Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Dec. 31, 2017 | Jan. 31, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | EPLUS INC | |
Entity Central Index Key | 1,022,408 | |
Current Fiscal Year End Date | --03-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 13,948,590 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2017 |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2017 | Mar. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 76,105 | $ 109,760 |
Accounts receivable-trade, net | 285,820 | 266,029 |
Accounts receivable-other, net | 30,690 | 24,987 |
Inventories | 51,295 | 93,557 |
Financing receivables-net, current | 74,598 | 51,656 |
Deferred costs | 24,740 | 7,971 |
Other current assets | 25,970 | 43,364 |
Total current assets | 569,218 | 597,324 |
Financing receivables and operating leases-net | 72,575 | 71,883 |
Deferred tax assets-net | 1,268 | 0 |
Property, equipment and other assets | 17,632 | 11,956 |
Goodwill | 76,546 | 48,397 |
Other intangible assets-net | 27,414 | 12,160 |
TOTAL ASSETS | 764,653 | 741,720 |
Current liabilities: | ||
Accounts payable | 125,850 | 113,518 |
Accounts payable-floor plan | 107,761 | 132,612 |
Salaries and commissions payable | 20,568 | 18,878 |
Deferred revenue | 50,739 | 65,312 |
Recourse notes payable-current | 0 | 908 |
Non-recourse notes payable-current | 27,649 | 26,085 |
Other current liabilities | 26,116 | 19,179 |
Total current liabilities | 358,683 | 376,492 |
Non-recourse notes payable-long term | 3,840 | 10,431 |
Deferred tax liability-net | 0 | 1,799 |
Other liabilities | 18,518 | 7,080 |
TOTAL LIABILITIES | 381,041 | 395,802 |
COMMITMENTS AND CONTINGENCIES (Note 8) | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock, $.01 per share par value; 2,000 shares authorized; none outstanding | 0 | 0 |
Common stock, $.01 per share par value; 25,000 shares authorized; 14,046 outstanding at December 31, 2017 and 14,161 outstanding at March 31, 2017 | 142 | 142 |
Additional paid-in capital | 128,392 | 123,536 |
Treasury stock, at cost | (14,165) | 0 |
Retained earnings | 269,048 | 222,823 |
Accumulated other comprehensive income-foreign currency translation adjustment | 195 | (583) |
Total Stockholders' Equity | 383,612 | 345,918 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 764,653 | $ 741,720 |
UNAUDITED CONDENSED CONSOLIDAT3
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands | Dec. 31, 2017 | Mar. 31, 2017 |
STOCKHOLDERS' EQUITY | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 2,000 | 2,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 25,000 | 25,000 |
Common stock, shares outstanding (in shares) | 14,046 | 14,161 |
UNAUDITED CONDENSED CONSOLIDAT4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | ||||
Net sales | $ 342,569 | $ 326,657 | $ 1,080,571 | $ 996,622 |
Cost of sales | 265,881 | 252,871 | 838,719 | 773,239 |
Gross profit | 76,688 | 73,786 | 241,852 | 223,383 |
Selling, general, and administrative expenses | 57,134 | 50,160 | 168,138 | 149,821 |
Depreciation and amortization | 2,894 | 1,910 | 7,086 | 5,408 |
Interest and financing costs | 270 | 409 | 903 | 1,158 |
Operating expenses | 60,298 | 52,479 | 176,127 | 156,387 |
Operating income | 16,390 | 21,307 | 65,725 | 66,996 |
Other income (expense) | (131) | 0 | (1) | 380 |
Earnings before tax | 16,259 | 21,307 | 65,724 | 67,376 |
Provision for income taxes | 678 | 8,687 | 19,499 | 27,310 |
Net earnings | $ 15,581 | $ 12,620 | $ 46,225 | $ 40,066 |
Net earnings per common share-basic (in dollars per share) | $ 1.12 | $ 0.92 | $ 3.34 | $ 2.88 |
Net earnings per common share-diluted (in dollars per share) | $ 1.11 | $ 0.91 | $ 3.30 | $ 2.86 |
Weighted average common shares outstanding-basic (in shares) | 13,851 | 13,791 | 13,845 | 13,891 |
Weighted average common shares outstanding-diluted (in shares) | 13,990 | 13,920 | 14,022 | 14,026 |
UNAUDITED CONDENSED CONSOLIDAT5
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ||||
NET EARNINGS | $ 15,581 | $ 12,620 | $ 46,225 | $ 40,066 |
OTHER COMPREHENSIVE INCOME, NET OF TAX: | ||||
Foreign currency translation adjustments | 75 | (145) | 778 | (240) |
Other comprehensive income (loss) | 75 | (145) | 778 | (240) |
TOTAL COMPREHENSIVE INCOME | $ 15,656 | $ 12,475 | $ 47,003 | $ 39,826 |
UNAUDITED CONDENSED CONSOLIDAT6
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Cash Flows From Operating Activities: | ||
Net earnings | $ 46,225 | $ 40,066 |
Adjustments to reconcile net earnings to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 11,324 | 8,758 |
Reserve for credit losses, inventory obsolescence and sales returns | 286 | 926 |
Share-based compensation expense | 4,856 | 4,520 |
Deferred taxes | (3,058) | 0 |
Payments from lessees directly to lenders-operating leases | (1,325) | (1,831) |
Gain on disposal of property, equipment and operating lease equipment | (7,555) | (3,742) |
Gain on sale of financing receivables | (4,625) | (3,968) |
Other | 1 | 316 |
Changes in: | ||
Accounts receivable-trade | (8,295) | (57,732) |
Accounts receivable-other | (1,976) | (4,232) |
Inventories | 43,332 | (77,422) |
Financing receivables-net | (13,045) | 17,797 |
Deferred costs, other intangible assets and other assets | (26,188) | 1,838 |
Accounts payable | 18,406 | 53,208 |
Salaries and commissions payable, deferred revenue and other liabilities | (9,539) | 51,200 |
Net cash provided by operating activities | 48,824 | 29,702 |
Cash Flows From Investing Activities: | ||
Proceeds from sale of property, equipment and operating lease equipment | 9,967 | 6,380 |
Purchases of property, equipment, software, and operating lease equipment | (6,298) | (7,300) |
Purchases of assets to be leased or financed | (5,716) | (5,897) |
Issuance of financing receivables | (138,160) | (114,671) |
Repayments of financing receivables | 59,029 | 44,091 |
Proceeds from sale of financing receivables | 64,103 | 39,857 |
Cash used in acquisitions, net of cash acquired | (37,718) | (9,500) |
Net cash used in investing activities | (54,793) | (47,040) |
Cash Flows From Financing Activities: | ||
Borrowings of non-recourse and recourse notes payable | 39,365 | 34,020 |
Repayments of non-recourse and recourse notes payable | (27,269) | (5,412) |
Repurchase of common stock | (13,399) | (30,493) |
Payment of contingent consideration | 0 | (718) |
Repayments of financing of acquisitions | (1,604) | 0 |
Net borrowings (repayments) on floor plan facility | (24,851) | (5,602) |
Net cash used in financing activities | (27,758) | (8,205) |
Effect of exchange rate changes on cash | 72 | 454 |
Net Decrease in Cash and Cash Equivalents | (33,655) | (25,089) |
Cash and Cash Equivalents, Beginning of Period | 109,760 | 94,766 |
Cash and Cash Equivalents, End of Period | 76,105 | 69,677 |
Supplemental Disclosures of Cash Flow Information: | ||
Cash paid for interest | 421 | 38 |
Cash paid for income taxes | 29,987 | 23,381 |
Schedule of Non-Cash Investing and Financing Activities: | ||
Proceeds from sale of property, equipment, and operating lease equipment | 3,463 | 429 |
Purchases of property, equipment, software, and operating lease equipment | (751) | (2,442) |
Purchase of assets to be leased or financed | (7,225) | (12,700) |
Issuance of financing receivables | (74,907) | (110,120) |
Repayment of financing receivables | 9,572 | 16,454 |
Proceeds from sale of financing receivables | 83,954 | 104,430 |
Financing of acquisitions | (12,050) | 0 |
Borrowing of non-recourse and recourse notes payable | 8,904 | 33,651 |
Repayments of non-recourse and recourse notes payable | (14,465) | (20,438) |
Vesting of share-based compensation | 12,010 | 7,982 |
Repurchase of common stock included in accounts payable | $ (766) | $ 0 |
UNAUDITED CONDENSED CONSOLIDAT7
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - 9 months ended Dec. 31, 2017 - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] | Total |
Balance at Mar. 31, 2017 | $ 142 | $ 123,536 | $ 0 | $ 222,823 | $ (583) | $ 345,918 |
Balance (in shares) at Mar. 31, 2017 | 14,161 | 14,161 | ||||
Issuance of restricted stock awards | $ 0 | 0 | 0 | 0 | 0 | $ 0 |
Issuance of restricted stock awards (in shares) | 68 | |||||
Share-based compensation | $ 0 | 4,856 | 0 | 0 | 0 | 4,856 |
Repurchase of common stock | $ 0 | 0 | (14,165) | 0 | 0 | (14,165) |
Repurchase of common stock (in shares) | (183) | |||||
Net earnings | $ 0 | 0 | 0 | 46,225 | 0 | 46,225 |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 | 778 | 778 |
Balance at Dec. 31, 2017 | $ 142 | $ 128,392 | $ (14,165) | $ 269,048 | $ 195 | $ 383,612 |
Balance (in shares) at Dec. 31, 2017 | 14,046 | 14,046 |
ORGANIZATION AND SUMMARY OF SIG
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Dec. 31, 2017 | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES DESCRIPTION OF BUSINESS — Our company was founded in 1990 and is a Delaware corporation. e e e BASIS OF PRESENTATION — The unaudited condensed consolidated financial statements include the accounts of e INTERIM FINANCIAL STATEMENTS — The unaudited condensed consolidated financial statements for the three and nine months ended December 31, 2017 and 2016 were prepared by us, without audit, and include all normal and recurring adjustments that, in the opinion of management, are necessary for a fair presentation of our financial position, results of operations, changes in comprehensive income and cash flows for such periods. Operating results for the three and nine months ended December 31, 2017 and 2016 are not necessarily indicative of results that may be expected for any other interim period or for the full fiscal year ending March 31, 2018 or any other future period. These unaudited condensed consolidated financial statements do not include all disclosures required by the accounting principles generally accepted in the United States (“U.S. GAAP”) for annual financial statements. Our audited consolidated financial statements are contained in our annual report on Form 10-K for the year ended March 31, 2017 (“2017 Annual Report”), which should be read in conjunction with these interim condensed consolidated financial statements. USE OF ESTIMATES — The notes to the consolidated financial statements contained in the 2017 Annual Report include additional discussion of the significant accounting policies and estimates used in the preparation of our consolidated financial statements. There have been no material changes to our significant accounting policies and estimates during the nine months ended December 31, 2017. STOCK SPLIT — On March 31, 2017, we completed a two-for-one stock split in the form of a stock dividend. References made to outstanding shares or per share amounts in the accompanying financial statements and disclosures have been retroactively adjusted for this stock split. The number of authorized shares reflected on the consolidated balance sheets was not affected by the stock split. CONCENTRATIONS OF RISK — A substantial portion of our sales of product and services are from sales of Cisco Systems, Hewlett Packard Enterprise (“HPE”) and HP, Inc. (collectively “Hewlett Packard companies”), and NetApp products, which represented approximately 39%, 5% and 7%, and 45%, 7%, and 5%, respectively, for the three and nine months ended December 31, 2017. Sales of Cisco Systems, Hewlett Packard companies, and NetApp represented approximately 45%, 6% and 6%, and 49%, 6% and 5%, respectively, for the three and nine months ended December 31, 2016. Any changes in our vendors’ ability to provide products or incentive programs could have a material adverse effect on our business, results of operations and financial condition. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Dec. 31, 2017 | |
RECENT ACCOUNTING PRONOUNCEMENTS [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | 2. RECENT ACCOUNTING PRONOUNCEMENTS RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED — In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date We have established a cross-functional implementation team and utilized a bottom-up approach to analyze the impact of the standard on our arrangements by reviewing the current accounting policies and practices to identify potential differences that would result from applying the requirements of the new standard to our revenue contracts. Based on our analysis to date, we have reached the following tentative conclusions regarding the new standard and how we expect it to affect our consolidated financial statements and related disclosures: · We will adopt the guidance in our quarter ending June 30, 2018. We currently prefer to adopt the standard using the full retrospective method; however, our ability to do so is dependent on many factors, including the completion of our analysis of information necessary to recast prior period financial statements. Based on these and other factors, we may decide to use the modified retrospective method. · Substantially all of our revenue within our technology segment is contractual and is within the scope of ASU No. 2014-09, as amended. The majority of our revenues within our financing segment are scoped out of this update. · The majority of our revenues within our technology segment are derived from sales of third-party products, third-party software, third-party services, such as maintenance and software assurance, and sales of e o We recognize revenue on sales of third party product and third-party software on a gross basis upon delivery and we are still assessing whether we are acting as a principal or an agent in these transactions under the update. o We recognize sales of third party maintenance and software assurance on a net basis at the date of sale and sales of e · We expect that our disclosures in our notes to our consolidated financial statements related to revenue recognition will be significantly expanded under the new standard. Our analysis and evaluation of the new standard will continue through its effective date in our quarter ending June 30, 2018. A substantial amount of work remains to be completed due to the complexity of the new standard, the application of judgment and the requirement for the use of estimates in applying the new standard, as well as the volume of our customer portfolio and the related terms and conditions of our contracts that must be reviewed. In November 2016, the FASB issued ASU 2016-02, Leases In June 2016, the FASB issued ASU 2016-13, Financial Instruments- Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments |
FINANCING RECEIVABLES AND OPERA
FINANCING RECEIVABLES AND OPERATING LEASES | 9 Months Ended |
Dec. 31, 2017 | |
FINANCING RECEIVABLES AND OPERATING LEASES [Abstract] | |
FINANCING RECEIVABLES AND OPERATING LEASES | 3. FINANCING RECEIVABLES AND OPERATING LEASES Our financing receivables and operating leases consist of assets that we finance for our customers, which we manage as a portfolio of investments. Equipment financed for our customers is accounted for as investments in direct financing, sales-type or operating leases in accordance with Accounting Standards Codification (“ASC”) Topic 840, Leases FINANCING RECEIVABLES—NET Our financing receivables, net consist of the following (in thousands): December 31, 2017 Notes Receivables Lease-Related Receivables Total Financing Receivables Minimum payments $ 59,444 $ 73,022 $ 132,466 Estimated unguaranteed residual value (1) - 13,358 13,358 Initial direct costs, net of amortization (2) 369 321 690 Unearned income - (6,034 ) (6,034 ) Reserve for credit losses (3) (451 ) (621 ) (1,072 ) Total, net $ 59,362 $ 80,046 $ 139,408 Reported as: Current $ 33,109 $ 41,489 $ 74,598 Long-term 26,253 38,557 64,810 Total, net $ 59,362 $ 80,046 $ 139,408 (1) Includes estimated unguaranteed residual values of $7,753 thousand for direct financing leases, which have been sold and accounted for as sales. (2) Initial direct costs are shown net of amortization of $334 thousand. (3) For details on reserve for credit losses, refer to Note 5, “Reserves for Credit Losses.” March 31, 2017 Notes Receivables Lease-Related Receivables Total Financing Receivables Minimum payments $ 48,524 $ 57,872 $ 106,396 Estimated unguaranteed residual value (1) - 18,273 18,273 Initial direct costs, net of amortization (2) 279 341 620 Unearned income - (5,913 ) (5,913 ) Reserve for credit losses (3) (3,434 ) (679 ) (4,113 ) Total, net $ 45,369 $ 69,894 $ 115,263 Reported as: Current $ 23,780 $ 27,876 $ 51,656 Long-term 21,589 42,018 63,607 Total, net $ 45,369 $ 69,894 $ 115,263 (1) Includes estimated unguaranteed residual values of $12,677 thousand for direct financing leases which have been sold and accounted for as sales. (2) Initial direct costs are shown net of amortization of $510 thousand. (3) For details on reserve for credit losses, refer to Note 5, “Reserves for Credit Losses.” OPERATING LEASES—NET Operating leases—net represents leases that do not qualify as direct financing leases. The components of the operating leases—net are as follows (in thousands): December 31, 2017 March 31, 2017 Cost of equipment under operating leases $ 16,804 $ 16,725 Accumulated depreciation (9,039 ) (8,449 ) Investment in operating lease equipment—net (1) $ 7,765 $ 8,276 (1) These totals include estimated unguaranteed residual values of $2,077 thousand and $1,117 thousand as of December 31, 2017 and March 31, 2017, respectively. TRANSFERS OF FINANCIAL ASSETS We enter into arrangements to transfer the contractual payments due under financing receivables and operating lease agreements, which are accounted for as sales or secured borrowings in accordance with ASC Topic 860, Transfers and Servicing For transfers accounted for as sales, we derecognize the carrying value of the asset transferred and recognize a net gain or loss on the sale, which are presented within net sales in the consolidated statement of operations. During the three months ended December 31, 2017 and 2016, we recognized net gains of $1.2 million and $0.9 million, respectively, and total proceeds from these sales were $32.8 million and $55.8 million, respectively. During the nine months ended December 31, 2017 and 2016, we recognized net gains of $4.6 million and $4.1 million, respectively, and total proceeds from these sales were $166.9 million and $185.4 million, respectively. For certain assignments of financial assets, we retain a servicing obligation. For assignments accounted for as sales, we allocate a portion of the proceeds to deferred revenues, which is recognized as we perform the services. As of both December 31, 2017 and March 31, 2017, we had deferred revenue of $0.5 million for servicing. In a limited number of such sales, we indemnified the assignee in the event that the lessee elected to early terminate the lease. As of December 31, 2017, our maximum potential future payments related to such guarantees is $0.6 million. We believe the possibility of making any payments to be remote. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 9 Months Ended |
Dec. 31, 2017 | |
GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | 4. GOODWILL AND OTHER INTANGIBLE ASSETS GOODWILL The following table summarizes the changes in the carrying amount of goodwill for the nine months ended December 31, 2017 and 2016, (in thousands): Nine Months Ended December 31, 2017 Nine Months Ended December 31, 2016 Goodwill Accumulated Amortization / Impairment Loss Net Carrying Amount Goodwill Accumulated Amortization / Impairment Loss Net Carrying Amount Balance as of March 31 $ 57,070 $ (8,673 ) $ 48,397 $ 50,824 $ (8,673 ) $ 42,151 Acquisitions 27,996 - 27,996 7,636 - 7,636 Foreign currency translations 153 - 153 (315 ) - (315 ) Balance as of December 31 $ 85,219 $ (8,673 ) $ 76,546 $ 58,145 $ (8,673 ) $ 49,472 All of our goodwill as of December 31, 2017 and March 31, 2017 was assigned to our technology segment, which is also a single reporting unit. See Note 15, "Business Combinations" for additional information regarding our acquisitions. We performed our annual test for goodwill impairment for fiscal year 2018 as of October 1, 2017. We performed a qualitative assessment of goodwill and concluded that the fair value of our technology reporting unit, more likely than not, exceeded its respective carrying value as of October 1, 2017. We performed our annual test for goodwill impairment for fiscal year 2017 as of October 1, 2016. We elected to bypass the qualitative assessment of goodwill and estimate the fair value of our reporting units. The fair value of our technology reporting unit substantially exceeded its carrying value as of October 1, 2016. Our conclusions would not be impacted by a ten percent change in our estimate of the fair value of the reporting unit. OTHER INTANGIBLE ASSETS Our other intangible assets consist of the following at December 31, 2017 and March 31, 2017 (in thousands): December 31, 2017 March 31, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships & other intangibles $ 41,777 $ (16,792 ) $ 24,985 $ 23,373 $ (12,553 ) $ 10,820 Capitalized software development 4,908 (2,479 ) 2,429 3,649 (2,310 ) 1,339 Total $ 46,685 $ (19,271 ) $ 27,414 $ 27,022 $ (14,863 ) $ 12,159 Customer relationships and capitalized software development costs are amortized over an estimated useful life, which is generally between 3 to 8 years. Customer relationships and other intangibles increased for the nine months ended December 31, 2017 due to business acquisitions by $18.4 million, of which $2.4 million is internally developed processes, $15.7 million is customer relationships, $0.2 million is due to foreign exchange translation, and $0.1 million in capitalized software development costs. Total amortization expense for other intangible assets was $1.9 million and $1.1 million for the three months and $4.2 million and $3.4 million for the nine months ended December 31, 2017 and 2016, respectively. See Note 15, “Business Combinations” for additional information regarding acquired intangibles. |
RESERVES FOR CREDIT LOSSES
RESERVES FOR CREDIT LOSSES | 9 Months Ended |
Dec. 31, 2017 | |
RESERVES FOR CREDIT LOSSES [Abstract] | |
RESERVES FOR CREDIT LOSSES | 5. Activity in our reserves for credit losses for the nine months ended December 31, 2017 and 2016 were as follows (in thousands): Accounts Receivable Notes Receivable Lease-Related Receivables Total Balance April 1, 2017 $ 1,279 $ 3,434 $ 679 $ 5,392 Provision for credit losses 165 37 106 308 Write-offs and other - (3,020 ) (164 ) (3,184 ) Balance December 31, 2017 $ 1,444 $ 451 $ 621 $ 2,516 Accounts Receivable Notes Receivable Lease-Related Receivables Total Balance April 1, 2016 $ 1,127 $ 3,381 $ 685 $ 5,193 Provision for credit losses 229 139 93 461 Write-offs and other (32 ) (12 ) - (44 ) Balance December 31, 2016 $ 1,324 $ 3,508 $ 778 $ 5,610 Our reserves for credit losses and minimum payments associated with our notes receivables and lease-related receivables disaggregated on the basis of our impairment method were as follows (in thousands): December 31, 2017 March 31, 2017 Notes Receivable Lease- Related Receivables Notes Receivable Lease- Related Receivables Reserves for credit losses: Ending balance: collectively evaluated for impairment $ 389 $ 621 $ 348 $ 556 Ending balance: individually evaluated for impairment 62 - 3,086 123 Ending balance $ 451 $ 621 $ 3,434 $ 679 Minimum payments: Ending balance: collectively evaluated for impairment $ 59,382 $ 73,022 $ 45,438 $ 57,730 Ending balance: individually evaluated for impairment 62 - 3,086 142 Ending balance $ 59,444 $ 73,022 $ 48,524 $ 57,872 We place receivables on non-accrual status when events, such as a customer’s declaring bankruptcy, occur that indicate a receivable will not be collectable. We charge off uncollectable financing receivables when we stop pursuing collection. As of March 31, 2017 we had a balance outstanding as of $3.2 million for a customer in bankruptcy which was fully reserved and on a non-accrual status. We wrote off this balance against the reserve for credit losses during the nine months ended December 31, 2017, after the bankruptcy case was substantially complete. The age of the recorded minimum lease payments and net credit exposure associated with our investment in direct financing and sales-type leases that are past due disaggregated based on our internally assigned credit quality rating (“CQR”) were as follows as of December 31, 2017 and March 31, 2017 (in thousands): 31-60 Days Past Due 61-90 Days Past Due Greater than 90 Days Past Due Total Past Due Current Unbilled Minimum Lease Payments Total Minimum Lease Payments Unearned Income Non- Recourse Notes Payable Net Credit Exposure December 31, 2017 High CQR $ 188 $ 90 $ 907 $ 1,185 $ 18,238 $ 30,496 $ 49,919 $ (3,027 ) $ (14,420 ) $ 32,472 Average CQR 30 36 216 282 124 22,697 23,103 (1,385 ) (11,413 ) 10,305 Low CQR - - - - - - - - - - Total $ 218 $ 126 $ 1,123 $ 1,467 $ 18,362 $ 53,193 $ 73,022 $ (4,412 ) $ (25,833 ) $ 42,777 March 31, 2017 High CQR $ 379 $ 224 $ 230 $ 833 $ 406 $ 32,532 $ 33,771 $ (2,362 ) $ (12,924 ) $ 18,485 Average CQR 113 20 113 246 91 23,622 23,959 (1,556 ) (13,353 ) 9,050 Low CQR - - 142 142 - - 142 (19 ) - 123 Total $ 492 $ 244 $ 485 $ 1,221 $ 497 $ 56,154 $ 57,872 $ (3,937 ) $ (26,277 ) $ 27,658 The age of the recorded notes receivable balance disaggregated based on our internally assigned CQR were as follows as December 31, 2017 and March 31, 2017 (in thousands): 31-60 Days Past Due 61-90 Days Past Due Greater than 90 Days Past Due Total Past Due Current Unbilled Notes Receivable Total Notes Receivable Non- Recourse Notes Payable Net Credit Exposure December 31, 2017 High CQR $ 4 $ - $ 833 $ 837 $ 2,071 $ 35,001 $ 37,909 $ (21,971 ) $ 15,938 Average CQR 1,086 4 599 1,689 8 19,776 21,473 (15,555 ) 5,918 Low CQR - - 62 62 - - 62 - 62 Total $ 1,090 $ 4 $ 1,494 $ 2,588 $ 2,079 $ 54,777 $ 59,444 $ (37,526 ) $ 21,918 March 31, 2017 High CQR $ 183 $ 663 $ 755 $ 1,601 $ 1,165 $ 23,359 $ 26,125 $ (12,003 ) $ 14,122 Average CQR 28 5 - 33 555 18,725 19,313 (13,732 ) 5,581 Low CQR - - 3,086 3,086 - - 3,086 - 3,086 Total $ 211 $ 668 $ 3,841 $ 4,720 $ 1,720 $ 42,084 $ 48,524 $ (25,735 ) $ 22,789 We estimate losses on our net credit exposure to be between 0% - 5% for customers with highest CQR, as these customers are investment grade or the equivalent of investment grade. We estimate losses on our net credit exposure to be between 2% - 15% for customers with average CQR, and between 15% - 100% for customers with low CQR, which includes customers in bankruptcy. |
PROPERTY, EQUIPMENT, OTHER ASSE
PROPERTY, EQUIPMENT, OTHER ASSETS AND LIABILITIES | 9 Months Ended |
