prior to June 30, 2021. During the three and nine months ended November 30, 2020, the Company recorded a cumulative net measurement period adjustment that increased goodwill by $55, as presented in the table above. The measurement period adjustment would have resulted in an insignificant decrease in amortization expense related to the customer relationships in the previous quarter. The Company made these measurement period adjustments to reflect facts and circumstances that existed as of the acquisition date and did not result from intervening events subsequent to such date. Goodwill was determined as the excess of the purchase price over the fair value of the assets acquired (including the identifiable intangible assets) and represents synergies expected. Vehicle Safety Holdings Corp. On January 31, 2020, the Company acquired certain assets and liabilities of Vehicle Safety Holdings Corp. (“VSHC”) via an asset purchase agreement for a preliminary purchase price of $16,610, which included $16,500 in cash and contingent consideration with a fair value of $110. Contingent consideration of up to a maximum of $750 is payable based upon the achievement of specified operating results, or the occurrence of certain events over the twelve-month The following summarizes the allocation of the purchase price based upon the fair value of the assets acquired and liabilities assumed at the date of acquisition: January 31, 2020 Measurement Period Adjustments January 31, 2020 (as adjusted) Assets acquired: Inventory $ 6,982 (489 ) 6,493 Accounts receivable 3,415 - 3,415 Right of use assets 483 - 483 Other current assets 145 - 145 Property and equipment 714 - 714 Customer relationships 5,460 - 5,460 Trademarks 560 - 560 Patented technology 280 - 280 Goodwill 215 583 798 Other non-current assets 3 - 3 Total assets acquired $ 18,257 $ 94 $ 18,351 Liabilities assumed: Accounts payable 757 - 757 Accrued expenses 219 94 313 Lease liabilities 483 - 483 Warranty accrual 188 - 188 Total $ 1,647 $ 94 $ 1,741 Total purchase price $ 16,610 $ - $ 16,610 The purchase allocation presented above is preliminary. We are in the process of refining the valuation of acquired assets and liabilities, including goodwill, and expect to finalize the purchase price allocation prior to January 30, 2021. During the three and nine months ended November 30, 2020, the Company recorded a cumulative net measurement period adjustment that increased goodwill by $583, as presented in the table above. The measurement period adjustment had no impact on the results of the previous quarters. The Company made these measurement period adjustments to reflect facts and circumstances that existed as of the acquisition date and did not result from intervening events subsequent to such date. Goodwill was determined as the excess of the purchase price over the fair value of the assets acquired (including the identifiable intangible assets) and represents synergies expected. |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share | 9 Months Ended |
Nov. 30, 2020 | |
Net Income Per Common Share [Abstract] | |
Net Income (Loss) Per Common Share | ( 3 ) Net Income (Loss) Per Common Share Basic net income (loss) per common share, net of non-controlling interest, is based upon the weighted-average common shares outstanding during the period. Diluted net income (loss) per common share, net of non-controlling interest, reflects the potential dilution that would occur if common stock equivalent securities or other contracts to issue common stock were exercised or converted into common stock. There are no reconciling items which impact the numerator of basic and diluted net income (loss) per common share. A reconciliation between the denominator of basic and diluted net income (loss) per common share is as follows: Three months ended November 30, Nine months ended November 30, 2020 2019 2020 2019 Weighted-average common shares outstanding (basic) 24,197,786 24,418,313 24,196,393 24,458,926 Effect of dilutive securities: Restricted stock and stock grants 479,739 207,097 335,936 — Weighted-average common shares and potential common shares outstanding (diluted) 24,677,525 24,625,410 24,532,329 24,458,926 Restricted stock and stock grants totaling 0 and 43,374 for the three months ended November 30, 2020 and 2019, respectively, and 17,009 and 672,531 for the nine months ended November 30, 2020 and 2019, respectively, were not included in the net income (loss) per diluted share calculation because the grant price of the restricted stock and stock grants was greater than the average market price of the Company’s common stock during these periods, or the inclusion of these components would have been anti-dilutive. |
Investment Securities
Investment Securities | 9 Months Ended |
Nov. 30, 2020 | |
Investment Securities [Abstract] | |
Investment Securities | ( 4 ) Investment Securities As of November 30, 2020, and February 29, 2020, the Company had the following investments: November 30, 2020 Fair Value Investment Securities Marketable Equity Securities Mutual funds $ 1,827 Total Marketable Equity Securities 1,827 Total Investment Securities $ 1,827 February 29, 2020 Fair Value Investment Securities Marketable Equity Securities Mutual funds $ 2,282 Total Marketable Securities 2,282 Total Investment Securities $ 2,282 Equity Securities Mutual Funds The Company’s mutual funds are held in connection with its deferred compensation plan. Changes in the carrying value of these securities are offset by changes in the corresponding deferred compensation liability. Other Long-Term Investments In July 2017, the Company sold its investment in RxNetworks, a non-controlled corporation, consisting of shares of the investee’s preferred stock. Voxx recognized a gain of $1,416 during Fiscal 2018 for the sale of this investment. A portion of the cash proceeds for the sale was subject to a hold-back provision, which was not included in the calculation of the gain recognized in Fiscal 2018, as it was considered a gain contingency. During the second quarter of Fiscal 2020, the hold-back provision expired, and the Company received additional proceeds from the sale in August 2019, recording an investment gain of $775 for the nine months ended November 30, 2019. In November 2020, a final disbursement of all remaining proceeds from the sale of RxNetworks attributable to Voxx was received in the amount of $42, which was recorded as an investment gain for the three and nine months ended November 30, 2020. |
Fair Value Measurements and Der
Fair Value Measurements and Derivatives | 9 Months Ended |
Nov. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Derivatives | ( 5 ) Fair Value Measurements and Derivatives The Company applies the authoritative guidance on “Fair Value Measurements," which among other things, requires enhanced disclosures about assets and liabilities that are measured and reported at fair value. This guidance establishes a hierarchal disclosure framework that prioritizes and ranks the level of market price observability used in measuring investments at fair value. Market price observability is impacted by a number of factors, including the type of investment and the characteristics specific to the investment. Investments with readily available active quoted prices, or for which fair value can be measured from actively quoted prices, generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. Investments measured and reported at fair value are classified and disclosed in one of the following categories: Level 1 - Quoted market prices in active markets for identical assets or liabilities. Level 2 - Inputs other than Level 1 inputs that are either directly or indirectly observable. Level 3 - Unobservable inputs developed using the Company's estimates and assumptions, which reflect those that market participants would use. At November 30, 2020 and February 29, 2020, the Company did not have any assets or liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3). The following table presents financial assets measured at fair value on a recurring basis at November 30, 2020: Fair Value Measurements at Reporting Date Using Total Level 1 Level 2 Cash and cash equivalents: Cash and money market funds $ 21,337 $ 21,337 $ — Derivatives: Designated for hedging $ (1,026 ) $ — $ (1,026 ) Investment securities: Mutual funds $ 1,827 $ 1,827 $ — Total investment securities $ 1,827 $ 1,827 $ — The following table presents financial assets and liabilities measured at fair value on a recurring basis at February 29, 2020: Fair Value Measurements at Reporting Date Using Total Level 1 Level 2 Cash and cash equivalents: Cash and money market funds $ 37,425 $ 37,425 $ — Derivatives: Designated for hedging $ (476 ) $ — $ (476 ) Investment securities: Mutual funds $ 2,282 $ 2,282 $ — Total investment securities $ 2,282 $ 2,282 $ — At November 30, 2020, the carrying value of the Company's accounts receivable, short-term debt, accounts payable, accrued expenses, bank obligations and long-term debt approximates fair value because of either (i) the short-term nature of the financial instrument; (ii) the interest rate on the financial instrument being reset every quarter to reflect current market rates; or (iii) the stated or implicit interest rate approximates the current market rates or are not materially different from market rates. Derivative Instruments The Company’s derivative instruments include forward foreign currency contracts and an interest rate swap agreement. The forward foreign currency contracts are utilized to hedge a portion of the Company’s foreign currency inventory purchases. The forward foreign currency derivatives qualifying for hedge accounting are designated as cash flow hedges and valued using observable forward rates for the same or similar instruments (Level 2). The duration of open forward foreign currency contracts ranges from 1 month to 15 months and are classified in the balance sheet according to their terms. The Company’s interest rate swap agreement hedges interest rate exposure related to the outstanding balance of its Florida Mortgage, with monthly payments due through March 2026. The swap agreement locks the interest rate on the debt at 3.48% (inclusive of credit spread) through the maturity date of the loan. Interest rate swap agreements qualifying for hedge accounting are designated as cash flow hedges and valued based on a comparison of the change in fair value of the actual swap contracts designated as the hedging instruments and the change in fair value of a hypothetical swap contract (Level 2). We calculate the fair value of our interest rate swap agreement quarterly based on the quoted market price for the same or similar financial instruments. Interest rate swaps are classified in the balance sheet as either assets or liabilities based on the fair value of the instruments at the end of the period . Financial Statement Classification The following table discloses the fair value as of November 30, 2020 and February 29, 2020 of the Company’s derivative instruments: Derivative Assets and Liabilities Fair Value Account November 30, 2020 February 29, 2020 Designated derivative instruments Foreign currency contracts Prepaid expenses and other current assets $ 236 $ — Accrued expenses and other current liabilities (710 ) — Interest rate swap agreement Other long-term liabilities (552 ) (476 ) Total derivatives $ (1,026 ) $ (476 ) Cash Flow Hedges The Company's policy is to enter into derivative instrument contracts with terms that coincide with the underlying exposure being hedged. As such, the Company’s derivative instruments are expected to be highly effective. For derivative instruments that are designated and qualify as cash flow hedges, the entire change in fair value of the hedging instrument included in the assessment of the hedge ineffectiveness is recorded to Other comprehensive income (loss). When the amounts recorded in Other comprehensive income (loss) are reclassified to earnings, they are presented in the same income statement line item as the effect of the hedged item. During the first quarter of Fiscal 2021, the Company entered into forward foreign currency contracts, which have a current outstanding notional value of $13,160 and are designated as cash flow hedges at November 30, 2020. During Fiscal 2020, the Company did not enter into any forward foreign currency contracts and all previous contracts were settled through February 29, 2020. The current outstanding notional value of the Company's interest rate swap at November 30, 2020 is $7,239. For cash flow hedges, the gain or loss is reported as a component of Other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The net (loss) income recognized in Other comprehensive income (loss) for foreign currency contracts is expected to be recognized in Cost of sales during the next eighteen months. No amounts were excluded from the assessment of hedge effectiveness during the respective periods. The gain or loss on the Company’s interest rate swap is recorded in Other comprehensive income (loss) and subsequently reclassified into Interest and bank charges in the period in which the hedged transaction affects earnings. As of November 30, 2020, no interest rate swaps originally designated for hedge accounting were de-designated or terminated. Activity related to cash flow hedges recorded during the three and nine months ended November 30, 2020 and 2019 was as follows: Three months ended Nine months ended November 30, 2020 November 30, 2020 Pretax Gain (Loss) Recognized in Other Comprehensive Income Pretax Loss Reclassified from Accumulated Other Comprehensive Income Pretax Loss Recognized in Other Comprehensive Income Pretax Loss Reclassified from Accumulated Other Comprehensive Income Cash flow hedges Foreign currency contracts $ (242 ) $ (121 ) $ (707 ) $ (69 ) Interest rate swaps 39 — (76 ) — Three months ended Nine months ended November 30, 2019 November 30, 2019 Pretax Gain Recognized in Other Comprehensive Income Pretax Gain Reclassified from Accumulated Other Comprehensive Income Pretax Gain (Loss) Recognized in Other Comprehensive Income Pretax Gain Reclassified from Accumulated Other Comprehensive Income Cash flow hedges Foreign currency contracts $ 41 $ 134 $ 357 $ 362 Interest rate swaps 79 — (260 ) — |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Nov. 30, 2020 | |
Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | ( 6 ) Accumulated Other Comprehensive Income (Loss) The Company’s accumulated other comprehensive income (loss) consists of the following: Foreign Currency Translation Losses Pension plan adjustments, net of tax Derivatives designated in a hedging relationship, net of tax Total Balance at February 29, 2020 $ (17,739 ) $ (887 ) $ (429 ) $ (19,055 ) Other comprehensive income (loss) before reclassifications 3,608 (85 ) (609 ) 2,914 Reclassified from accumulated other comprehensive loss — — 95 95 Net current-period other comprehensive income (loss) 3,608 (85 ) (514 ) 3,009 Balance at November 30, 2020 $ (14,131 ) $ (972 ) $ (943 ) $ (16,046 ) During the three and nine months ended November 30, 2020, the Company recorded other comprehensive income (loss), net of the associated tax impact of $38 and $200, respectively, related to derivatives designated in a hedging relationship, and $0 in both periods related to pension plan adjustments. The other comprehensive income (loss) before reclassification of $3,608 includes the remeasurement of intercompany transactions of a long-term investment nature of $(983) with certain subsidiaries whose functional currency is not the U.S. dollar, and $4,591 from translating the financial statements of the Company's non-U.S. dollar functional currency subsidiaries into our reporting currency, which is the U.S. dollar. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 9 Months Ended |
Nov. 30, 2020 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | ( 7 ) Supplemental Cash Flow Information The following is supplemental information relating to the Unaudited Consolidated Statements of Cash Flows: Nine months ended November 30, 2020 2019 Non-cash investing and financing activities: Issuance of redeemable equity $ - $ 1,379 Reclassification of stockholders' equity to redeemable equity 478 745 Increase in goodwill due to measurement period adjustments, net 638 - Settlement of debt with receivables 607 - Right of use assets obtained in exchange for operating lease obligations 735 1,214 Right of use assets obtained in exchange for finance lease obligations - 1,024 Right of use assets recorded in exchange for operating lease obligations upon the adoption of ASC 842 - 2,227 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 836 $ 668 Operating cash flows from finance leases 23 36 Finance cash flows from finance leases 470 477 Cash paid during the period: Interest (excluding bank charges) $ 831 $ 726 Income taxes (net of refunds) 1,139 565 |
Accounting for Stock-Based Comp
Accounting for Stock-Based Compensation | 9 Months Ended |
Nov. 30, 2020 | |
Accounting For Stock Based Compensation [Abstract] | |
