Virginia
|
54-0251350
|
(State or other jurisdiction of incorporation or organization)
|
(IRS employer identification no.)
|
Large accelerated Filer ☐
|
Accelerated filer ☒
|
Non-accelerated Filer ☐ (Do not check if a smaller reporting company)
|
Smaller reporting company ☐
|
|
Emerging growth company ☐
|
Common stock, no par value
|
11,586,391
|
(Class of common stock)
|
(Number of shares)
|
PART I. FINANCIAL INFORMATION
|
|
|
|
|
|
Item 1.
|
3
|
|
|
|
|
Item 2.
|
16
|
|
|
|
|
Item 3.
|
31
|
|
|
|
|
Item 4.
|
32
|
|
|
|
|
PART II. OTHER INFORMATION
|
|
|
|
|
|
Item 6.
|
33
|
|
|
|
|
35
|
As of
|
July 30,
|
January 29,
|
||||||
2017
|
2017
|
|||||||
(unaudited)
|
||||||||
Assets
|
||||||||
Current assets
|
||||||||
Cash and cash equivalents
|
$
|
45,818
|
$
|
39,792
|
||||
Trade accounts receivable, net
|
75,371
|
92,578
|
||||||
Inventories
|
82,036
|
75,303
|
||||||
Prepaid expenses and other current assets
|
4,246
|
4,244
|
||||||
Total current assets
|
207,471
|
211,917
|
||||||
Property, plant and equipment, net
|
25,507
|
25,803
|
||||||
Cash surrender value of life insurance policies
|
23,178
|
22,366
|
||||||
Deferred taxes
|
6,019
|
7,264
|
||||||
Intangible assets
|
25,256
|
25,923
|
||||||
Goodwill
|
23,187
|
23,187
|
||||||
Other assets
|
2,241
|
2,236
|
||||||
Total non-current assets
|
105,388
|
106,779
|
||||||
Total assets
|
$
|
312,859
|
$
|
318,696
|
||||
Liabilities and Shareholders’ Equity
|
||||||||
Current liabilities
|
||||||||
Current portion of term loan
|
$
|
5,822
|
$
|
5,817
|
||||
Trade accounts payable
|
27,712
|
36,552
|
||||||
Accrued salaries, wages and benefits
|
7,049
|
8,394
|
||||||
Income tax accrual
|
953
|
4,323
|
||||||
Customer deposits
|
5,993
|
5,605
|
||||||
Other accrued expenses
|
3,288
|
3,369
|
||||||
Total current liabilities
|
50,817
|
64,060
|
||||||
Long term debt
|
38,858
|
41,772
|
||||||
Deferred compensation
|
11,041
|
10,849
|
||||||
Pension plan
|
3,008
|
3,499
|
||||||
Other long-term liabilities
|
793
|
589
|
||||||
Total long-term liabilities
|
53,700
|
56,709
|
||||||
Total liabilities
|
104,517
|
120,769
|
||||||
Shareholders’ equity
|
||||||||
Common stock, no par value, 20,000 shares authorized,
11,590 and 11,563 shares issued and outstanding on each date
|
40,403
|
39,753
|
||||||
Retained earnings
|
167,434
|
157,688
|
||||||
Accumulated other comprehensive income
|
505
|
486
|
||||||
Total shareholders’ equity
|
208,342
|
197,927
|
||||||
Total liabilities and shareholders’ equity
|
$
|
312,859
|
$
|
318,696
|
Thirteen Weeks Ended
|
Twenty-Six Weeks Ended
|
|||||||||||||||
July 30,
|
July 31,
|
July 30,
|
July 31,
|
|||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
Net sales
|
$
|
156,308
|
$
|
136,163
|
$
|
287,180
|
$
|
257,994
|
||||||||
Cost of sales
|
123,191
|
107,685
|
225,920
|
202,917
|
||||||||||||
Gross profit
|
33,117
|
28,478
|
61,260
|
55,077
|
||||||||||||
Selling and administrative expenses
|
20,989
|
19,441
|
41,690
|
40,385
|
||||||||||||
Intangible asset amortization
|
333
|
813
|
667
|
2,467
|
||||||||||||
Operating income
|
11,795
|
8,224
|
18,903
|
12,225
|
||||||||||||
Other income, net
|
499
|
259
|
722
|
418
|
||||||||||||
Interest expense, net
|
282
|
247
|
533
|
511
|
||||||||||||
Income before income taxes
|
12,012
|
8,236
|
19,092
|
12,132
|
||||||||||||
Income tax expense
|
4,234
|
2,887
|
6,568
|
4,284
|
||||||||||||
Net income
|
$
|
7,778
|
$
|
5,349
|
$
|
12,524
|
$
|
7,848
|
||||||||
Earnings per share
|
||||||||||||||||
Basic
|
$
|
0.67
|
$
|
0.46
|
$
|
1.08
|
$
|
0.68
|
||||||||
Diluted
|
$
|
0.67
|
$
|
0.46
|
$
|
1.08
|
$
|
0.68
|
||||||||
Weighted average shares outstanding:
|
||||||||||||||||
Basic
|
11,565
|
11,533
|
11,554
|
11,524
|
||||||||||||
Diluted
|
11,593
|
11,554
|
11,587
|
11,548
|
||||||||||||
Cash dividends declared per share
|
$
|
0.12
|
$
|
0.10
|
$
|
0.24
|
$
|
0.20
|
Thirteen Weeks Ended
|
Twenty-Six Weeks Ended
|
|||||||||||||||
July 30,
|
July 31,
|
July 30,
|
July 31,
|
|||||||||||||
|
2017
|
2016
|
2017
|
2016
|
||||||||||||
Net Income
|
$
|
7,778
|
$
|
5,349
|
$
|
12,524
|
$
|
7,848
|
||||||||
Other comprehensive income (loss):
|
||||||||||||||||
Amortization of actuarial loss (gain)
|
15
|
(18
|
)
|
31
|
(35
|
)
|
||||||||||
Income tax effect on amortization
|
(6
|
)
|
6
|
(11
|
)
|
12
|
||||||||||
Adjustments to net periodic benefit cost
|
9
|
(12
|
)
|
20
|
(23
|
)
|
||||||||||
Total comprehensive Income
|
$
|
7,787
|
$
|
5,337
|
$
|
12,544
|
$
|
7,825
|
Twenty-Six Weeks Ended
|
||||||||
July 30,
|
July 31,
|
|||||||
2017
|
2016
|
|||||||
Operating Activities:
|
||||||||
Net income
|
$
|
12,524
|
$
|
7,848
|
||||
Adjustments to reconcile net income to net cash
provided by operating activities:
|
||||||||
Depreciation and amortization
|
2,697
|
4,748
|
||||||
Gain on disposal of assets
|
(43
|
)
|
(36
|
)
|
||||
Deferred income tax expense (benefit)
|
1,234
|
(1,875
|
)
|
|||||
Noncash restricted stock and performance awards
|
951
|
832
|
||||||
Provision for doubtful accounts
|
173
|
(506
|
)
|
|||||
Changes in assets and liabilities:
|
||||||||
Trade accounts receivable
|
17,034
|
10,078
|
||||||
Inventories
|
(6,732
|
)
|
4,458
|
|||||
Gain on life insurance policies
|
(478
|
)
|
(541
|
)
|
||||
Prepaid expenses and other current assets
|
185
|
109
|
||||||
Trade accounts payable
|
(9,283
|
)
|
(2,474
|
)
|
||||
Accrued salaries, wages, and benefits
|
(1,559
|
)
|
(1,451
|
)
|
||||
Accrued income taxes
|
(3,371
|
)
|
2,032
|
|||||
Customer deposits
|
388
|
2,304
|
||||||
Other accrued expenses
|
313
|
(1,380
|
)
|
|||||
Deferred compensation
|
(355
|
)
|
(51
|
)
|
||||
Other long-term liabilities
|
207
|
6
|
||||||
Net cash provided by operating activities
|
$
|
13,885
|
$
|
24,101
|
||||
Investing Activities:
|
||||||||
Acquisition of Home Meridian
|
$
|
-
|
$
|
(86,062
|
)
|
|||
Purchases of property and equipment
|
(1,665
|
)
|
(1,160
|
)
|
||||
Proceeds received on notes from sale of assets
|
63
|
96
|
||||||
Proceeds from life insurance premiums
|
-
|
644
|
||||||
Premiums paid on life insurance policies
|
(550
|
)
|
(594
|
)
|
||||
Net cash used in investing activities
|
(2,152
|
)
|
(87,076
|
)
|
||||
Financing Activities:
|
||||||||
Proceeds from long-term debt
|
$
|
-
|
$
|
60,000
|
||||
Payments for long-term debt
|
(2,929
|
)
|
(9,361
|
)
|
||||
Debt issuance cost
|
-
|
(165
|
)
|
|||||
Cash dividends paid
|
(2,778
|
)
|
(2,310
|
)
|
||||
Net cash (used in) provided by financing activities
|
(5,707
|
)
|
48,164
|
|||||
Net increase (decrease) in cash and cash equivalents
|
6,026
|
(14,811
|
)
|
|||||
Cash and cash equivalents - beginning of year
|
39,792
|
53,922
|
||||||
Cash and cash equivalents - end of quarter
|
$
|
45,818
|
$
|
39,111
|
||||
Supplemental disclosure of cash flow information:
|
||||||||
Cash paid for income taxes
|
$
|
8,705
|
$
|
4,120
|
||||
Cash paid for interest, net
|
489
|
391
|
||||||
Non-cash transactions:
|
||||||||
Acquisition cost paid in common stock
|
$
|
-
|
$
|
20,267
|
||||
Increase in property and equipment through accrued purchases
|
50
|
54
|
1. |
Preparation of Interim Financial Statements
|
§
|
the 2018 fiscal year and comparable terminology mean the fiscal year that began January 30, 2017 and will end January 28, 2018; and
|
§
|
the 2017 fiscal year and comparable terminology mean the fiscal year that began February 1, 2016 and ended January 29, 2017.
