Virginia | 54-0251350 |
( State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
Title of Each Class
|
Name of Each Exchange
on Which Registered
|
Common Stock, no par value | NASDAQ Global Select Market |
Large accelerated Filer
o
|
Accelerated Filer
x
|
Non-accelerated Filer
o
(Do not check if a smaller reporting company)
|
Smaller reporting company
o
|
Common stock, no par value |
11,535,251
|
(Class of common stock) | (Number of shares) |
Part I
|
Page
|
|
Item 1.
|
5
|
|
Item 1A.
|
12
|
|
Item 1B.
|
20
|
|
Item 2.
|
20
|
|
Item 3.
|
21
|
|
Item 4.
|
21
|
|
22
|
||
Part II
|
||
Item 5.
|
23
|
|
Item 6.
|
25
|
|
Item 7.
|
26
|
|
Item 7A.
|
43
|
|
Item 8.
|
44
|
|
Item 9.
|
44
|
|
Item 9A.
|
44
|
|
Item 9B.
|
44
|
|
Part III
|
||
Item 10.
|
45
|
|
Item 11.
|
45
|
|
Item 12.
|
45
|
|
Item 13.
|
45
|
|
Item 14.
|
45
|
|
Part IV
|
||
Item 15.
|
46
|
|
48
|
||
Index to Consolidated Financial Statements
|
F-1
|
|
§
|
general economic or business conditions, both domestically and internationally, and instability in the financial and credit markets, including their potential impact on our (i) sales and operating costs and access to financing or (ii) customers and suppliers and their ability to obtain financing or generate the cash necessary to conduct their respective businesses;
|
|
§
|
the risks related to the recent acquisition of substantially all of the assets of Home Meridian International, Inc., (“HMI”) including maintaining HMI’s existing customer relationships, deal-related costs to be recognized in fiscal 2017, integration costs, costs related to acquisition debt, including debt service costs, interest rate volatility, the use of operating cash flows to service debt to the detriment of other corporate initiatives or strategic opportunities, financial statement charges related to the application of current accounting guidance in accounting for the acquisition, the recognition of significant additional depreciation and amortization expenses by the combined entity, the loss of key employees from HMI, the ongoing costs related to the assumption of HMI’s pension liabilities, the disruption of ongoing businesses or inconsistencies in standards, controls, procedures and policies across the companies which could adversely affect our internal control or information systems and the costs of bringing them into compliance and failure to realize benefits anticipated from the acquisition;
|
|
§
|
the risks specifically related to HMI’s operations including significant concentrations of its sales and accounts receivable in only a few customers or disruptions affecting its Madison, NC, Mayodan, NC or Redlands, CA warehouses or its High Point, NC administrative facilities;
|
|
§
|
achieving and managing growth and change, and the risks associated with new business lines, acquisitions, restructurings, strategic alliances and international operations;
|
|
§
|
our ability to successfully implement our business plan to increase sales and improve financial performance;
|
|
§
|
the cost and difficulty of marketing and selling our products in foreign markets;
|
|
§
|
disruptions involving our vendors or the transportation and handling industries, particularly those affecting imported products from China and Vietnam, including customs issues, labor stoppages, strikes or slowdowns and the availability of shipping containers and cargo ships;
|
|
§
|
the interruption, inadequacy, security breaches or integration failure of our information systems or information technology infrastructure, related service providers or the internet;
|
|
§
|
disruptions affecting our Martinsville and Henry County, Virginia warehouses and corporate headquarters facilities;
|
|
§
|
when or whether our new business initiatives, including, among others, H Contract and Homeware, meet growth and profitability targets;
|
|
§
|
price competition in the furniture industry;
|
|
§
|
changes in domestic and international monetary policies and fluctuations in foreign currency exchange rates affecting the price of our imported products and raw materials;
|
|
§
|
the cyclical nature of the furniture industry, which is particularly sensitive to changes in consumer confidence, the amount of consumers’ income available for discretionary purchases, and the availability and terms of consumer credit;
|
|
§
|
risks associated with the cost of imported goods, including fluctuation in the prices of purchased finished goods and transportation and warehousing costs;
|
|
§
|
risks associated with domestic manufacturing operations, including fluctuations in capacity utilization and the prices and availability of key raw materials, as well as changes in transportation, warehousing and domestic labor costs and environmental compliance and remediation costs;
|
|
§
|
the direct and indirect costs associated with the implementation of our Enterprise Resource Planning system, including costs resulting from unanticipated disruptions to our business;
|
|
§
|
adverse political acts or developments in, or affecting, the international markets from which we import products, including duties or tariffs imposed on those products;
|
|
§
|
risks associated with distribution through third-party retailers, such as non-binding dealership arrangements;
|
|
§
|
capital requirements and costs;
|
|
§
|
competition from non-traditional outlets, such as catalog and internet retailers and home improvement centers;
|
|
§
|
changes in consumer preferences, including increased demand for lower-quality, lower-priced furniture due to, among other things, declines in consumer confidence, amounts of discretionary income available for furniture purchases and the availability of consumer credit;
|
|
§
|
higher than expected costs associated with product quality and safety, including regulatory compliance costs related to the sale of consumer products and costs related to defective or non-compliant products; and
|
|
§
|
higher than expected employee medical costs.
|
§
|
To offer world-class style, quality and product value as a complete residential and contract wood, metal and upholstered furniture resource through excellence in product design, manufacturing, global sourcing, marketing, logistics, sales and customer service.
|
§
|
To be an industry leader in sales growth and profitability performance, providing an outstanding investment for our shareholders and contributing to the well-being of our customers, employees, suppliers and community.
|
§
|
To nurture the relationships, teamwork and integrity that define our corporate culture and have distinguished our company for over 90 years.
|
Hooker Furniture Corporation
|
||||
Operating Segments
|
||||
Casegoods
|
Upholstery
|
All other
|
||
Brands:
|
Brands:
|
Brands:
|
||
Hooker Furniture
|
Bradington-Young
|
H Contract
|
||
Hooker Upholstery
|
Homeware
|
|||
Sam Moore
|
Segment Sales as a Percentage of Consolidated Net Sales
|
||||||||||||
Fiscal Year
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
Casegoods segment
|
63 | % | 63 | % | 63 | % | ||||||
Upholstery segment
|
34 | % | 35 | % | 36 | % | ||||||
All other segment
|
3 | % | 2 | % | 1 | % | ||||||
Total
|
100 | % | 100 | % | 100 | % |
|
§
|
the ability to offer customized upholstery combinations to the upscale consumer and interior design trade; and
|
|
§
|
the ability to offer quick four-to six-week product delivery of custom products.
|
Order Backlog
|
||||||||||||||||
(Dollars in 000s)
|
||||||||||||||||
January 31, 2016
|
February 1, 2015
|
|||||||||||||||
Dollars
|
Weeks
|
Dollars
|
Weeks
|
|||||||||||||
Casegoods segment
|
$ | 12,310 | 4.1 | $ | 14,793 | 5.1 | ||||||||||
Upholstery segment
|
9,163 | 5.7 | 8,802 | 5.3 | ||||||||||||
All other segment
|
950 | 6.1 | 542 | 7.3 | ||||||||||||
Consolidated
|
$ | 22,423 | 4.7 | $ | 24,137 | 5.2 |
|
§
|
consumer confidence;
|
|
§
|
availability of consumer credit;
|
|
§
|
energy and other commodity prices; and
|
|
§
|
housing and mortgage markets;
|
|
§
|
fashion trends;
|
|
§
|
disposable income; and
|
|
§
|
household formation and turnover.
|
|
§
|
recycled over 850,000 pounds of paper, cardboard and plastic;
|
|
§
|
reduced electricity usage by an average of 5% per year; and
|
|
§
|
reduced natural gas usage by an average of 4% per year.
|
Number of Employees at January 31, 2016
|
||||||||||||
Hooker
|
HMI
|
Total
|
||||||||||
US
|
200 | 123 | 323 | |||||||||
Asia
|
31 | 160 | 191 | |||||||||
Subtotal
|
231 | 283 | 514 | |||||||||
US Upholstery Manufacturing
|
414 | - | 414 | |||||||||
Totals
|
645 | 283 | 928 |
|
§
|
A disruption in supply from China or from our most significant Chinese supplier could adversely affect our ability to timely fill customer orders for these products and decrease our sales, earnings and liquidity.
|
|
§
|
We are subject to changes in foreign government regulations and in the political, social and economic climates of the countries from which we source our products.
|
|
§
|
Our dependence on non-U.S. suppliers could, over time, adversely affect our ability to service customers.
|
|
§
|
Our inability to accurately forecast demand for our imported products could cause us to purchase too much, too little or the wrong mix of inventory.
|
|
§
|
Changes in the value of the U.S. Dollar compared to the currencies for the countries from which we obtain our products could adversely affect our sales, earnings and liquidity.
|
|
§
|
Supplier transitions, including cost or quality issues, could result in longer lead times and shipping delays.
|
§
|
significant capital and operating expenditures;
|
§
|
disruptions to our domestic and international supply chains;
|
§
|
inability to fill customer orders accurately and on a timely basis, or at all;
|
§
|
inability to process payments to suppliers, vendors and associates accurately and in a timely manner;
|
§
|
disruption of our internal control structure;
|
§
|
inability to fulfill our SEC or other governmental reporting requirements in a timely or accurate manner;
|
§
|
inability to fulfill federal, state and local tax filing requirements in a timely or accurate manner; and
|
§
|
increased demands on management and staff time to the detriment of other corporate initiatives.
|
|
§
|
the continued correct selection and successful execution and refinement of our overall business strategies and business systems for designing, marketing, sourcing, distributing and servicing our products;
|
|
§
|
good decisions about product mix and inventory availability targets;
|
|
§
|
the enhancement of relationships and business systems that allow us to continue to work more efficiently and effectively with our global sourcing suppliers; and
|
|
§
|
the right mix between domestic manufacturing and foreign sourcing for upholstered products.
