Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Sep. 30, 2018 | Nov. 05, 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 Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Entity Common Stock, Shares Outstanding | 13,727,439 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q2 |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2018 | Mar. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 75,647 | $ 118,198 |
Accounts receivable-trade, net | 292,045 | 268,287 |
Accounts receivable-other, net | 40,312 | 28,401 |
Inventories | 56,606 | 39,855 |
Financing receivables-net, current | 86,253 | 69,936 |
Deferred costs | 16,211 | 16,589 |
Other current assets | 10,716 | 23,625 |
Total current assets | 577,790 | 564,891 |
Financing receivables and operating leases-net | 79,119 | 68,511 |
Property, equipment and other assets | 18,037 | 19,143 |
Goodwill | 76,445 | 76,624 |
Other intangible assets-net | 23,805 | 26,302 |
TOTAL ASSETS | 775,196 | 755,471 |
Current liabilities: | ||
Accounts payable | 92,830 | 106,933 |
Accounts payable-floor plan | 120,771 | 112,109 |
Salaries and commissions payable | 17,596 | 19,801 |
Deferred revenue | 35,860 | 35,648 |
Recourse notes payable-current | 0 | 1,343 |
Non-recourse notes payable-current | 52,630 | 40,863 |
Other current liabilities | 20,698 | 33,370 |
Total current liabilities | 340,385 | 350,067 |
Non-recourse notes payable-long term | 12,656 | 10,072 |
Deferred tax liability-net | 1,644 | 1,662 |
Other liabilities | 21,234 | 21,067 |
TOTAL LIABILITIES | 375,919 | 382,868 |
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;13,727 outstanding at September 30, 2018 and 13,761 outstanding at March 31, 2018 | 143 | 142 |
Additional paid-in capital | 133,561 | 130,000 |
Treasury stock, at cost, 578 shares at September 30, 2018 and 467 shares at March 31, 2018 | (45,380) | (36,016) |
Retained earnings | 311,221 | 277,945 |
Accumulated other comprehensive income-foreign currency translation adjustment | (268) | 532 |
Total Stockholders' Equity | 399,277 | 372,603 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 775,196 | $ 755,471 |
UNAUDITED CONDENSED CONSOLIDA_2
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands | Sep. 30, 2018 | Mar. 31, 2018 |
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) | 13,727 | 13,761 |
Treasury stock, shares (in shares) | 578 | 467 |
UNAUDITED CONDENSED CONSOLIDA_3
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | ||||
Net sales | $ 345,043 | $ 371,363 | $ 701,575 | $ 744,719 |
Cost of sales | 259,543 | 283,792 | 535,372 | 579,555 |
Gross profit | 85,500 | 87,571 | 166,203 | 165,164 |
Selling, general, and administrative expenses | 57,705 | 56,340 | 114,671 | 111,004 |
Depreciation and amortization | 2,741 | 2,129 | 5,531 | 4,192 |
Interest and financing costs | 484 | 274 | 960 | 633 |
Operating expenses | 60,930 | 58,743 | 121,162 | 115,829 |
Operating income | 24,570 | 28,828 | 45,041 | 49,335 |
Other income (expense) | 322 | (141) | 419 | 130 |
Earnings before tax | 24,892 | 28,687 | 45,460 | 49,465 |
Provision for income taxes | 6,889 | 11,466 | 12,184 | 18,821 |
Net earnings | $ 18,003 | $ 17,221 | $ 33,276 | $ 30,644 |
Net earnings per common share-basic (in dollars per share) | $ 1.33 | $ 1.24 | $ 2.47 | $ 2.21 |
Net earnings per common share-diluted (in dollars per share) | $ 1.33 | $ 1.23 | $ 2.45 | $ 2.19 |
Weighted average common shares outstanding-basic (in shares) | 13,494 | 13,879 | 13,464 | 13,843 |
Weighted average common shares outstanding-diluted (in shares) | 13,586 | 14,008 | 13,597 | 14,021 |
UNAUDITED CONDENSED CONSOLIDA_4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ||||
NET EARNINGS | $ 18,003 | $ 17,221 | $ 33,276 | $ 30,644 |
OTHER COMPREHENSIVE INCOME, NET OF TAX: | ||||
Foreign currency translation adjustments | (143) | 391 | (800) | 703 |
Other comprehensive income (loss) | (143) | 391 | (800) | 703 |
TOTAL COMPREHENSIVE INCOME | $ 17,860 | $ 17,612 | $ 32,476 | $ 31,347 |
UNAUDITED CONDENSED CONSOLIDA_5
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash Flows From Operating Activities: | ||
Net earnings | $ 33,276 | $ 30,644 |
Adjustments to reconcile net earnings to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 8,867 | 6,745 |
Reserve for credit losses, inventory obsolescence and sales returns | 178 | 232 |
Share-based compensation expense | 3,561 | 3,180 |
Payments from lessees directly to lenders-operating leases | (75) | (1,190) |
Gain on disposal of property, equipment and leased equipment | (939) | (5,364) |
Gain on sale of financing receivables | (2,584) | (3,498) |
Other | 2 | 0 |
Changes in: | ||
Accounts receivable | (29,287) | (21,694) |
Inventories | (16,688) | 43,041 |
Financing receivables-net | (5,922) | 2,730 |
Deferred costs, other intangible assets and other assets | 4,920 | (8,290) |
Accounts payable | 2,375 | (6,920) |
Salaries and commissions payable, deferred revenue and other liabilities | (14,769) | (26,286) |
Net cash provided by (used) in operating activities | (17,085) | 13,330 |
Cash Flows From Investing Activities: | ||
Proceeds from sale of property, equipment and leased equipment | 1,764 | 7,976 |
Purchases of property, equipment and operating lease equipment | (6,451) | (3,436) |
Purchases of assets to be leased or financed | (8,620) | (3,792) |
Issuance of financing receivables | (88,442) | (100,785) |
Repayments of financing receivables | 33,349 | 41,087 |
Proceeds from sale of financing receivables | 30,463 | 43,777 |
Cash used in acquisitions, net of cash acquired | 0 | (37,718) |
Net cash used in investing activities | (37,937) | (52,891) |
Cash Flows From Financing Activities: | ||
Borrowings of non-recourse and recourse notes payable | 27,157 | 32,566 |
Repayments of non-recourse and recourse notes payable | (11,229) | (24,730) |
Repurchase of common stock | (10,135) | (4,383) |
Repayments of financing of acquisitions | (2,134) | (1,104) |
Net borrowings (repayments) on floor plan facility | 8,662 | (12,395) |
Net cash provided by (used) in financing activities | 12,321 | (10,046) |
Effect of exchange rate changes on cash | 150 | 32 |
Net Increase (Decrease) in Cash and Cash Equivalents | (42,551) | (49,575) |
Cash and Cash Equivalents, Beginning of Period | 118,198 | 109,760 |
Cash and Cash Equivalents, End of Period | 75,647 | 60,185 |
Supplemental Disclosures of Cash Flow Information: | ||
Cash paid for interest | 945 | 254 |
Cash paid for income taxes | 11,221 | 20,041 |
Schedule of Non-Cash Investing and Financing Activities: | ||
Proceeds from sale of property, equipment, and leased equipment | 461 | 906 |
Purchase of property, equipment, and operating lease equipment | (934) | 724 |
Purchase of assets to be leased or financed | 1,010 | (4,134) |
Issuance of financing receivables | (36,655) | (66,764) |
Repayment of financing receivables | 0 | 7,096 |
Proceeds from sale of financing receivables | 40,265 | 70,423 |
Financing of acquisitions | 0 | (12,050) |
Borrowing of non-recourse and recourse notes payable | 37,688 | 8,904 |
Repayments of non-recourse and recourse notes payable | (63) | (10,704) |
Vesting of share-based compensation | $ 12,769 | $ 11,969 |
UNAUDITED CONDENSED CONSOLIDA_6
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - 6 months ended Sep. 30, 2018 - 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, 2018 | $ 142 | $ 130,000 | $ (36,016) | $ 277,945 | $ 532 | $ 372,603 |
Balance (in shares) at Mar. 31, 2018 | 13,761 | 13,761 | ||||
Issuance of restricted stock awards | $ 1 | 0 | 0 | 0 | 0 | $ 1 |
Issuance of restricted stock awards (in shares) | 77 | |||||
Share-based compensation | $ 0 | 3,561 | 0 | 0 | 0 | 3,561 |
Repurchase of common stock | $ 0 | 0 | (9,364) | 0 | 0 | (9,364) |
Repurchase of common stock (in shares) | (111) | |||||
Net earnings | $ 0 | 0 | 0 | 33,276 | 0 | 33,276 |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 | (800) | (800) |
Balance at Sep. 30, 2018 | $ 143 | $ 133,561 | $ (45,380) | $ 311,221 | $ (268) | $ 399,277 |
Balance (in shares) at Sep. 30, 2018 | 13,727 | 13,727 |
ORGANIZATION AND SUMMARY OF SIG
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Sep. 30, 2018 | |
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 six months ended September 30, 2018 and 2017 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 six months ended September 30, 2018 and 2017 are not necessarily indicative of results that may be expected for any other interim period, the full fiscal year ending March 31, 2019, 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 (“US 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, 2018 (“2018 Annual Report”), which should be read in conjunction with these interim condensed consolidated financial statements. USE OF ESTIMATES — CONCENTRATIONS OF RISK — A substantial portion of our sales are products from Cisco Systems, which were 45% of our technology segment’s net sales for both the three months ended September 30, 2018 and 2017, and 43% and 47% of our technology segment’s net sales for the six months ended September 30, 2018 and 2017, respectively. SIGNIFICANT ACCOUNTING POLICIES — The significant accounting policies used in preparing these Consolidated Financial Statements were applied on a basis consistent with those reflected in our Consolidated Financial Statements for the year ended March 31, 2018, except for changes from the adoption of Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) , as amended (“ASU 2014-09”). This Update adds Topic 606, Revenue from Contracts with Customers (“Topic 606”) to the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“Codification”). The updates to our accounting policies from adopting ASU 2014-09 are provided below. REVENUE RECOGNITION — We recognize the majority of our revenues from the sales of third party products, third party software, third party services such as maintenance and software support and from sales of e e The core principle of Codification Topic 606 is that an entity should recognize revenue for the transfer of goods and services equal to an amount it expects to be entitled to receive for those goods and services. We account for a contract under Codification Topic 606 when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are established, the contract has commercial substance, and collectability of consideration is probable. Revenues are reported net of sales refunds, including an estimate of future returns based on an evaluation of historical sales returns, current economic conditions, volume, and other relevant factors. Our contracts with customers may include multiple promises that are distinct performance obligations. For such arrangements, we allocate the transaction price to each performance obligation based on its relative standalone selling price. We determine standalone selling prices using expected cost plus margin. We recognize revenue when (or as) we satisfy a performance obligation by transferring a promised good or service to a customer. A good or service is transferred when (or as) the customer obtains control of that good or service. Depending on the nature of each performance obligation, this may be at a point in time or over time, as further described below. We typically invoice our customers for third party products upon shipment, unless our customers lease the equipment through our financing segment, in which case the arrangement is accounted for as a lease in accordance with Codification Topic 840, Leases Sales of third party products We are the principal in sales of third party products. As such, we recognize sales on a gross basis with the selling price to the customer recorded as sales and the acquisition cost of the product recognized as cost of sales. We recognize revenue from these sales at the point in time that control passes to the customer, which is typically upon delivery of the product to the customer. In some instances, our customers may request that we bill them for a product but retain physical possession of the product until later delivery, commonly known as “bill-and-hold” arrangements. In these transactions, we recognize revenue when the customer has signed a bill-and-hold agreement with us, the product is identified separately as belonging to the customer and, when orders include configuration, such configuration is complete and the product is ready for delivery to the customer. We recognize sales of leased equipment within our financing segment when control passes to the customer, which is typically the date of sale. Sales of third party software We are typically the principal in sales of third party software. We often sell third party support accompanying third party software. When the third party software benefits the customer only in conjunction with the accompanying support, such as in sales of anti-virus