ASTRO MED INC /NEW/, 10-Q filed on 5/29/2015
Quarterly Report
Document and Entity Information
3 Months Ended
May 2, 2015
May 22, 2015
Document And Entity Information [Abstract]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
May 02, 2015 
 
Document Fiscal Year Focus
2016 
 
Document Fiscal Period Focus
Q1 
 
Trading Symbol
ALOT 
 
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
 
7,307,255 
Condensed Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
May 2, 2015
Jan. 31, 2015
CURRENT ASSETS
 
 
Cash and Cash Equivalents
$ 8,815 
$ 7,958 
Securities Available for Sale
15,837 
15,174 
Accounts Receivable, net
14,012 
14,107 
Inventories
14,488 
15,582 
Deferred Tax Assets
2,640 
2,629 
Restricted Cash
600 
 
Line of Credit Receivable
170 
173 
Note Receivable
250 
255 
Asset Held for Sale
1,900 
1,900 
Prepaid Expenses and Other Current Assets
3,652 
4,140 
Total Current Assets
62,364 
61,918 
PROPERTY, PLANT AND EQUIPMENT
37,501 
36,823 
Less Accumulated Depreciation
(28,823)
(28,444)
Property, Plant and Equipment, net
8,678 
8,379 
OTHER ASSETS
 
 
Note Receivable
131 
256 
Intangible Assets, net
2,609 
2,698 
Goodwill
991 
991 
Other
104 
88 
Total Other Assets
3,835 
4,033 
TOTAL ASSETS
74,877 
74,330 
CURRENT LIABILITIES
 
 
Accounts Payable
4,065 
3,155 
Accrued Compensation
2,426 
3,302 
Other Liabilities and Accrued Expenses
2,143 
2,343 
Deferred Revenue
546 
621 
Income Taxes Payable
59 
148 
Total Current Liabilities
9,239 
9,569 
Deferred Tax Liabilities
105 
83 
Other Long Term Liabilities
1,052 
1,167 
TOTAL LIABILITIES
10,396 
10,819 
SHAREHOLDERS' EQUITY
 
 
Common Stock, $0.05 Par Value, Authorized 13,000,000 shares; Issued 9,593,005 shares and 9,544,864 shares at May 2, 2015 and January 31, 2015, respectively
478 
477 
Additional Paid-in Capital
43,869 
43,589 
Retained Earnings
40,434 
39,735 
Treasury Stock, at Cost, 2,293,606 shares at May 2, 2015 and January 31, 2015
(19,591)
(19,591)
Accumulated Other Comprehensive Income (Loss)
(709)
(699)
TOTAL SHAREHOLDERS' EQUITY
64,481 
63,511 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$ 74,877 
$ 74,330 
Condensed Consolidated Balance Sheets (Parenthetical) (USD $)
May 2, 2015
Jan. 31, 2015
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
9,593,005 
9,544,864 
Treasury Stock, Shares
2,293,606 
2,293,606 
Condensed Consolidated Statements of Income (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended
May 2, 2015
May 3, 2014
Income Statement [Abstract]
 
 
Net Sales
$ 22,206 
$ 20,774 
Cost of Sales
13,176 
12,139 
Gross Profit
9,030 
8,635 
Operating Expenses:
 
 
Selling and Marketing
4,329 
4,374 
Research and Development
1,796 
1,371 
General and Administrative
1,457 
1,191 
Operating Expenses
7,582 
6,936 
Operating Income, net
1,448 
1,699 
Other Income (Expense)
234 
(121)
Income before Income Taxes
1,682 
1,578 
Income Tax Provision
471 
449 
Net Income
$ 1,211 
$ 1,129 
Net Income Per Common Share-Basic
$ 0.17 
$ 0.15 
Net Income Per Common Share-Diluted
$ 0.16 
$ 0.14 
Weighted Average Number of Common Shares Outstanding:
 
 
Basic
7,280 
7,601 
Diluted
7,454 
7,848 
Dividends Declared Per Common Share
$ 0.07 
$ 0.07 
Condensed Consolidated Statements of Comprehensive Income (USD $)
In Thousands, unless otherwise specified
3 Months Ended
May 2, 2015
May 3, 2014
Statement of Comprehensive Income [Abstract]
 
 
Net Income
$ 1,211 
$ 1,129 
Other Comprehensive Income (Loss), Net of Taxes and Reclassification Adjustments:
 
 
Foreign Currency Translation Adjustments
92 
Unrealized Holding Gain (Loss) on Securities Available for Sale
(18)
(3)
Other Comprehensive Income (Loss)
(10)
89 
Comprehensive Income
$ 1,201 
$ 1,218 
Condensed Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
3 Months Ended
May 2, 2015
May 3, 2014
Cash Flows from Operating Activities:
 
 
Net Income
$ 1,211 
$ 1,129 
Adjustments to Reconcile Net Income to Net Cash Provided (Used) by Operating Activities:
 
 
Depreciation and Amortization
455 
512 
Share-Based Compensation
143 
131 
Deferred Income Tax Provision
10 
59 
Changes in Assets and Liabilities:
 
 
Accounts Receivable
95 
(166)
Inventories
1,094 
(1,003)
Income Taxes
268 
(731)
Accounts Payable and Accrued Expenses
(397)
(1,691)
Other
93 
(735)
Net Cash Provided (Used) by Operating Activities
2,972 
(2,495)
Cash Flows from Investing Activities:
 
 
Proceeds from Sales/Maturities of Securities Available for Sale
2,435 
2,880 
Purchases of Securities Available for Sale
(3,127)
(2,574)
Restricted Cash
(600)
 