|
|
§
|
identify and adapt to trends in retailing; and
|
|
§
|
develop strategies to sell in the channels in which our consumers prefer to shop.
|
|
§
|
A significant decrease in the market value of a long-lived asset;
|
|
§
|
A significant adverse change in the extent or manner in which a long-lived asset group is being used, or in its physical condition;
|
|
§
|
A significant adverse change in legal factors or in the business climate that could affect the value of a long-lived asset, including an adverse action or assessment by a regulator;
|
|
§
|
An accumulation of costs significantly in excess of the amount originally expected to acquire or construct a long-lived asset;
|
|
§
|
A current period operating or cash flow loss or a projection or forecast that demonstrates continuing losses associated with a long-lived asset’s use; and
|
|
§
|
A current expectation that more-likely-than-not, a long-lived asset will be sold or otherwise disposed of significantly before the end of its previously estimated useful life.
|
|
§
|
may limit our flexibility to pursue other strategic opportunities or react to changes in our business and the industry in which we operate and, consequently, place us at a competitive disadvantage to competitors with less debt;
|
|
§
|
will require a portion of our cash flows from operations to be used for debt service payments, thereby reducing the availability of cash flows to fund working capital, capital expenditures, dividend payments and other general corporate purposes;
|
|
§
|
may result in higher interest expense in the event of increases in market interest rates for both long
‑
term debt as well as any borrowings under our line of credit at variable rates; and
|
|
§
|
may require that additional terms, conditions or covenants be placed on us.
|
Name
|
Age
|
Position
|
Year Joined Company
|
|||
Paul B. Toms, Jr.
|
61
|
Chairman and Chief Executive Officer
|
1983
|
|||
Paul A. Huckfeldt
|
58
|
Chief Financial Officer and
|
2004
|
|||
Senior Vice President - Finance and Accounting
|
||||||
Michael W. Delgatti, Jr.
|
62
|
President - Hooker Furniture Corporation
|
2009
|
|||
Anne M. Jacobsen
|
54
|
Senior Vice President-Administration
|
2008
|
|||
George Revington
|
69
|
President and Chief Operating Officer - Home Meridian
|
2016
|
Sales Price Per Share
|
Dividends
|
|||||||||||
High
|
Low
|
Per Share
|
||||||||||
November 2, 2015 - January 31, 2016
|
$ | 30.51 | $ | 24.00 | $ | 0.10 | ||||||
August 3, - November 1, 2015
|
26.50 | 22.16 | 0.10 | |||||||||
May 4, - August 2, 2015
|
27.30 | 23.50 | 0.10 | |||||||||
February 2 - May 3, 2015
|
26.67 | 17.57 | 0.10 | |||||||||
November 3, 2014 - February 1, 2015
|
$ | 18.77 | $ | 14.25 | $ | 0.10 | ||||||
August 4, - November 2, 2014
|
16.00 | 14.24 | 0.10 | |||||||||
May 5, - August 3, 2014
|
17.40 | 13.60 | 0.10 | |||||||||
February 3 - May 4, 2014
|
16.24 | 13.64 | 0.10 |
(1)
|
The graph shows the cumulative total return on $100 invested at the beginning of the measurement period in our common stock or the specified index, including reinvestment of dividends.
|
(2)
|
The Russell 2000
®
Index, prepared by Frank Russell Company, measures the performance of the 2,000 smallest companies out of the 3,000 largest U.S. companies based on total market capitalization.
|
(3)
|
Household Furniture Index as prepared by Zacks Investment Research, Inc. consists of companies under SIC Codes 2510 and 2511, which includes home furnishings companies that are publically traded in the United States or Canada. At January 31, 2016, Zacks Investment Research, Inc. reported that these two SIC Codes consisted of Bassett Furniture Industries, Inc., Dorel Industries, Inc., Ethan Allen Interiors, Inc., Flexsteel Industries, Inc., Hooker Furniture Corporation, La-Z-Boy, Inc., Leggett & Platt, Inc., Natuzzi SPA-ADR, Nova Lifestyle, Inc., Select Comfort Corporation, Stanley Furniture Company, Inc., Luvu Brands Inc., Kimball International, Inc. and Tempur Sealy.
|
Fiscal Year Ended (1)
|
||||||||||||||||||||
January 31,
|
February 1,
|
February 2,
|
February 3,
|
January 29,
|
||||||||||||||||
2016
|
2015
|
2014
|
2013
|
2012
|
||||||||||||||||
(In thousands, except per share data)
|
||||||||||||||||||||
Income Statement Data:
|
||||||||||||||||||||
Net sales
|
$ | 246,999 | $ | 244,350 | $ | 228,293 | $ | 218,359 | $ | 222,505 | ||||||||||
Cost of sales
|
178,311 | 181,550 | 173,568 | 165,813 | 173,642 | |||||||||||||||
Gross profit
|
68,688 | 62,800 | 54,725 | 52,546 | 48,863 | |||||||||||||||
Selling and administrative expenses (2)
|
44,426 | 43,752 | 42,222 | 39,606 | 40,375 | |||||||||||||||
Goodwill and intangible asset impairment charges (3)
|
- | - | - | - | 1,815 | |||||||||||||||
Operating income
|
24,262 | 19,048 | 12,503 | 12,940 | 6,673 | |||||||||||||||
Other income (expense), net
|
197 | 350 | (35 | ) | 53 | 272 | ||||||||||||||
Income before income taxes
|
24,459 | 19,398 | 12,468 | 12,993 | 6,945 | |||||||||||||||
Income taxes
|
8,274 | 6,820 | 4,539 | 4,367 | 1,888 | |||||||||||||||
Net income
|
16,185 | 12,578 | 7,929 | 8,626 | 5,057 | |||||||||||||||
Per Share Data:
|
||||||||||||||||||||
Basic earnings per share
|
$ | 1.50 | $ | 1.17 | $ | 0.74 | $ | 0.80 | $ | 0.47 | ||||||||||
Diluted earnings per share
|
$ | 1.49 | $ | 1.16 | $ | 0.74 | $ | 0.80 | $ | 0.47 | ||||||||||
Cash dividends per share
|
0.40 | 0.40 | 0.40 | 0.40 | 0.40 | |||||||||||||||
Net book value per share (4)
|
14.46 | 13.30 | 12.57 | 12.19 | 11.78 | |||||||||||||||
Weighted average shares outstanding (basic)
|
10,779 | 10,736 | 10,722 | 10,745 | 10,762 | |||||||||||||||
Balance Sheet Data:
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | 53,922 | $ | 38,663 | $ | 23,882 | $ | 26,342 | $ | 40,355 | ||||||||||
Trade accounts receivable
|
28,176 | 32,245 | 29,393 | 28,272 | 25,807 | |||||||||||||||
Inventories
|
43,713 | 44,973 | 49,016 | 49,872 | 34,136 | |||||||||||||||
Working capital
|
111,462 | 100,871 | 94,142 | 92,200 | 89,534 | |||||||||||||||
Total assets
|
181,653 | 170,755 | 155,481 | 155,823 | 149,171 | |||||||||||||||
Long-term debt
|
- | - | - | - | - | |||||||||||||||
Shareholders' equity
|
156,061 | 142,909 | 134,803 | 131,045 | 127,113 | |||||||||||||||
(1)
|
Our fiscal years end on the Sunday closest to January 31. The fiscal years presented above all had 52 weeks, except for the fiscal year ended February 3, 2013, which had 53 weeks.
|
(2)
|
Selling and administrative expenses for fiscal 2014 included $2.1 million of startup costs pre-tax ($1.4 million, or $0.13 per share after tax) for our H Contract and Homeware business initiatives.
|
(3)
|
Based on our annual impairment analyses, we recorded intangible asset impairment charges in fiscal 2012, $1.8 million pretax ($1.1 million after tax or $0.10 per share) on our Bradington-Young trade name.
|
(4)
|
Net book value per share is derived by dividing “shareholders’ equity” by the number of common shares issued and outstanding, excluding unvested restricted shares, all determined as of the end of each fiscal period.
|
|
§
|
All of our recent public filings made with the Securities and Exchange Commission (“SEC”). Our public filings made with the SEC are available, without charge, at www.sec.gov and at http://investors.hookerfurniture.com;
|
|
§
|
The forward-looking statements contained in Item 1 of this report, which describe the significant risks and uncertainties that could cause actual results to differ materially from those forward-looking statements made in this report, including those contained in this section of our annual report on Form 10-K;
|
|
§
|
The company-specific risks found in Item 1A “Risk Factors” of this report. This section contains critical information regarding significant risks and uncertainties that we face. If any of these risks materialize, our business, financial condition and future prospects could be adversely impacted; and
|
|
§
|
Our commitments and contractual obligations and off-balance sheet arrangements described on page 36 and in Note 15 on page F-27 of this report. These sections describe commitments, contractual obligations and off-balance sheet arrangements, some of which are not reflected in our consolidated financial statements.
|
|
§
|
fifty-two week period that began February 2, 2015 and ended on January 31, 2016 (fiscal 2016);
|
|
§
|
fifty-two week period that began February 3, 2014 and ended on February 1, 2015 (fiscal 2015); and
|
|
§
|
fifty-two week period that began February 4, 2013 and ended on February 2, 2014 (fiscal 2014).
|
|
§
|
consumer confidence;
|
|
§
|
availability of consumer credit;
|
|
§
|
energy and other commodity prices; and
|
|
§
|
housing and mortgage markets;
|
|
§
|
fashion trends;
|
|
§
|
disposable income; and
|
|
§
|
household formation and turnover.