software and support, we consider the third party software and support as inputs to a single performance obligation. The third party controls the service as it is transferred to the customer and therefore we are acting as an agent in these transactions. We recognize revenue from these sales on a net basis when our customer and vendor accept the terms and conditions of the arrangement. Sales of third party maintenance, software support, and services We are the agent in sales of third party maintenance, software support, and services as the third party controls the service until it is transferred to the customer. We recognize sales on a net basis equal to the selling price to the customer less the acquisition cost. We recognize revenue from these sales when our customer and vendor accept the terms and conditions of the arrangement. Sales of ePlus professional and managed services Our e e We provide e In arrangements for e We host e Freight and sales tax We present freight billed to our customers within sales and the related freight charged to us within cost of sales. We present sales tax collected from customers and remittances to governmental authorities on a net basis. Financing revenue and other We account for leases to customers in accordance with Codification Topic 840, Leases We consider whether a lease meets any of the following four criteria as part of classifying the lease at its inception: · the lease transfers ownership of the property to the lessee by the end of the lease term; · the lease contains a bargain purchase option; · the lease term is equal to 75 percent or more of the estimated economic life of the leased property; or · the present value at the beginning of the lease term of the minimum lease payments equals or exceeds 90 percent of the fair value of the leased property at the inception of the lease. If a lease meets any of the four lease classification criteria and gives rise to dealer’s profit, we classify the lease as a sales-type lease. For sales-type leases, we recognize sales equal to the present value of the minimum lease payments discounted using the implicit interest rate in the lease and cost of sales equal to carrying amount of the asset being leased and any initial direct costs incurred, less the present value of the unguaranteed residual. Interest income from the lease is recognized in sales over the lease term in our financing segment. If a lease meets any of the four lease classification criteria, and does not give rise to dealer’s profit, we classify the lease as a direct financing lease. For direct financing leases, the difference between our gross investment in the lease and the cost of the leased property is deferred as unearned income and recognized as sales over the lease term. If a lease meets none of the four lease classification criteria, we classify the lease as an operating lease. For operating leases, we recognize the rent charged on the lease as sales on a straight-line basis ratably over the term of the lease agreement. We may also finance third-party software and third party services for our customers, which are classified as notes receivable. We recognize interest on notes receivable in net sales. Codification Topic 860 Transfers and Servicing CONTRACT BALANCES — We recognize contract liabilities when cash payments are received or due in advance of our performance. COSTS OF OBTAINING A CONTRACT — We capitalize costs that are incremental to obtaining customer contracts, predominately sales commissions, and expense them in proportion to each completed contract performance obligation. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Sep. 30, 2018 | |
RECENT ACCOUNTING PRONOUNCEMENTS [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | 2. RECENT ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS —We adopted ASU 2014-09 on April 1, 2018, using the full retrospective method. Under the full retrospective method, we apply the guidance retrospectively to each prior reporting period presented. The impact from the adopting ASU 2014-09 on our consolidated balance sheet as of March 31, 2018, was a decrease in accounts receivable – trade of $1.9 million, an increase in accounts receivable – other of $1.9 million, a decrease in deferred costs of $3.2 million, and a decrease in deferred revenues of $3.2 million. There is no impact to our retained earnings as of March 31, 2018. The impact on our consolidated statement of operations was a decrease in net sales and cost of sales by $0.5 million for the three months ended September 30, 2017 and an increase of $6.7 million in net sales and cost of sales for the six months ended September 30, 2017. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED —In June 2016, the FASB issued ASU 2016-13, Financial Instruments- Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In November 2016, the FASB issued ASU 2016-02, Leases |
REVENUES
REVENUES | 6 Months Ended |
Sep. 30, 2018 | |
REVENUES [Abstract] | |
REVENUES | 3. REVENUES Contract balances Accounts receivable – trade represents amounts due from contracts with customers. In addition, we had $38.0 million and $28.1 million of receivables from contracts with customers included within financing receivables as of September 30, 2018 and March 31, 2018, respectively. The following table provides the balance of contract liabilities from contracts with customers (in thousands): Contract liabilities September 30, 2018 March 31, 2018 Current (included in deferred revenue) $ 35,036 $ 34,643 Non-current (included in other liabilities) $ 13,430 $ 12,699 Revenue recognized from the beginning contract liability balance was $8.1 million and $20.9 million for the three and six months ended September 30, 2018, respectively, and $36.0 million and $55.5 million for the three and six months ended September 30, 2017, respectively. Performance obligations The following table includes revenue expected to be recognized in the future related to performance obligations , are unsatisfied or partially unsatisfied at the end of the reporting period, in thousands. The table does not include the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts where we recognize revenue at the amount that we have the right to invoice for services performed. Remaining six months of fiscal 2019 $ 12,337 Fiscal 2020 12,607 Fiscal 2021 6,837 Fiscal 2022 1,078 Fiscal 2023 302 Fiscal 2024 2 Total remaining performance obligations $ 33,163 |
FINANCING RECEIVABLES AND OPERA
FINANCING RECEIVABLES AND OPERATING LEASES | 6 Months Ended |
Sep. 30, 2018 | |
FINANCING RECEIVABLES AND OPERATING LEASES [Abstract] | |
FINANCING RECEIVABLES AND OPERATING LEASES | 4. 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 Codification Topic 840, Leases FINANCING RECEIVABLES—NET Our financing receivables-net consist of the following (in thousands): Notes Lease-Related Total Financing September 30, 2018 Receivables Receivables Receivables Minimum payments $ 72,585 $ 77,825 $ 150,410 Estimated unguaranteed residual value (1) - 12,805 12,805 Initial direct costs, net of amortization (2) 629 397 1,026 Unearned income - (9,409 ) (9,409 ) Reserve for credit losses (3) (483 ) (598 ) (1,081 ) Total, net $ 72,731 $ 81,020 $ 153,751 Reported as: Current $ 52,409 $ 33,844 $ 86,253 Long-term 20,322 47,176 67,498 Total, net $ 72,731 $ 81,020 $ 153,751 (1) Includes estimated unguaranteed residual values of $7,074 thousand for direct financing leases, which have been sold and accounted for as sales. (2) Initial direct costs are shown net of amortization of $357 thousand. (3) For details on reserve for credit losses, refer to Note 6, “Reserves for Credit Losses.” Notes Lease-Related Total Financing March 31, 2018 Receivables Receivables Receivables Minimum payments $ 62,992 $ 65,943 $ 128,935 Estimated unguaranteed residual value (1) - 11,226 11,226 Initial direct costs, net of amortization (2) 375 334 709 Unearned income - (8,251 ) (8,251 ) Reserve for credit losses (3) (486 ) (640 ) (1,126 ) Total, net $ 62,881 $ 68,612 $ 131,493 Reported as: Current $ 39,993 $ 29,943 $ 69,936 Long-term 22,888 38,669 61,557 Total, net $ 62,881 $ 68,612 $ 131,493 (1) Includes estimated unguaranteed residual values of $6,004 thousand for direct financing leases that have been sold and accounted for as sales. (2) Initial direct costs are shown net of amortization of $341 thousand. (3) For details on reserve for credit losses, refer to Note 6, “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): September 30, 2018 March 31, 2018 Cost of equipment under operating leases $ 20,738 $ 15,683 Accumulated depreciation (9,117 ) (8,729 ) Investment in operating lease equipment—net (1) $ 11,621 $ 6,954 (1) Includes estimated unguaranteed residual values of $2,931 thousand and $1,921 thousand as of September 30, 2018 and March 31, 2018, 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 Codification 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 each of the three months ended September 30, 2018 and 2017, we recognized net gains of $1.2 million, and total proceeds from these sales were $47.2 million and $48.3 million, respectively. During the six months ended September 30, 2018 and 2017, we recognized net gains of $2.5 million and $3.5 million, respectively, and total proceeds from these sales were $94.0 million and $134.1 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 September 30, 2018 and March 31, 2018, we had deferred revenue of $0.4 million and $0.5 million, respectively, for servicing. In a limited number of such sales, we indemnified the assignee in the event that the lessee elected to terminate the lease early. As of September 30, 2018, our maximum potential future payments related to such guarantees is $0.3 million. We believe the likelihood of making any such payments to be remote. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 6 Months Ended |
Sep. 30, 2018 | |
GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | 5. GOODWILL AND OTHER INTANGIBLE ASSETS GOODWILL The following table summarizes the changes in the carrying amount of goodwill (in thousands): Six Months Ended September 30, 2018 Six Months Ended September 30, 2017 Goodwill Accumulated Impairment Loss Net Carrying Amount Goodwill Accumulated Impairment Loss Net Carrying Amount Beginning Balance $ 85,297 $ (8,673 ) $ 76,624 $ 57,070 $ (8,673 ) $ 48,397 Acquisitions - - - 27,939 - 27,939 Foreign currency translations (179 ) - (179 ) 134 - 134 Ending Balance $ 85,118 $ (8,673 ) $ 76,445 $ 85,143 $ (8,673 ) $ 76,470 Goodwill represents the premium paid over the fair value of the net tangible and intangible assets that are individually identified and separately recognized in business combinations. All of our goodwill as of September 30, 2018 and March 31, 2018 is related to our technology reportable segment, which we also determined to be one reporting unit. See Note 16, “Business Combinations” for additional information regarding prior year acquisitions. We test goodwill for impairment on an annual basis, as of the first day of our third fiscal quarter, and between annual tests if an event occurs, or circumstances change, that would more likely than not reduce the fair value of a reporting unit below its carrying value. OTHER INTANGIBLE ASSETS Our other intangible assets consist of the following (in thousands): September 30, 2018 March 31, 2018 Gross Carrying Amount Accumulated Amortization / Loss Net Carrying Amount Gross Carrying Amount Accumulated Amortization / Loss Net Carrying Amount Customer relationships & other intangibles $ 41,974 $ (22,026 ) $ 19,948 $ 41,895 $ (18,634 ) $ 23,261 Capitalized software development 6,136 (2,279 ) 3,857 5,608 (2,567 ) 3,041 Total $ 48,110 $ (24,305 ) $ 23,805 $ 47,503 $ (21,201 ) $ 26,302 Customer relationships and capitalized software development costs are amortized over an estimated useful life, which is generally between 3 to 8 years. Total amortization expense for other intangible assets was $1.8 million and $1.2 million for the three months and $3.1 million and $2.4 million for the six months ended September 30, 2018 and 2017, respectively. The change in the gross carrying amount of other intangible assets is due to foreign exchange translations. |
RESERVES FOR CREDIT LOSSES
RESERVES FOR CREDIT LOSSES | 6 Months Ended |
Sep. 30, 2018 | |
RESERVES FOR CREDIT LOSSES [Abstract] | |