Release of Funds Held in Escrow From Sale of Grass
 
1,800 
Proceeds Received on Disposition of Grass Inventory
 
2,355 
Payments Received on Line of Credit and Note Receivable
125 
 
Additions to Property, Plant and Equipment
(654)
(292)
Net Cash Provided (Used) by Investing Activities
(1,821)
4,169 
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
137 
658 
Dividends Paid
(510)
(533)
Net Cash Provided (Used) by Financing Activities
(373)
125 
Effect of Exchange Rate Changes on Cash and Cash Equivalents
79 
(91)
Net Increase in Cash and Cash Equivalents
857 
1,799 
Cash and Cash Equivalents, Beginning of Period
7,958 
8,341 
Cash and Cash Equivalents, End of Period
8,815 
10,140 
Supplemental Disclosures of Cash Flow Information:
 
 
Cash Paid During the Period for Income Taxes, Net of Refunds
$ 207 
$ 1,471 
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 Company offices in Canada, Europe and Southeast Asia 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, apparel, automotive, avionics, chemical, computer peripherals, communications, distribution, food and beverage, general manufacturing, packaging and transportation 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 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, 2015.

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 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  
     May 2,
2015
     May 3,
2014
 

Weighted Average Common Shares Outstanding—Basic

     7,280,246         7,600,780   

Effect of Dilutive Options and Restricted Stock Units

     173,936         247,520   
  

 

 

    

 

 

 

Weighted Average Common Shares Outstanding—Diluted

  7,454,182      7,848,300   
  

 

 

    

 

 

 

For the three months ended May 2, 2015 and May 3, 2014 the diluted per share amounts do not reflect common equivalent shares outstanding of 76,200 and 75,600, 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.

Intangible Assets
Intangible Assets

(5) Intangible Assets

Intangible assets are as follows:

 

     May 2, 2015      January 31, 2015  
($ In thousands)    Gross
Carrying
Amount
     Accumulated
Amortization
    Net
Carrying
Amount
     Gross
Carrying
Amount
     Accumulated
Amortization
     Net
Carrying
Amount
 

Intangible assets subject to amortization:

                

Customer Contract Relationships

   $ 3,100       $ (491   $ 2,609       $ 3,100       $ (402    $ 2,698   

Backlog

     300         (300     —           300         (300      —     
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Intangible assets, net

$ 3,400    $ (791 $ 2,609    $ 3,400    $ (702 $ 2,698   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

There were no impairments to intangible assets during the periods ended May 2, 2015 and May 3, 2014. Amortization expense of $89,000 and $175,000 in regards to the above acquired intangibles has been included in the condensed consolidated statements of income for the periods ended May 2, 2015 and May 3, 2014, respectively.

Estimated amortization expense for the next five years is as follows:

 

(In thousands)    Remainder
of

2016
     2017      2018      2019      2020  

Estimated amortization expenses

   $ 268       $ 349       $ 331       $ 278       $ 278   

 


Share-Based Compensation
Share-Based Compensation

(6) 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 directors, officers and certain employees. An aggregate of 1,000,000 shares were authorized for awards under the Plan. At May 2, 2015, 124,302 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 executive’s long-term incentive compensation was awarded in the form of RSUs (“2013 RSUs”). The 2013 RSUs were earned based on the Company achieving specific thresholds of net sales and annual operating income as established under the fiscal 2013 Domestic Management Bonus Plan and vested 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 was employed on each vesting date by Astro-Med or an affiliate company. All such 2013 RSUs were earned and vested as of March 2014. 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. On February 1, 2014, the Company accelerated the vesting of 4,166 of the RSUs held by Everett Pizzuti in connection with his retirement. None of the remaining 2014 RSUs, have vested as of May 2, 2015.

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 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 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 “Annual Cash Retainer”), plus $500 for each Board and committee meeting attended. In addition, effective August 1, 2014, the Chairman of the Board also receives an annual retainer of $6,000 and the Chair of the Audit Committee and Compensation Committee each receive an annual retainer of $4,000 each (“Chair Retainer”). The non-employee director may elect for any fiscal year to receive all or a portion of the Annual Cash Retainer and/or Chair Retainer (collectively 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  
     May 2,
2015
     May 3,
2014
 
(In thousands)              

Stock Options

   $ 75       $ 54   

Restricted Stock Awards and Restricted Stock Units

     68         77   
  

 

 

    

 

 

 

Total

$ 143    $ 131   
  

 

 

    

 

 

 

Stock Options

The fair value of stock options granted during the three months ended May 2, 2015 and May 3, 2014 was estimated using the following assumptions:

 

     Three Months Ended  
     May 2,
2015
    May 3,
2014
 

Risk Free Interest Rate

     1.6     1.6

Expected Volatility

     22.7     26.8

Expected Life (in years)

     5.0        5.0   

Dividend Yield

     2.0     2.0

The weighted average fair value per share for options granted was $2.43 during the first quarter of fiscal 2016 as compared to $2.93 during the first quarter of fiscal 2015.

Aggregated information regarding stock options granted under the Plan for the three months ended May 2, 2015 is summarized below:

 

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

Outstanding at January 31, 2015

     656,011       $ 10.01         4.2       $ 3,225,000   

Granted

     85,000         13.95         

Exercised

     (15,778      8.12         

Expired or canceled

     (2,293      8.55         
  

 

 

    

 

 

       

Outstanding at May 2, 2015

  722,940    $ 10.53      6.1    $ 2,601,468   
  

 

 

    

 

 

    

 

 

    

 

 

 

Exercisable at May 2, 2015

  443,977    $ 9.03      4.4    $ 2,260,318   
  

 

 

    

 

 

    

 

 

    

 

 

 

As of May 2, 2015, there was $586,000 of unrecognized compensation expense related to unvested options, which will be recognized through March 2019.

