ASTRO MED INC /NEW/, 10-Q filed on 12/9/2013
Quarterly Report
Document and Entity Information
9 Months Ended
Nov. 2, 2013
Dec. 9, 2013
Document And Entity Information [Abstract]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Nov. 02, 2013 
 
Document Fiscal Year Focus
2014 
 
Document Fiscal Period Focus
Q3 
 
Entity Registrant Name
ASTRO MED INC /NEW/ 
 
Entity Central Index Key
0000008146 
 
Current Fiscal Year End Date
--01-31 
 
Entity Filer Category
Smaller Reporting Company 
 
Entity Common Stock, Shares Outstanding
 
7,512,803 
Condensed Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Nov. 2, 2013
Jan. 31, 2013
CURRENT ASSETS
 
 
Cash and Cash Equivalents
$ 12,974 
$ 30,999 
Securities Available for Sale
19,654 
8,509 
Accounts Receivable, net
10,970 
9,376 
Inventories
11,916 
11,179 
Deferred Tax Assets
1,825 
1,866 
Line of Credit Receivable
288 
300 
Note Receivable
250 
250 
Restricted Cash
1,800 
1,800 
Asset Held for Sale
2,016 
2,016 
Prepaid Expenses and Other Current Assets
1,682 
696 
Current Assets of Discontinued Operations
5,208 
3,131 
Total Current Assets
68,583 
70,122 
PROPERTY, PLANT AND EQUIPMENT
34,768 
33,886 
Less Accumulated Depreciation
(27,045)
(26,098)
Property, Plant and Equipment, net
7,723 
7,788 
OTHER ASSETS
 
 
Goodwill
795 
795 
Note Receivable
569 
756 
Other
98 
96 
Total Other Assets
1,462 
1,647 
TOTAL ASSETS
77,768 
79,557 
CURRENT LIABILITIES
 
 
Accounts Payable
2,750 
1,938 
Accrued Compensation
2,649 
3,176 
Other Accrued Expenses
3,641 
3,164 
Deferred Revenue
499 
271 
Income Taxes Payable
21 
4,169 
Current Liabilities of Discontinued Operations
2,139 
1,501 
Total Current Liabilities
11,699 
14,219 
Deferred Tax Liabilities
178 
212 
Other Long Term Liabilities
1,336 
1,289 
TOTAL LIABILITIES
13,213 
15,720 
SHAREHOLDERS' EQUITY
 
 
Common Stock, $0.05 Par Value, Authorized 13,000,000 shares; Issued 9,228,305 shares and 9,031,756 shares at November 2, 2013 and January 31, 2013, respectively
461 
452 
Additional Paid-in Capital
40,429 
38,786 
Retained Earnings
35,878 
36,092 
Treasury Stock, at Cost, 1,721,098 shares and 1,663,214 shares at November 2, 2013 and January 31, 2013, respectively
(12,348)
(11,666)
Accumulated Other Comprehensive Income
135 
173 
TOTAL SHAREHOLDERS' EQUITY
64,555 
63,837 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$ 77,768 
$ 79,557 
Condensed Consolidated Balance Sheets (Parenthetical) (USD $)
Nov. 2, 2013
Jan. 31, 2013
Statement Of Financial Position [Abstract]
 
 
Common Stock, Par Value
$ 0.05 
$ 0.05 
Common Stock, Shares Authorized
13,000,000 
13,000,000 
Common Stock, Shares Issued
9,228,305 
9,031,756 
Treasury Stock, Shares
1,721,098 
1,663,214 
Condensed Consolidated Statements of Operations (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Nov. 2, 2013
Oct. 27, 2012
Nov. 2, 2013
Oct. 27, 2012
Income Statement [Abstract]
 
 
 
 
Net Sales
$ 18,179 
$ 16,039 
$ 50,858 
$ 45,038 
Cost of Sales
10,816 
9,555 
30,796 
27,497 
Product Replacement Related Costs
 
 
672 
 
Gross Profit
7,363 
6,484 
19,390 
17,541 
Operating Expenses:
 
 
 
 
Selling and Marketing
3,727 
3,199 
10,680 
9,242 
Research and Development
1,230 
897 
3,617 
2,766 
General and Administrative
1,223 
1,187 
3,745 
3,339 
Operating Expenses
6,180 
5,283 
18,042 
15,347 
Operating Income
1,183 
1,201 
1,348 
2,194 
Other Income (Expense), net
(2)
47 
(64)
(56)
Income from Continuing Operations before Income Taxes
1,181 
1,248 
1,284 
2,138 
Income Tax Provision for Continuing Operations
436 
499 
446 
542 
Income from Continuing Operations
745 
749 
838 
1,596 
Income from Discontinued Operations, net of tax benefit of $89 and tax expense of $333, for the three and nine months ended November 2, 2013, respectively and tax benefit of $2 and tax expense of $928 for the three and nine months ended October 27, 2012, respectively
363 
558 
517 
1,535 
Net Income
$ 1,108 
$ 1,307 
$ 1,355 
$ 3,131 
Net Income per Common Share-Basic:
 
 
 
 
From Continuing Operations
$ 0.10 
$ 0.10 
$ 0.11 
$ 0.22 
From Discontinued Operations
$ 0.05 
$ 0.08 
$ 0.07 
$ 0.20 
Net Income Per Common Share-Basic
$ 0.15 
$ 0.18 
$ 0.18 
$ 0.42 
Net Income per Common Share-Diluted:
 
 
 
 
From Continuing Operations
$ 0.10 
$ 0.10 
$ 0.11 
$ 0.21 
From Discontinued Operations
$ 0.04 
$ 0.08 
$ 0.07 
$ 0.21 
Net Income Per Common Share-Diluted
$ 0.14 
$ 0.18 
$ 0.18 
$ 0.42 
Weighted Average Number of Common Shares Outstanding:
 
 
 
 
Basic
7,489,690 
7,379,094 
7,449,251 
7,414,273 
Diluted
7,715,820 
7,461,958 
7,650,014 
7,486,588 
Dividends Declared Per Common Share
$ 0.07 
$ 0.07 
$ 0.21 
$ 0.21 
Condensed Consolidated Statements of Operations (Parenthetical) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Nov. 2, 2013
Oct. 27, 2012
Nov. 2, 2013
Oct. 27, 2012
Income Statement [Abstract]
 
 
 
 
Income tax expense (benefit) of discontinued operations
$ (89)
$ (2)
$ 333 
$ 928 
Condensed Consolidated Statements of Comprehensive Income (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Nov. 2, 2013
Oct. 27, 2012
Nov. 2, 2013
Oct. 27, 2012
Statement Of Income And Comprehensive Income [Abstract]
 
 
 
 
Net Income
$ 1,108 
$ 1,307 
$ 1,355 
$ 3,131 
Other Comprehensive Income (Loss), Net of Taxes and Reclassification Adjustments:
 
 
 
 
Foreign Currency Translation Adjustments
137 
185 
(56)
(66)
Unrealized Holding Gain (Loss) Arising During the Period
14 
(2)
18 
(9)
Net Other Comprehensive Income (Loss)
151 
183 
(38)
(75)
Comprehensive Income
$ 1,259 
$ 1,490 
$ 1,317 
$ 3,056 
Condensed Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Nov. 2, 2013
Oct. 27, 2012
Cash Flows from Operating Activities:
 
 
Net Income
$ 1,355 
$ 3,131 
Adjustments to Reconcile Net Income to Net Cash Provided (Used) by Operating Activities:
 
 
Depreciation and Amortization
951 
993 
Share-Based Compensation
406 
305 
Deferred Income Tax Provision
192 
72 
Changes in Assets and Liabilities:
 
 
Accounts Receivable
(3,368)
(4)
Inventories
(1,039)
(359)
Income Taxes
(4,940)
174 
Accounts Payable and Accrued Expenses
1,087 
(1,081)
Other
362 
(200)
Net Cash Provided (Used) by Operating Activities
(4,994)
3,031 
Cash Flows from Investing Activities:
 