RESERVES FOR CREDIT LOSSES | 6. Activity in our reserves for credit losses were as follows (in thousands): Accounts Receivable Notes Receivable Lease- Related Receivables Total Balance April 1, 2018 $ 1,538 $ 486 $ 640 $ 2,664 Provision for credit losses 127 (3 ) (42 ) 82 Write-offs and other (1 ) - - (1 ) Balance September 30, 2018 $ 1,664 $ 483 $ 598 $ 2,745 Accounts Receivable Notes Receivable Lease- Related Receivables Total Balance April 1, 2017 $ 1,279 $ 3,434 $ 679 $ 5,392 Provision for credit losses (5 ) 27 133 155 Write-offs and other - (3,020 ) (164 ) (3,184 ) Balance September 30, 2017 $ 1,274 $ 441 $ 648 $ 2,363 Our reserves for credit losses and minimum payments associated with our notes receivables and lease-related receivables disaggregated based on of our impairment method were as follows (in thousands): September 30, 2018 March 31, 2018 Notes Receivable Lease- Related Receivables Notes Receivable Lease- Related Receivables Reserves for credit losses: Ending balance: collectively evaluated for impairment $ 421 $ 598 $ 424 $ 640 Ending balance: individually evaluated for impairment 62 - 62 - Ending balance $ 483 $ 598 $ 486 $ 640 Minimum payments: Ending balance: collectively evaluated for impairment $ 72,523 $ 77,825 $ 62,930 $ 65,943 Ending balance: individually evaluated for impairment 62 - 62 - Ending balance $ 72,585 $ 77,825 $ 62,992 $ 65,943 We place receivables on non-accrual status when events, such as a customer’s declaring bankruptcy, occur that indicate a receivable will likely not be collectable. We charge off uncollectable financing receivables when we stop pursuing collection. 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 September 30, 2018 and March 31, 2018 (in thousands): 31-60 Days Past Due 61-90 Days Past Greater than 90 Days Past Due Total Current Unbilled Minimum Lease Payments Total Minimum Lease Payments Unearned Income Non- Recourse Notes Payable Net Credit Exposure September 30, 2018 High CQR $ 201 $ 39 $ 37 $ 277 $ 73 $ 37,216 $ 37,566 $ (4,331 ) $ (20,572 ) $ 12,663 Average CQR 129 57 50 236 42 39,981 40,259 (3,125 ) (24,424 ) 12,710 Low CQR - - - - - - - - - - Total $ 330 $ 96 $ 87 $ 513 $ 115 $ 77,197 $ 77,825 $ (7,456 ) $ (44,996 ) $ 25,373 March 31, 2018 High CQR $ 143 $ 40 $ 43 $ 226 $ 224 $ 33,779 $ 34,229 $ (3,743 ) $ (17,207 ) $ 13,279 Average CQR 109 31 117 257 171 31,286 31,714 (2,749 ) (16,012 ) 12,953 Low CQR - - - - - - - - - - Total $ 252 $ 71 $ 160 $ 483 $ 395 $ 65,065 $ 65,943 $ (6,492 ) $ (33,219 ) $ 26,232 The age of the recorded notes receivable balance disaggregated based on our internally assigned CQR were as follows (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 2017 September 30, 2018 High CQR $ 2,422 $ 45 $ 745 $ 3,212 $ 1,352 $ 53,978 $ 58,542 $ (43,655 ) $ 14,887 Average CQR 453 13 18 484 629 12,868 13,981 (8,012 ) 5,969 Low CQR - - 62 62 - - 62 - 62 Total $ 2,875 $ 58 $ 825 $ 3,758 $ 1,981 $ 66,846 $ 72,585 $ (51,667 ) $ 20,918 March 31, 2018 High CQR $ 175 $ 527 $ 423 $ 1,125 $ 3,262 $ 40,896 $ 45,283 $ (30,345 ) $ 14,938 Average CQR 42 409 22 473 394 16,780 17,647 (10,424 ) 7,223 Low CQR - - 62 62 - - 62 - 62 Total $ 217 $ 936 $ 507 $ 1,660 $ 3,656 $ 57,676 $ 62,992 $ (40,769 ) $ 22,223 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 | 6 Months Ended |
Sep. 30, 2018 | |
PROPERTY, EQUIPMENT, OTHER ASSETS AND LIABILITIES [Abstract] | |
PROPERTY, EQUIPMENT, OTHER ASSETS AND LIABILITIES | 7. PROPERTY, EQUIPMENT, OTHER ASSETS AND LIABILITIES Our property, equipment, other assets and liabilities consist of the following (in thousands): September 30, 2018 March 31, 2018 Other current assets: Deposits & funds held in escrow $ 4,203 $ 16,202 Prepaid assets 5,941 7,031 Other 572 392 Total other current assets $ 10,716 $ 23,625 Property, equipment and other assets Property and equipment, net $ 6,936 $ 7,510 Deferred costs 9,524 9,302 Other 1,577 2,331 Total other assets - long term $ 18,037 $ 19,143 Other current liabilities: Accrued expenses $ 7,081 $ 8,339 Accrued income taxes payable 283 175 Contingent consideration - current 5,888 5,806 Other 7,446 19,050 Total other current liabilities $ 20,698 $ 33,370 Other liabilities: Deferred revenue $ 13,626 $ 12,910 Contingent consideration - long-term 7,608 7,707 Other - 450 Total other liabilities - long term $ 21,234 $ 21,067 In the above table, deposits and funds held in escrow relate to financial assets that were sold to third-party banks. In conjunction with those sales, a portion of the proceeds was 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 | 6 Months Ended |
Sep. 30, 2018 | |
NOTES PAYABLE AND CREDIT FACILITY [Abstract] | |
NOTES PAYABLE AND CREDIT FACILITY | 8. Non-recourse and recourse obligations consist of the following (in thousands): September 30, 2018 March 31, 2018 Recourse notes payable with interest rate of 4.11% at March 31, 2018. Current $ - $ 1,343 Non-recourse notes payable secured by financing receivables and investments in operating leases with interest rates ranging from 2.04% to 8.45% as of March 31, 2018 and 3.04% to 8.45% as of September 30, 2018. Current $ 52,630 $ 40,863 Long-term 12,656 10,072 Total non-recourse notes payable $ 65,286 $ 50,935 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 and 4.04%, as of September 30, 2018 and March 31, 2018, respectively. The weighted average interest rate for our recourse notes payable was 4.11% as of March 31, 2018. Under recourse financing, if a customer defaults, the lender has recourse to the customer, the assets serving as collateral, and us. Under non-recourse financing, if a customer defaults, the lender generally only has recourse against the customer and the assets serving as collateral, but not us. Our technology segment, through our subsidiary e As of September 30, 2018, the facility had an aggregate limit of $325 million for the two components, 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 WFCDF facility requires a guaranty of $10.5 million by e e On July 27, 2017, we executed an amendment to the WFCDF credit facility that 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, 2018. The amendment also 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. On July 17, 2018, we elected to temporarily increase the aggregate limit to $325.0 million. Fair Value As of September 30, 2018 and March 31, 2018, the fair value of our long-term recourse and non-recourse notes payable approximated their carrying value. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Sep. 30, 2018 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 9. COMMITMENTS AND CONTINGENCIES Legal Proceedings From time to time, we may be subject to legal proceedings that arise in the ordinary course of business. In the opinion of management, there was not at least a reasonable possibility that the Company may have incurred a material loss, or a material loss in excess of a recorded accrual, with respect to loss contingencies for asserted legal and other claims. 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 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 | 6 Months Ended |
Sep. 30, 2018 | |
EARNINGS PER SHARE [Abstract] | |
EARNINGS PER SHARE | 10. 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 unaudited consolidated statements of operations (in thousands, except per share data). Three Months Ended September 30, Six Months Ended September 30, 2018 2017 2018 2017 Net earnings attributable to common shareholders - basic and diluted $ 18,003 $ 17,221 $ 33,276 $ 30,644 Basic and diluted common shares outstanding: Weighted average common shares outstanding — basic 13,494 13,879 13,464 13,843 Effect of dilutive shares 92 129 133 178 Weighted average shares common outstanding — diluted 13,586 14,008 13,597 14,021 Earnings per common share - basic $ 1.33 $ 1.24 $ 2.47 $ 2.21 Earnings per common share - diluted $ 1.33 $ 1.23 $ 2.45 $ 2.19 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 6 Months Ended |
Sep. 30, 2018 | |
STOCKHOLDERS' EQUITY [Abstract] | |
STOCKHOLDERS' EQUITY | 11. 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. On April 26, 2018, 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 six months ended September 30, 2018, we purchased 70,445 shares of our outstanding common stock at a value of $5.5 million under the share repurchase plan; we also purchased 40,092 shares of common stock at a value of $3.9 million to satisfy tax withholding obligations relating to the vesting of employees’ restricted stock. During the six months ended September 30, 2017, we did not purchase any shares of our outstanding common stock under the share repurchase plan; however, we purchase 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. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 6 Months Ended |
Sep. 30, 2018 | |
SHARE-BASED COMPENSATION [Abstract] | |
SHARE-BASED COMPENSATION | 12. SHARE-BASED COMPENSATION Share-Based Plans As of September 30, 2018, we had share-based awards outstanding under the following Restricted Stock Activity For the six months ended September 30, 2018, we granted 8,322 restricted shares under the 2017 Director LTIP, and 69,847 restricted shares under the 2012 Employee LTIP. For the six months ended September 30, 2017, we granted 535 restricted shares under the 2008 Director LTIP, 5,112 restricted shares under the 2017 Director LTIP, and 66,530 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, 2018 282,235 $ 51.69 Granted 78,169 $ 94.31 Vested (133,106 ) $ 49.15 Forfeited (914 ) $ 58.49 Nonvested September 30, 2018 226,384 $ 67.87 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. To satisfy this tax withholding obligation, the Company purchased 40,092 shares of the awarded common stock shares at a value of $3.9 million, which we included in treasury stock, during the six months ended September 30, 2018,. 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 September 30, 2018 and 2017, we recognized $1.9 million and $1.5 million, respectively, of total share-based compensation expense. During the six months ended September 30, 2018 and 2017, we recognized $3.6 million and $3.0 million, respectively, of total share-based compensation expense. Unrecognized compensation expense related to non-vested restricted stock was $13.2 million as of September 30, 2018, which will be fully recognized over the next thirty three (33) months. We also provide our employees with a contributory 401(k) profit sharing plan, to which we may contribute from time to time at our sole discretion. Employer contributions to the plan are fully vested at all times. For both the three months ended September 30, 2018 and 2017, our estimated contribution expense for the plan was $0.5 million. For the six months ended September 30, 2018 and 2017, our estimated contribution expense for the plan was $1.0 million and $1.1 million, respectively. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Sep. 30, 2018 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | 13. INCOME TAXES We account for our tax positions in accordance with Codification Topic 740, Income Taxes Our total gross unrecognized tax benefits recorded for uncertain income tax, and interest and penalties thereon, were negligible as of September 30, 2018 and September 30, 2017. We had no additions or reductions to our gross unrecognized tax benefits during the three and six months ended September 30, 2018. 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 | 6 Months Ended |
Sep. 30, 2018 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | 14. FAIR VALUE OF FINANCIAL INSTRUMENTS We account for the fair values of our assets and liabilities in accordance with Codification Topic 820, Fair Value Measurement and Disclosure. Recorded Amount Fair Value Measurement Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) September 30, 2018 Assets: Money market funds $ 25,116 $ 25,116 $ - $ - Liabilities: Contingent consideration $ 13,496 $ - $ - $ 13,496 March 31, 2018 Assets: Money market funds $ 60,385 $ 60,385 $ - $ - Liabilities: Contingent consideration $ 13,513 $ - $ - $ 13,513 For the three and six months ended September 30, 2018, we recorded adjustments to operating expenses that increased the fair value of our liability for contingent consideration by $0.7 million and $1.1 million, respectively. For both the three and six months ended September 30, 2018, we made payments of $1.1 million to satisfy the current obligations of the contingent consideration arrangements. For the three months ended September 30, 2017, we increased the fair value of our liability for contingent consideration by $10.3 million consisting of establishing a liability from business combinations of $10.0 million and $0.3 million in adjustments recorded to operating expenses. For the six ended September 30, 2017, we increased the fair value of our liability for contingent consideration by $12.4 million consisting of establishing a liability from business combinations of $12.1 million and $0.3 million in adjustments recorded to operating expense. For the three and six months ended September 30, 2017, we made no payments and payments of $0.3 million, respectively, to satisfy the current obligations of contingent consideration arrangements. |
SEGMENT REPORTING
SEGMENT REPORTING | 6 Months Ended |