Accounting for Stock-Based Compensation | ( 8 ) Accounting for Stock-Based Compensation The Company has various stock-based compensation plans, which are more fully described in Note 1 of the Notes to the Consolidated Financial Statements contained in the Company’s Form 10-K for the fiscal year ended February 29, 2020. Restricted stock awards are granted pursuant to the Company's 2012 Equity Incentive Plan (the "2012 Plan"). A restricted stock award is an award of common stock that is subject to certain restrictions during a specified period. Restricted stock awards are independent of option grants and are subject to forfeiture if employment terminates for a reason other than death, disability, or retirement prior to the release of the restrictions. The Company's Omnibus Equity Incentive Plan was established in 2014 (the "2014 Plan"). Pursuant to the 2014 Plan, Restricted Stock Units ("RSUs") may be awarded by the Company to any individual who is employed by, provides services to, or serves as a director of the Company or its affiliates. RSUs vest on the later of three years from the date of grant, or the grantee reaching the age of 65 years. The RSU awards will also vest upon the sale of all of the Company's issued and outstanding stock, the sale of all, or substantially all, of the assets of a subsidiary of which the grantee serves as CEO and/or President, or the termination of the grantee's employment without cause, provided that the grantee at the time of termination has been employed for at least 10 years. When vested, RSU awards may be settled in shares of common stock or in cash, at the Company's sole option. There are no market conditions inherent in an RSU award, only the employee performance requirement for performance awards, and the service requirement that the respective employee continues employment with the Company through the vesting date. In July 2020, the Company granted 48,269 RSU awards to employees under the 2014 Plan. The Company expenses the cost of RSU awards on a straight-line basis over the requisite service period of each grantee. For these purposes, the fair market value of each RSU is determined based on the mean of the high and low price of the Company's common stock on the grant date. The fair market value of each RSU granted in July 2020 was $5.76. In October 2020, the Company granted 40,000 fully vested RSU awards to its non-employee directors. The fair market value of each of these RSU’s was $8.89. Grant of Shares to Chief Executive Officer On July 8, 2019, the Board of Directors approved a five-year - An initial stock grant of 200,000 fully vested shares of Class A Common Stock issued in July 2019 under the 2012 Plan. - Additional stock grants of 100,000 shares of Class A Common Stock to be issued on each of March 1, 2020, March 1, 2021, and March 1, 2022. Compensation expense of $102 and $308 was recognized during the three and nine months ended November 30, 2020, respectively, based upon the grant fair value of $4.15 per share using the graded vesting attribution method. - Grant of market stock units (“MSU’s”) up to a maximum value of $5,000, based upon the achievement of a 90-calendar day average stock price of no less than $5.49 over the performance period ending on the third and fifth anniversary of the effective date of the Employment Agreement. The value of the MSU award increases based upon predetermined targeted 90-calendar day average stock prices with a maximum of $5,000 if the 90-calendar day average high stock price equals or exceeds $15.00. The number of shares to be issued related to the MSUs based upon achievement of the maximum award value of $5,000, and if issued at $15.00 per share, is estimated at 333,333 shares. Actual results may differ based upon when the high average stock price is achieved and settled. We recognized stock-based compensation expense of $60 and $182 during the three and nine months ended November 30, 2020, respectively, related to these MSU’s using the graded vesting attribution method over the performance period. As of November 30, 2020, all of the MSU’s remain outstanding. All stock grants under the Employment Agreement are subject to a hold requirement as specified in the Employment Agreement. The Employment Agreement gave Mr. Lavelle, in certain limited change of control situations, the right to require the Company to purchase the shares in connection with the Employment Agreement, shares personally acquired by Mr. Lavelle, and shares issued to him under other incentive compensation arrangements. Accordingly, the stock awards issued in connection with the Employment Agreement are presented as redeemable equity on the Consolidated Balance Sheet at grant-date fair value. RSUs previously held by Mr. Lavelle under the 2014 Plan and shares personally purchased by Mr. Lavelle have been reclassified from permanent equity to redeemable equity. As the contingent events that would allow Mr. Lavelle to redeem the shares are not probable at this time, remeasurement of the amounts in redeemable equity have not been recorded. The Employment Agreement contains certain restrictive and non-solicitation covenants. The following table presents a summary of the activity related to the initial stock grant, additional stock grants under the Employment Agreement, and RSU grants under the 2014 Plan for the nine months ended November 30, 2020: Number of Shares Weighted Average Grant Date Fair Value Unvested award balance at February 29, 2020 715,152 $ 5.07 Granted 88,269 7.18 Vested 99,697 7.21 Vested and settled 100,000 4.15 Unvested award balance at November 30, 2020 603,724 $ 5.18 At November 30, 2020, there were 278,318 vested and unsettled RSU awards under the Company’s 2014 Plan with a weighted average fair value of $7.71. In July 2020, the vested RSU awards for two of the Company’s former employees, totaling 105,123 award units, were settled in cash in an amount totaling $575. During the three and nine months ended November 30, 2020, the Company recorded $768 and $1,454, respectively, in total stock-based compensation related to the 2014 Plan, as well as additional stock grants and MSU’s under the Employment Agreement. As of November 30, 2020, there was approximately $1,760 of unrecognized stock-based compensation expense related to unvested RSU awards, stock grants, and MSU’s. |
Supply Chain Financing
Supply Chain Financing | 9 Months Ended |
Nov. 30, 2020 | |
Supply Chain Financing [Abstract] | |
Supply Chain Financing | ( 9 ) Supply Chain Financing The Company has supply chain financing agreements and factoring agreements that were entered into for the purpose of accelerating receivable collection and better managing cash flow. The balances under the agreements are sold without recourse and are accounted for as sales of accounts receivable. Total receivable balances sold for the three and nine months ended November 30, 2020, net of discounts, were $20,876 and $60,039, respectively, compared to $14,062 and $50,897, respectively, for the three and nine months ended November 30, 2019. |
Research and Development
Research and Development | 9 Months Ended |
Nov. 30, 2020 | |
Research And Development [Abstract] | |
Research and Development | ( 10 ) Research and Development Expenditures for research and development are charged to expense as incurred. Such expenditures amounted to $1,892 and $5,413 for the three and nine months ended November 30, 2020, respectively, compared to $1,672 and $5,434, respectively, for the three and nine months ended November 30, 2019. All amounts are net of customer reimbursements and are included within Engineering and technical support expenses on the Unaudited Consolidated Statements of Operations and Comprehensive Income (Loss). |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Nov. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | (1 1 ) Goodwill and Intangible Assets The change in goodwill by segment is as follows: Automotive Electronics: Amount Beginning balance at March 1, 2020 $ 8,467 Activity during the period 3,928 Balance at November 30, 2020 $ 12,395 Gross carrying value at November 30, 2020 $ 12,395 Accumulated impairment charge — Net carrying value at November 30, 2020 $ 12,395 Consumer Electronics: Beginning balance at March 1, 2020 $ 46,533 Activity during the period — Balance at November 30, 2020 $ 46,533 Gross carrying value at November 30, 2020 $ 78,696 Accumulated impairment charge (32,163 ) Net carrying value at November 30, 2020 $ 46,533 Total Goodwill, net $ 58,928 The Company's Biometrics segment did not carry a goodwill balance at November 30, 2020 or February 29, 2020. At November 30, 2020, intangible assets consisted of the following: Gross Carrying Value Accumulated Amortization Total Net Book Value Finite-lived intangible assets: Customer relationships $ 54,604 $ 35,312 $ 19,292 Trademarks/Tradenames 5,545 681 4,864 Developed technology 14,144 12,448 1,696 Patents 6,729 4,389 2,340 License 1,400 1,400 — Contracts 1,556 1,556 — Total finite-lived intangible assets $ 83,978 $ 55,786 28,192 Indefinite-lived intangible assets Trademarks 64,605 Total intangible assets, net $ 92,797 At February 29, 2020, intangible assets consisted of the following: Gross Carrying Value Accumulated Amortization Total Net Book Value Finite-lived intangible assets: Customer relationships $ 51,491 $ 31,880 $ 19,611 Trademarks/Tradenames 1,045 437 608 Developed technology 14,144 12,244 1,900 Patents 5,651 3,691 1,960 License 1,400 1,400 — Contracts 1,556 1,556 — Total finite-lived intangible assets $ 75,287 $ 51,208 24,079 Indefinite-lived intangible assets Trademarks 64,209 Total intangible assets, net $ 88,288 The Company recorded amortization expense of $1,477 and $3,973, respectively, for the three and nine months ended November 30, 2020 and $1,748 and $5,243 for the three and nine months ended November 30, 2019, respectively. The estimated aggregate amortization expense for all amortizable intangibles for November 30 of each of the succeeding years is as follows: Year Amount 2021 $ 5,741 2022 4,933 2023 4,336 2024 4,115 2025 3,991 |
Equity Investment
Equity Investment | 9 Months Ended |
Nov. 30, 2020 | |
Equity Method Investment Summarized Financial Information [Abstract] | |
Equity Investment | (1 2 ) Equity Investment As of November 30, 2020 and February 29, 2020, the Company has a 50% non-controlling ownership interest in ASA Electronics, LLC and Subsidiary (“ASA") which acts as a distributor of mobile electronics specifically designed for niche markets within the automotive industry, including RV's; buses; and commercial, heavy duty, agricultural, construction, powersport, and marine vehicles. The following presents summary financial information for ASA. Such summary financial information has been provided herein based upon the individual significance of ASA to the consolidated financial information of the Company. November 30, 2020 February 29, 2020 Current assets $ 49,755 $ 47,738 Non-current assets 4,755 5,453 Liabilities 10,146 9,343 Members' equity 44,364 43,848 Nine months ended November 30, 2020 2019 Net sales $ 67,940 $ 75,962 Gross profit 21,514 23,345 Operating income 8,761 7,083 Net income 9,012 7,344 The Company's share of income from ASA was $1,761 and $4,506 for the three and nine months ended November 30, 2020, respectively, and $967 and $3,672 for the three and nine months ended November 30, 2019, respectively. |
Income Taxes
Income Taxes | 9 Months Ended |
Nov. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (1 3 ) Income Taxes The Company’s provision for income taxes consists of federal, foreign, and state taxes necessary to align the Company’s year-to-date tax provision with the annual effective rate that it expects to achieve for the full year. At each interim period, the Company updates its estimate of the annual effective tax rate and records cumulative adjustments, as necessary. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) was enacted in response to the COVID-19 pandemic. The CARES Act made various tax law changes, including among other things (i) increased the limitation under IRC Section 163(j) for 2019 and 2020 to permit additional expensing of interest (ii) enacted technical corrections so that qualified improvement property can be immediately expensed under IRC Section 168(k) and net operating losses arising in tax years beginning in 2017 and ending in 2018 can be carried back two years and carried forward twenty years without a taxable income limitation as opposed to carried forward indefinitely, and (iii) made modifications to the federal net operating loss rules including permitting federal net operating losses incurred in 2018, 2019, and 2020 to be carried back to the five preceding taxable years. With respect to the technical correction to net operating losses, the Company recorded a discrete income tax provision of $4,275 during the nine months ended November 30, 2020, as its valuation allowance related to net operating losses with limited carryforward periods increased. For the three months ended November 30, 2020, the Company recorded an income tax provision of $2,334, which includes a discrete income tax benefit of $542 related primarily to finalization of the federal and certain state tax return filings. For the three months ended November 30, 2019, the Company recorded an income tax provision of $2,720, which includes a discrete income tax provision of $1,035. The Company recorded a discrete tax provision of $1,153 in connection with excluding the U.S. tax jurisdiction from the estimated annual effective tax rate and a discrete tax benefit of $118 primarily related to the reversal of uncertain tax provision liabilities as a result of the lapse of the applicable statute of limitations, the remeasurement of deferred tax assets and liabilities for enacted state law changes, offset by an income tax provision related to the finalization of federal and state tax filings during the quarter ended November 30, 2019. The effective tax rates for the three months ended November 30, 2020 and 2019 were an income tax provision of 11.8% on pre-tax income of $19,774 and an income tax provision of 66.6% on pre-tax income of $4,087, respectively. The effective tax rate for the three months ended November 30, 2020 differs from the U.S. statutory rate of 21% primarily due to the anticipated reversal of a portion of the U.S. valuation allowance based on projected current year earnings, immediate U.S. taxation of foreign earnings, non-controlling interest related to EyeLock LLC, state and local income taxes, nondeductible permanent differences, and income taxed in foreign jurisdictions at varying tax rates. The effective tax rate for the three months ended November 30, 2019 differed from the statutory rate of 21% primarily due to the calculation of the U.S. tax provision on a discrete basis, the U.S. taxation of foreign earnings, nondeductible permanent differences, non-controlling interest related to EyeLock LLC, an increase in the valuation allowance, state and local income taxes, and income taxed in foreign jurisdictions at varying tax rates. For the nine months ended November 30, 2020, the Company recorded an income tax provision of $6,724, which includes a discrete income tax provision of $3,609. The Company recorded a discrete tax provision of $4,275 related to an increase in valuation allowance as a result of the technical correction to net operating losses as provided in the CARES Act, and a discrete income tax benefit of $697 related to the finalization of federal and state filings during the quarter ended November 30 2020, and the reversal of uncertain tax provision liabilities as a result of the lapse of the applicable statute of limitations, offset with a discrete tax provision of $31 related to the accrual for interest for unrecognized tax benefits. For the nine months ended November 30, 2019, the Company recorded an income tax provision of $1,190, which includes a discrete income tax benefit of $345. The Company recorded a discrete tax benefit of $50 in connection with excluding the U.S. tax jurisdiction from the estimated annual effective tax rate, and a discrete income tax benefit of $295 primarily related to the reversal of uncertain tax provision liabilities as a result of the lapse of the applicable statute of limitations, the remeasurement of deferred tax assets and liabilities for enacted state law changes, offset by an income tax provision related to the finalization of federal and state tax filings during the quarter ended November 30, 2019. The effective tax rates for the nine months ended November 30, 2020 and 2019 were an income tax provision of 31.1% on pre-tax income of $21,614 and an income tax provision of 17.1% on a pre-tax loss of $6,979, respectively. The effective tax rate for the nine months ended November 30, 2020 differs from the U.S. statutory rate of 21% primarily due to the anticipated reversal of a portion of the U.S. valuation allowance based on projected current year earnings, immediate U.S. taxation of foreign earnings, non-controlling interest related to EyeLock LLC, state and local income taxes, nondeductible permanent differences, and income taxed in foreign jurisdictions at varying tax rates . The effective tax rate for the nine months ended November 30, 2019 differed from the statutory rate of 21 % primarily due to the calculation of the U.S. taxation provision on a discrete basis, the U.S. taxation of foreign earnings, non-deductible permanent differences, non-controlling interest related to EyeLock LLC, an increase in the valuation allowance, state and local income taxes, and income taxed in foreign jurisdictions at varying tax rates . At November 30, 2020, the Company had an uncertain tax position liability of $1,123, including interest and penalties. The unrecognized tax benefits include amounts related to various U.S. federal, state and local, and foreign tax issues. |
Inventory
Inventory | 9 Months Ended |
Nov. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventory | (1 4 ) Inventory Inventories by major category are as follows: November 30, 2020 February 29, 2020 Raw materials $ 25,124 $ 29,115 Work in process 2,080 2,366 Finished goods 111,403 67,629 Inventory $ 138,607 $ 99,110 |
Product Warranties and Product
Product Warranties and Product Repair Costs | 9 Months Ended |
Nov. 30, 2020 | |
Payables And Accruals Warranties [Abstract] | |
Product Warranties and Product Repair Costs | (1 5 ) Product Warranties and Product Repair Costs The following table provides a summary of the activity with respect to product warranties and product repair costs. The liability for product warranties is included within Accrued expenses and other current liabilities and the reserve for product repair costs is recorded as a reduction of Inventory on the Consolidated Balance Sheets. Three months ended November 30, Nine months ended November 30, 2020 2019 2020 2019 Opening balance $ 5,520 $ 4,062 $ 4,748 $ 4,469 Liabilities for warranties accrued during the period 864 1,445 2,339 3,879 Liabilities acquired during acquisition — — 1,200 — Warranty claims settled during the period (884 ) (1,076 ) (2,787 ) (3,917 ) Ending balance $ 5,500 $ 4,431 $ 5,500 $ 4,431 |
Accrued Restructuring Expense
Accrued Restructuring Expense | 9 Months Ended |
Nov. 30, 2020 | |
Restructuring And Related Activities [Abstract] | |
Accrued Restructuring Expense | (1 6 ) Accrued Restructuring Expense At February 29, 2020, the Company had accrued restructuring charges of $637 included in Accrued expenses and other current liabilities, representing charges incurred in Fiscal 2019 for the realignment of certain businesses within the organization. During the three and nine months ended November 30, 2020, an additional $63 and $532 of the accrual was settled and no additional restructuring expenses were incurred. At November 30, 2020, the remaining restructuring accrual in Accrued expenses and other current liabilities is $105. |
Financing Arrangements
Financing Arrangements | 9 Months Ended |