 
Proceeds from Sales/Maturities of Securities Available for Sale
7,940 
14,965 
Purchases of Securities Available for Sale
(19,056)
(11,816)
Line of Credit Issuance
 
(300)
Additions to Property, Plant and Equipment
(910)
(527)
Net Cash Provided (Used) by Investing Activities
(12,026)
2,322 
Cash Flows from Financing Activities:
 
 
Proceeds from Common Shares Issued Under Employee Benefit Plans and Employee Stock Option Plans, Net of Payment of Minimum Tax Withholdings
564 
61 
Purchase of Treasury Stock
 
(770)
Dividends Paid
(1,569)
(1,559)
Net Cash Used in Financing Activities
(1,005)
(2,268)
Net Increase (Decrease) in Cash and Cash Equivalents
(18,025)
3,085 
Cash and Cash Equivalents, Beginning of Period
30,999 
11,704 
Cash and Cash Equivalents, End of Period
12,974 
14,789 
Supplemental Disclosures of Cash Flow Information:
 
 
Cash Paid During the Period for Income Taxes, Net of Refunds
$ 4,881 
$ 1,354 
Overview
Overview

(1) Overview

Headquartered in West Warwick, Rhode Island, Astro-Med Inc. designs, develops, manufactures and distributes a broad range of specialty printers and data acquisition and analysis systems. Our products are distributed through our own sales force and authorized dealers in the United States. We also sell to customers outside of the United States primarily through our branch offices in Canada and Europe as well as with independent dealers and representatives. Astro-Med, Inc. products are sold under the brand names Astro-Med ® Test & Measurement and QuickLabel ® Systems and are employed around the world in a wide range of aerospace, automotive, communications, chemical, food and beverage, military, industrial, and packaging applications.

Unless otherwise indicated, references to “Astro-Med,” the “Company,” “we,” “our,” and “us” in this Quarterly Report on Form 10-Q refer to Astro-Med, Inc. and its consolidated subsidiaries.

Basis of Presentation
Basis of Presentation

(2) Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared by Astro-Med pursuant to the rules and regulations of the Securities and Exchange Commission, and reflect all adjustments consisting of normal recurring adjustments which, in the opinion of management, are necessary for a fair presentation of the results of the interim periods included herein. These financial statements do not include all disclosures associated with annual financial statements and, accordingly, should be read in conjunction with footnotes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2013.

On January 31, 2013, we completed the sale of substantially all of the assets of our Grass Technologies Product Group. Consequently, we have classified the results of operations of the Grass Technologies Product Group as discontinued operations for all periods presented. Refer to Note 14, “Discontinued Operations,” for further discussion.

Results of operations for the interim periods presented herein are not necessarily indicative of the results that may be expected for the full year.

The presentation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported and disclosed in the condensed consolidated financial statements and accompanying notes. Some of the more significant estimates relate to the allowances for doubtful accounts and credits, inventory valuation, impairment of long-lived assets and goodwill, income taxes, share-based compensation, accrued expenses and warranty reserves. Management’s estimates are based on the facts and circumstances available at the time estimates are made, past historical experience, risk of loss, general economic conditions and trends, and management’s assessments of the probable future outcome of these matters. Consequently, actual results could differ from those estimates.

Certain amounts in prior year’s financial statements have been reclassified to conform to the current year’s presentation.

Principles of Consolidation
Principles of Consolidation

(3) Principles of Consolidation

The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions are eliminated in consolidation.

Net Income Per Common Share
Net Income Per Common Share

(4) Net Income Per Common Share

Basic net income per share is calculated by dividing net income by the weighted average number of shares outstanding during the period. Diluted net income per share is calculated by dividing net income by the weighted average number of shares and, if dilutive, common equivalent shares for stock options, restricted stock awards and restricted stock units outstanding during the period. A reconciliation of the shares used in calculating basic and diluted net income per share is as follows:

 

     Three Months Ended      Nine Months Ended  
     November 2,
2013
     October 27,
2012
     November 2,
2013
     October 27,
2012
 

Weighted Average Common Shares Outstanding—Basic

     7,489,690         7,379,094         7,449,251         7,414,273   

Effect of Dilutive Options, Restricted Stock Awards and Restricted Stock Units

     226,130         82,864         200,763         72,315   
  

 

 

    

 

 

    

 

 

    

 

 

 

Weighted Average Common Shares Outstanding—Diluted

     7,715,820         7,461,958         7,650,014         7,486,588   
  

 

 

    

 

 

    

 

 

    

 

 

 

For the three and nine months ended November 2, 2013, the diluted per share amounts do not reflect common equivalent shares outstanding of 131,600 and 172,100, respectively, because their effect would have been anti-dilutive, as the exercise price was greater than the average market price of the underlying stock during the period presented. For the three and nine months ended October 27, 2012, the diluted per share amounts do not reflect common equivalent shares outstanding of 595,394 and 654,194, respectively, because their effect would have been anti-dilutive, as the exercise price was greater than the average market price of the underlying stock during the period presented.

Share-Based Compensation
Share-Based Compensation

(5) Share-Based Compensation

Astro-Med has one equity incentive plan (the “Plan”) under which incentive stock options, non-qualified stock options, restricted stock units (“RSUs”), restricted stock awards (“RSAs”) and other equity based awards may be granted to officers and certain employees. An aggregate of 1,000,000 shares were authorized for awards under the Plan. At November 2, 2013, 356,350 shares were available for grant under the Plan. Options granted to employees vest over four years. The exercise price of each stock option will be established at the discretion of the Compensation Committee; however, any incentive stock options granted must be at an exercise price of not less than fair market value at the date of grant. In fiscal year 2013, a portion of the Company’s long-term incentive compensation was awarded in the form of RSUs. The 2013 RSUs vest fifty percent on the first anniversary of the grant date and fifty percent on the second anniversary of the grant date provided that the grantee is employed on each vesting date by Astro-Med or an affiliate company and provided the Company achieves specific thresholds of net sales and annual operating income as established under the fiscal 2013 Domestic Management Bonus Plan. All such RSUs were earned in fiscal 2013 and fifty percent vested in March 2013; the balance will vest in March 2014, subject to the grantee’s continued employment. In April 2013, the Company granted options and RSUs to officers (“2014 RSUs”). Each 2014 RSU will be earned and vest as follows: twenty-five percent of the 2014 RSU vests on the third anniversary of the grant date, fifty percent of the 2014 RSU vests upon the Company achieving its cumulative budgeted net sales target for fiscal years 2014 through 2016 (the “Measurement Period”), and twenty-five percent of the total 2014 RSU vests upon the Company’s achieving a target average annual ORONA (operating income return on net assets as calculated under the Domestic Management Bonus Plan) for the Measurement Period. The grantee may not sell, transfer or otherwise dispose of more than fifty percent of the common stock issued upon vesting of the RSU until the first anniversary of the vesting date.

The Plan provides for an automatic annual grant of ten-year options to purchase 5,000 shares of stock to each non-employee director upon the adjournment of each annual shareholders meeting. Each such option is exercisable at the fair market value as of the grant date and vests immediately prior to the next succeeding annual shareholders meeting. In addition to the automatic option grant under Plan, the Company has a Non-Employee Director Annual Compensation Program (the “Program”) which provides that each non-employee director is entitled to an annual cash retainer of $7,000 (the “Cash Retainer”), plus $500 for each Board and committee meeting attended, provided that if more than one meeting occurs on the same day, no more than $500 shall be paid for such day. The non-employee director may elect for any fiscal year to receive all or a portion of the Cash Retainer in the form of common stock of the Company, which will be issued under the Plan. If a non-employee director elects to receive all or a portion of the Cash Retainer in the form of common stock, such shares shall be issued in four quarterly installments on the first day of each fiscal quarter, and the number of shares of common stock to be issued shall be based on the fair market value of such common stock on the date such installment is payable. The common stock received in lieu of such Cash Retainer will be fully vested. However, a non-employee director who receives common stock in lieu of all or a portion of the Cash Retainer may not sell, transfer, assign, pledge or otherwise encumber the common stock prior to the first anniversary of the date on which such shares were issuable. In the event of the death or disability of a nonemployee director, or a change in control of the Company, any shares of common stock issued in lieu of such Cash Retainer, shall no longer be subject to such restrictions on transfer.