|
Fifty-two
|
Fifty-two
|
Fifty-two
|
||||||||||
weeks ended
|
weeks ended
|
weeks ended
|
||||||||||
January 31,
|
February 1,
|
February 2,
|
||||||||||
2016
|
2015
|
2014
|
||||||||||
Net sales
|
100.0 | % | 100.0 | % | 100.0 | % | ||||||
Cost of sales
|
72.2 | 74.3 | 76.0 | |||||||||
Gross profit
|
27.8 | 25.7 | 24.0 | |||||||||
Selling and administrative expenses
|
18.0 | 17.9 | 18.5 | |||||||||
Operating income
|
9.8 | 7.8 | 5.5 | |||||||||
Other income, net
|
0.1 | 0.2 | 0.0 | |||||||||
Income before income taxes
|
9.9 | 7.9 | 5.5 | |||||||||
Income taxes
|
3.3 | 2.8 | 2.0 | |||||||||
Net income
|
6.6 | 5.1 | 3.5 |
Fifty-two weeks ended
|
Fifty-two weeks ended
|
|||||||||||||||||||||||
January 31, 2016
|
February 1, 2015
|
$ Change
|
% Change
|
|||||||||||||||||||||
% Net
Sales
|
% Net
Sales
|
|||||||||||||||||||||||
Casegoods
|
$ | 155,106 | 62.8 | % | $ | 153,882 | 63.0 | % | $ | 1,224 | 0.8 | % | ||||||||||||
Upholstery
|
84,090 | 34.0 | % | 86,362 | 35.3 | % | (2,272 | ) | -2.6 | % | ||||||||||||||
All Other
|
8,033 | 3.3 | % | 5,025 | 2.1 | % | 3,008 | 59.9 | % | |||||||||||||||
Intercompany Eliminations
|
(230 | ) | (919 | ) | 689 | |||||||||||||||||||
Consolidated
|
$ | 246,999 | 100.0 | % | $ | 244,350 | 100.0 | % | $ | 2,649 | 1.1 | % |
Unit Volume
|
FY16 % Increase vs. FY15
|
Average Selling Price ("ASP")
|
FY16 % Increase vs. FY15
|
|||||||
Casegoods
|
-3.7 | % |
Casegoods
|
4.1 | % | |||||
Upholstery
|
-5.2 | % |
Upholstery
|
2.7 | % | |||||
All other
|
98.0 | % |
All other
|
-19.7 | % | |||||
Consolidated
|
-1.5 | % |
Consolidated
|
2.0 | % |
|
§
|
Slowing retail furniture sales in the second half of 2016;
|
|
§
|
Lingering product availability challenges due to expanding lead times and late deliveries of certain of our more popular October 2014 market introductions in that segment during the fiscal 2016 first quarter. We received most of the October market introductions and delivered standing orders to customers during the fiscal 2016 second quarter; however, late deliveries resulted in delayed reorders even on products which have retailed well, which impacted shipments into the fiscal 2016 second half; and
|
|
§
|
Outages of key component products that prevented orders for certain suites from shipping during the fiscal 2016 third quarter.
|
|
§
|
decreases at Hooker upholstery due to pressure on motion upholstery pricing and, to a lesser extent, exiting lower margin sales programs at the expense of net sales; and
|
|
§
|
decreases at Sam Moore due to the effects of discontinuing unprofitable sales programs at the expense of net sales and lingering post-ERP implementation inefficiencies during the second half of fiscal 2016.
|
Fifty-two weeks ended
|
Fifty-two weeks ended
|
|||||||||||||||||||||||
January 31, 2016
|
February 1, 2015
|
$ Change
|
% Change
|
|||||||||||||||||||||
% Segment Net Sales | % Segment Net Sales | |||||||||||||||||||||||
Casegoods
|
$ | 47,558 | 30.7 | % | $ | 44,868 | 29.2 | % | $ | 2,690 | 6.0 | % | ||||||||||||
Upholstery
|
18,852 | 22.4 | % | 16,489 | 19.1 | % | 2,363 | 14.3 | % | |||||||||||||||
All Other
|
2,252 |
28.0
|
% | 1,465 | 29.2 | % | 787 | 53.7 | % | |||||||||||||||
|
||||||||||||||||||||||||
Intercompany Eliminations | 26 | (22 | ) | 48 | ||||||||||||||||||||
Consolidated | $ | 68,688 | 27.8 | % | $ | 62,800 | 25.7 | % | $ | 5,888 | 9.4 | % |
|
§
|
Improved casegoods segment gross profit due to decreased discounting due to a better product mix, lower cost of goods sold due to declining freight costs, which more than offset vendor price increases, and lower returns and allowances and other quality related costs as a result of better product quality;
|
|
§
|
Improved upholstery segment gross profit due to operating efficiencies such as decreased contract manufacturing and lower medical claims expense in that segment; and
|
|
§
|
Improved All Other segment gross profit due primarily to increased net sales at H Contract.
|
Fifty-two weeks ended
|
Fifty-two weeks ended
|
|||||||||||||||||||||||
January 31, 2016
|
February 1, 2015
|
$ Change
|
% Change
|
|||||||||||||||||||||
% Segment
Net Sales
|
% Segment
Net Sales
|
|||||||||||||||||||||||
Casegoods
|
$ | 29,049 | 18.7 | % | $ | 27,582 | 17.9 | % | $ | 1,467 | 5.3 | % | ||||||||||||
Upholstery
|
12,833 | 15.3 | % | 13,618 | 15.8 | % | (785 | ) | -5.8 | % | ||||||||||||||
All Other
|
2,544 | 31.7 | % | 2,552 | 50.8 | % | (8 | ) | -0.3 | % | ||||||||||||||
Consolidated
|
$ | 44,426 | 18.0 | % | $ | 43,752 | 17.9 | % | $ | 674 | 1.5 | % |
Fifty-two weeks ended
|
Fifty-two weeks ended
|
|||||||||||||||||||||||
January 31, 2016
|
February 1, 2015
|
$ Change
|
% Change
|
|||||||||||||||||||||
% Segment
Net Sales
|
% Segment
Net Sales
|
|||||||||||||||||||||||
Casegoods
|
$ | 18,509 | 11.9 | % | $ | 17,286 | 11.2 | % | $ | 1,223 | 7.1 | % | ||||||||||||
Upholstery
|
6,020 | 7.2 | % | 2,871 | 3.3 | % | 3,149 | 109.7 | % | |||||||||||||||
All Other
|
(293 | ) | -3.6 | % | (1,087 | ) | -21.6 | % | 794 | 73.0 | % | |||||||||||||
Intercompany Eliminations
|
26 | (22 | ) | 48 | ||||||||||||||||||||
Consolidated
|
$ | 24,262 | 9.8 | % | $ | 19,048 | 7.8 | % | $ | 5,214 | 27.4 | % |
Fifty-two weeks ended
|
Fifty-two weeks ended
|
|||||||||||||||||||||||
January 31, 2016
|
February 1, 2015
|
$ Change
|
% Change
|
|||||||||||||||||||||
% Net Sales
|
% Net Sales
|
|||||||||||||||||||||||
Consolidated income tax expense
|
$ | 8,274 | 3.3 | % | $ | 6,820 | 2.8 | % | $ | 1,454 | 21.3 | % | ||||||||||||
Effective Tax Rate
|
33.8 | % | 35.2 | % |
Fifty-two weeks ended
|
Fifty-two weeks ended
|
|||||||||||||||||||||||
January 31, 2016
|
February 1, 2015
|
$ Change
|
% Change
|
|||||||||||||||||||||
% Net Sales
|
% Net Sales
|
|||||||||||||||||||||||
Consolidated
|
$ | 16,185 | 6.6 | % | $ | 12,578 | 5.1 | % | $ | 3,607 | 28.7 | % | ||||||||||||
Diluted earnings per share
|
$ | 1.49 | $ | 1.16 |
Fifty-two weeks ended
|
Fifty-two weeks ended
|
|||||||||||||||||||||||
February 1, 2015
|
February 2, 2014
|
$ Change
|
% Change
|
|||||||||||||||||||||
% Net Sales
|
% Net Sales
|
|||||||||||||||||||||||
Casegoods
|
$ | 153,882 | 63.0 | % | $ | 143,802 | 63.0 | % | $ | 10,080 | 7.0 | % | ||||||||||||
Upholstery
|
86,362 | 35.3 | % | 83,027 | 36.4 | % | $ | 3,335 | 4.0 | % | ||||||||||||||
All Other
|
5,025 | 2.1 | % | 1,487 | 0.7 | % | $ | 3,538 | 237.9 | % | ||||||||||||||
Intercompany Eliminations
|
(919 | ) | (23 | ) | $ | (896 | ) | |||||||||||||||||
Consolidated
|
$ | 244,350 | 100.0 | % | $ | 228,293 | 100.0 | % | $ | 16,057 | 7.0 | % |
Unit Volume
|
FY15 % Increase vs. FY14
|
Average Selling Price
|
FY15 % Increase vs. FY14
|
|||||||
Casegoods
|
-3.8 | % |
Casegoods
|
11.5 | % | |||||
Upholstery
|
-2.3 | % |
Upholstery
|
6.6 | % | |||||
All other
|
234.2 | % |
All other
|
2.9 | % | |||||
Consolidated
|
-1.5 | % |
Consolidated
|
9.3 | % |
Fifty-two weeks ended
|
Fifty-two weeks ended
|
|||||||||||||||||||||||
February 1, 2015
|
February 2, 2014
|
$ Change
|
% Change
|
|||||||||||||||||||||
% Segment Net Sales
|
% Segment Net Sales
|
|||||||||||||||||||||||
Casegoods
|
$ | 44,868 | 29.2 | % | $ | 38,762 | 27.0 | % | $ | 6,106 | 15.8 | % | ||||||||||||
Upholstery
|
16,489 | 19.1 | % | 15,393 | 18.5 | % | 1,096 | 7.1 | % | |||||||||||||||
All Other
|
1,465 | 29.2 | % | 588 | 39.5 | % | 877 | 149.1 | % | |||||||||||||||
Intercompany Eliminations
|
(22 | ) | (18 | ) | (4 | ) | ||||||||||||||||||
Consolidated
|
$ | 62,800 | 25.7 | % | $ | 54,725 | 24.0 | % | $ | 8,075 | 14.8 | % |
|
§
|
decreased casegoods segment discounting, partially offset by increased returns and allowances;
|
|
§
|
a $1.1 million gross profit increase in our upholstery segment due primarily to higher net sales and reduced manufacturing costs; and
|
|
§
|
a substantial increase in net sales for our H Contract business initiative as that business completes its first full year in operation and begins to establish itself in the contract furniture industry.