Dec. 31, 2017 | |
PROPERTY, EQUIPMENT, OTHER ASSETS AND LIABILITIES [Abstract] | |
PROPERTY, EQUIPMENT, OTHER ASSETS AND LIABILITIES | 6. PROPERTY, EQUIPMENT, OTHER ASSETS AND LIABILITIES Our property, equipment, other assets and liabilities consist of the following (in thousands): December 31, 2017 March 31, 2017 Other current assets: Deposits & funds held in escrow $ 14,819 $ 39,161 Prepaid assets 10,429 3,388 Other 722 815 Total other current assets $ 25,970 $ 43,364 Property, equipment and other assets Property and equipment, net $ 8,013 $ 6,690 Deferred costs 7,326 3,536 Other 2,293 1,730 Total other assets - long term $ 17,632 $ 11,956 December 31, 2017 March 31, 2017 Other current liabilities: Accrued expenses $ 7,907 $ 7,450 Accrued income taxes payable 170 1,761 Contingent consideration 5,360 554 Other 12,679 9,414 Total other current liabilities $ 26,116 $ 19,179 Other liabilities: Deferred revenue $ 10,064 $ 4,704 Contingent consideration long-term 7,765 1,500 Other 689 876 Total other liabilities - long term $ 18,518 $ 7,080 As of December 31, 2017 we had current and long-term contingent consideration liability balance of $5.4 and $7.8 million, respectively, of which $10.0 million relates to a recent acquisition. For details on the contingent consideration liability, refer to Note 15, “Business Combinations.” As of December 31, 2017 and March 31, 2017 we had customer deposits and funds held in escrow of $14.8 million and $39.2 million, respectively. These balances relate to financial assets that were sold to third-party banks. In conjunction with those sales, a portion of the proceeds were placed in escrow and will be released to us upon payment of outstanding invoices related to the underlying financing arrangements that were sold. |
NOTES PAYABLE AND CREDIT FACILI
NOTES PAYABLE AND CREDIT FACILITY | 9 Months Ended |
Dec. 31, 2017 | |
NOTES PAYABLE AND CREDIT FACILITY [Abstract] | |
NOTES PAYABLE AND CREDIT FACILITY | 7. Non-recourse and recourse obligations consist of the following (in thousands): December 31, 2017 March 31, 2017 Recourse notes payable with interest rates ranging from 3.20% to 4.13% as of March 31, 2017. Current $ - $ 908 Non-recourse notes payable secured by financing receivables and investment in operating leases with interest rates ranging from 2.00% to 8.45% December 31, 2017, and ranging from 2.00% to 7.75% as of March 31, 2017. Current $ 27,649 $ 26,085 Long-term 3,840 10,431 Total non-recourse notes payable $ 31,489 $ 36,516 Principal and interest payments on non-recourse notes payable are generally due monthly in amounts that are approximately equal to the total payments due from the customer under the leases or notes receivable that collateralize the notes payable. The weighted average interest rate for our non-recourse notes payable was 3.73%, as of both December 31, 2017 and March 31, 2017. The weighted average interest rate for our recourse notes payable was .45%, as of March 31, 2017. Under recourse financing, in the event of a default by a customer, the lender has recourse to the customer, the assets serving as collateral, and us. Under non-recourse financing, in the event of a default by a customer, the lender generally only has recourse against the customer, and the assets serving as collateral, but not against us. Our technology segment, through our subsidiary e On July 27, 2017, we executed an amendment to the WFCDF credit facility which temporarily increases the aggregate limit of the two components from $250.0 million to $325.0 million from the date of the agreement through October 31, 2017, and provides us an election beginning July 1 in each subsequent year to similarly temporarily increase the aggregate limit of the two components to $325.0 million ending the earlier of 90 days following the date of election or October 31 of that same year. As of December 31, 2017, the facility agreement had an aggregate limit of the two components of $250 million, and the accounts receivable component had a sub-limit of $30 million, which bears interest assessed at a rate of the One Month LIBOR plus two and one half percent. The credit facility has full recourse to e e e e e e e The facility provided by WFCDF requires a guaranty of $10.5 million by e e Fair Value As of December 31, 2017 and March 31, 2017, the fair value of our long-term recourse and non-recourse notes payable approximated their carrying value. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Dec. 31, 2017 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 8. COMMITMENTS AND CONTINGENCIES Legal Proceedings From time to time, we may be subject to legal proceedings that arise in the ordinary course of business. However, the outcome of legal proceedings and claims brought against us is subject to significant uncertainty. Therefore, although management considers the likelihood of such an outcome to be remote, if one or more of these legal matters were resolved against the Company in a reporting period for amounts in excess of management’s expectations, the Company’s consolidated financial statements for that reporting period could be materially adversely affected. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Dec. 31, 2017 | |
EARNINGS PER SHARE [Abstract] | |
EARNINGS PER SHARE | 9. EARNINGS PER SHARE Basic earnings per share is calculated by dividing net earnings available to common shareholders by the basic weighted average number of shares of common stock outstanding during each period. Diluted earnings per share is calculated by dividing net earnings available to common shareholders by the basic weighted average number of shares of common stock outstanding plus common stock equivalents during each period. The following table provides a reconciliation of the numerators and denominators used to calculate basic and diluted net income per common share as disclosed on our consolidated statements of operations for the three and nine months ended December 31, 2017 and 2016 (in thousands, except per share data). Three Months Ended Nine Months Ended December 31, 2017 2016 2017 2016 Net earnings attributable to common shareholders - basic and diluted $ 15,581 $ 12,620 $ 46,225 $ 40,066 Basic and diluted common shares outstanding: Weighted average common shares outstanding — basic 13,851 13,791 13,845 13,891 Effect of dilutive shares 139 129 177 135 Weighted average shares common outstanding — diluted 13,990 13,920 14,022 14,026 Earnings per common share - basic $ 1.12 $ 0.92 $ 3.34 $ 2.88 Earnings per common share - diluted $ 1.11 $ 0.91 $ 3.30 $ 2.86 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended |
Dec. 31, 2017 | |
STOCKHOLDERS' EQUITY [Abstract] | |
STOCKHOLDERS' EQUITY | 10. Share Repurchase Plan On August 15, 2017, The plan authorized purchases to be made from time to time in the open market, or in privately negotiated transactions, subject to availability. Any repurchased shares will have the status of treasury shares and may be used, when needed, for general corporate purposes. During the nine months ended December 31, 2017, we purchased 125,605 shares of our outstanding common stock at an average cost of $77.88 per share for a total purchase price of $9.8 million under the share repurchase plan. We also acquired 57,725 shares of common stock at a value of $4.4 million to satisfy tax withholding obligations relating to the vesting of employees’ restricted stock. During the nine months ended December 31, 2016, we purchased 656,962 shares of our outstanding common stock at an average cost of $40.81 per share for a total purchase price of $26.8 million under the share repurchase plan. We also purchased 59,472 shares of common stock at a value of $2.6 million to satisfy tax withholding obligations relating to the vesting of employees’ restricted stock. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 9 Months Ended |
Dec. 31, 2017 | |
SHARE-BASED COMPENSATION [Abstract] | |
SHARE-BASED COMPENSATION | 11. SHARE-BASED COMPENSATION Share-Based Plans As of December 31, 2017, we had share-based awards outstanding under the following Restricted Stock Activity For the nine months ended December 31, 2017, we granted 535 restricted shares under the 2008 Director LTIP, 5,310 restricted shares under the 2017 Director LTIP, and 66,530 restricted shares under the 2012 Employee LTIP. For the nine months ended December 31, 2016, we granted 11,384 restricted shares under the 2008 Director LTIP, and 134,538 restricted shares under the 2012 Employee LTIP. A summary of the restricted shares is as follows: Number of Shares Weighted Average Grant-date Fair Value Nonvested April 1, 2017 371,689 $ 40.45 Granted 72,375 $ 80.25 Vested (156,240 ) $ 38.52 Forfeited (4,108 ) $ 39.37 Nonvested December 31, 2017 283,716 $ 51.68 Upon each vesting period of the restricted stock awards, employees are subject to minimum tax withholding obligations. Under the 2012 Employee LTIP, we may purchase a sufficient number of shares due to the participant to satisfy their minimum tax withholding on employee stock awards. For the nine months ended December 31, 2017, the Company had acquired 57,725 shares of common stock at a value of $4.4 million to satisfy tax withholding obligations relating to the vesting of employees’ restricted stock, which was included in treasury stock. Compensation Expense We recognize compensation cost for awards of restricted stock with graded vesting on a straight line basis over the requisite service period. There are no additional conditions for vesting other than service conditions. During the three months ended December 31, 2017 and 2016, we recognized $1.7 million and $1.5 million, respectively, of total share-based compensation expense. During the nine months ended December 31, 2017 and 2016, we recognized $4.9 million and $4.5 million, respectively, of total share-based compensation expense. Unrecognized compensation expense related to non-vested restricted stock was $11.1 million as of December 31, 2017, which will be fully recognized over the next thirty (30) months. We also provide our employees with a contributory 401(k) profit sharing plan. We may make contributions to the plan. These contributions are not required and whether or not we choose to make them is entirely within our discretion. Our employer contributions to the plan are fully vested at all times. For the three months ended December 31, 2017 and 2016, our estimated contribution expense for the plan was $0.5 million and $0.5 million, respectively. For the nine months ended December 31, 2017 and 2016, our estimated contribution expense for the plan was $1.6 million and $1.2 million, respectively. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Dec. 31, 2017 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | 12. INCOME TAXES Income Taxes – Provision Our provision for income tax expense was $0.7 million and $19.5 million for the three and nine months ended December 31, 2017, as compared to $8.7 million and $27.3 million for the same periods in the prior year. Our effective income tax rate for the three and nine months ended December 31, 2017, was 4.2% and 29.7%, respectively, compared to 40.8% and 40.5% for the three and nine months ended December 31, 2016, respectively. In the third quarter, the Company revised its estimated annual effective tax rate to reflect a change in the federal statutory rate from 35% to 21%, resulting from legislation that was enacted on December 22, 2017. The rate change is administratively effective at the beginning of our current fiscal year, using a blended rate for the annual period. As a result, the blended statutory tax rate for our current year is 31.5%. In addition, we recognized an estimated tax benefit in our tax provision for the period related to adjusting our deferred tax balance to reflect the new corporate tax rate. As a result, income tax expense reported for the first nine months was adjusted to reflect the effects of the change in the tax law and resulted in a decrease in income tax expense of $2.6 million during the third quarter. In addition we estimated the tax effect of originating items occurring in the fourth quarter that are expected to reverse at a rate of 21%. This resulted in an additional tax benefit of $0.8 million. The accounting for the effects of the rate change on deferred tax balances is provisional and we will finalize these estimates during our fourth quarter of fiscal year 2018. We re-measured certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 21%. However, we are still analyzing certain aspects of the new tax law and refining our calculations, which could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts. Income Taxes – Uncertain Tax Positions We account for our tax positions in accordance with ASC Topic 740, Income Taxes Our total gross unrecognized tax benefits recorded for uncertain income tax, and interest and penalties thereon, were negligible as of December 31, 2017, and December 31, 2016. We had no additions or reductions to our gross unrecognized tax benefits during the three and nine months ended December 31, 2017. We recognize accrued interest and penalties related to unrecognized tax benefits in income tax expense. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 9 Months Ended |