|
July 30,
|
January 29,
|
|||||||
2017
|
2017
|
|||||||
Trade accounts receivable
|
$
|
82,221
|
$
|
99,378
|
||||
Receivable from factor
|
-
|
6
|
||||||
Other accounts receivable allowances
|
(6,073
|
)
|
(6,298
|
)
|
||||
Allowance for doubtful accounts
|
(777
|
)
|
(508
|
)
|
||||
Accounts receivable
|
$
|
75,371
|
$
|
92,578
|
3. |
Inventories
|
July 30,
|
January 29,
|
|||||||
2017
|
2017
|
|||||||
Finished furniture
|
$
|
91,342
|
$
|
85,520
|
||||
Furniture in process
|
722
|
735
|
||||||
Materials and supplies
|
8,723
|
7,536
|
||||||
Inventories at FIFO
|
100,787
|
93,791
|
||||||
Reduction to LIFO basis
|
(18,751
|
)
|
(18,488
|
)
|
||||
Inventories
|
$
|
82,036
|
$
|
75,303
|
Depreciable Lives
|
July 30,
|
January 29,
|
|||||||||
(In years)
|
2017
|
2017
|
|||||||||
Buildings and land improvements
|
15 - 30
|
$
|
24,015
|
$
|
23,392
|
||||||
Computer software and hardware
|
3 - 10
|
17,661
|
17,308
|
||||||||
Machinery and equipment
|
10
|
5,660
|
5,031
|
||||||||
Leasehold improvements
|
Term of lease
|
7,246
|
7,104
|
||||||||
Furniture and fixtures
|
3 - 8
|
1,946
|
1,903
|
||||||||
Other
|
5
|
561
|
562
|
||||||||
Total depreciable property at cost
|
57,089
|
55,300
|
|||||||||
Less accumulated depreciation
|
33,154
|
31,167
|
|||||||||
Total depreciable property, net
|
23,935
|
24,133
|
|||||||||
Land
|
1,067
|
1,067
|
|||||||||
Construction-in-progress
|
505
|
603
|
|||||||||
Property, plant and equipment, net
|
$
|
25,507
|
$
|
25,803
|
Fair value at July 30, 2017
|
Fair value at January 29, 2017
|
|||||||||||||||||||||||||||||||
Description
|
Level 1
|
Level 2
|
Level 3
|
Total
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Assets measured at fair value
|
||||||||||||||||||||||||||||||||
Company-owned life insurance
|
$
|
-
|
$
|
23,178
|
$
|
-
|
$
|
23,178
|
$
|
-
|
$
|
22,366
|
$
|
-
|
$
|
22,366
|
||||||||||||||||
Pension plan assets*
|
13,881
|
-
|
-
|
13,881
|
13,881
|
-
|
-
|
13,881
|
||||||||||||||||||||||||
July 30,
|
January 29,
|
||||||||
|
Segment
|
2017
|
2017
|
||||||
Non-amortizable Intangible Assets
|
|||||||||
Goodwill
|
Home Meridian
|
$
|
23,187
|
$
|
23,187
|
||||
Trademarks and trade names - Home Meridian
|
Home Meridian
|
11,400
|
11,400
|
||||||
Trademarks and trade names - Bradington-Young
|
Upholstery
|
861
|
861
|
||||||
Trademarks and trade names - Sam Moore
|
Upholstery
|
396
|
396
|
||||||
Total non-amortizable assets
|
$
|
35,844
|
$
|
35,844
|
Amortizable Intangible Assets
|
||||||||||||
Customer
|
||||||||||||
Relationships
|
Trademarks
|
Totals
|
||||||||||
Balance at January 29, 2017
|
$
|
13,091
|
$
|
175
|
$
|
13,266
|
||||||
Amortization
|
(655
|
)
|
(12
|
)
|
(667
|
)
|
||||||
Balance at July 30, 2017
|
$
|
12,436
|
$
|
163
|
$
|
12,599
|
Fiscal Year
|
Amount
|
|||
Remainder of 2018
|
$
|
667
|
||
2019
|
1,334
|
|||
2020
|
1,334
|
|||
2021
|
1,334
|
|||
2022
|
1,334
|
|||
Thereafter
|
6,596
|
|||
$
|
12,599
|
§
|
the Pulaski Furniture Corporation Supplemental Executive Retirement Plan (“SERP”) for certain former executives. The SERP is an unfunded plan and all benefits are paid solely out of our general assets; and
|
§
|
the Pulaski Furniture Corporation Pension Plan (“Pension Plan”) for former Pulaski Furniture Corporation employees.
|
July 30,
|
January 29,
|
|||||||
2017
|
2017
|
|||||||
Accrued salaries, wages and benefits (current portions)
|
||||||||
SRIP
|
$
|
473
|
$
|
473
|
||||
SERP
|
221
|
221
|
||||||
Pension
|
-
|
-
|
||||||
Total current portion
|
$
|
694
|
$
|
694
|
||||
Long-term portions
|
||||||||
SRIP
|
$
|
8,548
|
$
|
8,372
|
||||
SERP
|
2,006
|
2,081
|
||||||
Total deferred compensation*
|
10,554
|
10,453
|
||||||
Pension
|
3,008
|
3,499
|
||||||
Total deferred compensation and pension plans
|
$
|
13,562
|
$
|
13,952
|
||||
Consolidated pension liabilities
|
$
|
14,256
|
$
|
14,646
|
|
Thirteen Weeks Ended
|
Twenty-Six Weeks Ended
|
||||||||||||||
|
July 30,
|
July 31,
|
July 30,
|
July 31,
|
||||||||||||
|
2017
|
2016
|
2017
|
2016
|
||||||||||||
Net periodic benefit costs
|
||||||||||||||||
SRIP:
|
||||||||||||||||
Service cost
|
$
|
76
|
$
|
94
|
$
|
152
|
$
|
187
|
||||||||
Interest cost
|
86
|
85
|
172
|
170
|
||||||||||||
Actuarial loss (gain)
|
15
|
(18
|
)
|
31
|
(35
|
)
|
||||||||||
Total SRIP
|
177
|
161
|
355
|
322
|
||||||||||||
|
||||||||||||||||
SERP:
|
||||||||||||||||
Interest cost
|
21
|
22
|
41
|
44
|
||||||||||||
Total SERP
|
21
|
22
|
41
|
44
|
||||||||||||
|
||||||||||||||||
Pension Plan:
|
||||||||||||||||
Interest cost
|
173
|
187
|
346
|
376
|
||||||||||||
Expected return on pension plan assets
|
(234
|
)
|
(197
|
)
|
(467
|
)
|
(395
|
)
|
||||||||
Expected administrative expenses
|
70
|
70
|
140
|
140
|
||||||||||||
Total Pension Plan
|
9
|
60
|
19
|
121
|
||||||||||||
|
||||||||||||||||
Consolidated net periodic benefit costs
|
$
|
207
|
$
|
243
|
$
|
415
|
$
|
487
|
July 30,
|
January 29,
|
|||||||
2017
|
2017
|
|||||||
Restricted shares
|
19
|
26
|
||||||
Restricted stock units
|
19
|
20
|
||||||
38
|
46
|
Thirteen Weeks Ended
|
Twenty-Six Weeks Ended
|
|||||||||||||||
July 30,
|
July 31,
|
July 30,
|
July 31,
|
|||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
Net income
|
$
|
7,778
|
$
|
5,349
|
$
|
12,524
|
$
|
7,848
|
||||||||
Less: Unvested participating restricted stock dividends
|
3
|
3
|
6
|
5
|
||||||||||||
Net earnings allocated to unvested participating restricted stock
|
16
|
12
|
27
|
18
|
||||||||||||
Earnings available for common shareholders
|
7,759
|
5,334
|
12,491
|
7,825
|
||||||||||||
Weighted average shares outstanding for basic earnings per share
|
11,565
|
11,533
|
11,554
|
11,524
|
||||||||||||
Dilutive effect of unvested restricted stock and RSU awards
|
28
|
21
|
33
|
24
|
||||||||||||
Weighted average shares outstanding for diluted earnings per share
|
11,593
|
11,554
|
11,587
|
11,548
|
||||||||||||
Basic earnings per share
|
$
|
0.67
|
$
|
0.46
|
$
|
1.08
|
$
|
0.68
|
||||||||
Diluted earnings per share
|
$
|
0.67
|
$
|
0.46
|
$
|
1.08
|
$
|
0.68
|
§
|
better understand our performance;
|
§
|
better assess our prospects for future net cash flows; and
|
§
|
make more informed judgments about us as a whole.
|
§
|
Hooker Casegoods, an imported casegoods business;
|
§
|
Upholstery, which includes the domestic upholstery manufacturing operations Bradington-Young and Sam Moore and the imported upholstery operations of Hooker Upholstery;
|
§
|
All other, which includes H Contract and Homeware, two businesses started in 2013. Neither of these segments met the ASC 280 aggregation criteria nor were individually reportable; therefore, we combined them in an “All other” segment in accordance with ASC 280. We note that Homeware failed to reach critical mass and its operations were wound down during the fiscal 2018 second quarter; and
|
§
|
Home Meridian, a business acquired at the beginning of fiscal 2017, is stand-alone, mostly autonomous business that serves a different type or class of customer than do the legacy Hooker businesses and at much lower margins.