|
Fifty-two weeks ended
|
Fifty-two weeks ended
|
|||||||||||||||||||||||
February 1, 2015
|
February 2, 2014
|
$ Change
|
% Change
|
|||||||||||||||||||||
% Segment Net Sales
|
% Segment Net Sales
|
|||||||||||||||||||||||
Casegoods
|
$ | 27,582 | 17.9 | % | $ | 26,612 | 18.5 | % | $ | 970 | 3.6 | % | ||||||||||||
Upholstery
|
13,618 | 15.8 | % | 13,480 | 16.2 | % | 138 | 1.0 | % | |||||||||||||||
All Other
|
2,552 | 50.8 | % | 2,130 | 143.3 | % | 422 | 19.8 | % | |||||||||||||||
Consolidated
|
$ | 43,752 | 17.9 | % | $ | 42,222 | 18.5 | % | $ | 1,530 | 3.6 | % |
|
§
|
commission expense due to higher sales;
|
|
§
|
bonus expense due to higher earnings; and
|
|
§
|
bad debts expense due to the write-off of a customer account during the period.
|
|
§
|
professional services due to lower compliance costs; and
|
|
§
|
salaries and benefits expense due to the retirement of an executive in early fiscal 2015 and decreases in medical claims expense and increases in the cash surrender value of Company-owned life insurance.
|
|
§
|
bad debt expense due to the write-off of a customer account during the period; and
|
|
§
|
benefits expense due to higher medical claims expense.
|
|
§
|
advertising supplies due to better cost management; and
|
|
§
|
professional services due to reduced manufacturing-related consulting.
|
Fifty-two weeks ended
|
Fifty-two weeks ended
|
|||||||||||||||||||||||
February 1, 2015
|
February 2, 2014
|
$ Change
|
% Change
|
|||||||||||||||||||||
% Segment Net Sales
|
% Segment Net Sales
|
|||||||||||||||||||||||
Casegoods
|
$ | 17,286 | 11.2 | % | $ | 12,150 | 8.4 | % | $ | 5,136 | 42.3 | % | ||||||||||||
Upholstery
|
2,871 | 3.3 | % | 1,913 | 2.3 | % | 958 | 50.1 | % | |||||||||||||||
All Other
|
(1,087 | ) | -21.6 | % | (1,542 | ) | -103.7 | % | 455 | -29.5 | % | |||||||||||||
Intercompany Eliminations
|
(22 | ) | (18 | ) | (4 | ) | ||||||||||||||||||
Consolidated
|
$ | 19,048 | 7.8 | % | $ | 12,503 | 5.5 | % | $ | 6,545 | 52.3 | % |
Fifty-two weeks ended
|
Fifty-two weeks ended
|
|||||||||||||||||||||||
February 1, 2015
|
February 2, 2014
|
$ Change
|
% Change
|
|||||||||||||||||||||
% Net Sales
|
% Net Sales
|
|||||||||||||||||||||||
Consolidated income tax expense
|
$ | 6,820 | 2.8 | % | $ | 4,539 | 2.0 | % | $ | 2,281 | 50.3 | % | ||||||||||||
Effective Tax Rate
|
35.2 | % | 36.4 | % |
Fifty-two weeks ended
|
Fifty-two weeks ended
|
|||||||||||||||||||||||
February 1, 2015
|
February 2, 2014
|
$ Change
|
% Change
|
|||||||||||||||||||||
% Net Sales
|
% Net Sales
|
|||||||||||||||||||||||
Consolidated
|
$ | 12,578 | 5.1 | % | $ | 7,929 | 3.5 | % | $ | 4,649 | 58.6 | % | ||||||||||||
Earnings per share
|
$ | 1.16 | $ | 0.74 |
Balance Sheet and Working Capital
|
||||||||||||
January 31, 2016
|
February 1, 2015
|
$ Change
|
||||||||||
Total Assets
|
$ | 181,653 | $ | 170,755 | $ | 10,898 | ||||||
Cash
|
$ | 53,922 | $ | 38,663 | $ | 15,259 | ||||||
Trade Receivables
|
28,176 | 32,245 | (4,069 | ) | ||||||||
Inventories
|
43,713 | 44,973 | (1,260 | ) | ||||||||
Prepaid Expenses & Other
|
2,256 | 2,353 | (97 | ) | ||||||||
Total Current Assets
|
$ | 128,067 | $ | 118,234 | $ | 9,833 | ||||||
Trade accounts payable
|
$ | 9,105 | $ | 10,293 | $ | (1,188 | ) | |||||
Accrued salaries, wages and benefits
|
4,834 | 4,824 | 10 | |||||||||
Other accrued expenses, commissions and deposits
|
2,666 | 3,950 | (1,284 | ) | ||||||||
Total current liabilities
|
$ | 16,605 | $ | 19,067 | $ | (2,462 | ) | |||||
Net working capital
|
$ | 111,462 | $ | 99,167 | $ | 12,295 | ||||||
Working capital ratio
|
7.7 to 1
|
6.2 to 1
|
Fifty-Two Weeks Ended
|
Fifty-Two Weeks Ended
|
Fifty-Two Weeks Ended
|
||||||||||
January 31,
|
February 1,
|
February 2,
|
||||||||||
2016
|
2015
|
2014
|
||||||||||
Net cash provided by operating activities
|
$ | 23,036 | $ | 22,768 | $ | 5,696 | ||||||
Net cash used in investing activities
|
(3,455 | ) | (3,681 | ) | (3,855 | ) | ||||||
Net cash used in financing activities
|
(4,322 | ) | (4,306 | ) | (4,301 | ) | ||||||
Net increase (decrease) in cash and cash equivalents
|
$ | 15,259 | $ | 14,781 | $ | (2,460 | ) |
|
§
|
available cash and cash equivalents, which are highly dependent on incoming order rates and our operating performance;
|
|
§
|
expected cash flow from operations; and
|
|
§
|
available lines of credit.
|
|
§
|
capital expenditures;
|
|
§
|
working capital, including capital required for insourcing our Bradington-Young trade receivables in fiscal 2017 and for our new business initiatives;
|
|
§
|
the payment of regular quarterly cash dividends on our common stock; and
|
|
§
|
the servicing of debt related to our acquisition of HMI.
|
§
|
Maintain a tangible net worth of at least $105.0 million plus 40% of net income before taxes;
|
§
|
Maintain a ratio of funded debt to EBITDA not exceeding:
|
|
□
|
2.50:1.0 through August 31, 2017;
|
|
□
|
2.25:1.0 through August 31, 2018;
|
|
□
|
2.00:1.0 September 1, 2018 and thereafter.
|
§
|
Maintain a basic fixed coverage charge of 1.25 to 1.0;
|
§
|
Limit capital expenditures to no more than $15.0 million during any fiscal year; and
|
§
|
Limitations on the types of investments we are allowed to make.
|
§
|
allowed us to outsource the administrative burden of the credit and collections functions for our domestic upholstery operations;
|
§
|
allowed us to transfer the collection risk associated with the majority of our domestic upholstery receivables to the factor; and
|
§
|
provided us with an additional, potential source of short-term liquidity.
|
Cash Payments Due by Period (In thousands)
|
||||||||||||||||||||
Less than
|
More than
|
|||||||||||||||||||
1 Year
|
1-3 Years
|
3-5 Years
|
5 years
|
Total
|
||||||||||||||||
Deferred compensation payments
(1)
|
$ | 354 | $ | 1,060 | $ | 1,590 | $ | 11,226 | $ | 14,230 | ||||||||||
Operating leases
(2)
|
1,857 | 2,781 | 2,701 | 212 | 7,551 | |||||||||||||||
Other long-term obligations
(3)
|
1,175 | 331 | 63 | - | 1,569 | |||||||||||||||
Total contractual cash obligations
|
$ | 3,386 | $ | 4,172 | $ | 4,354 | $ | 11,438 | $ | 23,350 |
(1)
|
These amounts represent estimated cash payments to be paid to participants in our supplemental retirement income plan or “SRIP” through fiscal year 2043, which is 15 years after the last current SRIP participant is assumed to have retired. The present value of these benefits (the actuarially derived projected benefit obligation for this plan) was approximately $8.2 million at January 31, 2016 and is shown on our consolidated balance sheets, with $354,000 recorded in current liabilities and $7.8 million recorded in long-term liabilities. The monthly retirement benefit for each participant, regardless of age, would become fully vested and the present value of that benefit would be paid to each participant in a lump sum upon a change in control of the Company as defined in the plan. See note 10 to the consolidated financial statements beginning on page F-18 for additional information about the SRIP.
|
(2)
|
These amounts represent estimated cash payments due under operating leases for real estate utilized in our operations and warehouse and office equipment. $6.7 million of these estimated cash payments pertain to two leases: (1) Our CDC II warehouse and distribution facility and (2) our showroom at the International Home Furnishings Center. See Item 2 “Properties,” for a description of our leased real estate.
|
(3)
|
These amounts represent estimated cash payments due under various long-term service and support agreements, for items such as warehouse management services, information technology support and human resources related consulting and support.