Dec. 31, 2017 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | 13. FAIR VALUE OF FINANCIAL INSTRUMENTS We account for the fair values of our assets and liabilities in accordance with ASC Topic 820, Fair Value Measurement and Disclosure. Fair Value Measurement Using Recorded Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs December 31, 2017 Assets: Money market funds $ 21,596 $ 21,596 $ - $ - Liabilities: Contingent consideration $ 13,125 $ - $ - $ 13,125 March 31, 2017 Assets: Money market funds $ 50,866 $ 50,866 $ - $ - Liabilities: Contingent consideration $ 554 $ - $ - $ 554 For the three and nine months ended December 31, 2017, we recorded adjustments that increased the fair value of our liability for contingent consideration by $0.7 million, and $12.6 million due to business acquisitions. For the nine months ended December 31, 2017, we made $0.6 million in payments to satisfy the current obligations of the contingent consideration arrangement from our earlier acquisition of Consolidated IT Services. |
SEGMENT REPORTING
SEGMENT REPORTING | 9 Months Ended |
Dec. 31, 2017 | |
SEGMENT REPORTING [Abstract] | |
SEGMENT REPORTING | 14. SEGMENT REPORTING Our operations are conducted through two operating segments that are also both reportable segments. Our technology segment includes sales of information technology products, third-party software, third-party maintenance, advanced professional and managed services and our proprietary software to commercial enterprises, state and local governments, and government contractors. Our financing segment consists of the financing of IT equipment, software and related services to commercial enterprises, state and local governments, and government contractors. We measure the performance of the segments based on operating income. Our reportable segment information was as follows (in thousands): Three Months Ended December 31, 2017 December 31, 2016 Technology Financing Total Technology Financing Total Sales of product and services $ 330,953 $ - $ 330,953 $ 317,391 $ - $ 317,391 Financing revenue - 9,592 9,592 - 8,190 8,190 Fee and other income 1,678 346 2,024 915 161 1,076 Net sales 332,631 9,938 342,569 318,306 8,351 326,657 Cost of sales, product and services 264,487 - 264,487 251,729 - 251,729 Direct lease costs - 1,394 1,394 - 1,142 1,142 Cost of sales 264,487 1,394 265,881 251,729 1,142 252,871 Selling, general, and administrative expenses 53,836 3,298 57,134 47,780 2,380 50,160 Depreciation and amortization 2,893 1 2,894 1,908 2 1,910 Interest and financing costs - 270 270 - 409 409 Operating expenses 56,729 3,569 60,298 49,688 2,791 52,479 Operating income $ 11,415 $ 4,975 $ 16,390 $ 16,889 $ 4,418 $ 21,307 Selected Financial Data - Statement of Cash Flow Depreciation and amortization $ 3,157 $ 1,422 $ 4,579 $ 1,941 $ 985 $ 2,926 Purchases of property, equipment and operating lease equipment $ 2,018 $ 844 $ 2,862 $ 849 $ 3,282 $ 4,131 Selected Financial Data - Balance Sheet Total assets $ 595,584 $ 169,069 $ 764,653 $ 546,728 $ 189,950 $ 736,678 Nine Months Ended December 31, 2017 December 31, 2016 Technology Financing Total Technology Financing Total Sales of product and services $ 1,045,792 $ - $ 1,045,792 $ 968,799 $ - $ 968,799 Financing revenue - 30,698 30,698 - 23,899 23,899 Fee and other income 3,707 374 4,081 3,679 245 3,924 Net sales 1,049,499 31,072 1,080,571 972,478 24,144 996,622 Cost of sales, product and services 834,873 - 834,873 769,780 - 769,780 Direct lease costs - 3,846 3,846 - 3,459 3,459 Cost of sales 834,873 3,846 838,719 769,780 3,459 773,239 Selling, general, and administrative expenses 158,838 9,300 168,138 141,295 8,526 149,821 Depreciation and amortization 7,084 2 7,086 5,400 8 5,408 Interest and financing costs - 903 903 - 1,158 1,158 Operating expenses 165,922 10,205 176,127 146,695 9,692 156,387 Operating income $ 48,704 $ 17,021 $ 65,725 $ 56,003 $ 10,993 $ 66,996 Selected Financial Data - Statement of Cash Flow Depreciation and amortization $ 7,413 $ 3,911 $ 11,324 $ 5,494 $ 3,264 $ 8,758 Purchases of property, equipment and operating lease equipment $ 4,064 $ 2,234 $ 6,298 $ 2,413 $ 4,887 $ 7,300 Selected Financial Data - Balance Sheet Total assets $ 595,584 $ 169,069 $ 764,653 $ 546,728 $ 189,950 $ 736,678 |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 9 Months Ended |
Dec. 31, 2017 | |
BUSINESS COMBINATIONS [Abstract] | |
BUSINESS COMBINATIONS | 15. Integrated Data Storage, LLC acquisition On September 15, 2017, our subsidiary e Plus Technology, inc. acquired of Integrated Data Storage, LLC (“IDS”) though an asset purchase agreement. Headquartered in Oak Brook, IL and with offices in downtown Chicago and Indianapolis, IDS is an advanced data center solutions provider focused on cloud enablement and managed services, including its proprietary IDS Cloud, which features enterprise-class technology infrastructure coupled with consulting services to support private, hybrid, and public cloud deployments. The acquisition expands e Plus’ footprint in the Midwest and enhances its sales and engineering capabilities in cloud services, disaster recovery and backup as a service, storage, data center, and professional services. Our preliminary sum of total consideration transferred is $38.4 million, consisting of $29.8 million paid in cash at closing, less $1.4 million in receivables due to us as a working capital adjustment , plus an additional $10.0 million equal to the preliminary fair value of consideration, contingent on the acquiree’s business operations future gross profit. The contingent consideration was calculated using the Monte Carlo simulation model based on our projections of future gross profits. The maximum payout of the contingent consideration is $15.0 million paid over 3 years. Acquisition Date Amount Accounts receivable and other assets $ 14,353 Property and equipment 1,620 Identified intangible assets 13,650 Accounts payable and other current liabilities (12,313 ) Total identifiable net assets 17,310 Goodwill 21,088 Total purchase consideration $ 38,398 Our sum for consideration transferred and our allocation of the purchase consideration is preliminary and subject to revision as additional information related to the fair value of assets and liabilities becomes available. The identified intangible assets of $13.7 million consist of customer relationships with an estimated useful life of 8 years. The fair value of acquired receivables equals the gross contractual amounts receivable. We expect to collect all acquired receivables. We recognized goodwill related to this transaction of $21.1 million, which was assigned to our technology reporting unit. The goodwill recognized in the acquisition is attributable to the acquired assembled workforce and expected synergies, none of which qualify for recognition as a separate intangible asset. The total amount of goodwill is expected to be deductible for tax purposes. The amount of revenues and earnings of the acquiree since the acquisition date are not material. Likewise, the impact to the revenue and earnings of the combined entity for the current reporting period through the acquisition date had the acquisition date been April 1, 2017, is not material. OneCloud Consulting Inc. acquisition On May 17, 2017, our subsidiary e Plus Technology, inc., acquired 100% of the stock of OneCloud Consulting, Inc. (“OneCloud”). Based in Milpitas, CA, OneCloud is a versatile team of highly trained technology consultants, architects, developers and instructors. OneCloud enables its customers’ cloud and application strategy via professional services, technical education and software development. The acquisition provides us with additional ability to address customers’ needs in cloud-based solutions and infrastructure, including DevOps, OpenStack, and other emerging technologies, to our broad customer base. Our sum of total consideration we transferred was $10.0 million consisting of $7.9 million paid in cash at closing, net of cash acquired, and $2.1 million equal to the fair value of contingent consideration, calculated using the Monte Carlo simulation model. The maximum payout of the contingent consideration is $4.5 million paid over 3 years. Our allocation of the purchase consideration to the assets acquired and liabilities assumed is presented below (in thousands): Acquisition Date Amount Accounts receivable and other assets $ 488 Identified intangible assets 4,130 Accounts payable and other current liabilities (1,822 ) Total identifiable net assets 2,796 Goodwill 7,189 Total purchase consideration $ 9,985 The identified intangible assets of $4.1 million consist of customer relationships of $1.7 million with an estimated useful life of 8 years, and internally developed processes of $2.4 million with an estimated useful life of 5 years. We recognized goodwill related to this transaction of $7.2 million, which was assigned to our technology reporting unit. The goodwill recognized in the acquisition is attributable to the acquired assembled workforce and expected synergies, none of which qualify for recognition as a separate intangible asset. The total amount of goodwill is expected to be deductible for tax purposes. The amount of revenues and earnings of the acquiree since the acquisition date are not material. Likewise, the impact to the revenue and earnings of the combined entity for the current reporting period through the acquisition date had the acquisition date been April 1, 2017, is not material. Consolidated IT Services acquisition On December 6, 2016, our subsidiary e e The total purchase price is $13.1 million including $9.5 million paid in cash at closing and $4.0 million that will be paid in cash in equal quarterly installments over 2 years, less $0.4 million paid back to us as part of the final working capital adjustment. Our allocation of the purchase consideration to the assets acquired and liabilities is presented below (in thousands): Acquisition Date Amount Accounts receivable and other current assets $ 7,491 Property and equipment 1,045 Identified intangible assets 4,090 Accounts payable and other current liabilities (5,786 ) Total identifiable net assets 6,840 Goodwill 6,227 Total purchase consideration $ 13,067 In the nine months ended December 31, 2017, we increased identified intangible assets and decreased goodwill by $280 thousand from the provisional amounts recorded as of March 31, 2017. The identified intangible assets of $4.1 million consist entirely of customer relationships with an estimated useful life of 7 years. We recognized goodwill related to this transaction of $6.2 million, which was assigned to our technology reporting unit. The goodwill recognized in the acquisition is attributable to the acquired assembled workforce and expected synergies, none of which qualify for recognition as a separate intangible asset. The total amount of goodwill is expected to be deductible for tax purposes. The amount of revenues and earnings of the acquiree since the acquisition date are not material. Likewise, the impact to the revenue and earnings of the combined entity for the prior reporting period through the acquisition date had the acquisition date been April 1, 2016 is not material. |
ORGANIZATION AND SUMMARY OF S23
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Dec. 31, 2017 | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION — The unaudited condensed consolidated financial statements include the accounts of e |
INTERIM FINANCIAL STATEMENTS | INTERIM FINANCIAL STATEMENTS — The unaudited condensed consolidated financial statements for the three and nine months ended December 31, 2017 and 2016 were prepared by us, without audit, and include all normal and recurring adjustments that, in the opinion of management, are necessary for a fair presentation of our financial position, results of operations, changes in comprehensive income and cash flows for such periods. Operating results for the three and nine months ended December 31, 2017 and 2016 are not necessarily indicative of results that may be expected for any other interim period or for the full fiscal year ending March 31, 2018 or any other future period. These unaudited condensed consolidated financial statements do not include all disclosures required by the accounting principles generally accepted in the United States (“U.S. GAAP”) for annual financial statements. Our audited consolidated financial statements are contained in our annual report on Form 10-K for the year ended March 31, 2017 (“2017 Annual Report”), which should be read in conjunction with these interim condensed consolidated financial statements. |
USE OF ESTIMATES | USE OF ESTIMATES — The notes to the consolidated financial statements contained in the 2017 Annual Report include additional discussion of the significant accounting policies and estimates used in the preparation of our consolidated financial statements. There have been no material changes to our significant accounting policies and estimates during the nine months ended December 31, 2017. |
STOCK SPLIT | STOCK SPLIT — On March 31, 2017, we completed a two-for-one stock split in the form of a stock dividend. References made to outstanding shares or per share amounts in the accompanying financial statements and disclosures have been retroactively adjusted for this stock split. The number of authorized shares reflected on the consolidated balance sheets was not affected by the stock split. |
