Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Dec. 31, 2013 | Jan. 31, 2014 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Dec-13 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'BNNY | ' |
Entity Registrant Name | 'ANNIE'S, INC. | ' |
Entity Central Index Key | '0001431897 | ' |
Current Fiscal Year End Date | '--03-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 16,998,675 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ' | ' |
Cash | $2,986 | $4,930 |
Accounts receivable, net of allowance | 18,796 | 20,015 |
Inventory | 23,407 | 15,147 |
Deferred tax assets | 2,565 | 2,558 |
Income tax receivable | 988 | 588 |
Prepaid expenses and other current assets | 5,572 | 5,050 |
Total current assets | 54,314 | 48,288 |
Restricted cash | 300 | 0 |
Property and equipment, net | 6,206 | 6,138 |
Goodwill | 30,809 | 30,809 |
Intangible assets, net | 1,071 | 1,116 |
Deferred tax assets, long-term | 3,553 | 3,704 |
Other non-current assets | 142 | 157 |
Total assets | 96,395 | 90,212 |
CURRENT LIABILITIES: | ' | ' |
Accounts payable | 6,784 | 4,342 |
Accrued liabilities | 9,104 | 12,021 |
Total current liabilities | 15,888 | 16,363 |
Credit facility | 0 | 7,007 |
Other non-current liabilities | 870 | 913 |
Total liabilities | 16,758 | 24,283 |
Commitments and contingencies (Note 7) | ' | ' |
STOCKHOLDERS' EQUITY | ' | ' |
Common stock | 17 | 17 |
Additional paid-in capital | 96,528 | 93,190 |
Accumulated deficit | -16,908 | -27,278 |
Total stockholders' equity | 79,637 | 65,929 |
Total liabilities and stockholders' equity | $96,395 | $90,212 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Net sales | $46,177 | $36,283 | $143,867 | $117,262 |
Cost of sales | 27,951 | 23,267 | 88,978 | 72,539 |
Gross profit | 18,226 | 13,016 | 54,889 | 44,723 |
Operating expenses: | ' | ' | ' | ' |
Selling, general and administrative expenses | 13,421 | 10,687 | 37,286 | 32,437 |
Income from operations | 4,805 | 2,329 | 17,603 | 12,286 |
Interest expense | -80 | -40 | -255 | -120 |
Other income (expense), net | 30 | 31 | 88 | 116 |
Income before provision for income taxes | 4,755 | 2,320 | 17,436 | 12,282 |
Provision for income taxes | 1,966 | 919 | 7,066 | 4,965 |
Net income | $2,789 | $1,401 | $10,370 | $7,317 |
Net income per share | ' | ' | ' | ' |
-Basic (in dollars per share) | $0.16 | $0.08 | $0.61 | $0.43 |
-Diluted (in dollars per share) | $0.16 | $0.08 | $0.60 | $0.41 |
Weighted average shares of common stock outstanding used in computing net income per share | ' | ' | ' | ' |
-Basic (shares) | 16,937,139 | 17,249,536 | 16,901,089 | 17,085,833 |
-Diluted (shares) | 17,398,006 | 17,781,720 | 17,386,408 | 17,702,221 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statement of Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit |
In Thousands, except Share data | ||||
Beginning Balance at Mar. 31, 2013 | $65,929 | $17 | $93,190 | ($27,278) |
Beginning Balance (in shares) at Mar. 31, 2013 | ' | 16,849,016 | ' | ' |
Exercise of stock options (in shares) | 123,364 | 123,364 | ' | ' |
Exercise of stock options | 1,211 | ' | 1,211 | ' |
Excess tax benefit from stock-based compensation | 1,467 | ' | 1,467 | ' |
Stock-based compensation | 660 | ' | 660 | ' |
Net income | 10,370 | ' | ' | 10,370 |
Ending Balance at Dec. 31, 2013 | $79,637 | $17 | $96,528 | ($16,908) |
Ending Balance (in shares) at Dec. 31, 2013 | ' | 16,972,380 | ' | ' |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income | $10,370 | $7,317 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 1,035 | 749 |
Stock-based compensation | 660 | 677 |
Provision for doubtful accounts | 21 | 0 |
Excess tax benefit from stock-based compensation | -1,467 | -7,499 |
Accretion of imputed interest on purchase of intangible asset | 107 | 107 |
Change in fair value of convertible preferred stock warrant liability | 0 | 13 |
Amortization of deferred financing costs | 9 | 12 |
Gain (Loss) on Disposition of Property Plant Equipment | 1 | 0 |
Deferred taxes | 144 | 535 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable, net | 1,198 | 1,760 |
Inventory | -8,260 | -10,925 |
Income tax receivable | -400 | 425 |
Prepaid expenses, other current and non-current assets | -516 | 4,400 |
Accounts payable | 2,440 | 3,417 |
Related-party payable | 0 | -1,305 |
Accrued expenses and other non-current liabilities | -1,592 | 4,527 |