|
|
§
|
evaluating ways to expand into new distribution channels;
|
|
§
|
successfully integrating the Home Meridian division;
|
|
§
|
leveraging best practices in order to lower costs, improve efficiencies and grow sales;
|
|
§
|
growing and improving the profitability of our new business initiatives;
|
|
§
|
building on our initial successes in expanding our merchandising reach in the “better” parts of our “good-better-best” casegoods product offerings;
|
|
§
|
growing sales of our Cynthia Rowley home furnishings collection;
|
|
§
|
improving the product assortment and value proposition of the Hooker Upholstery imported products line;
|
|
§
|
improving operating profitability and increasing production capacity at Sam Moore;
|
|
§
|
mitigating inflation on our imported products and raw materials;
|
|
§
|
maintaining proper inventory levels and optimizing product availability on best-selling items;
|
|
§
|
strengthening our relationships with key vendors and sourcing product from cost-competitive locations and from quality-conscious sourcing partners;
|
|
§
|
offering an array of new products and designs, which we believe will help generate additional sales;
|
|
§
|
upgrading and refining our information systems capabilities to support our businesses, including implementing an ERP system at Bradington-Young; and
|
|
§
|
controlling costs.
|
|
§
|
A significant decrease in the market value of the long-lived asset;
|
|
§
|
A significant adverse change in the extent or manner in which a long-lived asset group is being used, or in its physical condition;
|
|
§
|
A significant adverse change in the legal factors or in the business climate that could affect the value of a long-lived asset, including an adverse action or assessment by a regulator;
|
|
§
|
An accumulation of costs significantly in excess of the amount originally expected to acquire or construct a long-lived asset;
|
|
§
|
A current period operating or cash flow loss or a projection or forecast that demonstrates continuing losses associated with the long-lived asset’s use; and
|
|
§
|
A current expectation that more-likely-than-not, a long-lived asset will be sold or otherwise disposed of significantly before the end of its previously estimated useful life.
|
|
§
|
a significant adverse change in the economic or business climate either within the furniture industry or the national or global economy;
|
|
§
|
significant changes in demand for our products;
|
|
§
|
loss of key personnel; and
|
|
§
|
the likelihood that a reporting unit or significant portion of a reporting unit will be sold or otherwise subject to disposal.
|
2.1
|
Asset Purchase Agreement by and between the Company and Home Meridian International, Inc., dated as of January 5, 2016 (incorporated by reference to Exhibit 2.1 of the Company’s Form 8-K (SEC File No. 000-25349) filed on January 7, 2016
|
3.1
|
Amended and Restated Articles of Incorporation of the Company, as amended March 28, 2003 (incorporated by reference to Exhibit 3.1 of the Company’s Form 10-Q (SEC File No. 000-25349) for the quarter ended February 28, 2003)
|
3.2
|
Amended and Restated Bylaws of the Company as amended December 10, 2013 (incorporated by reference to Exhibit 3.2 of the Company’s Form 10-K (SEC File No. 000-25349) for the fiscal year ended February 2, 2014)
|
4.1
|
Amended and Restated Articles of Incorporation of the Company (See Exhibit 3.1)
|
4.2
|
Amended and Restated Bylaws of the Company (See Exhibit 3.2)
|
|
Pursuant to Regulation S-K, Item 601(b)(4)(iii), instruments, if any, evidencing long-term debt not exceeding 10% of the Company’s total assets have been omitted and will be furnished to the Securities and Exchange Commission upon request.
|
Signature
|
Title
|
Date
|
||
/s/ Paul B. Toms, Jr.
|
Chairman, Chief Executive Officer and
|
April 15, 2016
|
||
Paul B. Toms, Jr.
|
Director (Principal Executive Officer)
|
|||
/s/ Paul A. Huckfeldt
|
Senior Vice President - Finance and Accounting
|
April 15, 2016
|
||
Paul A. Huckfeldt
|
and Chief Financial Officer (Principal Financial and Accounting Officer)
|
|||
/s/ W. Christopher Beeler, Jr.
|
Director
|
April 15, 2016
|
||
W. Christopher Beeler, Jr.
|
||||
/s/ John L. Gregory, III
|
Director
|
April 15, 2016
|
||
John L. Gregory, III
|
||||
/s/ E. Larry Ryder
|
Director
|
April 15, 2016
|
||
E. Larry Ryder
|
||||
/s/ David G. Sweet
|
Director
|
April 15, 2016
|
||
David G. Sweet
|
||||
/s/
Ellen C. Taaffe
|
Director
|
April 15, 2016
|
||
Ellen C. Taaffe
|
||||
/s/ Henry G. Williamson, Jr.
|
Director
|
April 15, 2016
|
||
Henry G. Williamson, Jr.
|
||||
Page
|
|
F-2
|
|
F-3
|
|
F-5
|
|
F-6
|
|
F-7
|
|
F-8
|
|
F-9
|
|
F-10
|
As of
|
January 31,
|
February 1,
|
||||||
2016
|
2015
|
|||||||
Assets
|
||||||||
Current assets
|
||||||||
Cash and cash equivalents
|
$ | 53,922 | $ | 38,663 | ||||
Trade accounts receivable, less allowance for doubtful
accounts of
$1,032
and $1,329 on each respective date
|
28,176 | 32,245 | ||||||
Inventories
|
43,713 | 44,973 | ||||||
Prepaid expenses and other current assets
|
2,256 | 2,353 | ||||||
Total current assets
|
128,067 | 118,234 | ||||||
Property, plant and equipment, net
|
22,768 | 22,824 | ||||||
Cash surrender value of life insurance policies
|
21,888 | 20,373 | ||||||
Deferred taxes
|
5,350 | 5,892 | ||||||
Intangible assets
|
1,382 | 1,382 | ||||||
Other assets
|
2,198 | 2,050 | ||||||
Total non-current assets
|
53,586 | 52,521 | ||||||
Total assets
|
$ | 181,653 | $ | 170,755 | ||||
Liabilities and Shareholders’ Equity
|
||||||||
Current liabilities
|
||||||||
Trade accounts payable
|
$ | 9,105 | $ | 10,293 | ||||
Accrued salaries, wages and benefits
|
4,834 | 4,824 | ||||||
Income tax accrual
|
357 | 1,368 | ||||||
Accrued commissions
|
818 | 916 | ||||||
Other accrued expenses
|
694 | 813 | ||||||
Customer deposits
|
797 | 853 | ||||||
Total current liabilities
|
16,605 | 19,067 | ||||||
Deferred compensation
|
8,409 | 8,329 | ||||||
Income tax accrual
|
166 | 90 | ||||||
Other liabilities
|
412 | 360 | ||||||
Total long-term liabilities
|
8,987 | 8,779 | ||||||
Total liabilities
|
25,592 | 27,846 | ||||||
Shareholders’ equity
|
||||||||
Common stock, no par value, 20,000 shares authorized,
10,818
and 10,774
shares issued and outstanding on each date
|
18,667 | 17,852 | ||||||
Retained earnings
|
137,255 | 125,392 | ||||||
Accumulated other comprehensive income (loss)
|
139 | (335 | ) | |||||
Total shareholders’ equity
|
156,061 | 142,909 | ||||||
Total liabilities and shareholders’ equity
|
$ | 181,653 | $ | 170,755 |
2016
|
2015
|
2014
|
||||||||||
Net sales
|
$ | 246,999 | $ | 244,350 | $ | 228,293 | ||||||
Cost of sales
|
178,311 | 181,550 | 173,568 | |||||||||
Gross profit
|
68,688 | 62,800 | 54,725 | |||||||||
Selling and administrative expenses
|
44,426 | 43,752 | 42,222 | |||||||||
Operating income
|
24,262 | 19,048 | 12,503 | |||||||||
Other income (expense), net
|
197 | 350 | (35 | ) | ||||||||
Income before income taxes
|
24,459 | 19,398 | 12,468 | |||||||||
Income taxes
|
8,274 | 6,820 | 4,539 | |||||||||
Net income
|
$ | 16,185 | $ | 12,578 | $ | 7,929 | ||||||
Earnings per share:
|
||||||||||||
Basic
|
$ | 1.50 | $ | 1.17 | $ | 0.74 | ||||||
Diluted
|
$ | 1.49 | $ | 1.16 | $ | 0.74 | ||||||
Weighted average shares outstanding:
|
||||||||||||
Basic
|
10,779 | 10,736 | 10,722 | |||||||||
Diluted
|
10,807 | 10,771 | 10,752 | |||||||||
Cash dividends declared per share
|
$ | 0.40 | $ | 0.40 | $ | 0.40 |
2016
|
2015
|
2014
|
||||||||||
Net Income
|
$ | 16,185 | $ | 12,578 | $ | 7,929 | ||||||
Other comprehensive income (loss):
|
||||||||||||
Amortization of actuarial gain (loss)
|
751 | (687 | ) | (163 | ) | |||||||
Income tax effect on amortization
|
(277 | ) | 254 | 59 | ||||||||
Adjustments to net periodic benefit cost
|
474 | (433 | ) | (104 | ) | |||||||
Total Comprehensive Income
|
$ | 16,659 | $ | 12,145 | $ | 7,825 |
2016
|
2015
|
2014
|
||||||||||
Operating Activities:
|
||||||||||||
Net income
|
$ | 16,185 | $ | 12,578 | $ | 7,929 | ||||||
Adjustments to reconcile net income to net cash
provided by operating activities:
|
||||||||||||
Depreciation and amortization
|
2,946 | 2,599 | 2,491 | |||||||||
Loss / (gain) on disposal of assets
|
83 | (23 | ) | (8 | ) | |||||||
Deferred income tax expense
|
544 | (135 | ) | 340 | ||||||||
Non-cash restricted stock and performance awards
|
829 | 123 | 338 | |||||||||
Provision for doubtful accounts
|
(105 | ) | 928 | 456 | ||||||||
Changes in assets and liabilities
|
||||||||||||
Trade accounts receivable
|
4,174 | (3,780 | ) | (1,576 | ) | |||||||
Income tax recoverable
|
- | 682 | (682 | ) | ||||||||
Inventories
|
1,260 | 4,043 | 856 | |||||||||
Gain on life insurance policies
|
(799 | ) | (709 | ) | (147 | ) | ||||||
Prepaid expenses and other current assets
|
(207 | ) | (76 | ) | 30 | |||||||
Trade accounts payable
|
(1,273 | ) | 3,216 | (4,499 | ) | |||||||
Accrued salaries, wages and benefits
|
273 | 1,347 | 162 | |||||||||
Accrued income taxes
|
(1,011 | ) | 1,368 | (751 | ) | |||||||
Accrued commissions
|
(98 | ) | (18 | ) | (62 | ) | ||||||