In addition, under the Program, each non-employee director receives RSAs with a value equal to $20,000 (the “Equity Retainer”) upon adjournment of each annual shareholders meeting. If a non-employee director is first appointed or elected to the Board of Directors effective on a date other than at the annual shareholders meeting, on the date of such appointment or election, the director shall receive a pro rata award of restricted common stock having a value based on the number of days remaining until the next annual meeting. The Equity Retainer will vest on the earlier of 12 months after the grant date or the date immediately prior to the next annual meeting of the shareholders following the meeting at which such RSAs were granted. However, a non-employee director may not sell, transfer, assign, pledge or otherwise encumber the vested common stock prior to the second anniversary of the vesting date. In the event of the death or disability of a non-employee director, or a change in control of the Company, the RSAs shall immediately vest and shall no longer be subject to such restrictions on transfer.

We account for compensation cost related to share-based payments based on fair value of the stock options, RSUs and RSAs when awarded to an employee or director. We have estimated the fair value of each option on the date of grant using the Black-Scholes option-pricing model. Our estimate requires a number of complex and subjective assumptions including our stock price volatility, employee exercise patterns (expected life of the options), the risk-free interest rate and the Company’s dividend yield. The stock price volatility assumption is based on the historical weekly price data of our common stock over a period equivalent to the weighted average expected life of our options. Management evaluated whether there were factors during that period which were unusual and would distort the volatility figure if used to estimate future volatility and concluded that there were no such factors. In determining the expected life of the option grants, the Company has observed the actual terms of prior grants with similar characteristics and the actual vesting schedule of the grant and has assessed the expected risk tolerance of different option groups. The risk-free interest rate is based on the actual U.S. Treasury zero coupon rates for bonds matching the expected term of the option as of the option grant date. The dividend assumption is based upon the prior year’s average dividend yield. Reductions in compensation expense associated with the forfeited options are estimated at the date of grant, and this estimated forfeiture rate is adjusted periodically based on actual forfeiture experience. Our accounting for share-based compensation for RSUs and RSAs is also based on the fair value method. The fair value of the RSUs and RSAs is based on the closing market price of the Company’s common stock on the grant date of the RSU or RSA.

Share-based compensation expense was recognized as follows:

Three Months Ended Nine Months Ended
November 2,
2013
October 27,
2012
November 2,
2013
October 27,
2012
(In thousands)

Stock Options

$ 46 $ 42 $ 140 $ 120

Restricted Stock Awards and Restricted Stock Units

81 138 266 185

Total

$ 127 $ 180 $ 406 $ 305

Stock Options

The fair value of stock options granted during the nine months ended November 2, 2013 and October 27, 2012 was estimated using the following assumptions:

Nine Months Ended
November 2,
2013
October 27,
2012

Risk Free Interest Rate

0.8 % 0.9 %

Expected Volatility

38.3 % 39.2 %

Expected Life (in years)

5.0 5.0

Dividend Yield

2.6 % 3.4 %

The weighted average fair value per share for options granted was $2.79 during the first and second quarters of fiscal 2014. No options were granted during the third quarter of fiscal 2014. This compares the weighted average fair value per share for options granted of $2.09, $2.01 and $1.93 during the first, second and third quarters of fiscal 2013, respectively.

Aggregated information regarding stock options granted under the Plan for the nine months ended November 2, 2013 is summarized below:

Number of Options Weighted Average
Exercise Price
Weighted Average
Remaining
Contractual Life
(in Years)
Aggregate Intrinsic
Value

Outstanding at January 31, 2013

916,612 $ 8.46 4.4 $ 1,624,000

Granted

56,800 10.54

Exercised

(156,273 ) 8.16

Expired or canceled

(22,624 ) 9.53

Outstanding at November 2, 2013

794,515 $ 8.64 4.7 $ 3,185,525

Exercisable at November 2, 2013

619,867 $ 8.59 3.6 $ 2,514,405

As of November 2, 2013, there was $305,646 of unrecognized compensation expense related to unvested options, which will be recognized through March 2017.

Restricted Stock Units (RSUs) and Restricted Stock Awards (RSAs)

Aggregated information regarding RSUs and RSAs granted under the Plan for the nine months ended November 2, 2013 is summarized below:

RSAs & RSUs Weighted Average
Grant Date Fair Value

Unvested at January 31, 2013

96,900 $ 8.10

Granted

57,544 10.14

Vested

(40,898 ) 8.15

Forfeited

Unvested at November 2, 2013

113,546 $ 9.11

As of November 2, 2013, there was $457,878 of unrecognized compensation expense related to unvested RSUs and RSAs which will be recognized through April 2016.

Employee Stock Purchase Plan

Astro-Med has an Employee Stock Purchase Plan allowing eligible employees to purchase shares of common stock at a 15% discount from fair value on the date of purchase. A total of 247,500 shares were reserved for issuance under this plan. During the quarters ended November 2, 2013 and October 27, 2012, there were 886 and 1,535 shares respectively, purchased under this plan. During the nine months ended November 2, 2013 and October 27, 2012, there were 3,152 and 4,082 shares respectively, purchased under this plan. As of November 2, 2013, 61,709 shares remain available.

Inventories
Inventories

(6) Inventories

Inventories are stated at the lower of cost (first-in, first-out) or market and include material, labor and manufacturing overhead. The components of inventories are as follows:

 


     November 2, 2013      January 31, 2013  
(In thousands)              

Materials and Supplies

   $ 6,383       $ 6,654   

Work-In-Process

     1,128         591   

Finished Goods

     4,405         3,934   
  

 

 

    

 

 

 
   $ 11,916       $ 11,179   
  

 

 

    

 

 

Income Taxes
Income Taxes

(7) Income Taxes

The Company’s effective tax rates for income from continuing operations based on the projected effective tax rate for the full year, are as follows:

 

     Three Months Ended     Nine Months Ended  

Fiscal 2014

     36.9     34.7

Fiscal 2013

     40.0     25.4

During the three months ended November 2, 2013, the Company recognized a benefit of $187,000 recorded as a result of a favorable adjustment in the filing of the prior year’s tax returns. Of the $187,000 benefit, $18,000 relates to taxes on income from continuing operations.

During the nine months ended November 2, 2013, the Company recognized income tax expense on income from continuing operations of approximately $446,000 which included an expense of $464,000 on nine months pretax income from continuing operations and a benefit of $18,000 related to the favorable adjustment in the filing of the prior year’s tax returns.

During the nine months ended October 27, 2012, the Company recognized income tax expense on income from continuing operations of approximately $542,000 which included an expense of $844,000 on the nine month’s pretax income from continuing operations and a benefit of $302,000 related to the favorable resolution of a previously uncertain tax position.

As of November 2, 2013, the Company’s cumulative unrecognized tax benefits totaled $931,000 compared to $941,000 as of January 31, 2013. There were no developments affecting unrecognized tax benefits during the quarter ended November 2, 2013.

Line of Credit and Note Receivable
Line of Credit and Note Receivable

(8) Line of Credit and Note Receivable

On January 30, 2012, the Company completed the sale of its label manufacturing operations in Asheboro, North Carolina to Label Line Ltd. The net sales price of $1,000,000 was received in the form of a promissory note issued by Label Line Ltd. and is fully secured by a first lien on various collateral, including the Asheboro plant and plant assets. The note bears interest at a rate equal to the lesser of (i) the United States prime rate as of January 30, 2013 plus 50 basis points or (ii) six percent per annum and is payable in sixteen quarterly installments of principal and interest commencing on January 30, 2013. The Note Receivable is disclosed at its present value on the accompanying condensed consolidated balance sheets.

