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EX-32.2 - EX-32.2 - MOVADO GROUP INCmov-ex322_9.htm
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EX-31.2 - EX-31.2 - MOVADO GROUP INCmov-ex312_6.htm
EX-31.1 - EX-31.1 - MOVADO GROUP INCmov-ex311_7.htm

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended October 31, 2016

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from               to              

Commission File Number: 1-16497

 

MOVADO GROUP, INC.

(Exact Name of Registrant as Specified in its Charter)

 

 

New York

 

13-2595932

(State or Other Jurisdiction

of Incorporation or Organization)

 

(IRS Employer

Identification No.)

 

 

 

650 From Road, Ste. 375

Paramus, New Jersey

 

07652-3556

(Address of Principal Executive Offices)

 

(Zip Code)

(201) 267-8000

(Registrant’s telephone number, including area code)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for that past 90 days.    Yes      No  

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,’’ “accelerated filer’’ and “smaller reporting company’’ in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer  

Accelerated filer  

Non-accelerated filer  

Smaller reporting company  

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  

The number of shares outstanding of the registrant’s Common Stock and Class A Common Stock as of November 15, 2016 were 16,288,885 and 6,644,105, respectively.

 

 

 

 

 

 


 

MOVADO GROUP, INC.

Index to Quarterly Report on Form 10-Q

October 31, 2016

 

 

 

 

 

Page

Part I

 

Financial Information (Unaudited)

 

3

 

 

 

Item 1.

 

 

Consolidated Balance Sheets at October 31, 2016, January 31, 2016 and October 31, 2015

 

3

 

 

 

 

 

Consolidated Statements of Operations for the three and nine months ended October 31, 2016 and October 31, 2015

 

4

 

 

 

 

 

Consolidated Statements of Comprehensive Income for the three and nine months ended October 31, 2016 and October 31, 2015

 

5

 

 

 

 

 

Consolidated Statements of Cash Flows for the nine months ended October 31, 2016 and October 31, 2015

 

6

 

 

 

 

 

Notes to Consolidated Financial Statements

 

7

 

 

 

Item 2.

 

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

20

 

 

 

Item 3.

 

 

Quantitative and Qualitative Disclosures About Market Risk

 

30

 

 

 

Item 4.

 

 

Controls and Procedures

 

31

 

Part II

 

 

Other Information

 

32

 

 

 

Item 1.

 

 

Legal Proceedings

 

32

 

 

 

Item 1A.

 

 

Risk Factors

 

32

 

 

 

Item 2.

 

 

Unregistered Sales of Equity Securities and Use of Proceeds

 

32

 

 

 

Item 6.

 

 

Exhibits

 

33

 

Signature

 

34

 

 

 

 


 

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

 

MOVADO GROUP, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share amounts)

(Unaudited)

 

 

October 31,

 

 

January 31,

 

 

October 31,

 

 

2016

 

 

2016

 

 

2015

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

199,758

 

 

$

228,188

 

 

$

181,180

 

Trade receivables, net

 

130,076

 

 

 

71,030

 

 

 

124,438

 

Inventories

 

169,402

 

 

 

162,465

 

 

 

178,965

 

Other current assets

 

28,096

 

 

 

27,352

 

 

 

29,954

 

Total current assets

 

527,332

 

 

 

489,035

 

 

 

514,537

 

Property, plant and equipment, net

 

34,867

 

 

 

38,553

 

 

 

41,331

 

Deferred and non-current income taxes

 

20,614

 

 

 

20,323

 

 

 

19,494

 

Other non-current assets

 

41,665

 

 

 

37,259

 

 

 

37,756

 

Total assets

$

624,478

 

 

$

585,170

 

 

$

613,118

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

Loans payable to bank, current

$

3,000

 

 

$

5,000

 

 

$

 

Accounts payable

 

22,443

 

 

 

27,308

 

 

 

29,514

 

Accrued liabilities

 

52,895

 

 

 

39,617

 

 

 

50,661

 

Income taxes payable

 

5,601

 

 

 

6,257

 

 

 

6,205

 

Total current liabilities

 

83,939

 

 

 

78,182

 

 

 

86,380

 

Loans payable to bank

 

35,000

 

 

 

35,000

 

 

 

40,000

 

Deferred and non-current income taxes payable

 

3,145

 

 

 

2,640

 

 

 

3,911

 

Other non-current liabilities

 

32,297

 

 

 

28,201

 

 

 

29,918

 

Total liabilities

 

154,381

 

 

 

144,023

 

 