Nov. 30, 2020 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | (1 7 ) Financing Arrangements The Company has the following financing arrangements: November 30, 2020 February 29, 2020 Debt Domestic credit facility (a) $ — $ — Florida mortgage (b) 7,239 7,614 Euro asset-based lending obligation - VOXX Germany (c) — — Euro asset-based lending obligation - Magnat (d) — 607 Total debt 7,239 8,221 Less: current portion of long-term debt 500 1,107 Long-term debt 6,739 7,114 Less: debt issuance costs 766 1,015 Total long-term debt, net of debt issuance costs $ 5,973 $ 6,099 (a) Domestic Credit Facility The Company has a senior secured credit facility (the "Credit Facility"), which was amended in June 2020 and provides for a revolving credit facility with committed availability of up to $127,500. The Credit Facility also includes a $30,000 sublimit for letters of credit and a $15,000 sublimit for swingline loans. The availability under the revolving credit line within the Credit Facility is subject to a borrowing base, which is based on eligible accounts receivable, eligible inventory and certain real estate, subject to reserves as determined by the lender, and is also limited by amounts outstanding under the Florida Mortgage (see Note 17(b)). In April 2020, as a precautionary measure to ensure financial flexibility and maintain maximum liquidity in response to the COVID-19 pandemic, the Company borrowed $20,000 from the Credit Facility. This $20,000 precautionary borrowing was repaid in November 2020. The availability under the revolving credit line of the Credit Facility was $107,033 as of November 30, 2020. All amounts outstanding under the Credit Facility will mature and become due on April 26, 2022; however, it is subject to acceleration upon the occurrence of an Event of Default (as defined in the Credit Agreement). The Company may prepay any amounts outstanding at any time, subject to payment of certain breakage and redeployment costs relating to LIBOR Rate Loans. The commitments under the Credit Facility may be irrevocably reduced at any time, without premium or penalty as set forth in the agreement. Generally, the Company may designate specific borrowings under the Credit Facility as either Base Rate Loans or LIBOR Rate Loans, except that swingline loans may only be designated as Base Rate Loans. Loans designated as LIBOR Rate Loans bear interest at a rate equal to the then applicable LIBOR rate plus a range of 2.00 - 2.50% (3.0% at November 30, 2020). Loans designated as Base Rate loans bear interest at a rate equal to the applicable margin for Base Rate Loans of 1.00 - 1.50% as defined in the agreement and shall not be lower than 2.00% (4.50% at November 30, 2020 ) Provided that the Company is in a Compliance Period (the period commencing on that day in which Excess Availability is less than 20% of the Maximum Revolver Amount and ending on a day in which Excess Availability is equal to or greater than 20% for any consecutive 30-day period thereafter), the Credit Facility requires compliance with a financial covenant calculated as of the last day of each month, consisting of a Fixed Charge Coverage Ratio. The Credit Facility also contains covenants, subject to defined carveouts, that limit the ability of the loan parties and certain of their subsidiaries which are not loan parties to, among other things: (i) incur additional indebtedness; (ii) incur liens; (iii) merge, consolidate or dispose of a substantial portion of their business; (iv) transfer or dispose of assets; (v) change their name, organizational identification number, state or province of organization or organizational identity; (vi) make any material change in their nature of business; (vii) prepay or otherwise acquire indebtedness; (viii) cause any change of control; (ix) make any restricted junior payment; (x) change their fiscal year or method of accounting; (xi) make advances, loans or investments; (xii) enter into or permit any transaction with an affiliate of any borrower or any of their subsidiaries; (xiii) use proceeds for certain items; (xiv) issue or sell any of their stock; or (xv) consign or sell any of their inventory on certain terms. In addition, if excess availability under the Credit Facility were to fall below certain specified levels, as defined in the agreement, the lenders would have the right to assume dominion and control over the Company's cash. As of November 30, 2020, the Company was not in a Compliance Period. The obligations under the loan documents are secured by a general lien on, and security interest in, substantially all of the assets of the borrowers and certain of the guarantors, including accounts receivable, equipment, real estate, general intangibles, and inventory. The Company has guaranteed the obligations of the borrowers under the Credit Agreement. Charges incurred on the unused portion of the Credit Facility during the three and nine months ended November 30, 2020 totaled $130 and $371, respectively, compared to $125 and $378 during the three and nine months ended November 30, 2019, respectively. These charges are included within Interest and bank charges on the Unaudited Consolidated Statements of Operations and Comprehensive Income (Loss). The Company has deferred financing costs related to the Credit Facility and previous amendments and modification of the Credit Facility. In conjunction with the amendment to its Credit Facility in June 2020, the Company incurred additional financing fees of $260 that will be amortized over the remaining term of the facility. The Company accounted for the June 2020 amendment to the Credit Facility as a modification of debt; however, as there were certain changes to the syndicate bank participation, unamortized deferred financing costs of $53 were written off and charged to Interest and bank charges in the Unaudited Consolidated Statements of Operations and Comprehensive Income (Loss) for the nine months ended November 30, 2020. Deferred financing costs are included in Long-term debt on the accompanying Consolidated Balance Sheets as a contra-liability balance and are amortized through Interest and bank charges in the Unaudited Consolidated Statements of Operations and Comprehensive Income (Loss) over the term of the Credit Facility, which expires in April 2022. During the three and nine months ended November 30, 2020, the Company amortized $106 and $432 of these costs, as compared to $198 and $593 during the three and nine months ended November 30, 2019. The net unamortized balance of these deferred financing costs as of November 30, 2020 is $603. (b) Florida Mortgage On July 6, 2015, VOXX HQ LLC, the Company’s wholly owned subsidiary, closed on a $9,995 industrial development revenue tax exempt bond under a loan agreement in favor of the Orange County Industrial Development Authority (the “Authority”) to finance the construction of the Company's manufacturing facility and executive offices in Lake Nona, Florida. Wells Fargo Bank, N.A. ("Wells Fargo") was the purchaser of the bond and U.S. Bank National Association is the trustee under an Indenture of Trust with the Authority. Voxx borrowed the proceeds of the bond purchase from the Authority during construction as a revolving loan, which converted to a permanent mortgage upon completion of the facility in January 2016 (the "Florida Mortgage"). The Company makes principal and interest payments to Wells Fargo, which began March 1, 2016 and will continue through March of 2026. The Florida Mortgage bears interest at 70% of 1-month LIBOR plus 1.54% (1.69% at November 30, 2020) and is secured by a first mortgage on the property, a collateral assignment of leases and rents and a guaranty by the Company. The financial covenants of the Florida Mortgage are as defined in the Company’s Credit Facility with Wells Fargo dated April 26, 2016. The Company incurred debt financing costs totaling approximately $332 as a result of obtaining the Florida Mortgage, which are recorded as deferred financing costs and included in Long-term debt as a contra-liability balance on the accompanying Consolidated Balance Sheets and are being amortized through Interest and bank charges in the Unaudited Consolidated Statements of Operations and Comprehensive Income (Loss) over the ten-year On July 20, 2015, the Company entered into an interest rate swap agreement in order to hedge interest rate exposure related to the Florida Mortgage and pays a fixed rate of 3.48% under the swap agreement (See Note 5). (c) Euro Asset-Based Lending Obligation – VOXX Germany Foreign bank obligations include a Euro Asset-Based Lending ("ABL") credit facility, which has a credit limit of €8,000 for the Company's subsidiary, VOXX Germany, which expires on July 31, 2023. The rate of interest for the ABL is the three-month Euribor plus 2.30% (2.30% at November 30, 2020). As of November 30, 2020, there is no balance outstanding under this credit facility. (d) Euro Asset-Based Lending Obligation - Magnat At February 29, 2020, foreign bank obligations also included an ABL credit facility for the Company's subsidiary, Magnat. The rate of interest for the ABL was the three-month Euribor plus 2.10%. The facility expired on November 30, 2020 and was not renewed. |
Other (Expense) Income
Other (Expense) Income | 9 Months Ended |
Nov. 30, 2020 | |
Other Income And Expenses [Abstract] | |
Other (Expense) Income | (1 8 ) Other (Expense) Income Other (expense) income is comprised of the following: Three months ended November 30, Nine months ended November 30, 2020 2019 2020 2019 Foreign currency gain (loss) $ 34 $ 61 $ (445 ) $ 297 Interest income 6 199 77 814 Rental income 188 176 556 460 Miscellaneous (349 ) (758 ) (167 ) 298 Total other, net $ (121 ) $ (322 ) $ 21 $ 1,869 The decrease in interest income for the three and nine months ended November 30, 2020 as compared to the prior year periods primarily relates to the decrease in interest rates applicable to the Company’s short-term money market investments. For the nine months ended November 30, 2019, miscellaneous included proceeds from a key man life insurance policy in the amount of $1,000 related to a former employee of Klipsch Group, Inc. that Voxx became the beneficiary of in conjunction with the acquisition of Klipsch in Fiscal 2012, offset by a payment of $804 in settlement of the final working capital calculation related to the sale of the Company’s former Hirschmann subsidiary in Fiscal 2018. The final working capital settlement impacted both the three and nine months ended November 30, 2019. |
Foreign Currency
Foreign Currency | 9 Months Ended |
Nov. 30, 2020 | |
Foreign Currency [Abstract] | |
Foreign Currency | (1 9 ) Foreign Currency The Company has a subsidiary in Venezuela. Venezuela has experienced significant political and civil unrest, as well as economic instability for several years, and has implemented various foreign currency and price controls. The Company accounts for its Venezuela subsidiary as hyper-inflationary in accordance with the guidelines in ASC 830, "Foreign Currency." A hyper-inflationary economy designation occurs when a country has experienced cumulative inflation of approximately 100 percent or more over a 3-year period. The hyper-inflationary designation requires the local subsidiary in Venezuela to record all transactions as if they were denominated in U.S. dollars. As of November 30, 2020, the DICOM rate for the Sovereign Bolivar was approximately 1,033,000 bolivars to the U.S. dollar compared to 38,109 at November 30, 2019. The Company’s operations in Venezuela are suspended and net currency exchange gains and losses for the three and nine months ended November 30, 2020 were not significant. The Company has certain long-lived assets in Venezuela, which are held for investment purposes. These properties had no value at November 30, 2020 |
Lease Obligations
Lease Obligations | 9 Months Ended |
Nov. 30, 2020 | |
Leases [Abstract] | |
Lease Obligations | ( 20 ) Lease Obligations We account for leases in accordance with ASC 842 “Leases” (“ASC 842”). We determine whether an arrangement is a lease at inception. This determination generally depends on whether the arrangement conveys the right to control the use of an identified fixed asset explicitly or implicitly for a period of time in exchange for consideration. We have operating leases for office equipment, as well as offices, warehouses, and other facilities used for our operations. We also have finance leases comprised primarily of computer hardware and machinery and equipment. Our leases have remaining lease terms of less than 1 year to 10 years, some of which include renewal options. We consider these renewal options in determining the lease term used to establish our right-of-use assets and lease liabilities when it is determined that it is reasonably certain that the renewal option will be exercised. The Company had no short - term leases during the three and nine months ended November 30, 2020 . Refer to Note 7 for supplemental cash flow information related to leases. On September 30, 2019, the Company, through its subsidiary Voxx German Holdings GmbH, executed a sale leaseback transaction, selling its real property in Pulheim, Germany to CLM S.A. RL (“the Purchaser”) for €10,920. Net proceeds received from the transaction were approximately $9,500. The transaction qualified for sale leaseback accounting in accordance with ASC 842. Concurrently with the sale, the Company entered into an operating lease arrangement (“lease”) with the Purchaser for a small portion of the real property to continue to operate the combined Magnat/Klipsch sales office in Germany. The Company recognized a gain related to the execution of the sale transaction of $4,057 for the three and nine months ended November 30, 2019, which is recorded in Other income (expense) on the Unaudited Consolidated Statements of Operations and Comprehensive Income (Loss). The components of lease cost for the three and nine months ended November 30, 2020 and 2019 were as follows: Three months ended November 30, Nine months ended November 30, 2020 2019 2020 2019 Operating lease cost (a) (c) $ 328 $ 209 $ 836 $ 668 Finance lease cost: Amortization of right of use assets (a) 139 167 465 516 Interest on lease liabilities (b) 6 12 23 36 Total finance lease cost $ 145 $ 179 $ 488 $ 552 (a) Recorded within Selling, General and administrative, Engineering and technical support, and Cost of sales on the Consolidated Statement of Operations and Comprehensive (Loss) Income. (b) Recorded within Interest and bank charges on the Consolidated Statement of Operations and Comprehensive Income (Loss). (c) Includes immaterial amounts related to variable rent expense. Supplemental balance sheet information related to leases is as follows: November 30, 2020 February 29, 2020 Operating Leases Operating lease, right of use assets $ 4,811 $ 3,143 Total operating lease right of use assets $ 4,811 $ 3,143 Accrued expenses and other current liabilities $ 1,111 $ 784 Operating lease liabilities, less current portion 3,813 2,391 Total operating lease liabilities $ 4,924 $ 3,175 Finance Leases Property, plant, and equipment, gross $ 2,503 $ 2,503 Accumulated depreciation (1,674 ) (1,209 ) Total finance lease right of use assets $ 829 $ 1,294 Accrued expenses and other current liabilities $ 469 $ 613 Finance lease liabilities, less current portion 386 720 Total finance lease liabilities $ 855 $ 1,333 Weighted Average Remaining Lease Term Operating leases 6.1 years 4.4 years Finance leases 2.1 years 3.9 years Weighted Average Discount Rate Operating leases 4.54 % 5.98 % Finance leases 3.87 % 3.87 % Maturities of lease liabilities on November 30 of each of the succeeding years are as follows: Operating Leases Finance Leases 2021 $ 1,303 483 2022 1,119 274 2023 807 118 2024 632 — 2025 456 — Thereafter 1,228 — Total lease payments 5,545 875 Less imputed interest 621 20 Total $ 4,924 855 As of November 30, 2020, the Company has not entered into any lease agreements that have not yet commenced. The Company owns and occupies buildings as part of its operations. Certain space within these buildings may, from time to time, be leased to third parties from which the Company earns rental income as lessor. This leased space is recorded within property, plant and equipment and was not material to the Company's Consolidated Balance Sheets at November 30, 2020 and February 29, 2020. Rental income earned by the Company for the three and nine months ended November 30, 2020 and 2019 was $188 and $556, respectively, and $176 and $460, respectively, which is recorded within Other income (expense). |
Capital Structure
Capital Structure | 9 Months Ended |
Nov. 30, 2020 | |
Equity [Abstract] | |
Capital Structure | ( 2 1 ) Capital Structure The Company's capital structure is as follows: Shares Authorized Shares Outstanding Security Par Value November 30, 2020 February 29, 2020 November 30, 2020 February 29, 2020 Voting Rights per Share Liquidation Rights Preferred Stock $ 50.00 50,000 50,000 — — — $50 per share Series Preferred Stock $ 0.01 1,500,000 1,500,000 — — — — Class A Common Stock $ 0.01 60,000,000 60,000,000 21,666,976 21,556,976 1 Ratably with Class B Class B Common Stock $ 0.01 10,000,000 10,000,000 2,260,954 2,260,954 10 Ratably with Class A Treasury Stock at cost at cost 2,749,218 2,749,218 N/A N/A N/A |
Variable Interest Entity
Variable Interest Entity | 9 Months Ended |
Nov. 30, 2020 | |
Variable Interest Entity [Abstract] | |
Variable Interest Entity | (2 2 ) Variable Interest Entity A variable interest entity ("VIE") is an entity that either (i) has insufficient equity to permit the entity to finance its activities without additional subordinated financial support, or (ii) has equity investors who lack the characteristics of a controlling financial interest. Under ASC 810 - Consolidation • the power to direct the activities that most significantly impact the economic performance of the VIE; and • the right to receive benefits from, or the obligation to absorb losses of, the VIE that could be potentially significant to the VIE. On September 1, 2015, Voxx acquired a majority voting interest in substantially all of the assets and certain specified liabilities of EyeLock, Inc. and EyeLock Corporation, a market leader of iris-based identity authentication solutions, through a newly-formed entity, EyeLock LLC. The Company issued EyeLock LLC a promissory note for the purposes of repaying protective advances and funding working capital requirements of the entity. On October 9, 2020, this promissory note was amended and restated to allow EyeLock LLC to borrow up to $ . Through March 1, 2019, interest on the outstanding principal of the loan accrued at 10 %. From March 1, 2019 forward, interest accrue s at 2.5 %. The amended and restated promissory note is due on June 30 , 20 2 1 . The outstanding principal balance of this promissory note is convertible at the sole option of Voxx into units of EyeLock LLC. If Voxx chooses not to convert into equity, the outstanding loan principal of the amended and restated promissory note will be repaid at a multiple of 1.50 based on the repayment date. The agreement includes customary events of default and is collateralized by all of the property of EyeLock LLC . We determined that we hold a variable interest in EyeLock LLC as a result of: • our majority voting interest and ownership of substantially all of the assets and certain liabilities of the entity; and • the loan agreement with EyeLock LLC, which has a total outstanding balance of $59,033 as of November 30, 2020. We concluded that we became the primary beneficiary of EyeLock LLC on September 1, 2015 in conjunction with the acquisition. This was the first date on which we had the power to direct the activities that most significantly impact the economic performance of the entity because we acquired a majority interest in substantially all of the assets and certain liabilities of EyeLock, Inc. and EyeLock Corporation on this date, as well as obtained a majority voting interest as a result of this transaction. Although we are considered to have control over EyeLock LLC under ASC 810, due to our majority ownership interest, the assets of EyeLock LLC can only be used to satisfy the obligations of EyeLock LLC. As a result of our majority ownership interest in the entity and our primary beneficiary conclusion, we consolidated EyeLock LLC within our consolidated financial statements beginning on September 1, 2015. Assets and Liabilities of EyeLock LLC The following table sets forth the carrying values of assets and liabilities of EyeLock LLC that were included on our Consolidated Balance Sheets as of November 30, 2020 and February 29, 2020: November 30, 2020 February 29, 2020 Assets (unaudited) Current assets: Cash and cash equivalents $ — $ — Accounts receivable, net 210 147 Inventory, net 2,212 2,052 Prepaid expenses and other current assets 253 313 Total current assets 2,675 2,512 Property, plant and equipment, net 27 69 Intangible assets, net 2,397 2,600 Other assets 60 76 Total assets $ 5,159 $ 5,257 Liabilities and Partners' Deficit Current liabilities: Accounts payable $ 1,427 $ 2,086 Interest payable to VOXX 11,077 9,994 Accrued expenses and other current liabilities 1,000 252 Due to VOXX 59,033 54,074 Total current liabilities 72,537 66,406 Other long-term liabilities 1,200 1,200 Total liabilities 73,737 67,606 Commitments and contingencies Partners' deficit: Capital 41,416 41,416 Retained losses (109,994 ) (103,765 ) Total partners' deficit (68,578 ) (62,349 ) Total liabilities and partners' deficit $ 5,159 $ 5,257 Revenue and Expenses of EyeLock LLC The following table sets forth the revenues and expenses of EyeLock LLC that were included in our Unaudited Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and nine months ended November 30, 2020, respectively: For the three months ended November 30, For the nine months ended November 30, 2020 2019 2020 2019 Net sales $ 343 $ 138 $ 703 $ 412 Cost of sales 293 178 674 592 Gross profit 50 (40 ) 29 (180 ) Operating expenses: Selling 132 173 434 535 General and administrative 446 1,123 1,303 3,500 Engineering and technical support 1,178 1,232 3,427 3,951 Total operating expenses 1,756 2,528 5,164 7,986 Operating loss (1,706 ) (2,568 ) (5,135 ) (8,166 ) Other expense: Interest and bank charges (372 ) (324 ) (1,094 ) (939 ) Other, net — 79 — 79 Total other expense, net (372 ) (245 ) (1,094 ) (860 ) Loss before income taxes (2,078 ) (2,813 ) (6,229 ) (9,026 ) Income tax expense — — — — Net loss $ (2,078 ) $ (2,813 ) $ (6,229 ) $ (9,026 ) |
