Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | May 23, 2017 | Sep. 30, 2016 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | PETMED EXPRESS INC | ||
Entity Central Index Key | 1,040,130 | ||
Trading Symbol | pets | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --03-31 | ||
Entity Well-Known Seasoned Issuer | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 20,525,524 | ||
Entity Public Float | $ 396.4 | ||
Document Type | 10-K | ||
Document Period End Date | Mar. 31, 2017 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 58,730 | $ 37,639 |
Accounts receivable, less allowance for doubtful accounts of $27 and $13, respectively | 1,808 | 1,724 |
Inventories - finished goods | 20,228 | 25,586 |
Prepaid expenses and other current assets | 1,019 | 2,435 |
Prepaid income taxes | 243 | |
Total current assets | 81,785 | 67,627 |
Noncurrent assets: | ||
Property and equipment, net | 30,164 | 20,929 |
Intangible assets | 860 | 860 |
Deferred tax assets | 863 | |
Total noncurrent assets | 31,024 | 22,652 |
Total assets | 112,809 | 90,279 |
Current liabilities: | ||
Accounts payable | 15,221 | 5,004 |
Accrued expenses and other current liabilities | 2,475 | 2,080 |
Income taxes payable | 659 | |
Total liabilities | 18,355 | 7,084 |
Deferred tax liabilities | 1,088 | |
Total liabilities | 19,443 | 7,084 |
Commitments and contingencies | ||
Shareholders' equity: | ||
Preferred stock, $.001 par value, 5,000 shares authorized; 3 convertible shares issued and outstanding with a liquidation preference of $4 per share | 9 | 9 |
Common stock, $.001 par value, 40,000 shares authorized; 20,526 and 20,447 shares issued and outstanding, respectively | 21 | 20 |
Additional paid-in capital | 6,806 | 4,871 |
Retained earnings | 86,530 | 78,295 |
Total shareholders' equity | 93,366 | 83,195 |
Total liabilities and shareholders' equity | $ 112,809 | $ 90,279 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 |
Allowance for doubtful accounts (in dollars) | $ 27 | $ 13 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, liquidation preference (in dollars per share) | $ 4 | $ 4 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 20,526,000 | 20,447,000 |
Common stock, shares outstanding | 20,526,000 | 20,447,000 |
Convertible Preferred Stock | ||
Preferred stock, shares issued | 3,000 | 3,000 |
Preferred stock, shares outstanding | 3,000 | 3,000 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Income Statement [Abstract] | |||
Sales | $ 249,176 | $ 234,684 | $ 229,395 |
Cost of sales | 169,862 | 158,388 | 153,125 |
Gross profit | 79,314 | 76,296 | 76,270 |
Operating expenses: | |||
General and administrative | 22,799 | 21,301 | 21,101 |
Advertising | 17,663 | 21,837 | 25,182 |
Discontinued project costs | 1,714 | ||
Depreciation | 1,369 | 770 | 660 |
Total operating expenses | 41,831 | 43,908 | 48,657 |
Income from operations | 37,483 | 32,388 | 27,613 |
Other income (expense): | |||
Interest income, net | 141 | 190 | 184 |
Realized loss on sale of short term investments | (74) | ||
Other, net | 300 | 63 | 1 |
Total other income | 441 | 179 | 185 |
Income before provision for income taxes | 37,924 | 32,567 | 27,798 |
Provision for income taxes | 14,105 | 12,000 | 10,345 |
Net income | 23,819 | 20,567 | 17,453 |
Net change in unrealized gain (loss) on short term investments | 54 | (17) | |
Comprehensive income | $ 23,819 | $ 20,621 | $ 17,436 |
Net income per common share: | |||
Basic (in dollars per share) | $ 1.18 | $ 1.02 | $ 0.87 |
Diluted (in dollars per share) | $ 1.17 | $ 1.02 | $ 0.87 |
Weighted average number of common shares outstanding: | |||
Basic (in shares) | 20,232 | 20,124 | 20,015 |
Diluted (in shares) | 20,378 | 20,254 | 20,136 |
Cash dividends declared per common share (in dollars per shares) | $ 0.76 | $ 0.72 | $ 0.68 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | ConvertiblePreferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Other Comprehensive Gain (Loss) | Total |
Balance at Mar. 31, 2014 | $ 9 | $ 20 | $ 1,578 | $ 68,647 | $ (37) | $ 70,217 |
Balance (in shares) at Mar. 31, 2014 | 3 | 20,190 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of restricted stock, net | ||||||
Issuance of restricted stock, net (in shares) | 72 | |||||
Share based compensation | 1,481 | 1,481 | ||||
Dividends declared | (13,757) | (13,757) | ||||
Excess tax benefit related to stock compensation | 58 | 58 | ||||
Net income | 17,453 | 17,453 | 17,453 | |||
Other comprehensive gain (loss): | ||||||
Net Change in unrealized loss on short term investments | (17) | (17) | ||||
Total comprehensive income | 17,436 | 17,436 | ||||
Balance at Mar. 31, 2015 | $ 9 | $ 20 | 3,117 | 72,343 | (54) | 75,435 |
Balance (in shares) at Mar. 31, 2015 | 3 | 20,262 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of restricted stock, net | ||||||
Issuance of restricted stock, net (in shares) | 185 | |||||
Share based compensation | 1,612 | 1,612 | ||||
Dividends declared | (14,615) | (14,615) | ||||
Excess tax benefit related to stock compensation | 142 | 142 | ||||
Net income | 20,567 | 20,567 | 20,567 | |||
Other comprehensive gain (loss): | ||||||
Net Change in unrealized loss on short term investments | 54 | 54 | ||||
Total comprehensive income | 20,621 | 20,621 | ||||
Balance at Mar. 31, 2016 | $ 9 | $ 20 | 4,871 | 78,295 | 83,195 | |
Balance (in shares) at Mar. 31, 2016 | 3 | 20,447 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of restricted stock, net | $ 1 | 1 | ||||
Issuance of restricted stock, net (in shares) | 79 | |||||
Share based compensation | 1,935 | 1,935 | ||||
Dividends declared | (15,584) | (15,584) | ||||
Net income | 23,819 | $ 23,819 | 23,819 | |||
Other comprehensive gain (loss): | ||||||
Total comprehensive income | 23,819 | |||||
Balance at Mar. 31, 2017 | $ 9 | $ 21 | $ 6,806 | $ 86,530 | $ 93,366 | |
Balance (in shares) at Mar. 31, 2017 | 3 | 20,526 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | |||
Net income | $ 23,819 | $ 20,567 | $ 17,453 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 1,369 | 770 | 660 |
Share based compensation | 1,935 | 1,612 | 1,481 |
Discontinued project costs | 1,714 | ||
Deferred income taxes | 1,951 | (23) | 157 |
Bad debt expense | 421 | 260 | 94 |
(Increase) decrease in operating assets and increase (decrease) in liabilities: | |||
Accounts receivable | (505) | (53) | (264) |
Inventories - finished goods | 5,358 | (518) | 10,659 |
Prepaid income taxes | 243 | (243) | 54 |
Prepaid expenses and other current assets | 1,416 | (1,055) | 662 |
Accounts payable | 10,217 | (149) | (616) |
Accrued expenses and other current liabilities | 321 | (65) | (61) |
Income taxes payable | 659 | (50) | 50 |
Net cash provided by operating activities | 47,204 | 21,053 | 32,043 |
Cash flows from investing activities: | |||
Proceeds from sale of short term investments | 15,591 | ||
Net change in investments | 54 | (68) | |
Purchases of property and equipment | (10,604) | (20,130) | (918) |
Net cash used in investing activities | (10,604) | (4,485) | (986) |
Cash flows from financing activities: | |||
Dividends paid | (15,509) | (14,684) | (13,807) |
Excess tax benefit related to stock compensation | 142 | 58 | |
Net cash used in financing activities | (15,509) | (14,542) | (13,749) |
Net increase in cash and cash equivalents | 21,091 | 2,026 | 17,308 |
Cash and cash equivalents, at beginning of year | 37,639 | 35,613 | 18,305 |
Cash and cash equivalents, at end of year | 58,730 | 37,639 | 35,613 |
Supplemental disclosure of cash flow information: | |||
Cash paid for income taxes | 11,373 | 12,173 | 10,026 |
