NOTE 4 - ACQUISITION (Tables)

12 Months Ended

Feb. 03, 2019

NOTE 4 - ACQUISITION (Tables) [Line Items]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

The following table summarizes the estimates of the fair values of the identifiable assets acquired and liabilities assumed in the Shenandoah acquisition as of September 29, 2017.

Purchase price consideration
Cash paid for assets acquired, including working capital adjustment	$	32,773
Value of shares issued for assets acquired		8,000
Fair value adjustment to shares issued for assets acquired*		396
Total purchase price	$	41,169

Fair value estimates of assets acquired and liabilities assumed
Accounts receivable	$	3,576
Inventory		2,380
Prepaid expenses and other current assets		52
Property and equipment		5,401
Intangible assets		14,300
Goodwill		16,871
Accounts payable		(699	)
Accrued expenses		(712	)
Total purchase price	$	41,169

*As provided by the Asset Purchase Agreement, we calculated the number of common shares issued to SFI by dividing $8 million by the mean closing price of our common stock for the ten trading days immediately preceding the business day immediately preceding the closing date ($45.45). However, U.S. Generally Accepted Accounting Standards provide that we value stock consideration exchanged in the Shenandoah acquisition at fair value. Consequently, we adjusted the purchase price by $396,000, which represents the difference in the mean closing price of the Company’s common stock for the ten trading days immediately preceding the business day preceding the closing date ($45.45) and the price on September 29, 2017, multiplied by the number of common shares issued (176,018.) No additional consideration was transferred to SFI as a result of this adjustment.

Business Acquisition, Pro Forma Information [Table Text Block]

The following unaudited consolidated pro forma summary has been prepared by adjusting our historical data to give effect to the Shenandoah acquisition as if it had occurred on February 1, 2016:

	Pro Forma - Unaudited
	13 Weeks Ended		52 Weeks Ended
	January 29, 2017		January 29, 2017
	(Pro forma)		(Pro forma)
Net Sales	$	184,013	$	619,569
Net Income	$	11,702	$	27,896
Basic EPS	$	1.00	$	2.38
Diluted EPS	$	1.00	$	2.38

	Pro Forma - Unaudited
	13 Weeks Ended		52 Weeks Ended
	January 28, 2018		January 28, 2018
	(Pro forma)		(Pro forma)
Net Sales	$	175,365	$	649,936
Net Income	$	8,775	$	32,977
Basic EPS	$	0.75	$	2.82
Diluted EPS	$	0.75	$	2.81

Home Meridian International [Member]

NOTE 4 - ACQUISITION (Tables) [Line Items]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

The following table summarizes our final estimates of the fair values of the identifiable assets acquired and liabilities assumed in the acquisition as of January 29, 2017. Adjustments recorded to our preliminary estimates of the fair values of the identifiable assets acquired and liabilities assumed as of February 1, 2016 were due to (i) the continued refinement of management's estimates, (ii) changes in pre-acquisition account balances due to the timing of HMI’s final financial close and (iii) adjustments made to conform the newly acquired entity’s accounting policies to our own. These adjustments included the reclassification of accounts receivable-related reserve items from accrued expenses to accounts receivable, the write-off of deferred rent, the reduction of property and equipment and prepaid expenses for items that had been capitalized inconsistent with our capitalization policy and the recognition of accrued salaries and wages to recognize compensated absences.

	(in thousands)
Purchase price consideration
Cash paid for assets acquired, including working capital adjustment	$	86,062
Value of shares issued for assets acquired		15,000
Value of shares issued for excess net working capital		5,267

Total purchase price	$	106,329

Fair value estimates of assets acquired and liabilities assumed:
Accounts receivable	$	42,463
Inventory		37,606
Prepaid expenses and other current assets		1,801
Property and equipment		5,292
Intangible assets		27,800
Goodwill		23,187
Accounts payable		(22,784	)
Accrued expenses		(316	)
Pension plan liabilities and deferred compensation balances		(8,720	)

Total purchase price	$	106,329

Business Acquisition, Pro Forma Information [Table Text Block]

The following unaudited consolidated pro forma summary has been prepared by adjusting our historical data to give effect to the acquisition as if it had occurred on February 1, 2015:

	52 Weeks Ended
(in millions except per share data)	January 31, 2016
	(Pro forma)
Net Sales	$	571,720
Net Income		22,831
Basic EPS		2.12
Diluted EPS		2.11