|
Thirteen Weeks Ended
|
Twenty-Six Weeks Ended
|
|||||||||||||||||||||||||||||||
July 30,
|
July 31,
|
July 30,
|
July 31,
|
|||||||||||||||||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||||||||||||||||||
% Net
|
% Net
|
% Net
|
% Net
|
|||||||||||||||||||||||||||||
Net Sales
|
Sales
|
Sales
|
Sales
|
Sales
|
||||||||||||||||||||||||||||
Hooker Casegoods
|
$
|
34,880
|
22.3
|
%
|
$
|
33,582
|
24.7
|
%
|
$
|
67,695
|
23.6
|
%
|
$
|
66,510
|
25.8
|
%
|
||||||||||||||||
Upholstery
|
22,364
|
14.3
|
%
|
19,847
|
14.6
|
%
|
44,546
|
15.5
|
%
|
41,740
|
16.2
|
%
|
||||||||||||||||||||
Home Meridian
|
96,403
|
61.7
|
%
|
80,362
|
59.0
|
%
|
170,105
|
59.2
|
%
|
145,338
|
56.3
|
%
|
||||||||||||||||||||
All other
|
2,661
|
1.7
|
%
|
2,372
|
1.7
|
%
|
4,834
|
1.7
|
%
|
4,406
|
1.7
|
%
|
||||||||||||||||||||
Intercompany eliminations
|
-
|
-
|
- |
-
|
||||||||||||||||||||||||||||
Consolidated
|
$
|
156,308
|
100.0
|
%
|
$
|
136,163
|
100
|
%
|
$
|
287,180
|
100.0
|
%
|
$
|
257,994
|
100
|
%
|
||||||||||||||||
Gross Profit
|
||||||||||||||||||||||||||||||||
Hooker Casegoods
|
$
|
10,766
|
30.9
|
%
|
$
|
10,662
|
31.7
|
%
|
$
|
21,638
|
32.0
|
%
|
$
|
20,816
|
31.3
|
%
|
||||||||||||||||
Upholstery
|
5,442
|
24.3
|
%
|
4,642
|
23.4
|
%
|
11,065
|
24.8
|
%
|
9,718
|
23.3
|
%
|
||||||||||||||||||||
Home Meridian
|
16,061
|
16.7
|
%
|
12,413
|
15.4
|
%
|
27,067
|
15.9
|
%
|
23,123
|
15.9
|
%
|
||||||||||||||||||||
All other
|
847
|
31.8
|
%
|
757
|
31.9
|
%
|
1,487
|
30.8
|
%
|
1,413
|
32.1
|
%
|
||||||||||||||||||||
Intercompany eliminations
|
1
|
4
|
3
|
7
|
||||||||||||||||||||||||||||
Consolidated
|
$
|
33,117
|
21.2
|
%
|
$
|
28,478
|
20.9
|
%
|
$
|
61,260
|
21.3
|
%
|
$
|
55,077
|
21.3
|
%
|
||||||||||||||||
Operating Income
|
||||||||||||||||||||||||||||||||
Hooker Casegoods
|
$
|
3,999
|
11.5
|
%
|
$
|
4,341
|
12.9
|
%
|
$
|
7,928
|
11.7
|
%
|
$
|
6,422
|
9.7
|
%
|
||||||||||||||||
Upholstery
|
2,314
|
10.3
|
%
|
1,316
|
6.6
|
%
|
4,608
|
10.3
|
%
|
3,078
|
7.4
|
%
|
||||||||||||||||||||
Home Meridian
|
5,235
|
5.4
|
%
|
2,365
|
2.9
|
%
|
6,051
|
3.6
|
%
|
2,453
|
1.7
|
%
|
||||||||||||||||||||
All other
|
246
|
9.2
|
%
|
198
|
8.4
|
%
|
313
|
6.5
|
%
|
265
|
6.0
|
%
|
||||||||||||||||||||
Intercompany eliminations
|
1
|
4
|
3
|
7
|
||||||||||||||||||||||||||||
Consolidated
|
$
|
11,795
|
7.5
|
%
|
$
|
8,224
|
6.0
|
%
|
$
|
18,903
|
6.6
|
%
|
$
|
12,225
|
4.7
|
%
|
||||||||||||||||
Capital Expenditures
|
||||||||||||||||||||||||||||||||
Hooker Casegoods
|
$
|
464
|
$
|
342
|
$
|
966
|
$
|
722
|
||||||||||||||||||||||||
Upholstery
|
144
|
174
|
207
|
208
|
||||||||||||||||||||||||||||
Home Meridian
|
190
|
(59
|
)
|
492
|
230
|
|||||||||||||||||||||||||||
All other
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||
Consolidated
|
$
|
798
|
$
|
457
|
$
|
1,665
|
$
|
1,160
|
||||||||||||||||||||||||
Depreciation
|
||||||||||||||||||||||||||||||||
& Amortization
|
||||||||||||||||||||||||||||||||
Hooker Casegoods
|
$
|
479
|
$
|
548
|
$
|
983
|
$
|
1,084
|
||||||||||||||||||||||||
Upholstery
|
193
|
236
|
391
|
465
|
||||||||||||||||||||||||||||
Home Meridian
|
663
|
1,176
|
1,318
|
3,194
|
||||||||||||||||||||||||||||
All other
|
3
|
3
|
5
|
5
|
||||||||||||||||||||||||||||
Consolidated
|
$
|
1,338
|
$
|
1,963
|
$
|
2,697
|
$
|
4,748
|
As of
July 30,
|
As of
January 29,
|
|||||||||||||||||||||||||||||||
2017
|
%Total
|
|
2017
|
%Total
|
||||||||||||||||||||||||||||
Identifiable Assets
|
Assets
|
|
Assets
|
|||||||||||||||||||||||||||||
Hooker Casegoods
|
$
|
133,721
|
42.7
|
%
|
|
|
|
$
|
130,917
|
41.1
|
%
|
|
|
|||||||||||||||||||
Upholstery
|
34,493
|
11.0
|
%
|
|
|
32,275
|
10.1
|
%
|
|
|||||||||||||||||||||||
Home Meridian
|
144,111
|
46.1
|
%
|
|
|
154,954
|
48.6
|
%
|
|
|||||||||||||||||||||||
All other
|
534
|
0.2
|
%
|
|
|
554
|
0.2
|
%
|
|
|||||||||||||||||||||||
Intercompany eliminations
|
-
|
|
|
|
(4
|
)
|
0.0
|
%
|
|
|||||||||||||||||||||||
Consolidated
|
$
|
312,859
|
100.0
|
%
|
|
|
$
|
318,696
|
100
|
%
|
|
Net Sales (in thousands)
|
||||||||||||||||||||||||||||||||
Thirteen Weeks Ended
|
Twenty-Six Weeks Ended
|
|||||||||||||||||||||||||||||||
July 30,
|
July 31,
|
July 30,
|
July 31,
|
|||||||||||||||||||||||||||||
2017
|
%Total
|
2016
|
%Total
|
2017
|
%Total
|
2016
|
%Total
|
|||||||||||||||||||||||||
Casegoods
|
$
|
106,851
|
68
|
%
|
$
|
88,848
|
65
|
%
|
$
|
201,534
|
70
|
%
|
$
|
178,045
|
69
|
%
|
||||||||||||||||
Upholstery
|
49,457
|
32
|
%
|
47,315
|
35
|
%
|
85,646
|
30
|
%
|
79,949
|
31
|
%
|
||||||||||||||||||||
$
|
156,308
|
100
|
%
|
$
|
136,163
|
100
|
%
|
$
|
287,180
|
100
|
%
|
$
|
257,994
|
100
|
%
|
§
|
general economic or business conditions, both domestically and internationally, and instability in the financial and credit markets, including their potential impact on our (i) sales and operating costs and access to financing or (ii) customers and suppliers and their ability to obtain financing or generate the cash necessary to conduct their respective businesses;
|
§
|
the risks specifically related to the concentrations of a material part of our of sales and accounts receivable in only a few customers;
|
§
|
achieving and managing growth and change, and the risks associated with new business lines, acquisitions (including the proposed Shenandoah Acquisition), restructurings, strategic alliances and international operations;
|
§
|
risks associated with our reliance on offshore sourcing and the cost of imported goods, including fluctuation in the prices of purchased finished goods and transportation and warehousing costs;
|
§
|
adverse political acts or developments in, or affecting, the international markets from which we import products, including duties or tariffs imposed on those products by foreign governments or the U.S. government, including the implementation of a possible border-adjustment tax;
|
§
|
our ability to successfully implement our business plan to increase sales and improve financial performance;
|
§
|
changes in actuarial assumptions, the interest rate environment, the return on plan assets and future funding obligations related to the Pension Plan, which can affect future funding obligations, costs and plan liabilities;
|
§
|
the possible impairment of our long-lived assets, which can result in reduced earnings and net worth;
|
§
|
the cost and difficulty of marketing and selling our products in foreign markets;
|
§
|
disruptions involving our vendors or the transportation and handling industries, particularly those affecting imported products from Vietnam and China, including customs issues, labor stoppages, strikes or slowdowns and the availability of shipping containers and cargo ships;
|
§
|
the interruption, inadequacy, security breaches or integration failure of our information systems or information technology infrastructure, related service providers or the internet;
|
§
|
disruptions affecting our Virginia, North Carolina or California warehouses, our Virginia or North Carolina administrative facilities or our representative offices in Vietnam and China;
|
§
|
when or whether our new business initiatives, meet growth and profitability targets;
|
§
|
price competition in the furniture industry;
|
§
|
changes in domestic and international monetary policies and fluctuations in foreign currency exchange rates affecting the price of our imported products and raw materials;
|
§
|
the cyclical nature of the furniture industry, which is particularly sensitive to changes in consumer confidence, the amount of consumers’ income available for discretionary purchases, and the availability and terms of consumer credit;
|
§
|
risks associated with domestic manufacturing operations, including fluctuations in capacity utilization and the prices and availability of key raw materials, as well as changes in transportation, warehousing and domestic labor costs and environmental compliance and remediation costs;
|
§
|
risks associated with distribution through third-party retailers, such as non-binding dealership arrangements;
|
§
|
capital requirements and costs, including the servicing of our floating-rate term loans;
|
§
|
competition from non-traditional outlets, such as catalog and internet retailers and home improvement centers;
|
§
|
changes in consumer preferences, including increased demand for lower-quality, lower-priced furniture due to, among other things, declines in consumer confidence, amounts of discretionary income available for furniture purchases and the availability of consumer credit;
|
§
|
higher than expected costs associated with product quality and safety, including regulatory compliance costs related to the sale of consumer products and costs related to defective or non-compliant products; and
|
§
|
higher than expected employee medical and workers’ compensation costs that may increase the cost of our self-insured healthcare and workers’ compensation plans.
|
§
|
the 2018 fiscal year and comparable terminology mean the fiscal year that began January 30, 2017 and will end January 28, 2018; and
|
§
|
the 2017 fiscal year and comparable terminology mean the fiscal year that began February 1, 2016 and ended January 29, 2017.
|
§
|
Gross profit. Consolidated gross profit increased in absolute terms and as a percentage of net sales for the fiscal 2018 second quarter due primarily to gross profit improvements in our Home Meridian segment due to higher net sales and customer mix. Upholstery segment gross profit increased due to increased net sales at both Hooker Upholstery and Bradington-Young. Consolidated gross profit increased in absolute terms for the fiscal 2018 first half due primarily to increased sales in our Home Meridian and Upholstery segments, but remained flat as a percentage of net sales for the fiscal 2018 first half.
|
§
|
Selling and administrative expenses. During the fiscal 2018 second quarter, consolidated selling and administrative (S&A) expenses increased in absolute terms primarily due to higher selling, bonus and professional expenses. During the 2018 first half, consolidated S&A expenses increased in absolute terms primarily due to higher selling, bonus and bad debt expense. Consolidated S&A expenses as a percentage of net sales decreased due to increased net sales.
|
§
|
Intangible asset amortization expense. The Home Meridian segment recorded amortization expense of $334,000 in the fiscal 2018 second quarter and $667,000 in the fiscal 2018 first half for HMI Acquisition-related intangibles, compared to $813,000 and $2.5 million in the comparable prior year periods.
|
§
|
Operating income. Consolidated operating income increased $3.6 million or 43.4% in the fiscal 2018 second quarter and increased $6.7 million or 54.6% in the fiscal 2018 first half, due to the factors discussed above and in greater detail below.