 

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

Aggregated information regarding RSUs and RSAs granted under the Plan for the three months ended May 2, 2015 is summarized below:

 

     RSAs & RSUs      Weighted Average
Grant Date Fair Value
 

Unvested at January 31, 2015

     72,245       $ 9.70   

Granted

     537         13.95   

Vested

     —           —     

Forfeited

     (2,800      10.07   
  

 

 

    

 

 

 

Unvested at May 2, 2015

  69,982    $ 9.71   
  

 

 

    

 

 

 

As of May 2, 2015, there was $175,000 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 May 2, 2015 and May 3, 2014, there were 732 and 815 shares respectively, purchased under this plan. As of May 2, 2015, 56,273 shares remain available.

Inventories
Inventories

(7) 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:

 

     May 2, 2015      January 31, 2015  
(In thousands)              

Materials and Supplies

   $ 9,487       $ 10,600   

Work-In-Process

     1,250         765   

Finished Goods

     7,229         7,372   
  

 

 

    

 

 

 
  17,966      18,737   

Inventory Reserve

  (3,478   (3,155
  

 

 

    

 

 

 
$ 14,488    $ 15,582   
  

 

 

    

 

 

Income Taxes
Income Taxes

(8) Income Taxes

The Company’s effective tax rates for the period, which are based on the projected effective tax rate for the full year, are as follows:

 

     Three Months Ended  

Fiscal 2016

     28.0

Fiscal 2015

     28.5

During the first quarter of fiscal 2016, the Company recognized an income tax expense of approximately $471,000. The effective tax rate in this quarter was directly impacted by a $135,000 tax benefit related to the statute of limitations expiring on a previously uncertain tax position. During the three months ended May 3, 2014, the Company recognized income tax expense of $449,000 which includes a benefit of approximately $100,000 related to the favorable resolution of a previously uncertain tax position.

As of May 2, 2015, the Company’s cumulative unrecognized tax benefits totaled $633,000 compared to $707,000 as of January 31, 2015. There were no other developments affecting unrecognized tax benefits during the quarter ended May 2, 2015.

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

(9) Note Receivable and Line of Credit Issued

On January 30, 2012, the Company completed the sale of its label manufacturing operations in Asheboro, North Carolina to Label Line Ltd. The net sale 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 3.75% and is payable in sixteen quarterly installments of principal and interest which commenced on January 30, 2013. As of May 2, 2015, $375,000 remains outstanding on this note which approximates its estimated fair value.

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 on the outstanding credit balance. The term of this revolving line of credit has been extended through January 31, 2016. As of May 2, 2015, $170,000 remains outstanding on this revolving line of credit. The estimated fair value of the line of credit approximates its carrying value.

Segment Information
Segment Information

(10) Segment Information

Astro-Med reports two segments: QuickLabel Systems (QuickLabel) and Test & Measurement (T&M). 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  
     Net Sales      Segment Operating Profit  

(In thousands)

   May 2,
2015
     May 3,
2014
     May 2,
2015
     May 3,
2014
 

QuickLabel

   $ 15,644       $ 14,423       $ 1,977       $ 2,198   

T&M

     6,562         6,351         928         692   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

$ 22,206    $ 20,774      2,905      2,890   
  

 

 

    

 

 

       

Corporate Expenses

  1,457      1,191   
        

 

 

    

 

 

 

Operating Income

  1,448      1,699   

Other Income (Expense)—Net

  234      (121
        

 

 

    

 

 

 

Income Before Income Taxes

  1,682      1,578   

Income Tax Provision

  471      449   
        

 

 

    

 

 

 

Net Income

$ 1,211    $ 1,129   
        

 

 

    

 

 

 

Recent Accounting Pronouncements
Recent Accounting Pronouncements

(11) Recent Accounting Pronouncements

Revenue Recognition

In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 completes the joint effort by the FASB and International Accounting Standards Board (IASB) to improve financial reporting by creating common revenue recognition guidance for U.S. GAAP and International Financial Reporting Standards (IFRS). ASU 2014-09 applies to all companies that enter into contracts with customers to transfer goods or services and is effective for public entities for interim and annual reporting periods beginning after December 15, 2016. Early application is not permitted and entities have the choice to apply ASU 2014-09 either retrospectively to each reporting period presented or by recognizing the cumulative effect of applying ASU 2014-09 at the date of initial application and not adjusting comparative information. The Company is currently evaluating the requirements of ASU 2014-09 and has not yet determined its impact on the Company’s consolidated financial statements.

No other new accounting pronouncements, issued or effective during the first three 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

(12) 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 one to 21 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 securities available for sale are as follows:

 

(In thousands)

May 2, 2015

   Amortized Cost      Gross Unrealized
Gains
     Gross Unrealized
Losses
    Fair Value  

State and Municipal Obligations

   $ 15,841       $ 14       $ (18   $ 15,837   
  

 

 

    

 

 

    

 

 

   

 

 

 

January 31, 2015

   Amortized Cost      Gross Unrealized
Gains
     Gross Unrealized
Losses
    Fair Value  

State and Municipal Obligations

   $ 15,150       $ 26       $ (2 )   $ 15,174   
  

 

 

    

 

 

    

 

 

   

 

 

Fair Value
Fair Value

(13) 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, 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)

May 2, 2015

   Level 1      Level 2      Level 3      Total  

Money Market Funds (included in Cash and Cash Equivalents)

   $ 2,409       $ —        $ —         $ 2,409   

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

     —          15,837         —          15,837   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

$ 2,409    $ 15,837    $ —      $ 18,246   
  

 

 

    

 

 

    

 

 

    

 

 

 

January 31, 2015

   Level 1      Level 2      Level 3      Total  

Money Market Funds (included in Cash and Cash Equivalents)

   $ 3,028       $ —        $ —         $ 3,028   

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

     —          15,174         —          15,174   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

$ 3,028    $ 15,174    $ —      $ 18,202   
  

 

 

    

 

 

    

 

 

    

 

 

 

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 prices for identical or similar assets.