 

160,209

 

Commitments and contingencies (Note 8)

 

 

 

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

 

 

 

 

 

Preferred Stock, $0.01 par value, 5,000,000 shares authorized; no shares

   issued

 

 

 

 

 

 

 

 

Common Stock, $0.01 par value, 100,000,000 shares authorized;

   27,138,206, 26,962,656 and 26,952,421 shares issued and outstanding,

   respectively

 

271

 

 

 

270

 

 

 

270

 

Class A Common Stock, $0.01 par value, 30,000,000 shares authorized;

   6,644,105, 6,644,105 and 6,644,105 shares issued and outstanding,

   respectively

 

66

 

 

 

66

 

 

 

66

 

Capital in excess of par value

 

182,834

 

 

 

178,118

 

 

 

179,879

 

Retained earnings

 

413,666

 

 

 

392,788

 

 

 

387,432

 

Accumulated other comprehensive income

 

77,057

 

 

 

68,505

 

 

 

79,173

 

Treasury Stock, 10,849,321, 10,664,512 and 10,553,569 shares,

   respectively, at cost

 

(203,797

)

 

 

(199,195

)

 

 

(196,379

)

Total Movado Group, Inc. shareholders' equity

 

470,097

 

 

 

440,552

 

 

 

450,441

 

Noncontrolling interests

 

 

 

 

595

 

 

 

2,468

 

Total equity

 

470,097

 

 

 

441,147

 

 

 

452,909

 

Total liabilities and equity

$

624,478

 

 

$

585,170

 

 

$

613,118

 

 

See Notes to Consolidated Financial Statements

 

 

3


MOVADO GROUP, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)

 

 

Three Months Ended October 31,

 

 

Nine Months Ended October 31,

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Net sales

$

179,818

 

 

$

185,629

 

 

$

421,967

 

 

$

451,659

 

Cost of sales

 

81,268

 

 

 

85,537

 

 

 

191,837

 

 

 

210,080

 

Gross profit

 

98,550

 

 

 

100,092

 

 

 

230,130

 

 

 

241,579

 

Selling, general, and administrative

 

67,479

 

 

 

66,638

 

 

 

183,590

 

 

 

183,016

 

Operating income

 

31,071

 

 

 

33,454

 

 

 

46,540

 

 

 

58,563

 

Other expense (Note 2)

 

(1,282

)

 

 

-

 

 

 

(1,282

)

 

 

-

 

Interest expense

 

(333

)

 

 

(319

)

 

 

(1,039

)

 

 

(727

)

Interest income

 

45

 

 

 

17

 

 

 

138

 

 

 

105

 

Income before income taxes

 

29,501

 

 

 

33,152

 

 

 

44,357

 

 

 

57,941

 

Provision for income taxes (Note 9)

 

9,286

 

 

 

11,242

 

 

 

14,450

 

 

 

20,458

 

Net income

 

20,215

 

 

 

21,910

 

 

 

29,907

 

 

 

37,483

 

Less: Net income attributed to noncontrolling interests

 

 

 

 

378

 

 

 

78

 

 

 

277

 

Net income attributed to Movado Group, Inc.

$

20,215

 

 

$

21,532

 

 

$

29,829

 

 

$

37,206

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted basic average shares outstanding

 

23,055

 

 

 

23,167

 

 

 

23,074

 

 

 

23,690

 

Net income per share attributed to Movado Group, Inc.

$

0.88

 

 

$

0.93

 

 

$

1.29

 

 

$

1.57

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted diluted average shares outstanding

 

23,230

 

 

 

23,411

 

 

 

23,259

 

 

 

23,966

 

Net income per share attributed to Movado Group, Inc.

$

0.87

 

 

$

0.92

 

 

$

1.28

 

 

$

1.55

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per share

 

0.13

 

 

$

0.11

 

 

 

0.39

 

 

$

0.33

 

 

See Notes to Consolidated Financial Statements

 

 

4


MOVADO GROUP, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)

(Unaudited)

 

 

Three Months Ended October 31,

 

 

Nine Months Ended October 31,

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Comprehensive income, net of taxes:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income including noncontrolling interests

$

20,215

 

 

$

21,910

 

 

$

29,907

 

 

$

37,483

 

Net unrealized gain / (loss) on investments, net of tax (benefit)

   of $4, ($10), $1 and ($3), respectively

 

6

 

 

 

(20

)

 

 

8

 

 

 

(5

)

Net change in effective portion of hedging contracts, net of

   tax (benefit) of ($9), $3, $5 and $3, respectively

 

(43

)

 

 

16

 

 

 

31

 

 

 

12

 

Foreign currency translation adjustments

 

(6,319

)

 

 

(6,366

)

 

 

8,489

 

 

 

(19,573

)

Comprehensive income including noncontrolling interests

 

13,859

 

 

 

15,540

 

 

 

38,435

 

 

 

17,917

 

Less: Comprehensive income attributed to noncontrolling

   interests

 

-

 

 

 

379

 

 

 

54

 

 

 

392

 

Total comprehensive income attributed to Movado Group, Inc.