|
Thirteen Weeks Ended
|
Twenty-Six Weeks Ended
|
|||||||||||||||
July 30,
|
July 31,
|
July 30,
|
July 31,
|
|||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
Net sales
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
||||||||
Cost of sales
|
78.8
|
79.1
|
78.7
|
78.7
|
||||||||||||
Gross profit
|
21.2
|
20.9
|
21.3
|
21.3
|
||||||||||||
Selling and administrative expenses
|
13.4
|
14.3
|
14.5
|
15.7
|
||||||||||||
Intangible asset amortization
|
0.2
|
0.6
|
0.2
|
1.0
|
||||||||||||
Operating income
|
7.5
|
6.0
|
6.6
|
4.7
|
||||||||||||
Other income, net
|
0.3
|
0.2
|
0.3
|
0.2
|
||||||||||||
Interest expense, net
|
0.2
|
0.2
|
0.2
|
0.2
|
||||||||||||
Income before income taxes
|
7.7
|
6.0
|
6.6
|
4.7
|
||||||||||||
Income tax expense
|
2.7
|
2.1
|
2.3
|
1.7
|
||||||||||||
Net income
|
5.0
|
3.9
|
4.4
|
3.0
|
Net Sales
|
||||||||||||||||||||||||
Thirteen Weeks Ended
|
||||||||||||||||||||||||
July 30, 2017
|
July 31, 2016
|
$ Change
|
% Change
|
|||||||||||||||||||||
% Net Sales
|
% Net Sales
|
|||||||||||||||||||||||
Hooker Casegoods
|
$
|
34,880
|
22.3
|
%
|
$
|
33,582
|
24.7
|
%
|
$
|
1,298
|
3.9
|
%
|
||||||||||||
Upholstery
|
22,364
|
14.3
|
%
|
19,847
|
14.6
|
%
|
2,517
|
12.7
|
%
|
|||||||||||||||
Home Meridian
|
96,403
|
61.7
|
%
|
80,362
|
59.0
|
%
|
16,041
|
20.0
|
%
|
|||||||||||||||
All Other
|
2,661
|
1.7
|
%
|
2,372
|
1.7
|
%
|
289
|
12.2
|
%
|
|||||||||||||||
Intercompany Eliminations
|
-
|
-
|
-
|
|||||||||||||||||||||
Consolidated
|
156,308
|
100
|
%
|
136,163
|
100
|
%
|
20,145
|
14.8
|
%
|
Unit Volume
|
FY18 Q2 %
Increase
vs. FY17 Q2
|
Average Selling Price
(ASP)
|
FY18 Q2 %
Increase
vs. FY17 Q2
|
|||||||
Hooker Casegoods
|
0.9
|
%
|
Hooker Casegoods
|
3.4
|
%
|
|||||
Upholstery
|
13.5
|
%
|
Upholstery
|
-0.9
|
%
|
|||||
Home Meridian
|
31.7
|
%
|
Home Meridian
|
-11.0
|
%
|
|||||
All Other
|
-11.2
|
%
|
All Other
|
27.0
|
%
|
|||||
Consolidated
|
26.0
|
%
|
Consolidated
|
-9.9
|
%
|
Gross Income and Margin
|
||||||||||||||||||||||||
Thirteen Weeks Ended
|
||||||||||||||||||||||||
July 30, 2017
|
July 31, 2016
|
$ Change
|
% Change
|
|||||||||||||||||||||
% Net Sales
|
% Net Sales
|
|||||||||||||||||||||||
Hooker Casegoods
|
$
|
10,766
|
30.9
|
%
|
$
|
10,662
|
31.7
|
%
|
$
|
104
|
1.0
|
%
|
||||||||||||
Upholstery
|
5,442
|
24.3
|
%
|
4,642
|
23.4
|
%
|
800
|
17.2
|
%
|
|||||||||||||||
Home Meridian
|
16,061
|
16.7
|
%
|
12,413
|
15.4
|
%
|
3,648
|
29.4
|
%
|
|||||||||||||||
All Other
|
847
|
31.8
|
%
|
757
|
31.9
|
%
|
90
|
11.9
|
%
|
|||||||||||||||
Intercompany Eliminations
|
1
|
4
|
(3
|
)
|
-75.0
|
%
|
||||||||||||||||||
Consolidated
|
$
|
33,117
|
21.2
|
%
|
$
|
28,478
|
20.9
|
%
|
$
|
4,639
|
16.3
|
%
|
Selling and Administrative Expenses
|
||||||||||||||||||||||||
Thirteen Weeks Ended
|
||||||||||||||||||||||||
July 30, 2017
|
July 31, 2016
|
$ Change
|
% Change
|
|||||||||||||||||||||
% Net Sales
|
% Net Sales
|
|||||||||||||||||||||||
Hooker Casegoods
|
$
|
6,766
|
19.4
|
%
|
$
|
6,321
|
18.8
|
%
|
$
|
445
|
7.0
|
%
|
||||||||||||
Upholstery
|
3,128
|
14.0
|
%
|
3,326
|
16.8
|
%
|
(198
|
)
|
-6.0
|
%
|
||||||||||||||
Home Meridian
|
10,494
|
10.9
|
%
|
9,235
|
11.5
|
%
|
1,259
|
13.6
|
%
|
|||||||||||||||
All Other
|
601
|
22.6
|
%
|
559
|
23.6
|
%
|
42
|
7.5
|
%
|
|||||||||||||||
Consolidated
|
$
|
20,989
|
13.4
|
%
|
$
|
19,441
|
14.3
|
%
|
$
|
1,548
|
8.0
|
%
|
Intangible Asset Amortization
|
||||||||||||||||||||||||
Thirteen Weeks Ended
|
||||||||||||||||||||||||
July 30, 2017
|
July 31, 2016
|
$ Change
|
% Change
|
|||||||||||||||||||||
Home Meridian
|
% Net Sales
|
% Net Sales
|
||||||||||||||||||||||
Intangible asset amortization
|
$
|
333
|
0.2
|
%
|
$
|
813
|
0.6
|
%
|
$
|
(480
|
)
|
-59.0
|
%
|
Operating Profit and Margin
|
||||||||||||||||||||||||
Thirteen Weeks Ended
|
||||||||||||||||||||||||
July 30, 2017
|
July 31, 2016
|
$ Change
|
% Change
|
|||||||||||||||||||||
% Net Sales
|
% Net Sales
|
|||||||||||||||||||||||
Hooker Casegoods
|
$
|
3,999
|
11.5
|
%
|
$
|
4,341
|
12.9
|
%
|
$
|
(342
|
)
|
-7.9
|
%
|
|||||||||||
Upholstery
|
2,314
|
10.3
|
%
|
1,316
|
6.6
|
%
|
998
|
75.8
|
%
|
|||||||||||||||
Home Meridian
|
5,235
|
5.4
|
%
|
2,365
|
2.9
|
%
|
2,870
|
121.4
|
%
|
|||||||||||||||
All Other
|
246
|
9.2
|
%
|
198
|
8.4
|
%
|
48
|
24.2
|
%
|
|||||||||||||||
Intercompany Eliminations
|
1
|
4
|
(3
|
)
|
-75.0
|
%
|
||||||||||||||||||
Consolidated
|
$
|
11,795
|
7.5
|
%
|
$
|
8,224
|
6.0
|
%
|
$
|
3,571
|
43.4
|
%
|
Interest Expense, net
Thirteen Weeks Ended
|
||||||||||||||||||||||||
July 30, 2017
|
July 31, 2016
|
$ Change
|
% Change
|
|||||||||||||||||||||
% Net Sales
|
% Net Sales
|
|||||||||||||||||||||||
Consolidated interest expense, net
|
$
|
282
|
0.2
|
%
|
$
|
247
|
0.2
|
%
|
$
|
35
|
14.2
|
%
|
Income taxes
|
||||||||||||||||||||||||
Thirteen Weeks Ended
|
||||||||||||||||||||||||
July 30, 2017
|
July 31, 2016
|
$ Change
|
% Change
|
|||||||||||||||||||||
% Net Sales
|
% Net Sales
|
|||||||||||||||||||||||
Consolidated income tax expense
|
$
|
4,234
|
2.7
|
%
|
$
|
2,887
|
2,1
|
%
|
$
|
1,347
|
46.7
|
%
|
||||||||||||
Effective Tax Rate
|
35.2
|
%
|
35.1
|
%
|
Net Income
|
||||||||||||||||||||||||
Thirteen Weeks Ended
|
||||||||||||||||||||||||
July 30, 2017
|
July 31, 2016
|
$ Change
|
% Change
|
|||||||||||||||||||||
Net Income
|
% Net Sales
|
% Net Sales
|
||||||||||||||||||||||
Consolidated
|
$
|
7,778
|
5.0
|
%
|
$
|
5,349
|
3.9
|
%
|
$
|
2,429
|
45.4
|
%
|
||||||||||||
Earnings per share
|
$
|
0.67
|
$
|
0.46
|
|
Net Sales
|
|||||||||||||||||||||||
|
Twenty-Six Weeks Ended
|
|||||||||||||||||||||||
|
July 30, 2017
|
July 31, 2016
|
$ Change
|
% Change
|
||||||||||||||||||||
|
% Net Sales
|
% Net Sales
|
||||||||||||||||||||||
Hooker Casegoods
|
$
|
67,695
|
23.6
|
%
|
$
|
66,510
|
25.8
|
%
|
$
|
1,185
|
1.8
|
%
|
||||||||||||
Upholstery
|
44,546
|
15.5
|
%
|
41,740
|
16.2
|
%
|
2,806
|
6.7
|
%
|
|||||||||||||||
Home Meridian
|
170,105
|
59.2
|
%
|
145,338
|
56.3
|
%
|
24,767
|
17.0
|
%
|
|||||||||||||||
All Other
|
4,834
|
1.7
|
%
|
4,406
|
1.7
|
%
|
428
|
9.7
|
%
|
|||||||||||||||
Intercompany Eliminations
|
-
|
-
|
-
|
|||||||||||||||||||||
Consolidated
|
287,180
|
100
|
%
|
257,994
|
100
|
%
|
29,186
|
11.3
|
%
|
Unit Volume
|
FY18 YTD %
Increase
vs. FY17 YTD
|
Average Selling Price (ASP)
|
FY18 YTD %
Increase
vs. FY17 YTD
|
|||||||
Hooker Casegoods
|
0.7
|
%
|
Hooker Casegoods
|
1.2
|
%
|
|||||
Upholstery
|
8.1
|
%
|
Upholstery
|
-1.7
|
%
|
|||||
Home Meridian
|
26.4
|
%
|
Home Meridian
|
-7.3
|
%
|
|||||
All Other
|
-0.8
|
%
|
All Other
|
10.6
|
%
|
|||||
Consolidated
|
21.5
|
%
|
Consolidated
|
-8.2
|
%
|
Gross Income and Margin
|
||||||||||||||||||||||||
Twenty-Six Weeks Ended
|
||||||||||||||||||||||||
July 30, 2017
|
July 31, 2016
|
$ Change
|
% Change
|
|||||||||||||||||||||
% Net Sales
|
% Net Sales
|
|||||||||||||||||||||||
Hooker Casegoods
|
$
|
21,638
|
32.0
|
%
|
$
|
20,816
|
31.3
|
%
|
$
|
822
|
3.9
|
%
|
||||||||||||
Upholstery
|
11,065
|
24.8
|
%
|
9,718
|
23.3
|
%
|
1,347
|
13.9
|
%
|
|||||||||||||||
Home Meridian
|
27,067
|
15.9
|
%
|
23,123
|
15.9
|
%
|
3,944
|
17.1
|
%
|
|||||||||||||||
All Other
|
1,487
|
30.8
|
%
|
1,413
|
32.1
|
%
|
74
|
5.2
|
%
|
|||||||||||||||
Intercompany Eliminations
|
3
|
7
|
(4
|
)
|
-57.1
|
%
|
||||||||||||||||||
Consolidated
|
$
|
61,260
|
21.3
|
%
|
$
|
55,077
|
21.3
|
%
|
$
|
6,183
|
11.2
|
%
|
Selling and Administrative Expenses
|
||||||||||||||||||||||||
Twenty-Six Weeks Ended
|
||||||||||||||||||||||||
July 30, 2017
|
July 31, 2016
|
$ Change
|
% Change
|
|||||||||||||||||||||
% Net Sales
|
% Net Sales
|
|||||||||||||||||||||||
Hooker Casegoods
|
$
|
13,710
|
20.3
|
%
|
$
|
