Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Jun. 30, 2014 | Jul. 28, 2014 | |
Document Documentand Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2015 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Trading Symbol | 'HGG | ' |
Entity Registrant Name | 'HHGREGG, INC. | ' |
Entity Central Index Key | '0001396279 | ' |
Current Fiscal Year End Date | '--03-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 28,394,164 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Income Statement [Abstract] | ' | ' |
Net sales | $472,293 | $524,922 |
Cost of goods sold | 331,954 | 370,157 |
Gross profit | 140,339 | 154,765 |
Selling, general and administrative expenses | 116,589 | 119,309 |
Net advertising expense | 27,224 | 25,896 |
Depreciation and amortization expense | 10,475 | 11,038 |
Loss from operations | -13,949 | -1,478 |
Other expense (income): | ' | ' |
Interest expense | 629 | 604 |
Interest income | -5 | -5 |
Total other expense | 624 | 599 |
Loss before income taxes | -14,573 | -2,077 |
Income tax benefit | -4,304 | -817 |
Net loss | ($10,269) | ($1,260) |
Net loss per share | ' | ' |
Basic (in dollars per share) | ($0.36) | ($0.04) |
Diluted (in dollars per share) | ($0.36) | ($0.04) |
Weighted average shares outstanding-basic | 28,444,948 | 31,263,226 |
Weighted average shares outstanding-diluted | 28,444,948 | 31,263,226 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $3,147 | $48,164 |
Accounts receivable—trade, less allowances of $137 and $132 as of June 30, 2014 and March 31, 2014, respectively | 20,026 | 15,121 |
Accounts receivable—other | 17,244 | 16,467 |
Merchandise inventories, net | 364,252 | 298,542 |
Prepaid expenses and other current assets | 6,548 | 6,694 |
Income tax receivable | 14,690 | 1,380 |
Deferred income tax assets | 0 | 6,220 |
Total current assets | 425,907 | 392,588 |
Net property and equipment | 188,229 | 193,882 |
Deferred financing costs, net | 2,200 | 2,334 |
Deferred income tax assets | 37,613 | 35,182 |
Other assets | 2,243 | 1,977 |
Total long-term assets | 230,285 | 233,375 |
Total assets | 656,192 | 625,963 |
Current liabilities: | ' | ' |
Accounts payable | 167,261 | 140,806 |
Customer deposits | 48,395 | 41,518 |
Accrued liabilities | 54,695 | 50,898 |
Deferred Tax Liabilities, Net, Current | 5,339 | 0 |
Income tax payable | 0 | 122 |
Total current liabilities | 275,690 | 233,344 |
Long-term liabilities: | ' | ' |
Deferred rent | 71,731 | 73,493 |
Other long-term liabilities | 11,540 | 11,992 |
Total long-term liabilities | 83,271 | 85,485 |
Total liabilities | 358,961 | 318,829 |
Stockholders’ equity: | ' | ' |
Preferred stock, par value $.0001; 10,000,000 shares authorized; no shares issued and outstanding as of June 30, 2014 and March 31, 2014, respectively | 0 | 0 |
Common stock, par value $.0001; 150,000,000 shares authorized; 41,158,041 and 41,121,390 shares issued; and 28,394,164 and 28,460,218 outstanding as of June 30, 2014 and March 31, 2014, respectively | 4 | 4 |
Additional paid-in capital | 298,541 | 297,199 |
Retained earnings | 144,609 | 154,878 |
Common stock held in treasury at cost, 12,763,877 and 12,661,172 shares as of June 30, 2014 and March 31, 2014, respectively | -145,923 | -144,947 |
Total stockholders’ equity | 297,231 | 307,134 |
Total liabilities and stockholders’ equity | $656,192 | $625,963 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Accounts receivable-trade, allowances | $45 | $1 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares issued | 41,158,041 | 41,121,390 |
Common stock, outstanding | 28,394,164 | 28,460,218 |
Common stock held in treasury at cost, shares | 12,763,877 | 12,661,172 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net loss | ($10,269) | ($1,260) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Depreciation and amortization | 10,475 | 11,038 |
Amortization of deferred financing costs | 134 | 166 |
Stock-based compensation | 1,469 | 1,452 |
Excess tax deficiency from stock based compensation | 0 | 37 |
Gain on sales of property and equipment | -27 | 0 |
Deferred income taxes | 9,128 | -779 |
Tenant allowances received from landlords | 0 | 555 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable—trade | -4,905 | -13,137 |
Accounts receivable—other | -736 | 505 |
Merchandise inventories | -65,710 | -33,947 |
Income tax receivable | -13,310 | -1,268 |
Prepaid expenses and other assets | 98 | -244 |
Accounts payable | 24,685 | 10,193 |
Customer deposits | 6,877 | 8,517 |
Increase (Decrease) in Income Taxes Payable | -122 | -2,145 |
Accrued liabilities | 3,670 | 5,444 |
Deferred rent | -1,803 | -1,646 |
Other long-term liabilities | -385 | -662 |
Net cash used in operating activities | -40,731 | -17,181 |
Cash flows from investing activities: | ' | ' |
Purchases of property and equipment | -4,430 | -5,360 |
Proceeds from sales of property and equipment | 33 | 0 |