$

13,859

 

 

$

15,161

 

 

$

38,381

 

 

$

17,525

 

 

See Notes to Consolidated Financial Statements

 

 

5


MOVADO GROUP, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

Nine Months Ended October 31,

 

 

2016

 

 

2015

 

Cash flows from operating activities:

 

 

 

 

 

 

 

Net income including noncontrolling interests

$

29,907

 

 

$

37,483

 

Adjustments to reconcile net income to net cash (used in) / provided by operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

 

8,520

 

 

 

9,438

 

Transactional losses / (gains)

 

2,663

 

 

 

(1,822

)

Write-down of inventories

 

1,967

 

 

 

1,811

 

Deferred income taxes

 

230

 

 

 

679

 

Stock-based compensation

 

5,663

 

 

 

4,496

 

Excess tax expense from stock-based compensation

 

167

 

 

 

21

 

Impairment of long-term investment

 

1,282

 

 

 

 

Operating efficiency initiatives and other items

 

 

 

 

2,670

 

Loss on disposal of fixed assets

 

 

 

 

310

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

Trade receivables

 

(60,386

)

 

 

(51,213

)

Inventories

 

(7,657

)

 

 

(15,183

)

Other current assets

 

1,540

 

 

 

1,030

 

Accounts payable

 

(5,140

)

 

 

2,442

 

Accrued liabilities

 

12,892

 

 

 

18,219

 

Income taxes payable

 

(917

)

 

 

(866

)

Other non-current assets

 

(5,123

)

 

 

(89

)

Other non-current liabilities

 

3,718

 

 

 

814

 

Net cash (used in) / provided by operating activities

 

(10,674

)

 

 

10,240

 

Cash flows from investing activities:

 

 

 

 

 

 

 

Capital expenditures

 

(3,847

)

 

 

(5,827

)

Short-term investment

 

(151

)

 

 

 

Restricted cash deposits

 

(1,156

)

 

 

 

Trademarks and other intangibles

 

(296

)

 

 

(193

)

Net cash (used in) investing activities

 

(5,450

)

 

 

(6,020

)

Cash flows from financing activities:

 

 

 

 

 

 

 

Proceeds from bank borrowings

 

3,000

 

 

 

50,000

 

Repayments of bank borrowings

 

(5,000

)

 

 

(10,000

)

Stock options exercised and other changes

 

(1,256

)

 

 

(227

)

Excess tax expense from stock-based compensation

 

(167

)

 

 

(21

)

Dividends paid

 

(8,951

)

 

 

(7,780

)

Debt issuance cost

 

 

 

 

(339

)

Purchase of incremental ownership of U.K. joint venture

 

(1,320

)

 

 

 

Stock repurchase

 

(3,263

)

 

 

(45,932

)

Net cash (used in) financing activities

 

(16,957

)

 

 

(14,299

)

Effect of exchange rate changes on cash and cash equivalents

 

4,651

 

 

 

(8,593

)

Net (decrease) in cash and cash equivalents

 

(28,430

)

 

 

(18,672

)

Cash and cash equivalents at beginning of period

 

228,188

 

 

 

199,852

 

Cash and cash equivalents at end of period

$

199,758

 

 

$

181,180

 

 

See Notes to Consolidated Financial Statements

 

 

6


MOVADO GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

 

BASIS OF PRESENTATION

The accompanying interim unaudited consolidated financial statements have been prepared by Movado Group, Inc. (the “Company”), in a manner consistent with that used in the preparation of the annual audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2016 (the “2016 Annual Report on Form 10-K”). The unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, which require the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the unaudited consolidated financial statements and the reported amounts of revenues and expenses during the periods reported. Actual results could differ from those estimates. In the opinion of management, the accompanying unaudited consolidated financial statements reflect all adjustments, consisting of only normal and recurring adjustments, necessary for a fair statement of the financial position and results of operations for the periods presented. The consolidated balance sheet data at January 31, 2016 is derived from the audited annual financial statements, which are included in the Company’s 2016 Annual Report on Form 10-K and should be read in connection with these interim unaudited financial statements. Operating results for the interim periods presented are not necessarily indicative of the results that may be expected for the full year.