Net cash provided by operating activities | 3,750 | 4,210 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Purchase of property and equipment | -1,057 | -1,498 |
Increase (Decrease) in Restricted Cash | -300 | 0 |
Net cash used in investing activities | -1,357 | -1,498 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Proceeds from credit facility | 8,432 | 2,952 |
Payments to credit facility | -15,439 | -15,748 |
Proceeds from common shares issued in initial public offering, net of issuance costs | 0 | 11,146 |
Payment for intangible asset acquired by financing transaction | -8 | -7 |
Excess tax benefit from stock-based compensation | 1,467 | 7,499 |
Proceeds from exercises of stock options | 1,211 | 3,844 |
Net cash provided by (used in) financing activities | -4,337 | 9,686 |
NET INCREASE IN CASH | -1,944 | 12,398 |
CASH-Beginning of period | 4,930 | 562 |
CASH-End of period | 2,986 | 12,960 |
NONCASH INVESTING AND FINANCING ACTIVITIES: | ' | ' |
Purchase of property and equipment funded through accounts payable | 2 | 425 |
Conversion of convertible preferred stock into common stock | $0 | $81,373 |
Description_of_Business
Description of Business | 9 Months Ended |
Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Description of Business | ' |
Description of Business | |
Annie’s, Inc. (the “Company”), a Delaware corporation incorporated on April 28, 2004, is a natural and organic food company. The Company offers over 135 products in the following three product categories: meals; snacks; and dressings, condiments and other. The Company’s products are sold throughout the U.S. and Canada via a multi-channel distribution network that serves the mainstream grocery, mass merchandiser and natural retailer channels. The Company’s headquarters are located in Berkeley, California. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Summary of Significant Accounting Policies | ' | ||||||||
Summary of Significant Accounting Policies | |||||||||
Basis of Presentation and Consolidation | |||||||||
The accompanying interim condensed consolidated statements of operations for the three and nine months ended December 31, 2013 and 2012, the interim condensed consolidated balance sheets as of December 31, 2013 and March 31, 2013, the interim condensed consolidated statement of stockholders’ equity for the nine months ended December 31, 2013, and the interim condensed consolidated statements of cash flows for the nine months ended December 31, 2013 and 2012 are unaudited. These unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the applicable rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. These unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in Company’s Annual Report on Form 10-K filed with the SEC on June 14, 2013. The March 31, 2013 condensed consolidated balance sheet included herein was derived from the audited financial statements as of that date, but does not include all disclosures including notes required by U.S. GAAP for complete financial statements. | |||||||||
The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, reflect all adjustments of a normal recurring nature considered necessary to state fairly the Company's financial position as of December 31, 2013 and results of its operations for the three and nine months ended December 31, 2013 and 2012, and the cash flows for the nine months ended December 31, 2013 and 2012. The interim results for the nine months ended December 31, 2013 are not necessarily indicative of the results that may be expected for the year ending March 31, 2014. | |||||||||
The unaudited interim condensed consolidated financial statements include the accounts of the Company and its wholly owned direct and indirect subsidiaries, Annie’s Homegrown, Inc., Annie’s Enterprises, Inc., Napa Valley Kitchen, Inc. and Annie's Baking, LLC. All significant intercompany balances and transactions have been eliminated in consolidation. Certain reclassifications were made to the Company's prior financial statements to conform to the current year presentation. | |||||||||
Use of Estimates | |||||||||
The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of sales and expenses during the reported periods. Actual results could differ from those estimates. | |||||||||
Accounts Receivable and Concentration Risk | |||||||||