Segment Reporting
Segment Reporting | 9 Months Ended |
Nov. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | (2 3 ) Segment Reporting The Company operates in three distinct segments based on our products and our internal organizational structure. The three operating segments, which are also the Company’s reportable segments, are Automotive Electronics, Consumer Electronics, and Biometrics. Our Automotive Electronics segment designs, manufactures, markets and distributes rear-seat entertainment devices, remote start systems, automotive security, vehicle access systems, mobile interface modules, mobile multimedia devices, aftermarket/OE-styled radios, car link-smartphone telematics applications, driver distraction products, collision avoidance systems, location-based services, turn signal switches, automotive lighting products, automotive sensing and camera systems, USB ports, cruise control systems, heated seats, and satellite radio products. Our Consumer Electronics segment designs, manufactures, markets and distributes Our Biometrics segment designs, manufactures, markets, and distributes iris identification and biometric security related products. The accounting principles applied at the consolidated financial statement level are generally the same as those applied at the operating segment level and there are no material intersegment sales. The segments are allocated interest expense, based upon a pre-determined formula, which utilizes a percentage of each operating segment's intercompany balance, which is offset in Corporate/Eliminations. Segment data for each of the Company's segments is presented below: Automotive Electronics Consumer Electronics Biometrics Corporate/ Eliminations Total Three Months Ended November 30, 2020 Net sales $ 61,488 $ 139,039 $ 343 $ 195 $ 201,065 Equity in income of equity investees 1,761 — — — 1,761 Interest expense and bank charges 537 2,290 372 (2,728 ) 471 Depreciation and amortization expense 876 1,002 75 981 2,934 Income (loss) before income taxes 6,601 20,351 (2,078 ) (5,100 ) 19,774 Three Months Ended November 30, 2019 Net sales $ 29,985 $ 79,914 $ 138 $ 75 $ 110,112 Equity in income of equity investees 967 — — — 967 Interest expense and bank charges 137 2,560 324 (2,270 ) 751 Depreciation and amortization expense 187 1,093 783 1,038 3,101 Income (loss) before income taxes 92 9,583 (2,813 ) (2,775 ) 4,087 Nine Months Ended November 30, 2020 Net sales $ 111,397 $ 288,545 $ 703 $ 439 $ 401,084 Equity in income of equity investees 4,506 — — — 4,506 Interest expense and bank charges 1,058 6,584 1,094 (6,402 ) 2,334 Depreciation and amortization expense 2,050 2,921 247 3,006 8,224 Income (loss) before income taxes 3,730 33,087 (6,229 ) (8,974 ) 21,614 Nine Months Ended November 30, 2019 Net sales $ 86,472 $ 206,601 $ 398 $ 341 $ 293,812 Equity in income of equity investees 3,672 — — — 3,672 Interest expense and bank charges 354 7,427 939 (6,085 ) 2,635 Depreciation and amortization expense 567 3,356 2,352 2,954 9,229 Income (loss) before income taxes 869 8,976 (8,835 ) (7,989 ) (6,979 ) |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Nov. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Contracts with Customers | (2 4 ) Revenue from Contracts with Customers The Company recognizes revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”). The core principle of ASC 606 is that an entity recognizes revenue to depict the transfer of promised goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. We apply the FASB’s guidance on revenue recognition, which requires us to recognize the amount of revenue and consideration that we expect to receive in exchange for goods and services transferred to our customers. To do this, the Company applies the five-step model prescribed by the FASB, which requires us to: (i) identify the contract with the customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when, or as, we satisfy a performance obligation. Within our Automotive Electronics segment, while the majority of the contracts we enter into with Original Equipment Manufacturers (“OEM”) are long-term supply arrangements, the performance obligations are established by the enforceable contract, which is generally considered to be the purchase order. The purchase orders are of durations less than one year. As such, the Company applies the practical expedient in ASC paragraph 606-10-50-14 and does not disclose information about remaining performance obligations that have original expected durations of one year or less, for which work has not yet been performed. Performance Obligations The Company’s primary source of revenue is derived from the manufacture and distribution of consumer electronic, automotive electronic, and biometric products. Our consumer electronic products primarily consist of finished goods sold to retail and commercial customers, consisting of premium audio products and other consumer electronic products. Our automotive electronic products, some of which are manufactured by the Company, are sold both to OEM and aftermarket customers. Our biometrics products , primarily consisting of finished goods, are sold to retail and commercial customers. We recognize revenue for sales to our customers when transfer of control of the related good or service has occurred. The majority of our revenue was recognized under the point in time approach for the three and nine months ended November 30, 2020 . Certain telematic subscription revenues generated by our Automotive Electronics segment are recognized over time. Contract terms with certain of our OEM customers could result in additional products and services being transferred over time as a result of the customized nature of some of our products, together with contractual provisions in the customer contracts that provide us with an enforceable right to payment for performance completed to date; however, under typical terms, we do not have the right to consideration until the time of shipment from our manufacturing facilities or distribution centers, or until the time of delivery to our customers. If certain contracts in the future provide the Company with this enforceable right of payment, the timing of revenue recognition from products transferred to customers over time may be slightly accelerated compared to our right to consideration at the time of shipment or delivery. Under ASC 606, we are required to present a refund liability and a return asset within the Consolidated Balance Sheets. The changes in the refund liability are reported in Net sales, and the changes in the return asset are reported in Cost of sales in the Unaudited Consolidated Statements of Operations and Comprehensive Income (Loss). As of November 30, 2020 and February 29, 2020, the balance of the return asset was $1,822 and $1,544, respectively, and the balance of the refund liability was $4,185 and $3,779, respectively, and are presented within Prepaid expenses and other current assets and Accrued expenses and other current liabilities, respectively, on the Consolidated Balance Sheets. We warrant our products against certain defects in material and workmanship when used as designed, which primarily range from 30 days to 3 years. We offer limited lifetime warranties on certain products, which limit the customer’s remedy to the repair or replacement of the defective product or part for the designated lifetime of the product, or for the life of the vehicle for the original owner, if it is an automotive product. We do not sell extended warranties. Contract Balances Contract assets primarily relate to the Company’s rights to consideration for work completed but not billed at the reporting date on contracts with customers. Contract assets are transferred to receivables when the rights become unconditional. Contract liabilities primarily relate to contracts where advance payments or deposits have been received, but performance obligations have not yet been met, and therefore, revenue has not been recognized. The Company had current and non-current contract liability balances totaling $4,412 at November 30, 2020 related to telematic subscription services of the Company’s DEI subsidiary established in connection with the Company’s acquisition in July 2020 (see Note 2). Revenue recognized for the three months ended November 30, 2020 that was included in the contract liability balance for the Company’s August 31, 2020 quarter-end date was $2,767. There were no contract liability balances at February 29, 2020. The Company had no contract asset balances at November 30, 2020 or February 29, 2020. Disaggregation of Revenue The Company operates in three reportable segments: Automotive Electronics, Consumer Electronics, and Biometrics. ASC 606 requires further disaggregation of an entity’s revenue. In the following table, the Company's net sales are disaggregated by segment and product type for the three and nine months ended November 30, 2020 and 2019: Three months ended November 30, Nine months ended November 30, 2020 2019 2020 2019 Automotive Electronics Segment OEM Products $ 14,089 $ 10,628 $ 32,462 $ 37,391 Aftermarket Products 47,399 19,357 78,935 49,081 Total Automotive Segment 61,488 29,985 111,397 86,472 Consumer Electronics Segment Premium Audio Products 112,681 53,250 216,501 128,056 Other Consumer Electronic Products 26,358 26,664 72,044 78,545 Total Consumer Electronics Segment 139,039 79,914 288,545 206,601 Biometrics Segment Biometric Products 343 138 703 398 Total Biometrics Segment 343 138 703 398 Corporate/Eliminations 195 75 439 341 Total Net Sales $ 201,065 $ 110,112 $ 401,084 $ 293,812 |
Contingencies
Contingencies | 9 Months Ended |
Nov. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingencies | (2 5 ) Contingencies The Company is currently, and has in the past, been a party to various routine legal proceedings incident to the ordinary course of business. If management determines, based on the underlying facts and circumstances of each matter, that it is probable a loss will result from a litigation contingency and the amount of the loss can be reasonably estimated, the estimated loss is accrued for. The Company does not believe that any current outstanding litigation matters will have a material adverse effect on the Company's financial statements, individually, or in the aggregate. The products the Company sells are continually changing as a result of improved technology. As a result, although the Company and its suppliers attempt to avoid infringing known proprietary rights, the Company may be subject to legal proceedings and claims for alleged infringement by patent, trademark, or other intellectual property owners. Any claims relating to the infringement of third-party proprietary rights, even if not meritorious, could result in costly litigation, divert management’s attention and resources, or require the Company to either enter into royalty or license agreements that are not advantageous to the Company, or pay material amounts of damages. |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Nov. 30, 2020 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Pronouncements | (2 6 ) New Accounting Pronouncements In August 2018, the FASB issued ASU No. 2018-14, "Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans." ASU 2018-14 removes certain disclosures that are not considered cost beneficial, clarifies certain required disclosures and added additional disclosures. This ASU is effective for public companies for annual reporting periods and interim periods within those annual periods beginning after December 15, 2020. The amendments in ASU 2018-14 must be applied on a retrospective basis. The Company is currently assessing the effect, if any, that ASU 2018-14 will have on the disclosures in its consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, “Simplifying the Accounting for Income Taxes.” This guidance removes certain exceptions related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. This guidance also clarifies and simplifies other areas of ASC 740 . In January 2020, the FASB issued ASU No. 2020-01, “Investments – Equity Securities (Topic 321), Investments – Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) – Clarifying the Interactions between Topic 321, Topic 323, and Topic 815.” The ASU is based on a consensus of the Emerging Issues Task Force and is expected to increase comparability in accounting for these transactions by clarifying the interaction of the accounting for equity securities under Topic 321 and investments accounted for under the equity method of accounting under Topic 323, and the accounting for certain forward contracts and purchased options accounted for under Topic 815 . This ASU is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the adoption of ASU 2020-01 to have a material impact on its consolidated financial statements . |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Nov. 30, 2020 | |
Directed LLC and Directed Electronics Canada Inc [Member] | |
Summary of Allocation of Purchase Price for Fair Value of Assets Acquired and Liabilities Assumed | The following summarizes the allocation of the purchase price based upon the fair value of the assets acquired and liabilities assumed at the date of acquisition: July 1, 2020 Measurement Period Adjustments July 1, 2020 (as adjusted) Assets acquired: Inventory $ 7,054 - 7,054 Accounts receivable 5,173 67 5,240 Other current assets 160 - 160 Property and equipment 2,815 - 2,815 Operating lease, right of use asset 1,771 - 1,771 Customer relationships 2,600 (100 ) 2,500 Trademarks 4,500 - 4,500 Patented technology 1,030 - 1,030 Goodwill 3,290 55 3,345 Total assets acquired $ 28,393 $ 22 $ 28,415 Liabilities assumed: Accounts payable 8,144 - 8,144 Accrued expenses 1,406 11 1,417 Contract liabilities 4,872 11 4,883 Warranty accrual 1,200 - 1,200 Operating lease liability 1,771 - 1,771 Total $ 17,393 $ 22 $ 17,415 Total purchase price $ 11,000 $ - $ 11,000 |
VSHC [Member] | |
Summary of Allocation of Purchase Price for Fair Value of Assets Acquired and Liabilities Assumed | The following summarizes the allocation of the purchase price based upon the fair value of the assets acquired and liabilities assumed at the date of acquisition: January 31, 2020 Measurement Period Adjustments January 31, 2020 (as adjusted) Assets acquired: Inventory $ 6,982 (489 ) 6,493 Accounts receivable 3,415 - 3,415 Right of use assets 483 - 483 Other current assets 145 - 145 Property and equipment 714 - 714 Customer relationships 5,460 - 5,460 Trademarks 560 - 560 Patented technology 280 - 280 Goodwill 215 583 798 Other non-current assets 3 - 3 Total assets acquired $ 18,257 $ 94 $ 18,351 Liabilities assumed: Accounts payable 757 - 757 Accrued expenses 219 94 313 Lease liabilities 483 - 483 Warranty accrual 188 - 188 Total $ 1,647 $ 94 $ 1,741 Total purchase price $ 16,610 $ - $ 16,610 |
Net Income (Loss) Per Common _2
Net Income (Loss) Per Common Share (Tables) | 9 Months Ended |
Nov. 30, 2020 | |
Net Income Per Common Share [Abstract] | |
Reconciliation Between Denominator of Basic and Diluted Net Income (Loss) Per Common Share | There are no reconciling items which impact the numerator of basic and diluted net income (loss) per common share. A reconciliation between the denominator of basic and diluted net income (loss) per common share is as follows: Three months ended November 30, Nine months ended November 30, 2020 2019 2020 2019 Weighted-average common shares outstanding (basic) 24,197,786 24,418,313 24,196,393 24,458,926 Effect of dilutive securities: Restricted stock and stock grants 479,739 207,097 335,936 — Weighted-average common shares and potential common shares outstanding (diluted) 24,677,525 24,625,410 24,532,329 24,458,926 |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Nov. 30, 2020 | |
Investment Securities [Abstract] | |
Unrealized Gain (Loss) on Investments | As of November 30, 2020, and February 29, 2020, the Company had the following investments: November 30, 2020 Fair Value Investment Securities Marketable Equity Securities Mutual funds $ 1,827 Total Marketable Equity Securities 1,827 Total Investment Securities $ 1,827 February 29, 2020 Fair Value Investment Securities Marketable Equity Securities Mutual funds $ 2,282 Total Marketable Securities 2,282 Total Investment Securities $ 2,282 |
Fair Value Measurements and D_2
Fair Value Measurements and Derivatives (Tables) | 9 Months Ended |
Nov. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | The following table presents financial assets measured at fair value on a recurring basis at November 30, 2020: Fair Value Measurements at Reporting Date Using Total Level 1 Level 2 Cash and cash equivalents: Cash and money market funds $ 21,337 $ 21,337 $ — Derivatives: Designated for hedging $ (1,026 ) $ — $ (1,026 ) Investment securities: Mutual funds $ 1,827 $ 1,827 $ — Total investment securities $ 1,827 $ 1,827 $ — The following table presents financial assets and liabilities measured at fair value on a recurring basis at February 29, 2020: Fair Value Measurements at Reporting Date Using Total Level 1 Level 2 Cash and cash equivalents: Cash and money market funds $ 37,425 $ 37,425 $ — Derivatives: Designated for hedging $ (476 ) $ — $ (476 ) Investment securities: Mutual funds $ 2,282 $ 2,282 $ — Total investment securities $ 2,282 $ 2,282 $ — |