14,394
|
21.6
|
%
|
$
|
(684
|
)
|
-4.8
|
%
|
|||||||||||
Upholstery
|
6,457
|
14.5
|
%
|
6,640
|
15.9
|
%
|
(183
|
)
|
-2.8
|
%
|
||||||||||||||
Home Meridian
|
20,349
|
12.0
|
%
|
18,203
|
12.5
|
%
|
2,146
|
11.8
|
%
|
|||||||||||||||
All Other
|
1,174
|
24.3
|
%
|
1,148
|
26.1
|
%
|
26
|
2.3
|
%
|
|||||||||||||||
Consolidated
|
$
|
41,690
|
14.5
|
%
|
$
|
40,385
|
15.7
|
%
|
$
|
1,305
|
3.2
|
%
|
Intangible Asset Amortization
|
||||||||||||||||||||||||
Twenty-Six Weeks Ended
|
||||||||||||||||||||||||
July 30, 2017
|
July 31, 2016
|
$ Change
|
% Change
|
|||||||||||||||||||||
Home Meridian
|
% Net Sales
|
% Net Sales
|
||||||||||||||||||||||
Intangible asset amortization
|
$
|
667
|
0.2
|
%
|
$
|
2,467
|
1.0
|
%
|
$
|
(1,800
|
)
|
-73.0
|
%
|
Operating Profit and Margin
|
||||||||||||||||||||||||
Twenty-Six Weeks Ended
|
||||||||||||||||||||||||
July 30, 2017
|
July 31, 2016
|
$ Change
|
% Change
|
|||||||||||||||||||||
% Net Sales
|
% Net Sales
|
|||||||||||||||||||||||
Hooker Casegoods
|
$
|
7,928
|
11.7
|
%
|
$
|
6,422
|
9.7
|
%
|
$
|
1,506
|
23.5
|
%
|
||||||||||||
Upholstery
|
4,608
|
10.3
|
%
|
3,078
|
7.4
|
%
|
1,530
|
49.7
|
%
|
|||||||||||||||
Home Meridian
|
6,051
|
3.6
|
%
|
2,453
|
1.7
|
%
|
3,598
|
146.7
|
%
|
|||||||||||||||
All Other
|
313
|
6.5
|
%
|
265
|
6.0
|
%
|
48
|
18.1
|
%
|
|||||||||||||||
Intercompany Eliminations
|
3
|
7
|
(4
|
)
|
-57.1
|
%
|
||||||||||||||||||
Consolidated
|
$
|
18,903
|
6.6
|
%
|
$
|
12,225
|
4.7
|
%
|
$
|
6,678
|
54.6
|
%
|
Interest Expense, net
|
||||||||||||||||||||||||
Twenty-Six Weeks Ended
|
||||||||||||||||||||||||
July 30, 2017
|
July 31, 2016
|
$ Change
|
% Change
|
|||||||||||||||||||||
% Net Sales
|
% Net Sales
|
|||||||||||||||||||||||
Consolidated interest expense, net
|
$
|
533
|
0.2
|
%
|
$
|
511
|
0.2
|
%
|
$
|
22
|
4.3
|
%
|
Income taxes
|
||||||||||||||||||||||||
Twenty-Six Weeks Ended
|
||||||||||||||||||||||||
July 30, 2017
|
July 31, 2016
|
$ Change
|
% Change
|
|||||||||||||||||||||
% Net Sales
|
% Net Sales
|
|||||||||||||||||||||||
Consolidated income tax expense
|
$
|
6,568
|
2.3
|
%
|
$
|
4,284
|
1.7
|
%
|
$
|
2,284
|
53.3
|
%
|
||||||||||||
Effective Tax Rate
|
34.4
|
%
|
35.3
|
%
|
Net Income
|
||||||||||||||||||||||||
Twenty-Six Weeks Ended
|
||||||||||||||||||||||||
July 30, 2017
|
July 31, 2016
|
$ Change
|
% Change
|
|||||||||||||||||||||
Net Income
|
% Net Sales
|
% Net Sales
|
||||||||||||||||||||||
Consolidated
|
$
|
12,524
|
4.4
|
%
|
$
|
7,848
|
3.0
|
%
|
$
|
4,676
|
59.6
|
%
|
||||||||||||
Earnings per share
|
$
|
1.08
|
$
|
0.68
|
Twenty-Six Weeks Ended
|
||||||||
July 30,
|
July 31,
|
|||||||
2017
|
2016
|
|||||||
Net cash provided by operating activities
|
$
|
13,885
|
$
|
24,101
|
||||
Net cash used in investing activities
|
(2,152
|
)
|
(87,076
|
)
|
||||
Net cash (used in) provided by financing activities
|
(5,707
|
)
|
48,164
|
|||||
Net increase (decrease) in cash and cash equivalents
|
$
|
6,026
|
$
|
(14,811
|
)
|
§
|
available cash and cash equivalents, which are highly dependent on incoming order rates and our operating performance;
|
§
|
expected cash flow from operations; and
|
§
|
available lines of credit.
|
§
|
capital expenditures;
|
§
|
working capital, including capital required to fund our Pension Plan, SERP and SRIP plans;
|
§
|
the payment of regular quarterly cash dividends on our common stock; and
|
§
|
the servicing of our HMI Acquisition-related debt and any additional debt incurred as a result of the Shenandoah Acquisition.
|
§
|
Unsecured revolving credit facility. The Loan Agreement increased the amount available under our existing unsecured revolving credit facility from $15 million to $30 million and increased the sublimit of the facility available for the issuance of letters of credit from $3 million to $4 million. Amounts outstanding under the revolving facility bear interest at a rate, adjusted monthly, equal to the then-current LIBOR monthly rate plus 1.50%. We must also pay a quarterly unused commitment fee that is based on the average daily amount of the facility utilized during the applicable quarter;
|
§
|
Unsecured Term Loan. The Loan Agreement provided us with a $41 million Unsecured Term Loan. Any amount borrowed under the Unsecured Term Loan will bear interest at a rate, adjusted monthly, equal to the then-current LIBOR monthly rate plus 1.50%. We must repay any principal amount borrowed under the Unsecured Term Loan in monthly installments of approximately $490,000, together with any accrued interest, until the full amount borrowed is repaid or until February 1, 2021, at which time all amounts outstanding under the Unsecured Term Loan will become due and payable; and
|
§
|
Secured Term Loan. The Loan Agreement provided us with a $19 million term loan secured by a security interest in certain Company-owned life insurance policies granted to BofA under a security agreement, dated as of February 1, 2016 (the “Security Agreement”). Any amounts borrowed under the Secured Term Loan will bear interest at a rate, adjusted monthly, equal to the then-current LIBOR monthly rate plus 0.50%. We must pay the interest accrued on any principal amounts borrowed under the Secured Term Loan on a monthly basis until the full principal amount borrowed is repaid or until February 1, 2021, at which time all amounts outstanding under the Secured Term Loan will become due and payable. BofA’s rights under the Security Agreement are enforceable upon the occurrence of an event of default under the Loan Agreement.
|
§
|
Maintain a tangible net worth of at least:
|
□
|
As of the fiscal year-end January 31, 2016, $105.0 million plus 40% of net income before taxes earned in the 2016 fiscal year; and
|
□
|
As of the end of each subsequent fiscal year, the minimum tangible net worth required for the prior fiscal year, plus 40% of net income, before taxes, earned in each subsequent fiscal year.
|
§
|
Maintain a ratio of funded debt to EBITDA not exceeding:
|
□
|
2.50:1.0 through August 31, 2017;
|
□
|
2.25:1.0 through August 31, 2018;
|
□
|
2.00:1.0 thereafter.
|
§
|
A basic fixed charge coverage ratio of at least 1.25:1.00; and
|
§
|
Limit capital expenditures to no more than $15.0 million during any fiscal year with expenditures to acquire fixed assets pursuant to the HMI Acquisition being excluded for the fiscal 2017.
|
3.1
|
|
|
|
3.2
|
|
|
|
4.1
|
Amended and Restated Articles of Incorporation of the Company, as amended (See Exhibit 3.1)
|
|
|
4.2
|
Amended and Restated Bylaws of the Company, as amended (See Exhibit 3.2)
|
|
|
31.1*
|
|
|
|
31.2*
|
|
|
|
32.1**
|
|
|
|
101*
|
The following financial statements from the Company’s Quarterly Report on Form 10-Q for the quarter ended July 30, 2017, formatted in Extensible Business Reporting Language (“XBRL”): (i) condensed consolidated balance sheets, (ii) condensed consolidated statements of income, (iii) condensed consolidated statements of comprehensive income, (iv) condensed consolidated statements of cash flows, and (v) the notes to the condensed consolidated financial statements
|
Date: September 8, 2017 |
By: /s/Paul A. Huckfeldt
Paul A. Huckfeldt
Chief Financial Officer and
Senior Vice President – Finance and
Accounting
|
Date: September 8, 2017 |
By: /s/ Paul B. Toms, Jr
Paul B. Toms, Jr.
Chairman and Chief Executive Officer
|
Date: September 8, 2017 |
By: /s/Paul A. Huckfeldt
Paul A. Huckfeldt
Chief Financial Officer and
Senior Vice President - Finance and Accounting
|
a.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
b.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date: September 8, 2017 |
By: /s/ Paul B. Toms, Jr.
Paul B. Toms, Jr.