Sep. 30, 2018 | |
SEGMENT REPORTING [Abstract] | |
SEGMENT REPORTING | 15. SEGMENT REPORTING Our operations are conducted through two operating segments that are also both reportable segments. Our technology segment includes sales of IT 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 September 30, 2018 September 30, 2017 Technology Financing Total Technology Financing Total Contracts with customers $ 329,682 $ 1,060 $ 330,742 $ 352,843 $ 4,916 $ 357,759 Financing and other 5,086 9,215 14,301 5,835 7,769 13,604 Net sales $ 334,768 $ 10,275 $ 345,043 $ 358,678 $ 12,685 $ 371,363 Cost of sales 257,813 1,730 259,543 281,829 1,963 283,792 Gross Profit 76,955 8,545 85,500 76,849 10,722 87,571 Selling, general, and administrative 55,138 2,567 57,705 53,503 2,837 56,340 Depreciation and amortization 2,740 1 2,741 2,128 1 2,129 Interest and financing costs - 484 484 - 274 274 Operating expenses 57,878 3,052 60,930 55,631 3,112 58,743 Operating income 19,077 5,493 24,570 21,218 7,610 28,828 Other income (expense) 322 (141 ) Earnings befor tax $ 24,892 $ 28,687 Selected Financial Data - Statement of Cash Flow Depreciation and amortization $ 2,970 $ 1,397 $ 4,367 $ 2,161 $ 1,359 $ 3,520 Purchases of property, equipment and operating lease equipment $ 1,796 $ 3,025 $ 4,821 $ 955 $ 610 $ 1,565 Selected Financial Data - Balance Sheet Total assets $ 565,771 $ 209,425 $ 775,196 $ 563,646 $ 170,641 $ 734,287 Six Months Ended September 30, 2018 September 30, 2017 Technology Financing Total Technology Financing Total Contracts with customers $ 671,141 $ 1,656 $ 672,797 $ 712,204 $ 7,731 $ 719,935 Financing and other 10,491 18,287 28,778 9,373 15,411 24,784 Net sales $ 681,632 $ 19,943 $ 701,575 $ 721,577 $ 23,142 $ 744,719 Cost of sales 531,894 3,478 535,372 575,095 4,460 579,555 Gross Profit 149,738 16,465 166,203 146,482 18,682 165,164 Selling, general, and administrative 109,592 5,079 114,671 105,004 6,000 111,004 Depreciation and amortization 5,529 2 5,531 4,190 2 4,192 Interest and financing costs - 960 960 - 633 633 Operating expenses 115,121 6,041 121,162 109,194 6,635 115,829 Operating income 34,617 10,424 45,041 37,288 12,047 49,335 Other income (expense) 419 130 Earnings befor tax $ 45,460 $ 49,465 Selected Financial Data - Statement of Cash Flow Depreciation and amortization $ 5,985 $ 2,882 $ 8,867 $ 4,256 $ 2,489 $ 6,745 Purchases of property, equipment and operating lease equipment $ 2,976 $ 3,475 $ 6,451 $ 2,046 $ 1,390 $ 3,436 Selected Financial Data - Balance Sheet Total assets $ 565,771 $ 209,425 $ 775,196 $ 563,646 $ 170,641 $ 734,287 Technology Segment Disaggregation of Revenue We analyze net sales for our technology segment by customer end market and by vendor, as opposed to discrete product and service categories, which are summarized below (in thousands): Three Months Ended September 30, Six Months Ended September 30, 2018 2017 2018 2017 Customer end market: Technology $ 75,417 $ 91,401 $ 158,234 $ 180,755 Telecom, Media & Entertainment 39,412 49,508 86,280 106,913 Financial Services 47,412 52,507 92,638 90,798 SLED 61,391 66,493 129,596 143,656 Healthcare 51,081 44,372 97,531 90,857 All others 60,055 54,397 117,353 108,598 Net sales 334,768 358,678 681,632 721,577 Financing and other (5,086 ) (5,835 ) (10,491 ) (9,373 ) Revenue from contracts with customers $ 329,682 $ 352,843 $ 671,141 $ 712,204 Three Months Ended September 30, Six Months Ended September 30, 2018 2017 2018 2017 Vendor Cisco Systems $ 152,063 $ 165,690 $ 291,300 $ 339,035 NetApp 9,477 10,433 25,039 25,887 HP Inc. & HPE 16,658 28,377 36,977 56,648 Dell / EMC 19,895 17,485 32,398 30,898 Arista Networks 10,673 7,153 30,471 24,527 Juniper 11,262 14,240 21,660 23,576 All others 114,740 115,300 243,787 221,006 Net sales 334,768 358,678 681,632 721,577 Financing and other (5,086 ) (5,835 ) (10,491 ) (9,373 ) Revenue from contracts with customers $ 329,682 $ 352,843 $ 671,141 $ 712,204 Financing Segment Disaggregation of Revenue We analyze our revenues within our financing segment based on the nature of the arrangement, and our revenues from contracts with customers consist of proceeds from the sale of off-lease equipment. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 6 Months Ended |
Sep. 30, 2018 | |
BUSINESS COMBINATIONS [Abstract] | |
BUSINESS COMBINATIONS | 16. 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, Illinois and with offices in downtown Chicago, Illinois and Indianapolis, Indiana, IDS brought us 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 expanded 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 sum of total consideration transferred was $38.4 million, consisting of $29.8 million paid in cash at closing, less $1.4 million paid back as a working capital adjustment , plus an additional $10.0 million equal to the acquisition date fair value of consideration that is contingent on the acquired business’ 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 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. On May 17, 2017, our subsidiary e Plus Technology, inc., acquired 100% of the stock of OneCloud Consulting, Inc. (“OneCloud”). Based in Milpitas, California, and with locations in India, OneCloud brought us a versatile team of highly trained technology consultants, architects, developers and instructors. Though OneCloud, we enable our customers’ cloud and application strategy via professional services, technical education and software development. The acquisition provides us with additional ability to address customers’ need for cloud-based solutions and infrastructure, including DevOps, OpenStack, and other emerging technologies. Our sum of total consideration 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. |
ORGANIZATION AND SUMMARY OF S_2
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Sep. 30, 2018 | |
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 six months ended September 30, 2018 and 2017 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 six months ended September 30, 2018 and 2017 are not necessarily indicative of results that may be expected for any other interim period, the full fiscal year ending March 31, 2019, 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 (“US 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, 2018 (“2018 Annual Report”), which should be read in conjunction with these interim condensed consolidated financial statements. |
USE OF ESTIMATES | USE OF ESTIMATES — |
CONCENTRATIONS OF RISK | CONCENTRATIONS OF RISK — A substantial portion of our sales are products from Cisco Systems, which were 45% of our technology segment’s net sales for both the three months ended September 30, 2018 and 2017, and 43% and 47% of our technology segment’s net sales for the six months ended September 30, 2018 and 2017, respectively. |
REVENUE RECOGNITION | REVENUE RECOGNITION — We recognize the majority of our revenues from the sales of third party products, third party software, third party services such as maintenance and software support and from sales of e e The core principle of Codification Topic 606 is that an entity should recognize revenue for the transfer of goods and services equal to an amount it expects to be entitled to receive for those goods and services. We account for a contract under Codification Topic 606 when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are established, the contract has commercial substance, and collectability of consideration is probable. Revenues are reported net of sales refunds, including an estimate of future returns based on an evaluation of historical sales returns, current economic conditions, volume, and other relevant factors. Our contracts with customers may include multiple promises that are distinct performance obligations. For such arrangements, we allocate the transaction price to each performance obligation based on its relative standalone selling price. We determine standalone selling prices using expected cost plus margin. We recognize revenue when (or as) we satisfy a performance obligation by transferring a promised good or service to a customer. A good or service is transferred when (or as) the customer obtains control of that good or service. Depending on the nature of each performance obligation, this may be at a point in time or over time, as further described below. We typically invoice our customers for third party products upon shipment, unless our customers lease the equipment through our financing segment, in which case the arrangement is accounted for as a lease in accordance with Codification Topic 840, Leases Sales of third party products We are the principal in sales of third party products. As such, we recognize sales on a gross basis with the selling price to the customer recorded as sales and the acquisition cost of the product recognized as cost of sales. We recognize revenue from these sales at the point in time that control passes to the customer, which is typically upon delivery of the product to the customer. In some instances, our customers may request that we bill them for a product but retain physical possession of the product until later delivery, commonly known as “bill-and-hold” arrangements. In these transactions, we recognize revenue when the customer has signed a bill-and-hold agreement with us, the product is identified separately as belonging to the customer and, when orders include configuration, such configuration is complete and the product is ready for delivery to the customer. We recognize sales of leased equipment within our financing segment when control passes to the customer, which is typically the date of sale. Sales of third party software We are typically the principal in sales of third party software. We often sell third party support accompanying third party software. When the third party software benefits the customer only in conjunction with the accompanying support, such as in sales of anti-virus software and support, we consider the third party software and support as inputs to a single performance obligation. The third party controls the service as it is transferred to the customer and therefore we are acting as an agent in these transactions. We recognize revenue from these sales on a net basis when our customer and vendor accept the terms and conditions of the arrangement. Sales of third party maintenance, software support, and services We are the agent in sales of third party maintenance, software support, and services as the third party controls the service until it is transferred to the customer. We recognize sales on a net basis equal to the selling price to the customer less the acquisition cost. We recognize revenue from these sales when our customer and vendor accept the terms and conditions of the arrangement. Sales of ePlus professional and managed services Our e e We provide e In arrangements for e We host e Freight and sales tax We present freight billed to our customers within sales and the related freight charged to us within cost of sales. We present sales tax collected from customers and remittances to governmental authorities on a net basis. Financing revenue and other We account for leases to customers in accordance with Codification Topic 840, Leases We consider whether a lease meets any of the following four criteria as part of classifying the lease at its inception: · the lease transfers ownership of the property to the lessee by the end of the lease term; · the lease contains a bargain purchase option; · the lease term is equal to 75 percent or more of the estimated economic life of the leased property; or · the present value at the beginning of the lease term of the minimum lease payments equals or exceeds 90 percent of the fair value of the leased property at the inception of the lease. If a lease meets any of the four lease classification criteria and gives rise to dealer’s profit, we classify the lease as a sales-type lease. For sales-type leases, we recognize sales equal to the present value of the minimum lease payments discounted using the implicit interest rate in the lease and cost of sales equal to carrying amount of the asset being leased and any initial direct costs incurred, less the present value of the unguaranteed residual. Interest income from the lease is recognized in sales over the lease term in our financing segment. If a lease meets any of the four lease classification criteria, and does not give rise to dealer’s profit, we classify the lease as a direct financing lease. For direct financing leases, the difference between our gross investment in the lease and the cost of the leased property is deferred as unearned income and recognized as sales over the lease term. If a lease meets none of the four lease classification criteria, we classify the lease as an operating lease. For operating leases, we recognize the rent charged on the lease as sales on a straight-line basis ratably over the term of the lease agreement. We may also finance third-party software and third party services for our customers, which are classified as notes receivable. We recognize interest on notes receivable in net sales. Codification Topic 860 Transfers and Servicing |