 

Non-financial assets measured at fair value on a recurring basis are summarized below:

 

May 2, 2015

   Level 1      Level 2      Level 3  
(In thousands)                     

Asset Held for Sale

   $ —         $ 1,900       $ —     
  

 

 

    

 

 

    

 

 

 

January 31, 2015

   Level 1      Level 2      Level 3  
(In thousands)                     

Asset Held for Sale

   $ —        $ 1,900       $ —    
  

 

 

    

 

 

    

 

 

 

Asset held for sale consists of Astro-Med’s former Grass facility in Rockland, Massachusetts which is being actively marketed for sale. In accordance with ASC 360, “Property, Plant and Equipment,” assets held for sale are written down to fair value less cost to sell and as such, the Company has recorded impairment charges of $220,000 and $779,000, in the fourth quarter of fiscal 2015 and 2014, respectively. The Company estimated the fair value of the Rockland facility using the market values for similar properties less the cost to sell and expects to sell this property within the next twelve months.

Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Loss

(14) Accumulated Other Comprehensive 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, 2015

   $ (714    $ 15       $ (699

Other Comprehensive Income (Loss)

     8         (18      (10
  

 

 

    

 

 

    

 

 

 

Balance at May 2, 2015

$ (706 $ (3 $ (709
  

 

 

    

 

 

    

 

 

 

The amounts presented above in other comprehensive income (loss) are net of taxes, except for translation adjustment associated with our German Subsidiary.

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 a non-conforming part in power supplies for 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 continuing to work with its customers to replace the non-conforming material on existing printers with conforming material. The estimated costs associated with the replacement program were $672,000, which was based upon the number of printers shipped during the period the non-conforming material was used. Those estimated costs were recognized and recorded as a reserve in the first quarter of fiscal 2014. As of May 2, 2015, the Company had expended $338,000 in replacement costs which have been charged against this reserve. The remaining reserve amount of $334,000 is included in Other Accrued Expenses in the accompanying condensed consolidated balance sheet dated May 2, 2015.

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

Since the supplier deviated from the agreed upon specifications for the power supply while providing certificates of conformance to the original specifications, in January 2014, Astro-Med received a non-refundable $450,000 settlement from the supplier for recovery of the costs and expense associated with this issue. In addition to this cash settlement, the Company is receiving lower product prices from the supplier through fiscal 2017.

Line of Credit
Line of Credit

(16) Line of Credit

The Company has a three-year, $10 million revolving line of credit available for ongoing working capital requirements, business acquisitions or general corporate purposes as needed. Any borrowings made under this line of credit bear interest at either a fluctuating base rate equal to the highest of (i) the Prime Rate, (ii) 1.50% above the daily one month LIBOR, and (iii) the Federal Funds Rate in effect plus 1.50% or at a fixed rate of LIBOR plus an agreed upon margin of between 0% and 2.25%, based on the Company’s funded debt to EBITDA ratio as defined in the agreement. In addition, the new agreement provided for two financial covenant requirements, namely, Total Funded Debt to Adjusted EBITDA (as defined) of not greater than 3 to 1 and a Fixed Charge Coverage Ratio (as defined) of not less than 1.25 to 1, both measured at the end of each quarter on a rolling four quarter basis. As of May 2, 2015, there have been no borrowings against this line of credit and the Company was in compliance with its financial covenants.

Subsequent Event
Subsequent Event

(17) Subsequent Event

On May 20, 2015, the Company’s shareholders approved the 2015 Equity Incentive Plan (the “2015 Plan”) under which equity based awards, including incentive stock options, non-qualified stock options, RSUs and RSAs, may be granted to directors, officers, key employees and certain other individuals providing services to the Company. The maximum number of shares of common stock of the Company authorized for issuance under the 2015 Plan is 500,000, subject to adjustment for stock splits, stock dividends and other changes to the Company’s capital structure.

Recent Accounting Pronouncements (Policies)
Recent Accounting Pronouncements

Recent Accounting Pronouncements

Revenue Recognition

In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 completes the joint effort by the FASB and International Accounting Standards Board (IASB) to improve financial reporting by creating common revenue recognition guidance for U.S. GAAP and International Financial Reporting Standards (IFRS). ASU 2014-09 applies to all companies that enter into contracts with customers to transfer goods or services and is effective for public entities for interim and annual reporting periods beginning after December 15, 2016. Early application is not permitted and entities have the choice to apply ASU 2014-09 either retrospectively to each reporting period presented or by recognizing the cumulative effect of applying ASU 2014-09 at the date of initial application and not adjusting comparative information. The Company is currently evaluating the requirements of ASU 2014-09 and has not yet determined its impact on the Company’s consolidated financial statements.