Payments to Acquire Life Insurance Policies | -218 | 0 |
Net cash used in investing activities | -4,615 | -5,360 |
Cash flows from financing activities: | ' | ' |
Purchases of treasury stock | -976 | -10,311 |
Proceeds from exercise of stock options | 0 | 2,174 |
Excess tax deficiency from stock-based compensation | 0 | -37 |
Net decrease in bank overdrafts | 0 | -8,400 |
Net borrowings on inventory financing facility | 1,305 | 13,643 |
Net cash provided by (used in) financing activities | 329 | -2,931 |
Net decrease in cash and cash equivalents | -45,017 | -25,472 |
Cash and cash equivalents | ' | ' |
Beginning of period | 48,164 | 48,592 |
End of period | 3,147 | 23,120 |
Supplemental disclosure of cash flow information: | ' | ' |
Interest paid | 489 | 428 |
Income taxes paid | 0 | 3,375 |
Capital expenditures included in accounts payable | $1,533 | $2,074 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statement of Stockholders' Equity (USD $) | Total | Common Stock | Preferred Stock | Additional Paid-in Capital | Retained Earnings | Common Stock Held in Treasury |
In Thousands, except Share data | ||||||
Beginning Balance at Mar. 31, 2014 | $307,134 | $4 | $0 | $297,199 | $154,878 | ($144,947) |
Beginning Balance (in shares) at Mar. 31, 2014 | ' | 28,460,218 | ' | ' | ' | ' |
Net loss | -10,269 | ' | ' | ' | -10,269 | ' |
Exercise of stock options and vesting of RSUs (in shares) | ' | 36,651 | ' | ' | ' | ' |
Exercise of stock options and vesting of RSUs | -127 | ' | ' | -127 | ' | ' |
Stock compensation expense | 1,469 | ' | ' | 1,469 | ' | ' |
Repurchase of common stock (in shares) | ' | -102,705 | ' | ' | ' | ' |
Repurchase of common stock | -976 | ' | ' | ' | ' | -976 |
Ending Balance at Jun. 30, 2014 | $297,231 | $4 | $0 | $298,541 | $144,609 | ($145,923) |
Ending Balance (in shares) at Jun. 30, 2014 | ' | 28,394,164 | ' | ' | ' | ' |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
Summary of Significant Accounting Policies | |
Description of Business | |
hhgregg is an appliance, electronics and furniture retailer that is committed to providing customers with a truly differentiated purchase experience through superior customer service, knowledgeable sales associates and the highest quality product selections. Founded in 1955, hhgregg is a multi-regional retailer with 229 stores in 20 states that also offers market-leading global and local brands at value prices nationwide via hhgregg.com. The Company operates in one reportable segment. | |
Interim Financial Information | |
The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). In the opinion of the Company’s management, these unaudited condensed consolidated financial statements reflect all necessary adjustments, which are of a normal recurring nature, for a fair presentation of such data. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such SEC rules and regulations. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of hhgregg and the notes thereto for the fiscal year ended March 31, 2014, included in the Company’s Annual Report on Form 10-K filed with the SEC on May 20, 2014. | |
The consolidated results of operations, financial position and cash flows for interim periods are not necessarily indicative of those to be expected for a full year. The Company has made a number of estimates and assumptions relating to the assets and liabilities and the reporting of sales and expenses to prepare these unaudited condensed consolidated financial statements in conformity with GAAP. Actual results could differ from those estimates. | |
Principles of Consolidation | |
The unaudited condensed consolidated financial statements include the accounts of hhgregg and its wholly-owned subsidiary, Gregg Appliances, Inc. (“Gregg Appliances”). Gregg Appliances has a wholly-owned subsidiary, HHG Distributing LLC (“HHG Distributing”), which has no assets or operations. | |
New Accounting Standards | |
In April 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. This guidance states that the disposal of a component of an entity is to be reported in discontinued operations only if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. The pronouncement also requires additional disclosures regarding individually significant disposals of components that do not meet the criteria to be recognized as a discontinued operation as well as additional and expanded disclosures. The guidance will be effective prospectively for interim and annual periods beginning on or after December 15, 2014, with early adoption permitted, but only for disposals (or classifications as held for sale) that have not been reported in financial statements previously issued or available for issuance. The Company does not expect this standard to have a material impact on the Company's consolidated financial statements upon adoption. | |
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606), to clarify the principles used to recognize revenue for all | |