CONTRACT BALANCES | CONTRACT BALANCES — We recognize contract liabilities when cash payments are received or due in advance of our performance. |
COSTS OF OBTAINING A CONTRACT | COSTS OF OBTAINING A CONTRACT — We capitalize costs that are incremental to obtaining customer contracts, predominately sales commissions, and expense them in proportion to each completed contract performance obligation. |
RECENT ACCOUNTING PRONOUNCEME_2
RECENT ACCOUNTING PRONOUNCEMENTS (Policies) | 6 Months Ended |
Sep. 30, 2018 | |
RECENT ACCOUNTING PRONOUNCEMENTS [Abstract] | |
RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS | RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS —We adopted ASU 2014-09 on April 1, 2018, using the full retrospective method. Under the full retrospective method, we apply the guidance retrospectively to each prior reporting period presented. The impact from the adopting ASU 2014-09 on our consolidated balance sheet as of March 31, 2018, was a decrease in accounts receivable – trade of $1.9 million, an increase in accounts receivable – other of $1.9 million, a decrease in deferred costs of $3.2 million, and a decrease in deferred revenues of $3.2 million. There is no impact to our retained earnings as of March 31, 2018. The impact on our consolidated statement of operations was a decrease in net sales and cost of sales by $0.5 million for the three months ended September 30, 2017 and an increase of $6.7 million in net sales and cost of sales for the six months ended September 30, 2017. |
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED | RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED —In June 2016, the FASB issued ASU 2016-13, Financial Instruments- Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In November 2016, the FASB issued ASU 2016-02, Leases |
REVENUES (Tables)
REVENUES (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
REVENUES [Abstract] | |
Balance of Receivables, Contract Assets, and Contract Liabilities | The following table provides the balance of contract liabilities from contracts with customers (in thousands): Contract liabilities September 30, 2018 March 31, 2018 Current (included in deferred revenue) $ 35,036 $ 34,643 Non-current (included in other liabilities) $ 13,430 $ 12,699 |
Remaining Performance Obligations | The following table includes revenue expected to be recognized in the future related to performance obligations , are unsatisfied or partially unsatisfied at the end of the reporting period, in thousands. The table does not include the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts where we recognize revenue at the amount that we have the right to invoice for services performed. Remaining six months of fiscal 2019 $ 12,337 Fiscal 2020 12,607 Fiscal 2021 6,837 Fiscal 2022 1,078 Fiscal 2023 302 Fiscal 2024 2 Total remaining performance obligations $ 33,163 |
FINANCING RECEIVABLES AND OPE_2
FINANCING RECEIVABLES AND OPERATING LEASES (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
FINANCING RECEIVABLES AND OPERATING LEASES [Abstract] | |
Notes Receivable Net and Investments in Leases | Our financing receivables-net consist of the following (in thousands): Notes Lease-Related Total Financing September 30, 2018 Receivables Receivables Receivables Minimum payments $ 72,585 $ 77,825 $ 150,410 Estimated unguaranteed residual value (1) - 12,805 12,805 Initial direct costs, net of amortization (2) 629 397 1,026 Unearned income - (9,409 ) (9,409 ) Reserve for credit losses (3) (483 ) (598 ) (1,081 ) Total, net $ 72,731 $ 81,020 $ 153,751 Reported as: Current $ 52,409 $ 33,844 $ 86,253 Long-term 20,322 47,176 67,498 Total, net $ 72,731 $ 81,020 $ 153,751 (1) Includes estimated unguaranteed residual values of $7,074 thousand for direct financing leases, which have been sold and accounted for as sales. (2) Initial direct costs are shown net of amortization of $357 thousand. (3) For details on reserve for credit losses, refer to Note 6, “Reserves for Credit Losses.” Notes Lease-Related Total Financing March 31, 2018 Receivables Receivables Receivables Minimum payments $ 62,992 $ 65,943 $ 128,935 Estimated unguaranteed residual value (1) - 11,226 11,226 Initial direct costs, net of amortization (2) 375 334 709 Unearned income - (8,251 ) (8,251 ) Reserve for credit losses (3) (486 ) (640 ) (1,126 ) Total, net $ 62,881 $ 68,612 $ 131,493 Reported as: Current $ 39,993 $ 29,943 $ 69,936 Long-term 22,888 38,669 61,557 Total, net $ 62,881 $ 68,612 $ 131,493 (1) Includes estimated unguaranteed residual values of $6,004 thousand for direct financing leases that have been sold and accounted for as sales. (2) Initial direct costs are shown net of amortization of $341 thousand. (3) For details on reserve for credit losses, refer to Note 6, “Reserves for Credit Losses.” |
Investment in Operating Lease Equipment - Net | The components of the operating leases—net are as follows (in thousands): September 30, 2018 March 31, 2018 Cost of equipment under operating leases $ 20,738 $ 15,683 Accumulated depreciation (9,117 ) (8,729 ) Investment in operating lease equipment—net (1) $ 11,621 $ 6,954 (1) Includes estimated unguaranteed residual values of $2,931 thousand and $1,921 thousand as of September 30, 2018 and March 31, 2018, respectively. |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract] | |
Changes in Goodwill | The following table summarizes the changes in the carrying amount of goodwill (in thousands): Six Months Ended September 30, 2018 Six Months Ended September 30, 2017 Goodwill Accumulated Impairment Loss Net Carrying Amount Goodwill Accumulated Impairment Loss Net Carrying Amount Beginning Balance $ 85,297 $ (8,673 ) $ 76,624 $ 57,070 $ (8,673 ) $ 48,397 Acquisitions - - - 27,939 - 27,939 Foreign currency translations (179 ) - (179 ) 134 - 134 Ending Balance $ 85,118 $ (8,673 ) $ 76,445 $ 85,143 $ (8,673 ) $ 76,470 |
Other Intangible Assets | Our other intangible assets consist of the following (in thousands): September 30, 2018 March 31, 2018 Gross Carrying Amount Accumulated Amortization / Loss Net Carrying Amount Gross Carrying Amount Accumulated Amortization / Loss Net Carrying Amount Customer relationships & other intangibles $ 41,974 $ (22,026 ) $ 19,948 $ 41,895 $ (18,634 ) $ 23,261 Capitalized software development 6,136 (2,279 ) 3,857 5,608 (2,567 ) 3,041 Total $ 48,110 $ (24,305 ) $ 23,805 $ 47,503 $ (21,201 ) $ 26,302 |
RESERVES FOR CREDIT LOSSES (Tab
RESERVES FOR CREDIT LOSSES (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
RESERVES FOR CREDIT LOSSES [Abstract] | |
Activity in Reserves for Credit Losses | Activity in our reserves for credit losses were as follows (in thousands): Accounts Receivable Notes Receivable Lease- Related Receivables Total Balance April 1, 2018 $ 1,538 $ 486 $ 640 $ 2,664 Provision for credit losses 127 (3 ) (42 ) 82 Write-offs and other (1 ) - - (1 ) Balance September 30, 2018 $ 1,664 $ 483 $ 598 $ 2,745 Accounts Receivable Notes Receivable Lease- Related Receivables Total Balance April 1, 2017 $ 1,279 $ 3,434 $ 679 $ 5,392 Provision for credit losses (5 ) 27 133 155 Write-offs and other - (3,020 ) (164 ) (3,184 ) Balance September 30, 2017 $ 1,274 $ 441 $ 648 $ 2,363 |
Reserve for Credit Losses and Minimum Lease Payments Associated with Notes Receivable and Investment in Direct Financing and Sales-type Lease Balances Disaggregated Based on Our Impairment Method | Our reserves for credit losses and minimum payments associated with our notes receivables and lease-related receivables disaggregated based on of our impairment method were as follows (in thousands): September 30, 2018 March 31, 2018 Notes Receivable Lease- Related Receivables Notes Receivable Lease- Related Receivables Reserves for credit losses: Ending balance: collectively evaluated for impairment $ 421 $ 598 $ 424 $ 640 Ending balance: individually evaluated for impairment 62 - 62 - Ending balance $ 483 $ 598 $ 486 $ 640 Minimum payments: Ending balance: collectively evaluated for impairment $ 72,523 $ 77,825 $ 62,930 $ 65,943 Ending balance: individually evaluated for impairment 62 - 62 - Ending balance $ 72,585 $ 77,825 $ 62,992 $ 65,943 |
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 September 30, 2018 and March 31, 2018 (in thousands): 31-60 Days Past Due 61-90 Days Past Greater than 90 Days Past Due Total Current Unbilled Minimum Lease Payments Total Minimum Lease Payments Unearned Income Non- Recourse Notes Payable Net Credit Exposure September 30, 2018 High CQR $ 201 $ 39 $ 37 $ 277 $ 73 $ 37,216 $ 37,566 $ (4,331 ) $ (20,572 ) $ 12,663 Average CQR 129 57 50 236 42 39,981 40,259 (3,125 ) (24,424 ) 12,710 Low CQR - - - - - - - - - - Total $ 330 $ 96 $ 87 $ 513 $ 115 $ 77,197 $ 77,825 $ (7,456 ) $ (44,996 ) $ 25,373 March 31, 2018 High CQR $ 143 $ 40 $ 43 $ 226 $ 224 $ 33,779 $ 34,229 $ (3,743 ) $ (17,207 ) $ 13,279 Average CQR 109 31 117 257 171 31,286 31,714 (2,749 ) (16,012 ) 12,953 Low CQR - - - - - - - - - - Total $ 252 $ 71 $ 160 $ 483 $ 395 $ 65,065 $ 65,943 $ (6,492 ) $ (33,219 ) $ 26,232 |
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 (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 2017 September 30, 2018 High CQR $ 2,422 $ 45 $ 745 $ 3,212 $ 1,352 $ 53,978 $ 58,542 $ (43,655 ) $ 14,887 Average CQR 453 13 18 484 629 12,868 13,981 (8,012 ) 5,969 Low CQR - - 62 62 - - 62 - 62 Total $ 2,875 $ 58 $ 825 $ 3,758 $ 1,981 $ 66,846 $ 72,585 $ (51,667 ) $ 20,918 March 31, 2018 High CQR $ 175 $ 527 $ 423 $ 1,125 $ 3,262 $ 40,896 $ 45,283 $ (30,345 ) $ 14,938 Average CQR 42 409 22 473 394 16,780 17,647 (10,424 ) 7,223 Low CQR - - 62 62 - - 62 - 62 Total $ 217 $ 936 $ 507 $ 1,660 $ 3,656 $ 57,676 $ 62,992 $ (40,769 ) $ 22,223 |
PROPERTY, EQUIPMENT, OTHER AS_2
PROPERTY, EQUIPMENT, OTHER ASSETS AND LIABILITIES (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
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): September 30, 2018 March 31, 2018 Other current assets: Deposits & funds held in escrow $ 4,203 $ 16,202 Prepaid assets 5,941 7,031 Other 572 392 Total other current assets $ 10,716 $ 23,625 Property, equipment and other assets Property and equipment, net $ 6,936 $ 7,510 Deferred costs 9,524 9,302 Other 1,577 2,331 Total other assets - long term $ 18,037 $ 19,143 Other current liabilities: Accrued expenses $ 7,081 $ 8,339 Accrued income taxes payable 283 175 Contingent consideration - current 5,888 5,806 Other 7,446 19,050 Total other current liabilities $ 20,698 $ 33,370 Other liabilities: Deferred revenue $ 13,626 $ 12,910 Contingent consideration - long-term 7,608 7,707 Other - 450 Total other liabilities - long term $ 21,234 $ 21,067 |
NOTES PAYABLE AND CREDIT FACI_2
NOTES PAYABLE AND CREDIT FACILITY (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
NOTES PAYABLE AND CREDIT FACILITY [Abstract] | |
Non-recourse and Recourse Obligations | Non-recourse and recourse obligations consist of the following (in thousands): September 30, 2018 March 31, 2018 Recourse notes payable with interest rate of 4.11% at March 31, 2018. Current $ - $ 1,343 Non-recourse notes payable secured by financing receivables and investments in operating leases with interest rates ranging from 2.04% to 8.45% as of March 31, 2018 and 3.04% to 8.45% as of September 30, 2018. Current $ 52,630 $ 40,863 Long-term 12,656 10,072 Total non-recourse notes payable $ 65,286 $ 50,935 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
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 unaudited consolidated statements of operations (in thousands, except per share data). Three Months Ended September 30, Six Months Ended September 30, 2018 2017 2018 2017 Net earnings attributable to common shareholders - basic and diluted $ 18,003 $ 17,221 $ 33,276 $ 30,644 Basic and diluted common shares outstanding: Weighted average common shares outstanding — basic 13,494 13,879 13,464 13,843 Effect of dilutive shares 92 129 133 178 Weighted average shares common outstanding — diluted 13,586 14,008 13,597 14,021 Earnings per common share - basic $ 1.33 $ 1.24 $ 2.47 $ 2.21 Earnings per common share - diluted $ 1.33 $ 1.23 $ 2.45 $ 2.19 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
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, 2018 282,235 $ 51.69 Granted 78,169 $ 94.31 Vested (133,106 ) $ 49.15 Forfeited (914 ) $ 58.49 Nonvested September 30, 2018 226,384 $ 67.87 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | |
Fair Value Hierarchy of Financial Instruments | The following table summarizes the fair value hierarchy of our financial instruments (in thousands): Recorded Amount Fair Value Measurement Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) September 30, 2018 Assets: Money market funds $ 25,116 $ 25,116 $ - $ - Liabilities: Contingent consideration $ 13,496 $ - $ - $ 13,496 March 31, 2018 Assets: Money market funds $ 60,385 $ 60,385 $ - $ - Liabilities: Contingent consideration $ 13,513 $ - $ - $ 13,513 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
SEGMENT REPORTING [Abstract] | |
Segment Reporting Information, by Reportable Segment | Our reportable segment information was as follows (in thousands): Three Months Ended September 30, 2018 September 30, 2017 Technology Financing Total Technology Financing Total Contracts with customers $ 329,682 $ 1,060 $ 330,742 $ 352,843 $ 4,916 $ 357,759 Financing and other 5,086 9,215 14,301 5,835 7,769 13,604 Net sales $ 334,768 $ 10,275 $ 345,043 $ 358,678 $ 12,685 $ 371,363 Cost of sales 257,813 1,730 259,543 281,829 1,963 283,792 Gross Profit 76,955 8,545 85,500 76,849 10,722 87,571 Selling, general, and administrative 55,138 2,567 57,705 53,503 2,837 56,340 Depreciation and amortization 2,740 1 2,741 2,128 1 2,129 Interest and financing costs - 484 484 - 274 274 Operating expenses 57,878 3,052 60,930 55,631 3,112 58,743 Operating income 19,077 5,493 24,570 21,218 7,610 28,828 Other income (expense) 322 (141 ) Earnings befor tax $ 24,892 $ 28,687 Selected Financial Data - Statement of Cash Flow Depreciation and amortization $ 2,970 $ 1,397 $ 4,367 $ 2,161 $ 1,359 $ 3,520 Purchases of property, equipment and operating lease equipment $ 1,796 $ 3,025 $ 4,821 $ 955 $ 610 $ 1,565 Selected Financial Data - Balance Sheet Total assets $ 565,771 $ 209,425 $ 775,196 $ 563,646 $ 170,641 $ 734,287 Six Months Ended September 30, 2018 September 30, 2017 Technology Financing Total Technology Financing Total Contracts with customers $ 671,141 $ 1,656 $ 672,797 $ 712,204 $ 7,731 $ 719,935 Financing and other 10,491 18,287 28,778 9,373 15,411 24,784 Net sales $ 681,632 $ 19,943 $ 701,575 $ 721,577 $ 23,142 $ 744,719 Cost of sales 531,894 3,478 535,372 575,095 4,460 579,555 Gross Profit 149,738 16,465 166,203 146,482 18,682 165,164 Selling, general, and administrative 109,592 5,079 114,671 105,004 6,000 111,004 Depreciation and amortization 5,529 2 5,531 4,190 2 4,192 Interest and financing costs - 960 960 - 633 633 Operating expenses 115,121 6,041 121,162 109,194 6,635 115,829 Operating income 34,617 10,424 45,041 37,288 12,047 49,335 Other income (expense) 419 130 Earnings befor tax $ 45,460 $ 49,465 Selected Financial Data - Statement of Cash Flow Depreciation and amortization $ 5,985 $ 2,882 $ 8,867 $ 4,256 $ 2,489 $ 6,745 Purchases of property, equipment and operating lease equipment $ 2,976 $ 3,475 $ 6,451 $ 2,046 $ 1,390 $ 3,436 Selected Financial Data - Balance Sheet Total assets $ 565,771 $ 209,425 $ 775,196 $ 563,646 $ 170,641 $ 734,287 |
Disaggregation of Revenue | We analyze net sales for our technology segment by customer end market and by vendor, as opposed to discrete product and service categories, which are summarized below (in thousands): Three Months Ended September 30, Six Months Ended September 30, 2018 2017 2018 2017 Customer end market: Technology $ 75,417 $ 91,401 $ 158,234 $ 180,755 Telecom, Media & Entertainment 39,412 49,508 86,280 106,913 Financial Services 47,412 52,507 92,638 90,798 SLED 61,391 66,493 129,596 143,656 Healthcare 51,081 44,372 97,531 90,857 All others 60,055 54,397 117,353 108,598 Net sales 334,768 358,678 681,632 721,577 Financing and other (5,086 ) (5,835 ) (10,491 ) (9,373 ) Revenue from contracts with customers $ 329,682 $ 352,843 $ 671,141 $ 712,204 Three Months Ended September 30, Six Months Ended September 30, 2018 2017 2018 2017 Vendor Cisco Systems $ 152,063 $ 165,690 $ 291,300 $ 339,035 NetApp 9,477 10,433 25,039 25,887 HP Inc. & HPE 16,658 28,377 36,977 56,648 Dell / EMC 19,895 17,485 32,398 30,898 Arista Networks 10,673 7,153 30,471 24,527 Juniper 11,262 14,240 21,660 23,576 All others 114,740 115,300 243,787 221,006 Net sales 334,768 358,678 681,632 721,577 Financing and other (5,086 ) (5,835 ) (10,491 ) (9,373 ) Revenue from contracts with customers $ 329,682 $ 352,843 $ 671,141 $ 712,204 |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Integrated Data Storage LLC [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 $ 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 |
ORGANIZATION AND SUMMARY OF S_3
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
REVENUE RECOGNITION [Abstract] | ||||
Lease criteria minimum estimated economic life | 75.00% | 75.00% | ||
Lease criteria minimum fair value of lease payments at inception of lease | 90.00% | 90.00% | ||
Net Sales [Member] | Cisco Systems [Member] | ||||
Concentration of risk [Abstract] | ||||
Percentage of concentration risk | 45.00% | 45.00% | 43.00% | 47.00% |
RECENT ACCOUNTING PRONOUNCEME_3
RECENT ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Mar. 31, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Accounts receivable-trade, net | $ (292,045) | $ (292,045) | $ (268,287) | ||
Accounts receivable-other, net | 40,312 | 40,312 | 28,401 | ||
Deferred costs | (16,211) | (16,211) | (16,589) | ||
Deferred revenue | (35,860) | (35,860) | (35,648) | ||
Net sales | 330,742 | $ 357,759 | 672,797 | $ 719,935 | |
Cost of sales | $ 259,543 | 283,792 | $ 535,372 | 579,555 | |
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ASU 2014-09 [Member] | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Accounts receivable-trade, net | (1,900) | ||||
Accounts receivable-other, net | 1,900 | ||||
Deferred costs | (3,200) | ||||
Deferred revenue | $ (3,200) | ||||
Net sales | (500) | 6,700 | |||
Cost of sales | $ (500) | $ 6,700 |
REVENUES (Details)
REVENUES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Mar. 31, 2018 | |
Contract with Customer, Asset and Liability [Abstract] | |||||
Accounts receivable - trade | $ 38,000 | $ 38,000 | $ 28,100 | ||
Current (included in deferred revenue) | 35,036 | 35,036 | 34,643 | ||
Non-current (included in other liabilities) | 13,430 | 13,430 | $ 12,699 | ||
Revenue recognized from the beginning contract liability | 8,100 | $ 36,000 | 20,900 | $ 55,500 | |
Revenue, Performance Obligation Satisfied over Time [Abstract] | |||||
Remaining performance obligation | 33,163 | 33,163 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01 | |||||
Revenue, Performance Obligation Satisfied over Time [Abstract] | |||||
Remaining performance obligation | $ 12,337 | $ 12,337 | |||
Expected timing of satisfaction, period | 6 months | 6 months | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01 | |||||
Revenue, Performance Obligation Satisfied over Time [Abstract] | |||||
Remaining performance obligation | $ 12,607 | $ 12,607 | |||
Expected timing of satisfaction, period | 1 year | 1 year | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | |||||
Revenue, Performance Obligation Satisfied over Time [Abstract] | |||||
Remaining performance obligation | $ 6,837 | $ 6,837 | |||
Expected timing of satisfaction, period | 1 year | 1 year | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | |||||
Revenue, Performance Obligation Satisfied over Time [Abstract] | |||||
Remaining performance obligation | $ 1,078 | $ 1,078 | |||
Expected timing of satisfaction, period | 1 year | 1 year | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | |||||
Revenue, Performance Obligation Satisfied over Time [Abstract] | |||||
Remaining performance obligation | $ 302 | $ 302 | |||
Expected timing of satisfaction, period | 1 year | 1 year | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | |||||
Revenue, Performance Obligation Satisfied over Time [Abstract] | |||||
Remaining performance obligation | $ 2 | $ 2 | |||
Expected timing of satisfaction, period | 1 year | 1 year |
FINANCING RECEIVABLES AND OPE_3
FINANCING RECEIVABLES AND OPERATING LEASES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |||||
Financing Receivables [Abstract] | ||||||||||
Reserve for credit losses | $ (2,745) | $ (2,363) | $ (2,745) | $ (2,363) | $ (2,664) | $ (5,392) | ||||
Reported as [Abstract] | ||||||||||
Current | 86,253 | 86,253 | 69,936 | |||||||
Estimated unguaranteed residual values for direct financing lease | 7,074 | 7,074 | 6,004 | |||||||
Accumulated amortization of initial direct cost | 357 | 357 | 341 | |||||||
Investment in operating lease equipment - net [Abstract] | ||||||||||
Cost of equipment under operating leases | 20,738 | 20,738 | 15,683 | |||||||
Accumulated depreciation | (9,117) | (9,117) | (8,729) | |||||||
Investment in operating lease equipment - net | [1] | 11,621 | 11,621 | 6,954 | ||||||
Unguaranteed residual value of operating lease equipment net | 2,931 | 2,931 | 1,921 | |||||||
Collateral for non-recourse notes payable - Finance receivables | 61,800 | 61,800 | 52,000 | |||||||
Collateral for non-recourse notes payable - Operating leases | 9,300 | 9,300 | 5,300 | |||||||
Gain on sale of financing receivables | 1,200 | 1,200 | 2,500 | 3,500 | ||||||
Proceeds from sale of financing receivables | 47,200 | 48,300 | 94,000 | 134,100 | ||||||
Contract liabilities - servicing of financial assets | 400 | 400 | 500 | |||||||
Maximum potential future payments related guarantees | 300 | 300 | ||||||||
Notes Receivables [Member] | ||||||||||
Financing Receivables [Abstract] | ||||||||||
Minimum payments | 72,585 | 72,585 | 62,992 | |||||||
Estimated unguaranteed residual value | 0 | [2] | 0 | [2] | 0 | [3] | ||||
Initial direct costs, net of amortization | 629 | [4] | 629 | [4] | 375 | [5] | ||||
Unearned income | 0 | 0 | 0 | |||||||
Reserve for credit losses | (483) | [6] | (441) | (483) | [6] | (441) | (486) | [6] | (3,434) | |
Total, net | 72,731 | 72,731 | 62,881 | |||||||
Reported as [Abstract] | ||||||||||
Current | 52,409 | 52,409 | 39,993 | |||||||
Long-term | 20,322 | 20,322 | 22,888 | |||||||
Total, net | 72,731 | 72,731 | 62,881 | |||||||
Lease-Related Receivables [Member] | ||||||||||
Financing Receivables [Abstract] | ||||||||||
Minimum payments | 77,825 | 77,825 | 65,943 | |||||||
Estimated unguaranteed residual value | 12,805 | [2] | 12,805 | [2] | 11,226 | [3] | ||||
Initial direct costs, net of amortization | 397 | [4] | 397 | [4] | 334 | [5] | ||||
Unearned income | (9,409) | (9,409) | (8,251) | |||||||
Reserve for credit losses | (598) | [6] | $ (648) | (598) | [6] | $ (648) | (640) | [6] | $ (679) | |
Total, net | 81,020 | 81,020 | 68,612 | |||||||
Reported as [Abstract] | ||||||||||
Current | 33,844 | 33,844 | 29,943 | |||||||
Long-term | 47,176 | 47,176 | 38,669 | |||||||
Total, net | 81,020 | 81,020 | 68,612 | |||||||
Financing Receivables [Member] | ||||||||||
Financing Receivables [Abstract] | ||||||||||
Minimum payments | 150,410 | 150,410 | 128,935 | |||||||
Estimated unguaranteed residual value | 12,805 | [2] | 12,805 | [2] | 11,226 | [3] | ||||
Initial direct costs, net of amortization | 1,026 | [4] | 1,026 | [4] | 709 | [5] | ||||
Unearned income | (9,409) | (9,409) | (8,251) | |||||||
Reserve for credit losses | [6] | (1,081) | (1,081) | (1,126) | ||||||
Total, net | 153,751 | 153,751 | 131,493 | |||||||
Reported as [Abstract] | ||||||||||
Current | 86,253 | 86,253 | 69,936 | |||||||
Long-term | 67,498 | 67,498 | 61,557 | |||||||
Total, net | $ 153,751 | $ 153,751 | $ 131,493 | |||||||
[1] | Includes estimated unguaranteed residual values of $2,931 thousand and $1,921 thousand as of September 30, 2018 and March 31, 2018, respectively. | |||||||||
[2] | Includes estimated unguaranteed residual values of $7,074 thousand for direct financing leases, which have been sold and accounted for as sales. | |||||||||
[3] | Includes estimated unguaranteed residual values of $6,004 thousand for direct financing leases that have been sold and accounted for as sales. | |||||||||
[4] | Initial direct costs are shown net of amortization of $357 thousand. | |||||||||
[5] | Initial direct costs are shown net of amortization of $341 thousand. | |||||||||
[6] | For details on reserve for credit losses, refer to Note 6, "Reserves for Credit Losses." |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)Unit | Sep. 30, 2017USD ($) | Mar. 31, 2018USD ($) | |
Goodwill [Roll Forward] | |||||
Goodwill, Beginning Balance | $ 85,297 | $ 57,070 | |||
Goodwill, Accumulated Amortization / Impairment Loss, Beginning Balance | (8,673) | (8,673) | |||
Goodwill, Net Carrying Amount, Beginning Balance | 76,624 | 48,397 | |||
Acquisitions | 0 | 27,939 | |||
Foreign currency translations | (179) | 134 | |||
Goodwill, Ending Balance | $ 85,118 | $ 85,143 | 85,118 | 85,143 | |
Goodwill, Accumulated Amortization / Impairment Loss, Ending Balance | (8,673) | (8,673) | (8,673) | (8,673) | |