Chairman and Chief Executive Officer
|
By: /s/Paul A. Huckfeldt
Paul A. Huckfeldt
Chief Financial Officer and
Senior Vice President - Finance and Accounting
|
Document And Entity Information - shares |
6 Months Ended | |
---|---|---|
Jul. 30, 2017 |
Sep. 01, 2017 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Hooker Furniture Corp | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --01-28 | |
Entity Common Stock, Shares Outstanding | 11,586,391 | |
Amendment Flag | false | |
Entity Central Index Key | 0001077688 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Accelerated Filer | |
Entity Well-known Seasoned Issuer | No | |
Document Period End Date | Jul. 30, 2017 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q2 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - shares shares in Thousands |
Jul. 30, 2017 |
Jan. 29, 2017 |
---|---|---|
Common stock, shares authorized | 20,000 | 20,000 |
Common stock, shares issued | 11,590 | 11,563 |
Common stock, shares outstanding | 11,590 | 11,563 |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 30, 2017 |
Jul. 31, 2016 |
Jul. 30, 2017 |
Jul. 31, 2016 |
|
Net sales | $ 156,308 | $ 136,163 | $ 287,180 | $ 257,994 |
Cost of sales | 123,191 | 107,685 | 225,920 | 202,917 |
Gross profit | 33,117 | 28,478 | 61,260 | 55,077 |
Selling and administrative expenses | 20,989 | 19,441 | 41,690 | 40,385 |
Intangible asset amortization | 333 | 813 | 667 | 2,467 |
Operating income | 11,795 | 8,224 | 18,903 | 12,225 |
Other income, net | 499 | 259 | 722 | 418 |
Interest expense, net | 282 | 247 | 533 | 511 |
Income before income taxes | 12,012 | 8,236 | 19,092 | 12,132 |
Income tax expense | 4,234 | 2,887 | 6,568 | 4,284 |
Net income | $ 7,778 | $ 5,349 | $ 12,524 | $ 7,848 |
Earnings per share | ||||
Basic (in Dollars per share) | $ 0.67 | $ 0.46 | $ 1.08 | $ 0.68 |
Diluted (in Dollars per share) | $ 0.67 | $ 0.46 | $ 1.08 | $ 0.68 |
Weighted average shares outstanding: | ||||
Basic (in Shares) | 11,565 | 11,533 | 11,554 | 11,524 |
Diluted (in Shares) | 11,593 | 11,554 | 11,587 | 11,548 |
Cash dividends declared per share (in Dollars per share) | $ 0.12 | $ 0.10 | $ 0.24 | $ 0.20 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands |
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Net Income | $ 7,778 | $ 5,349 | $ 12,524 | $ 7,848 |
Other comprehensive income (loss): | ||||
Amortization of actuarial loss (gain) | 15 | (18) | 31 | (35) |
Income tax effect on amortization | (6) | 6 | (11) | 12 |
Adjustments to net periodic benefit cost | 9 | (12) | 20 | (23) |
Total comprehensive Income | $ 7,787 | $ 5,337 | $ 12,544 | $ 7,825 |
1. Preparation of Interim Financial Statements |
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Disclosure Text Block [Abstract] | |||||||
Business Description and Basis of Presentation [Text Block] |
The condensed consolidated financial statements of Hooker Furniture Corporation and subsidiaries (referred to as “we,” “us,” “our,” “Hooker” or the “Company”) have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of management, these statements include all adjustments necessary for a fair statement of the results of all interim periods reported herein. All such adjustments are of a normal recurring nature. Certain information and footnote disclosures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) are condensed or omitted pursuant to SEC rules and regulations. However, we believe that the disclosures made are adequate for a fair presentation of our results of operations and financial position. These financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes included in our annual report on Form 10-K for the fiscal year ended January 29, 2017 (“2017 Annual Report”). The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect both the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from our estimates. Operating results for the interim periods reported herein may not be indicative of the results expected for the fiscal year. The financial statements contained herein are being filed as part of a quarterly report on Form 10-Q covering the thirteen-week period (also referred to as “three months,” “three-month period,” “quarter,” “second quarter” or “quarterly period”) that began May 1, 2017, and the twenty-six week period (also referred to as “six months,” “six-month period” or “first half”) that began January 30, 2017, which both ended July 30, 2017, compared to the thirteen-week period that began May 2, 2016 and the twenty-six week period that began February 1, 2016, which both ended July 31, 2016. References in these notes to the condensed consolidated financial statements of the Company to:
We adopted Accounting Standard’s Update (“ASU”) No. 2016-09, “Improvements to Employee Share-Based Payment Accounting” in the first quarter of fiscal 2018. This ASU simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. Under this ASU, we recognize all excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement rather than as a change to paid-in capital. The ASU was effective for annual reporting periods after December 15, 2016, including interim periods within those fiscal years. The adoption of this guidance did not have a material impact upon our financial condition or results of operations. We adopted ASU 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory” in the first quarter of fiscal 2018. ASU 2015-11 requires that inventory within the scope of this update be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The amendments in this update do not apply to inventory that is measured using last-in, first-out (“LIFO”) or the retail inventory method; consequently, since our inventories are measured under the LIFO method, the adoption of this guidance did not have an impact upon our financial condition or results of operations. |
2. Accounts Receivable |
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Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 2. Accounts Receivable
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3. Inventories |
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Inventory Disclosure [Text Block] |
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4. Property, Plant and Equipment |
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Property, Plant and Equipment Disclosure [Text Block] | 4. Property, Plant and Equipment
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5. Fair Value Measurements |
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Fair Value Disclosures [Text Block] | 5. Fair Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability (an “exit price”) in an orderly transaction between market participants on the applicable measurement date. We use a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets for identical assets and liabilities; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions. As of July 30, 2017 and January 29, 2017, Company-owned life insurance was measured at fair value on a recurring basis based on Level 2 inputs. The fair value of the Company-owned life insurance is determined by inputs that are readily available in public markets or can be derived from information available in publicly quoted markets. Additionally, the fair value of the Company-owned life insurance is marked to market each reporting period and any change in fair value is reflected in income for that period. As of January 29, 2017, the assets of the Home Meridian segment’s legacy Pension Plan (the “Plan”) were measured at fair value on a recurring basis based on Level 1 inputs. Pension plan assets, held in a trust account by the Plan’s trustee, primarily consist of a wide-range of mutual fund asset classes, including domestic and international equities, fixed income securities such as corporate bonds, mortgage-backed securities, real estate investments and U.S. Treasuries. As of January 31, 2017, the date of the latest actuarial valuation, Plan assets were netted against the Plan’s Projected Benefit Obligation (“PBO”) on that date to determine the Plan’s funded status. Since the PBO exceeded the market value of the Plan’s assets, the funded status is recorded in our condensed consolidated balance sheets as a net liability. As of January 31, 2017, the net liability for this plan was $3.5 million shown on the “Pension Plan” line of our condensed consolidated balance sheets. The market value of pension plan assets shown below are as of January 31, 2017, the actuarial valuation date of the Pension Plan. See Note 8. Employee Benefit Plans for additional information about the Plan. Our assets measured at fair value on a recurring basis at July 30, 2017 and January 29, 2017, were as follows:
* as of January 29, 2017 for Pension Plan assets. |
6. Intangible Assets |
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Intangible Assets Disclosure [Text Block] | 6. Intangible Assets
All of our amortizable intangible assets are recorded in our Home Meridian segment. The carrying amounts and changes therein of those amortizable intangible assets were as follows:
The estimated amortization expense associated with our amortizable intangible assets is expected to be as follows:
For the remainder of fiscal 2018, expected amortization expense will be approximately $334,000 per quarter. |
7. Long-Term Debt |
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Disclosure Text Block [Abstract] | |
Long-term Debt [Text Block] | 7. Long-Term Debt On February 1, 2016, we entered into an amended and restated loan agreement with Bank of America, N.A. and borrowed $60 million, the full amounts available under the Unsecured Term Loan (the “Unsecured Term Loan”) and the Secured Term Loan (the “Secured Term Loan”) in connection with the completion of the HMI Acquisition. We may prepay any outstanding principal amounts borrowed under either the Unsecured Term Loan or the Secured Term Loan in full or in part on any interest payment date without penalty. Additionally, we incurred $165,000 in debt issuance costs in connection with our term loans in the fiscal 2017 first quarter. These costs are amortized over the life of the loan using the interest method and are included in the “interest expense” line of our condensed consolidated income statements. Unamortized debt issuance costs are netted against the carrying value of our term loans on our condensed consolidated balance sheets. As of July 30, 2017, unamortized loan costs of $102,000 were netted against the carrying value of our term loans on our condensed consolidated balance sheets. |
8. Employee Benefit Plans |
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Pension and Other Postretirement Benefits Disclosure [Text Block] | 8. Employee Benefit Plans We maintain three retirement plans for the benefit of certain former and current employees, including a supplemental retirement income plan (“SRIP”) for certain former and current employees of Hooker Furniture Corporation, as well as two plans for the benefit of certain and former employees of Pulaski Furniture Corporation, one of two entities combined to form Home Meridian International. These legacy pension plan obligations include:
The SRIP, SERP and Pension Plan are all “frozen” and we do not expect to add additional employees to any of these plans in the future. Pension plan assets include a range of mutual fund asset classes and are measured at fair value using Level 1 inputs, which are quoted prices in active markets. The consolidated liability for our retirement plan obligations at July 30, 2017 and January 29, 2017 are shown below and are shown in our condensed consolidated balance sheets as follows:
*Total Deferred Compensation shown in the Long-Term Liabilities section of our Condensed Consolidated Balance Sheets is $11.0 million and $10.8 million at July 30, 2017 and January 29, 2017. These totals include the SRIP and SERP amounts shown in the table above, as well as miscellaneous additional long-term compensation-related items unrelated to these plans. Components of net periodic benefit cost for the SRIP, SERP and Pension Plans are included in our condensed consolidated statements of income under selling and administrative expenses.
The expected long-term rate of return on Pension Plan assets is 7.0% as of the Pension Plan’s most recent valuation date of January 29, 2017. We contributed $511,000 in required contributions to the Pension Plan in the first half of fiscal 2018. We expect to contribute an additional $265,000 in required contributions to the Pension Plan in the second half of fiscal 2018. The SRIP and SERP plans are unfunded plans. Consequently, we expect to pay a total of approximately $315,000 in benefit payments from our general assets during the remainder of fiscal 2018 to fund SRIP and SERP payments. |
9. Earnings Per Share |
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Earnings Per Share [Text Block] | 9. Earnings Per Share We refer you to the discussion of Earnings Per Share in Note 1-Summary of Significant Accounting Policies, in the financial statements included in our 2017 Annual Report, for additional information concerning the calculation of earnings per share. We have issued restricted stock awards to non-employee members of the board of directors since 2006 and restricted stock units (“RSUs”) to certain senior executives since fiscal 2012 under the Company’s Stock Incentive Plan. Each RSU entitles an executive to receive one share of the Company’s common stock if the executive remains continuously employed with the Company through the end of a three-year service period. The RSUs may be paid in shares of our common stock, cash or both at the discretion of the Compensation Committee of our board of directors. We expect to continue to grant these types of awards annually in the future. The following table sets forth the number of outstanding restricted stock awards and RSUs, net of forfeitures and vested shares, as of the fiscal period-end dates indicated:
All restricted shares and RSUs awarded that have not yet vested are considered when computing diluted earnings per share. The following table sets forth the computation of basic and diluted earnings per share:
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10. Income Taxes |
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Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 10. Income Taxes We recorded income tax expense of $4.2 million for the fiscal 2018 second quarter compared to $2.9 million for the comparable prior year period. The effective tax rates for the fiscal 2018 and 2017 second quarter were 35.2% and 35.1%, respectively. Our effective tax rate was higher in the fiscal 2018 second quarter primarily due to the life insurance proceeds received in the prior year second quarter. The effective tax rates for the first half of fiscal 2018 and 2017 were 34.4% and 35.3%, respectively. The effective tax rate was lower in the 2018 first half as a result of the excess tax benefits from share-based compensation and a state tax credit received during FY2018 first quarter. The net unrecognized tax benefits as of July 30, 2017 and January 29, 2017, which, if recognized, would affect our effective tax rate are $205,000 and $201,000, respectively. Tax years ending February 2, 2014 through January 29, 2017 remain subject to examination by federal and state taxing authorities. |
11. Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Disclosure [Text Block] | 11. Segment Information As a public entity, we are required to present disaggregated information by segment using the management approach. The objective of this approach is to allow users of our financial statements to see our business through the eyes of management based upon the way management reviews performance and makes decisions. The management approach requires segment information to be reported based on how management internally evaluates the operating performance of the company’s business units or segments. The objective of this approach is to meet the basic principles of segment reporting as outlined in Accounting Standards Codification Topic 280, “Segment Reporting” (“ASC 280”), which are to allow the users of our financial statements to:
We define our segments as those operations our chief operating decision maker (“CODM”) regularly reviews to analyze performance and allocate resources. We measure the results of our segments using, among other measures, each segment’s net sales, gross profit and operating income, as determined by the information regularly reviewed by the CODM. For financial reporting purposes, we are organized into four operating segments:
The following table presents segment information for the periods, and as of the dates, indicated:
Sales by product type are as follows:
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12. Subsequent Events |
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Jul. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 12. Subsequent Events Dividends On August 29, 2017, our board of directors declared a quarterly cash dividend of $0.12 per share, payable on September 29, 2017 to shareholders of record at September 15, 2017. Proposed Acquisition On September 6, 2017, we reached a definitive agreement to acquire Shenandoah Furniture, Inc. (the “Shenandoah” Acquisition), a North Carolina-based domestic upholstery manufacturer, for $40 million. The acquisition agreement includes substantially all of the assets and certain liabilities of Shenandoah, which is headquartered in Valdese, N.C. and operates leased plants in Valdese and Mt. Airy, N.C. and Martinsville,VA. The $40 million purchase price consists of $32 million in cash, of which approximately $12 million is expected to be in the form of additional bank debt, and $8 million in newly issued common shares. The cash portion of the purchase price is subject to customary working capital adjustments. We expect the acquisition to be accretive to earnings in our 2019 fiscal year, which begins on January 29, 2018. In the short-term, we expect a nominal reduction in earnings for the remainder of fiscal 2018 due to the timing of the acquisition and some short-term additional expenses related to the acquisition. We expect the acquisition to close during our third fiscal quarter which ends October 29, 2017, subject to among other things, third party consents and other customary closing conditions. The transaction does not require approval by our shareholders. |
2. Accounts Receivable (Tables) |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] |
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3. Inventories (Tables) |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory, Current [Table Text Block] |
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4. Property, Plant and Equipment (Tables) |
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Property, Plant and Equipment [Table Text Block] |
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5. Fair Value Measurements (Tables) |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] |
Our assets measured at fair value on a recurring basis at July 30, 2017 and January 29, 2017, were as follows:
* as of January 29, 2017 for Pension Plan assets. |
6. Intangible Assets (Tables) |
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Disclosure Text Block [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Intangible Assets and Goodwill [Table Text Block] |
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Schedule of Finite-Lived Intangible Assets [Table Text Block] |
All of our amortizable intangible assets are recorded in our Home Meridian segment. The carrying amounts and changes therein of those amortizable intangible assets were as follows:
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Finite-lived Intangible Assets Amortization Expense [Table Text Block] |
The estimated amortization expense associated with our amortizable intangible assets is expected to be as follows:
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8. Employee Benefit Plans (Tables) |
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Retirement Benefits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Defined Benefit Plans Disclosures [Table Text Block] |
The consolidated liability for our retirement plan obligations at July 30, 2017 and January 29, 2017 are shown below and are shown in our condensed consolidated balance sheets as follows:
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Schedule of Net Benefit Costs [Table Text Block] |
Components of net periodic benefit cost for the SRIP, SERP and pension plans are included in our condensed consolidated statements of income under selling and administrative expenses.