CONCENTRATIONS OF RISK | CONCENTRATIONS OF RISK — A substantial portion of our sales of product and services are from sales of Cisco Systems, Hewlett Packard Enterprise (“HPE”) and HP, Inc. (collectively “Hewlett Packard companies”), and NetApp products, which represented approximately 39%, 5% and 7%, and 45%, 7%, and 5%, respectively, for the three and nine months ended December 31, 2017. Sales of Cisco Systems, Hewlett Packard companies, and NetApp represented approximately 45%, 6% and 6%, and 49%, 6% and 5%, respectively, for the three and nine months ended December 31, 2016. Any changes in our vendors’ ability to provide products or incentive programs could have a material adverse effect on our business, results of operations and financial condition. |
RECENT ACCOUNTING PRONOUNCEME24
RECENT ACCOUNTING PRONOUNCEMENTS (Policies) | 9 Months Ended |
Dec. 31, 2017 | |
RECENT ACCOUNTING PRONOUNCEMENTS [Abstract] | |
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED | RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED — In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date We have established a cross-functional implementation team and utilized a bottom-up approach to analyze the impact of the standard on our arrangements by reviewing the current accounting policies and practices to identify potential differences that would result from applying the requirements of the new standard to our revenue contracts. Based on our analysis to date, we have reached the following tentative conclusions regarding the new standard and how we expect it to affect our consolidated financial statements and related disclosures: · We will adopt the guidance in our quarter ending June 30, 2018. We currently prefer to adopt the standard using the full retrospective method; however, our ability to do so is dependent on many factors, including the completion of our analysis of information necessary to recast prior period financial statements. Based on these and other factors, we may decide to use the modified retrospective method. · Substantially all of our revenue within our technology segment is contractual and is within the scope of ASU No. 2014-09, as amended. The majority of our revenues within our financing segment are scoped out of this update. · The majority of our revenues within our technology segment are derived from sales of third-party products, third-party software, third-party services, such as maintenance and software assurance, and sales of e o We recognize revenue on sales of third party product and third-party software on a gross basis upon delivery and we are still assessing whether we are acting as a principal or an agent in these transactions under the update. o We recognize sales of third party maintenance and software assurance on a net basis at the date of sale and sales of e · We expect that our disclosures in our notes to our consolidated financial statements related to revenue recognition will be significantly expanded under the new standard. Our analysis and evaluation of the new standard will continue through its effective date in our quarter ending June 30, 2018. A substantial amount of work remains to be completed due to the complexity of the new standard, the application of judgment and the requirement for the use of estimates in applying the new standard, as well as the volume of our customer portfolio and the related terms and conditions of our contracts that must be reviewed. In November 2016, the FASB issued ASU 2016-02, Leases In June 2016, the FASB issued ASU 2016-13, Financial Instruments- Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments |
FINANCING RECEIVABLES AND OPE25
FINANCING RECEIVABLES AND OPERATING LEASES (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
FINANCING RECEIVABLES AND OPERATING LEASES [Abstract] | |
Components of Notes Receivable Net and Investments in Leases | Our financing receivables, net consist of the following (in thousands): December 31, 2017 Notes Receivables Lease-Related Receivables Total Financing Receivables Minimum payments $ 59,444 $ 73,022 $ 132,466 Estimated unguaranteed residual value (1) - 13,358 13,358 Initial direct costs, net of amortization (2) 369 321 690 Unearned income - (6,034 ) (6,034 ) Reserve for credit losses (3) (451 ) (621 ) (1,072 ) Total, net $ 59,362 $ 80,046 $ 139,408 Reported as: Current $ 33,109 $ 41,489 $ 74,598 Long-term 26,253 38,557 64,810 Total, net $ 59,362 $ 80,046 $ 139,408 (1) Includes estimated unguaranteed residual values of $7,753 thousand for direct financing leases, which have been sold and accounted for as sales. (2) Initial direct costs are shown net of amortization of $334 thousand. (3) For details on reserve for credit losses, refer to Note 5, “Reserves for Credit Losses.” March 31, 2017 Notes Receivables Lease-Related Receivables Total Financing Receivables Minimum payments $ 48,524 $ 57,872 $ 106,396 Estimated unguaranteed residual value (1) - 18,273 18,273 Initial direct costs, net of amortization (2) 279 341 620 Unearned income - (5,913 ) (5,913 ) Reserve for credit losses (3) (3,434 ) (679 ) (4,113 ) Total, net $ 45,369 $ 69,894 $ 115,263 Reported as: Current $ 23,780 $ 27,876 $ 51,656 Long-term 21,589 42,018 63,607 Total, net $ 45,369 $ 69,894 $ 115,263 (1) Includes estimated unguaranteed residual values of $12,677 thousand for direct financing leases which have been sold and accounted for as sales. (2) Initial direct costs are shown net of amortization of $510 thousand. (3) For details on reserve for credit losses, refer to Note 5, “Reserves for Credit Losses.” |
Investment in Operating Lease Equipment - Net | Operating leases—net represents leases that do not qualify as direct financing leases. The components of the operating leases—net are as follows (in thousands): December 31, 2017 March 31, 2017 Cost of equipment under operating leases $ 16,804 $ 16,725 Accumulated depreciation (9,039 ) (8,449 ) Investment in operating lease equipment—net (1) $ 7,765 $ 8,276 (1) These totals include estimated unguaranteed residual values of $2,077 thousand and $1,117 thousand as of December 31, 2017 and March 31, 2017, respectively. |
GOODWILL AND OTHER INTANGIBLE26
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract] | |
Changes in Goodwill | The following table summarizes the changes in the carrying amount of goodwill for the nine months ended December 31, 2017 and 2016, (in thousands): Nine Months Ended December 31, 2017 Nine Months Ended December 31, 2016 Goodwill Accumulated Amortization / Impairment Loss Net Carrying Amount Goodwill Accumulated Amortization / Impairment Loss Net Carrying Amount Balance as of March 31 $ 57,070 $ (8,673 ) $ 48,397 $ 50,824 $ (8,673 ) $ 42,151 Acquisitions 27,996 - 27,996 7,636 - 7,636 Foreign currency translations 153 - 153 (315 ) - (315 ) Balance as of December 31 $ 85,219 $ (8,673 ) $ 76,546 $ 58,145 $ (8,673 ) $ 49,472 |
Components of Goodwill and Other Intangible Assets | Our other intangible assets consist of the following at December 31, 2017 and March 31, 2017 (in thousands): December 31, 2017 March 31, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships & other intangibles $ 41,777 $ (16,792 ) $ 24,985 $ 23,373 $ (12,553 ) $ 10,820 Capitalized software development 4,908 (2,479 ) 2,429 3,649 (2,310 ) 1,339 Total $ 46,685 $ (19,271 ) $ 27,414 $ 27,022 $ (14,863 ) $ 12,159 |
RESERVES FOR CREDIT LOSSES (Tab
RESERVES FOR CREDIT LOSSES (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
RESERVES FOR CREDIT LOSSES [Abstract] | |
Activity in Reserves for Credit Losses | Activity in our reserves for credit losses for the nine months ended December 31, 2017 and 2016 were as follows (in thousands): Accounts Receivable Notes Receivable Lease-Related Receivables Total Balance April 1, 2017 $ 1,279 $ 3,434 $ 679 $ 5,392 Provision for credit losses 165 37 106 308 Write-offs and other - (3,020 ) (164 ) (3,184 ) Balance December 31, 2017 $ 1,444 $ 451 $ 621 $ 2,516 Accounts Receivable Notes Receivable Lease-Related Receivables Total Balance April 1, 2016 $ 1,127 $ 3,381 $ 685 $ 5,193 Provision for credit losses 229 139 93 461 Write-offs and other (32 ) (12 ) - (44 ) Balance December 31, 2016 $ 1,324 $ 3,508 $ 778 $ 5,610 |
Reserve for Credit Losses and Minimum Lease Payments Associated with Notes Receivable and Investment in Direct Financing and Sales-type Lease Balances Disaggregated on the Basis of Impairment Method | Our reserves for credit losses and minimum payments associated with our notes receivables and lease-related receivables disaggregated on the basis of our impairment method were as follows (in thousands): December 31, 2017 March 31, 2017 Notes Receivable Lease- Related Receivables Notes Receivable Lease- Related Receivables Reserves for credit losses: Ending balance: collectively evaluated for impairment $ 389 $ 621 $ 348 $ 556 Ending balance: individually evaluated for impairment 62 - 3,086 123 Ending balance $ 451 $ 621 $ 3,434 $ 679 Minimum payments: Ending balance: collectively evaluated for impairment $ 59,382 $ 73,022 $ 45,438 $ 57,730 Ending balance: individually evaluated for impairment 62 - 3,086 142 Ending balance $ 59,444 $ 73,022 $ 48,524 $ 57,872 |
Balance Disaggregated Based on Internally Assigned CQR | The age of the recorded minimum lease payments and net credit exposure associated with our investment in direct financing and sales-type leases that are past due disaggregated based on our internally assigned credit quality rating (“CQR”) were as follows as of December 31, 2017 and March 31, 2017 (in thousands): 31-60 Days Past Due 61-90 Days Past Due Greater than 90 Days Past Due Total Past Due Current Unbilled Minimum Lease Payments Total Minimum Lease Payments Unearned Income Non- Recourse Notes Payable Net Credit Exposure December 31, 2017 High CQR $ 188 $ 90 $ 907 $ 1,185 $ 18,238 $ 30,496 $ 49,919 $ (3,027 ) $ (14,420 ) $ 32,472 Average CQR 30 36 216 282 124 22,697 23,103 (1,385 ) (11,413 ) 10,305 Low CQR - - - - - - - - - - Total $ 218 $ 126 $ 1,123 $ 1,467 $ 18,362 $ 53,193 $ 73,022 $ (4,412 ) $ (25,833 ) $ 42,777 March 31, 2017 High CQR $ 379 $ 224 $ 230 $ 833 $ 406 $ 32,532 $ 33,771 $ (2,362 ) $ (12,924 ) $ 18,485 Average CQR 113 20 113 246 91 23,622 23,959 (1,556 ) (13,353 ) 9,050 Low CQR - - 142 142 - - 142 (19 ) - 123 Total $ 492 $ 244 $ 485 $ 1,221 $ 497 $ 56,154 $ 57,872 $ (3,937 ) $ (26,277 ) $ 27,658 |
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR | The age of the recorded notes receivable balance disaggregated based on our internally assigned CQR were as follows as December 31, 2017 and March 31, 2017 (in thousands): 31-60 Days Past Due 61-90 Days Past Due Greater than 90 Days Past Due Total Past Due Current Unbilled Notes Receivable Total Notes Receivable Non- Recourse Notes Payable Net Credit Exposure December 31, 2017 High CQR $ 4 $ - $ 833 $ 837 $ 2,071 $ 35,001 $ 37,909 $ (21,971 ) $ 15,938 Average CQR 1,086 4 599 1,689 8 19,776 21,473 (15,555 ) 5,918 Low CQR - - 62 62 - - 62 - 62 Total $ 1,090 $ 4 $ 1,494 $ 2,588 $ 2,079 $ 54,777 $ 59,444 $ (37,526 ) $ 21,918 March 31, 2017 High CQR $ 183 $ 663 $ 755 $ 1,601 $ 1,165 $ 23,359 $ 26,125 $ (12,003 ) $ 14,122 Average CQR 28 5 - 33 555 18,725 19,313 (13,732 ) 5,581 Low CQR - - 3,086 3,086 - - 3,086 - 3,086 Total $ 211 $ 668 $ 3,841 $ 4,720 $ 1,720 $ 42,084 $ 48,524 $ (25,735 ) $ 22,789 |
PROPERTY, EQUIPMENT, OTHER AS28
PROPERTY, EQUIPMENT, OTHER ASSETS AND LIABILITIES (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
PROPERTY, EQUIPMENT, OTHER ASSETS AND LIABILITIES [Abstract] | |
Property, Equipment, Other Assets and Liabilities | Our property, equipment, other assets and liabilities consist of the following (in thousands): December 31, 2017 March 31, 2017 Other current assets: Deposits & funds held in escrow $ 14,819 $ 39,161 Prepaid assets 10,429 3,388 Other 722 815 Total other current assets $ 25,970 $ 43,364 Property, equipment and other assets Property and equipment, net $ 8,013 $ 6,690 Deferred costs 7,326 3,536 Other 2,293 1,730 Total other assets - long term $ 17,632 $ 11,956 December 31, 2017 March 31, 2017 Other current liabilities: Accrued expenses $ 7,907 $ 7,450 Accrued income taxes payable 170 1,761 Contingent consideration 5,360 554 Other 12,679 9,414 Total other current liabilities $ 26,116 $ 19,179 Other liabilities: Deferred revenue $ 10,064 $ 4,704 Contingent consideration long-term 7,765 1,500 Other 689 876 Total other liabilities - long term $ 18,518 $ 7,080 |
NOTES PAYABLE AND CREDIT FACI29
NOTES PAYABLE AND CREDIT FACILITY (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
NOTES PAYABLE AND CREDIT FACILITY [Abstract] | |
Non-recourse and Recourse Obligations | Non-recourse and recourse obligations consist of the following (in thousands): December 31, 2017 March 31, 2017 Recourse notes payable with interest rates ranging from 3.20% to 4.13% as of March 31, 2017. Current $ - $ 908 Non-recourse notes payable secured by financing receivables and investment in operating leases with interest rates ranging from 2.00% to 8.45% December 31, 2017, and ranging from 2.00% to 7.75% as of March 31, 2017. Current $ 27,649 $ 26,085 Long-term 3,840 10,431 Total non-recourse notes payable $ 31,489 $ 36,516 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