Customer deposits
|
(56 | ) | 194 | 659 | ||||||||
Other accrued expenses
|
(119 | ) | 56 | (31 | ) | |||||||
Deferred compensation
|
358 | 317 | 88 | |||||||||
Other long-term liabilities
|
52 | 58 | 103 | |||||||||
Net cash provided by operating activities
|
23,036 | 22,768 | 5,696 | |||||||||
Investing Activities:
|
||||||||||||
Purchases of property, plant and equipment
|
(2,847 | ) | (2,994 | ) | (3,471 | ) | ||||||
Proceeds received on notes receivable
|
93 | 31 | 36 | |||||||||
Proceeds from sale of property and equipment
|
6 | 71 | 22 | |||||||||
Purchase of intangible
|
- | - | (125 | ) | ||||||||
Premiums paid on life insurance policies
|
(707 | ) | (789 | ) | (834 | ) | ||||||
Proceeds received on life insurance policies
|
- | - | 517 | |||||||||
Net cash used in investing activities
|
(3,455 | ) | (3,681 | ) | (3,855 | ) | ||||||
Financing Activities:
|
||||||||||||
Cash dividends paid
|
(4,322 | ) | (4,306 | ) | (4,301 | ) | ||||||
Net cash used in financing activities
|
(4,322 | ) | (4,306 | ) | (4,301 | ) | ||||||
Net increase (decrease) in cash and cash equivalents
|
15,259 | 14,781 | (2,460 | ) | ||||||||
Cash and cash equivalents at the beginning of year
|
38,663 | 23,882 | 26,342 | |||||||||
Cash and cash equivalents at the end of year
|
$ | 53,922 | $ | 38,663 | $ | 23,882 | ||||||
Supplemental schedule of cash flow information:
|
||||||||||||
Income taxes paid, net
|
$ | 8,837 | $ | 4,696 | $ | 5,534 | ||||||
Supplemental schedule of noncash investing activities:
|
||||||||||||
Increase in property and equipment through accrued purchases
|
$ | 85 | - | $ | 43 |
Accumulated
|
||||||||||||||||||||
Other |
Total
|
|||||||||||||||||||
Common Stock | Retained | Comprehensive | Shareholders' | |||||||||||||||||
Shares
|
Amount
|
Earnings
|
Income
|
Equity
|
||||||||||||||||
Balance at February 3, 2013
|
10,746 | $ | 17,360 | $ | 113,483 | $ | 202 | $ | 131,045 | |||||||||||
Net income
|
- | - | 7,929 | - | 7,929 | |||||||||||||||
Unrealized loss on defined benefit plan
, net of tax of $59
|
- | - | - | (104 | ) | (104 | ) | |||||||||||||
Cash dividends paid and accrued ($0.40 per share)
|
- | - | (4,301 | ) | - | (4,301 | ) | |||||||||||||
Restricted stock grants, net of forfeitures
|
7 | (8 | ) | 9 | - | - | ||||||||||||||
Restricted stock compensation cost
|
- | 233 | - | - | 233 | |||||||||||||||
Balance at February 2, 2014
|
10,753 | $ | 17,585 | $ | 117,120 | $ | 98 | $ | 134,803 | |||||||||||
Net income
|
- | - | 12,578 | - | 12,578 | |||||||||||||||
Unrealized loss on defined benefit plan
, net of tax of $254
|
- | - | - | (433 | ) | (433 | ) | |||||||||||||
Cash dividends paid and accrued ($0.40 per share)
|
- | - | (4,306 | ) | - | (4,306 | ) | |||||||||||||
Restricted stock grants, net of forfeitures
|
21 | 51 | - | - | 51 | |||||||||||||||
Restricted stock compensation cost
|
- | 216 | - | - | 216 | |||||||||||||||
Balance at February 1, 2015
|
10,774 | $ | 17,852 | $ | 125,392 | $ | (335 | ) | $ | 142,909 | ||||||||||
Net income
|
- | - | 16,185 | - | 16,185 | |||||||||||||||
Unrealized loss on defined benefit plan , net of tax of $(277) | - | - | - | 474 | 474 | |||||||||||||||
Cash dividends paid and accrued ($0.40 per share) | - | - | (4,322 | ) | - | (4,322 | ) | |||||||||||||
Restricted stock grants, net of forfeitures
|
44 | 563 | - | - | 563 | |||||||||||||||
Restricted stock compensation cost
|
- | 252 | - | - | 252 | |||||||||||||||
Balance at January 31, 2016
|
10,818 | $ | 18,667 | $ | 137,255 | $ | 139 | $ | 156,061 |
|
§
|
Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date.
|
|
§
|
Level 2 Inputs: Observable inputs other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability.
|
|
§
|
Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date.
|
|
§
|
a significant adverse change in the economic or business climate either within the furniture industry or the national or global economy;
|
|
§
|
significant changes in demand for our products;
|
|
§
|
loss of key personnel; and
|
|
§
|
the likelihood that a reporting unit or significant portion of a reporting unit will be sold or otherwise subject to disposal.
|
|
§
|
the cost of imported products purchased for resale;
|
|
§
|
raw materials and supplies used in our domestically manufactured products;
|
|
§
|
labor and overhead costs associated with our domestically manufactured products;
|
|
§
|
the cost of our foreign import operations;
|
|
§
|
charges associated with our inventory reserves;
|
|
§
|
warehousing and certain shipping and handling costs; and
|
|
§
|
all other costs required to be classified as cost of sales.
|
|
§
|
the cost of our marketing and merchandising efforts, including showroom expenses;
|
|
§
|
sales and design commissions;
|
|
§
|
the costs of administrative support functions including, executive management, information technology, human resources and finance; and
|
|
§
|
all other costs required to be classified as selling and administrative expenses.
|
|
§
|
2016 fiscal year and comparable terminology mean the fiscal year that began February 2, 2015 and ended January 31, 2016;
|
|
§
|
2015 fiscal year and comparable terminology mean the fiscal year that began February 3, 2014 and ended February 1, 2015; and
|
|
§
|
2014 fiscal year and comparable terminology mean the fiscal year that began February 4, 2013 and ended February 2, 2014.
|
Fifty-Two
|
Fifty-Two
|
Fifty-Two
|
||||||||||
Weeks Ended
|
Weeks Ended
|
Weeks Ended
|
||||||||||
January 31,
|
February 1,
|
February 2,
|
||||||||||
2016
|
2015
|
2014
|
||||||||||
Balance at beginning of year
|
$ | 1,329 | $ | 1,243 | $ | 1,249 | ||||||
Non-cash charges to cost and expenses
|
(105 | ) | 928 | 456 | ||||||||
Less uncollectible receivables written off, net of recoveries
|
(192 | ) | (842 | ) | (462 | ) | ||||||
Balance at end of year
|
$ | 1,032 | $ | 1,329 | $ | 1,243 |
January 31,
|
February 1,
|
|||||||
2016
|
2015
|
|||||||
Trade accounts receivable
|
$ | 25,520 | $ | 25,322 | ||||
Receivable from factor
|
3,688 | 8,252 | ||||||
Allowance for doubtful accounts
|
(1,032 | ) | (1,329 | ) | ||||
Accounts receivable
|
$ | 28,176 | $ | 32,245 |
January 31,
|
February 1,
|
|||||||
2016
|
2015
|
|||||||
Finished furniture
|
$ | 55,120 | $ | 54,896 | ||||
Furniture in process
|
727 | 615 | ||||||
Materials and supplies
|
7,994 | 9,131 | ||||||
Inventories at FIFO
|
63,841 | 64,642 | ||||||
Reduction to LIFO basis
|
(20,128 | ) | (19,669 | ) | ||||
Inventories
|
$ | 43,713 | $ | 44,973 |
Depreciable Lives
|
January 31,
|
February 1,
|
|||||||||
(In years)
|
2016
|
2015
|
|||||||||
Buildings and land improvements
|
15 - 30 | $ | 22,777 | $ | 22,162 | ||||||
Computer software and hardware
|
3 - 10 | 16,137 | 18,444 | ||||||||
Machinery and equipment
|
10 | 4,864 | 4,757 | ||||||||
Leasehold improvements
|
Term of lease
|
2,817 | 2,840 | ||||||||
Furniture and fixtures
|
3 - 8 | 1,453 | 2,240 | ||||||||
Other
|
5 | 546 | 628 | ||||||||
Total depreciable property at cost
|
48,594 | 51,070 | |||||||||
Less accumulated depreciation
|
27,739 | 32,790 | |||||||||
Total depreciable property, net
|
20,855 | 18,280 | |||||||||
Land
|
1,067 | 1,067 | |||||||||
Construction-in-progress
|
846 | 3,477 | |||||||||
Property, plant and equipment, net
|
$ | 22,768 | $ | 22,824 |
Fifty-Two Weeks
|
Fifty-Two Weeks
|
Fifty-Two Weeks
|
||||||||||
Ended
|
Ended
|
Ended
|
||||||||||
January 31,
|
February 1,
|
February 2,
|
||||||||||
2016
|
2015
|
2014
|
||||||||||
Balance beginning of year
|
$ | 2,726 | $ | 2,550 | $ | 3,954 | ||||||
Purchases
|
4,113 | 606 | 173 | |||||||||
Amortization expense
|
(777 | ) | (430 | ) | (311 | ) | ||||||
Disposals
|
- | - | (1,266 | ) | ||||||||
Balance end of year
|
$ | 6,062 | $ | 2,726 | $ | 2,550 |
January 31,
|
February 1,
|
|||||||||
Segment
|
2016
|
2015
|
||||||||
Non-amortizable Intangible Assets
|
||||||||||
Trademarks and trade names - Bradington-Young
|
Upholstery
|
$ | 861 | $ | 861 | |||||
Trademarks and trade names - Sam Moore
|
Upholstery
|
396 | 396 | |||||||
URL- Homeware.com
|
All other
|
125 | 125 | |||||||
Total Non-amortizable Intangible Assets
|
1,382 | 1,382 |
Fair value at January 31, 2016
|
Fair value at February 1, 2015
|
|||||||||||||||||||||||||||||||
Description
|
Level 1
|
Level 2
|
Level 3
|
Total
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||||||||||||
|
(In thousands)
|
|||||||||||||||||||||||||||||||
Assets measured at fair value
|
|
|||||||||||||||||||||||||||||||
Company-owned life insurance
|
$ | - | $ | 21,888 | $ | $ | 21,888 | $ | - | $ | 20,373 | $ | - | $ | 20,373 | |||||||||||||||||
Mortgage note receivable
|
- | 1,575 | 1,575 | - | - | 1,575 | 1,575 |
|
§
|
A $15.0 million unsecured revolving credit facility, up to $3.0 million of which could have been used to support letters of credit;
|
|
§
|
A floating interest rate, adjusted monthly, based on USD LIBOR, plus an applicable margin based on the ratio of our funded debt to our EBITDA (each as defined in the agreement);
|
|
§
|
A quarterly unused commitment fee of 0.20%; and
|
|
§
|
No pre-payment penalty.