The Company manages credit risk through credit approvals, credit limits and monitoring procedures. The Company performs periodic credit evaluations of its customers and records an allowance for uncollectible accounts receivable based on a specific identification methodology. In addition, management may record an additional allowance based on the Company’s experience with accounts receivable aging categories. Accounts receivable are recorded net of allowances for trade discounts and doubtful accounts. The Company had $21,000 for allowance for doubtful accounts as of December 31, 2013. The Company had no allowance for doubtful accounts as of March 31, 2013. | |||||||||
Customers with 10% or more of the Company’s net sales consist of the following: | |||||||||
Net Sales | |||||||||
Customer A | Customer B | Customer C | |||||||
Three Months Ended December 31, | |||||||||
2013 | 22 | % | 18 | % | 11 | % | |||
2012 | 25 | % | 17 | % | 11 | % | |||
Nine Months Ended December 31, | |||||||||
2013 | 21 | % | 15 | % | 13 | % | |||
2012 | 26 | % | 13 | % | 12 | % | |||
As of December 31, 2013, two customers represented 31% and 18%, respectively, of accounts receivable. As of March 31, 2013, three customers represented 36%, 26%, and 10%, respectively, of accounts receivable. | |||||||||
Fair Value of Financial Instruments | |||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The accounting guidance establishes a three-tiered hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: | |||||||||
Level 1—Quoted prices in active markets for identical assets or liabilities. | |||||||||
Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |||||||||
Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | |||||||||
The categorization of a financial instrument within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. | |||||||||
The carrying amounts of the Company’s financial instruments, including accounts receivable, accounts payable and accrued liabilities, approximate fair value due to their relatively short maturities. Upon consummation of the Company's initial public offering on April 2, 2012, prior to the automatic conversion of the convertible preferred stock warrant into a common stock warrant, it was remeasured and the change in fair value was recorded as a non-cash charge in other income (expense), net and the related liability was reclassified to additional paid-in capital (see Note 8). | |||||||||
Inventories | |||||||||
Inventories are recorded at the lower of cost (determined under the first-in-first-out method) or market. Write downs are provided for finished goods expected to become nonsaleable due to age and provisions are specifically made for slow-moving or obsolete raw ingredients and packaging material. The Company also adjusts the carrying value of its inventories when it believes that the net realizable value is less than the carrying value. These write-downs are measured as the difference between the cost of the inventory, including estimated costs to complete, and estimated selling prices, including cost of selling. These charges are recorded as a component of cost of sales. | |||||||||
Property and Equipment | |||||||||
Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or estimated useful lives. Maintenance and repairs are charged to expense as incurred. Assets not yet placed in use are not depreciated. | |||||||||
The useful lives of the property and equipment are as follows: | |||||||||
Equipment and automotive | 3 to 7 years | ||||||||
Software | 3 to 7 years | ||||||||
Plates and dies | 3 years | ||||||||
Leasehold improvements | Shorter of lease term or estimated useful life | ||||||||
The Company capitalizes certain internal and external costs related to the development and enhancement of the Company’s internal-use software. Capitalized internal-use software development costs are included in property and equipment on the accompanying condensed consolidated balance sheets. As of December 31, 2013, the Company had $2.3 million capitalized software development costs, net of accumulated amortization, including $0.6 million in construction-in-progress. As of March 31, 2013, the Company had $2.1 million capitalized software development costs, net of accumulated amortization, including $0.4 million in construction-in-progress. | |||||||||
Intangible Assets | |||||||||
Intangible assets with determinable lives are amortized using the straight-line method. | |||||||||