EARNINGS PER SHARE [Abstract] | |
Reconciliation of Numerators and Denominators Used to Calculate Basic and Diluted Earnings per Common Share | The following table provides a reconciliation of the numerators and denominators used to calculate basic and diluted net income per common share as disclosed on our consolidated statements of operations for the three and nine months ended December 31, 2017 and 2016 (in thousands, except per share data). Three Months Ended Nine Months Ended December 31, 2017 2016 2017 2016 Net earnings attributable to common shareholders - basic and diluted $ 15,581 $ 12,620 $ 46,225 $ 40,066 Basic and diluted common shares outstanding: Weighted average common shares outstanding — basic 13,851 13,791 13,845 13,891 Effect of dilutive shares 139 129 177 135 Weighted average shares common outstanding — diluted 13,990 13,920 14,022 14,026 Earnings per common share - basic $ 1.12 $ 0.92 $ 3.34 $ 2.88 Earnings per common share - diluted $ 1.11 $ 0.91 $ 3.30 $ 2.86 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
SHARE-BASED COMPENSATION [Abstract] | |
Summary of Restricted Shares | A summary of the restricted shares is as follows: Number of Shares Weighted Average Grant-date Fair Value Nonvested April 1, 2017 371,689 $ 40.45 Granted 72,375 $ 80.25 Vested (156,240 ) $ 38.52 Forfeited (4,108 ) $ 39.37 Nonvested December 31, 2017 283,716 $ 51.68 |
FAIR VALUE OF FINANCIAL INSTR32
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | |
Fair Value Hierarchy of Financial Instruments | The following table summarizes the fair value hierarchy of our financial instruments as of December 31, 2017 and March 31, 2017 (in thousands): Fair Value Measurement Using Recorded Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs December 31, 2017 Assets: Money market funds $ 21,596 $ 21,596 $ - $ - Liabilities: Contingent consideration $ 13,125 $ - $ - $ 13,125 March 31, 2017 Assets: Money market funds $ 50,866 $ 50,866 $ - $ - Liabilities: Contingent consideration $ 554 $ - $ - $ 554 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
SEGMENT REPORTING [Abstract] | |
Segment Reporting Information, by Reportable Segment | Our reportable segment information was as follows (in thousands): Three Months Ended December 31, 2017 December 31, 2016 Technology Financing Total Technology Financing Total Sales of product and services $ 330,953 $ - $ 330,953 $ 317,391 $ - $ 317,391 Financing revenue - 9,592 9,592 - 8,190 8,190 Fee and other income 1,678 346 2,024 915 161 1,076 Net sales 332,631 9,938 342,569 318,306 8,351 326,657 Cost of sales, product and services 264,487 - 264,487 251,729 - 251,729 Direct lease costs - 1,394 1,394 - 1,142 1,142 Cost of sales 264,487 1,394 265,881 251,729 1,142 252,871 Selling, general, and administrative expenses 53,836 3,298 57,134 47,780 2,380 50,160 Depreciation and amortization 2,893 1 2,894 1,908 2 1,910 Interest and financing costs - 270 270 - 409 409 Operating expenses 56,729 3,569 60,298 49,688 2,791 52,479 Operating income $ 11,415 $ 4,975 $ 16,390 $ 16,889 $ 4,418 $ 21,307 Selected Financial Data - Statement of Cash Flow Depreciation and amortization $ 3,157 $ 1,422 $ 4,579 $ 1,941 $ 985 $ 2,926 Purchases of property, equipment and operating lease equipment $ 2,018 $ 844 $ 2,862 $ 849 $ 3,282 $ 4,131 Selected Financial Data - Balance Sheet Total assets $ 595,584 $ 169,069 $ 764,653 $ 546,728 $ 189,950 $ 736,678 Nine Months Ended December 31, 2017 December 31, 2016 Technology Financing Total Technology Financing Total Sales of product and services $ 1,045,792 $ - $ 1,045,792 $ 968,799 $ - $ 968,799 Financing revenue - 30,698 30,698 - 23,899 23,899 Fee and other income 3,707 374 4,081 3,679 245 3,924 Net sales 1,049,499 31,072 1,080,571 972,478 24,144 996,622 Cost of sales, product and services 834,873 - 834,873 769,780 - 769,780 Direct lease costs - 3,846 3,846 - 3,459 3,459 Cost of sales 834,873 3,846 838,719 769,780 3,459 773,239 Selling, general, and administrative expenses 158,838 9,300 168,138 141,295 8,526 149,821 Depreciation and amortization 7,084 2 7,086 5,400 8 5,408 Interest and financing costs - 903 903 - 1,158 1,158 Operating expenses 165,922 10,205 176,127 146,695 9,692 156,387 Operating income $ 48,704 $ 17,021 $ 65,725 $ 56,003 $ 10,993 $ 66,996 Selected Financial Data - Statement of Cash Flow Depreciation and amortization $ 7,413 $ 3,911 $ 11,324 $ 5,494 $ 3,264 $ 8,758 Purchases of property, equipment and operating lease equipment $ 4,064 $ 2,234 $ 6,298 $ 2,413 $ 4,887 $ 7,300 Selected Financial Data - Balance Sheet Total assets $ 595,584 $ 169,069 $ 764,653 $ 546,728 $ 189,950 $ 736,678 |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
Integrated Data Storage LLC [Member] | |
Business Acquisition [Line Items] | |
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed | Our preliminary allocation of the purchase consideration to the assets acquired and liabilities assumed is presented below (in thousands): Acquisition Date Amount Accounts receivable and other assets $ 14,353 Property and equipment 1,620 Identified intangible assets 13,650 Accounts payable and other current liabilities (12,313 ) Total identifiable net assets 17,310 Goodwill 21,088 Total purchase consideration $ 38,398 |
OneCloud Consulting, Inc [Member] | |
Business Acquisition [Line Items] | |
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed | Our allocation of the purchase consideration to the assets acquired and liabilities assumed is presented below (in thousands): Acquisition Date Amount Accounts receivable and other assets $ 488 Identified intangible assets 4,130 Accounts payable and other current liabilities (1,822 ) Total identifiable net assets 2,796 Goodwill 7,189 Total purchase consideration $ 9,985 |
Consolidated IT Services [Member] | |
Business Acquisition [Line Items] | |
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed | Our allocation of the purchase consideration to the assets acquired and liabilities is presented below (in thousands): Acquisition Date Amount Accounts receivable and other current assets $ 7,491 Property and equipment 1,045 Identified intangible assets 4,090 Accounts payable and other current liabilities (5,786 ) Total identifiable net assets 6,840 Goodwill 6,227 Total purchase consideration $ 13,067 |
ORGANIZATION AND SUMMARY OF S35
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2017 | |
STOCK SPLIT [Abstract] | |||||
Stock split ratio | 2 | ||||
Sales Revenue, Goods and Services [Member] | Cisco Systems [Member] | |||||
Concentration of risk [Abstract] | |||||
Percentage of concentration risk | 39.00% | 45.00% | 45.00% | 49.00% | |
Sales Revenue, Goods and Services [Member] | Hewlett Packard [Member] | |||||
Concentration of risk [Abstract] | |||||
Percentage of concentration risk | 5.00% | 6.00% | 7.00% | 6.00% | |
Sales Revenue, Goods and Services [Member] | NetApp [Member] | |||||
Concentration of risk [Abstract] | |||||
Percentage of concentration risk | 7.00% | 6.00% | 5.00% | 5.00% |
FINANCING RECEIVABLES AND OPE36
FINANCING RECEIVABLES AND OPERATING LEASES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||
Reserve for credit losses | $ (2,516) | $ (5,610) | $ (2,516) | $ (5,610) | $ (5,392) | $ (5,193) | ||||
Reported as [Abstract] | ||||||||||
Current | 74,598 | 74,598 | 51,656 | |||||||
Estimated unguaranteed residual values for direct financing lease | 7,753 | 7,753 | 12,677 | |||||||
Accumulated amortization of initial direct cost | 334 | 334 | 510 | |||||||
Investment in operating lease equipment - net [Abstract] | ||||||||||
Cost of equipment under operating leases | 16,804 | 16,804 | 16,725 | |||||||
Accumulated depreciation | (9,039) | (9,039) | (8,449) | |||||||
Investment in operating lease equipment - net | [1] | 7,765 | 7,765 | 8,276 | ||||||
Unguaranteed residual value of operating lease equipment net | 2,077 | 2,077 | 1,117 | |||||||
Collateral for non-recourse notes payable - Finance receivables | 37,200 | 37,200 | 33,100 | |||||||
Collateral for non-recourse notes payable - Operating leases | 5,900 | 5,900 | 6,600 | |||||||
Gain on sale of financing receivables | 1,200 | 900 | 4,600 | 4,100 | ||||||
Proceeds from sale of financing receivables | 32,800 | 55,800 | 166,900 | 185,400 | ||||||
Deferred revenue | 500 | 500 | 500 | |||||||
Maximum potential future payments related guarantees | 600 | 600 | ||||||||
Notes Receivables [Member] | ||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||
Minimum payments | 59,444 | 59,444 | 48,524 | |||||||
Estimated unguaranteed residual value | 0 | [2] | 0 | [2] | 0 | [3] | ||||
Initial direct costs, net of amortization | 369 | [4] | 369 | [4] | 279 | [5] | ||||
Unearned income | 0 | 0 | 0 | |||||||
Reserve for credit losses | (451) | [6] | (3,508) | (451) | [6] | (3,508) | (3,434) | [6] | (3,381) | |
Total, net | 59,362 | 59,362 | 45,369 | |||||||
Reported as [Abstract] | ||||||||||
Current | 33,109 | 33,109 | 23,780 | |||||||
Long-term | 26,253 | 26,253 | 21,589 | |||||||
Total, net | 59,362 | 59,362 | 45,369 | |||||||
Lease-Related Receivables [Member] | ||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||
Minimum payments | 73,022 | 73,022 | 57,872 | |||||||
Estimated unguaranteed residual value | 13,358 | [2] | 13,358 | [2] | 18,273 | [3] | ||||
Initial direct costs, net of amortization | 321 | [4] | 321 | [4] | 341 | [5] | ||||
Unearned income | (6,034) | (6,034) | (5,913) | |||||||
Reserve for credit losses | (621) | [6] | $ (778) | (621) | [6] | $ (778) | (679) | [6] | $ (685) | |
Total, net | 80,046 | 80,046 | 69,894 | |||||||
Reported as [Abstract] | ||||||||||
Current | 41,489 | 41,489 | 27,876 | |||||||
Long-term | 38,557 | 38,557 | 42,018 | |||||||
Total, net | 80,046 | 80,046 | 69,894 | |||||||
Financing Receivables [Member] | ||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||
Minimum payments | 132,466 | 132,466 | 106,396 | |||||||
Estimated unguaranteed residual value | 13,358 | [2] | 13,358 | [2] | 18,273 | [3] | ||||
Initial direct costs, net of amortization | 690 | [4] | 690 | [4] | 620 | [5] | ||||
Unearned income | (6,034) | (6,034) | (5,913) | |||||||
Reserve for credit losses | [6] | (1,072) | (1,072) | (4,113) | ||||||
Total, net | 139,408 | 139,408 | 115,263 | |||||||
Reported as [Abstract] | ||||||||||
Current | 74,598 | 74,598 | 51,656 | |||||||
Long-term | 64,810 | 64,810 | 63,607 | |||||||
Total, net | $ 139,408 | $ 139,408 | $ 115,263 | |||||||
[1] | These totals include estimated unguaranteed residual values of $2,077 thousand and $1,117 thousand as of December 31, 2017 and March 31, 2017, respectively. | |||||||||
[2] | Includes estimated unguaranteed residual values of $7,753 thousand for direct financing leases, which have been sold and accounted for as sales. | |||||||||
[3] | Includes estimated unguaranteed residual values of $12,677 thousand for direct financing leases which have been sold and accounted for as sales. | |||||||||
[4] | Initial direct costs are shown net of amortization of $334 thousand. | |||||||||
[5] | Initial direct costs are shown net of amortization of $510 thousand. | |||||||||
[6] | For details on reserve for credit losses, refer to Note 5, "Reserves for Credit Losses." |
GOODWILL AND OTHER INTANGIBLE37
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2017USD ($)Unit | Dec. 31, 2016USD ($) | Mar. 31, 2017USD ($) | |
Goodwill [Roll Forward] | |||||
Goodwill, Beginning Balance | $ 57,070 | $ 50,824 | |||
Goodwill, Accumulated Amortization / Impairment Loss, Beginning Balance | (8,673) | (8,673) | |||
Goodwill, Net Carrying Amount, Beginning Balance | 48,397 | 42,151 | |||
Acquisitions | 27,996 | 7,636 | |||
Foreign currency translations | 153 | (315) | |||
Goodwill, Ending Balance | $ 85,219 | $ 58,145 | 85,219 | 58,145 | |
Goodwill, Accumulated Amortization / Impairment Loss, Ending Balance | (8,673) | (8,673) | (8,673) | (8,673) | |
Goodwill, Net Carrying Amount, Ending Balance | $ 76,546 | $ 49,472 | $ 76,546 | 49,472 | |
Number of reporting units | Unit | 1 | ||||
Percentage change in the fair value | 10.00% | 10.00% | |||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangibles assets, Gross carrying amount | $ 46,685 | $ 46,685 | $ 27,022 | ||
Intangibles Assets, Accumulated amortization | (19,271) | (19,271) | (14,863) | ||
Intangible assets, Net Carrying Amount | 27,414 | 27,414 | 12,159 | ||
Foreign exchange transactions | 200 | ||||
Capitalized software development costs | 200 | ||||
Total amortization expense for other intangible assets | 1,900 | $ 1,100 | 4,200 | $ 3,400 | |
Customer Relationships and Other Intangibles [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangibles assets, Gross carrying amount | 41,777 | 41,777 | 23,373 | ||
Intangibles Assets, Accumulated amortization | (16,792) | (16,792) | (12,553) | ||
Intangible assets, Net Carrying Amount | 24,985 | 24,985 | 10,820 | ||
Increase in intangible assets due to business acquisitions | 18,100 | ||||
Internally Developed Processes [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets acquired | 2,400 | ||||
Customer Relationships [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets acquired | $ 15,700 | ||||