entities. The new guidance is effective for annual and interim periods beginning after December 15, 2016, with no early adoption permitted. The Company is currently evaluating the impact, if any, the adoption of this guidance will have on its financial position, results of operations or cash flows. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended |
Jun. 30, 2014 | |
Fair Value Disclosures [Abstract] | ' |
Fair Value Measurements | ' |
Fair Value Measurements | |
The carrying amounts of cash and cash equivalents, accounts receivable—trade, accounts receivable—other, accounts payable and customer deposits approximate fair value because of the short maturity of these instruments. Any outstanding amount on the Company’s line of credit approximates fair value as the interest rate is market based. |
Property_and_Equipment
Property and Equipment | 3 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property and Equipment | ' | |||||||
Property and Equipment | ||||||||
Property and equipment consisted of the following at June 30, 2014 and March 31, 2014 (in thousands): | ||||||||
June 30, 2014 | March 31, 2014 | |||||||
Machinery and equipment | $ | 28,361 | $ | 28,478 | ||||
Store fixtures and furniture | 182,131 | 180,799 | ||||||
Vehicles | 2,206 | 2,207 | ||||||
Signs | 19,640 | 19,545 | ||||||
Leasehold improvements | 180,871 | 178,888 | ||||||
Construction in progress | 8,831 | 8,167 | ||||||
422,040 | 418,084 | |||||||
Less accumulated depreciation and amortization | (233,811 | ) | (224,202 | ) | ||||
Net property and equipment | $ | 188,229 | $ | 193,882 | ||||
Net_Income_Loss_per_Share
Net Income (Loss) per Share | 3 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Net Income (Loss) per Share | ' | |||||||
Net Loss per Share | ||||||||
Net loss per basic and diluted share is calculated based on the weighted-average number of outstanding common shares. When the Company reports net income, the calculation of net income per diluted share excludes shares underlying outstanding stock options and restricted stock units with exercise prices that exceed the average market price of the Company’s common stock for the period and certain options and restricted stock units with unrecognized compensation cost, as the effect would be antidilutive. Potential dilutive common shares are composed of shares of common stock issuable upon the exercise of stock options and restricted stock units. For the three months ended June 30, 2014 and 2013, the diluted loss per common share calculation represents the weighted average common shares outstanding with no additional dilutive shares as the Company incurred a net loss for the respective periods and such shares would be antidilutive. | ||||||||
The following table presents net loss per basic and diluted share for the three months ended June 30, 2014 and 2013 (in thousands, except share and per share amounts): | ||||||||
Three Months Ended | ||||||||
June 30, 2014 | June 30, 2013 | |||||||
Net loss (A) | $ | (10,269 | ) | $ | (1,260 | ) | ||
Weighted average outstanding shares of common stock (B) | 28,444,948 | 31,263,226 | ||||||
Dilutive effect of employee stock options and restricted stock units | — | — | ||||||
Common stock and potential dilutive common shares (C) | 28,444,948 | 31,263,226 | ||||||
Net loss per share: | ||||||||
Basic (A/B) | $ | (0.36 | ) | $ | (0.04 | ) | ||
Diluted (A/C) | $ | (0.36 | ) | $ | (0.04 | ) | ||
Antidilutive shares not included in the net loss per diluted share calculation for the three months ended June 30, 2014 and 2013 were 3,527,896 and 2,006,645, respectively. |
Inventories
Inventories | 3 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
Inventories | ||||||||
Net merchandise inventories consisted of the following at June 30, 2014 and March 31, 2014 (in thousands): | ||||||||
June 30, 2014 | March 31, 2014 | |||||||
Appliances | $ | 169,660 | $ | 134,053 | ||||
Consumer electronics | 139,890 | 108,193 | ||||||
Computers and tablets | 31,144 | 36,039 | ||||||
Home products | 23,558 | 20,257 | ||||||
Net merchandise inventory | $ | 364,252 | $ | 298,542 | ||||
Debt
Debt | 3 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Debt | ' | |||||||
Debt | ||||||||
A summary of debt at June 30, 2014 and March 31, 2014 is as follows (in thousands): | ||||||||
June 30, 2014 | March 31, 2014 | |||||||
Line of credit | $ | — | $ | — | ||||
On July 29, 2013, Gregg Appliances entered into Amendment No. 1 to the Amended and Restated Loan and Security Agreement (the “Amended Facility”) to increase the maximum credit available to $400 million from $300 million, subject to borrowing base availability, and extend the term of the facility to expire on July 29, 2018. | ||||||||