Dividends payable in accrued expenses | $ 217 | $ 143 | $ 212 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (1) Summary of Significant Accounting Policies Organization PetMed Express, Inc. and subsidiaries, d/b/a 1-800-PetMeds (the “Company”), is a leading nationwide pet pharmacy. The Company markets prescription and non-prescription pet medications, health products, and supplies for dogs and cats, direct to the consumer. The Company markets its products through national advertising campaigns, which aim to increase the recognition of the “1-800-PetMeds” brand name and “PetMeds” family of trademarks, increase traffic on its website at www.1800petmeds.com Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany transactions have been eliminated in consolidation. Revenue Recognition The Company generates revenue by selling pet medication products and pet supplies mainly to retail consumers. The Company’s policy is to recognize revenue from product sales upon shipment, when the rights of ownership and risk of loss have passed to the customer. Outbound shipping and handling fees are included in sales and are billed upon shipment. Shipping expenses are included in cost of sales. The majority of the Company’s sales are paid by credit cards and the Company usually receives the cash settlement in two to three banking days. Credit card sales minimize the accounts receivable balances relative to sales. The Company maintains an allowance for doubtful accounts for losses that the Company estimates will arise from the customers’ inability to make required payments, arising from either credit card charge-backs or insufficient funds checks. The Company determines its estimates of the uncollectibility of accounts receivable by analyzing historical bad debts and current economic trends. At March 31, 2017 and 2016, the allowance for doubtful accounts was approximately $27,000 and $13,000, respectively. Cash and Cash Equivalents The Company considers all highly liquid investments with maturity of three months or less when purchased to be cash equivalents. Cash and cash equivalents at March 31, 2017 and 2016 consisted of the Company’s cash accounts and money market accounts with a maturity of three months or less. The carrying amount of cash equivalents approximates fair value. The Company maintains its cash in bank deposit accounts which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Inventories Inventories consist of prescription and non-prescription pet medications and pet supplies that are available for sale and are priced at the lower of cost or net realizable value using a weighted average cost method. The Company writes down its inventory for estimated obsolescence. The inventory reserve was approximately $51,000 and $64,000 at March 31, 2017 and 2016, respectively. Property and Equipment Property and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of the assets. Our building is depreciated over a period of thirty years. The furniture, fixtures, equipment, and computer software are depreciated over periods ranging from three to seven years. Leasehold improvements and assets under capital lease agreements are amortized over the shorter of the underlying lease agreement or the useful life of the asset. On December 22, 2015, the Company, by and through a wholly-owned subsidiary entered into an agreement of purchase and sale with an unaffiliated privately held Delaware corporation for the purchase of real property located in Palm Beach County, Florida, and improvements thereon (collectively referred to herein as the “Property”), the assignment and assumption of all leases and service agreements affecting the property, and certain tangible and intangible personal property related to the property, for a purchase price of $18.5 million, plus closing costs. The transaction closed on January 19, 2016. The Property consists of approximately 634,000 square feet of land or 14.6 acres with two building complexes totaling approximately 185,000 square feet, with additional land for future use. The first building complex consists of approximately 125,000 square feet consisting of both office and warehouse. The second building complex consists of approximately 60,000 square feet consisting of both office and warehouse space. The Company occupies approximately 97,000 square feet of the first building for its principal offices and distribution center. At March 31, 2017, 48% of the property was leased to two tenants with a remaining weighted average lease term of 3.0 years. Long-lived Assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Recoverability of assets is measured by a comparison of the carrying amount of the asset to the undiscounted cash flows expected to be generated from the asset. Intangible Assets The intangible asset consists of a toll-free telephone number and an internet domain name. In accordance with the ASC Topic 350 (“ Goodwill and Other Intangible Assets” Fair Value of Financial Instruments The carrying amounts of the Company's cash and cash equivalents, accounts receivable, and accounts payable approximate fair value due to the short-term nature of these instruments. Advertising The Company's advertising expenses consist primarily of online marketing and direct mail/print advertising. Internet costs are expensed in the month incurred and direct mail/print costs are expensed when the related catalogs, brochures, and postcards are produced, distributed, or superseded. Business Concentrations The Company purchases its products from a variety of sources, including certain manufacturers, domestic distributors, and wholesalers. We have multiple suppliers for each of our products to obtain the lowest cost. There were four suppliers from whom we purchased approximately 50% of all products in fiscal 2017 and fiscal 2016. Accounting for Share Based Compensation The Company records compensation expense associated with restricted stock in accordance with ASC Topic 718 ( “Share Based Payment” Comprehensive Income The Company applies ASC Topic 220 (“ Reporting Comprehensive Income” The following is a summary of our comprehensive income (in thousands): March 31, 2017 2016 2015 Net income $ 23,819 $ 20,567 $ 17,453 Net change in unrealized gain (loss) on short term investments - 54 (17 ) Comprehensive income $ 23,819 $ 20,621 $ 17,436 Income Taxes The Company accounts for income taxes under the provisions of ASC Topic 740 (“ Accounting for Income Taxes Reclassifications Certain reclassifications have been made to the prior years’ consolidated financial statements to conform to the fiscal 2017 presentation. These reclassifications had no impact on net income, shareholders’ equity or cash flows as previously reported. Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers.” This ASU clarifies the accounting for revenue arising from contracts with customers and specifies the disclosures that an entity should include in its financial statements. The standard is effective for annual reporting periods beginning after December 15, 2017. During 2016, the FASB issued certain amendments to the standard relating to the principal versus agent guidance, accounting for licenses of intellectual property and identifying performance obligations as well as the guidance on transition, collectability, noncash consideration and the presentation of sales and other similar taxes. The effective date and transition requirements for these amendments are the same as those of the original ASU. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (modified retrospective method). The Company currently anticipates adopting the standard using the modified retrospective method. The Company has performed a high level analysis of its revenue streams and expects to complete its evaluations in FY 2018, as well as an evaluation of the impact on its business processes, controls and systems. The Company does not expect this standard to affect the Company materially, other than increased disclosures. We plan to complete our assessment of the impact of adoption during fiscal 2018 and finalize the adoption of the new revenue standard by the end of fiscal 2019. In February 2016, the FASB issued guidance on leases which supersedes the current lease guidance. The core principle requires lessees to recognize the assets and liabilities that arise from nearly all leases in the statement of financial position. Accounting applied by lessors will remain largely consistent with previous guidance, additional changes set to align lessor accounting with the revised lessee model and the FASB’s revenue recognition guidance. The amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the impact of this standard on its consolidated financial statements. In March 2016, the Financial Accounting Standards Board (“FASB”) released Accounting Standards Update on Stock Compensation Improvements to Employee Share-Based Payment Accounting (Topic 718) ( ASU 2016-09 ASU 2016-09 requires entities to recognize the income tax effects of share-based awards in the income statement when the awards vest or are settled. The new standard is effective for annual and interim periods beginning January 1, 2017. We early adopted this standard as of March 31, 2017. As a result, during the fourth quarter we reclassified the year-to-date fiscal 2017 excess tax benefit of $156,000 from paid-in capital (statements of equity) into the income tax provision line on the statements of comprehensive income. Further, we reclassified the excess tax benefits from the stock based compensation from financing activities into operating activities in the statement of cash flows for the year ended March 31, 2017, as required by ASU 2016-09 (adopted prospectively). The adoption did not impact the existing classification of the awards. The Company does not believe that any other recently issued, but not yet effective, accounting standards, if currently adopted, will have a material effect on the Company’s consolidated financial position, results of operations, or cash flows. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | (2) Property and Equipment Major classifications of property and equipment consist of the following (in thousands): March 31, 2017 2016 Building $ 14,988 $ 14,988 Land 3,700 3,700 Building improvements 2,592 - Leasehold improvements - 1,123 Computer software 5,068 4,812 Furniture, fixtures and equipment 7,863 4,703 34,211 29,326 Less: accumulated depreciation (4,047 ) (8,397 ) Property and equipment, net $ 30,164 $ 20,929 |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Mar. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | (3) Valuation and Qualifying Accounts Activity in the Company's valuation and qualifying accounts consists of the following (in thousands): Year Ended March 31, 2017 2016 2015 Allowance for doubtful accounts: Balance at beginning of period $ 13 $ 8 $ 7 Provision for doubtful accounts 421 260 94 Write-off of uncollectible accounts receivable (407 ) (255 ) (93 ) Balance at end of year $ 27 $ 13 $ 8 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Mar. 31, 2017 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | (4) Accrued Expenses and Other Current Liabilities Major classifications of accrued expenses and other current liabilities consist of the following (in thousands): March 31, 2017 2016 Accrued sales tax $ 450 $ 459 Accrued credit card fees 364 335 Accrued salaries and benefits 639 482 Accrued professional expenses 245 255 Accrued sales return allowance 180 172 Accrued dividends payable 217 143 Accrued real estate taxes 236 65 Other accrued liabilities 144 169 Accrued expenses and other current liabilities $ 2,475 $ 2,080 |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (5) Income Taxes Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities are as follows (in thousands): March 31, 2017 2016 Deferred tax assets: Accrued expenses $ 474 $ 537 Deferred stock compensation 334 302 Bad debt and inventory reserves 29 29 Total deferred tax assets 837 868 Deferred tax liabilities: Property and equipment 1,925 5 Total net deferred taxes $ (1,088 ) $ 863 At March 31, 2017, the Company had no federal net operating loss carryforwards. The components of the income tax provision consist of the following (in thousands): Year Ended March 31, 2017 2016 2015 Current taxes Federal $ 11,095 $ 10,982 $ 9,303 State 1,059 1,041 885 Total current taxes 12,154 12,023 10,188 Deferred taxes Federal 1,781 (21 ) 143 State 170 (2 ) 14 Total deferred taxes 1,951 (23 ) 157 Total provision for income taxes $ 14,105 $ 12,000 $ 10,345 The reconciliation of income tax provision computed at the U.S. federal statutory tax rates to income tax expense is as follows (in thousands): Year Ended March 31, 2017 2016 2015 Income taxes at U.S. statutory rates $ 13,274 $ 11,399 $ 9,729 State income taxes, net of federal tax benefit 858 675 589 Permanent differences 1 (23 ) (29 ) Other (28 ) (51 ) 56 Total provision for income taxes $ 14,105 $ 12,000 $ 10,345 |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | (6) Net Income Per Share In accordance with the provisions of ASC Topic 260 (“ Earnings Per Share The following is a reconciliation of the numerators and denominators of the basic and diluted net income per share computations for the periods presented (in thousands, except for per share amounts): Year Ended March 31, 2017 2016 2015 Net income (numerator): Net income $ 23,819 $ 20,567 $ 17,453 Shares (denominator) Weighted average number of common shares outstanding used in basic computation 20,232 20,124 20,015 Common shares issuable upon the vesting of restricted stock 136 120 111 Common shares issuable upon conversion of preferred shares 10 10 10 Shares used in diluted computation 20,378 20,254 20,136 Net income per common share: Basic $ 1.18 $ 1.02 $ 0.87 Diluted $ 1.17 $ 1.02 $ 0.87 At March 31, 2017 and 2016, all restricted stock was included in the diluted net income per common share computation. |
Discontinued Project Costs
Discontinued Project Costs | 12 Months Ended |
Mar. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Project Costs | (7) Discontinued Project Costs During the quarter ended September 30, 2014 the Company discontinued an information technology project related to a new software platform, which was intended to be put into service and capitalized during fiscal 2015. The Company expensed a one-time project charge of $1.7 million in that September quarter. The net after tax impact of this one-time charge was $1.1 million, or $0.05 diluted per share. The Company does not expect any additional future expenditures relating to this discontinued project. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Shareholders' Equity | (8) Shareholders’ Equity Preferred Stock In April 1998, the Company issued 250,000 shares of its $.001 par value preferred stock at a price of $4.00 per share, less issuance costs of $112,187. Each share of the preferred stock is convertible into approximately 4.05 shares of common stock at the election of the shareholder. The shares have a liquidation value of $4.00 per share and may pay dividends at the sole discretion of the Company. The Company does not anticipate paying dividends to the preferred shareholders in the foreseeable future. Each share of preferred stock is entitled to one vote on all matters submitted to a vote of shareholders of the Company. At March 31, 2017 and 2016, 2,500 shares of the convertible preferred stock remained unconverted and outstanding. Share Repurchase Plan On November 8, 2006, the Company's Board of Directors approved a share repurchase plan of up to $20.0 million. On October 31, 2008, November 1, 2010, and August 1, 2011, the Company’s Board of Directors approved an increase under the repurchase plan each for an additional $20.0 million. The repurchase plan is intended to be implemented through purchases made from time to time in either the open market or through private transactions at the Company's discretion, subject to market conditions and other factors, in accordance with Securities and Exchange Commission requirements. There can be no assurances as to the precise number of shares that will be repurchased under the share repurchase plan, and the Company may discontinue the share repurchase plan at any time subject to compliance with applicable regulatory requirements. Shares purchased pursuant to the share repurchase plan will either be cancelled or held in the Company's treasury. During both fiscal 2016 and 2017 the Company had no share repurchases. At March 31, 2017 the Company had approximately $10.2 million remaining under the Company’s share repurchase plan. Dividends On July 26, 2013, the Company’s Board of Directors increased the quarterly dividend to $0.17 per share, then on May 4, 2015 the Company’s Board of Directors increased the quarterly dividend to $0.18 per share, and then on May 9, 2016 the Company’s Board of Directors increased the quarterly dividend to $0.19 per share. The Company intends to continue to pay regular quarterly dividends; however the declaration and payment of future dividends is discretionary and will be subject to a determination by the Board of Directors each quarter following its review of the Company’s financial performance. During fiscal 2017, our Board of Directors declared the following dividends: Declaration Date Per Share Record Date Total Amount Payment Date May 9, 2016 $ 0.19 May 20, 2016 $ 3,884 May 27, 2016 July 25, 2016 $ 0.19 August 8, 2016 $ 3,900 August 19, 2016 October 24, 2016 $ 0.19 November 7, 2016 $ 3,900 November 18, 2016 January 23, 2017 $ 0.19 February 6, 2017 $ 3,900 February 17, 2017 |