The terms of the Asheboro sale also included an agreement for Astro-Med to provide Label Line Ltd. with additional financing in the form of a revolving line of credit in the amount of $600,000. This line of credit is fully secured by a first lien on various collateral of Label Line Ltd., including the Asheboro plant and plant assets and bears interest at a rate equal to the United States prime rate plus an additional margin of two percent of the outstanding credit balance. The line of credit had an initial term of one-year from the date of the sale which may be extended for consecutive one-year terms on mutual agreement of both parties. On March 27, 2013, Astro-Med signed an agreement to extend this line of credit through January 30, 2014. As of November 2, 2013, $288,000 remains outstanding on this revolving line of credit.

Segment Information
Segment Information

(9) Segment Information

Astro-Med reports two segments consistent with its sales product groups: Test & Measurement (T&M) and QuickLabel Systems (QuickLabel). On January 31, 2013, the Company completed the sale of substantially all of the assets of its Grass Technologies Product Group (Grass) in order to focus on its existing core businesses. Consequently, the Company has classified the results of operations of Grass as discontinued operations for all periods presented. Refer to Note 14, “Discontinued Operations” for a further discussion.

The Company evaluates segment performance based on the segment profit before corporate expenses.

Summarized below are the Net Sales and Segment Operating Profit for each reporting segment:

 

     Three Months Ended      Nine Months Ended  
     Net Sales      Segment Operating Profit      Net Sales      Segment Operating Profit  

(In thousands)

   November 2,
2013
     October 27,
2012
     November 2,
2013
    October 27,
2012
     November 2,
2013
     October 27,
2012
     November 2,
2013
    October 27,
2012
 

T&M

   $ 5,670       $ 5,359       $ 912      $ 1,252       $ 14,756       $ 13,188       $ 1,803      $ 2,393   

QuickLabel

     12,509         10,680         1,494        1,136         36,102         31,850         3,962        3,140   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 18,179       $ 16,039         2,406        2,388       $ 50,858       $ 45,038         5,765        5,533   
  

 

 

    

 

 

         

 

 

    

 

 

      

Product Replacement Related Costs

           —         —                672       —     

Corporate Expenses

           1,223        1,187               3,745        3,339   
        

 

 

   

 

 

          

 

 

   

 

 

 

Operating Income

           1,183        1,201               1,348        2,194   

Other Income (Expense)—Net

           (2     47               (64     (56
        

 

 

   

 

 

          

 

 

   

 

 

 

Income From Continuing Operations Before Income Taxes

           1,181        1,248               1,284        2,138   

Income Tax Provision

           436        499               446        542   
        

 

 

   

 

 

          

 

 

   

 

 

 
           745        749               838        1,596   

Income From Discontinued Operations, Net of Income Taxes

           363        558               517        1,535   
        

 

 

   

 

 

          

 

 

   

 

 

 

Net Income

         $ 1,108      $ 1,307             $ 1,355      $ 3,131   
        

 

 

   

 

 

          

 

 

   

 

 

 
Recent Accounting Pronouncements
Recent Accounting Pronouncements

(10) Recent Accounting Pronouncements

Comprehensive Income

In February 2013, the Financial Standards Accounting Board issued Accounting Standard Update 2013-02, (“ASU-2013-02”) “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income,” which requires entities to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, entities are required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, entities are required to cross-reference to other disclosures that provide additional detail on these amounts. ASU 2013-02 was effective prospectively for reporting periods beginning after December 15, 2012. We adopted this guidance in our first quarter ending May 4, 2013 and have provided the disclosure required in Note 13. Since ASU 2013-02 only impacts presentation and disclosure requirements, the adoption of this guidance did not have a material impact on the Company’s financial position or results of operations.

No other new accounting pronouncements, issued or effective during the first nine months of the current year, have had or are expected to have a material impact on our consolidated financial statements.

Securities Available for Sale
Securities Available for Sale

(11) Securities Available for Sale

Pursuant to our investment policy, securities available for sale include state and municipal securities with various contractual or anticipated maturity dates ranging from 1 to 33 months. Securities available for sale are carried at fair value, with unrealized gains and losses reported as a component of accumulated other comprehensive income (loss) in shareholders’ equity until realized. Realized gains and losses from the sale of available for sale securities, if any, are determined on a specific identification basis. A decline in the fair value of any available for sale security below cost that is determined to be other than temporary will result in a write-down of its carrying amount to fair value. No such impairment charges were recorded for any period presented. All short-term investment securities have original maturities greater than 90 days.

The fair value, amortized cost and gross unrealized gains and losses of the securities are as follows:

 

(In thousands)    Amortized Cost      Gross Unrealized
Gains
     Gross Unrealized
Losses
     Fair Value  

November 2, 2013

           

State and Municipal Obligations

   $ 19,615       $ 39       $ —        $ 19,654   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

January 31, 2013

   Amortized Cost      Gross Unrealized
Gains
     Gross Unrealized
Losses
     Fair Value  

State and Municipal Obligations

   $   8,499       $ 10       $ —        $   8,509   
  

 

 

    

 

 

    

 

 

    

 

 

 
Fair Value
Fair Value

(12) Fair Value

We measure our financial assets at fair value on a recurring basis in accordance with the guidance provided in ASC 820, “Fair Value Measurement and Disclosures” which defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). In addition, ASC 820 establishes a three-tiered hierarchy for inputs used in management’s determination of fair value of financial instruments that emphasizes the use of observable inputs over the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that reflect management’s belief about the assumptions market participants would use in pricing a financial instrument based on the best information available in the circumstances.

The fair value hierarchy is summarized as follows:

 

    Level 1—Quoted prices in active markets for identical assets or liabilities;

 

    Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and

 

    Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Cash and cash equivalents; accounts receivables; line of credit receivable; notes receivable; accounts payable; accrued compensation and other expenses and income tax payable are reflected in the condensed consolidated balance sheet at carrying value, which approximates fair value due to the short term nature of the these instruments.

Assets measured at fair value on a recurring basis are summarized below:

 

(In thousands)                            

November 2, 2013

   Level 1      Level 2      Level 3      Total  

Money Market Funds (included in Cash and Cash Equivalents)

   $ 7,557       $ —        $ —        $ 7,557   

State and Municipal Obligations (included in Securities Available for Sale)

     19,654         —          —          19,654   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 27,211       $ —        $ —        $ 27,211   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

January 31, 2013

   Level 1      Level 2      Level 3      Total  

Money Market Funds (included in Cash and Cash Equivalents)

   $ 8,784       $ —        $ —        $ 8,784   

State and Municipal Obligations (included in Securities Available for Sale)

     8,509               8,509   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 17,293       $ —        $ —        $ 17,293   
  

 

 

    

 

 

    

 

 

    

 

 

 

For our money market funds and state and municipal obligations, we utilize the market approach to measure fair value. The market approach is based on using quoted market prices for identical assets.

Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss)

(13) Accumulated Other Comprehensive Income (Loss)

The changes in the balance of accumulated other comprehensive income (loss) by component are as follows:

 

(In thousands)    Foreign Currency
Translation
Adjustments
    Unrealized Holding Gain
on Available for
Sale Securities
     Total  

Balance at January 31, 2013

   $ 166      $ 7       $ 173   

Other Comprehensive Income (Loss)

     (56     18         (38

Amounts reclassified to Net Income

     —         —          —    
  

 

 

   

 

 

    

 

 

 

Net Other Comprehensive Income (Loss)

     (56     18         (38
  

 

 

   

 

 

    

 

 

 

Balance at November 2, 2013

   $ 110      $ 25       $ 135   
  

 

 

   

 

 

    

 

 

 

The amounts presented above in other comprehensive income are net of taxes.