|
|
§
|
Maintain a tangible net worth of at least $95.0 million;
|
|
§
|
Limit capital expenditures to no more than $15.0 million during any fiscal year; and
|
|
§
|
Maintain a ratio of funded debt to EBITDA not exceeding 2.0:1.0.
|
Fifty-Two
|
Fifty-Two
|
|||||||
Weeks Ended
|
Weeks Ended
|
|||||||
January 31,
|
February 1,
|
|||||||
2016
|
2015
|
|||||||
Change in benefit obligation:
|
||||||||
Beginning projected benefit obligation
|
$ | 8,385 | $ | 7,662 | ||||
Service cost
|
406 | 102 | ||||||
Interest cost
|
289 | 339 | ||||||
Benefits paid
|
(354 | ) | (354 | ) | ||||
Actuarial (gain) loss
|
(573 | ) | 636 | |||||
Ending projected benefit obligation (funded status)
|
$ | 8,153 | $ | 8,385 | ||||
Accumulated benefit obligation
|
$ | 7,446 | $ | 7,373 | ||||
Discount rate used to value the ending benefit obligations:
|
4.25 | % | 3.5 | % | ||||
Amount recognized in the consolidated balance sheets:
|
||||||||
Current liabilities (Accrued salaries, wages and benefits line)
|
$ | 354 | $ | 354 | ||||
Non-current liabilities (Deferred compensation line*)
|
7,799 | 8,031 | ||||||
Total
|
$ | 8,153 | $ | 8,385 | ||||
Fifty-Two
|
Fifty-Two
|
Fifty-Two
|
||||||||||
Weeks Ended
|
Weeks Ended
|
Weeks Ended
|
||||||||||
January 31,
|
February 1,
|
February 2,
|
||||||||||
2016 | 2015 | 2014 | ||||||||||
Net periodic benefit cost
|
||||||||||||
Service cost
|
$ | 406 | $ | 102 | $ | 256 | ||||||
Interest cost
|
289 | 339 | 292 | |||||||||
Net loss (gain)
|
178 | (51 | ) | (106 | ) | |||||||
Net periodic benefit cost
|
$ | 873 | $ | 390 | $ | 442 | ||||||
Other changes recognized in accumulated other comprehensive income
|
||||||||||||
Net (gain) loss arising during period
|
(574 | ) | 636 | 57 | ||||||||
(Loss) gain
|
(178 | ) | 51 | 106 | ||||||||
Total recognized in other comprehensive (income) loss
|
(752 | ) | 687 | 163 | ||||||||
Total recognized in net periodic benefit cost and
accumulated other comprehensive income
|
$ | 121 | $ | 1,077 | $ | 605 | ||||||
Assumptions used to determine net periodic benefit cost:
|
||||||||||||
Discount rate (Moody's Composite Bond Rate)
|
3.5 | % | 4.5 | % | 4.0 | % | ||||||
Increase in future compensation levels
|
4.0 | % | 4.0 | % | 4.0 | % |
January 31,
|
February 1,
|
|||||||
2016
|
2015
|
|||||||
Performance grants
|
||||||||
Fiscal 2013 grant (Current liabilities, Accrued wages, salaries and benefits)
|
$ | - | $ | 689 | ||||
Fiscal 2014 grant (Current liabilities, Accrued wages, salaries and benefits)
|
619 | 195 | ||||||
Fiscal 2015 grant (Non-current liabilities, Deferred compensation)
|
429 | 86 | ||||||
Fiscal 2016 grant (Non-current liabilities, Deferred compensation)
|
129 | - | ||||||
Total performance grants accrued
|
$ | 1,177 | $ | 970 |
Whole
|
Grant-Date
|
Aggregate
|
Compensation
|
Grant-Date Fair Value
|
||||||||||||||||
Number of
|
Fair Value
|
Grant-Date
|
Expense
|
Unrecognized At
|
||||||||||||||||
Shares
|
Per Share
|
Fair Value
|
Recognized
|
January 31, 2016
|
||||||||||||||||
Previous Awards (vested)
|
$ | 626 | ||||||||||||||||||
Restricted shares Issued on June 7, 2013
|
6,876 | $ | 15.96 | 110 | 80 | 10 | ||||||||||||||
Forfeited
|
(1,269 | ) | $ | 15.96 | (20 | ) | - | - | ||||||||||||
Balance
|
5,607 | 90 | 80 | 10 | ||||||||||||||||
Restricted shares Issued on June 4, 2014
|
1,624 | $ | 13.86 | 23 | 13 | 10 | ||||||||||||||
Restricted shares Issued on June 10, 2014
|
8,385 | $ | 15.96 | 133 | 61 | 49 | ||||||||||||||
Forfeited
|
(1,434 | ) | $ | 15.96 | (23 | ) | - | - | ||||||||||||
Balance
|
6,951 | 110 | 61 | 49 | ||||||||||||||||
Restricted shares Issued on April 6, 2015
|
5,741 | $ | 21.44 | 123 | 34 | 89 | ||||||||||||||
Restricted shares Issued on June 9, 2015
|
4,302 | $ | 26.09 | 112 | 75 | 37 | ||||||||||||||
Restricted shares Issued on July 21, 2015
|
694 | $ | 25.72 | 18 | 11 | 7 | ||||||||||||||
Awards outstanding at January 31, 2016:
|
24,919 | $ | 476 | $ | 274 | $ | 202 |
Whole
|
Grant-Date
|
Aggregate
|
Compensation
|
Grant-Date Fair Value
|
||||||||||||||||
Number of
|
Fair Value
|
Grant-Date
|
Expense
|
Unrecognized At
|
||||||||||||||||
Units
|
Per Unit
|
Fair Value
|
Recognized
|
January 31, 2016
|
||||||||||||||||
Previous Awards (vested)
|
$ | 305 | ||||||||||||||||||
RSUs Awarded on April 15, 2014
|
7,322 | $ | 12.91 | 95 | 63 | 32 | ||||||||||||||
RSUs Awarded on April 6, 2015
|
5,518 | $ | 17.52 | 97 | 27 | 70 | ||||||||||||||
Awards outstanding at January 31, 2016:
|
12,840 | $ | 192 | $ | 90 | $ | 102 |
January 31,
|
February 1,
|
February 2,
|
||||||||||
2016
|
2015
|
2014
|
||||||||||
Restricted shares
|
24,919 | 27,458 | 28,614 | |||||||||
Restricted stock units
|
12,840 | 24,546 | 32,353 | |||||||||
37,759 | 52,004 | 60,967 |
Fifty-Two
|
Fifty-Two
|
Fifty-Two
|
||||||||||
Weeks Ended
|
Weeks Ended
|
Weeks Ended
|
||||||||||
January 31,
|
February 1,
|
February 2,
|
||||||||||
2016
|
2015
|
2014
|
||||||||||
Net income
|
$ | 16,185 | $ | 12,578 | $ | 7,929 | ||||||
Less: Dividends on unvested restricted shares
|
11 | 11 | 12 | |||||||||
Net earnings allocated to unvested restricted stock
|
40 | 33 | 22 | |||||||||
Earnings available for common shareholders
|
$ | 16,134 | $ | 12,534 | $ | 7,895 | ||||||
Weighted average shares outstanding for basic
earnings per share
|
10,779 | 10,736 | 10,722 | |||||||||
Dilutive effect of unvested restricted stock awards
|
28 | 35 | 30 | |||||||||
Weighted average shares outstanding for diluted
earnings per share
|
10,807 | 10,771 | 10,752 | |||||||||
Basic earnings per share
|
$ | 1.50 | $ | 1.17 | $ | 0.74 | ||||||
Diluted earnings per share
|
$ | 1.49 | $ | 1.16 | $ | 0.74 |
Fifty-Two
|
Fifty-Two
|
Fifty-Two
|
||||||||||
Weeks Ended
|
Weeks Ended
|
Weeks Ended
|
||||||||||
January 31,
|
February 1,
|
February 2,
|
||||||||||
2016
|
2015
|
2014
|
||||||||||
Current expense
|
||||||||||||
Federal
|
$ |
7,196
|
$ | 6,024 | $ | 3,755 | ||||||
Foreign
|
41 | 40 | 41 | |||||||||
State
|
771 | 635 | 403 | |||||||||
Total current expense
|
8,008
|
6,699 | 4,199 | |||||||||
Deferred taxes
|
||||||||||||
Federal
|
244
|
97 | 214 | |||||||||
State
|
22 | 24 | 126 | |||||||||
Total deferred taxes
|
266
|
121 | 340 | |||||||||
Income tax expense
|
$ | 8,274 | $ | 6,820 | $ | 4,539 |
Fifty-Two
|
Fifty-Two
|
Fifty-Two
|
||||||||||
Weeks Ended
|
Weeks Ended
|
Weeks Ended
|
||||||||||
January 31,
|
February 1,
|
February 2,
|
||||||||||
2016
|
2015
|
2014
|
||||||||||
Income taxes at statutory rate
|
35.0 | % | 35.0 | % | 34.0 | % | ||||||
Increase (decrease) in tax rate resulting from:
|
||||||||||||
State taxes, net of federal benefit
|
2.1 | 2.0 | 2.1 | |||||||||