Interest on borrowings (other than Eurodollar rate borrowings) is payable monthly at a fluctuating rate based on the bank’s prime rate or LIBOR plus an applicable margin based on the average quarterly excess availability. Interest on Eurodollar rate borrowings is payable on the last day of each “interest period” applicable to such borrowing or on the three month anniversary of the beginning of such “interest period” for interest periods greater than three months. The unused line rate is determined based on the amount of the daily average of the outstanding borrowings for the immediately preceding calendar quarter period (the “Daily Average”). For a Daily Average greater than or equal to 50% of the defined borrowing base, the unused line rate is 0.25%. For a Daily Average less than 50% of the defined borrowing base, the unused line rate is 0.375%. The Amended Facility is guaranteed by Gregg Appliances’ wholly-owned subsidiary, HHG Distributing, which has no assets or operations. The guarantee is full and unconditional and Gregg Appliances has no other subsidiaries. | ||||||||
Pursuant to the Amended Facility, the borrowing base is equal to the sum of (i) 90% of the amount of the eligible commercial accounts, (ii) 90% of the amount of eligible commercial and credit card receivables of Gregg Appliances and (iii) 90% of the net recovery percentage multiplied by the value of eligible inventory consistent with the most recent appraisal of such eligible inventory. | ||||||||
Under the Amended Facility, Gregg Appliances is not required to comply with any financial maintenance covenant unless “excess availability” is less than the greater of (i) 10.0% of the lesser of (A) the defined borrowing base or (B) the defined maximum credit or (ii) $20.0 million during the continuance of which event Gregg Appliances is subject to compliance with a fixed charge coverage ratio of 1.0 to 1.0. | ||||||||
Pursuant to the Amended Facility, if Gregg Appliances has “excess availability” of less than 12.5% of the lesser of (A) the defined borrowing base or (B) the defined maximum credit, it may, in certain circumstances more specifically described in the Amended Facility, become subject to cash dominion control. | ||||||||
The Amended Facility places limitations on the ability of Gregg Appliances to, among other things, incur debt, create other liens on its assets, make investments, sell assets, pay dividends, undertake transactions with affiliates, enter into merger transactions, enter into unrelated businesses, open collateral locations outside of the United States, or enter into consignment assignments or floor plan financing arrangements. The Amended Facility also contains various customary representations and warranties, financial and collateral reporting requirements and other affirmative and negative covenants. Gregg Appliances was in compliance with the restrictions and covenants of the Amended Facility at June 30, 2014. | ||||||||
As of June 30, 2014, Gregg Appliances had no borrowings outstanding under the Amended Facility and $5.3 million of letters of credit outstanding, which expire through December 31, 2014. The total borrowing availability under the Amended Facility was $212.4 million as of June 30, 2014. The interest rate based on the bank’s prime rate as of June 30, 2014 was 3.75%. | ||||||||
As of March 31, 2014, Gregg Appliances had no borrowings outstanding under the Amended Facility and $5.3 million of letters of credit outstanding, which expire through December 31, 2014. The total borrowing availability under the Amended Facility was $169.5 million as of March 31, 2014. The interest rate based on the bank’s prime rate as of March 31, 2014 was 3.75%. |
Stockbased_Compensation
Stock-based Compensation | 3 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||
Stock-based Compensation | ' | ||||||
Stock-based Compensation | |||||||
Stock Options | |||||||
The following table summarizes the activity under the Company’s Stock Option Plans for the three months ended June 30, 2014: | |||||||
Number of Options | Weighted Average | ||||||
Outstanding | Exercise Price | ||||||
per Share | |||||||
Outstanding at March 31, 2014 | 3,232,208 | $ | 13.61 | ||||
Granted | 915,640 | 9.09 | |||||
Exercised | — | — | |||||
Canceled | (47,298 | ) | 13.23 | ||||
Expired | (109,668 | ) | 13.11 | ||||
Outstanding at June 30, 2014 | 3,990,882 | $ | 12.59 | ||||
During the three months ended June 30, 2014, the Company granted options for 915,640 shares of common stock under the 2007 Equity Incentive Plan to certain employees and directors of the Company. The options vest in equal amounts over a three-year period beginning on the first anniversary of the date of grant and expire 7 years from the date of the grant. The fair value of each option grant is estimated on the date of grant and is amortized on a straight-line basis over the vesting period. | |||||||