Fair Value, by Balance Sheet Grouping | The following table discloses the fair value as of November 30, 2020 and February 29, 2020 of the Company’s derivative instruments: Derivative Assets and Liabilities Fair Value Account November 30, 2020 February 29, 2020 Designated derivative instruments Foreign currency contracts Prepaid expenses and other current assets $ 236 $ — Accrued expenses and other current liabilities (710 ) — Interest rate swap agreement Other long-term liabilities (552 ) (476 ) Total derivatives $ (1,026 ) $ (476 ) |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | Activity related to cash flow hedges recorded during the three and nine months ended November 30, 2020 and 2019 was as follows: Three months ended Nine months ended November 30, 2020 November 30, 2020 Pretax Gain (Loss) Recognized in Other Comprehensive Income Pretax Loss Reclassified from Accumulated Other Comprehensive Income Pretax Loss Recognized in Other Comprehensive Income Pretax Loss Reclassified from Accumulated Other Comprehensive Income Cash flow hedges Foreign currency contracts $ (242 ) $ (121 ) $ (707 ) $ (69 ) Interest rate swaps 39 — (76 ) — Three months ended Nine months ended November 30, 2019 November 30, 2019 Pretax Gain Recognized in Other Comprehensive Income Pretax Gain Reclassified from Accumulated Other Comprehensive Income Pretax Gain (Loss) Recognized in Other Comprehensive Income Pretax Gain Reclassified from Accumulated Other Comprehensive Income Cash flow hedges Foreign currency contracts $ 41 $ 134 $ 357 $ 362 Interest rate swaps 79 — (260 ) — |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Nov. 30, 2020 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The Company’s accumulated other comprehensive income (loss) consists of the following: Foreign Currency Translation Losses Pension plan adjustments, net of tax Derivatives designated in a hedging relationship, net of tax Total Balance at February 29, 2020 $ (17,739 ) $ (887 ) $ (429 ) $ (19,055 ) Other comprehensive income (loss) before reclassifications 3,608 (85 ) (609 ) 2,914 Reclassified from accumulated other comprehensive loss — — 95 95 Net current-period other comprehensive income (loss) 3,608 (85 ) (514 ) 3,009 Balance at November 30, 2020 $ (14,131 ) $ (972 ) $ (943 ) $ (16,046 ) |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 9 Months Ended |
Nov. 30, 2020 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | The following is supplemental information relating to the Unaudited Consolidated Statements of Cash Flows: Nine months ended November 30, 2020 2019 Non-cash investing and financing activities: Issuance of redeemable equity $ - $ 1,379 Reclassification of stockholders' equity to redeemable equity 478 745 Increase in goodwill due to measurement period adjustments, net 638 - Settlement of debt with receivables 607 - Right of use assets obtained in exchange for operating lease obligations 735 1,214 Right of use assets obtained in exchange for finance lease obligations - 1,024 Right of use assets recorded in exchange for operating lease obligations upon the adoption of ASC 842 - 2,227 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 836 $ 668 Operating cash flows from finance leases 23 36 Finance cash flows from finance leases 470 477 Cash paid during the period: Interest (excluding bank charges) $ 831 $ 726 Income taxes (net of refunds) 1,139 565 |
Accounting for Stock-Based Co_2
Accounting for Stock-Based Compensation (Tables) | 9 Months Ended |
Nov. 30, 2020 | |
Share Based Compensation [Abstract] | |
Summary of Activity Related to Initial Stock Grant Additional Stock Grants under Employment Agreement and RSU Grants under 2014 Plan | The following table presents a summary of the activity related to the initial stock grant, additional stock grants under the Employment Agreement, and RSU grants under the 2014 Plan for the nine months ended November 30, 2020: Number of Shares Weighted Average Grant Date Fair Value Unvested award balance at February 29, 2020 715,152 $ 5.07 Granted 88,269 7.18 Vested 99,697 7.21 Vested and settled 100,000 4.15 Unvested award balance at November 30, 2020 603,724 $ 5.18 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Nov. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The change in goodwill by segment is as follows: Automotive Electronics: Amount Beginning balance at March 1, 2020 $ 8,467 Activity during the period 3,928 Balance at November 30, 2020 $ 12,395 Gross carrying value at November 30, 2020 $ 12,395 Accumulated impairment charge — Net carrying value at November 30, 2020 $ 12,395 Consumer Electronics: Beginning balance at March 1, 2020 $ 46,533 Activity during the period — Balance at November 30, 2020 $ 46,533 Gross carrying value at November 30, 2020 $ 78,696 Accumulated impairment charge (32,163 ) Net carrying value at November 30, 2020 $ 46,533 Total Goodwill, net $ 58,928 The Company's Biometrics segment did not carry a goodwill balance at November 30, 2020 or February 29, 2020. |
Schedule of Intangible Assets, Excluding Goodwill | At November 30, 2020, intangible assets consisted of the following: Gross Carrying Value Accumulated Amortization Total Net Book Value Finite-lived intangible assets: Customer relationships $ 54,604 $ 35,312 $ 19,292 Trademarks/Tradenames 5,545 681 4,864 Developed technology 14,144 12,448 1,696 Patents 6,729 4,389 2,340 License 1,400 1,400 — Contracts 1,556 1,556 — Total finite-lived intangible assets $ 83,978 $ 55,786 28,192 Indefinite-lived intangible assets Trademarks 64,605 Total intangible assets, net $ 92,797 At February 29, 2020, intangible assets consisted of the following: Gross Carrying Value Accumulated Amortization Total Net Book Value Finite-lived intangible assets: Customer relationships $ 51,491 $ 31,880 $ 19,611 Trademarks/Tradenames 1,045 437 608 Developed technology 14,144 12,244 1,900 Patents 5,651 3,691 1,960 License 1,400 1,400 — Contracts 1,556 1,556 — Total finite-lived intangible assets $ 75,287 $ 51,208 24,079 Indefinite-lived intangible assets Trademarks 64,209 Total intangible assets, net $ 88,288 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The estimated aggregate amortization expense for all amortizable intangibles for November 30 of each of the succeeding years is as follows: Year Amount 2021 $ 5,741 2022 4,933 2023 4,336 2024 4,115 2025 3,991 |
Equity Investment (Tables)
Equity Investment (Tables) | 9 Months Ended |
Nov. 30, 2020 | |
Equity Method Investment Summarized Financial Information [Abstract] | |
Equity Method Investment, Summarized Financial Information | The following presents summary financial information for ASA. Such summary financial information has been provided herein based upon the individual significance of ASA to the consolidated financial information of the Company. November 30, 2020 February 29, 2020 Current assets $ 49,755 $ 47,738 Non-current assets 4,755 5,453 Liabilities 10,146 9,343 Members' equity 44,364 43,848 Nine months ended November 30, 2020 2019 Net sales $ 67,940 $ 75,962 Gross profit 21,514 23,345 Operating income 8,761 7,083 Net income 9,012 7,344 |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Nov. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | Inventories by major category are as follows: November 30, 2020 February 29, 2020 Raw materials $ 25,124 $ 29,115 Work in process 2,080 2,366 Finished goods 111,403 67,629 Inventory $ 138,607 $ 99,110 |
Product Warranties and Produc_2
Product Warranties and Product Repair Costs (Tables) | 9 Months Ended |
Nov. 30, 2020 | |
Payables And Accruals Warranties [Abstract] | |
Schedule of Product Warranty Liability | The following table provides a summary of the activity with respect to product warranties and product repair costs. The liability for product warranties is included within Accrued expenses and other current liabilities and the reserve for product repair costs is recorded as a reduction of Inventory on the Consolidated Balance Sheets. Three months ended November 30, Nine months ended November 30, 2020 2019 2020 2019 Opening balance $ 5,520 $ 4,062 $ 4,748 $ 4,469 Liabilities for warranties accrued during the period 864 1,445 2,339 3,879 Liabilities acquired during acquisition — — 1,200 — Warranty claims settled during the period (884 ) (1,076 ) (2,787 ) (3,917 ) Ending balance $ 5,500 $ 4,431 $ 5,500 $ 4,431 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 9 Months Ended |
Nov. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company has the following financing arrangements: November 30, 2020 February 29, 2020 Debt Domestic credit facility (a) $ — $ — Florida mortgage (b) 7,239 7,614 Euro asset-based lending obligation - VOXX Germany (c) — — Euro asset-based lending obligation - Magnat (d) — 607 Total debt 7,239 8,221 Less: current portion of long-term debt 500 1,107 Long-term debt 6,739 7,114 Less: debt issuance costs 766 1,015 Total long-term debt, net of debt issuance costs $ 5,973 $ 6,099 (a) Domestic Credit Facility The Company has a senior secured credit facility (the "Credit Facility"), which was amended in June 2020 and provides for a revolving credit facility with committed availability of up to $127,500. The Credit Facility also includes a $30,000 sublimit for letters of credit and a $15,000 sublimit for swingline loans. The availability under the revolving credit line within the Credit Facility is subject to a borrowing base, which is based on eligible accounts receivable, eligible inventory and certain real estate, subject to reserves as determined by the lender, and is also limited by amounts outstanding under the Florida Mortgage (see Note 17(b)). In April 2020, as a precautionary measure to ensure financial flexibility and maintain maximum liquidity in response to the COVID-19 pandemic, the Company borrowed $20,000 from the Credit Facility. This $20,000 precautionary borrowing was repaid in November 2020. The availability under the revolving credit line of the Credit Facility was $107,033 as of November 30, 2020. All amounts outstanding under the Credit Facility will mature and become due on April 26, 2022; however, it is subject to acceleration upon the occurrence of an Event of Default (as defined in the Credit Agreement). The Company may prepay any amounts outstanding at any time, subject to payment of certain breakage and redeployment costs relating to LIBOR Rate Loans. The commitments under the Credit Facility may be irrevocably reduced at any time, without premium or penalty as set forth in the agreement. Generally, the Company may designate specific borrowings under the Credit Facility as either Base Rate Loans or LIBOR Rate Loans, except that swingline loans may only be designated as Base Rate Loans. Loans designated as LIBOR Rate Loans bear interest at a rate equal to the then applicable LIBOR rate plus a range of 2.00 - 2.50% (3.0% at November 30, 2020). Loans designated as Base Rate loans bear interest at a rate equal to the applicable margin for Base Rate Loans of 1.00 - 1.50% as defined in the agreement and shall not be lower than 2.00% (4.50% at November 30, 2020 ) Provided that the Company is in a Compliance Period (the period commencing on that day in which Excess Availability is less than 20% of the Maximum Revolver Amount and ending on a day in which Excess Availability is equal to or greater than 20% for any consecutive 30-day period thereafter), the Credit Facility requires compliance with a financial covenant calculated as of the last day of each month, consisting of a Fixed Charge Coverage Ratio. The Credit Facility also contains covenants, subject to defined carveouts, that limit the ability of the loan parties and certain of their subsidiaries which are not loan parties to, among other things: (i) incur additional indebtedness; (ii) incur liens; (iii) merge, consolidate or dispose of a substantial portion of their business; (iv) transfer or dispose of assets; (v) change their name, organizational identification number, state or province of organization or organizational identity; (vi) make any material change in their nature of business; (vii) prepay or otherwise acquire indebtedness; (viii) cause any change of control; (ix) make any restricted junior payment; (x) change their fiscal year or method of accounting; (xi) make advances, loans or investments; (xii) enter into or permit any transaction with an affiliate of any borrower or any of their subsidiaries; (xiii) use proceeds for certain items; (xiv) issue or sell any of their stock; or (xv) consign or sell any of their inventory on certain terms. In addition, if excess availability under the Credit Facility were to fall below certain specified levels, as defined in the agreement, the lenders would have the right to assume dominion and control over the Company's cash. As of November 30, 2020, the Company was not in a Compliance Period. The obligations under the loan documents are secured by a general lien on, and security interest in, substantially all of the assets of the borrowers and certain of the guarantors, including accounts receivable, equipment, real estate, general intangibles, and inventory. The Company has guaranteed the obligations of the borrowers under the Credit Agreement. Charges incurred on the unused portion of the Credit Facility during the three and nine months ended November 30, 2020 totaled $130 and $371, respectively, compared to $125 and $378 during the three and nine months ended November 30, 2019, respectively. These charges are included within Interest and bank charges on the Unaudited Consolidated Statements of Operations and Comprehensive Income (Loss). The Company has deferred financing costs related to the Credit Facility and previous amendments and modification of the Credit Facility. In conjunction with the amendment to its Credit Facility in June 2020, the Company incurred additional financing fees of $260 that will be amortized over the remaining term of the facility. The Company accounted for the June 2020 amendment to the Credit Facility as a modification of debt; however, as there were certain changes to the syndicate bank participation, unamortized deferred financing costs of $53 were written off and charged to Interest and bank charges in the Unaudited Consolidated Statements of Operations and Comprehensive Income (Loss) for the nine months ended November 30, 2020. Deferred financing costs are included in Long-term debt on the accompanying Consolidated Balance Sheets as a contra-liability balance and are amortized through Interest and bank charges in the Unaudited Consolidated Statements of Operations and Comprehensive Income (Loss) over the term of the Credit Facility, which expires in April 2022. During the three and nine months ended November 30, 2020, the Company amortized $106 and $432 of these costs, as compared to $198 and $593 during the three and nine months ended November 30, 2019. The net unamortized balance of these deferred financing costs as of November 30, 2020 is $603. (b) Florida Mortgage On July 6, 2015, VOXX HQ LLC, the Company’s wholly owned subsidiary, closed on a $9,995 industrial development revenue tax exempt bond under a loan agreement in favor of the Orange County Industrial Development Authority (the “Authority”) to finance the construction of the Company's manufacturing facility and executive offices in Lake Nona, Florida. Wells Fargo Bank, N.A. ("Wells Fargo") was the purchaser of the bond and U.S. Bank National Association is the trustee under an Indenture of Trust with the Authority. Voxx borrowed the proceeds of the bond purchase from the Authority during construction as a revolving loan, which converted to a permanent mortgage upon completion of the facility in January 2016 (the "Florida Mortgage"). The Company makes principal and interest payments to Wells Fargo, which began March 1, 2016 and will continue through March of 2026. The Florida Mortgage bears interest at 70% of 1-month LIBOR plus 1.54% (1.69% at November 30, 2020) and is secured by a first mortgage on the property, a collateral assignment of leases and rents and a guaranty by the Company. The financial covenants of the Florida Mortgage are as defined in the Company’s Credit Facility with Wells Fargo dated April 26, 2016. The Company incurred debt financing costs totaling approximately $332 as a result of obtaining the Florida Mortgage, which are recorded as deferred financing costs and included in Long-term debt as a contra-liability balance on the accompanying Consolidated Balance Sheets and are being amortized through Interest and bank charges in the Unaudited Consolidated Statements of Operations and Comprehensive Income (Loss) over the ten-year On July 20, 2015, the Company entered into an interest rate swap agreement in order to hedge interest rate exposure related to the Florida Mortgage and pays a fixed rate of 3.48% under the swap agreement (See Note 5). (c) Euro Asset-Based Lending Obligation – VOXX Germany Foreign bank obligations include a Euro Asset-Based Lending ("ABL") credit facility, which has a credit limit of €8,000 for the Company's subsidiary, VOXX Germany, which expires on July 31, 2023. The rate of interest for the ABL is the three-month Euribor plus 2.30% (2.30% at November 30, 2020). As of November 30, 2020, there is no balance outstanding under this credit facility. (d) Euro Asset-Based Lending Obligation - Magnat At February 29, 2020, foreign bank obligations also included an ABL credit facility for the Company's subsidiary, Magnat. The rate of interest for the ABL was the three-month Euribor plus 2.10%. The facility expired on November 30, 2020 and was not renewed. |
Other (Expense) Income (Tables)
Other (Expense) Income (Tables) | 9 Months Ended |
Nov. 30, 2020 | |
Other Income And Expenses [Abstract] | |
Schedule of Other Nonoperating (Expense) Income | Other (expense) income is comprised of the following: Three months ended November 30, Nine months ended November 30, 2020 2019 2020 2019 Foreign currency gain (loss) $ 34 $ 61 $ (445 ) $ 297 Interest income 6 199 77 814 Rental income 188 176 556 460 Miscellaneous (349 ) (758 ) (167 ) 298 Total other, net $ (121 ) $ (322 ) $ 21 $ 1,869 |
Lease Obligations (Tables)
Lease Obligations (Tables) | 9 Months Ended |
Nov. 30, 2020 | |
Leases [Abstract] | |
Schedule of Components of Lease Cost | The components of lease cost for the three and nine months ended November 30, 2020 and 2019 were as follows: Three months ended November 30, Nine months ended November 30, 2020 2019 2020 2019 Operating lease cost (a) (c) $ 328 $ 209 $ 836 $ 668 Finance lease cost: Amortization of right of use assets (a) 139 167 465 516 Interest on lease liabilities (b) 6 12 23 36 Total finance lease cost $ 145 $ 179 $ 488 $ 552 (a) Recorded within Selling, General and administrative, Engineering and technical support, and Cost of sales on the Consolidated Statement of Operations and Comprehensive (Loss) Income. (b) Recorded within Interest and bank charges on the Consolidated Statement of Operations and Comprehensive Income (Loss). (c) Includes immaterial amounts related to variable rent expense. |
Schedule of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases is as follows: November 30, 2020 February 29, 2020 Operating Leases Operating lease, right of use assets $ 4,811 $ 3,143 Total operating lease right of use assets $ 4,811 $ 3,143 Accrued expenses and other current liabilities $ 1,111 $ 784 Operating lease liabilities, less current portion 3,813 2,391 Total operating lease liabilities $ 4,924 $ 3,175 Finance Leases Property, plant, and equipment, gross $ 2,503 $ 2,503 Accumulated depreciation (1,674 ) (1,209 ) Total finance lease right of use assets $ 829 $ 1,294 Accrued expenses and other current liabilities $ 469 $ 613 Finance lease liabilities, less current portion 386 720 Total finance lease liabilities $ 855 $ 1,333 Weighted Average Remaining Lease Term Operating leases 6.1 years 4.4 years Finance leases 2.1 years 3.9 years Weighted Average Discount Rate Operating leases 4.54 % 5.98 % Finance leases 3.87 % 3.87 % |