Discontinued Operations
Discontinued Operations

(14) Discontinued Operations

On January 31, 2013, the Company completed the sale of substantially all of the assets of its Grass Technologies Product Group (Grass) which manufactured polysomnography and electroencephalography systems and related accessories and propriety electrodes for use in both research and clinical settings. The assets sold consisted primarily of working capital (exclusive of inventory and accounts payable related to manufacturing), the engineering, sales and support workforce, intellectual property and certain other related assets. The proceeds from the sale consisted of $18.6 million in cash, of which $1.8 million is being held in escrow as restricted cash, for twelve months following the closing date of the transaction in order to provide indemnity to the purchaser in the event of any breach in the representations, warranties and covenants of Astro-Med. The Company has fully reserved the $1.8 million in Other Accrued Expenses in the accompanying condensed consolidated balance sheets.

As part of this transaction, Astro-Med entered into a Transition Service Agreement (TSA) with the purchaser pursuant to which the Company will provide transition services and continue to manufacture Grass products for the purchaser. The TSA will expire January 31, 2014 at which time the purchaser will acquire any remaining inventory. On September 20, 2013, the Company entered into a new contract manufacturing agreement with the purchaser to become an exclusive manufacturer of certain medical devices. The effective date of this agreement is February 1, 2014 and the agreement is for a period two years from the effective date. The Company has determined that cash flows from this activity will not be significant and therefore Grass has been presented as a discontinued operation for all periods presented.

Results for discontinued operations are as follows:

 

     Three Months
Ended
     Nine Months
Ended
 
     November 2,
2013
     October 27,
2012
     November 2,
2013
     October 27,
2012
 
(In thousands)                            

Net Sales

   $ 2,485       $ 4,523       $ 6,201       $ 13,520   

Gross Profit

   $ 290       $ 2,354       $ 668       $ 6,969   

Net Income from Discontinued Operations

   $ 363       $ 558       $ 517       $ 1,535   

During the three months ended November 2, 2013, the Company recognized a tax benefit of $89,000 on income from discontinued operations, which included an expense of $80,000 on three months pretax income from discontinued operations and a benefit of $169,000 recorded as a result of a favorable adjustment in the filing of the prior year’s tax returns. During the nine months ended November 2, 2013, the Company recognized a tax benefit of $2,000 on income from discontinued operations, which included an expense of $167,000 and a benefit of $169,000 recorded as a result of a favorable adjustment in the filing of the prior years tax returns.

As a result of the sale of the Grass assets, the Company is in the process of selling its facility located in Rockland, Massachusetts, which was the former location of Grass production. This property is being actively marketed with sale considered probable within the next twelve months and as such, the property is classified as an Asset Held for Sale in the accompanying condensed consolidated balance sheets.

Commitments and Contingencies
Commitments and Contingencies

(15) Commitments and Contingencies

Product Replacement Program

In April 2013, tests conducted by the Company revealed that one of its suppliers had been using non-conforming material in the cover of the power supply used in certain models of Astro-Med’s Test & Measurement printers. No malfunctions have been reported by customers as a result of the non-conforming material.

 

Upon identifying this issue, Astro-Med immediately suspended production of the printers, notified all customers and contacted the supplier who confirmed the problem. Astro-Med is working with its customers to replace the non-conforming material on existing printers with conforming material and will do this on a gradual basis over several months. The estimated costs associated with the replacement program are $672,000, which was based upon the number of printers shipped during the period the non-conforming material was used. Those costs have been recognized and recorded in the first quarter and are included in the accompanying condensed consolidated statement of operations for the nine months ended November 2, 2013. The related remaining reserve amount of $520,000 is included in Other Accrued Expenses in the accompanying condensed consolidated balance sheet dated November 2, 2013.

Astro-Med is currently receiving power supplies with compliant materials and has resumed printer production and shipments to customers.

Since Astro-Med’s supplier deviated from the agreed upon specifications for the power supply while providing certificates of conformance to the original specifications, the Company is currently in negotiations with the supplier and is seeking recovery for the costs and associated with this issue.

Recent Accounting Pronouncements (Policies)

Comprehensive Income

In February 2013, the Financial Standards Accounting Board issued Accounting Standard Update 2013-02, (“ASU-2013-02”) “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income,” which requires entities to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, entities are required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, entities are required to cross-reference to other disclosures that provide additional detail on these amounts. ASU 2013-02 was effective prospectively for reporting periods beginning after December 15, 2012. We adopted this guidance in our first quarter ending May 4, 2013 and have provided the disclosure required in Note 13. Since ASU 2013-02 only impacts presentation and disclosure requirements, the adoption of this guidance did not have a material impact on the Company’s financial position or results of operations.

We measure our financial assets at fair value on a recurring basis in accordance with the guidance provided in ASC 820, “Fair Value Measurement and Disclosures” which defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). In addition, ASC 820 establishes a three-tiered hierarchy for inputs used in management’s determination of fair value of financial instruments that emphasizes the use of observable inputs over the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that reflect management’s belief about the assumptions market participants would use in pricing a financial instrument based on the best information available in the circumstances.

Net Income Per Common Share (Tables)
Reconciliation of the Shares Used in Calculating Basic and Diluted

A reconciliation of the shares used in calculating basic and diluted net income per share is as follows:

 

     Three Months Ended      Nine Months Ended  
     November 2,
2013
     October 27,
2012
     November 2,
2013
     October 27,
2012
 

Weighted Average Common Shares Outstanding—Basic

     7,489,690         7,379,094         7,449,251         7,414,273   

Effect of Dilutive Options, Restricted Stock Awards and Restricted Stock Units

     226,130         82,864         200,763         72,315   
  

 

 

    

 

 

    

 

 

    

 

 

 

Weighted Average Common Shares Outstanding—Diluted

     7,715,820         7,461,958         7,650,014         7,486,588   
  

 

 

    

 

 

    

 

 

    

 

 

 
Share-Based Compensation (Tables)

Share-based compensation expense was recognized as follows:

 

     Three Months Ended      Nine Months Ended  
     November 2,
2013
     October 27,
2012
     November 2,
2013
     October 27,
2012
 
(In thousands)                            

Stock Options

   $ 46       $ 42       $ 140       $ 120   

Restricted Stock Awards and Restricted Stock Units

     81         138         266         185   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 127       $ 180       $ 406       $ 305   
  

 

 

    

 

 

    

 

 

    

 

 

 

The fair value of stock options granted during the nine months ended November 2, 2013 and October 27, 2012 was estimated using the following assumptions:

 

     Nine Months Ended  
     November 2,
2013
    October 27,
2012
 

Risk Free Interest Rate

     0.8     0.9

Expected Volatility

     38.3     39.2

Expected Life (in years)

     5.0        5.0   

Dividend Yield

     2.6     3.4

Aggregated information regarding stock options granted under the Plan for the nine months ended November 2, 2013 is summarized below:

 

     Number of Options     Weighted Average
Exercise Price
     Weighted Average
Remaining
Contractual Life
(in Years)
     Aggregate Intrinsic
Value
 

Outstanding at January 31, 2013

     916,612      $ 8.46         4.4       $ 1,624,000   

Granted

     56,800        10.54         

Exercised

     (156,273     8.16         

Expired or canceled

     (22,624     9.53         
  

 

 

   

 

 

       

Outstanding at November 2, 2013

     794,515      $ 8.64         4.7       $ 3,185,525   
  

 

 

   

 

 

    

 

 

    

 

 

 

Exercisable at November 2, 2013

     619,867      $ 8.59         3.6       $ 2,514,405   
  

 

 

   

 

 

    

 

 

    

 

 

 

Aggregated information regarding RSUs and RSAs granted under the Plan for the nine months ended November 2, 2013 is summarized below:

 

     RSAs & RSUs     Weighted Average
Grant Date Fair Value
 

Unvested at January 31, 2013

     96,900     $ 8.10  

Granted

     57,544        10.14   

Vested

     (40,898     8.15   

Forfeited

     —         —    
  

 