The weighted average estimated fair value of options granted to employees and directors under the 2007 Equity Incentive Plan during the three months ended June 30, 2014 was $4.28, calculated using the Black-Scholes model with the following weighted average assumptions: | |||||||
Risk-free interest rate | 1.31% - 1.47% | ||||||
Dividend yield | — | ||||||
Expected volatility | 57 | % | |||||
Expected life of the options (years) | 4.5 | ||||||
Forfeitures | 8.4 | % | |||||
Time Vested Restricted Stock Units | |||||||
During the three months ended June 30, 2014, the Company granted 40,950 time vested restricted stock units (“RSUs”) under the 2007 Equity Incentive Plan to certain directors of the Company. The RSUs vest three years from the date of grant. Upon vesting, the outstanding number of RSUs will be converted into shares of common stock. RSUs are forfeited if they have not vested before the participant ceases to serve as director for any reason other than death or total permanent disability or certain other circumstances as described in such participant’s RSU agreement. Upon death or disability, the participant is entitled to receive a portion of the award based upon the period of time lapsed between the date of grant of the RSU and the termination of service as a director. The fair value of RSU awards is based on the Company’s stock price at the close of the market on the date of grant. The weighted average grant date fair value for the RSUs issued during the three months ended June 30, 2014 was $9.17. | |||||||
The following table summarizes RSU vesting activity for the three months ended June 30, 2014: | |||||||
Shares | Weighted | ||||||
Average | |||||||
Grant-Date | |||||||
Fair Value | |||||||
Nonvested at March 31, 2014 | 143,503 | $ | 12.72 | ||||
Granted | 40,950 | 9.17 | |||||
Vested | (50,500 | ) | 14.2 | ||||
Forfeited | (1,400 | ) | 10.86 | ||||
Nonvested at June 30, 2014 | 132,553 | $ | 11.08 | ||||
Share_Repurchase_Program
Share Repurchase Program | 3 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Share Repurchase Program Disclosure [Abstract] | ' | |||||||
Share Repurchase Program | ' | |||||||
Share Repurchase Program | ||||||||
On May 14, 2014, the Company’s Board of Directors authorized a new share repurchase program, which became effective on May 20, 2014 (the “May 2014 Program”), allowing the Company to repurchase up to $40 million of its common stock. The May 2014 Program allows the Company to purchase its common stock on the open market or in privately negotiated transactions in accordance with applicable laws and regulations, and expires on May 20, 2015. The previous share repurchase program expired on May 19, 2014. | ||||||||
The following table shows the number and cost of shares repurchased during the three months ended June 30, 2014 and 2013, respectively ($ in thousands): | ||||||||
Three Months Ended | ||||||||
30-Jun-14 | 30-Jun-13 | |||||||
May 2014 Program | ||||||||
Number of shares repurchased | 102,705 | — | ||||||
Cost of shares repurchased | $ | 976 | $ | — | ||||
May 2013 Program | ||||||||
Number of shares repurchased | — | 698,369 | ||||||
Cost of shares repurchased | $ | — | $ | 10,311 | ||||
As of June 30, 2014, the Company had $39.0 million remaining under the May 2014 Program. The repurchased shares are classified as treasury stock within stockholders’ equity in the accompanying condensed consolidated balance sheets. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Description of Business | ' |
Description of Business | |
hhgregg is an appliance, electronics and furniture retailer that is committed to providing customers with a truly differentiated purchase experience through superior customer service, knowledgeable sales associates and the highest quality product selections. Founded in 1955, hhgregg is a multi-regional retailer with 229 stores in 20 states that also offers market-leading global and local brands at value prices nationwide via hhgregg.com. The Company operates in one reportable segment. | |
Interim FInancial Information | ' |
Interim Financial Information | |
The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). In the opinion of the Company’s management, these unaudited condensed consolidated financial statements reflect all necessary adjustments, which are of a normal recurring nature, for a fair presentation of such data. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such SEC rules and regulations. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of hhgregg and the notes thereto for the fiscal year ended March 31, 2014, included in the Company’s Annual Report on Form 10-K filed with the SEC on May 20, 2014. | |
The consolidated results of operations, financial position and cash flows for interim periods are not necessarily indicative of those to be expected for a full year. The Company has made a number of estimates and assumptions relating to the assets and liabilities and the reporting of sales and expenses to prepare these unaudited condensed consolidated financial statements in conformity with GAAP. Actual results could differ from those estimates. | |