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9. Earnings Per Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] |
We have issued restricted stock awards to non-employee members of the board of directors since 2006 and restricted stock units (“RSUs”) to certain senior executives since fiscal 2012 under the Company’s Stock Incentive Plan. Each RSU entitles an executive to receive one share of the Company’s common stock if the executive remains continuously employed with the Company through the end of a three-year service period. The RSUs may be paid in shares of our common stock, cash or both at the discretion of the Compensation Committee of our board of directors. We expect to continue to grant these types of awards annually in the future. The following table sets forth the number of outstanding restricted stock awards and RSUs, net of forfeitures and vested shares, as of the fiscal period-end dates indicated:
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Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] |
All restricted shares and RSUs awarded that have not yet vested are considered when computing diluted earnings per share. The following table sets forth the computation of basic and diluted earnings per share:
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11. Segment Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] |
The following table presents segment information for the periods, and as of the dates, indicated:
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Reconciliation of Assets from Segment to Consolidated [Table Text Block] |
The following table presents segment information for the periods, and as of the dates, indicated:
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Revenue from External Customers by Products and Services [Table Text Block] |
Sales by product type are as follows:
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2. Accounts Receivable (Details) - Accounts Receivable - USD ($) $ in Thousands |
Jul. 30, 2017 |
Jan. 29, 2017 |
---|---|---|
Accounts Receivable [Abstract] | ||
Trade accounts receivable | $ 82,221 | $ 99,378 |
Receivable from factor | 0 | 6 |
Other accounts receivable allowances | (6,073) | (6,298) |
Allowance for doubtful accounts | (777) | (508) |
Accounts receivable | $ 75,371 | $ 92,578 |
3. Inventories (Details) - Schedule of Inventory, Current - USD ($) $ in Thousands |
Jul. 30, 2017 |
Jan. 29, 2017 |
---|---|---|
Schedule of Inventory, Current [Abstract] | ||
Finished furniture | $ 91,342 | $ 85,520 |
Furniture in process | 722 | 735 |
Materials and supplies | 8,723 | 7,536 |
Inventories at FIFO | 100,787 | 93,791 |
Reduction to LIFO basis | (18,751) | (18,488) |
Inventories | $ 82,036 | $ 75,303 |
5. Fair Value Measurements (Details) $ in Millions |
Jan. 31, 2017
USD ($)
|
---|---|
Pension Plan [Member] | |
5. Fair Value Measurements (Details) [Line Items] | |
Liability, Defined Benefit Pension Plan | $ 3.5 |
6. Intangible Assets (Details) - USD ($) |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jul. 30, 2017 |
Jul. 31, 2016 |
Jan. 28, 2018 |
Jul. 30, 2017 |
Jul. 31, 2016 |
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6. Intangible Assets (Details) [Line Items] | |||||
Amortization of Intangible Assets | $ 333,000 | $ 813,000 | $ 667,000 | $ 2,467,000 | |
Scenario, Forecast [Member] | |||||
6. Intangible Assets (Details) [Line Items] | |||||
Amortization of Intangible Assets | $ 334,000 |
6. Intangible Assets (Details) - Schedule of Intangible Assets - USD ($) $ in Thousands |
Jul. 30, 2017 |
Jan. 29, 2017 |
---|---|---|
Non-amortizable Intangible Assets | ||
Goodwill | $ 23,187 | $ 23,187 |
Upholstery [Member] | Bradington-Young [Member] | ||
Non-amortizable Intangible Assets | ||
Trademarks and trade names | 861 | 861 |
Upholstery [Member] | Sam Moore [Member] | ||
Non-amortizable Intangible Assets | ||
Trademarks and trade names | 396 | 396 |
Total non-amortizable assets | 35,844 | 35,844 |
Home Meridian International [Member] | Home Meridian International [Member] | ||
Non-amortizable Intangible Assets | ||
Trademarks and trade names | $ 11,400 | $ 11,400 |
6. Intangible Assets (Details) - Schedule of Finite-Lived Intangible Assets - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 30, 2017 |
Jul. 31, 2016 |
Jul. 30, 2017 |
Jul. 31, 2016 |
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Finite-Lived Intangible Assets [Line Items] | ||||
Amortization | $ (333) | $ (813) | $ (667) | $ (2,467) |
Balance at July 30, 2017 | 12,599 | 12,599 | ||
Customer Relationships [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Balance at January 29, 2017 | 13,091 | |||
Amortization | (655) | |||
Balance at July 30, 2017 | 12,436 | 12,436 | ||
Order or Production Backlog [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Balance at January 29, 2017 | 175 | |||
Amortization | (12) | |||
Balance at July 30, 2017 | 163 | 163 | ||
Trademarks [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Balance at January 29, 2017 | 13,266 | |||
Amortization | (667) | |||
Balance at July 30, 2017 | $ 12,599 | $ 12,599 |
6. Intangible Assets (Details) - Finite-lived Intangible Assets Amortization Expense $ in Thousands |
Jul. 30, 2017
USD ($)
|
---|---|
Finite-lived Intangible Assets Amortization Expense [Abstract] | |
Remainder of 2018 | $ 667 |
2019 | 1,334 |
2020 | 1,334 |
2021 | 1,334 |
2022 | 1,334 |
Thereafter | 6,596 |
$ 12,599 |
7. Long-Term Debt (Details) - Unsecured Debt [Member] - USD ($) |
Jul. 30, 2017 |
May 01, 2016 |
Feb. 01, 2016 |
---|---|---|---|
7. Long-Term Debt (Details) [Line Items] | |||
Debt Instrument, Face Amount | $ 60,000,000 | ||
Debt Issuance Costs, Gross | $ 165,000 | ||
Debt Issuance Costs, Net | $ 102,000 |
8. Employee Benefit Plans (Details) |
6 Months Ended | |
---|---|---|
Jul. 30, 2017
USD ($)
|
Jan. 29, 2017
USD ($)
|
|
8. Employee Benefit Plans (Details) [Line Items] | ||
Deferred Compensation Liability, Classified, Noncurrent | $ 11,041,000 | $ 10,849,000 |
Defined Benefit Plan, Expected Future Benefit Payment, Remainder of Fiscal Year | $ 315,000 | |
Hooker Furniture Corporation [Member] | ||
8. Employee Benefit Plans (Details) [Line Items] | ||
Number of Benefit Plans | 3 | |
Pulaski Furniture Corporation [Member] | ||
8. Employee Benefit Plans (Details) [Line Items] | ||
Number of Benefit Plans | 2 | |
Supplemental Retirement Income Plan ("SRIP") and Supplemental Executive Retirement Plan ("SERP") [Member] | ||
8. Employee Benefit Plans (Details) [Line Items] | ||
Defined Benefit Plan, Expected Future Benefit Payment, Remainder of Fiscal Year | $ 265,000 | |
Pension Plan [Member] | ||
8. Employee Benefit Plans (Details) [Line Items] | ||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 7.00% | |
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 511,000 |
8. Employee Benefit Plans (Details) - Schedule of Defined Benefit Plans Disclosures - USD ($) $ in Thousands |
Jul. 30, 2017 |
Jan. 29, 2017 |
||
---|---|---|---|---|
Accrued salaries, wages and benefits (current portions) | ||||
Current portion | $ 694 | $ 694 | ||
Long-term portions | ||||
Deferred compensation | [1] | 10,554 | 10,453 | |
Pension Plan | 3,008 | 3,499 | ||
Total deferred compensation and pension plans | 13,562 | 13,952 | ||
Consolidated pension liabilities | 14,256 | 14,646 | ||
Supplemental Retirement Income Plan ("SRIP") [Member] | ||||
Accrued salaries, wages and benefits (current portions) | ||||
Current portion | 473 | 473 | ||
Long-term portions | ||||
Deferred compensation | 8,548 | 8,372 | ||
Supplemental Executive Retirement Plan ("SREP") [Member] | ||||
Accrued salaries, wages and benefits (current portions) | ||||
Current portion | 221 | 221 | ||
Long-term portions | ||||
Deferred compensation | 2,006 | 2,081 | ||
Pension Plan [Member] | ||||
Accrued salaries, wages and benefits (current portions) | ||||
Current portion | $ 0 | $ 0 | ||
|
8. Employee Benefit Plans (Details) - Schedule of Net Benefit Costs - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 30, 2017 |
Jul. 31, 2016 |
Jul. 30, 2017 |
Jul. 31, 2016 |
|
SRIP: | ||||
Consolidated net periodic benefit costs | $ 207 | $ 243 | $ 415 | $ 487 |
Supplemental Retirement Income Plan ("SRIP") [Member] | ||||
SRIP: | ||||
Service cost | 76 | 94 | 152 | 187 |
Interest cost | 86 | 85 | 172 | 170 |
Actuarial loss (gain) | 15 | (18) | 31 | (35) |
Total | 177 | 161 | 355 | 322 |
Supplemental Executive Retirement Plan ("SREP") [Member] | ||||
SRIP: | ||||
Interest cost | 21 | 22 | 41 | 44 |
Total | 21 | 22 | 41 | 44 |
Pension Plan [Member] | ||||
SRIP: | ||||
Interest cost | 173 | 187 | 346 | 376 |
Expected return on pension plan assets | (234) | (197) | (467) | (395) |