Freight and Warehousing Costs | |||||||||
Freight and warehousing costs are included in selling, general and administrative expenses in the condensed consolidated statements of operations. Freight and warehousing costs primarily consist of costs associated with moving finished products to customers, including costs associated with the Company’s distribution center, route delivery costs and the cost of shipping products to customers through third-party carriers. Freight and warehousing costs recorded as a component of selling, general and administrative expenses were $1.8 million and $1.4 million for the three months ended December 31, 2013 and 2012, respectively, and were $5.2 million and $4.2 million for the nine months ended December 31, 2013 and 2012, respectively. | |||||||||
Research and Development (R&D) Costs | |||||||||
R&D costs consist of the costs incurred to develop new products and are expensed as incurred. These costs include consumer research, prototype development, materials and resources to conduct trial production runs, package development and employee-related costs for personnel responsible for product innovation. R&D costs recorded as a component of selling, general and administrative expenses were $0.5 million and $0.6 million for the three months ended December 31, 2013 and 2012, respectively, and were $1.7 million and $2.1 million for the nine months ended December 31, 2013 and 2012, respectively. | |||||||||
Advertising Costs | |||||||||
Advertising costs include the costs of producing and communicating advertisements. The costs of producing advertisements are expensed as incurred and the costs of communicating advertising are expensed over the period of communication. Total advertising costs for the three months ended December 31, 2013 and 2012 included in selling, general and administrative expenses were $0.4 million and $0.2 million, respectively, and were $1.2 million and $0.6 million for the nine months ended December 31, 2013 and 2012, respectively. | |||||||||
Product Recall | |||||||||
The Company establishes reserves for product recalls on a product-specific basis when circumstances giving rise to the recall become known. The Company, when establishing reserves for a product recall, considers cost estimates for any fees and incentives to customers for their effort to return the product, freight and destruction charges for returned products, warehouse and inspection fees, repackaging materials, point-of-sale materials and other costs including costs incurred by contract manufacturers. Additionally, the Company estimates product returns from consumers and customers across distribution channels, utilizing third-party data and other assumptions. These factors are updated and re-evaluated each period and the related reserves are adjusted when these factors indicate that the recall reserves are either insufficient to cover or exceed the estimated product recall expenses. | |||||||||
Significant changes in the assumptions used to develop estimates for product recall reserves could affect key financial information, including accounts receivable, inventory, accrued liabilities, net sales, gross profit, operating expenses and net income. In addition, estimating product recall reserves requires a high degree of judgment in areas such as estimating consumer returns, shelf and in-stock inventory at retailers across distribution channels, fees and incentives to be earned by customers for their effort to return the products, future freight rates and consumers’ claims. |
Initial_Public_Offering_IPO_No
Initial Public Offering (IPO) (Notes) | 9 Months Ended |
Dec. 31, 2013 | |
Initial Public Offering Disclosures [Abstract] | ' |
Initial Public Offering (IPO) | ' |
Initial Public Offering (IPO) | |
On April 2, 2012, the Company closed its IPO, in which it sold 950,000 shares at an offering price of $19.00 per share and raised $11.1 million in net proceeds after deducting underwriting discounts and commissions of $1.3 million and other offering expenses of $5.6 million. In addition, certain of the Company’s stockholders, including funds affiliated with Solera Capital, LLC, sold 4.8 million shares at the $19.00 offering price in the IPO. The Company sometimes refers to Solera Capital, LLC and its affiliates as Solera in this Quarterly Report on Form 10-Q. | |