Principles of Consolidation | ' |
Principles of Consolidation | |
The unaudited condensed consolidated financial statements include the accounts of hhgregg and its wholly-owned subsidiary, Gregg Appliances, Inc. (“Gregg Appliances”). Gregg Appliances has a wholly-owned subsidiary, HHG Distributing LLC (“HHG Distributing”), which has no assets or operations. | |
New Accounting Pronouncements, Policy | ' |
New Accounting Standards | |
In April 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. This guidance states that the disposal of a component of an entity is to be reported in discontinued operations only if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. The pronouncement also requires additional disclosures regarding individually significant disposals of components that do not meet the criteria to be recognized as a discontinued operation as well as additional and expanded disclosures. The guidance will be effective prospectively for interim and annual periods beginning on or after December 15, 2014, with early adoption permitted, but only for disposals (or classifications as held for sale) that have not been reported in financial statements previously issued or available for issuance. The Company does not expect this standard to have a material impact on the Company's consolidated financial statements upon adoption. | |
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606), to clarify the principles used to recognize revenue for all | |
entities. The new guidance is effective for annual and interim periods beginning after December 15, 2016, with no early adoption permitted. The Company is currently evaluating the impact, if any, the adoption of this guidance will have on its financial position, results of operations or cash flows. |
Property_and_Equipment_Tables
Property and Equipment (Tables) | 3 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property and Equipment | ' | |||||||
Property and equipment consisted of the following at June 30, 2014 and March 31, 2014 (in thousands): | ||||||||
June 30, 2014 | March 31, 2014 | |||||||
Machinery and equipment | $ | 28,361 | $ | 28,478 | ||||
Store fixtures and furniture | 182,131 | 180,799 | ||||||
Vehicles | 2,206 | 2,207 | ||||||
Signs | 19,640 | 19,545 | ||||||
Leasehold improvements | 180,871 | 178,888 | ||||||
Construction in progress | 8,831 | 8,167 | ||||||
422,040 | 418,084 | |||||||
Less accumulated depreciation and amortization | (233,811 | ) | (224,202 | ) | ||||
Net property and equipment | $ | 188,229 | $ | 193,882 | ||||
Net_Income_Loss_per_Share_Tabl
Net Income (Loss) per Share (Tables) | 3 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Net Income Loss Per Basic and Diluted Share | ' | |||||||
The following table presents net loss per basic and diluted share for the three months ended June 30, 2014 and 2013 (in thousands, except share and per share amounts): | ||||||||
Three Months Ended | ||||||||
June 30, 2014 | June 30, 2013 | |||||||
Net loss (A) | $ | (10,269 | ) | $ | (1,260 | ) | ||
Weighted average outstanding shares of common stock (B) | 28,444,948 | 31,263,226 | ||||||
Dilutive effect of employee stock options and restricted stock units | — | — | ||||||
Common stock and potential dilutive common shares (C) | 28,444,948 | 31,263,226 | ||||||
Net loss per share: | ||||||||
Basic (A/B) | $ | (0.36 | ) | $ | (0.04 | ) | ||
Diluted (A/C) | $ | (0.36 | ) | $ | (0.04 | ) |
Inventories_Tables
Inventories (Tables) | 3 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Net Merchandise Inventories | ' | |||||||
Net merchandise inventories consisted of the following at June 30, 2014 and March 31, 2014 (in thousands): | ||||||||
June 30, 2014 | March 31, 2014 | |||||||
Appliances | $ | 169,660 | $ | 134,053 | ||||
Consumer electronics | 139,890 | 108,193 | ||||||
Computers and tablets | 31,144 | 36,039 | ||||||
Home products | 23,558 | 20,257 | ||||||
Net merchandise inventory | $ | 364,252 | $ | 298,542 | ||||
Debt_Tables
Debt (Tables) | 3 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Summary of Debt | ' | |||||||
A summary of debt at June 30, 2014 and March 31, 2014 is as follows (in thousands): | ||||||||
June 30, 2014 | March 31, 2014 | |||||||
Line of credit | $ | — | $ | — | ||||
Stockbased_Compensation_Tables
Stock-based Compensation (Tables) | 3 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||
Summary of Stock Option Plans Activity | ' | ||||||
The following table summarizes the activity under the Company’s Stock Option Plans for the three months ended June 30, 2014: | |||||||
Number of Options | Weighted Average | ||||||
Outstanding | Exercise Price | ||||||
per Share | |||||||
Outstanding at March 31, 2014 | 3,232,208 | $ | 13.61 | ||||
Granted | 915,640 | 9.09 | |||||
Exercised | — | — | |||||