Customer Relationships [Member] | Minimum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Estimated useful life | 3 years | ||||
Customer Relationships [Member] | Maximum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Estimated useful life | 8 years | ||||
Capitalized Software Development [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangibles assets, Gross carrying amount | 4,908 | $ 4,908 | 3,649 | ||
Intangibles Assets, Accumulated amortization | (2,479) | (2,479) | (2,310) | ||
Intangible assets, Net Carrying Amount | $ 2,429 | $ 2,429 | $ 1,339 | ||
Capitalized Software Development [Member] | Minimum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Estimated useful life | 3 years | ||||
Capitalized Software Development [Member] | Maximum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Estimated useful life | 8 years | ||||
Trade Names and Trademarks [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Estimated useful life | 10 years |
RESERVES FOR CREDIT LOSSES (Det
RESERVES FOR CREDIT LOSSES (Details) - USD ($) $ in Thousands | 9 Months Ended | ||||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Mar. 31, 2017 | ||||
Activity in reserves for credit losses [Roll Forward] | |||||||
Balance | $ 5,392 | $ 5,193 | |||||
Provision for credit losses | 308 | 461 | |||||
Write-offs and other | (3,184) | (44) | |||||
Balance | 2,516 | 5,610 | |||||
Reserve for credit losses [Abstract] | |||||||
Ending balance | 5,392 | 5,193 | $ 2,516 | $ 5,392 | |||
Minimum payments [Abstract] | |||||||
Ending balance: individually evaluated for impairment | 3,200 | ||||||
Accounts Receivable [Member] | |||||||
Activity in reserves for credit losses [Roll Forward] | |||||||
Balance | 1,279 | 1,127 | |||||
Provision for credit losses | 165 | 229 | |||||
Write-offs and other | 0 | (32) | |||||
Balance | 1,444 | 1,324 | |||||
Reserve for credit losses [Abstract] | |||||||
Ending balance | 1,279 | 1,127 | 1,444 | 1,279 | |||
Notes Receivable [Member] | |||||||
Activity in reserves for credit losses [Roll Forward] | |||||||
Balance | 3,434 | [1] | 3,381 | ||||
Provision for credit losses | 37 | 139 | |||||
Write-offs and other | (3,020) | (12) | |||||
Balance | 451 | [1] | 3,508 | ||||
Reserve for credit losses [Abstract] | |||||||
Ending balance: collectively evaluated for impairment | 389 | 348 | |||||
Ending balance: individually evaluated for impairment | 62 | 3,086 | |||||
Ending balance | 451 | [1] | 3,381 | 451 | [1] | 3,434 | [1] |
Minimum payments [Abstract] | |||||||
Ending balance: collectively evaluated for impairment | 59,382 | 45,438 | |||||
Ending balance: individually evaluated for impairment | 62 | 3,086 | |||||
Ending balance | 59,444 | 48,524 | |||||
Lease-Related Receivables [Member] | |||||||
Activity in reserves for credit losses [Roll Forward] | |||||||
Balance | 679 | [1] | 685 | ||||
Provision for credit losses | 106 | 93 | |||||
Write-offs and other | (164) | 0 | |||||
Balance | 621 | [1] | 778 | ||||
Reserve for credit losses [Abstract] | |||||||
Ending balance: collectively evaluated for impairment | 621 | 556 | |||||
Ending balance: individually evaluated for impairment | 0 | 123 | |||||
Ending balance | $ 621 | [1] | $ 685 | 621 | [1] | 679 | [1] |
Minimum payments [Abstract] | |||||||
Ending balance: collectively evaluated for impairment | 73,022 | 57,730 | |||||
Ending balance: individually evaluated for impairment | 0 | 142 | |||||
Ending balance | $ 73,022 | $ 57,872 | |||||
[1] | For details on reserve for credit losses, refer to Note 5, "Reserves for Credit Losses." |
RESERVES FOR CREDIT LOSSES, CQR
RESERVES FOR CREDIT LOSSES, CQR (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Mar. 31, 2017 |
Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total past due | $ 1,467 | $ 1,221 |
Current | 18,362 | 497 |
Unbilled minimum lease payments | 53,193 | 56,154 |
Total minimum lease payments | 73,022 | 57,872 |
Unearned income | (4,412) | (3,937) |
Non-recourse notes payable | (25,833) | (26,277) |
Net credit exposure | 42,777 | 27,658 |
Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total past due | 2,588 | 4,720 |
Current | 2,079 | 1,720 |
Unbilled minimum lease payments | 54,777 | 42,084 |
Total minimum lease payments | 59,444 | 48,524 |
Non-recourse notes payable | (37,526) | (25,735) |
Net credit exposure | $ 21,918 | 22,789 |
High CQR [Member] | Minimum [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Losses on net credit exposure | 0.00% | |
High CQR [Member] | Maximum [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Losses on net credit exposure | 5.00% | |
High CQR [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total past due | $ 1,185 | 833 |
Current | 18,238 | 406 |
Unbilled minimum lease payments | 30,496 | 32,532 |
Total minimum lease payments | 49,919 | 33,771 |
Unearned income | (3,027) | (2,362) |
Non-recourse notes payable | (14,420) | (12,924) |
Net credit exposure | 32,472 | 18,485 |
High CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total past due | 837 | 1,601 |
Current | 2,071 | 1,165 |
Unbilled minimum lease payments | 35,001 | 23,359 |
Total minimum lease payments | 37,909 | 26,125 |
Non-recourse notes payable | (21,971) | (12,003) |
Net credit exposure | $ 15,938 | 14,122 |
Average CQR [Member] | Minimum [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Losses on net credit exposure | 2.00% | |
Average CQR [Member] | Maximum [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Losses on net credit exposure | 15.00% | |
Average CQR [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total past due | $ 282 | 246 |
Current | 124 | 91 |
Unbilled minimum lease payments | 22,697 | 23,622 |
Total minimum lease payments | 23,103 | 23,959 |
Unearned income | (1,385) | (1,556) |
Non-recourse notes payable | (11,413) | (13,353) |
Net credit exposure | 10,305 | 9,050 |
Average CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total past due | 1,689 | 33 |
Current | 8 | 555 |
Unbilled minimum lease payments | 19,776 | 18,725 |
Total minimum lease payments | 21,473 | 19,313 |
Non-recourse notes payable | (15,555) | (13,732) |
Net credit exposure | $ 5,918 | 5,581 |
Low CQR [Member] | Minimum [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Losses on net credit exposure | 15.00% | |
Low CQR [Member] | Maximum [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Losses on net credit exposure | 100.00% | |
Low CQR [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total past due | $ 0 | 142 |
Current | 0 | 0 |
Unbilled minimum lease payments | 0 | 0 |
Total minimum lease payments | 0 | 142 |
Unearned income | 0 | (19) |
Non-recourse notes payable | 0 | 0 |
Net credit exposure | 0 | 123 |
Low CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total past due | 62 | 3,086 |
Current | 0 | 0 |
Unbilled minimum lease payments | 0 | 0 |
Total minimum lease payments | 62 | 3,086 |
Non-recourse notes payable | 0 | 0 |
Net credit exposure | 62 | 3,086 |
31 to 60 Days Past Due [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total past due | 218 | 492 |
31 to 60 Days Past Due [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total past due | 1,090 | 211 |
31 to 60 Days Past Due [Member] | High CQR [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total past due | 188 | 379 |
31 to 60 Days Past Due [Member] | High CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total past due | 4 | 183 |
31 to 60 Days Past Due [Member] | Average CQR [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total past due | 30 | 113 |
31 to 60 Days Past Due [Member] | Average CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total past due | 1,086 | 28 |
31 to 60 Days Past Due [Member] | Low CQR [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total past due | 0 | 0 |
31 to 60 Days Past Due [Member] | Low CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total past due | 0 | 0 |
61 to 90 Days Past Due [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total past due | 126 | 244 |
61 to 90 Days Past Due [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total past due | 4 | 668 |
61 to 90 Days Past Due [Member] | High CQR [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total past due | 90 | 224 |
61 to 90 Days Past Due [Member] | High CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total past due | 0 | 663 |
61 to 90 Days Past Due [Member] | Average CQR [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total past due | 36 | 20 |
61 to 90 Days Past Due [Member] | Average CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total past due | 4 | 5 |
61 to 90 Days Past Due [Member] | Low CQR [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total past due | 0 | 0 |
61 to 90 Days Past Due [Member] | Low CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total past due | 0 | 0 |
Greater than 90 Days Past Due [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total past due | 1,123 | 485 |
Greater than 90 Days Past Due [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total past due | 1,494 | 3,841 |
Greater than 90 Days Past Due [Member] | High CQR [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total past due | 907 | 230 |
Greater than 90 Days Past Due [Member] | High CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total past due | 833 | 755 |
Greater than 90 Days Past Due [Member] | Average CQR [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total past due | 216 | 113 |
Greater than 90 Days Past Due [Member] | Average CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total past due | 599 | 0 |
Greater than 90 Days Past Due [Member] | Low CQR [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total past due | 0 | 142 |
Greater than 90 Days Past Due [Member] | Low CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total past due | $ 62 | $ 3,086 |
PROPERTY, EQUIPMENT, OTHER AS40
PROPERTY, EQUIPMENT, OTHER ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Sep. 15, 2017 | Mar. 31, 2017 |
Other current assets [Abstract] | |||
Deposits & funds held in escrow | $ 14,819 | $ 39,161 | |
Prepaid assets | 10,429 | 3,388 | |
Other | 722 | 815 | |
Total other current assets | 25,970 | 43,364 | |
Property, equipment and other assets [Abstract] | |||
Property and equipment, net | 8,013 | 6,690 | |
Deferred costs | 7,326 | 3,536 | |
Other | 2,293 | 1,730 | |
Total other assets - long term | 17,632 | 11,956 | |
Other current liabilities [Abstract] | |||
Accrued expenses | 7,907 | 7,450 | |
Accrued income taxes payable | 170 | 1,761 | |
Contingent consideration | 5,360 | 554 | |
Other | 12,679 | 9,414 | |
Total other current liabilities | 26,116 | 19,179 | |
Other liabilities [Abstract] | |||
Deferred revenue | 10,064 | 4,704 | |
Contingent consideration long-term | 7,765 | 1,500 | |
Other | 689 | 876 | |
Total other liabilities - long term | 18,518 | 7,080 | |
Property, Plant and Equipment [Line Items] | |||
Acquisition related contingent consideration long-term liability | 7,765 | $ 1,500 | |
Integrated Data Storage LLC [Member] | |||
Other liabilities [Abstract] | |||
Contingent consideration long-term | 10,000 | $ 10,000 | |
Property, Plant and Equipment [Line Items] | |||
Acquisition related contingent consideration long-term liability | $ 10,000 | $ 10,000 |
NOTES PAYABLE AND CREDIT FACI41
NOTES PAYABLE AND CREDIT FACILITY (Details) $ in Thousands | Jul. 27, 2017USD ($)Component | Dec. 31, 2017USD ($)Component | Mar. 31, 2017USD ($) |
Recourse Notes Payable [Abstract] | |||
Current | $ 0 | $ 908 | |
Non-recourse Notes Payable Secured by Financing Receivables and Investment in Operating Leases [Abstract] | |||
Current | 27,649 | 26,085 | |
Long-term | 3,840 | 10,431 | |
Guarantor obligations for credit facility, maximum | $ 600 | ||
WFCDF [Member] | |||
Non-recourse Notes Payable Secured by Financing Receivables and Investment in Operating Leases [Abstract] | |||
Number of components under credit facility | Component | 2 | 2 | |
Maximum amount can be borrowed under credit facility | $ 250,000 | $ 325,000 | |
Maturity date of credit facility | Oct. 31, 2017 | ||
Period of notice required to terminate credit facility at quarter end | 45 days | ||
Period of notice required to terminate credit facility at year end | 90 days | ||
Guarantor obligations for credit facility, maximum | $ 10,500 | ||
WFCDF [Member] | LIBOR [Member] | |||
Non-recourse Notes Payable Secured by Financing Receivables and Investment in Operating Leases [Abstract] | |||
Debt instrument term of variable rate | 1 month | ||
Basis spread on reference rate | 2.50% | ||
WFCDF [Member] | Account Receivable Component [Member] | |||
Non-recourse Notes Payable Secured by Financing Receivables and Investment in Operating Leases [Abstract] | |||
Amount outstanding under credit facility | $ 0 | 0 | |
Maximum amount can be borrowed under credit facility | 30,000 | ||
WFCDF [Member] | Floor Plan Component [Member] | |||
Non-recourse Notes Payable Secured by Financing Receivables and Investment in Operating Leases [Abstract] | |||
Amount outstanding under credit facility | 107,800 | 132,600 | |
Recourse Note Payable [Member] | |||
Recourse Notes Payable [Abstract] | |||
Current | 0 | $ 908 | |
Non-recourse Notes Payable Secured by Financing Receivables and Investment in Operating Leases [Abstract] | |||