 

 

NOTE 1 – RECLASSIFICATIONS

Certain reclassifications were made to prior years’ financial statement amounts and related note disclosures to conform to fiscal 2017 presentation. As a result of early adoption of ASU 2015-17, “Income Taxes: Balance Sheet Classification of Deferred Taxes,” current deferred tax assets and liabilities were reclassified to non-current in all periods presented.

 

 

NOTE 2 – FAIR VALUE MEASUREMENTS

Fair value is defined 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. Accounting guidance establishes a fair value hierarchy which prioritizes the inputs used in measuring fair value into three broad levels as follows:

 

Level 1 – Quoted prices in active markets for identical assets or liabilities.

 

Level 2 – Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly.

 

Level 3 – Unobservable inputs based on the Company’s assumptions.

The following tables present the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis (in thousands) as of October 31, 2016 and 2015 and January 31, 2016:

 

 

  

 

  

Fair Value at October 31, 2016

 

 

  

Balance Sheet Location

  

Level 1

 

  

Level 2

 

  

Level 3

 

  

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities

 

Other current assets

 

$

280

 

 

$

 

 

$

 

 

$

280

 

Short-term investment

 

Other current assets

 

 

150

 

 

 

 

 

 

 

 

 

150

 

SERP assets - employer

 

Other non-current assets

 

 

1,464

 

 

 

 

 

 

 

 

 

1,464

 

SERP assets - employee

 

Other non-current assets

 

 

28,495

 

 

 

 

 

 

 

 

 

28,495

 

Hedge derivatives

 

Other current assets

 

 

 

 

 

141

 

 

 

 

 

 

141

 

Total

 

$

30,389

 

 

$

141

 

 

$

 

 

$

30,530

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SERP liabilities - employee

 

Other non-current liabilities

 

$

28,495

 

 

$

 

 

$

 

 

$

28,495

 

Hedge derivatives

 

Accrued liabilities

 

 

 

 

 

391

 

 

 

 

 

 

391

 

Total

 

$

28,495

 

 

$

391

 

 

$

 

 

$

28,886

 

7


 

 

  

 

  

Fair Value at January 31, 2016

 

 

  

Balance Sheet Location

  

Level 1

 

  

Level 2

 

  

Level 3

 

  

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities

 

Other current assets

 

$

268

 

 

$

 

 

$

 

 

$

268

 

SERP assets - employer

 

Other non-current assets

 

 

1,168

 

 

 

 

 

 

 

 

 

1,168

 

SERP assets - employee

 

Other non-current assets

 

 

24,853

 

 

 

 

 

 

 

 

 

24,853

 

Hedge derivatives

 

Other current assets

 

 

 

 

 

64

 

 

 

 

 

 

64

 

Total

 

$

26,289

 

 

$

64

 

 

$

 

 

$

26,353

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SERP liabilities - employee

 

Other non-current liabilities

 

$

24,853

 

 

$

 

 

$

 

 

$

24,853

 

Hedge derivatives

 

Accrued liabilities

 

 

 

 

 

1,163

 

 

 

 

 

 

1,163

 

Total

 

$

24,853

 

 

$

1,163

 

 

$

 

 

$

26,016

 

 

 

  

 

  

Fair Value at October 31, 2015

 

 

  

Balance Sheet Location

  

Level 1

 

  

Level 2

 

  

Level 3

 

  

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities

 

Other current assets

 

$

300

 

 

$

 

 

$

 

 

$

300

 

SERP assets - employer

 

Other non-current assets

 

 

1,762

 

 

 

 

 

 

 

 

 

1,762

 

SERP assets - employee

 

Other non-current assets

 

 

25,730

 

 

 

 

 

 

 

 

 

25,730

 

Hedge derivatives

 

Other current assets

 

 

 

 

 

71

 

 

 

 

 

 

71

 

Total

 

$

27,792

 

 

$

71

 

 

$

 

 

$

27,863

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SERP liabilities - employee

 

Other non-current liabilities

 

$

25,730

 

 

$

 

 

$

 

 

$

25,730

 

Hedge derivatives

 

Accrued liabilities

 

 

 

 

 

1,121

 

 

 

 

 

 

1,121

 

Total

 

$

25,730

 

 

$

1,121

 

 

$

 

 

$

26,851

 