Canceled | (47,298 | ) | 13.23 | ||||
Expired | (109,668 | ) | 13.11 | ||||
Outstanding at June 30, 2014 | 3,990,882 | $ | 12.59 | ||||
Black Scholes Model Weighted Average Assumptions | ' | ||||||
The weighted average estimated fair value of options granted to employees and directors under the 2007 Equity Incentive Plan during the three months ended June 30, 2014 was $4.28, calculated using the Black-Scholes model with the following weighted average assumptions: | |||||||
Risk-free interest rate | 1.31% - 1.47% | ||||||
Dividend yield | — | ||||||
Expected volatility | 57 | % | |||||
Expected life of the options (years) | 4.5 | ||||||
Forfeitures | 8.4 | % | |||||
Summary of RSU Vesting Activity | ' | ||||||
The following table summarizes RSU vesting activity for the three months ended June 30, 2014: | |||||||
Shares | Weighted | ||||||
Average | |||||||
Grant-Date | |||||||
Fair Value | |||||||
Nonvested at March 31, 2014 | 143,503 | $ | 12.72 | ||||
Granted | 40,950 | 9.17 | |||||
Vested | (50,500 | ) | 14.2 | ||||
Forfeited | (1,400 | ) | 10.86 | ||||
Nonvested at June 30, 2014 | 132,553 | $ | 11.08 | ||||
Share_Repurchase_Program_Table
Share Repurchase Program (Tables) | 3 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Share Repurchase Program Disclosure [Abstract] | ' | |||||||
Number and cost of shares repurchased | ' | |||||||
The following table shows the number and cost of shares repurchased during the three months ended June 30, 2014 and 2013, respectively ($ in thousands): | ||||||||
Three Months Ended | ||||||||
30-Jun-14 | 30-Jun-13 | |||||||
May 2014 Program | ||||||||
Number of shares repurchased | 102,705 | — | ||||||
Cost of shares repurchased | $ | 976 | $ | — | ||||
May 2013 Program | ||||||||
Number of shares repurchased | — | 698,369 | ||||||
Cost of shares repurchased | $ | — | $ | 10,311 | ||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) | 3 Months Ended |
Jun. 30, 2014 | |
Segment | |
Accounting Policies [Abstract] | ' |
Number of reportable segments | 1 |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Gross property and equipment | $422,040 | $418,084 |
Less accumulated depreciation and amortization | -233,811 | -224,202 |
Net property and equipment | 188,229 | 193,882 |
Machinery and equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Gross property and equipment | 28,361 | 28,478 |
Furniture and Fixtures [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Gross property and equipment | 182,131 | 180,799 |
Vehicles [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Gross property and equipment | 2,206 | 2,207 |
Signs [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Gross property and equipment | 19,640 | 19,545 |
Leasehold improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Gross property and equipment | 180,871 | 178,888 |
Construction in progress [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Gross property and equipment | $8,831 | $8,167 |
Net_Income_Loss_per_Share_Deta
Net Income (Loss) per Share (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' |
Net loss (A) | ($10,269) | ($1,260) |
Weighted average outstanding shares of common stock (B) | 28,444,948 | 31,263,226 |
Dilutive effect of employee stock options and restricted stock units | 0 | 0 |
Common stock and potential dilutive common shares (C) | 28,444,948 | 31,263,226 |
Net loss per share: | ' | ' |
Basic (in dollars per share) | ($0.36) | ($0.04) |
Diluted (A/C) (in dollars per share) | ($0.36) | ($0.04) |
Net_Income_Loss_per_Share_Addi
Net Income (Loss) per Share (Additional Information) (Details) | 3 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Earnings Per Share [Abstract] | ' | ' |
Antidilutive shares not included in the net income per diluted share calculation | 3,527,896 | 2,006,645 |
Inventories_Details
Inventories (Details) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | ||
Schedule of Inventory [Line Items] | ' | ' |
Net merchandise inventory | $364,252 | $298,542 |
Appliances [Member] | ' | ' |
Schedule of Inventory [Line Items] | ' | ' |
Net merchandise inventory | 169,660 | 134,053 |
Consumer electronics [Member] | ' | ' |
Schedule of Inventory [Line Items] | ' | ' |
Net merchandise inventory | 139,890 | 108,193 |
Computing and wireless [Member] | ' | ' |
Schedule of Inventory [Line Items] | ' | ' |
Net merchandise inventory | 31,144 | 36,039 |
Home products [Member] | ' | ' |
Schedule of Inventory [Line Items] | ' | ' |
Net merchandise inventory | $23,558 | $20,257 |
Debt_Summary_of_Debt_Details
Debt (Summary of Debt) (Details) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 |
Line of Credit Facility [Line Items] | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | $400,000,000 | $300,000,000 |
Revolving Credit Facility [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Line of Credit | $0 | $0 |
Debt_Additional_Information_De