Schedule of Maturities of Leases Liabilities | Maturities of lease liabilities on November 30 of each of the succeeding years are as follows: Operating Leases Finance Leases 2021 $ 1,303 483 2022 1,119 274 2023 807 118 2024 632 — 2025 456 — Thereafter 1,228 — Total lease payments 5,545 875 Less imputed interest 621 20 Total $ 4,924 855 |
Capital Structure (Tables)
Capital Structure (Tables) | 9 Months Ended |
Nov. 30, 2020 | |
Equity [Abstract] | |
Schedule of Capital Units | The Company's capital structure is as follows: Shares Authorized Shares Outstanding Security Par Value November 30, 2020 February 29, 2020 November 30, 2020 February 29, 2020 Voting Rights per Share Liquidation Rights Preferred Stock $ 50.00 50,000 50,000 — — — $50 per share Series Preferred Stock $ 0.01 1,500,000 1,500,000 — — — — Class A Common Stock $ 0.01 60,000,000 60,000,000 21,666,976 21,556,976 1 Ratably with Class B Class B Common Stock $ 0.01 10,000,000 10,000,000 2,260,954 2,260,954 10 Ratably with Class A Treasury Stock at cost at cost 2,749,218 2,749,218 N/A N/A N/A |
Variable Interest Entity (Table
Variable Interest Entity (Tables) - Variable Interest Entity, Primary Beneficiary [Member] | 9 Months Ended |
Nov. 30, 2020 | |
Variable Interest Entity [Line Items] | |
Summary of Carrying Values of Assets and Liabilities Included in Consolidated Balance Sheets | The following table sets forth the carrying values of assets and liabilities of EyeLock LLC that were included on our Consolidated Balance Sheets as of November 30, 2020 and February 29, 2020: November 30, 2020 February 29, 2020 Assets (unaudited) Current assets: Cash and cash equivalents $ — $ — Accounts receivable, net 210 147 Inventory, net 2,212 2,052 Prepaid expenses and other current assets 253 313 Total current assets 2,675 2,512 Property, plant and equipment, net 27 69 Intangible assets, net 2,397 2,600 Other assets 60 76 Total assets $ 5,159 $ 5,257 Liabilities and Partners' Deficit Current liabilities: Accounts payable $ 1,427 $ 2,086 Interest payable to VOXX 11,077 9,994 Accrued expenses and other current liabilities 1,000 252 Due to VOXX 59,033 54,074 Total current liabilities 72,537 66,406 Other long-term liabilities 1,200 1,200 Total liabilities 73,737 67,606 Commitments and contingencies Partners' deficit: Capital 41,416 41,416 Retained losses (109,994 ) (103,765 ) Total partners' deficit (68,578 ) (62,349 ) Total liabilities and partners' deficit $ 5,159 $ 5,257 |
Summary of Revenues and Expenses Included in Consolidated Statements of Operations and Comprehensive Income (Loss) | The following table sets forth the revenues and expenses of EyeLock LLC that were included in our Unaudited Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and nine months ended November 30, 2020, respectively: For the three months ended November 30, For the nine months ended November 30, 2020 2019 2020 2019 Net sales $ 343 $ 138 $ 703 $ 412 Cost of sales 293 178 674 592 Gross profit 50 (40 ) 29 (180 ) Operating expenses: Selling 132 173 434 535 General and administrative 446 1,123 1,303 3,500 Engineering and technical support 1,178 1,232 3,427 3,951 Total operating expenses 1,756 2,528 5,164 7,986 Operating loss (1,706 ) (2,568 ) (5,135 ) (8,166 ) Other expense: Interest and bank charges (372 ) (324 ) (1,094 ) (939 ) Other, net — 79 — 79 Total other expense, net (372 ) (245 ) (1,094 ) (860 ) Loss before income taxes (2,078 ) (2,813 ) (6,229 ) (9,026 ) Income tax expense — — — — Net loss $ (2,078 ) $ (2,813 ) $ (6,229 ) $ (9,026 ) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Nov. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information by Segments | Segment data for each of the Company's segments is presented below: Automotive Electronics Consumer Electronics Biometrics Corporate/ Eliminations Total Three Months Ended November 30, 2020 Net sales $ 61,488 $ 139,039 $ 343 $ 195 $ 201,065 Equity in income of equity investees 1,761 — — — 1,761 Interest expense and bank charges 537 2,290 372 (2,728 ) 471 Depreciation and amortization expense 876 1,002 75 981 2,934 Income (loss) before income taxes 6,601 20,351 (2,078 ) (5,100 ) 19,774 Three Months Ended November 30, 2019 Net sales $ 29,985 $ 79,914 $ 138 $ 75 $ 110,112 Equity in income of equity investees 967 — — — 967 Interest expense and bank charges 137 2,560 324 (2,270 ) 751 Depreciation and amortization expense 187 1,093 783 1,038 3,101 Income (loss) before income taxes 92 9,583 (2,813 ) (2,775 ) 4,087 Nine Months Ended November 30, 2020 Net sales $ 111,397 $ 288,545 $ 703 $ 439 $ 401,084 Equity in income of equity investees 4,506 — — — 4,506 Interest expense and bank charges 1,058 6,584 1,094 (6,402 ) 2,334 Depreciation and amortization expense 2,050 2,921 247 3,006 8,224 Income (loss) before income taxes 3,730 33,087 (6,229 ) (8,974 ) 21,614 Nine Months Ended November 30, 2019 Net sales $ 86,472 $ 206,601 $ 398 $ 341 $ 293,812 Equity in income of equity investees 3,672 — — — 3,672 Interest expense and bank charges 354 7,427 939 (6,085 ) 2,635 Depreciation and amortization expense 567 3,356 2,352 2,954 9,229 Income (loss) before income taxes 869 8,976 (8,835 ) (7,989 ) (6,979 ) |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Nov. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Disaggregation of Revenue | In the following table, the Company's net sales are disaggregated by segment and product type for the three and nine months ended November 30, 2020 and 2019: Three months ended November 30, Nine months ended November 30, 2020 2019 2020 2019 Automotive Electronics Segment OEM Products $ 14,089 $ 10,628 $ 32,462 $ 37,391 Aftermarket Products 47,399 19,357 78,935 49,081 Total Automotive Segment 61,488 29,985 111,397 86,472 Consumer Electronics Segment Premium Audio Products 112,681 53,250 216,501 128,056 Other Consumer Electronic Products 26,358 26,664 72,044 78,545 Total Consumer Electronics Segment 139,039 79,914 288,545 206,601 Biometrics Segment Biometric Products 343 138 703 398 Total Biometrics Segment 343 138 703 398 Corporate/Eliminations 195 75 439 341 Total Net Sales $ 201,065 $ 110,112 $ 401,084 $ 293,812 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Details) | 9 Months Ended |
Nov. 30, 2020Segment | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of reportable segments | 3 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) - USD ($) $ in Thousands | Jul. 01, 2020 | Jan. 31, 2020 | Jan. 31, 2020 | Nov. 30, 2020 | Nov. 30, 2020 |
Business Acquisition [Line Items] | |||||
Increase in goodwill by cumulative net measurement period adjustment | $ 638 | ||||
Business combination, consideration transferred | $ 16,500 | ||||
Business combination, preliminary purchase price | $ 16,610 | 16,610 | |||
Business combination, contingent consideration, liability | 110 | $ 110 | |||
Business combination, acquisition completion period | 12 months | ||||
Maximum [Member] | |||||
Business Acquisition [Line Items] | |||||
Business combination, contingent consideration, liability payable | 750 | $ 750 | |||
Directed LLC and Directed Electronics Canada Inc [Member] | |||||
Business Acquisition [Line Items] | |||||
Cash purchase price | $ 11,000 | ||||
Increase in goodwill by cumulative net measurement period adjustment | 55 | $ 55 | $ 55 | ||
Business combination, preliminary purchase price | $ 11,000 | ||||
Directed LLC and Directed Electronics Canada Inc [Member] | VOXX DEI LLC and VOXX DEI Canada, Ltd. [Member] | |||||
Business Acquisition [Line Items] | |||||
Percentage of net sales from consolidated net sales | 11.80% | 7.10% | |||
VSHC [Member] | |||||
Business Acquisition [Line Items] | |||||
Increase in goodwill by cumulative net measurement period adjustment | 583 | $ 583 | $ 583 | ||
Business combination, preliminary purchase price | $ 16,610 | $ 16,610 | |||
VSHC [Member] | VSM-Rostra, LLC [Member] | |||||
Business Acquisition [Line Items] | |||||
Percentage of net sales from consolidated net sales | 3.20% | 4.30% |
Acquisitions - Summary of Alloc
Acquisitions - Summary of Allocation of Purchase Price for Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Jul. 01, 2020 | Jan. 31, 2020 | Nov. 30, 2020 | Nov. 30, 2020 | Feb. 29, 2020 |
Business Acquisition [Line Items] | |||||
Goodwill, measurement period adjustments | $ 638 | ||||
Goodwill | $ 58,928 | 58,928 | $ 55,000 | ||
Total purchase price | $ 16,610 | ||||
Directed LLC and Directed Electronics Canada Inc [Member] | |||||
Business Acquisition [Line Items] | |||||
Inventory | $ 7,054 | ||||
Accounts receivable | 5,173 | ||||
Other current assets | 160 | ||||
Property and equipment | 2,815 | ||||
Operating lease, right of use asset | 1,771 | ||||
Goodwill | 3,290 | ||||
Total assets acquired | 28,393 | ||||
Accounts payable | 8,144 | ||||
Accrued expenses | 1,406 | ||||
Contract liabilities | 4,872 | ||||
Warranty accrual | 1,200 | ||||
Operating lease liability | 1,771 | ||||
Total | 17,393 | ||||
Total purchase price | 11,000 | ||||
Accounts receivable, measurement period adjustments | 67 | ||||
Goodwill, measurement period adjustments | 55 | 55 | 55 | ||
Total assets acquired, measurement period adjustments | 22 | ||||
Accrued expenses, right of use asset, measurement period adjustments | 11 | ||||
Contract liabilities, measurement period adjustments | 11 | ||||
Liabilities assumed, measurement period adjustments | 22 | ||||
Inventory | 7,054 | ||||
Accounts receivable | 5,240 | ||||
Other current assets | 160 | ||||
Property and equipment | 2,815 | ||||
Operating lease, right of use asset | 1,771 | ||||
Goodwill | 3,345 | ||||
Total assets acquired | 28,415 | ||||
Accounts payable | 8,144 | ||||
Accrued expenses | 1,417 | ||||
Contract liabilities | 4,883 | ||||
Warranty accrual | 1,200 | ||||
Operating lease liability | 1,771 | ||||
Total | 17,415 | ||||
Total purchase price | 11,000 | ||||
Directed LLC and Directed Electronics Canada Inc [Member] | Trademarks [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets other than goodwill | 4,500 | ||||
Intangible assets other than goodwill | 4,500 | ||||
Directed LLC and Directed Electronics Canada Inc [Member] | Customer Relationships [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets other than goodwill | 2,600 | ||||
Intangible assets other than goodwill, measurement period adjustments | (100) | ||||
Intangible assets other than goodwill | 2,500 | ||||
Directed LLC and Directed Electronics Canada Inc [Member] | Patented Technology [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets other than goodwill | 1,030 | ||||
Intangible assets other than goodwill | $ 1,030 | ||||
VSHC [Member] | |||||
Business Acquisition [Line Items] | |||||
Inventory | 6,982 | ||||
Accounts receivable | 3,415 | ||||
Other current assets | 145 | ||||
Property and equipment | 714 | ||||
Operating lease, right of use asset | 483 | ||||
Goodwill | 215 | ||||
Other non-current assets | 3 | ||||
Total assets acquired | 18,257 | ||||
Accounts payable | 757 | ||||
Accrued expenses | 219 | ||||
Lease liabilities | 483 | ||||
Warranty accrual | 188 | ||||
Total | 1,647 | ||||
Total purchase price | 16,610 | ||||
Inventory, measurement period adjustments | (489) | ||||
Goodwill, measurement period adjustments | 583 | $ 583 | $ 583 | ||
Total assets acquired, measurement period adjustments | 94 | ||||
Accrued expenses, right of use asset, measurement period adjustments | 94 | ||||
Liabilities assumed, measurement period adjustments | 94 | ||||
Inventory | 6,493 | ||||
Accounts receivable | 3,415 | ||||
Other current assets | 145 | ||||
Property and equipment | 714 | ||||
Operating lease, right of use asset | 483 | ||||
Goodwill | 798 | ||||
Other non-current assets | 3 | ||||
Total assets acquired | 18,351 | ||||
Accounts payable | 757 | ||||
Accrued expenses | 313 | ||||
Lease liabilities | 483 | ||||
Warranty accrual | 188 | ||||
Total | 1,741 | ||||
Total purchase price | 16,610 | ||||
VSHC [Member] | Trademarks [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets other than goodwill | 560 | ||||
Intangible assets other than goodwill | 560 | ||||
VSHC [Member] | Customer Relationships [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets other than goodwill | 5,460 | ||||
Intangible assets other than goodwill | 5,460 | ||||
VSHC [Member] | Patented Technology [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets other than goodwill | 280 | ||||
Intangible assets other than goodwill | $ 280 |
Net Income (Loss) Per Common _3
Net Income (Loss) Per Common Share - Additional Information (Details) | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2020shares | Nov. 30, 2019shares | Nov. 30, 2020shares | Nov. 30, 2019shares | |
Net Income Per Common Share [Abstract] | ||||
Reconciling Items to basic and diluted EPS | 0 | |||
Antidilutive securities excluded from computation of earnings per share, amount | 0 | 43,374 | 17,009 | 672,531 |
Net Income (Loss) Per Common _4
Net Income (Loss) Per Common Share - Reconciliation Between Denominator of Basic and Diluted Net Income (Loss) Per Common Share (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Net Income Per Common Share [Abstract] | ||||
Weighted-average common shares outstanding (basic) | 24,197,786 | 24,418,313 | 24,196,393 | 24,458,926 |
Restricted stock and stock grants | 479,739 | 207,097 | 335,936 | 0 |
Weighted-average common shares and potential common shares outstanding (diluted) | 24,677,525 | 24,625,410 | 24,532,329 | 24,458,926 |
Investment Securities - Unreali
Investment Securities - Unrealized Gain (Loss) on Investments (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Feb. 29, 2020 |
Gain (Loss) on Securities [Line Items] | ||
Marketable Equity Securities | $ 1,827 | $ 2,282 |
Investments, Fair Value Disclosure | 1,827 | 2,282 |
Mutual Funds [Member] | ||
Gain (Loss) on Securities [Line Items] | ||
Marketable Equity Securities | $ 1,827 | $ 2,282 |
Investment Securities - Additio
Investment Securities - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2020 | Nov. 30, 2019 | Feb. 28, 2018 | |
RxNetworks [Member] | ||||
Gain (Loss) on Securities [Line Items] | ||||
Cost-method investments, realized gain (loss) | $ 42 | $ 42 | $ 775 | $ 1,416 |
Fair Value Measurements and D_3
Fair Value Measurements and Derivatives - Additional Information (Details) | 9 Months Ended | ||
Nov. 30, 2020USD ($) | Feb. 29, 2020USD ($) | Jul. 20, 2015 | |
Derivative Instruments Gain Loss [Line Items] | |||
Derivative, Fixed Interest Rate | 3.48% | ||
Gain (Loss) from Components Excluded from Assessment of Cash Flow Hedge Effectiveness | $ 0 | ||
Foreign currency contracts terminated | 0 | ||
Foreign Exchange Forward [Member] | |||
Derivative Instruments Gain Loss [Line Items] | |||
Notional Amount of Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | $ 13,160,000 | ||
Interest Rate Swap [Member] | |||
Derivative Instruments Gain Loss [Line Items] | |||
Notional Amount of Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | $ 7,239,000 | ||
Minimum [Member] | |||
Derivative Instruments Gain Loss [Line Items] | |||
Forward foreign currency contracts, range | 1 month | ||
Maximum [Member] | |||
Derivative Instruments Gain Loss [Line Items] | |||
Forward foreign currency contracts, range | 15 months | ||
Fair Value Measurements Recurring [Member] | Level 3 [Member] | |||
Derivative Instruments Gain Loss [Line Items] | |||
Asset measured at fair value | $ 0 | $ 0 | |
Liabilities measured at fair value | $ 0 | $ 0 |
Fair Value Measurements and D_4
Fair Value Measurements and Derivatives - Fair Value, Assets Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Feb. 29, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | $ 21,337 | $ 37,425 |
Foreign Currency Contract, Asset, Fair Value Disclosure | (1,026) | (476) |
Investments, Fair Value Disclosure | 1,827 | 2,282 |
Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 1,827 | 2,282 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 21,337 | 37,425 |
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | 0 |
Investments, Fair Value Disclosure | 1,827 | 2,282 |
Fair Value, Inputs, Level 1 [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 1,827 | 2,282 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Foreign Currency Contract, Asset, Fair Value Disclosure | (1,026) | (476) |
Investments, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | $ 0 | $ 0 |
Fair Value Measurements and D_5
Fair Value Measurements and Derivatives - Fair Value, by Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Feb. 29, 2020 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Prepaid expenses and other current assets | $ 17,880 | $ 10,885 |
Accrued expenses and other current liabilities | (55,695) | (34,046) |
Derivative Assets and Liabilities | (1,026) | (476) |
Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Prepaid expenses and other current assets | 236 | 0 |
Accrued expenses and other current liabilities | (710) | 0 |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other Liabilities | $ (552) | $ (476) |
Fair Value Measurements and D_6
Fair Value Measurements and Derivatives - Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) (Details) - Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Foreign Exchange Forward [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | $ (242) | $ 41 | $ (707) | $ 357 |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (121) | 134 | (69) | 362 |
Interest Rate Swap [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | 39 | 79 | (76) | (260) |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ 0 | $ 0 | $ 0 | $ 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Nov. 30, 2020 | Aug. 31, 2020 | May 31, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||||
Stockholders equity, beginning of period | $ 348,484 | $ 339,588 | $ 348,229 | $ 382,870 | $ 391,984 | $ 395,101 | $ 348,229 | $ 395,101 |
Other comprehensive income (loss) before reclassifications | 2,914 | |||||||
Reclassified from accumulated other comprehensive loss | 95 | |||||||
Other comprehensive income (loss), net of tax | 30 | 2,666 | 313 | (280) | (383) | (904) | 3,009 | (1,567) |
Stockholders equity, end of period | 366,530 | 348,484 | 339,588 | 383,017 | 382,870 | 391,984 | 366,530 | 383,017 |
Foreign Currency Translation Losses [Member] | ||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||||
Stockholders equity, beginning of period | (17,739) | (17,739) | ||||||
Other comprehensive income (loss) before reclassifications | 3,608 | |||||||
Reclassified from accumulated other comprehensive loss | 0 | |||||||
Other comprehensive income (loss), net of tax | 3,608 | |||||||
Stockholders equity, end of period | (14,131) | (14,131) | ||||||
Pension Plan Adjustments, Net of Tax [Member] | ||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||||
Stockholders equity, beginning of period | (887) | (887) | ||||||
Other comprehensive income (loss) before reclassifications | (85) | |||||||
Reclassified from accumulated other comprehensive loss | 0 | |||||||
Other comprehensive income (loss), net of tax | (85) | |||||||