Expected administrative expenses | 70 | 70 | 140 | 140 |
Total | $ 9 | $ 60 | $ 19 | $ 121 |
9. Earnings Per Share (Details) - Schedule of Restricted Stock and Restricted Stock Units - shares shares in Thousands |
Jul. 30, 2017 |
Jan. 29, 2017 |
---|---|---|
9. Earnings Per Share (Details) - Schedule of Restricted Stock and Restricted Stock Units [Line Items] | ||
Number of Shares Outstanding | 38 | 46 |
Restricted Stock [Member] | ||
9. Earnings Per Share (Details) - Schedule of Restricted Stock and Restricted Stock Units [Line Items] | ||
Number of Shares Outstanding | 19 | 26 |
Restricted Stock Units (RSUs) [Member] | ||
9. Earnings Per Share (Details) - Schedule of Restricted Stock and Restricted Stock Units [Line Items] | ||
Number of Shares Outstanding | 19 | 20 |
9. Earnings Per Share (Details) - Schedule of Earnings Per Share, Basic and Diluted - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 30, 2017 |
Jul. 31, 2016 |
Jul. 30, 2017 |
Jul. 31, 2016 |
|
Schedule of Earnings Per Share, Basic and Diluted [Abstract] | ||||
Net income | $ 7,778 | $ 5,349 | $ 12,524 | $ 7,848 |
Less: Unvested participating restricted stock dividends | 3 | 3 | 6 | 5 |
Net earnings allocated to unvested participating restricted stock | 16 | 12 | 27 | 18 |
Earnings available for common shareholders | $ 7,759 | $ 5,334 | $ 12,491 | $ 7,825 |
Weighted average shares outstanding for basic earnings per share (in Shares) | 11,565 | 11,533 | 11,554 | 11,524 |
Dilutive effect of unvested restricted stock and RSU awards (in Shares) | 28 | 21 | 33 | 24 |
Weighted average shares outstanding for diluted earnings per share (in Shares) | 11,593 | 11,554 | 11,587 | 11,548 |
Basic earnings per share (in Dollars per share) | $ 0.67 | $ 0.46 | $ 1.08 | $ 0.68 |
Diluted earnings per share (in Dollars per share) | $ 0.67 | $ 0.46 | $ 1.08 | $ 0.68 |
10. Income Taxes (Details) - USD ($) |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jul. 30, 2017 |
Jul. 31, 2016 |
Jul. 30, 2017 |
Jul. 31, 2016 |
Jan. 29, 2017 |
|
Income Tax Disclosure [Abstract] | |||||
Income Tax Expense (Benefit) | $ 4,234,000 | $ 2,887,000 | $ 6,568,000 | $ 4,284,000 | |
Effective Income Tax Rate Reconciliation, Percent | 35.20% | 35.10% | 34.40% | 35.30% | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 205,000 | $ 205,000 | $ 201,000 |
11. Segment Information (Details) |
6 Months Ended |
---|---|
Jul. 30, 2017 | |
Segment Reporting [Abstract] | |
Number of Operating Segments | 4 |
11. Segment Information (Details) - Segment Reporting Information - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 30, 2017 |
Jul. 31, 2016 |
Jul. 30, 2017 |
Jul. 31, 2016 |
|
Segment Reporting Information [Line Items] | ||||
Net Sales | $ 156,308 | $ 136,163 | $ 287,180 | $ 257,994 |
% of Net Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Profit | ||||
Gross Profit | $ 33,117 | $ 28,478 | $ 61,260 | $ 55,077 |
% of Net Sales, Gross Profit | 21.20% | 20.90% | 21.30% | 21.30% |
Operating Income | ||||
Operating Income | $ 11,795 | $ 8,224 | $ 18,903 | $ 12,225 |
% of Net Sales, Operating Income | 7.50% | 6.00% | 6.60% | 4.70% |
Capital Expenditures | ||||
Capital Expenditures | $ 798 | $ 457 | $ 1,665 | $ 1,160 |
& Amortization | ||||
Depreciation & Amortization | 1,338 | 1,963 | 2,697 | 4,748 |
Casegoods [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | $ 34,880 | $ 33,582 | $ 67,695 | $ 66,510 |
% of Net Sales | 22.30% | 24.70% | 23.60% | 25.80% |
Gross Profit | ||||
Gross Profit | $ 10,766 | $ 10,662 | $ 21,638 | $ 20,816 |
% of Net Sales, Gross Profit | 30.90% | 31.70% | 32.00% | 31.30% |
Operating Income | ||||
Operating Income | $ 3,999 | $ 4,341 | $ 7,928 | $ 6,422 |
% of Net Sales, Operating Income | 11.50% | 12.90% | 11.70% | 9.70% |
Capital Expenditures | ||||
Capital Expenditures | $ 464 | $ 342 | $ 966 | $ 722 |
& Amortization | ||||
Depreciation & Amortization | 479 | 548 | 983 | 1,084 |
Upholstery [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | $ 22,364 | $ 19,847 | $ 44,546 | $ 41,740 |
% of Net Sales | 14.30% | 14.60% | 15.50% | 16.20% |
Gross Profit | ||||
Gross Profit | $ 5,442 | $ 4,642 | $ 11,065 | $ 9,718 |
% of Net Sales, Gross Profit | 24.30% | 23.40% | 24.80% | 23.30% |
Operating Income | ||||
Operating Income | $ 2,314 | $ 1,316 | $ 4,608 | $ 3,078 |
% of Net Sales, Operating Income | 10.30% | 6.60% | 10.30% | 7.40% |
Capital Expenditures | ||||
Capital Expenditures | $ 144 | $ 174 | $ 207 | $ 208 |
& Amortization | ||||
Depreciation & Amortization | 193 | 236 | 391 | 465 |
Home Meridian International [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | $ 96,403 | $ 80,362 | $ 170,105 | $ 145,338 |
% of Net Sales | 61.70% | 59.00% | 59.20% | 56.30% |
Gross Profit | ||||
Gross Profit | $ 16,061 | $ 12,413 | $ 27,067 | $ 23,123 |
% of Net Sales, Gross Profit | 16.70% | 15.40% | 15.90% | 15.90% |
Operating Income | ||||
Operating Income | $ 5,235 | $ 2,365 | $ 6,051 | $ 2,453 |
% of Net Sales, Operating Income | 5.40% | 2.90% | 3.60% | 1.70% |
Capital Expenditures | ||||
Capital Expenditures | $ 190 | $ (59) | $ 492 | $ 230 |
& Amortization | ||||
Depreciation & Amortization | 663 | 1,176 | 1,318 | 3,194 |
Other Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | $ 2,661 | $ 2,372 | $ 4,834 | $ 4,406 |
% of Net Sales | 1.70% | 1.70% | 1.70% | 1.70% |
Gross Profit | ||||
Gross Profit | $ 847 | $ 757 | $ 1,487 | $ 1,413 |
% of Net Sales, Gross Profit | 31.80% | 31.90% | 30.80% | 32.10% |
Operating Income | ||||
Operating Income | $ 246 | $ 198 | $ 313 | $ 265 |
% of Net Sales, Operating Income | 9.20% | 8.40% | 6.50% | 6.00% |
Capital Expenditures | ||||
Capital Expenditures | $ 0 | $ 0 | $ 0 | $ 0 |
& Amortization | ||||
Depreciation & Amortization | 3 | 3 | 5 | 5 |
Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 0 | 0 | 0 | 0 |
Gross Profit | ||||
Gross Profit | 1 | 4 | 3 | 7 |
Operating Income | ||||
Operating Income | $ 1 | $ 4 | $ 3 | $ 7 |
11. Segment Information (Details) - Assets from Segments to Consolidated - USD ($) $ in Thousands |
Jul. 30, 2017 |
Jan. 29, 2017 |
---|---|---|
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total Assets | $ 312,859 | $ 318,696 |
% Total Assets | 100.00% | 100.00% |
Casegoods [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total Assets | $ 133,721 | $ 130,917 |
% Total Assets | 42.70% | 41.10% |
Upholstery [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total Assets | $ 34,493 | $ 32,275 |
% Total Assets | 11.00% | 10.10% |
Home Meridian International [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total Assets | $ 144,111 | $ 154,954 |
% Total Assets | 46.10% | 48.60% |
Other Segments [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total Assets | $ 534 | $ 554 |
% Total Assets | 0.20% | 0.20% |
Intersegment Eliminations [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total Assets | $ 0 | $ (4) |
% Total Assets | 0.00% | 0.00% |
11. Segment Information (Details) - Revenue from External Customers by Products and Services - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 30, 2017 |
Jul. 31, 2016 |
Jul. 30, 2017 |
Jul. 31, 2016 |
|
Revenue from External Customer [Line Items] | ||||
Net Sales | $ 156,308 | $ 136,163 | $ 287,180 | $ 257,994 |
% Total | 100.00% | 100.00% | 100.00% | 100.00% |
Casegoods [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Net Sales | $ 106,851 | $ 88,848 | $ 201,534 | $ 178,045 |
% Total | 68.00% | 65.00% | 70.00% | 69.00% |
Upholstery [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Net Sales | $ 49,457 | $ 47,315 | $ 85,646 | $ 79,949 |
% Total | 32.00% | 35.00% | 30.00% | 31.00% |
12. Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 06, 2017 |
Aug. 29, 2017 |
Jul. 30, 2017 |
Jul. 31, 2016 |
Jul. 30, 2017 |
Jul. 31, 2016 |
|
12. Subsequent Events (Details) [Line Items] | ||||||
Common Stock, Dividends, Per Share, Declared (in Dollars per share) | $ 0.12 | $ 0.10 | $ 0.24 | $ 0.20 | ||
Subsequent Event [Member] | ||||||
12. Subsequent Events (Details) [Line Items] | ||||||
Dividends Payable, Date Declared | Aug. 29, 2017 | |||||
Common Stock, Dividends, Per Share, Declared (in Dollars per share) | $ 0.12 | |||||
Dividends Payable, Date to be Paid | Sep. 29, 2017 | |||||
Dividends Payable, Date of Record | Sep. 15, 2017 | |||||
Subsequent Event [Member] | Acquisition of Shenandoah Furniture, Inc. [Member] | ||||||
12. Subsequent Events (Details) [Line Items] | ||||||
Business Combination, Consideration Transferred | $ 40 | |||||
Payments to Acquire Businesses, Gross | 32 | |||||
Business Combination, Consideration Transferred, Liabilities Incurred | 12 | |||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ 8 |
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