Debt (Additional Information) (Details) (USD $) | 3 Months Ended | |
Jun. 30, 2014 | Mar. 31, 2014 | |
Debt Instrument [Line Items] | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | $400,000,000 | $300,000,000 |
Line of credit facility, maturity date | 29-Jul-18 | ' |
Line of credit facility borrowing base percentage of eligible commercial accounts | 90.00% | ' |
Line of credit facility borrowing base percentage of the eligible commercial and credit card receivables | 90.00% | ' |
Line of credit facility borrowing base percentage of eligible inventory | 90.00% | ' |
Financial maintenance covenant, percentage of excess availability | 10.00% | ' |
Financial maintenance covenant, excess availability | 20,000,000 | ' |
Revolving Credit Facility [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Financial maintenance covenant, percentage of excess availability | 12.50% | ' |
Line of Credit | 0 | 0 |
Line of credit facility, total borrowing availability | 212,400,000 | 169,500,000 |
Line of credit, interest rate | 3.75% | 3.75% |
Letters of Credit Outstanding, Amount | $5,300,000 | $5,300,000 |
Lower Limit [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Unused line rate for a daily average greater than or equal to 50% of the defined borrowing base | 0.25% | ' |
Upper Limit [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Unused line rate for a daily average greater than or equal to 50% of the defined borrowing base | 0.38% | ' |
Line of Credit [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Financial maintenance covenant, fixed charge coverage ratio | 1 | ' |
Stockbased_Compensation_Summar
Stock-based Compensation (Summary of Stock Option Plans Activity) (Details) (Stock Options [Member], USD $) | 3 Months Ended |
Jun. 30, 2014 | |
Stock Options [Member] | ' |
Number of Options Outstanding | ' |
Beginning Balance | 3,232,208 |
Granted | 915,640 |
Exercised | 0 |
Canceled | -47,298 |
Expired | -109,668 |
Ending Balance | 3,990,882 |
Weighted Average Exercise Price per Share | ' |
Beginning Balance | $13.61 |
Granted | $9.09 |
Exercised | $0 |
Canceled | $13.23 |
Expired | $13.11 |
Ending Balance | $12.59 |
Stockbased_Compensation_Additi
Stock-based Compensation (Additional Information) (Details) (USD $) | 3 Months Ended |
Jun. 30, 2014 | |
Stock Options [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Options, granted | 915,640 |
Stock Options [Member] | Equity Incentive Plan 2007 [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Options, vesting period | '3 years |
Options, expiration term | '7 years |
Options, weighted-average estimated fair value of options granted | 4.28 |
Time Vested Restricted Stock Units [Member] | Equity Incentive Plan 2007 [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Restricted stock units, granted | 40,950 |
Restricted stock units, vesting term | '3 years |
Restricted stock units, weighted average grant date fair value | 9.17 |
Stockbased_Compensation_Black_
Stock-based Compensation (Black Scholes Model Weighted Average Assumptions) (Details) | 3 Months Ended |
Jun. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Risk-free interest rate, minimum | 0.00% |
Risk-free interest rate, maximum | 1.47% |
Dividend yield | 0.00% |
Expected volatility | 57.00% |
Expected life of the options (years) | '4 years 6 months |
Forfeitures | 8.40% |
Stockbased_Compensation_Summar1
Stock-based Compensation (Summary of RSU Vesting Activity) (Details) (Restricted Stock Units (RSUs) [Member], USD $) | 3 Months Ended |
Jun. 30, 2014 | |
Restricted Stock Units (RSUs) [Member] | ' |
Shares | ' |
Beginning Balance | 143,503 |
Granted | 40,950 |
Vested | -50,500 |
Forfeited | -1,400 |
Ending Balance | 132,553 |
Weighted Average Grant-Date Fair Value | ' |
Beginning Balance | $12.72 |
Granted | $9.17 |
Vested | $14.20 |
Forfeited | $10.86 |
Ending Balance | $11.08 |
Share_Repurchase_Program_Numbe
Share Repurchase Program (Number and Cost of Share Repurchased) (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Equity, Class of Treasury Stock [Line Items] | ' | ' |
Cost of shares repurchased | $976 | ' |
May 2013 Program [Member] | ' | ' |
Equity, Class of Treasury Stock [Line Items] | ' | ' |
Number of shares repurchased | 102,705 | 0 |
Cost of shares repurchased | 976 | 0 |
May 2012 Program [Member] | ' | ' |
Equity, Class of Treasury Stock [Line Items] | ' | ' |
Number of shares repurchased | 0 | 698,369 |
Cost of shares repurchased | $0 | $10,311 |
Share_Repurchase_Program_Addit
Share Repurchase Program (Additional Information) (Details) (USD $) | 1 Months Ended | |
In Millions, unless otherwise specified | 31-May-13 | Jun. 30, 2014 |
Share Repurchase Program Disclosure [Abstract] | ' | ' |
Common stock share repurchase program, authorized amount | ' | $40 |
Common stock share repurchase program, expiration date | 20-May-15 | ' |
Common stock share repurchase program, remaining authorized amount | ' | $39 |