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

Net Income Per Common Share (Tables)
Reconciliation of 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  
     May 2,
2015
     May 3,
2014
 

Weighted Average Common Shares Outstanding—Basic

     7,280,246         7,600,780   

Effect of Dilutive Options and Restricted Stock Units

     173,936         247,520   
  

 

 

    

 

 

 

Weighted Average Common Shares Outstanding—Diluted

  7,454,182      7,848,300   
  

 

 

    

 

 

Intangible Assets (Tables)

Intangible assets are as follows:

 

     May 2, 2015      January 31, 2015  
($ In thousands)    Gross
Carrying
Amount
     Accumulated
Amortization
    Net
Carrying
Amount
     Gross
Carrying
Amount
     Accumulated
Amortization
     Net
Carrying
Amount
 

Intangible assets subject to amortization:

                

Customer Contract Relationships

   $ 3,100       $ (491   $ 2,609       $ 3,100       $ (402    $ 2,698   

Backlog

     300         (300     —           300         (300      —     
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Intangible assets, net

$ 3,400    $ (791 $ 2,609    $ 3,400    $ (702 $ 2,698   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Estimated amortization expense for the next five years is as follows:

 

(In thousands)    Remainder
of

2016
     2017      2018      2019      2020  

Estimated amortization expenses

   $ 268       $ 349       $ 331       $ 278       $ 278   

Share-Based Compensation (Tables)

Share-based compensation expense was recognized as follows:

 

     Three Months Ended  
     May 2,
2015
     May 3,
2014
 
(In thousands)              

Stock Options

   $ 75       $ 54   

Restricted Stock Awards and Restricted Stock Units

     68         77   
  

 

 

    

 

 

 

Total

$ 143    $ 131   
  

 

 

    

 

 

 

The fair value of stock options granted during the three months ended May 2, 2015 and May 3, 2014 was estimated using the following assumptions:

 

     Three Months Ended  
     May 2,
2015
    May 3,
2014
 

Risk Free Interest Rate

     1.6     1.6

Expected Volatility

     22.7     26.8

Expected Life (in years)

     5.0        5.0   

Dividend Yield

     2.0     2.0

Aggregated information regarding stock options granted under the Plan for the three months ended May 2, 2015 is summarized below:

 

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

Outstanding at January 31, 2015

     656,011       $ 10.01         4.2       $ 3,225,000   

Granted

     85,000         13.95         

Exercised

     (15,778      8.12         

Expired or canceled

     (2,293      8.55         
  

 

 

    

 

 

       

Outstanding at May 2, 2015

  722,940    $ 10.53      6.1    $ 2,601,468   
  

 

 

    

 

 

    

 

 

    

 

 

 

Exercisable at May 2, 2015

  443,977    $ 9.03      4.4    $ 2,260,318   
  

 

 

    

 

 

    

 

 

    

 

 

 

Aggregated information regarding RSUs and RSAs granted under the Plan for the three months ended May 2, 2015 is summarized below:

 

     RSAs & RSUs      Weighted Average
Grant Date Fair Value
 

Unvested at January 31, 2015

     72,245       $ 9.70   

Granted

     537         13.95   

Vested

     —           —     

Forfeited

     (2,800      10.07   
  

 

 

    

 

 

 

Unvested at May 2, 2015

  69,982    $ 9.71   
  

 

 

    

 

 

 
Inventories (Tables)
Components of Inventories

The components of inventories are as follows:

 

     May 2, 2015      January 31, 2015  
(In thousands)              

Materials and Supplies

   $ 9,487       $ 10,600   

Work-In-Process

     1,250         765   

Finished Goods

     7,229         7,372   
  

 

 

    

 

 

 
  17,966      18,737   

Inventory Reserve

  (3,478   (3,155
  

 

 

    

 

 

 
$ 14,488    $ 15,582   
  

 

 

    

 

 

Income Taxes (Tables)
Projected Effective Tax Rate for Periods

The Company’s effective tax rates for the period, which are based on the projected effective tax rate for the full year, are as follows:

 

     Three Months Ended  

Fiscal 2016

     28.0

Fiscal 2015

     28.5 %
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  
     Net Sales      Segment Operating Profit  

(In thousands)

   May 2,
2015
     May 3,
2014
     May 2,
2015
     May 3,
2014
 

QuickLabel

   $ 15,644       $ 14,423       $ 1,977       $ 2,198   

T&M

     6,562         6,351         928         692   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

$ 22,206    $ 20,774      2,905      2,890   
  

 

 

    

 

 

       

Corporate Expenses

  1,457      1,191   
        

 

 

    

 

 

 

Operating Income

  1,448      1,699   

Other Income (Expense)—Net

  234      (121
        

 

 

    

 

 

 

Income Before Income Taxes

  1,682      1,578   

Income Tax Provision

  471      449   
        

 

 

    

 

 

 

Net Income

$ 1,211    $ 1,129   
        

 

 

    

 

 

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 securities available for sale are as follows:

 

(In thousands)

May 2, 2015

   Amortized Cost      Gross Unrealized
Gains
     Gross Unrealized
Losses
    Fair Value  

State and Municipal Obligations

   $ 15,841       $ 14       $ (18   $ 15,837   
  

 

 

    

 

 

    

 

 

   

 

 

 

January 31, 2015

   Amortized Cost      Gross Unrealized
Gains
     Gross Unrealized
Losses
    Fair Value  

State and Municipal Obligations

   $ 15,150       $ 26       $ (2 )   $ 15,174   
  

 

 

    

 

 

    

 

 

   

 

 

 
Fair Value (Tables)

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

 

(In thousands)

May 2, 2015

   Level 1      Level 2      Level 3      Total  

Money Market Funds (included in Cash and Cash Equivalents)

   $ 2,409       $ —        $ —         $ 2,409   

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

     —          15,837         —          15,837   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

$ 2,409    $ 15,837    $ —      $ 18,246   
  

 

 

    

 

 

    

 

 

    

 

 

 

January 31, 2015

   Level 1      Level 2      Level 3      Total  

Money Market Funds (included in Cash and Cash Equivalents)

   $ 3,028       $ —        $ —         $ 3,028   

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

     —          15,174         —          15,174   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

$ 3,028    $ 15,174    $ —      $ 18,202   
  

 