Weighted average interest rate of notes | 3.45% | ||
Recourse Note Payable [Member] | Minimum [Member] | |||
Non-recourse Notes Payable Secured by Financing Receivables and Investment in Operating Leases [Abstract] | |||
Interest rate of notes | 3.20% | ||
Recourse Note Payable [Member] | Maximum [Member] | |||
Non-recourse Notes Payable Secured by Financing Receivables and Investment in Operating Leases [Abstract] | |||
Interest rate of notes | 4.13% | ||
Non-Recourse Note Payable [Member] | |||
Non-recourse Notes Payable Secured by Financing Receivables and Investment in Operating Leases [Abstract] | |||
Current | 27,649 | $ 26,085 | |
Long-term | 3,840 | 10,431 | |
Total non-recourse notes payable | $ 31,489 | $ 36,516 | |
Weighted average interest rate of notes | 3.73% | 3.73% | |
Non-Recourse Note Payable [Member] | Minimum [Member] | |||
Non-recourse Notes Payable Secured by Financing Receivables and Investment in Operating Leases [Abstract] | |||
Interest rate of notes | 2.00% | 2.00% | |
Non-Recourse Note Payable [Member] | Maximum [Member] | |||
Non-recourse Notes Payable Secured by Financing Receivables and Investment in Operating Leases [Abstract] | |||
Interest rate of notes | 8.45% | 7.75% |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share, Basic and Diluted [Abstract] | ||||
Net earnings attributable to common shareholders - basic and diluted | $ 15,581 | $ 12,620 | $ 46,225 | $ 40,066 |
Basic and diluted common shares outstanding [Abstract] | ||||
Weighted average common shares outstanding - basic (in shares) | 13,851 | 13,791 | 13,845 | 13,891 |
Effect of dilutive shares (in shares) | 139 | 129 | 177 | 135 |
Weighted average shares common outstanding - diluted (in shares) | 13,990 | 13,920 | 14,022 | 14,026 |
Earnings per common share - basic (in dollars per share) | $ 1.12 | $ 0.92 | $ 3.34 | $ 2.88 |
Earnings per common share - diluted (in dollars per share) | $ 1.11 | $ 0.91 | $ 3.30 | $ 2.86 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Aug. 15, 2017 | |
STOCKHOLDERS' EQUITY [Abstract] | |||
Authorized number of shares under stock repurchase program (in shares) | 500,000 | ||
Common stock repurchased during the period (in shares) | 125,605 | 656,962 | |
Average cost of share repurchased (in dollars per share) | $ 77.88 | $ 40.81 | |
Common stock repurchased during the period | $ 9.8 | $ 26.8 | |
Shares repurchased to satisfy tax withholding obligation (in shares) | 57,725 | 59,472 | |
Value of Shares repurchased to satisfy tax withholding obligation | $ 4.4 | $ 2.6 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Additional Disclosures [Abstract] | ||||
Vested share-based awards withheld to satisfy income tax obligations (in shares) | 57,725 | 59,472 | ||
Vested share-based awards withheld to satisfy income tax obligations | $ 4,400 | $ 2,600 | ||
Compensation Expense [Abstract] | ||||
Share-based compensation expense | $ 1,700 | $ 1,500 | 4,856 | 4,520 |
401 (k) Profit Sharing Plan [Abstract] | ||||
Contribution to profit sharing plan | $ 500 | $ 500 | $ 1,600 | $ 1,200 |
Restricted Stock [Member] | ||||
Number of Shares [Roll Forward] | ||||
Nonvested at beginning of period (in shares) | 371,689 | |||
Granted (in shares) | 72,375 | |||
Vested (in shares) | (156,240) | |||
Forfeited (in shares) | (4,108) | |||
Nonvested at end of period (in shares) | 283,716 | 283,716 | ||
Weighted Average Grant-date Fair Value [Roll Forward] | ||||
Nonvested at beginning of period (in dollars per share) | $ 40.45 | |||
Granted (in dollars per share) | 80.25 | |||
Vested (in dollars per share) | 38.52 | |||
Forfeited (in dollars per share) | 39.37 | |||
Nonvested at end of period (in dollars per share) | $ 51.68 | $ 51.68 | ||
Compensation Expense [Abstract] | ||||
Unrecognized compensation expense | $ 11,100 | $ 11,100 | ||
Unrecognized compensation expense, period for recognition | 30 months | |||
2008 Director LTIP [Member] | Restricted Stock [Member] | ||||
Number of Shares [Roll Forward] | ||||
Granted (in shares) | 535 | 10,990 | ||
2017 Director LTIP [Member] | Restricted Stock [Member] | ||||
Number of Shares [Roll Forward] | ||||
Granted (in shares) | 5,112 | |||
2012 Employee LTIP [Member] | Restricted Stock [Member] | ||||
Number of Shares [Roll Forward] | ||||
Granted (in shares) | 66,530 | 134,538 | ||
Additional Disclosures [Abstract] | ||||
Vested share-based awards withheld to satisfy income tax obligations (in shares) | 57,725 | |||
Vested share-based awards withheld to satisfy income tax obligations | $ 4,400 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2018 | |
INCOME TAXES [Abstract] | ||||||
Income tax provision | $ 678 | $ 8,687 | $ 19,499 | $ 27,310 | ||
Effective income tax | 4.20% | 40.80% | 29.70% | 40.50% | ||
Income Tax Disclosure [Line Items] | ||||||
Federal income tax | 35.00% | |||||
Change in tax rate, Provisional income tax expense | $ 2,600 | |||||
Additions or reductions to gross unrecognized tax benefits | $ 0 | $ 0 | ||||
Forecast [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Federal income tax | 21.00% | 31.50% | ||||
Additional income tax benefit | $ (800) |
FAIR VALUE OF FINANCIAL INSTR46
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2017 | Mar. 31, 2017 | |
Assets [Abstract] | |||
Money market funds | $ 21,596 | $ 21,596 | $ 50,866 |
Liabilities [Abstract] | |||
Contingent consideration | 13,125 | 13,125 | 554 |
Adjustment to fair value of contingent consideration | 700 | 12,600 | |
Payments of contingent consideration | 600 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Assets [Abstract] | |||
Money market funds | 21,596 | 21,596 | 50,866 |
Liabilities [Abstract] | |||
Contingent consideration | 0 | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | |||
Assets [Abstract] | |||
Money market funds | 0 | 0 | 0 |
Liabilities [Abstract] | |||
Contingent consideration | 0 | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | |||
Assets [Abstract] | |||
Money market funds | 0 | 0 | 0 |
Liabilities [Abstract] | |||
Contingent consideration | $ 13,125 | $ 13,125 | $ 554 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2017USD ($)Segment | Dec. 31, 2016USD ($) | Mar. 31, 2017USD ($) | |
SEGMENT REPORTING [Abstract] | |||||
Number of business segments | Segment | 2 | ||||
Segment Reporting Information [Line Items] | |||||
Sales of product and services | $ 330,953 | $ 317,391 | $ 1,045,792 | $ 968,799 | |
Financing revenue | 9,592 | 8,190 | 30,698 | 23,899 | |
Fee and other income | 2,024 | 1,076 | 4,081 | 3,924 | |
Net sales | 342,569 | 326,657 | 1,080,571 | 996,622 | |
Cost of sales, product and services | 264,487 | 251,729 | 834,873 | 769,780 | |
Direct lease costs | 1,394 | 1,142 | 3,846 | 3,459 | |
Cost of sales | 265,881 | 252,871 | 838,719 | 773,239 | |
Selling, general, and administrative expenses | 57,134 | 50,160 | 168,138 | 149,821 | |
Depreciation and amortization | 2,894 | 1,910 | 7,086 | 5,408 | |
Interest and financing costs | 270 | 409 | 903 | 1,158 | |
Operating expenses | 60,298 | 52,479 | 176,127 | 156,387 | |
Operating income | 16,390 | 21,307 | 65,725 | 66,996 | |
Selected Financial Data - Statement of Cash Flow [Abstract] | |||||
Depreciation and amortization | 4,579 | 2,926 | 11,324 | 8,758 | |
Purchases of property, equipment and operating lease equipment | 2,862 | 4,131 | 6,298 | 7,300 | |
Selected Financial Data - Balance Sheet [Abstract] | |||||
Total assets | 764,653 | 736,678 | 764,653 | 736,678 | $ 741,720 |
Operating Segments [Member] | Technology [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales of product and services | 330,953 | 317,391 | 1,045,792 | 968,799 | |
Financing revenue | 0 | 0 | 0 | 0 | |
Fee and other income | 1,678 | 915 | 3,707 | 3,679 | |
Net sales | 332,631 | 318,306 | 1,049,499 | 972,478 | |
Cost of sales, product and services | 264,487 | 251,729 | 834,873 | 769,780 | |
Direct lease costs | 0 | 0 | 0 | 0 | |
Cost of sales | 264,487 | 251,729 | 834,873 | 769,780 | |
Selling, general, and administrative expenses | 53,836 | 47,780 | 158,838 | 141,295 | |
Depreciation and amortization | 2,893 | 1,908 | 7,084 | 5,400 | |
Interest and financing costs | 0 | 0 | 0 | 0 | |
Operating expenses | 56,729 | 49,688 | 165,922 | 146,695 | |
Operating income | 11,415 | 16,889 | 48,704 | 56,003 | |
Selected Financial Data - Statement of Cash Flow [Abstract] | |||||
Depreciation and amortization | 3,157 | 1,941 | 7,413 | 5,494 | |
Purchases of property, equipment and operating lease equipment | 2,018 | 849 | 4,064 | 2,413 | |
Selected Financial Data - Balance Sheet [Abstract] | |||||
Total assets | 595,584 | 546,728 | 595,584 | 546,728 | |
Operating Segments [Member] | Financing [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales of product and services | 0 | 0 | 0 | 0 | |
Financing revenue | 9,592 | 8,190 | 30,698 | 23,899 | |
Fee and other income | 346 | 161 | 374 | 245 | |
Net sales | 9,938 | 8,351 | 31,072 | 24,144 | |
Cost of sales, product and services | 0 | 0 | 0 | 0 | |
Direct lease costs | 1,394 | 1,142 | 3,846 | 3,459 | |
Cost of sales | 1,394 | 1,142 | 3,846 | 3,459 | |
Selling, general, and administrative expenses | 3,298 | 2,380 | 9,300 | 8,526 | |
Depreciation and amortization | 1 | 2 | 2 | 8 | |
Interest and financing costs | 270 | 409 | 903 | 1,158 | |
Operating expenses | 3,569 | 2,791 | 10,205 | 9,692 | |
Operating income | 4,975 | 4,418 | 17,021 | 10,993 | |
Selected Financial Data - Statement of Cash Flow [Abstract] | |||||
Depreciation and amortization | 1,422 | 985 | 3,911 | 3,264 | |
Purchases of property, equipment and operating lease equipment | 844 | 3,282 | 2,234 | 4,887 | |
Selected Financial Data - Balance Sheet [Abstract] | |||||
Total assets | $ 169,069 | $ 189,950 | $ 169,069 | $ 189,950 |
BUSINESS COMBINATIONS (Details)
BUSINESS COMBINATIONS (Details) - USD ($) $ in Thousands | Sep. 15, 2017 | May 17, 2017 | Dec. 06, 2016 | Dec. 31, 2017 | Sep. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 |
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed [Abstract] | ||||||||
Goodwill | $ 76,546 | $ 48,397 | $ 49,472 | $ 42,151 | ||||
Fair value of contingent consideration | 7,765 | $ 1,500 | ||||||
Integrated Data Storage LLC [Member] | ||||||||
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed [Abstract] | ||||||||
Accounts receivable and other current assets | $ 14,353 | |||||||
Property and equipment | 1,620 | |||||||
Identified intangible assets | 13,650 | |||||||
Accounts payable and other current liabilities | (12,313) | |||||||
Total identifiable net assets | 17,310 | |||||||
Goodwill | 21,088 | |||||||
Total purchase consideration | 38,398 | |||||||
Cash portion of the acquisition | 29,800 | |||||||
Receivables as a working capital adjustment | 1,400 | |||||||
Fair value of contingent consideration | 10,000 | $ 10,000 | ||||||
Fair value of contingent consideration, maximum | $ 15,000 | |||||||
Contingent consideration payout period | 3 years | |||||||
Integrated Data Storage LLC [Member] | Customer Relationships [Member] | ||||||||
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed [Abstract] | ||||||||
Estimated useful lives | 8 years | |||||||
OneCloud Consulting, Inc [Member] | ||||||||
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed [Abstract] | ||||||||
Accounts receivable and other current assets | $ 488 | |||||||
Identified intangible assets | 4,130 | |||||||
Accounts payable and other current liabilities | (1,822) | |||||||
Total identifiable net assets | 2,796 | |||||||
Goodwill | 7,189 | |||||||
Total purchase consideration | 9,985 | |||||||
Cash portion of the acquisition | 7,900 | |||||||
Fair value of contingent consideration | 2,100 | |||||||
Fair value of contingent consideration, maximum | $ 4,500 | |||||||
Contingent consideration payout period | 3 years | |||||||
Percentage of stock acquired | 100.00% | |||||||
OneCloud Consulting, Inc [Member] | Customer Relationships [Member] | ||||||||
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed [Abstract] | ||||||||
Identified intangible assets | $ 1,700 | |||||||
Estimated useful lives | 8 years | |||||||
OneCloud Consulting, Inc [Member] | Internally Developed Processes [Member] | ||||||||
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed [Abstract] | ||||||||
Identified intangible assets | $ 2,400 | |||||||
Estimated useful lives | 5 years | |||||||
Consolidated IT Services [Member] | ||||||||
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed [Abstract] | ||||||||
Accounts receivable and other current assets | $ 7,491 | |||||||
Property and equipment | 1,045 | |||||||
Identified intangible assets | 4,090 | |||||||
Accounts payable and other current liabilities | (5,786) | |||||||
Total identifiable net assets | 6,840 | |||||||
Goodwill | 6,227 | |||||||
Total purchase consideration | 13,067 | |||||||
Cash portion of the acquisition | $ 9,500 | |||||||
Cash portion of the acquisition payable in future | $ 4,000 | |||||||
Receivables as a working capital adjustment | $ 400 | |||||||
Contingent consideration payout period | 2 years | |||||||
(Decrease) in goodwill | $ (280) | |||||||
Consolidated IT Services [Member] | Customer Relationships [Member] | ||||||||
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed [Abstract] | ||||||||
Estimated useful lives | 7 years |