Restricted Stock
Restricted Stock | 12 Months Ended |
Mar. 31, 2017 | |
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | |
Restricted Stock | (9) Restricted Stock On July 28, 2006, the Company received shareholder approval for the adoption of the 2006 Employee Equity Compensation Restricted Stock Plan (the “Employee Plan”) and the 2006 Outside Director Equity Compensation Restricted Stock Plan (the “Director Plan”). The purpose of the plans is to promote the interests of the Company by securing and retaining both employees and outside directors. The Company had reserved 1.0 million shares of common stock for issuance under the Employee Plan, and 200,000 shares of common stock for issuance under the Director Plan. In July 2012 the Company received shareholder approval to ratify the amendment to the Company’s Director Plan passed by the Board of Directors to increase the number of shares available for issuance under the Director Plan from 200,000 to 400,000. Additionally, the Company received shareholder approval to ratify the amendment passed by the Board of Directors to provide for a 10% automatic increase every year in the amount of shares available for issuance under each of the plans. In July 2015, the Company’s 2015 Outside Director Equity Compensation Restricted Stock Plan (“2015 Director Plan”) became effective upon the approval of the plan by the Company’s Shareholders. The 2015 Director Plan authorizes 400,000 shares of the company's common stock available for issuance under the plan, and provides for an automatic increase every year in the amount of shares available for issuance under the plan of 10% of the shares authorized under the plan. In July 2016, the Company’s 2016 Employee Equity Compensation Restricted Stock Plan (“2016 Employee Plan”) became effective upon the approval of the plan by the Company’s Shareholders. The 2016 Employee Plan authorizes 1,000,000 shares of the Company's Common stock available for issuance under the plan. The value of the restricted stock is determined based on the market value of the stock at the issuance date. The restriction period or forfeiture period is determined by the Company’s Board and is to be no less than 1 year and no more than ten years. The Company had 976,878 restricted common shares issued under the Employee Plans and 302,000 restricted common shares issued under the Director Plans at March 31, 2017, all shares of which were issued subject to a restriction or forfeiture period which will lapse ratably on the first, second, and third anniversaries of the date of grant, and the fair value of which is being amortized over the three-year restriction period. For the fiscal years ended March 31, 2017, 2016, and 2015, the Company recognized compensation expense related to the Employee and Director Plans of $1.9 million, $1.6 million, and $1.5 million, respectively. A summary of the Company’s non-vested restricted stock at March 31, 2017 is as follows: Employee Director Both Plans Non-vested restricted stock outstanding at March 31, 2016 206 60 266 Restricted stock granted 50 30 80 Restricted stock vested (83 ) (30 ) (113 ) Restricted stock forfeited or expired (1 ) - (1 ) Non-vested restricted stock outstanding at March 31, 2017 172 60 232 At March 31, 2017 and 2016, there were 232,253 and 265,771, non-vested restricted stock shares outstanding, respectively. During the fiscal years ended March 31, 2017 and 2016, the Company issued, net of forfeitures, 78,582 and 185,084 restricted shares, respectively. At March 31, 2017 and 2016, there were $3.3 million and $3.6 million of unrecognized compensation cost related to the non-vested restricted stock awards, respectively, which is expected to be recognized over the remaining weighted average vesting period of 1.8 years and 2.3 years for fiscal 2017 and 2016, respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | (10) Fair Value Measurements The Company carries cash and cash equivalents and investments at fair value in the Consolidated Balance Sheets. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. ASC Topic 820 (“Fair Value Measurements”) establishes a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - Include other inputs that are directly or indirectly observable in the marketplace. Level 3 - Unobservable inputs which are supported by little or no market activity. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company’s cash equivalents are classified within Level 1. At March 31, 2017 the Company had invested the majority of its $58.7 million cash and cash equivalents balance in money market funds (level 1). |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (11) Commitments and Contingencies Legal Matters and Routine Proceedings The Company has settled complaints that had been filed with various states’ pharmacy boards in the past. There can be no assurances made that other states will not attempt to take similar actions against the Company in the future. The Company initiates litigation to protect its trade or service marks. There can be no assurance that the Company will be successful in protecting its trade or service marks. Legal costs related to the above matters are expensed as incurred. Employment Agreements On January 29, 2016, the Company amended the existing Executive Employment Agreement of Menderes Akdag, the Company’s President, Chief Executive Officer, and Director, and entered into Amendment No. 5 to the Executive Employment Agreement with Mr. Akdag. The Agreement amended certain provisions of the Executive Employment Agreement as follows: the term of the Agreement is for three years, commencing on March 16, 2016; Mr. Akdag’s salary was increased to $600,000 per year throughout the term of the Agreement, and Mr. Akdag was granted 120,000 shares of restricted stock. The restricted stock was granted on March 16, 2016, in accordance with the Company’s 2006 Employee Equity Compensation Restricted Stock Plan and the restrictions lapse ratably over a three-year period. Operating Leases The Company leased its 65,300 square foot executive offices, warehouse facility, and customer service and pharmacy contact centers under a non-cancelable operating lease in Pompano Beach, Florida. The Company was responsible for certain maintenance costs, taxes, and insurance under this lease. Rent expense was $519,000, $781,000, and $794,000 for the years ended March 31, 2017, 2016 and 2015, respectively. The Company relocated to the Delray Beach property in the quarter ended December 31, 2016, therefore eliminating any future rent payments subsequent to December 1, 2016. Upon acquisition of the Delray Beach property in January 2016, approximately 88,000 square feet of the property was leased to two tenants. The Company recorded approximately $586,000 and $116,000 in rental revenue in fiscal 2017 and 2016, respectively, which was included in other income. The Company expects to receive the following future lease payments over the next four years: $604,000 in fiscal 2018; $622,000 in fiscal 2019; $484,000 in fiscal 2020; and $97,000 in fiscal 2021. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Mar. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plan | (12) Employee Benefit Plan The Company maintains a 401(k) Savings Plan for eligible employees. The plan is a defined contribution plan that is administered by the Company. All regular, full-time employees are eligible for voluntary participation upon completing one year of service and having attained the age of 21. The plan provides for growth in savings through contributions and income from investments. It is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended. Plan participants are allowed to contribute a specified percentage of their base salary. In 2006, the Company adopted a matching plan which is funded subsequent to the calendar year. During the fiscal years ended March 31, 2017, 2016, and 2015, the Company charged $181,000, $177,000, and $187,000, respectively, of 401(k) matching contribution and administration expense to general and administrative expenses. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Mar. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | (13) Quarterly Financial Data (Unaudited) Summarized unaudited quarterly financial data for fiscal 2017 and 2016 is as follows (in thousands, except for per share amounts): Quarter Ended: June 30, 2016 September 30, 2016 December 31, 2016 March 31, 2017 Sales $ 72,487 $ 60,791 $ 52,866 $ 63,032 Gross Profit $ 22,452 $ 18,064 $ 16,643 $ 22,155 Income from operations $ 10,400 $ 7,731 $ 7,655 $ 11,697 Net income $ 6,594 $ 4,899 $ 4,823 $ 7,503 Diluted net income per common share $ 0.32 $ 0.24 $ 0.24 $ 0.37 Quarter Ended: June 30, 2015 September 30, 2015 December 31, 2015 March 31, 2016 Sales $ 71,634 $ 56,725 $ 50,933 $ 55,392 Gross Profit $ 22,966 $ 18,913 $ 16,754 $ 17,663 Income from operations $ 9,091 $ 7,090 $ 7,622 $ 8,585 Net income $ 5,757 $ 4,502 $ 4,890 $ 5,418 Diluted net income per common share $ 0.29 $ 0.22 $ 0.24 $ 0.27 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | (14) Subsequent Events On May 8, 2017, the Company’s Board of Directors declared an increased quarterly dividend of $0.20 per share on its common stock. The $4.1 million dividend will be paid on May 26, 2017, to shareholders of record at the close of business on May 19, 2017. |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany transactions have been eliminated in consolidation. |
Revenue Recognition | Revenue Recognition The Company generates revenue by selling pet medication products and pet supplies mainly to retail consumers. The Company’s policy is to recognize revenue from product sales upon shipment, when the rights of ownership and risk of loss have passed to the customer. Outbound shipping and handling fees are included in sales and are billed upon shipment. Shipping expenses are included in cost of sales. The majority of the Company’s sales are paid by credit cards and the Company usually receives the cash settlement in two to three banking days. Credit card sales minimize the accounts receivable balances relative to sales. The Company maintains an allowance for doubtful accounts for losses that the Company estimates will arise from the customers’ inability to make required payments, arising from either credit card charge-backs or insufficient funds checks. The Company determines its estimates of the uncollectibility of accounts receivable by analyzing historical bad debts and current economic trends. At March 31, 2017 and 2016, the allowance for doubtful accounts was approximately $27,000 and $13,000, respectively. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with maturity of three months or less when purchased to be cash equivalents. Cash and cash equivalents at March 31, 2017 and 2016 consisted of the Company’s cash accounts and money market accounts with a maturity of three months or less. The carrying amount of cash equivalents approximates fair value. The Company maintains its cash in bank deposit accounts which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Inventories | Inventories Inventories consist of prescription and non-prescription pet medications and pet supplies that are available for sale and are priced at the lower of cost or net realizable value using a weighted average cost method. The Company writes down its inventory for estimated obsolescence. The inventory reserve was approximately $51,000 and $64,000 at March 31, 2017 and 2016, respectively. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of the assets. Our building is depreciated over a period of thirty years. The furniture, fixtures, equipment, and computer software are depreciated over periods ranging from three to seven years. Leasehold improvements and assets under capital lease agreements are amortized over the shorter of the underlying lease agreement or the useful life of the asset. On December 22, 2015, the Company, by and through a wholly-owned subsidiary entered into an agreement of purchase and sale with an unaffiliated privately held Delaware corporation for the purchase of real property located in Palm Beach County, Florida, and improvements thereon (collectively referred to herein as the “Property”), the assignment and assumption of all leases and service agreements affecting the property, and certain tangible and intangible personal property related to the property, for a purchase price of $18.5 million, plus closing costs. The transaction closed on January 19, 2016. The Property consists of approximately 634,000 square feet of land or 14.6 acres with two building complexes totaling approximately 185,000 square feet, with additional land for future use. The first building complex consists of approximately 125,000 square feet consisting of both office and warehouse. The second building complex consists of approximately 60,000 square feet consisting of both office and warehouse space. The Company occupies approximately 97,000 square feet of the first building for its principal offices and distribution center. At March 31, 2017, 48% of the property was leased to two tenants with a remaining weighted average lease term of 3.0 years. |
Long-lived Assets | Long-lived Assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Recoverability of assets is measured by a comparison of the carrying amount of the asset to the undiscounted cash flows expected to be generated from the asset. |
Intangible Assets | Intangible Assets The intangible asset consists of a toll-free telephone number and an internet domain name. In accordance with the ASC Topic 350 (“ Goodwill and Other Intangible Assets” |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts of the Company's cash and cash equivalents, accounts receivable, and accounts payable approximate fair value due to the short-term nature of these instruments. |
Advertising | Advertising The Company's advertising expenses consist primarily of online marketing and direct mail/print advertising. Internet costs are expensed in the month incurred and direct mail/print costs are expensed when the related catalogs, brochures, and postcards are produced, distributed, or superseded. |
Business Concentrations | Business Concentrations The Company purchases its products from a variety of sources, including certain manufacturers, domestic distributors, and wholesalers. We have multiple suppliers for each of our products to obtain the lowest cost. There were four suppliers from whom we purchased approximately 50% of all products in fiscal 2017 and fiscal 2016. |
Accounting for Share Based Compensation | Accounting for Share Based Compensation The Company records compensation expense associated with restricted stock in accordance with ASC Topic 718 ( “Share Based Payment” |
Comprehensive Income | Comprehensive Income The Company applies ASC Topic 220 (“ Reporting Comprehensive Income” The following is a summary of our comprehensive income (in thousands): March 31, 2017 2016 2015 Net income $ 23,819 $ 20,567 $ 17,453 Net change in unrealized gain (loss) on short term investments - 54 (17 ) Comprehensive income $ 23,819 $ 20,621 $ 17,436 |
Income Taxes | Income Taxes The Company accounts for income taxes under the provisions of ASC Topic 740 (“ Accounting for Income Taxes |