 

The fair values of the Company’s available-for-sale securities are based on quoted prices. The fair value of the short-term investment, which is a guaranteed investment certificate, is based on its purchase price plus one half of a percent calculated annually. The assets related to the Company’s defined contribution supplemental executive retirement plan (“SERP”) consist of both employer (employee unvested) and employee assets which are invested in investment funds with fair values calculated based on quoted market prices. The SERP liability represents the Company’s liability to the employees in the plan for their vested balances. The hedge derivatives are entered into by the Company principally to reduce its exposure to Swiss franc and Euro exchange rate risks. Fair values of the Company’s hedge derivatives are calculated based on quoted foreign exchange rates and quoted interest rates. The carrying amount of debt approximated fair value as of October 31, 2016. The Company had a long-term investment, which converted to common and preferred shares of a privately held company during the second quarter of fiscal 2016, accounted for under the cost method, with a carrying value of $1.3 million. This investment is tested quarterly for impairment. Due to the increasingly competitive and difficult market conditions, the operating performance and business outlook for the Company’s long-term investment declined significantly during the three months ended October 31, 2016. As such, the Company determined the investment experienced an other than temporary impairment and recorded a charge of $1.3 million, in other expenses in the Company’s Consolidated Statements of Operations, to reduce the carrying value to zero in the United States location of the Wholesale segment.

 

 

8


NOTE 3 – EQUITY

The components of equity for the nine months ended October 31, 2016 and 2015 are as follows (in thousands):

 

 

 

Movado Group, Inc. Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

 

Common Stock (1)

 

 

Class A Common Stock (2)

 

 

Capital in Excess of

Par Value

 

 

Retained Earnings

 

 

Treasury Stock

 

 

Accumulated Other Comprehensive Income

 

 

Noncontrolling Interests

 

 

Total

 

Balance, January 31, 2016

 

$

270

 

 

$

66

 

 

$

178,118

 

 

$

392,788

 

 

$

(199,195

)

 

$

68,505

 

 

$

595

 

 

$

441,147

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

29,829

 

 

 

 

 

 

 

 

 

 

 

78

 

 

 

29,907

 

Dividends

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(8,951

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(8,951

)

Stock repurchase

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,263

)

 

 

 

 

 

 

 

 

 

 

(3,263

)

Stock options exercised, net of

   tax of $167

 

 

1

 

 

 

 

 

 

 

(86

)

 

 

 

 

 

 

(1,339

)

 

 

 

 

 

 

 

 

 

 

(1,424

)

Supplemental executive

   retirement plan

 

 

 

 

 

 

 

 

 

 

150

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

150

 

Stock-based compensation

   expense

 

 

 

 

 

 

 

 

 

 

5,663

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,663

 

Net unrealized gain on

   investments, net of tax

   of $1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8

 

 

 

 

 

 

 

8

 

Net change in effective

   portion of hedging contracts,

   net of tax of $5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31

 

 

 

 

 

 

 

31

 

Joint venture incremental share

   purchase

 

 

 

 

 

 

 

 

 

 

(1,011

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(649

)

 

 

(1,660

)

Foreign currency translation

   adjustment (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8,513

 

 

 

(24

)

 

 

8,489

 

Balance, October 31, 2016

 

$

271

 

 

$

66

 

 

$

182,834

 

 

$

413,666

 

 

$

(203,797

)

 

$

77,057

 

 

$

-

 

 

$

470,097

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock (1)

 

 

Class A Common Stock (2)

 

 

Capital in Excess of

Par Value

 

 

Retained Earnings

 

 

Treasury Stock

 

 

Accumulated Other Comprehensive Income

 

 

Noncontrolling Interests

 

 

Total

 

Balance, January 31, 2015

 

$

268

 

 

$

66

 

 

$

174,826

 

 

$

358,006

 

 

$

(149,811

)

 

$

98,854

 

 

$

2,076

 

 

$

484,285

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

37,206

 

 

 

 

 

 

 

 

 

 

 

277

 

 

 

37,483

 

Dividends

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7,780

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7,780

)

Stock repurchase

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(45,932

)

 

 

 

 

 

 

 

 

 

 

(45,932

)

Stock options exercised, net of

   tax of $21

 

 

2

 

 

 

 

 

 

 

386

 

 

 

 

 

 

 

(636

)

 

 

 

 

 

 

 

 

 

 

(248

)

Supplemental executive

   retirement plan

 

 

 

 

 

 

 

 

 

 

171

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

171

 

Stock-based compensation

   expense