 

    

 

 

    

 

 

    

 

 

 

Non-financial assets measured at fair value on a recurring basis are summarized below:

 

May 2, 2015

   Level 1      Level 2      Level 3  
(In thousands)                     

Asset Held for Sale

   $ —         $ 1,900       $ —     
  

 

 

    

 

 

    

 

 

 

January 31, 2015

   Level 1      Level 2      Level 3  
(In thousands)                     

Asset Held for Sale

   $ —        $ 1,900       $ —    
  

 

 

    

 

 

    

 

 

 

Accumulated Other Comprehensive 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, 2015

   $ (714    $ 15       $ (699

Other Comprehensive Income (Loss)

     8         (18      (10
  

 

 

    

 

 

    

 

 

 

Balance at May 2, 2015

$ (706 $ (3 $ (709
  

 

 

    

 

 

    

 

 

Net Income Per Common Share - Reconciliation of Shares Used in Calculating Basic and Diluted (Detail)
3 Months Ended
May 2, 2015
May 3, 2014
Equity [Abstract]
 
 
Weighted Average Common Shares Outstanding-Basic
7,280,000 
7,601,000 
Effect of Dilutive Options and Restricted Stock Units
173,936 
247,520 
Weighted Average Common Shares Outstanding-Diluted
7,454,000 
7,848,000 
Net Income Per Common Share - Additional Information (Detail)
3 Months Ended
May 2, 2015
May 3, 2014
Equity [Abstract]
 
 
Number of common equivalent shares
76,200 
75,600 
Intangible Assets - Additional Information (Detail) (USD $)
3 Months Ended
May 2, 2015
May 3, 2014
Impairment of Intangible Assets (Excluding Goodwill) [Abstract]
 
 
Impairments of intangible assets
$ 0 
$ 0 
Amortization expense
$ 89,000 
$ 175,000 
Intangible Assets - Summary of Estimated Amortization Expense (Detail) (USD $)
In Thousands, unless otherwise specified
May 2, 2015
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
 
Remainder of 2016
$ 268 
2017
349 
2018
331 
2019
278 
2020
$ 278 
Share-Based Compensation - Additional Information (Detail) (USD $)
3 Months Ended 3 Months Ended 0 Months Ended 3 Months Ended 3 Months Ended 0 Months Ended 3 Months Ended
May 2, 2015
Equity_Plan
May 3, 2014
Feb. 1, 2015
May 2, 2015
Employee Stock Purchase Plan [Member]
May 3, 2014
Employee Stock Purchase Plan [Member]
May 2, 2015
Non-Employee Director [Member]
Aug. 1, 2014
Chairman of Board [Member]
Aug. 1, 2014
Chair of Audit Committee [Member]
Aug. 1, 2014
Chair of Compensation Committee [Member]
May 2, 2015
2013 Restricted Stock Units (RSUs) [Member]
First Anniversary [Member]
May 2, 2015
2013 Restricted Stock Units (RSUs) [Member]
Second Anniversary [Member]
May 2, 2015
Equity Incentive Plan [Member]
May 2, 2015
Equity Incentive Plan [Member]
Non-Employee Director [Member]
May 2, 2015
Restricted Stock [Member]
Non-Employee Director [Member]
May 2, 2015
Stock Options [Member]
Feb. 1, 2015
2014 Restricted Stock Units (RSUs) [Member]
May 2, 2015
2014 Restricted Stock Units (RSUs) [Member]
May 2, 2015
2014 Restricted Stock Units (RSUs) [Member]
Officer [Member]
May 2, 2015
2014 Restricted Stock Units (RSUs) [Member]
Officer [Member]
Net Sales Target [Member]
May 2, 2015
2014 Restricted Stock Units (RSUs) [Member]
Officer [Member]
ORONA Target [Member]
May 2, 2015
2014 Restricted Stock Units (RSUs) [Member]
Officer [Member]
Third Anniversary [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of equity incentive plan
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
 
 
 
 
 
 
 
 
 
 
124,302 
 
 
 
 
 
 
 
 
 
Restricted stock unit vested percentage
 
 
 
 
 
 
 
 
 
50.00% 
50.00% 
 
 
 
 
 
 
 
50.00% 
25.00% 
25.00% 
Maximum disposal restricted percentage of RSU
50.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of accelerated vesting shares
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4,166 
 
 
 
 
Cumulative budgeted net sales target measurement period
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2014 through 2016 
 
 
 
Option expiration period
 
 
 
 
 
 
 
 
 
 
 
 
10 years 
 
 
 
 
 
 
 
 
Stock options grant to each non-employee director
85,000 
 
 
 
 
 
 
 
 
 
 
 
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 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount of Chair Retainer payable
 
 
 
 
 
 
6,000 
4,000 
4,000 
 
 
 
 
 
 
 
 
 
 
 
 
Non-employee director received restricted stock award value
20,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Options granted weighted average fair value per share
$ 2.43 
$ 2.93 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrecognized compensation expense related to unvested options
 
 
 
 
 
 
 
 
 
 
 
 
 
 
586,000 
 
 
 
 
 
 
Unrecognized compensation expense related to unvested options, recognize date
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Through March 2019 
 
Through April 2016 
 
 
 
 
Unrecognized compensation expense related to unvested RSUs and RSAs
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 175,000 
 
 
 
 
Employee Stock Purchase Plan discount rate
 
 
 
15.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reservation of shares under Stock Purchase Plan
247,500 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares purchase under Employee Stock Purchase Plan
 
 
 
732 
815 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock options granted
722,940 
 