Goodwill, Net Carrying Amount, Ending Balance | 76,445 | 76,470 | $ 76,445 | 76,470 | |
Number of reporting units | Unit | 1 | ||||
Other Intangible Assets [Abstract] | |||||
Intangibles assets, Gross carrying amount | 48,110 | $ 48,110 | $ 47,503 | ||
Intangibles Assets, Accumulated amortization / Impairment Loss | (24,305) | (24,305) | (21,201) | ||
Intangible assets, Net Carrying Amount | 23,805 | 23,805 | 26,302 | ||
Total amortization expense for other intangible assets | 1,800 | $ 1,200 | 3,600 | $ 2,400 | |
Customer Relationships and Other Intangibles [Member] | |||||
Other Intangible Assets [Abstract] | |||||
Intangibles assets, Gross carrying amount | 41,974 | 41,974 | 41,895 | ||
Intangibles Assets, Accumulated amortization / Impairment Loss | (22,026) | (22,026) | (18,634) | ||
Intangible assets, Net Carrying Amount | 19,948 | $ 19,948 | 23,261 | ||
Customer Relationships [Member] | Minimum [Member] | |||||
Other Intangible Assets [Abstract] | |||||
Estimated useful life | 3 years | ||||
Customer Relationships [Member] | Maximum [Member] | |||||
Other Intangible Assets [Abstract] | |||||
Estimated useful life | 8 years | ||||
Capitalized Software Development [Member] | |||||
Other Intangible Assets [Abstract] | |||||
Intangibles assets, Gross carrying amount | 6,136 | $ 6,136 | 5,608 | ||
Intangibles Assets, Accumulated amortization / Impairment Loss | (2,279) | (2,279) | (2,567) | ||
Intangible assets, Net Carrying Amount | $ 3,857 | $ 3,857 | $ 3,041 | ||
Capitalized Software Development [Member] | Minimum [Member] | |||||
Other Intangible Assets [Abstract] | |||||
Estimated useful life | 3 years | ||||
Capitalized Software Development [Member] | Maximum [Member] | |||||
Other Intangible Assets [Abstract] | |||||
Estimated useful life | 8 years | ||||
Trade Names and Trademarks [Member] | |||||
Other Intangible Assets [Abstract] | |||||
Estimated useful life | 10 years |
RESERVES FOR CREDIT LOSSES (Det
RESERVES FOR CREDIT LOSSES (Details) - USD ($) $ in Thousands | 6 Months Ended | ||||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Mar. 31, 2018 | ||||
Activity in reserves for credit losses [Roll Forward] | |||||||
Balance | $ 2,664 | $ 5,392 | |||||
Provision for credit losses | 82 | 155 | |||||
Write-offs and other | (1) | (3,184) | |||||
Balance | 2,745 | 2,363 | |||||
Reserve for credit losses [Abstract] | |||||||
Ending balance | 2,664 | 5,392 | $ 2,745 | $ 2,664 | |||
Accounts Receivable [Member] | |||||||
Activity in reserves for credit losses [Roll Forward] | |||||||
Balance | 1,538 | 1,279 | |||||
Provision for credit losses | 127 | (5) | |||||
Write-offs and other | (1) | 0 | |||||
Balance | 1,664 | 1,274 | |||||
Reserve for credit losses [Abstract] | |||||||
Ending balance | 1,538 | 1,279 | 1,664 | 1,538 | |||
Notes Receivable [Member] | |||||||
Activity in reserves for credit losses [Roll Forward] | |||||||
Balance | 486 | [1] | 3,434 | ||||
Provision for credit losses | (3) | 27 | |||||
Write-offs and other | 0 | (3,020) | |||||
Balance | 483 | [1] | 441 | ||||
Reserve for credit losses [Abstract] | |||||||
Ending balance: collectively evaluated for impairment | 421 | 424 | |||||
Ending balance: individually evaluated for impairment | 62 | 62 | |||||
Ending balance | 483 | [1] | 3,434 | 483 | [1] | 486 | [1] |
Minimum payments [Abstract] | |||||||
Ending balance: collectively evaluated for impairment | 72,523 | 62,930 | |||||
Ending balance: individually evaluated for impairment | 62 | 62 | |||||
Ending balance | 72,585 | 62,992 | |||||
Lease-Related Receivables [Member] | |||||||
Activity in reserves for credit losses [Roll Forward] | |||||||
Balance | 640 | [1] | 679 | ||||
Provision for credit losses | (42) | 133 | |||||
Write-offs and other | 0 | (164) | |||||
Balance | 598 | [1] | 648 | ||||
Reserve for credit losses [Abstract] | |||||||
Ending balance: collectively evaluated for impairment | 598 | 640 | |||||
Ending balance: individually evaluated for impairment | 0 | 0 | |||||
Ending balance | $ 598 | [1] | $ 679 | 598 | [1] | 640 | [1] |
Minimum payments [Abstract] | |||||||
Ending balance: collectively evaluated for impairment | 77,825 | 65,943 | |||||
Ending balance: individually evaluated for impairment | 0 | 0 | |||||
Ending balance | $ 77,825 | $ 65,943 | |||||
[1] | For details on reserve for credit losses, refer to Note 6, "Reserves for Credit Losses." |
RESERVES FOR CREDIT LOSSES, CQR
RESERVES FOR CREDIT LOSSES, CQR (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Mar. 31, 2018 |
Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | ||
Total past due | $ 513 | $ 483 |
Current | 115 | 395 |
Unbilled minimum lease payments | 77,197 | 65,065 |
Total minimum lease payments | 77,825 | 65,943 |
Unearned income | (7,456) | (6,492) |
Non-recourse notes payable | (44,996) | (33,219) |
Net credit exposure | 25,373 | 26,232 |
Notes Receivable [Member] | ||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | ||
Total past due | 3,758 | 1,660 |
Current | 1,981 | 3,656 |
Unbilled minimum lease payments | 66,846 | 57,676 |
Total minimum lease payments | 72,585 | 62,992 |
Non-recourse notes payable | (51,667) | (40,769) |
Net credit exposure | $ 20,918 | 22,223 |
High CQR [Member] | Minimum [Member] | ||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | ||
Losses on net credit exposure | 0.00% | |
High CQR [Member] | Maximum [Member] | ||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | ||
Losses on net credit exposure | 5.00% | |
High CQR [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | ||
Total past due | $ 277 | 226 |
Current | 73 | 224 |
Unbilled minimum lease payments | 37,216 | 33,779 |
Total minimum lease payments | 37,566 | 34,229 |
Unearned income | (4,331) | (3,743) |
Non-recourse notes payable | (20,572) | (17,207) |
Net credit exposure | 12,663 | 13,279 |
High CQR [Member] | Notes Receivable [Member] | ||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | ||
Total past due | 3,212 | 1,125 |
Current | 1,352 | 3,262 |
Unbilled minimum lease payments | 53,978 | 40,896 |
Total minimum lease payments | 58,542 | 45,283 |
Non-recourse notes payable | (43,655) | (30,345) |
Net credit exposure | $ 14,887 | 14,938 |
Average CQR [Member] | Minimum [Member] | ||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | ||
Losses on net credit exposure | 2.00% | |
Average CQR [Member] | Maximum [Member] | ||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | ||
Losses on net credit exposure | 15.00% | |
Average CQR [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | ||
Total past due | $ 236 | 257 |
Current | 42 | 171 |
Unbilled minimum lease payments | 39,981 | 31,286 |
Total minimum lease payments | 40,259 | 31,714 |
Unearned income | (3,125) | (2,749) |
Non-recourse notes payable | (24,424) | (16,012) |
Net credit exposure | 12,710 | 12,953 |
Average CQR [Member] | Notes Receivable [Member] | ||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | ||
Total past due | 484 | 473 |
Current | 629 | 394 |
Unbilled minimum lease payments | 12,868 | 16,780 |
Total minimum lease payments | 13,981 | 17,647 |
Non-recourse notes payable | (8,012) | (10,424) |
Net credit exposure | $ 5,969 | 7,223 |
Low CQR [Member] | Minimum [Member] | ||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | ||
Losses on net credit exposure | 15.00% | |
Low CQR [Member] | Maximum [Member] | ||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | ||
Losses on net credit exposure | 100.00% | |
Low CQR [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | ||
Total past due | $ 0 | 0 |
Current | 0 | 0 |
Unbilled minimum lease payments | 0 | 0 |
Total minimum lease payments | 0 | 0 |
Unearned income | 0 | 0 |
Non-recourse notes payable | 0 | 0 |
Net credit exposure | 0 | 0 |
Low CQR [Member] | Notes Receivable [Member] | ||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | ||
Total past due | 62 | 62 |
Current | 0 | 0 |
Unbilled minimum lease payments | 0 | 0 |
Total minimum lease payments | 62 | 62 |
Non-recourse notes payable | 0 | 0 |
Net credit exposure | 62 | 62 |
31 to 60 Days Past Due [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | ||
Total past due | 330 | 252 |
31 to 60 Days Past Due [Member] | Notes Receivable [Member] | ||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | ||
Total past due | 2,875 | 217 |
31 to 60 Days Past Due [Member] | High CQR [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | ||
Total past due | 201 | 143 |
31 to 60 Days Past Due [Member] | High CQR [Member] | Notes Receivable [Member] | ||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | ||
Total past due | 2,422 | 175 |
31 to 60 Days Past Due [Member] | Average CQR [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | ||
Total past due | 129 | 109 |
31 to 60 Days Past Due [Member] | Average CQR [Member] | Notes Receivable [Member] | ||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | ||
Total past due | 453 | 42 |
31 to 60 Days Past Due [Member] | Low CQR [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | ||
Total past due | 0 | 0 |
31 to 60 Days Past Due [Member] | Low CQR [Member] | Notes Receivable [Member] | ||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | ||
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] | ||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | ||
Total past due | 96 | 71 |
61 to 90 Days Past Due [Member] | Notes Receivable [Member] | ||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | ||
Total past due | 58 | 936 |
61 to 90 Days Past Due [Member] | High CQR [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | ||
Total past due | 39 | 40 |
61 to 90 Days Past Due [Member] | High CQR [Member] | Notes Receivable [Member] | ||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | ||
Total past due | 45 | 527 |
61 to 90 Days Past Due [Member] | Average CQR [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | ||
Total past due | 57 | 31 |
61 to 90 Days Past Due [Member] | Average CQR [Member] | Notes Receivable [Member] | ||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | ||
Total past due | 13 | 409 |
61 to 90 Days Past Due [Member] | Low CQR [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | ||
Total past due | 0 | 0 |
61 to 90 Days Past Due [Member] | Low CQR [Member] | Notes Receivable [Member] | ||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | ||
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] | ||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | ||
Total past due | 87 | 160 |
Greater than 90 Days Past Due [Member] | Notes Receivable [Member] | ||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | ||
Total past due | 825 | 507 |
Greater than 90 Days Past Due [Member] | High CQR [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | ||
Total past due | 37 | 43 |
Greater than 90 Days Past Due [Member] | High CQR [Member] | Notes Receivable [Member] | ||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | ||
Total past due | 745 | 423 |
Greater than 90 Days Past Due [Member] | Average CQR [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | ||
Total past due | 50 | 117 |
Greater than 90 Days Past Due [Member] | Average CQR [Member] | Notes Receivable [Member] | ||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | ||
Total past due | 18 | 22 |
Greater than 90 Days Past Due [Member] | Low CQR [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | ||
Total past due | 0 | 0 |
Greater than 90 Days Past Due [Member] | Low CQR [Member] | Notes Receivable [Member] | ||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR [Abstract] | ||
Total past due | $ 62 | $ 62 |
PROPERTY, EQUIPMENT, OTHER AS_3
PROPERTY, EQUIPMENT, OTHER ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Mar. 31, 2018 |
Other current assets [Abstract] | ||
Deposits & funds held in escrow | $ 4,203 | $ 16,202 |
Prepaid assets | 5,941 | 7,031 |
Other | 572 | 392 |
Total other current assets | 10,716 | 23,625 |
Property, equipment and other assets [Abstract] | ||
Property and equipment, net | 6,936 | 7,510 |
Deferred costs | 9,524 | 9,302 |
Other | 1,577 | 2,331 |
Total other assets - long term | 18,037 | 19,143 |
Other current liabilities [Abstract] | ||
Accrued expenses | 7,081 | 8,339 |
Accrued income taxes payable | 283 | 175 |
Contingent consideration - current | 5,888 | 5,806 |
Other | 7,446 | 19,050 |
Total other current liabilities | 20,698 | 33,370 |
Other liabilities [Abstract] | ||
Deferred revenue | 13,626 | 12,910 |
Contingent consideration long-term | 7,608 | 7,707 |
Other | 0 | 450 |
Total other liabilities - long term | $ 21,234 | $ 21,067 |
NOTES PAYABLE AND CREDIT FACI_3
NOTES PAYABLE AND CREDIT FACILITY (Details) $ in Thousands | 6 Months Ended | ||
Sep. 30, 2018USD ($)Component | Mar. 31, 2018USD ($) | Jul. 26, 2017USD ($) | |
Recourse Notes Payable [Abstract] | |||
Current | $ 0 | $ 1,343 | |