 

   

 

 

 

Unvested at November 2, 2013

     113,546      $ 9.11   
  

 

 

   

 

 

 
Inventories (Tables)
Components of Inventories

The components of inventories are as follows:

 

     November 2, 2013      January 31, 2013  
(In thousands)              

Materials and Supplies

   $ 6,383       $ 6,654   

Work-In-Process

     1,128         591   

Finished Goods

     4,405         3,934   
  

 

 

    

 

 

 
   $ 11,916       $ 11,179   
  

 

 

    

 

 

 
Income Taxes (Tables)
Projected Effective Tax Rate for the Periods

The Company’s effective tax rates for income from continuing operations based on the projected effective tax rate for the full year, are as follows:

 

     Three Months Ended     Nine Months Ended  

Fiscal 2014

     36.9     34.7

Fiscal 2013

     40.0     25.4 %
Segment Information (Tables)
Net Sales and Segment Operating Profit for Each Reporting Segment

Summarized below are the Net Sales and Segment Operating Profit for each reporting segment:

 

     Three Months Ended      Nine Months Ended  
     Net Sales      Segment Operating Profit      Net Sales      Segment Operating Profit  

(In thousands)

   November 2,
2013
     October 27,
2012
     November 2,
2013
    October 27,
2012
     November 2,
2013
     October 27,
2012
     November 2,
2013
    October 27,
2012
 

T&M

   $ 5,670       $ 5,359       $ 912      $ 1,252       $ 14,756       $ 13,188       $ 1,803      $ 2,393   

QuickLabel

     12,509         10,680         1,494        1,136         36,102         31,850         3,962        3,140   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 18,179       $ 16,039         2,406        2,388       $ 50,858       $ 45,038         5,765        5,533   
  

 

 

    

 

 

         

 

 

    

 

 

      

Product Replacement Related Costs

           —         —                672       —     

Corporate Expenses

           1,223        1,187               3,745        3,339   
        

 

 

   

 

 

          

 

 

   

 

 

 

Operating Income

           1,183        1,201               1,348        2,194   

Other Income (Expense)—Net

           (2     47               (64     (56
        

 

 

   

 

 

          

 

 

   

 

 

 

Income From Continuing Operations Before Income Taxes

           1,181        1,248               1,284        2,138   

Income Tax Provision

           436        499               446        542   
        

 

 

   

 

 

          

 

 

   

 

 

 
           745        749               838        1,596   

Income From Discontinued Operations, Net of Income Taxes

           363        558               517        1,535   
        

 

 

   

 

 

          

 

 

   

 

 

 

Net Income

         $ 1,108      $ 1,307             $ 1,355      $ 3,131   
        

 

 

   

 

 

          

 

 

   

 

 

 
Securities Available for Sale (Tables)
Fair Value, Amortized Cost and Gross Unrealized Gains and Losses of the Securities

The fair value, amortized cost and gross unrealized gains and losses of the securities are as follows:

 

(In thousands)    Amortized Cost      Gross Unrealized
Gains
     Gross Unrealized
Losses
     Fair Value  

November 2, 2013

           

State and Municipal Obligations

   $ 19,615       $ 39       $ —        $ 19,654   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

January 31, 2013

   Amortized Cost      Gross Unrealized
Gains
     Gross Unrealized
Losses
     Fair Value  

State and Municipal Obligations

   $   8,499       $ 10       $ —        $   8,509   
  

 

 

    

 

 

    

 

 

    

 

 

 
Fair Value (Tables)
Assets Measured at Fair Value on a Recurring Basis

Assets measured at fair value on a recurring basis are summarized below:

 

(In thousands)                            

November 2, 2013

   Level 1      Level 2      Level 3      Total  

Money Market Funds (included in Cash and Cash Equivalents)

   $ 7,557       $ —        $ —        $ 7,557   

State and Municipal Obligations (included in Securities Available for Sale)

     19,654         —          —          19,654   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 27,211       $ —        $ —        $ 27,211   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

January 31, 2013

   Level 1      Level 2      Level 3      Total  

Money Market Funds (included in Cash and Cash Equivalents)

   $ 8,784       $ —        $ —        $ 8,784   

State and Municipal Obligations (included in Securities Available for Sale)

     8,509               8,509   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 17,293       $ —        $ —        $ 17,293   
  

 

 

    

 

 

    

 

 

    

 

 

 
Accumulated Other Comprehensive Income (Loss) (Tables)
Changes in the Balance of Accumulated Other Comprehensive Income (Loss)

The changes in the balance of accumulated other comprehensive income (loss) by component are as follows:

 

(In thousands)    Foreign Currency
Translation
Adjustments
    Unrealized Holding Gain
on Available for
Sale Securities
     Total  

Balance at January 31, 2013

   $ 166      $ 7       $ 173   

Other Comprehensive Income (Loss)

     (56     18         (38

Amounts reclassified to Net Income

     —         —          —    
  

 

 

   

 

 

    

 

 

 

Net Other Comprehensive Income (Loss)

     (56     18         (38
  

 

 

   

 

 

    

 

 

 

Balance at November 2, 2013

   $ 110      $ 25       $ 135   
  

 

 

   

 

 

    

 

 

 
Discontinued Operations (Tables)
Summary of Discontinued Operations

Results for discontinued operations are as follows:

 

     Three Months
Ended
     Nine Months
Ended
 
     November 2,
2013
     October 27,
2012
     November 2,
2013
     October 27,
2012
 
(In thousands)                            

Net Sales

   $ 2,485       $ 4,523       $ 6,201       $ 13,520   

Gross Profit

   $ 290       $ 2,354       $ 668       $ 6,969   

Net Income from Discontinued Operations

   $ 363       $ 558       $ 517       $ 1,535   

 

Net Income Per Common Share - Reconciliation of the Shares Used in Calculating Basic and Diluted (Detail)
3 Months Ended 9 Months Ended
Nov. 2, 2013
Oct. 27, 2012
Nov. 2, 2013
Oct. 27, 2012
Equity [Abstract]
 
 
 
 
Weighted Average Common Shares Outstanding - Basic
7,489,690 
7,379,094 
7,449,251 
7,414,273 
Effect of Dilutive Options, Restricted Stock Awards and Restricted Stock Units
226,130 
82,864 
200,763 
72,315 
Weighted Average Common Shares Outstanding - Diluted
7,715,820 
7,461,958 
7,650,014 
7,486,588 
Net Income Per Common Share - Additional Information (Detail)
3 Months Ended 9 Months Ended
Nov. 2, 2013
Oct. 27, 2012
Nov. 2, 2013
Oct. 27, 2012
Equity [Abstract]
 
 
 
 
Anti-dilutive option
131,600 
595,394 
172,100 
654,194 
Share-Based Compensation - Additional Information (Detail) (USD $)
3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 9 Months Ended
Nov. 2, 2013
Aug. 3, 2013
May 4, 2013
Oct. 27, 2012
Jul. 28, 2012
Apr. 28, 2012
Nov. 2, 2013
Jan. 31, 2013
Nov. 2, 2013
Employee Stock Purchase Plan [Member]
Oct. 27, 2012
Employee Stock Purchase Plan [Member]
Nov. 2, 2013
Employee Stock Purchase Plan [Member]
Oct. 27, 2012
Employee Stock Purchase Plan [Member]
Nov. 2, 2013
Non-Employee Director [Member]
Nov. 2, 2013
2013 Restricted Stock Units (RSUs) [Member]
First Anniversary [Member]
Nov. 2, 2013
2013 Restricted Stock Units (RSUs) [Member]
Second Anniversary [Member]
Nov. 2, 2013
2014 Restricted Stock Units (RSUs) [Member]
Nov. 2, 2013
2014 Restricted Stock Units (RSUs) [Member]
Officer [Member]
Nov. 2, 2013
2014 Restricted Stock Units (RSUs) [Member]
Officer [Member]
Net Sales Target [Member]
Nov. 2, 2013
2014 Restricted Stock Units (RSUs) [Member]
Officer [Member]
ORONA Target [Member]
Nov. 2, 2013
2014 Restricted Stock Units (RSUs) [Member]
Officer [Member]
Third Anniversary [Member]
Nov. 2, 2013
Equity Incentive Plan [Member]
Nov. 2, 2013
Equity Incentive Plan [Member]
Non-Employee Director [Member]
Nov. 2, 2013
Restricted Stock [Member]
Non-Employee Director [Member]
Nov. 2, 2013
Equity Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Award vesting period
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
12 months 
4 years 
Aggregate shares authorized for awards under the plan
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,000,000 
 