656,011 
56,273 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share-Based Compensation - Share-Based Compensation Expense (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
May 2, 2015
May 3, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Share-based compensation, Total
$ 143 
$ 131 
Stock Options [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Share-based compensation, Total
75 
54 
Restricted Stock Awards and Restricted Stock Units [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Share-based compensation, Total
$ 68 
$ 77 
Share-Based Compensation - Fair Value of Stock Options Granted (Detail)
3 Months Ended
May 2, 2015
May 3, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
 
 
Risk Free Interest Rate
1.60% 
1.60% 
Expected Volatility
22.70% 
26.80% 
Expected Life (in years)
5 years 
5 years 
Dividend Yield
2.00% 
2.00% 
Share-Based Compensation - Aggregated Information Regarding Stock Options Granted (Detail) (USD $)
3 Months Ended 12 Months Ended
May 2, 2015
Jan. 31, 2015
Share-based Compensation [Abstract]
 
 
Beginning balance, Number of Options
656,011 
 
Granted, Number of Options
85,000 
 
Exercised, Number of Options
(15,778)
 
Expired or canceled, Number of Options
(2,293)
 
Ending balance, Number of Options
722,940 
 
Exercisable, Number of Options
443,977 
 
Beginning balance, Weighted Average Exercise Price
$ 10.01 
 
Granted, Weighted Average Exercise Price
$ 13.95 
 
Exercised, Weighted Average Exercise Price
$ 8.12 
 
Expired or canceled, Weighted Average Exercise Price
$ 8.55 
 
Ending balance, Weighted Average Exercise Price
$ 10.53 
 
Exercisable, Weighted Average Exercise Price
$ 9.03 
 
Weighted Average Remaining Contractual Life (in Years)
6 years 1 month 6 days 
4 years 2 months 12 days 
Exercisable, Weighted Average Remaining Contractual Life (in Years)
4 years 4 months 24 days 
 
Beginning balance, Aggregated Intrinsic Value
$ 3,225,000 
 
Ending balance, Aggregated Intrinsic Value
2,601,468 
 
Exercisable, Aggregate Intrinsic Value
$ 2,260,318 
 
Share-Based Compensation - Aggregated Information Regarding RSUs and RSAs Granted (Detail) (USD $)
3 Months Ended
May 2, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
 
Beginning balance, Unvested Restricted Stock Units and Restricted Stock Awards
72,245 
Granted, Restricted Stock Units and Restricted Stock Awards
537 
Vested, Restricted Stock Units and Restricted Stock Awards
Forfeited, Restricted Stock Units and Restricted Stock Awards
(2,800)
Ending balance, Unvested Restricted Stock Units and Restricted Stock Awards
69,982 
Beginning balance, Weighted Average Grant Date Fair Value
$ 9.70 
Granted, Weighted Average Grant Date Fair Value
$ 13.95 
Vested, Weighted Average Grant Date Fair Value
$ 0 
Forfeited, Weighted Average Grant Date Fair Value
$ 10.07 
Ending balance, Weighted Average Grant Date Fair Value
$ 9.71 
Inventories - Components of Inventories (Detail) (USD $)
In Thousands, unless otherwise specified
May 2, 2015
Jan. 31, 2015
Inventory Disclosure [Abstract]
 
 
Materials and Supplies
$ 9,487 
$ 10,600 
Work-in-Progress
1,250 
765 
Finished Goods
7,229 
7,372 
Inventory, Gross
17,966 
18,737 
Inventory Reserve
(3,478)
(3,155)
Balance at March 2
$ 14,488 
$ 15,582 
Income Taxes - Projected Effective Tax Rate for Periods (Detail)
3 Months Ended
May 2, 2015
May 3, 2014
Income Tax Disclosure [Abstract]
 
 
Effective tax rates for income from continuing operations
28.00% 
28.50% 
Income Taxes - Additional Information (Detail) (USD $)
3 Months Ended
May 2, 2015
May 3, 2014
Jan. 31, 2015
Income Tax Disclosure [Abstract]
 
 
 
Income tax expense
$ 471,000 
$ 449,000 
 
Income tax expense (benefit) related to prior year's state taxes
135,000 
100,000 
 
Cumulative unrecognized tax benefits
633,000 
 
707,000 
Developments affecting unrecognized tax benefits
$ 0 
 
 
Note Receivable and Line of Credit Issued - Additional Information (Detail) (USD $)
0 Months Ended 3 Months Ended
Jan. 30, 2012
May 2, 2015
Installment
Jan. 30, 2012
Debt Disclosure [Abstract]
 
 
 
Net sale price
 
 
$ 1,000,000 
Promissory note interest rate
3.75% 
 
 
Interest commencement date
 
Jan. 30, 2013 
 
Interest installments
 
16 
 
Promissory note outstanding
 
375,000 
 
Revolving line of credit issued maximum
 
600,000 
 
Interest rate on outstanding credit balance
 
2.00% 
 
Line of credit facility maturity date
 
Jan. 31, 2016 
 
Extended revolving line of credit
 
$ 170,000 
 
Segment Information - Additional Information (Detail)
3 Months Ended
May 2, 2015
Segment
Segment Reporting [Abstract]
 
Number of reporting segments
Segment Information - Net Sales and Segment Operating Profit for Each Reporting Segment (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
May 2, 2015
May 3, 2014
Segment Reporting Information [Line Items]
 