Non-recourse Notes Payable Secured by Financing Receivables and Investment in Operating Leases [Abstract] | |||
Current | 52,630 | 40,863 | |
Long-term | 12,656 | 10,072 | |
Guarantor obligations for credit facility, maximum | 300 | ||
Recourse Note Payable [Member] | |||
Recourse Notes Payable [Abstract] | |||
Current | 0 | $ 1,343 | |
Non-recourse Notes Payable Secured by Financing Receivables and Investment in Operating Leases [Abstract] | |||
Interest rate of notes | 4.11% | ||
Weighted average interest rate of notes | 4.11% | ||
Non-Recourse Note Payable [Member] | |||
Non-recourse Notes Payable Secured by Financing Receivables and Investment in Operating Leases [Abstract] | |||
Current | 52,630 | $ 40,863 | |
Long-term | 12,656 | 10,072 | |
Total non-recourse notes payable | $ 65,286 | $ 50,935 | |
Weighted average interest rate of notes | 4.31% | 4.04% | |
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 | 3.04% | 2.04% | |
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% | 8.45% | |
WFCDF [Member] | |||
Non-recourse Notes Payable Secured by Financing Receivables and Investment in Operating Leases [Abstract] | |||
Number of components under credit facility | Component | 2 | ||
Maximum borrowing capacity under credit facility | $ 325,000 | $ 250,000 | |
Maturity date of credit facility | Oct. 31, 2018 | ||
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] | Floor Plan Component [Member] | |||
Non-recourse Notes Payable Secured by Financing Receivables and Investment in Operating Leases [Abstract] | |||
Amount outstanding under credit facility | 120,800 | $ 112,100 | |
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 borrowing capacity under credit facility | $ 30,000 | ||
WFCDF [Member] | Account Receivable Component [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% |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share, Basic and Diluted [Abstract] | ||||
Net earnings attributable to common shareholders - basic and diluted | $ 18,003 | $ 17,221 | $ 33,276 | $ 30,644 |
Basic and diluted common shares outstanding [Abstract] | ||||
Weighted average common shares outstanding - basic (in shares) | 13,494 | 13,879 | 13,464 | 13,843 |
Effect of dilutive shares (in shares) | 92 | 129 | 133 | 178 |
Weighted average shares common outstanding - diluted (in shares) | 13,586 | 14,008 | 13,597 | 14,021 |
Earnings per common share - basic (in dollars per share) | $ 1.33 | $ 1.24 | $ 2.47 | $ 2.21 |
Earnings per common share - diluted (in dollars per share) | $ 1.33 | $ 1.23 | $ 2.45 | $ 2.19 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Apr. 26, 2018 | Aug. 15, 2017 | |
STOCKHOLDERS' EQUITY [Abstract] | ||||
Authorized number of shares under stock repurchase program (in shares) | 500,000 | 500,000 | ||
Common stock repurchased during the period (in shares) | 70,445 | 0 | ||
Common stock repurchased during the period | $ 5,500 | |||
Shares repurchased to satisfy tax withholding obligation (in shares) | 40,092 | 57,725 | ||
Value of shares repurchased to satisfy tax withholding obligation | $ 3,900 | $ 4,400 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Additional Disclosures [Abstract] | ||||
Vested share-based awards withheld to satisfy income tax obligations (in shares) | 40,092 | 57,725 | ||
Vested share-based awards withheld to satisfy income tax obligations | $ 3,900 | $ 4,400 | ||
Compensation Expense [Abstract] | ||||
Share-based compensation expense | $ 1,900 | $ 1,500 | 3,561 | 3,180 |
401(k) Profit Sharing Plan [Abstract] | ||||
Contribution to profit sharing plan | $ 500 | $ 500 | $ 1,000 | $ 1,100 |
Restricted Stock [Member] | ||||
Number of Shares [Roll Forward] | ||||
Nonvested at beginning of period (in shares) | 282,235 | |||
Granted (in shares) | 78,169 | |||
Vested (in shares) | (133,106) | |||
Forfeited (in shares) | (914) | |||
Nonvested at end of period (in shares) | 226,384 | 226,384 | ||
Weighted Average Grant-date Fair Value [Roll Forward] | ||||
Nonvested at beginning of period (in dollars per share) | $ 51.69 | |||
Granted (in dollars per share) | 94.31 | |||
Vested (in dollars per share) | 49.15 | |||
Forfeited (in dollars per share) | 58.49 | |||
Nonvested at end of period (in dollars per share) | $ 67.87 | $ 67.87 | ||
Compensation Expense [Abstract] | ||||
Unrecognized compensation expense | $ 13,200 | $ 13,200 | ||
Unrecognized compensation expense, period for recognition | 33 months | |||
2017 Director LTIP [Member] | Restricted Stock [Member] | ||||
Number of Shares [Roll Forward] | ||||
Granted (in shares) | 8,322 | 5,112 | ||
2012 Employee LTIP [Member] | Restricted Stock [Member] | ||||
Number of Shares [Roll Forward] | ||||
Granted (in shares) | 69,847 | 66,530 | ||
Additional Disclosures [Abstract] | ||||
Vested share-based awards withheld to satisfy income tax obligations (in shares) | 40,092 | |||
Vested share-based awards withheld to satisfy income tax obligations | $ 3,900 | |||
2008 Director LTIP [Member] | Restricted Stock [Member] | ||||
Number of Shares [Roll Forward] | ||||
Granted (in shares) | 535 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
INCOME TAXES [Abstract] | ||
Additions or reductions to gross unrecognized tax benefits | $ 0 | $ 0 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Mar. 31, 2018 | |
Assets [Abstract] | |||||
Money market funds | $ 25,116 | $ 25,116 | $ 60,385 | ||
Liabilities [Abstract] | |||||
Contingent consideration | 13,496 | 13,496 | 13,513 | ||
Adjustment to fair value of contingent consideration | 700 | $ 10,300 | 1,100 | $ 12,400 | |
Payments of contingent consideration | 1,100 | 1,100 | $ 300 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||||
Assets [Abstract] | |||||
Money market funds | 25,116 | 25,116 | 60,385 | ||
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 | $ 13,496 | $ 13,496 | $ 13,513 |
SEGMENT REPORTING, Reportable S
SEGMENT REPORTING, Reportable Segment Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)Segment | Sep. 30, 2017USD ($) | Mar. 31, 2018USD ($) | |
SEGMENT REPORTING [Abstract] | |||||
Number of business segments | Segment | 2 | ||||
Reportable Segment Information [Abstract] | |||||
Contracts with customers | $ 330,742 | $ 357,759 | $ 672,797 | $ 719,935 | |
Financing and other | 14,301 | 13,604 | 28,778 | 24,784 | |
Net sales | 345,043 | 371,363 | 701,575 | 744,719 | |
Cost of sales | 259,543 | 283,792 | 535,372 | 579,555 | |
Gross profit | 85,500 | 87,571 | 166,203 | 165,164 | |
Selling, general, and administrative | 57,705 | 56,340 | 114,671 | 111,004 | |
Depreciation and amortization | 2,741 | 2,129 | 5,531 | 4,192 | |
Interest and financing costs | 484 | 274 | 960 | 633 | |
Operating expenses | 60,930 | 58,743 | 121,162 | 115,829 | |
Operating income | 24,570 | 28,828 | 45,041 | 49,335 | |
Other income (expense) | 322 | (141) | 419 | 130 | |
Earnings before tax | 24,892 | 28,687 | 45,460 | 49,465 | |
Selected Financial Data - Statement of Cash Flow [Abstract] | |||||
Depreciation and amortization | 4,367 | 3,520 | 8,867 | 6,745 | |
Purchases of property, equipment and operating lease equipment | 4,821 | 1,565 | 6,451 | 3,436 | |
Selected Financial Data - Balance Sheet [Abstract] | |||||
Total assets | 775,196 | 734,287 | 775,196 | 734,287 | $ 755,471 |
Technology Segment [Member] | |||||
Reportable Segment Information [Abstract] | |||||
Contracts with customers | 329,682 | 352,843 | 671,141 | 712,204 | |
Financing and other | 5,086 | 5,835 | 10,491 | 9,373 | |
Net sales | 334,768 | 358,678 | 681,632 | 721,577 | |
Operating Segments [Member] | Technology Segment [Member] | |||||
Reportable Segment Information [Abstract] | |||||
Contracts with customers | 329,682 | 352,843 | 671,141 | 712,204 | |
Financing and other | 5,086 | 5,835 | 10,491 | 9,373 | |
Net sales | 334,768 | 358,678 | 681,632 | 721,577 | |
Cost of sales | 257,813 | 281,829 | 531,894 | 575,095 | |
Gross profit | 76,955 | 76,849 | 149,738 | 146,482 | |
Selling, general, and administrative | 55,138 | 53,503 | 109,592 | 105,004 | |
Depreciation and amortization | 2,740 | 2,128 | 5,529 | 4,190 | |
Interest and financing costs | 0 | 0 | 0 | 0 | |
Operating expenses | 57,878 | 55,631 | 115,121 | 109,194 | |
Operating income | 19,077 | 21,218 | 34,617 | 37,288 | |
Selected Financial Data - Statement of Cash Flow [Abstract] | |||||
Depreciation and amortization | 2,970 | 2,161 | 5,985 | 4,256 | |
Purchases of property, equipment and operating lease equipment | 1,796 | 955 | 2,976 | 2,046 | |
Selected Financial Data - Balance Sheet [Abstract] | |||||
Total assets | 565,771 | 563,646 | 565,771 | 563,646 | |
Operating Segments [Member] | Financing Segment [Member] | |||||
Reportable Segment Information [Abstract] | |||||
Contracts with customers | 1,060 | 4,916 | 1,656 | 7,731 | |
Financing and other | 9,215 | 7,769 | 18,287 | 15,411 | |
Net sales | 10,275 | 12,685 | 19,943 | 23,142 | |
Cost of sales | 1,730 | 1,963 | 3,478 | 4,460 | |
Gross profit | 8,545 | 10,722 | 16,465 | 18,682 | |
Selling, general, and administrative | 2,567 | 2,837 | 5,079 | 6,000 | |
Depreciation and amortization | 1 | 1 | 2 | 2 | |
Interest and financing costs | 484 | 274 | 960 | 633 | |
Operating expenses | 3,052 | 3,112 | 6,041 | 6,635 | |
Operating income | 5,493 | 7,610 | 10,424 | 12,047 | |
Selected Financial Data - Statement of Cash Flow [Abstract] | |||||
Depreciation and amortization | 1,397 | 1,359 | 2,882 | 2,489 | |
Purchases of property, equipment and operating lease equipment | 3,025 | 610 | 3,475 | 1,390 | |
Selected Financial Data - Balance Sheet [Abstract] | |||||
Total assets | $ 209,425 | $ 170,641 | $ 209,425 | $ 170,641 |
SEGMENT REPORTING, Technology S
SEGMENT REPORTING, Technology Segment Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Abstract] | ||||
Net sales | $ 345,043 | $ 371,363 | $ 701,575 | $ 744,719 |
Financing and other | (14,301) | (13,604) | (28,778) | (24,784) |
Revenue from contracts with customers | 330,742 | 357,759 | 672,797 | 719,935 |
Technology Segment [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 334,768 | 358,678 | 681,632 | 721,577 |
Financing and other | (5,086) | (5,835) | (10,491) | (9,373) |
Revenue from contracts with customers | 329,682 | 352,843 | 671,141 | 712,204 |
Technology Segment [Member] | Technology [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 75,417 | 91,401 | 158,234 | 180,755 |
Technology Segment [Member] | Telecom, Media & Entertainment [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 39,412 | 49,508 | 86,280 | 106,913 |
Technology Segment [Member] | Financial Services [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 47,412 | 52,507 | 92,638 | 90,798 |
Technology Segment [Member] | SLED [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 61,391 | 66,493 | 129,596 | 143,656 |
Technology Segment [Member] | Health Care [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 51,081 | 44,372 | 97,531 | 90,857 |
Technology Segment [Member] | All others [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 60,055 | 54,397 | 117,353 | 108,598 |
Technology Segment [Member] | Cisco Systems [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 152,063 | 165,690 | 291,300 | 339,035 |
Technology Segment [Member] | NetApp [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 9,477 | 10,433 | 25,039 | 25,887 |
Technology Segment [Member] | HP Inc. & HPE [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 16,658 | 28,377 | 36,977 | 56,648 |
Technology Segment [Member] | Dell / EMC [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 19,895 | 17,485 | 32,398 | 30,898 |
Technology Segment [Member] | Arista Networks [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 10,673 | 7,153 | 30,471 | 24,527 |
Technology Segment [Member] | Juniper [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | 11,262 | 14,240 | 21,660 | 23,576 |
Technology Segment [Member] | All others [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Net sales | $ 114,740 | $ 115,300 | $ 243,787 | $ 221,006 |
BUSINESS COMBINATIONS (Details)
BUSINESS COMBINATIONS (Details) - USD ($) $ in Thousands | Sep. 15, 2017 | May 17, 2017 | Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Mar. 31, 2017 |
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed [Abstract] | ||||||
Goodwill | $ 76,445 | $ 76,624 | $ 76,470 | $ 48,397 | ||
Fair value of contingent consideration | $ 7,608 | $ 7,707 | ||||
Integrated Data Storage LLC [Member] | ||||||
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed [Abstract] | ||||||
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 | |||||
Cash portion of the acquisition | 29,800 | |||||
Receivables as a working capital adjustment | 1,400 | |||||
Fair value of contingent consideration | 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 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 |