Reclassifications | Reclassifications Certain reclassifications have been made to the prior years’ consolidated financial statements to conform to the fiscal 2017 presentation. These reclassifications had no impact on net income, shareholders’ equity or cash flows as previously reported. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers.” This ASU clarifies the accounting for revenue arising from contracts with customers and specifies the disclosures that an entity should include in its financial statements. The standard is effective for annual reporting periods beginning after December 15, 2017. During 2016, the FASB issued certain amendments to the standard relating to the principal versus agent guidance, accounting for licenses of intellectual property and identifying performance obligations as well as the guidance on transition, collectability, noncash consideration and the presentation of sales and other similar taxes. The effective date and transition requirements for these amendments are the same as those of the original ASU. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (modified retrospective method). The Company currently anticipates adopting the standard using the modified retrospective method. The Company has performed a high level analysis of its revenue streams and expects to complete its evaluations in FY 2018, as well as an evaluation of the impact on its business processes, controls and systems. The Company does not expect this standard to affect the Company materially, other than increased disclosures. We plan to complete our assessment of the impact of adoption during fiscal 2018 and finalize the adoption of the new revenue standard by the end of fiscal 2019. In February 2016, the FASB issued guidance on leases which supersedes the current lease guidance. The core principle requires lessees to recognize the assets and liabilities that arise from nearly all leases in the statement of financial position. Accounting applied by lessors will remain largely consistent with previous guidance, additional changes set to align lessor accounting with the revised lessee model and the FASB’s revenue recognition guidance. The amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the impact of this standard on its consolidated financial statements. In March 2016, the Financial Accounting Standards Board (“FASB”) released Accounting Standards Update on Stock Compensation Improvements to Employee Share-Based Payment Accounting (Topic 718) (ASU 2016-09). ASU 2016-09 requires entities to recognize the income tax effects of share-based awards in the income statement when the awards vest or are settled. The objective of this update is to simplify several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The new standard is effective for annual and interim periods beginning January 1, 2017. We early adopted this standard as of March 31, 2017. As a result, during the fourth quarter we reclassified the year-to-date fiscal 2017 excess tax benefit of $156,000 from paid-in capital (statements of equity) into the income tax provision line on the statements of comprehensive income. Further, we reclassified the excess tax benefits from the stock based compensation from financing activities into operating activities in the statement of cash flows for the year ended March 31, 2017, as required by ASU 2016-09 (adopted prospectively). The adoption did not impact the existing classification of the awards. The Company does not believe that any other recently issued, but not yet effective, accounting standards, if currently adopted, will have a material effect on the Company’s consolidated financial position, results of operations, or cash flows. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of comprehensive income | March 31, 2017 2016 2015 Net income $ 23,819 $ 20,567 $ 17,453 Net change in unrealized gain (loss) on short term investments - 54 (17 ) Comprehensive income $ 23,819 $ 20,621 $ 17,436 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property plant and equipment | March 31, 2017 2016 Building $ 14,988 $ 14,988 Land 3,700 3,700 Building improvements 2,592 - Leasehold improvements - 1,123 Computer software 5,068 4,812 Furniture, fixtures and equipment 7,863 4,703 34,211 29,326 Less: accumulated depreciation (4,047 ) (8,397 ) Property and equipment, net $ 30,164 $ 20,929 |
Valuation and Qualifying Acco24
Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule of valuation and qualifying accounts | Year Ended March 31, 2017 2016 2015 Allowance for doubtful accounts: Balance at beginning of period $ 13 $ 8 $ 7 Provision for doubtful accounts 421 260 94 Write-off of uncollectible accounts receivable (407 ) (255 ) (93 ) Balance at end of year $ 27 $ 13 $ 8 |
Accrued Expenses and Other Cu25
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of accrued expenses and other current liabilities | March 31, 2017 2016 Accrued sales tax $ 450 $ 459 Accrued credit card fees 364 335 Accrued salaries and benefits 639 482 Accrued professional expenses 245 255 Accrued sales return allowance 180 172 Accrued dividends payable 217 143 Accrued real estate taxes 236 65 Other accrued liabilities 144 169 Accrued expenses and other current liabilities $ 2,475 $ 2,080 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of deferred tax assets and liabilities | March 31, 2017 2016 Deferred tax assets: Accrued expenses $ 474 $ 537 Deferred stock compensation 334 302 Bad debt and inventory reserves 29 29 Total deferred tax assets 837 868 Deferred tax liabilities: Property and equipment 1,925 5 Total net deferred taxes $ (1,088 ) $ 863 |
Schedule of components of the income tax provision | Year Ended March 31, 2017 2016 2015 Current taxes Federal $ 11,095 $ 10,982 $ 9,303 State 1,059 1,041 885 Total current taxes 12,154 12,023 10,188 Deferred taxes Federal 1,781 (21 ) 143 State 170 (2 ) 14 Total deferred taxes 1,951 (23 ) 157 Total provision for income taxes $ 14,105 $ 12,000 $ 10,345 |
Schedule of reconciliation of income tax provision | Year Ended March 31, 2017 2016 2015 Income taxes at U.S. statutory rates $ 13,274 $ 11,399 $ 9,729 State income taxes, net of federal tax benefit 858 675 589 Permanent differences 1 (23 ) (29 ) Other (28 ) (51 ) 56 Total provision for income taxes $ 14,105 $ 12,000 $ 10,345 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of the numerators and denominators of the basic and diluted net income per share computations | Year Ended March 31, 2017 2016 2015 Net income (numerator): Net income $ 23,819 $ 20,567 $ 17,453 Shares (denominator) Weighted average number of common shares outstanding used in basic computation 20,232 20,124 20,015 Common shares issuable upon the vesting of restricted stock 136 120 111 Common shares issuable upon conversion of preferred shares 10 10 10 Shares used in diluted computation 20,378 20,254 20,136 Net income per common share: Basic $ 1.18 $ 1.02 $ 0.87 Diluted $ 1.17 $ 1.02 $ 0.87 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Schedule of dividend declared | Declaration Date Per Share Record Date Total Amount Payment Date May 9, 2016 $ 0.19 May 20, 2016 $ 3,884 May 27, 2016 July 25, 2016 $ 0.19 August 8, 2016 $ 3,900 August 19, 2016 October 24, 2016 $ 0.19 November 7, 2016 $ 3,900 November 18, 2016 January 23, 2017 $ 0.19 February 6, 2017 $ 3,900 February 17, 2017 |
Restricted Stock (Tables)
Restricted Stock (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | |
Schedule of non-vested restricted stock | Employee Director Both Plans Non-vested restricted stock outstanding at March 31, 2016 206 60 266 Restricted stock granted 50 30 80 Restricted stock vested (83 ) (30 ) (113 ) Restricted stock forfeited or expired (1 ) - (1 ) Non-vested restricted stock outstanding at March 31, 2017 172 60 232 |
Quarterly Financial Data (Una30