Domestic Production Deduction
|
(0.6 | ) | - | - | ||||||||
Officer's life insurance
|
(1.1 | ) | (1.2 | ) | (1.8 | ) | ||||||
Other, net
|
(1.6 | ) | (0.6 | ) | 2.1 | |||||||
Effective income tax rate
|
33.8 | % | 35.2 | % | 36.4 | % |
January 31,
|
February 1,
|
|||||||
2016
|
2015
|
|||||||
Assets
|
||||||||
Deferred compensation
|
$ | 4,345 | $ | 4,120 | ||||
Allowance for bad debts
|
380 | 492 | ||||||
State income taxes
|
43 | 8 | ||||||
Property, plant and equipment
|
- | 405 | ||||||
Intangible assets
|
703 | 524 | ||||||
Charitable contribution carryforward
|
- | 246 | ||||||
Inventories
|
158 | - | ||||||
Other
|
378 | 404 | ||||||
Total deferred tax assets
|
6,007 | 6,199 | ||||||
Valuation allowance
|
- | - | ||||||
6,007 | 6,199 | |||||||
Liabilities
|
||||||||
Employee benefits
|
256 | 362 | ||||||
Inventories
|
- | 143 | ||||||
Property, plant and equipment
|
321 | - | ||||||
Total deferred tax liabilities
|
577 | 505 | ||||||
Net deferred tax asset without AOCI
|
5,430 | 5,694 | ||||||
Deferred tax asset (liability) in AOCI
|
(80 | ) | 198 | |||||
Total net deferred tax asset
|
$ | 5,350 | $ | 5,892 |
January 31,
|
February 1,
|
|||||||
2016
|
2015
|
|||||||
Balance, beginning of year
|
$ | 482 | $ | 359 | ||||
Increase related to prior year tax positions
|
- | 75 | ||||||
Decrease related to prior year tax positions
|
(203 | ) | - | |||||
Increase related to current year tax positions
|
- | 48 | ||||||
Balance, end of year
|
$ | 279 | $ | 482 |
Fifty-Two Weeks Ended
|
Fifty-Two Weeks Ended
|
Fifty-Two Weeks Ended
|
||||||||||||||||||||||
January 31, 2016
|
February 1, 2015
|
February 2, 2014
|
||||||||||||||||||||||
% Net
|
% Net
|
% Net
|
||||||||||||||||||||||
Net Sales
|
Sales
|
Sales
|
Sales
|
|||||||||||||||||||||
Casegoods
|
$ | 155,106 | 62.8 | % | $ | 153,882 | 63.0 | % | $ | 143,802 | 63.0 | % | ||||||||||||
Upholstery
|
84,090 | 34.0 | % | 86,362 | 35.3 | % | 83,027 | 36.4 | % | |||||||||||||||
All other
|
8,033 | 3.3 | % | 5,025 | 2.1 | % | 1,487 | 0.7 | % | |||||||||||||||
Intercompany eliminations
|
(230 | ) | (919 | ) | (23 | ) | ||||||||||||||||||
Consolidated
|
$ | 246,999 | 100.0 | % | $ | 244,350 | 100.0 | % | $ | 228,293 | 100.0 | % | ||||||||||||
Gross Profit
|
||||||||||||||||||||||||
Casegoods
|
$ | 47,558 | 30.7 | % | $ | 44,868 | 29.2 | % | $ | 38,762 | 27.0 | % | ||||||||||||
Upholstery
|
18,852 | 22.4 | % | 16,489 | 19.1 | % | 15,393 | 18.5 | % | |||||||||||||||
All other
|
2,252 | 28.0 | % | 1,465 | 29.2 | % | 588 | 39.5 | % | |||||||||||||||
Intercompany eliminations
|
26 | (22 | ) | (18 | ) | |||||||||||||||||||
Consolidated
|
$ | 68,688 | 27.8 | % | $ | 62,800 | 25.7 | % | $ | 54,725 | 24.0 | % | ||||||||||||
Operating Income
|
||||||||||||||||||||||||
Casegoods
|
$ | 18,509 | 11.9 | % | $ | 17,286 | 11.2 | % | $ | 12,150 | 8.4 | % | ||||||||||||
Upholstery
|
6,020 | 7.2 | % | 2,871 | 3.3 | % | 1,913 | 2.3 | % | |||||||||||||||
All other
|
(293 | ) | -3.6 | % | (1,087 | ) | -21.6 | % | (1,542 | ) | -103.7 | % | ||||||||||||
Intercompany eliminations
|
26 | (22 | ) | (18 | ) | |||||||||||||||||||
Consolidated
|
$ | 24,262 | 9.8 | % | $ | 19,048 | 7.8 | % | $ | 12,503 | 5.5 | % | ||||||||||||
Capital Expenditures
|
||||||||||||||||||||||||
Casegoods
|
$ | 2,219 | $ | 2,124 | $ | 2,489 | ||||||||||||||||||
Upholstery
|
621 | 830 | 982 | |||||||||||||||||||||
All other
|
7 | 40 | - | |||||||||||||||||||||
Consolidated
|
$ | 2,847 | $ | 2,994 | $ | 3,471 | ||||||||||||||||||
Depreciation
& Amortization
|
||||||||||||||||||||||||
Casegoods
|
$ | 1,808 | $ | 1,591 | $ | 1,551 | ||||||||||||||||||
Upholstery
|
1,126 | 1,005 | 940 | |||||||||||||||||||||
All other
|
12 | 3 | - | |||||||||||||||||||||
Consolidated
|
$ | 2,946 | $ | 2,599 | $ | 2,491 |
As of January 31,
|
As of February 1,
|
|||||||||||||||||||||||
2016 |
%Total
|
2015 |
%Total
|
|||||||||||||||||||||
Total Assets
|
Assets
|
Assets
|
||||||||||||||||||||||
Casegoods
|
$ | 146,794 | 80.8 | % | $ | 135,403 | 79.3 | % | ||||||||||||||||
Upholstery
|
34,010 | 18.7 | % | 33,788 | 19.8 | % | ||||||||||||||||||
All other
|
863 | 0.5 | % | 1,605 | 0.9 | % | ||||||||||||||||||
Intercompany eliminations
|
(14 | ) | (41 | ) | ||||||||||||||||||||
Consolidated
|
$ | 181,653 | 100.0 | % | $ | 170,755 | 100.0 | % |
Fiscal Quarter
|
||||||||||||||||
First
|
Second
|
Third
|
Fourth
|
|||||||||||||
2016
|
||||||||||||||||
Net sales
|
$ | 60,956 | $ | 60,140 | $ | 65,338 | $ | 60,565 | ||||||||
Cost of sales
|
44,581 | 44,047 | 47,173 | 42,510 | ||||||||||||
Gross profit
|
16,375 | 16,093 | 18,165 | 18,055 | ||||||||||||
Selling and administrative expenses
|
11,133 | 10,234 | 11,525 | 11,534 | ||||||||||||
Net income
|
3,472 | 3,938 | 4,630 | 4,145 | ||||||||||||
Basic earnings per share
|
$ | 0.32 | $ | 0.36 | $ | 0.43 | $ | 0.38 | ||||||||
Diluted earnings per share
|
$ | 0.32 | $ | 0.36 | $ | 0.43 | $ | 0.38 |
2015
|
||||||||||||||||
Net sales
|
$ | 61,396 | $ | 54,883 | $ | 63,168 | $ | 64,903 | ||||||||
Cost of sales
|
45,786 | 41,226 | 47,137 | 47,401 | ||||||||||||
Gross profit
|
15,610 | 13,657 | 16,031 | 17,502 | ||||||||||||
Selling and administrative expenses
|
11,367 | 10,243 | 11,148 | 10,994 | ||||||||||||
Net income
|
2,804 | 2,272 | 3,204 | 4,298 | ||||||||||||
Basic earnings per share
|
$ | 0.26 | $ | 0.21 | $ | 0.30 | $ | 0.40 | ||||||||
Diluted earnings per share
|
$ | 0.26 | $ | 0.21 | $ | 0.30 | $ | 0.40 |
Fair value estimates of assets acquired and liabilities assumed
|
||||
Purchase price consideration
|
||||
Cash paid for assets acquired
|
$ | 85,000 | ||
Value of shares issued for assets acquired
|
15,000 | |||
Value of shares issued for excess net working capital
|
5,267 | |||
Cash paid for net working capital adjustment
|
995 | |||
Total purchase price
|
$ | 106,262 | ||
Accounts receivable
|
$ | 45,360 | ||
Inventory
|
37,607 | |||
Prepaid expenses and other current assets
|
2,045 | |||
Property and equipment
|
5,814 | |||
Intangible assets
|
28,800 | |||
Goodwill
|
21,023 | |||
Accounts payable and accrued expenses
|
(18,948 | ) | ||
Accrued expenses
|
(6,783 | ) | ||
Pension plan and deferred compensation liabilities
|
(8,656 | ) | ||
Total purchase price
|
$ | 106,262 |
Date: April 15, 2016
|
/
s/Paul B. Toms, Jr.
Paul B. Toms, Jr.
Chairman and Chief Executive Officer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date: April 15, 2016
|
By:
|
/s/ Paul B. Toms, Jr.
Paul B. Toms, Jr.
Chairman and Chief Executive Officer
|
By:
|
/s/ Paul A. Huckfeldt
Paul A. Huckfeldt
Senior Vice President – Finance and Accounting and
Chief Financial Officer
|