Stockholders equity, end of period | (972) | (972) | ||||||
Derivatives Designated in a Hedging Relationship, Net of Tax [Member] | ||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||||
Stockholders equity, beginning of period | (429) | (429) | ||||||
Other comprehensive income (loss) before reclassifications | (609) | |||||||
Reclassified from accumulated other comprehensive loss | 95 | |||||||
Other comprehensive income (loss), net of tax | (514) | |||||||
Stockholders equity, end of period | (943) | (943) | ||||||
Accumulated Other Comprehensive Income (Loss) [Member] | ||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||||
Stockholders equity, beginning of period | (16,076) | (18,742) | (19,055) | (18,231) | (17,848) | (16,944) | (19,055) | (16,944) |
Other comprehensive income (loss), net of tax | 30 | 2,666 | 313 | (280) | (383) | (904) | ||
Stockholders equity, end of period | $ (16,046) | $ (16,076) | $ (18,742) | $ (18,511) | $ (18,231) | $ (17,848) | $ (16,046) | $ (18,511) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Nov. 30, 2020 | Nov. 30, 2020 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, Tax | $ 38 | $ 200 |
Other Comprehensive Income (Loss), Defined Benefit Plan, after Reclassification Adjustment, Tax | $ 0 | 0 |
Other comprehensive income (loss) before reclassifications | 2,914 | |
Foreign Currency Translation Losses [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Other comprehensive income (loss) before reclassifications | 3,608 | |
Foreign Currency Translation Losses [Member] | Intercompany Transactions Of Long Term Investment Nature [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Other comprehensive income (loss) before reclassifications | (983) | |
Foreign Currency Translation Losses [Member] | Translating Financial Statements [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Other comprehensive income (loss) before reclassifications | $ 4,591 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Schedule of Cash Flow, Supplemental Disclosures (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Aug. 31, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Other Significant Noncash Transactions [Line Items] | |||
Issuance of redeemable equity | $ 1,379 | ||
Reclassification of stockholders' equity to redeemable equity | $ (745) | $ 478 | 745 |
Increase in goodwill due to measurement period adjustments, net | 638 | ||
Settlement of debt with receivables | 607 | ||
Right of use assets obtained in exchange for operating lease obligations | 735 | 1,214 | |
Right of use assets obtained in exchange for finance lease obligations | 1,024 | ||
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | 836 | 668 | |
Operating cash flows from finance leases | 23 | 36 | |
Finance cash flows from finance leases | 470 | 477 | |
Non-cash investing activities: | |||
Interest (excluding bank charges) | 831 | 726 | |
Income taxes (net of refunds) | $ 1,139 | 565 | |
Adoption of ASC 842 [Member] | |||
Other Significant Noncash Transactions [Line Items] | |||
Right of use assets obtained in exchange for operating lease obligations | $ 2,227 |
Accounting for Stock-Based Co_3
Accounting for Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Jul. 08, 2019 | Oct. 31, 2020 | Jul. 31, 2020 | Nov. 30, 2020 | Nov. 30, 2020 | Nov. 30, 2019 | Feb. 28, 2015 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Stock based compensation expense | $ 1,454 | $ 1,816 | |||||
Patrick M. Lavelle [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Annual salary and cash bonus | $ 1,000 | ||||||
Stock based compensation expense | $ 60 | $ 182 | |||||
Grant of market stock units maximum amount | $ 5,000 | ||||||
Maximum average stock price of grant market stock units | $ 5.49 | ||||||
Maximum increase amount of market stock units award | $ 5,000 | ||||||
Maximum threshold share price increases in value of award | $ 15 | ||||||
Estimated Maximum threshold share increases in value of award | 333,333 | ||||||
Patrick M. Lavelle [Member] | Common Class A [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 4.15 | $ 4.15 | |||||
Award vesting period | 5 years | ||||||
Stock based compensation expense | $ 102 | $ 308 | |||||
Patrick M. Lavelle [Member] | Common Class A [Member] | March 1, 2021 [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Additional grant of shares under employment agreement | 100,000 | ||||||
Patrick M. Lavelle [Member] | Common Class A [Member] | March 1, 2020 [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Additional grant of shares under employment agreement | 100,000 | ||||||
Patrick M. Lavelle [Member] | Common Class A [Member] | March 1, 2022 [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Additional grant of shares under employment agreement | 100,000 | ||||||
Restricted Stock [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Allocated Share-based Compensation Expense | 768 | 1,454 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 1,760 | $ 1,760 | |||||
2014 Plan [Member] | Restricted Stock Units [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 3 years | ||||||
Share-based payment award vesting age of employee | 65 years | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 7.18 | ||||||
Vested and unsettled awards | 105,123 | 99,697 | |||||
Vested and unsettled awards, weighted average fair value | $ 7.21 | ||||||
Amount of vested and settled awards in cash | $ 575 | ||||||
2014 Plan [Member] | Restricted Stock Units [Member] | Employees [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 48,269 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 5.76 | ||||||
2014 Plan [Member] | Restricted Stock Units [Member] | Non-Employee Directors [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 40,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 8.89 | ||||||
2014 Plan [Member] | Restricted Stock Units [Member] | Minimum [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Share-based payment award vesting required service period | 10 years | ||||||
2014 Plan [Member] | Unsettled RSU Awards [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Vested and unsettled awards | 278,318 | ||||||
Vested and unsettled awards, weighted average fair value | $ 7.71 | ||||||
2012 Equity Incentive Plan [Member] | Patrick M. Lavelle [Member] | Common Class A [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Grant of initial shares under employment agreement | 200,000 |
Accounting for Stock-Based Co_4
Accounting for Stock-Based Compensation - Summary of Activity Related to Initial Stock Grant Additional Stock Grants under Employment Agreement and RSU Grants under 2014 Plan (Details) - 2014 Plan [Member] - Restricted Stock Units [Member] - $ / shares | 1 Months Ended | 9 Months Ended |
Jul. 31, 2020 | Nov. 30, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 715,152 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 88,269 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 105,123 | 99,697 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested and Settled in Period | 100,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 603,724 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 5.07 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 7.18 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | 7.21 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested and Settled Period, Weighted Average Grant Date Fair Value | 4.15 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 5.18 |
Supply Chain Financing - Additi
Supply Chain Financing - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Supply Chain Financing [Abstract] | ||||
Proceeds from Sale and Collection of Receivables | $ 20,876 | $ 14,062 | $ 60,039 | $ 50,897 |
Research and Development - Addi
Research and Development - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Research And Development [Abstract] | ||||
Research and Development Expense | $ 1,892 | $ 1,672 | $ 5,413 | $ 5,434 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Goodwill (Details) $ in Thousands | 9 Months Ended |
Nov. 30, 2020USD ($) | |
Goodwill [Line Items] | |
Goodwill | $ 55,000 |
Goodwill | 58,928 |
Automotive Electronics [Member] | |
Goodwill [Line Items] | |
Goodwill | 8,467 |
Goodwill, Acquired During Period | 3,928 |
Goodwill | 12,395 |
Goodwill, Gross | 12,395 |
Goodwill, Impaired, Accumulated Impairment Loss | 0 |
Consumer Electronics [Member] | |
Goodwill [Line Items] | |
Goodwill | 46,533 |
Goodwill, Acquired During Period | 0 |
Goodwill | 46,533 |
Goodwill, Gross | 78,696 |
Goodwill, Impaired, Accumulated Impairment Loss | $ (32,163) |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | Feb. 29, 2020 | |
Goodwill and Intangible Assets [Line Items] | |||||
Goodwill | $ 58,928,000 | $ 58,928,000 | $ 55,000,000 | ||
Amortization of Intangible Assets | 1,477,000 | $ 1,748,000 | 3,973,000 | $ 5,243,000 | |
Biometrics [Member] | |||||
Goodwill and Intangible Assets [Line Items] | |||||
Goodwill | $ 0 | $ 0 | $ 0 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Intangible Assets, Excluding Goodwill (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Feb. 29, 2020 |
Goodwill and Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 83,978 | $ 75,287 |
Finite-Lived Intangible Assets, Accumulated Amortization | 55,786 | 51,208 |
Finite-Lived Intangible Assets, Net | 28,192 | 24,079 |
Intangible assets, net | 92,797 | 88,288 |
Trademarks [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) | 64,605 | 64,209 |
Customer Relationships [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 54,604 | 51,491 |
Finite-Lived Intangible Assets, Accumulated Amortization | 35,312 | 31,880 |
Finite-Lived Intangible Assets, Net | 19,292 | 19,611 |
Trademarks and Tradenames [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 5,545 | 1,045 |
Finite-Lived Intangible Assets, Accumulated Amortization | 681 | 437 |
Finite-Lived Intangible Assets, Net | 4,864 | 608 |
Patented Technology [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 14,144 | 14,144 |
Finite-Lived Intangible Assets, Accumulated Amortization | 12,448 | 12,244 |
Finite-Lived Intangible Assets, Net | 1,696 | 1,900 |
Patents [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 6,729 | 5,651 |
Finite-Lived Intangible Assets, Accumulated Amortization | 4,389 | 3,691 |
Finite-Lived Intangible Assets, Net | 2,340 | 1,960 |
Licensing Agreements [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 1,400 | 1,400 |
Finite-Lived Intangible Assets, Accumulated Amortization | 1,400 | 1,400 |
Finite-Lived Intangible Assets, Net | 0 | 0 |
Contractual Rights [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 1,556 | 1,556 |
Finite-Lived Intangible Assets, Accumulated Amortization | 1,556 | 1,556 |
Finite-Lived Intangible Assets, Net | $ 0 | $ 0 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) $ in Thousands | Nov. 30, 2020USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2021 | $ 5,741 |
2022 | 4,933 |
2023 | 4,336 |
2024 | 4,115 |
2025 | $ 3,991 |
Equity Investment - Additional
Equity Investment - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | Feb. 29, 2020 | |
Schedule of Equity Method Investments [Line Items] | |||||
Income (Loss) from Equity Method Investments | $ 1,761 | $ 967 | $ 4,506 | $ 3,672 | |
ASA Electronics, LLC [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | 50.00% |
Equity Investment - Equity Meth
Equity Investment - Equity Method Investment, Summarized Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||
Nov. 30, 2020 | Aug. 31, 2020 | May 31, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | Feb. 29, 2020 | Feb. 28, 2019 | |
Schedule of Equity Method Investments [Line Items] | ||||||||||
Equity Method Investment, Summarized Financial Information, Current Assets | $ 333,851 | $ 333,851 | $ 217,820 | |||||||
Equity Method Investment, Summarized Financial Information, Current Liabilities | 170,817 | 170,817 | 71,022 | |||||||
Equity Method Investment Summarized Financial Information, Equity | 366,530 | $ 348,484 | $ 339,588 | $ 383,017 | $ 382,870 | $ 391,984 | 366,530 | $ 383,017 | 348,229 | $ 395,101 |
Equity Method Investment, Summarized Financial Information, Gross Profit (Loss) | 58,128 | 31,464 | 116,179 | 81,242 | ||||||
Equity Method Investment, Summarized Financial Information, Net Income (Loss) | 17,440 | $ 6,555 | $ (9,105) | $ 1,367 | $ (7,164) | $ (2,372) | 14,890 | (8,169) | ||
ASA Electronics, LLC [Member] | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Equity Method Investment, Summarized Financial Information, Current Assets | 49,755 | 49,755 | 47,738 | |||||||
Equity Method Investment, Summarized Financial Information, Noncurrent Assets | 4,755 | 4,755 | 5,453 | |||||||
Equity Method Investment, Summarized Financial Information, Current Liabilities | 10,146 | 10,146 | 9,343 | |||||||
Equity Method Investment Summarized Financial Information, Equity | $ 44,364 | 44,364 | $ 43,848 | |||||||
Equity Method Investment, Summarized Financial Information, Revenue | 67,940 | 75,962 | ||||||||
Equity Method Investment, Summarized Financial Information, Gross Profit (Loss) | 21,514 | 23,345 | ||||||||
Equity Method Investment, Summarized Financial Information, Income (Loss) from Continuing Operations | 8,761 | 7,083 | ||||||||
Equity Method Investment, Summarized Financial Information, Net Income (Loss) | $ 9,012 | $ 7,344 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | Feb. 29, 2020 | |
Income Tax Disclosure [Abstract] | |||||
Net operating loss carried back period | 2 years | ||||
Net operating loss carried forward period | 20 years | ||||
Net operating loss, income tax provision | $ 4,275 | ||||
Income tax provision (benefit) | $ 2,334 | $ 2,720 | 6,724 | $ 1,190 | |
Unrecognized tax benefits, period increase (decrease) | 542 | $ 1,035 | 3,609 | 345 | |
Unrecognized tax benefits, period increase (decrease) excluding U.S. tax jurisdiction from estimated annual effective tax rate | 1,153 | 50 | |||
Unrecognized tax benefits, period increase (decrease) due to reversal of uncertain tax provision liabilities resulting from lapse of applicable statute of limitations | $ 118 | $ 697 | $ 295 | ||
Effective income tax rate, continuing operations | 11.80% | 66.60% | 31.10% | 17.10% | |
Income (loss) from continuing operations before income taxes, noncontrolling interest | $ 19,774 | $ 4,087 | $ 21,614 | $ (6,979) | |
Effective income tax rate reconciliation, at federal statutory income tax rate, percent | 21.00% | 21.00% | 21.00% | 21.00% | |
Unrecognized tax benefit, interest expense | $ 31 | ||||
Liability for uncertainty in income taxes, noncurrent | $ 1,123 | $ 1,123 | $ 1,225 |
Inventory - Schedule of Invento
Inventory - Schedule of Inventory, Current (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Feb. 29, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 25,124 | $ 29,115 |
Work in process | 2,080 | 2,366 |
Finished goods | 111,403 | 67,629 |
Inventory | $ 138,607 | $ 99,110 |
Product Warranties and Produc_3
Product Warranties and Product Repair Costs - Schedule of Product Warranty Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Payables And Accruals Warranties [Abstract] | ||||
Opening balance | $ 5,520 | $ 4,062 | $ 4,748 | $ 4,469 |
Liabilities for warranties accrued during the period | 864 | 1,445 | 2,339 | 3,879 |
Liabilities acquired during acquisition | 0 | 0 | 1,200 | 0 |
Warranty claims settled during the period | (884) | (1,076) | (2,787) | (3,917) |
Ending balance | $ 5,500 | $ 4,431 | $ 5,500 | $ 4,431 |
Accrued Restructuring Expense -
Accrued Restructuring Expense - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2020 | Feb. 29, 2020 | |
Restructuring And Related Activities [Abstract] | |||
Restructuring liability, included accrued expenses and other current liabilities | $ 105,000 | $ 105,000 | $ 637,000 |
Additional accruals settled | 63,000 | 532,000 | |
Restructuring expenses | $ 0 | $ 0 |
Financing Arrangements - Schedu
Financing Arrangements - Schedule of Debt (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Feb. 29, 2020 | |
Debt, Long-term and Short-term, Combined Amount | $ 7,239 | $ 8,221 | |
Current portion of long-term debt | 500 | 1,107 | |
Long-term debt | 6,739 | 7,114 | |
Less: debt issuance costs | 766 | 1,015 | |
Total long-term debt, net of debt issuance costs | 5,973 | 6,099 | |
Mortgages [Member] | |||
Debt, Long-term and Short-term, Combined Amount | [1] | 7,239 | 7,614 |
Less: debt issuance costs | $ 163 | ||
Magnat [Member] | Foreign Line of Credit [Member] | |||
Debt, Long-term and Short-term, Combined Amount | [2] | $ 607 | |
[1] | Florida Mortgage On July 6, 2015, VOXX HQ LLC, the Company’s wholly owned subsidiary, closed on a $9,995 industrial development revenue tax exempt bond under a loan agreement in favor of the Orange County Industrial Development Authority (the “Authority”) to finance the construction of the Company's manufacturing facility and executive offices in Lake Nona, Florida. Wells Fargo Bank, N.A. ("Wells Fargo") was the purchaser of the bond and U.S. Bank National Association is the trustee under an Indenture of Trust with the Authority. Voxx borrowed the proceeds of the bond purchase from the Authority during construction as a revolving loan, which converted to a permanent mortgage upon completion of the facility in January 2016 (the "Florida Mortgage"). The Company makes principal and interest payments to Wells Fargo, which began March 1, 2016 and will continue through March of 2026. The Florida Mortgage bears interest at 70% of 1-month LIBOR plus 1.54% (1.69% at November 30, 2020) and is secured by a first mortgage on the property, a collateral assignment of leases and rents and a guaranty by the Company. The financial covenants of the Florida Mortgage are as defined in the Company’s Credit Facility with Wells Fargo dated April 26, 2016. The Company incurred debt financing costs totaling approximately $332 as a result of obtaining the Florida Mortgage, which are recorded as deferred financing costs and included in Long-term debt as a contra-liability balance on the accompanying Consolidated Balance Sheets and are being amortized through Interest and bank charges in the Unaudited Consolidated Statements of Operations and Comprehensive Income (Loss) over the ten-year On July 20, 2015, the Company entered into an interest rate swap agreement in order to hedge interest rate exposure related to the Florida Mortgage and pays a fixed rate of 3.48% under the swap agreement (See Note 5). | ||
[2] | Euro Asset-Based Lending Obligation - Magnat At February 29, 2020, foreign bank obligations also included an ABL credit facility for the Company's subsidiary, Magnat. The rate of interest for the ABL was the three-month Euribor plus 2.10%. The facility expired on November 30, 2020 and was not renewed. |
Financing Arrangements - Sche_2
Financing Arrangements - Schedule of Debt (Parenthetical) (Details) € in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||
Nov. 30, 2020USD ($)Rate | Jun. 30, 2020USD ($) | Apr. 30, 2020USD ($) | Nov. 30, 2020USD ($)Rate | Nov. 30, 2019USD ($) | Nov. 30, 2020USD ($)Rate | Nov. 30, 2019USD ($) | Nov. 30, 2020EUR (€)Rate | Feb. 29, 2020USD ($) | Jul. 20, 2015 | Jul. 06, 2015USD ($) | Oct. 23, 2000EUR (€) | |
Line of credit facility, remaining borrowing capacity | $ 107,033,000 | $ 107,033,000 | $ 107,033,000 | |||||||||