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial data (unaudited) | Quarter Ended: June 30, 2016 September 30, 2016 December 31, 2016 March 31, 2017 Sales $ 72,487 $ 60,791 $ 52,866 $ 63,032 Gross Profit $ 22,452 $ 18,064 $ 16,643 $ 22,155 Income from operations $ 10,400 $ 7,731 $ 7,655 $ 11,697 Net income $ 6,594 $ 4,899 $ 4,823 $ 7,503 Diluted net income per common share $ 0.32 $ 0.24 $ 0.24 $ 0.37 Quarter Ended: June 30, 2015 September 30, 2015 December 31, 2015 March 31, 2016 Sales $ 71,634 $ 56,725 $ 50,933 $ 55,392 Gross Profit $ 22,966 $ 18,913 $ 16,754 $ 17,663 Income from operations $ 9,091 $ 7,090 $ 7,622 $ 8,585 Net income $ 5,757 $ 4,502 $ 4,890 $ 5,418 Diluted net income per common share $ 0.29 $ 0.22 $ 0.24 $ 0.27 |
Summary of Significant Accoun31
Summary of Significant Accounting Policies - Summary of our comprehensive income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Accounting Policies [Abstract] | |||||||||||
Net income | $ 7,503 | $ 4,823 | $ 4,899 | $ 6,594 | $ 5,418 | $ 4,890 | $ 4,502 | $ 5,757 | $ 23,819 | $ 20,567 | $ 17,453 |
Net change in unrealized gain (loss) on short term investments | 54 | (17) | |||||||||
Comprehensive income | $ 23,819 | $ 20,621 | $ 17,436 |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Detail Textuals) | 12 Months Ended | |||
Mar. 31, 2017USD ($)TenantSupplier | Mar. 31, 2016USD ($)Supplier | Mar. 31, 2015USD ($) | Dec. 22, 2015USD ($)ft²aBuilding | |
Significant Accounting Policies [Line Items] | ||||
Allowance for doubtful accounts (in dollars) | $ | $ 27,000 | $ 13,000 | ||
Inventory reserve | $ | $ 51,000 | 64,000 | ||
Depreciation method | straight-line method | |||
Purchase price of Property purchased | $ | $ 18,500,000 | |||
Area of land | ft² | 634,000 | |||
Area of building complex | a | 14.6 | |||
Number of Units in Real Estate Property | Building | 2 | |||
Percentage of property on lease | 48.00% | |||
Number of tenants | Tenant | 2 | |||
Remaining weighted average lease term | 3 years | |||
Unrealized gain (loss) on short term investments | $ | $ 54,000 | $ (17,000) | ||
Year to date | ||||
Significant Accounting Policies [Line Items] | ||||
Amount of excess tax benefit | $ | $ 156,000 | |||
Building | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated useful lives of assets | thirty years | |||
Area of building complex | ft² | 185,000 | |||
Furniture, fixtures and equipment | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated useful lives of assets | three to seven years | |||
Computer software | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated useful lives of assets | three to seven years | |||
Building One | ||||
Significant Accounting Policies [Line Items] | ||||
Area of building complex | ft² | 125,000 | |||
Area occupied | ft² | 97,000 | |||
Building Two | ||||
Significant Accounting Policies [Line Items] | ||||
Area of building complex | ft² | 60,000 | |||
Supplier concentration risk | Cost of goods | ||||
Significant Accounting Policies [Line Items] | ||||
Number of suppliers | Supplier | 4 | 4 | ||
Percentage products purchased from suppliers | 50.00% | 50.00% |
Property and Equipment - Major
Property and Equipment - Major classifications of property and equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 34,211 | $ 29,326 |
Less: accumulated depreciation | (4,047) | (8,397) |
Property and equipment, net | 30,164 | 20,929 |
Building | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 14,988 | 14,988 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 3,700 | 3,700 |
Building improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,592 | |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,123 | |
Computer software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 5,068 | 4,812 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 7,863 | $ 4,703 |
Valuation and Qualifying Acco34
Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Allowance for doubtful accounts: | |||
Provision for doubtful accounts | $ 421 | $ 260 | $ 94 |
Allowance for Doubtful Accounts | |||
Allowance for doubtful accounts: | |||
Balance at beginning of period | 13 | 8 | 7 |
Provision for doubtful accounts | 421 | 260 | 94 |
Write-off of uncollectible accounts receivable | (407) | (255) | (93) |
Balance at end of year | $ 27 | $ 13 | $ 8 |
Accrued Expenses and Other Cu35
Accrued Expenses and Other Current Liabilities - Major classifications of accrued expenses and other current liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 |
Payables and Accruals [Abstract] | ||
Accrued sales tax | $ 450 | $ 459 |
Accrued credit card fees | 364 | 335 |
Accrued salaries and benefits | 639 | 482 |
Accrued professional expenses | 245 | 255 |
Accrued sales return allowance | 180 | 172 |
Accrued dividends payable | 217 | 143 |
Accrued real estate taxes | 236 | 65 |
Other accrued liabilities | 144 | 169 |
Accrued expenses and other current liabilities | $ 2,475 | $ 2,080 |
Income Taxes - Tax effects of t
Income Taxes - Tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 |
Deferred tax assets: | ||
Accrued expenses | $ 474 | $ 537 |
Deferred stock compensation | 334 | 302 |
Bad debt and inventory reserves | 29 | 29 |
Total deferred tax assets | 837 | 868 |
Deferred tax liabilities: | ||
Property and equipment | 1,925 | 5 |
Total net deferred taxes | $ (1,088) | $ 863 |
Income Taxes - Components of th
Income Taxes - Components of the income tax provision (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Current taxes | |||
Federal | $ 11,095 | $ 10,982 | $ 9,303 |
State | 1,059 | 1,041 | 885 |
Total current taxes | 12,154 | 12,023 | 10,188 |
Deferred taxes | |||
Federal | 1,781 | (21) | 143 |
State | 170 | (2) | 14 |
Total deferred taxes | 1,951 | (23) | 157 |
Total provision for income taxes | $ 14,105 | $ 12,000 | $ 10,345 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of income tax provision computed at the U.S. federal statutory tax rates to income tax expense (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Income taxes at U.S. statutory rates | $ 13,274 | $ 11,399 | $ 9,729 |
State income taxes, net of federal tax benefit | 858 | 675 | 589 |
Permanent differences | 1 | (23) | (29) |
Other | (28) | (51) | 56 |
Total provision for income taxes | $ 14,105 | $ 12,000 | $ 10,345 |
Net Income Per Share - Reconcil
Net Income Per Share - Reconciliation of the numerators and denominators of the basic and diluted net income per share computations (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Net income (numerator): | |||||||||||
Net income (in dollars) | $ 7,503 | $ 4,823 | $ 4,899 | $ 6,594 | $ 5,418 | $ 4,890 | $ 4,502 | $ 5,757 | $ 23,819 | $ 20,567 | $ 17,453 |
Shares (denominator) | |||||||||||
Weighted average number of common shares outstanding used in basic computation | 20,232 | 20,124 | 20,015 | ||||||||
Common shares issuable upon the vesting of restricted stock | 136 | 120 | 111 | ||||||||
Common shares issuable upon conversion of preferred shares | 10 | 10 | 10 | ||||||||
Shares used in diluted computation | 20,378 | 20,254 | 20,136 | ||||||||
Net income per common share: | |||||||||||
Basic (in dollars per share) | $ 1.18 | $ 1.02 | $ 0.87 | ||||||||
Diluted (in dollars per share) | $ 0.37 | $ 0.24 | $ 0.24 | $ 0.32 | $ 0.27 | $ 0.24 | $ 0.22 | $ 0.29 | $ 1.17 | $ 1.02 | $ 0.87 |
Discontinued Project Costs (Det
Discontinued Project Costs (Detail Textuals) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Mar. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | ||
One-time project charge expense | $ 1,700 | $ 1,714 |
Net after tax one-time charge expense | $ 1,100 | |
Diluted per share (in dollars per share) | $ 0.05 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of dividends declared (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Mar. 31, 2017USD ($)$ / shares | |
May 9, 2016 | |
Stockholders Equity Note [Line Items] | |
Declaration Date | May 9, 2016 |
Per Share Dividend | $ / shares | $ 0.19 |
Record Date | May 20, 2016 |
Total Amount (In thousands) | $ | $ 3,884 |
Payment Date | May 27, 2016 |
July 25, 2016 | |
Stockholders Equity Note [Line Items] | |
Declaration Date | Jul. 25, 2016 |
Per Share Dividend | $ / shares | $ 0.19 |
Record Date | Aug. 8, 2016 |
Total Amount (In thousands) | $ | $ 3,900 |
Payment Date | Aug. 19, 2016 |
October 24, 2016 | |
Stockholders Equity Note [Line Items] | |