 
Net Sales
$ 22,206 
$ 20,774 
Corporate Expenses
7,582 
6,936 
Operating Income
1,448 
1,699 
Other Income (Expense)-Net
234 
(121)
Income Before Income Taxes
1,682 
1,578 
Income Tax Provision
471 
449 
Net Income
1,211 
1,129 
Operating Segments [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Operating Income
2,905 
2,890 
Operating Segments [Member] |
QuickLabel [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Net Sales
15,644 
14,423 
Operating Income
1,977 
2,198 
Operating Segments [Member] |
T&M [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Net Sales
6,562 
6,351 
Operating Income
928 
692 
Corporate Expenses [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Corporate Expenses
$ 1,457 
$ 1,191 
Securities Available for Sale - Additional Information (Detail) (USD $)
3 Months Ended
May 2, 2015
Schedule of Available-for-sale Securities [Line Items]
 
Impairment charges on available for sale security
$ 0 
Minimum [Member]
 
Schedule of Available-for-sale Securities [Line Items]
 
Original maturity of short-term investments
90 days 
Anticipated maturity period
1 month 
Maximum [Member]
 
Schedule of Available-for-sale Securities [Line Items]
 
Anticipated maturity period
21 months 
Securities Available for Sale - Fair Value, Amortized Cost and Gross Unrealized Gains and Losses of the Securities (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
May 2, 2015
Jan. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
 
 
Fair Value
$ 15,837 
$ 15,174 
State and Municipal Obligations [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
15,841 
15,150 
Gross Unrealized Gains
14 
26 
Gross Unrealized Losses
(18)
(2)
Fair Value
$ 15,837 
$ 15,174 
Fair Value - Assets Measured at Fair Value on a Recurring Basis (Detail) (USD $)
In Thousands, unless otherwise specified
May 2, 2015
Jan. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Money Market Funds (included in Cash and Cash Equivalents)
$ 2,409 
$ 3,028 
State and Municipal Obligations (included in Securities Available for Sale)
15,837 
15,174 
Total
18,246 
18,202 
Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Money Market Funds (included in Cash and Cash Equivalents)
2,409 
3,028 
Total
2,409 
3,028 
Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
State and Municipal Obligations (included in Securities Available for Sale)
15,837 
15,174 
Total
$ 15,837 
$ 15,174 
Fair Value - Fair Value Measurements of Assets on Recurring Basis (Detail) (Fair Value, Measurements, Recurring [Member], Level 2 [Member], USD $)
In Thousands, unless otherwise specified
May 2, 2015
Jan. 31, 2015
Fair Value, Measurements, Recurring [Member] |
Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Asset Held for Sale
$ 1,900 
$ 1,900 
Fair Value - Additional Information (Detail) (USD $)
3 Months Ended
Jan. 31, 2015
Jan. 31, 2014
Fair Value Disclosures [Abstract]
 
 
Write-down of Asset Held for Sale
$ 220,000 
$ 779,000 
Accumulated Other Comprehensive Loss - Changes in the Balance of Accumulated Other Comprehensive Income (Loss) (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
May 2, 2015
May 3, 2014
Jan. 31, 2015
Schedule of Capitalization, Equity [Line Items]
 
 
 
Beginning Balance
$ (699)
 
$ (699)
Other comprehensive income (loss)
(10)
89 
 
Ending Balance
(709)
 
(699)
Foreign Currency Translation Adjustments [Member]
 
 
 
Schedule of Capitalization, Equity [Line Items]
 
 
 
Beginning Balance
(714)
 
 
Other comprehensive income (loss)
 
 
Ending Balance
(706)
 
 
Unrealized Holding Gain on Available for Sale Securities [Member]
 
 
 
Schedule of Capitalization, Equity [Line Items]
 
 
 
Beginning Balance
15 
 
 
Other comprehensive income (loss)
(18)
 
 
Ending Balance
$ (3)
 
 
Commitments and Contingencies - Additional Information (Detail) (USD $)
1 Months Ended 3 Months Ended
Jan. 31, 2014
May 2, 2015
May 4, 2013
Commitments and Contingencies Disclosure [Abstract]
 
 
 
Estimated replacement cost
 
 
$ 672,000 
Replacement cost charged against reserve
 
338,000 
 
Other accrued expenses
 
334,000 
 
Amount received from supplier for recovery
$ 450,000 
 
 
Lower product prices period
 
Through fiscal 2017 
 
Line of Credit - Additional Information (Detail) (USD $)
3 Months Ended
May 2, 2015
Line of Credit Facility [Line Items]
 
Revolving line of credit
$ 10,000,000 
Agreement term
3 years 
Line of credit, interest rate description
Any borrowings made under this line of credit bear interest at either a fluctuating base rate equal to the highest of (i) the Prime Rate, (ii) 1.50% above the daily one month LIBOR, and (iii) the Federal Funds Rate in effect plus 1.50% or at a fixed rate of LIBOR plus an agreed upon margin of between 0% and 2.25%, based on the Company's funded debt to EBITDA ratio as defined in the agreement. 
Borrowings against new line of credit
$ 0 
Fixed Charge Coverage Ratio
Funded debt to adjusted EBITDA ratio
1.25 
London Interbank Offered Rate (LIBOR) [Member]
 
Line of Credit Facility [Line Items]
 
Percentage above rate
1.50% 
London Interbank Offered Rate (LIBOR) [Member] |
Minimum [Member]
 
Line of Credit Facility [Line Items]
 
Percentage above rate
0.00% 
London Interbank Offered Rate (LIBOR) [Member] |
Maximum [Member]
 
Line of Credit Facility [Line Items]
 
Percentage above rate
2.25% 
Federal Funds Effective Swap Rate [Member]
 
Line of Credit Facility [Line Items]
 
Percentage above rate
1.50% 
Subsequent Event - Additional Information (Detail) (Subsequent Event [Member], 2015 Equity Incentive Plan [Member])
May 20, 2015
Subsequent Event [Member] |
2015 Equity Incentive Plan [Member]
 
Subsequent Event [Line Items]
 
Number of shares authorized for issuance
500,000