 
 
Shares available for grant under the Plan
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
356,350 
 
 
 
Restricted stock unit vested percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
50.00% 
50.00% 
 
 
50.00% 
25.00% 
25.00% 
 
 
 
 
Maximum disposal restricted percentage of RSU
 
 
 
 
 
 
50.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cumulative budgeted net sales target measurement period
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2014 through 2016 
 
 
 
 
 
 
 
Option expiration period
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
10 years 
 
 
Stock options grant to each non-employee director
 
 
 
 
 
 
56,800 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5,000 
 
 
Non-employee director is entitled to an annual cash retainer
 
 
 
 
 
 
$ 7,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-employee director is entitled to an annual cash retainer additional
 
 
 
 
 
 
 
 
 
 
 
 
500 
 
 
 
 
 
 
 
 
 
 
 
Non-employee director received restricted stock award value
 
 
 
 
 
 
20,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Options granted weighted average fair value per share
$ 0.00 
$ 2.79 
$ 2.79 
$ 1.93 
$ 2.01 
$ 2.09 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrecognized compensation expense related to unvested options
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
305,646 
Unrecognized compensation expense related to unvested options, recognize date
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
through April 2016 
 
 
 
 
 
 
 
through March 2017 
Unrecognized compensation expense related to unvested RSUs and RSAs
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 457,878 
 
 
 
 
 
 
 
 
Employee Stock Purchase Plan discount rate
 
 
 
 
 
 
 
 
 
 
15.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reservation of shares under Stock Purchase Plan
 
 
 
 
 
 
247,500 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares purchase under Employee Stock Purchase Plan
 
 
 
 
 
 
 
 
886 
1,535 
3,152 
4,082 
 
 
 
 
 
 
 
 
 
 
 
 
Available shares under Stock Purchase Plan
794,515 
 
 
 
 
 
794,515 
916,612 
61,709 
 
61,709 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share-Based Compensation - Share-Based Compensation Expense (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Nov. 2, 2013
Oct. 27, 2012
Nov. 2, 2013
Oct. 27, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Share-based compensation, Total
$ 127 
$ 180 
$ 406 
$ 305 
Stock Options [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Share-based compensation, Total
46 
42 
140 
120 
Restricted Stock Awards and Restricted Stock Units [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Share-based compensation, Total
$ 81 
$ 138 
$ 266 
$ 185 
Share-Based Compensation - Fair Value of Stock Options Granted (Detail)
9 Months Ended
Nov. 2, 2013
Oct. 27, 2012
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
 
 
Risk Free Interest Rate
0.80% 
0.90% 
Expected Volatility
38.30% 
39.20% 
Expected Life (in years)
5 years 
5 years 
Dividend Yield
2.60% 
3.40% 
Share-Based Compensation - Aggregated Information Regarding Stock Options Granted (Detail) (USD $)
9 Months Ended 12 Months Ended
Nov. 2, 2013
Jan. 31, 2013
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
 
 
Beginning balance, Number of Options
916,612 
 
Granted, Number of Options
56,800 
 
Exercised, Number of Options
(156,273)
 
Expired or canceled, Number of Options
(22,624)
 
Ending balance, Number of Options
794,515 
916,612 
Exercisable, Number of Options
619,867 
 
Beginning balance, Weighted Average Exercise Price
$ 8.46 
 
Granted, Weighted Average Exercise Price
$ 10.54 
 
Exercised, Weighted Average Exercise Price
$ 8.16 
 
Expired or canceled, Weighted Average Exercise Price
$ 9.53 
 
Ending balance, Weighted Average Exercise Price
$ 8.64 
$ 8.46 
Exercisable, Weighted Average Exercise Price
$ 8.59 
 
Weighted Average Remaining Contractual Life (in Years)
4 years 8 months 12 days 
4 years 4 months 24 days 
Exercisable, Weighted Average Remaining Contractual Life (in Years)
3 years 7 months 6 days 
 
Beginning balance, Aggregated Intrinsic Value
$ 1,624,000 
 
Ending balance, Aggregated Intrinsic Value
3,185,525 
1,624,000 
Exercisable, Aggregate Intrinsic Value
$ 2,514,405 
 
Share-Based Compensation - Aggregated Information Regarding RSUs and RSAs Granted (Detail) (USD $)
9 Months Ended
Nov. 2, 2013
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
 
Beginning balance, Unvested Restricted Stock Units and Restricted Stock Awards
96,900 
Granted, Restricted Stock Units and Restricted Stock Awards
57,544 
Vested, Restricted Stock Units and Restricted Stock Awards
(40,898)
Forfeited, Restricted Stock Units and Restricted Stock Awards
   
Ending balance, Unvested Restricted Stock Units and Restricted Stock Awards
113,546 
Beginning balance, Weighted Average Grant Date Fair Value
$ 8.10 
Granted, Weighted Average Grant Date Fair Value
$ 10.14 
Vested, Weighted Average Grant Date Fair Value
$ 8.15 
Forfeited, Weighted Average Grant Date Fair Value
   
Ending balance, Weighted Average Grant Date Fair Value
$ 9.11 
Inventories - Components of Inventories (Detail) (USD $)
In Thousands, unless otherwise specified
Nov. 2, 2013
Jan. 31, 2013
Inventory Disclosure [Abstract]
 
 
Materials and Supplies
$ 6,383 
$ 6,654 
Work-In-Process
1,128 
591 
Finished Goods
4,405 
3,934 
Inventories, Net
$ 11,916 
$ 11,179 
Income Taxes - Projected Effective Tax Rate for Periods (Detail)
3 Months Ended 9 Months Ended
Nov. 2, 2013
Nov. 2, 2013
Income Tax Disclosure [Abstract]
 
 
Fiscal 2014
36.90% 
34.70% 
Fiscal 2013
40.00% 
25.40% 
Income Taxes - Additional Information (Detail) (USD $)
3 Months Ended 9 Months Ended
Nov. 2, 2013
Oct. 27, 2012
Nov. 2, 2013
Oct. 27, 2012
Jan. 31, 2013
Income Tax Disclosure [Abstract]
 
 
 
 
 
Pretax income and benefit
$ 187,000 
 
$ 18,000 
$ 302,000 
 
Income tax expense on income
436,000 
499,000 
446,000 
542,000 
 
Expense included in income tax
 
 
464,000 
844,000 
 
Cumulative unrecognized tax benefits
931,000 
 
931,000 
 
941,000 
Developments affecting unrecognized tax benefits
$ 0 
 
 
 
 
Line of Credit and Note Receivable - Additional Information (Detail) (USD $)
9 Months Ended
Nov. 2, 2013
Installment
Jan. 30, 2012
Credit Facilities [Line Items]
 
 
Net sales price
 
$ 1,000,000 
United States prime and interest commencement date
Jan. 30, 2013 
 
Promissory note interest rate
6.00% 
 
Interest installments
16 
 
Revolving line of credit
600,000 
 
Extended revolving line of credit
$ 288,000 
 
Revolving Credit Facility [Member]
 
 
Credit Facilities [Line Items]
 
 
Line of credit facility maturity date
Jan. 30, 2014 
 
Line of credit facility extended term
1 year 
 
Line of credit facility initial term
1 year 
 
Prime Rate [Member]
 
 
Credit Facilities [Line Items]
 