Percentage of maximum revolver amount | 20.00% | |||||||||||
Debt instrument compliance description | Company is in a Compliance Period (the period commencing on that day in which Excess Availability is less than 20% of the Maximum Revolver Amount and ending on a day in which Excess Availability is equal to or greater than 20% for any consecutive 30-day period thereafter) | |||||||||||
Line of credit facility, commitment fee amount | 130,000 | $ 125,000 | $ 371,000 | $ 378,000 | ||||||||
Line of credit facility, additional financing fees | $ 260,000 | |||||||||||
Amortization of debt issuance costs | 106,000 | 198,000 | 432,000 | 593,000 | ||||||||
Debt issuance costs, net | 766,000 | 766,000 | $ 766,000 | $ 1,015,000 | ||||||||
Industrial revenue bond | $ 9,995,000 | |||||||||||
Mortgage bears interest rate | 0.70% | |||||||||||
Debt issuance costs, gross | $ 332,000 | $ 332,000 | $ 332,000 | |||||||||
Derivative, Fixed Interest Rate | 3.48% | |||||||||||
Mortgages [Member] | ||||||||||||
Debt instrument, basis spread on variable rate | Rate | 1.54% | |||||||||||
Debt instrument, interest rate at period end | Rate | 1.69% | 1.69% | 1.69% | 1.69% | ||||||||
Amortization of debt issuance costs | $ 8,000 | $ 8,000 | $ 23,000 | $ 23,000 | ||||||||
Debt issuance costs, net | $ 163,000 | $ 163,000 | $ 163,000 | |||||||||
Debt instrument, term | 10 years | |||||||||||
June 2020 Amendment to Credit Facility [Member] | ||||||||||||
Amortization of debt issuance costs | $ 53,000 | |||||||||||
London Interbank Offered Rate (LIBOR) [Member] | ||||||||||||
Debt instrument, interest rate at period end | 3.00% | 3.00% | 3.00% | 3.00% | ||||||||
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||||||||||||
Debt instrument, basis spread on variable rate | 2.00% | |||||||||||
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||||||||||||
Debt instrument, basis spread on variable rate | 2.50% | |||||||||||
Base Rate [Member] | ||||||||||||
Debt instrument, interest rate at period end | 4.50% | 4.50% | 4.50% | 4.50% | ||||||||
Base Rate [Member] | Minimum [Member] | ||||||||||||
Debt instrument, basis spread on variable rate | 1.00% | |||||||||||
Base Rate [Member] | Maximum [Member] | ||||||||||||
Debt instrument, basis spread on variable rate | 1.50% | |||||||||||
Debt instrument interest rate during period | 2.00% | |||||||||||
Loans [Member] | ||||||||||||
Line of credit facility, maximum borrowing capacity | $ 15,000,000 | $ 15,000,000 | $ 15,000,000 | |||||||||
Revolving Credit Facility [Member] | ||||||||||||
Line of credit facility, current borrowing capacity | 127,500,000 | 127,500,000 | 127,500,000 | |||||||||
Line of credit facility, repaid | 20,000,000 | |||||||||||
Line of credit facility, maturity date | Apr. 26, 2022 | |||||||||||
Revolving Credit Facility [Member] | COVID-19 [Member] | ||||||||||||
Line of credit facility, borrowed | $ 20,000,000 | |||||||||||
Letter of Credit [Member] | ||||||||||||
Line of credit facility, maximum borrowing capacity | 30,000,000 | 30,000,000 | 30,000,000 | |||||||||
Line of Credit [Member] | ||||||||||||
Debt issuance costs, net | $ 603,000 | $ 603,000 | $ 603,000 | |||||||||
Foreign Line of Credit [Member] | Audiovox Germany [Member] | ||||||||||||
Line of credit facility, maximum borrowing capacity | € | € 8,000 | |||||||||||
Debt instrument, basis spread on variable rate | Rate | 2.30% | |||||||||||
Debt instrument, interest rate at period end | Rate | 2.30% | 2.30% | 2.30% | 2.30% | ||||||||
Line of credit facility, maturity date | Jul. 31, 2023 | |||||||||||
Line of credit facility, outstanding balance | € | € 0 | |||||||||||
Foreign Line of Credit [Member] | Magnat [Member] | ||||||||||||
Debt instrument, basis spread on variable rate | Rate | 2.10% | |||||||||||
Line of credit facility, maturity date | Nov. 30, 2020 |
Other (Expense) Income - Schedu
Other (Expense) Income - Schedule of Other Nonoperating (Expense) Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Other Income And Expenses [Abstract] | ||||
Foreign currency gain (loss) | $ 34 | $ 61 | $ (445) | $ 297 |
Interest income | 6 | 199 | 77 | 814 |
Rental income | 188 | 176 | 556 | 460 |
Miscellaneous | (349) | (758) | (167) | 298 |
Total other, net | $ (121) | $ (322) | $ 21 | $ 1,869 |
Other (Expense) Income - Additi
Other (Expense) Income - Additional Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Payment in settlement of final working capital calculation | $ 804 | |
Klipsch Group Inc [Member] | ||
Proceeds from key man life insurance policy | $ 1,000 |
Foreign Currency - Additional I
Foreign Currency - Additional Information (Details) | 9 Months Ended | |
Nov. 30, 2020USD ($) | Nov. 30, 2019 | |
Foreign Currency [Line Items] | ||
Cumulative inflation period | 3 years | |
Impairment of long-lived assets held-for-use | $ 0 | |
Minimum [Member] | ||
Foreign Currency [Line Items] | ||
Cumulative inflation rate | 100.00% | |
Venezuelan Bolívar Soberano | ||
Foreign Currency [Line Items] | ||
Foreign currency exchange rate, translation | 1,033,000 | 38,109 |
Lease Obligations - Additional
Lease Obligations - Additional Information (Details) € in Thousands | Sep. 30, 2019USD ($) | Sep. 30, 2019EUR (€) | Nov. 30, 2020USD ($) | Nov. 30, 2019USD ($) | Nov. 30, 2020USD ($) | Nov. 30, 2019USD ($) |
Leases [Line Items] | ||||||
Short term leases | $ 0 | $ 0 | ||||
Gain related to execution of sale transaction | $ 4,057,000 | $ 4,057,000 | ||||
Other Income (Expense) [Member] | ||||||
Leases [Line Items] | ||||||
Rental income | $ 188,000 | 176,000 | $ 556,000 | 460,000 | ||
Selling Real Property in Pulheim, Germany to CLM S.A. RL [Member] | ||||||
Leases [Line Items] | ||||||
Sale leaseback transaction, selling price | € | € 10,920 | |||||
Net proceeds from sale leaseback transaction | $ 9,500,000 | |||||
Gain related to execution of sale transaction | $ 4,057,000 | $ 4,057,000 | ||||
Minimum [Member] | ||||||
Leases [Line Items] | ||||||
Operating and finance leases remaining lease terms | 1 year | |||||
Maximum [Member] | ||||||
Leases [Line Items] | ||||||
Operating and finance leases remaining lease terms | 10 years |
Lease Obligations - Schedule of
Lease Obligations - Schedule of Components of Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | ||
Leases [Abstract] | |||||
Operating lease cost | [1],[2] | $ 328 | $ 209 | $ 836 | $ 668 |
Finance lease cost: | |||||
Amortization of right of use assets | [2] | 139 | 167 | 465 | 516 |
Interest on lease liabilities | [3] | 6 | 12 | 23 | 36 |
Total finance lease cost | $ 145 | $ 179 | $ 488 | $ 552 | |
[1] | Includes immaterial amounts related to variable rent expense. | ||||
[2] | Recorded within Selling, General and administrative, Engineering and technical support, and Cost of sales on the Consolidated Statement of Operations and Comprehensive (Loss) Income. | ||||
[3] | Recorded within Interest and bank charges on the Consolidated Statement of Operations and Comprehensive Income (Loss). |
Lease Obligations - Schedule _2
Lease Obligations - Schedule of Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Feb. 29, 2020 |
Operating Leases | ||
Operating lease, right of use assets | $ 4,811 | $ 3,143 |
Total operating lease right of use assets | 4,811 | 3,143 |
Accrued expenses and other current liabilities | 1,111 | 784 |
Operating lease liabilities, less current portion | 3,813 | 2,391 |
Total operating lease liabilities | 4,924 | 3,175 |
Finance Leases | ||
Property, plant, and equipment, gross | 2,503 | 2,503 |
Accumulated depreciation | (1,674) | (1,209) |
Total finance lease right of use assets | 829 | 1,294 |
Accrued expenses and other current liabilities | 469 | 613 |
Finance lease liabilities, less current portion | 386 | 720 |
Total finance lease liabilities | $ 855 | $ 1,333 |
Weighted Average Remaining Lease Term | ||
Operating leases | 6 years 1 month 6 days | 4 years 4 months 24 days |
Finance leases | 2 years 1 month 6 days | 3 years 10 months 24 days |
Weighted Average Discount Rate | ||
Operating leases | 4.54% | 5.98% |
Finance leases | 3.87% | 3.87% |
Lease Obligations - Schedule _3
Lease Obligations - Schedule of Maturities of Leases Liabilities (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Feb. 29, 2020 |
Operating Leases | ||
2021 | $ 1,303 | |
2022 | 1,119 | |
2023 | 807 | |
2024 | 632 | |
2025 | 456 | |
Thereafter | 1,228 | |
Total lease payments | 5,545 | |
Less imputed interest | 621 | |
Total | 4,924 | $ 3,175 |
Finance Leases | ||
2021 | 483 | |
2022 | 274 | |
2023 | 118 | |
Total lease payments | 875 | |
Less imputed interest | 20 | |
Total | $ 855 | $ 1,333 |
Capital Structure - Schedule of
Capital Structure - Schedule of Capital Units (Details) - $ / shares | 9 Months Ended | |
Nov. 30, 2020 | Feb. 29, 2020 | |
Capital Unit [Line Items] | ||
Treasury stock, shares | 2,749,218 | 2,749,218 |
Preferred stock, shares outstanding | 0 | 0 |
Preferred Stock [Member] | ||
Capital Unit [Line Items] | ||
Preferred Stock, Par or Stated Value Per Share | $ 50 | |
Preferred Stock, Shares Authorized | 50,000 | 50,000 |
Preferred stock, shares outstanding | 0 | 0 |
Preferred Stock, Voting Rights | 0 | |
Preferred Stock, Liquidation Preference Per Share | $ 50 | |
Series A Preferred Stock [Member] | ||
Capital Unit [Line Items] | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | |
Preferred Stock, Shares Authorized | 1,500,000 | 1,500,000 |
Preferred stock, shares outstanding | 0 | 0 |
Preferred Stock, Voting Rights | 0 | |
Common Class A [Member] | ||
Capital Unit [Line Items] | ||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 60,000,000 | 60,000,000 |
Common Stock, Shares, Outstanding | 21,666,976 | 21,556,976 |
Common Stock, Voting Rights | 1 | |
Common Class B [Member] | ||
Capital Unit [Line Items] | ||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Common Stock, Shares, Outstanding | 2,260,954 | 2,260,954 |
Common Stock, Voting Rights | 10 |
Variable Interest Entity - Addi
Variable Interest Entity - Additional Information (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Nov. 30, 2020 | Feb. 28, 2019 | Feb. 29, 2020 | |
Variable Interest Entity [Line Items] | |||
Notes, Loans and Financing Receivable, Net, Noncurrent | 1.50 | ||
Long-term debt, net of debt issuance costs | $ 5,973,000 | $ 6,099,000 | |
Variable Interest Entity, Primary Beneficiary [Member] | |||
Variable Interest Entity [Line Items] | |||
Debt Instrument, Interest Rate During Period | 2.50% | 10.00% | |
Line of credit facility, maximum borrowing capacity | $ 60,600,000 | ||
Long-term debt, net of debt issuance costs | $ 59,033,000 |
Variable Interest Entity - Summ
Variable Interest Entity - Summary of Carrying Values of Assets and Liabilities Included in Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Feb. 29, 2020 |
Variable Interest Entity [Line Items] | ||
Cash and cash equivalents | $ 21,337 | $ 37,425 |
Accounts receivable, net | 155,322 | 69,714 |
Prepaid expenses and other current assets | 17,880 | 10,885 |
Total current assets | 333,851 | 217,820 |
Property, plant and equipment, net | 52,124 | 51,424 |
Intangible assets, net | 92,797 | 88,288 |
Other assets | 1,413 | 1,638 |
Total assets | 567,989 | 441,571 |
Current portion of long-term debt | 500 | 1,107 |
Total current liabilities | 170,817 | 71,022 |
Other long-term liabilities | 5,570 | 3,294 |
Total liabilities | 198,500 | 90,861 |
Commitments and contingencies | 0 | 0 |
Retained earnings | 139,458 | 122,139 |
Total liabilities, redeemable equity, and stockholders' equity | 567,989 | 441,571 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Accounts receivable, net | 210 | 147 |
Inventory, net | 2,212 | 2,052 |
Prepaid expenses and other current assets | 253 | 313 |
Total current assets | 2,675 | 2,512 |
Property, plant and equipment, net | 27 | 69 |
Intangible assets, net | 2,397 | 2,600 |
Other assets | 60 | 76 |
Total assets | 5,159 | 5,257 |
Accounts payable | 1,427 | 2,086 |
Interest payable to VOXX | 11,077 | 9,994 |
Accrued expenses and other current liabilities | 1,000 | 252 |
Current portion of long-term debt | 59,033 | 54,074 |
Total current liabilities | 72,537 | 66,406 |
Other long-term liabilities | 1,200 | 1,200 |
Total liabilities | 73,737 | 67,606 |
Commitments and contingencies | ||
Capital | 41,416 | 41,416 |
Retained earnings | (109,994) | (103,765) |
Total partners' deficit | (68,578) | (62,349) |
Total liabilities, redeemable equity, and stockholders' equity | $ 5,159 | $ 5,257 |
Variable Interest Entity - Su_2
Variable Interest Entity - Summary of Revenues and Expenses Included in Consolidated Statements of Operations and Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Nov. 30, 2020 | Aug. 31, 2020 | May 31, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Variable Interest Entity [Line Items] | ||||||||
Net sales | $ 201,065 | $ 110,112 | $ 401,084 | $ 293,812 | ||||
Cost of sales | 142,937 | 78,648 | 284,905 | 212,570 | ||||
Gross profit | 58,128 | 31,464 | 116,179 | 81,242 | ||||
Selling | 12,761 | 9,580 | 30,190 | 28,162 | ||||
General and administrative | 21,128 | 16,689 | 51,668 | 51,896 | ||||
Engineering and technical support | 5,676 | 5,059 | 14,942 | 15,901 | ||||
Total operating expenses | 39,565 | 31,328 | 96,800 | 95,959 | ||||
Operating income (loss) | 18,563 | 136 | 19,379 | (14,717) | ||||
Interest and bank charges | (471) | (751) | (2,334) | (2,635) | ||||
Other, net | (121) | (322) | 21 | 1,869 | ||||
Total other income, net | 1,211 | 3,951 | 2,235 | 7,738 | ||||
Income (loss) before income taxes | 19,774 | 4,087 | 21,614 | (6,979) | ||||
Income tax expense | 2,334 | 2,720 | 6,724 | 1,190 | ||||
Net income (loss) | 17,440 | $ 6,555 | $ (9,105) | 1,367 | $ (7,164) | $ (2,372) | 14,890 | (8,169) |
Variable Interest Entity, Primary Beneficiary [Member] | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Net sales | 343 | 138 | 703 | 412 | ||||
Cost of sales | 293 | 178 | 674 | 592 | ||||
Gross profit | 50 | (40) | 29 | (180) | ||||
Selling | 132 | 173 | 434 | 535 | ||||
General and administrative | 446 | 1,123 | 1,303 | 3,500 | ||||
Engineering and technical support | 1,178 | 1,232 | 3,427 | 3,951 | ||||
Total operating expenses | 1,756 | 2,528 | 5,164 | 7,986 | ||||
Operating income (loss) | (1,706) | (2,568) | (5,135) | (8,166) | ||||
Interest and bank charges | (372) | (324) | (1,094) | (939) | ||||
Other, net | 79 | 79 | ||||||
Total other income, net | (372) | (245) | (1,094) | (860) | ||||
Income (loss) before income taxes | (2,078) | (2,813) | (6,229) | (9,026) | ||||
Net income (loss) | $ (2,078) | $ (2,813) | $ (6,229) | $ (9,026) |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 9 Months Ended |
Nov. 30, 2020Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Number of operating segments | 3 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Segment Reporting Information by Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 201,065 | $ 110,112 | $ 401,084 | $ 293,812 |
Equity in income of equity investees | 1,761 | 967 | 4,506 | 3,672 |
Interest expense and bank charges | 471 | 751 | 2,334 | 2,635 |
Depreciation and amortization expense | 2,934 | 3,101 | 8,224 | 9,229 |
Income (loss) before income taxes | 19,774 | 4,087 | 21,614 | (6,979) |
Operating Segments [Member] | Automotive Electronics [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 61,488 | 29,985 | 111,397 | 86,472 |
Equity in income of equity investees | 1,761 | 967 | 4,506 | 3,672 |
Interest expense and bank charges | 537 | 137 | 1,058 | 354 |
Depreciation and amortization expense | 876 | 187 | 2,050 | 567 |
Income (loss) before income taxes | 6,601 | 92 | 3,730 | 869 |
Operating Segments [Member] | Consumer Electronics [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 139,039 | 79,914 | 288,545 | 206,601 |
Equity in income of equity investees | 0 | 0 | 0 | 0 |
Interest expense and bank charges | 2,290 | 2,560 | 6,584 | 7,427 |
Depreciation and amortization expense | 1,002 | 1,093 | 2,921 | 3,356 |
Income (loss) before income taxes | 20,351 | 9,583 | 33,087 | 8,976 |
Operating Segments [Member] | Biometrics [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 343 | 138 | 703 | 398 |
Equity in income of equity investees | 0 | 0 | 0 | 0 |
Interest expense and bank charges | 372 | 324 | 1,094 | 939 |
Depreciation and amortization expense | 75 | 783 | 247 | 2,352 |
Income (loss) before income taxes | (2,078) | (2,813) | (6,229) | (8,835) |
Corporate, Non-Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 195 | 75 | 439 | 341 |
Equity in income of equity investees | 0 | 0 | 0 | 0 |
Interest expense and bank charges | (2,728) | (2,270) | (6,402) | (6,085) |
Depreciation and amortization expense | 981 | 1,038 | 3,006 | 2,954 |
Income (loss) before income taxes | $ (5,100) | $ (2,775) | $ (8,974) | $ (7,989) |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Additional Information (Details) | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2020USD ($) | Nov. 30, 2020USD ($)Segment | Aug. 31, 2020USD ($) | Feb. 29, 2020USD ($) | |
Disaggregation Of Revenue [Line Items] | ||||
Contract with customer, right to recover product | $ 1,822,000 | $ 1,822,000 | $ 1,544,000 | |
Contract with customer, refund liability | 4,185,000 | 4,185,000 | 3,779,000 | |
Contract with customer, asset, net | 0 | $ 0 | 0 | |
Contract with customer, liability, revenue recognized | 2,767,000 | |||
Contract with customer, liability | $ 2,767,000 | $ 0 | ||
Number of reportable segments | Segment | 3 | |||
Telematic Subscription Services [Member] | Directed LLC and Directed Electronics Canada Inc [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Contract with customer, liability | $ 4,412,000 | $ 4,412,000 | ||
Minimum [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Warrant period | 30 days | |||
Maximum [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Warrant period | 3 years |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Disaggregation Of Revenue [Line Items] | ||||
Net sales | $ 201,065 | $ 110,112 | $ 401,084 | $ 293,812 |
Corporate, Non-Segment [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 195 | 75 | 439 | 341 |
Automotive [Member] | Operating Segments [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 61,488 | 29,985 | 111,397 | 86,472 |
Automotive [Member] | Operating Segments [Member] | OEM Products [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 14,089 | 10,628 | 32,462 | 37,391 |
Automotive [Member] | Operating Segments [Member] | Aftermarket Products [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 47,399 | 19,357 | 78,935 | 49,081 |
Consumer Electronics [Member] | Operating Segments [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 139,039 | 79,914 | 288,545 | 206,601 |
Consumer Electronics [Member] | Operating Segments [Member] | Premium Audio Products [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 112,681 | 53,250 | 216,501 | 128,056 |
Consumer Electronics [Member] | Operating Segments [Member] | Other Consumer Electronic Products [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 26,358 | 26,664 | 72,044 | 78,545 |
Biometrics [Member] | Operating Segments [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 343 | 138 | 703 | 398 |
Biometrics [Member] | Operating Segments [Member] | Biometric Products [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | $ 343 | $ 138 | $ 703 | $ 398 |