Declaration Date | Oct. 24, 2016 |
Per Share Dividend | $ / shares | $ 0.19 |
Record Date | Nov. 7, 2016 |
Total Amount (In thousands) | $ | $ 3,900 |
Payment Date | Nov. 18, 2016 |
January 23, 2017 | |
Stockholders Equity Note [Line Items] | |
Declaration Date | Jan. 23, 2017 |
Per Share Dividend | $ / shares | $ 0.19 |
Record Date | Feb. 6, 2017 |
Total Amount (In thousands) | $ | $ 3,900 |
Payment Date | Feb. 17, 2017 |
Shareholders' Equity (Detail Te
Shareholders' Equity (Detail Textuals) - USD ($) | 1 Months Ended | ||
Apr. 30, 1998 | Mar. 31, 2017 | Mar. 31, 2016 | |
Equity [Abstract] | |||
Number of preferred shares issued | 250,000 | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 |
Preferred shares, issued value (in dollars per share) | $ 4 | ||
Preferred shares, issuance costs | $ 112,187 | ||
Number of common stock converted | 4.05 | ||
Liquidation value (in dollars per share) | $ 4 | $ 4 | $ 4 |
Number of voting right | one vote | ||
Number of shares remained unconverted and outstanding | 2,500 | 2,500 |
Shareholders' Equity (Detail 43
Shareholders' Equity (Detail Textuals 1) - Share Repurchase Plan - USD ($) $ in Millions | Mar. 31, 2017 | Aug. 01, 2011 | Nov. 01, 2010 | Oct. 31, 2008 | Nov. 08, 2006 |
Stockholders Equity Note [Line Items] | |||||
Amount approved of share repurchase plan | $ 20 | $ 20 | $ 20 | $ 20 | |
Value of remaining shares | $ 10.2 |
Shareholders' Equity (Detail 44
Shareholders' Equity (Detail Textuals 2) | 12 Months Ended |
Mar. 31, 2017$ / shares | |
Declaration Date July 26, 2013 | |
Stockholders Equity Note [Line Items] | |
Dividends Payable, Date Declared | Jul. 26, 2013 |
Dividends Payable, Amount Per Share | $ 0.17 |
Declaration Date May 4, 2015 | |
Stockholders Equity Note [Line Items] | |
Dividends Payable, Date Declared | May 4, 2015 |
Dividends Payable, Amount Per Share | $ 0.18 |
Declaration Date May 9, 2016 | |
Stockholders Equity Note [Line Items] | |
Dividends Payable, Date Declared | May 9, 2016 |
Dividends Payable, Amount Per Share | $ 0.19 |
Restricted Stock - Summary of n
Restricted Stock - Summary of non-vested restricted stock (Details) - Non-vested restricted stock shares in Thousands | 12 Months Ended |
Mar. 31, 2017shares | |
Employee Plan | |
Number of Shares | |
Non-vested restricted stock outstanding at March 31, 2016 | 206 |
Restricted stock granted | 50 |
Restricted stock vested | (83) |
Restricted stock forfeited or expired | (1) |
Non-vested restricted stock outstanding at March 31, 2017 | 172 |
Director Plan | |
Number of Shares | |
Non-vested restricted stock outstanding at March 31, 2016 | 60 |
Restricted stock granted | 30 |
Restricted stock vested | (30) |
Restricted stock forfeited or expired | |
Non-vested restricted stock outstanding at March 31, 2017 | 60 |
Both Plans | |
Number of Shares | |
Non-vested restricted stock outstanding at March 31, 2016 | 266 |
Restricted stock granted | 80 |
Restricted stock vested | (113) |
Restricted stock forfeited or expired | (1) |
Non-vested restricted stock outstanding at March 31, 2017 | 232 |
Restricted Stock (Detail Textua
Restricted Stock (Detail Textuals ) - shares | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2012 | Mar. 31, 2017 | Jul. 28, 2006 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of automatic increase in the amount of shares available for issuance | 10.00% | |||
2006 Employee Equity Compensation Restricted Stock Plan (the "Employee Plan") | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares of common stock reserved for issuance | 976,878 | 1,000,000 | ||
2006 Outside Director Equity Compensation Restricted Stock Plan (the "Director Plan") | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares of common stock reserved for issuance | 400,000 | 302,000 | 200,000 | |
2015 Outside Director Equity Compensation Restricted Stock Plan | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares of common stock reserved for issuance | 400,000 | |||
Percentage of automatic increase in the amount of shares available for issuance | 10.00% | |||
2016 Outside Director Equity Compensation Restricted Stock Plan | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares of common stock reserved for issuance | 1,000,000 | |||
Restriction period | No less than 1 year and no more than ten years |
Restricted Stock (Detail Text47
Restricted Stock (Detail Textuals 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | |||
Compensation expense | $ 1,935 | $ 1,612 | $ 1,481 |
Restricted Stock (Detail Text48
Restricted Stock (Detail Textuals 2) - Non-vested restricted stock - Employee and director equity compensation plan - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Non-vested restricted stock shares outstanding | 232,000 | 266,000 |
Issuance of restricted stock, net of forfeitures (in shares) | 78,582 | 185,084 |
Unrecognized compensation cost related to non-vested restricted stock awards | $ 3.3 | $ 3.6 |
Weighted average vesting period | 1 year 9 months 18 days | 2 years 3 months 18 days |
Fair Value Measurements (Detail
Fair Value Measurements (Detail Textuals) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 |
Fair Value Disclosures [Abstract] | ||||
Cash and cash equivalents | $ 58,730 | $ 37,639 | $ 35,613 | $ 18,305 |
Commitments and Contingencies (
Commitments and Contingencies (Detail Textuals) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Mar. 16, 2016USD ($)shares | Jan. 31, 2016ft²Tenant | Mar. 31, 2017USD ($)ft²Tenant | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | |
Commitments and Contingencies [Line Items] | |||||
Number of tenants | Tenant | 2 | ||||
Executive Employment Agreement | Menderes Akdag | |||||
Commitments and Contingencies [Line Items] | |||||
Term of agreement | 3 years | ||||
Salary per year throughout the term of the Agreement | $ 600 | ||||
Number of shares of restricted stock granted | shares | 120,000 | ||||
Restriction period | three-year | ||||
Operating lease agreement | |||||
Commitments and Contingencies [Line Items] | |||||
Area on lease | ft² | 65,300 | ||||
Rent expense | $ 519 | $ 781 | $ 794 | ||
Operating lease agreement | Delray Beach property | |||||
Commitments and Contingencies [Line Items] | |||||
Area on lease | ft² | 88,000 | ||||
Number of tenants | Tenant | 2 | ||||
Rental revenue | 586 | $ 116 | |||
Future minimum annual lease payments for year 2018 | 604 | ||||
Future minimum annual lease payments for year 2019 | 622 | ||||
Future minimum annual lease payments for year 2020 | 484 | ||||
Future minimum annual lease payments for year 2021 | $ 97 |
Employee Benefit Plan (Detail T
Employee Benefit Plan (Detail Textuals) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |||
Maximum year of service for participating in the plan | 1 year | ||
Maximum age for participating in the plan | 21 years | ||
Matching contribution and administration expense | $ 181 | $ 177 | $ 187 |
Quarterly Financial Data (Una52
Quarterly Financial Data (Unaudited) - Summarized unaudited quarterly financial data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Sales | $ 63,032 | $ 52,866 | $ 60,791 | $ 72,487 | $ 55,392 | $ 50,933 | $ 56,725 | $ 71,634 | $ 249,176 | $ 234,684 | $ 229,395 |
Gross profit | 22,155 | 16,643 | 18,064 | 22,452 | 17,663 | 16,754 | 18,913 | 22,966 | 79,314 | 76,296 | 76,270 |
Income from operations | 11,697 | 7,655 | 7,731 | 10,400 | 8,585 | 7,622 | 7,090 | 9,091 | 37,483 | 32,388 | 27,613 |
Net income | $ 7,503 | $ 4,823 | $ 4,899 | $ 6,594 | $ 5,418 | $ 4,890 | $ 4,502 | $ 5,757 | $ 23,819 | $ 20,567 | $ 17,453 |
Diluted net income per common share (in dollars per share) | $ 0.37 | $ 0.24 | $ 0.24 | $ 0.32 | $ 0.27 | $ 0.24 | $ 0.22 | $ 0.29 | $ 1.17 | $ 1.02 | $ 0.87 |
Subsequent Events (Detail Textu
Subsequent Events (Detail Textuals) - Subsequent Event $ / shares in Units, $ in Millions | May 08, 2017USD ($)$ / shares |
Subsequent Event [Line Items] | |
Dividend declaration date | May 8, 2017 |
Dividend declared (in dollars per share) | $ / shares | $ 0.20 |
Dividend paid | $ | $ 4.1 |
Payment date | May 26, 2017 |
Record date | May 19, 2017 |