 
Interest rate on outstanding credit balance
0.50% 
 
Prime Rate [Member] |
Revolving Credit Facility [Member]
 
 
Credit Facilities [Line Items]
 
 
Interest rate on outstanding credit balance
2.00% 
 
Segment Information - Additional Information (Detail)
9 Months Ended
Nov. 2, 2013
Segment
Segment Reporting [Abstract]
 
Number of segments
Segment Information - Net Sales and Segment Operating Profit for Each Reporting Segment (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Nov. 2, 2013
Oct. 27, 2012
Nov. 2, 2013
Oct. 27, 2012
Segment Reporting Information [Line Items]
 
 
 
 
Net Sales
$ 18,179 
$ 16,039 
$ 50,858 
$ 45,038 
Product Replacement Related Costs
 
 
672 
 
Operating Income
1,183 
1,201 
1,348 
2,194 
Other Income (Expense)-Net
(2)
47 
(64)
(56)
Income From Continuing Operations Before Income Taxes
1,181 
1,248 
1,284 
2,138 
Income Tax Provision
436 
499 
446 
542 
Income from Continuing Operations
745 
749 
838 
1,596 
Income From Discontinued Operations, Net of Income Taxes
363 
558 
517 
1,535 
Net Income
1,108 
1,307 
1,355 
3,131 
Operating Segments [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net Sales
18,179 
16,039 
50,858 
45,038 
Segment Operating Profit
2,406 
2,388 
5,765 
5,533 
Product Replacement Related Costs
 
 
672 
 
Corporate Expenses
1,223 
1,187 
3,745 
3,339 
Operating Income
1,183 
1,201 
1,348 
2,194 
Other Income (Expense)-Net
(2)
47 
(64)
(56)
Income From Continuing Operations Before Income Taxes
1,181 
1,248 
1,284 
2,138 
Income Tax Provision
436 
499 
446 
542 
Income from Continuing Operations
745 
749 
838 
1,596 
Income From Discontinued Operations, Net of Income Taxes
363 
558 
517 
1,535 
Net Income
1,108 
1,307 
1,355 
3,131 
T&M [Member] |
Operating Segments [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net Sales
5,670 
5,359 
14,756 
13,188 
Segment Operating Profit
912 
1,252 
1,803 
2,393 
QuickLabel [Member] |
Operating Segments [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net Sales
12,509 
10,680 
36,102 
31,850 
Segment Operating Profit
$ 1,494 
$ 1,136 
$ 3,962 
$ 3,140 
Securities Available for Sale - Additional Information (Detail) (USD $)
9 Months Ended
Nov. 2, 2013
Schedule of Held-to-maturity Securities [Line Items]
 
Short-term investment securities have original maturities greater than (days)
90 days 
Impairment charges on available for sale security
$ 0 
Maximum [Member]
 
Schedule of Held-to-maturity Securities [Line Items]
 
Anticipated maturity dates range
33 months 
Minimum [Member]
 
Schedule of Held-to-maturity Securities [Line Items]
 
Anticipated maturity dates range
1 month 
Securities Available for Sale - Fair Value, Amortized Cost and Gross Unrealized Gains and Losses of the Securities (Detail) (State and Municipal Obligations [Member], USD $)
In Thousands, unless otherwise specified
Nov. 2, 2013
Jan. 31, 2013
State and Municipal Obligations [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
$ 19,615 
$ 8,499 
Gross Unrealized Gains
39 
10 
Gross Unrealized Losses
   
   
Fair Value
$ 19,654 
$ 8,509 
Fair Value - Assets measured at Fair Value on a Recurring Basis (Detail) (USD $)
In Thousands, unless otherwise specified
Nov. 2, 2013
Jan. 31, 2013
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Money Market Funds (included in Cash and Cash Equivalents)
$ 7,557 
$ 8,784 
State and Municipal Obligations (included in Securities Available for Sale)
19,654 
8,509 
Total
27,211 
17,293 
Level 1 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Money Market Funds (included in Cash and Cash Equivalents)
7,557 
8,784 
State and Municipal Obligations (included in Securities Available for Sale)
19,654 
8,509 
Total
27,211 
17,293 
Level 2 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Money Market Funds (included in Cash and Cash Equivalents)
   
   
State and Municipal Obligations (included in Securities Available for Sale)
   
   
Total
   
   
Level 3 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Money Market Funds (included in Cash and Cash Equivalents)
   
   
State and Municipal Obligations (included in Securities Available for Sale)
   
   
Total
   
   
Accumulated Other Comprehensive Income (Loss) - Changes in the Balance of Accumulated Other Comprehensive Income (Loss) (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Nov. 2, 2013
Oct. 27, 2012
Nov. 2, 2013
Oct. 27, 2012
Schedule of Capitalization, Equity [Line Items]
 
 
 
 
Balance at January 31, 2013
 
 
$ 173 
 
Other Comprehensive Income (Loss)
 
 
(38)
 
Amounts reclassified to Net Income
 
 
   
 
Net Other Comprehensive Income (Loss)
151 
183 
(38)
(75)
Balance at November 2, 2013
135 
 
135 
 
Foreign Currency Translation Adjustments [Member]
 
 
 
 
Schedule of Capitalization, Equity [Line Items]
 
 
 
 
Balance at January 31, 2013
 
 
166 
 
Other Comprehensive Income (Loss)
 
 
(56)
 
Amounts reclassified to Net Income
 
 
   
 
Net Other Comprehensive Income (Loss)
 
 
(56)
 
Balance at November 2, 2013
110 
 
110 
 
Unrealized Holding Gain on Available for Sale Securities [Member]
 
 
 
 
Schedule of Capitalization, Equity [Line Items]
 
 
 
 
Balance at January 31, 2013
 
 
 
Other Comprehensive Income (Loss)
 
 
18 
 
Amounts reclassified to Net Income
 
 
   
 
Net Other Comprehensive Income (Loss)
 
 
18 
 
Balance at November 2, 2013
$ 25 
 
$ 25 
 
Discontinued Operations - Additional Information (Detail) (USD $)
3 Months Ended 9 Months Ended 12 Months Ended
Nov. 2, 2013
Oct. 27, 2012
Nov. 2, 2013
Oct. 27, 2012
Jan. 31, 2013
Deferred Financing Costs [Line Items]
 
 
 
 
 
Proceeds from sale
 
 
 
 
$ 18,600,000 
Cash reserve in escrow
 
 
 
 
1,800,000 
Period of cash reserved
 
 
12 months 
 
 
Service agreement expiration date
 
 
Jan. 31, 2014 
 
 
Agreement effective start date
 
 
Feb. 01, 2014 
 
 
Term of agreement
 
 
2 years 
 
 
Income tax expense (benefit) of discontinued operations
(89,000)
(2,000)
333,000 
928,000 
 
Expense included in income tax
 
 
464,000 
844,000 
 
Discontinued Operations [Member]
 
 
 
 
 
Deferred Financing Costs [Line Items]
 
 
 
 
 
Income tax benefit from favorable adjustment prior year tax return
169,000 
 
169,000 
 
 
Expense included in income tax
$ 80,000 
 
$ 167,000 
 
 
Discontinued Operations - Summary of Discontinued Operations (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Nov. 2, 2013
Oct. 27, 2012
Nov. 2, 2013
Oct. 27, 2012
Discontinued Operations And Disposal Groups [Abstract]
 
 
 
 
Net Sales
$ 2,485 
$ 4,523 
$ 6,201 
$ 13,520 
Gross Profit
290 
2,354 
668 
6,969 
Net Income from Discontinued Operations
$ 363 
$ 558 
$ 517 
$ 1,535 
Commitments and Contingencies - Additional Information (Detail) (USD $)
9 Months Ended
Nov. 2, 2013
Commitments And Contingencies Disclosure [Abstract]
 
Estimated costs associated with the replacement program
$ 672,000 
Other Accrued Expenses
$ 520,000