Immediately prior to the closing of the IPO, the outstanding shares of convertible preferred stock were automatically converted into 15,221,571 shares of common stock, the Company’s outstanding convertible preferred stock warrant was automatically converted into a common stock warrant to purchase a total of 80,560 shares of common stock and the related convertible preferred stock warrant liability was reclassified to additional paid-in capital. |
Balance_Sheet_Components
Balance Sheet Components | 9 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
Supplemental Balance Sheet Disclosures [Abstract] | ' | |||||||||||||||||||||||||
Balance Sheet Components | ' | |||||||||||||||||||||||||
Balance Sheet Components | ||||||||||||||||||||||||||
Inventory | ||||||||||||||||||||||||||
Inventory is comprised of the following (in thousands): | ||||||||||||||||||||||||||
December 31, | March 31, | |||||||||||||||||||||||||
2013 | 2013 | |||||||||||||||||||||||||
Raw materials | $ | 2,659 | $ | 1,391 | ||||||||||||||||||||||
Work in process | 1,494 | 2,142 | ||||||||||||||||||||||||
Finished goods | 19,254 | 11,614 | ||||||||||||||||||||||||
Inventory | $ | 23,407 | $ | 15,147 | ||||||||||||||||||||||
The increase in inventory levels as of December 31, 2013 reflects the buildup in advance of the fourth quarter, which historically has been the Company's peak sales season. | ||||||||||||||||||||||||||
Property and Equipment, Net | ||||||||||||||||||||||||||
Property and equipment, net are comprised of the following (in thousands): | ||||||||||||||||||||||||||
December 31, | March 31, | |||||||||||||||||||||||||
2013 | 2013 | |||||||||||||||||||||||||
Equipment and automotive | $ | 3,897 | $ | 2,959 | ||||||||||||||||||||||
Software | 2,570 | 2,410 | ||||||||||||||||||||||||
Leasehold improvements | 1,342 | 1,195 | ||||||||||||||||||||||||
Plates and dies | 333 | 244 | ||||||||||||||||||||||||
Total property and equipment | 8,142 | 6,808 | ||||||||||||||||||||||||
Less: Accumulated depreciation and amortization | (2,745 | ) | (1,760 | ) | ||||||||||||||||||||||
Construction in progress | 809 | 1,090 | ||||||||||||||||||||||||
Property and equipment, net | $ | 6,206 | $ | 6,138 | ||||||||||||||||||||||
The Company incurred depreciation expense of $383,000 and $990,000 for the three and nine months ended December 31, 2013, respectively. The depreciation expense for the same periods in the prior year was $271,000 and $704,000, respectively. | ||||||||||||||||||||||||||
Intangible Assets, Net | ||||||||||||||||||||||||||
Intangible assets, net are comprised of the following (in thousands): | ||||||||||||||||||||||||||
31-Dec-13 | 31-Mar-13 | |||||||||||||||||||||||||
Gross | Net | Gross | Net | |||||||||||||||||||||||
Carrying | Accumulated | Carrying | Carrying | Accumulated | Carrying | Useful | ||||||||||||||||||||
Amount | Amortization | Amount | Amount | Amortization | Amount | Lives | ||||||||||||||||||||
Product formulas | $ | 1,023 | $ | (106 | ) | $ | 917 | $ | 1,023 | $ | (68 | ) | $ | 955 | 5 - 25 years | |||||||||||
Other intangible assets | 189 | (35 | ) | 154 | 189 | (28 | ) | 161 | 5 - 25 years | |||||||||||||||||
Total | $ | 1,212 | $ | (141 | ) | $ | 1,071 | $ | 1,212 | $ | (96 | ) | $ | 1,116 | ||||||||||||
The Company incurred amortization expense of $15,000 and $45,000 on its intangible assets during the three and nine months ended December 31, 2013. The amortization expense for the same periods over the prior year was $15,000 and $45,000, respectively. | ||||||||||||||||||||||||||
The estimated future amortization expense relating to intangible assets for the remainder of fiscal 2014, for each of the next five years through fiscal 2019 and thereafter is $15,000, $60,000 and $756,000, respectively. | ||||||||||||||||||||||||||
Prepaid Expenses and Other Current Assets | ||||||||||||||||||||||||||
Prepaid expenses and other current assets as of December 31, 2013 and March 31, 2013 include receivables from contract manufacturers and suppliers of $4.2 million and $3.9 million, respectively. | ||||||||||||||||||||||||||
Accrued Liabilities | ||||||||||||||||||||||||||
The following table shows the components of accrued liabilities (in thousands): | ||||||||||||||||||||||||||
31-Dec-13 | 31-Mar-13 | |||||||||||||||||||||||||
Payroll and employee-related expenses | $ | 2,903 | $ | 3,779 | ||||||||||||||||||||||
Accrued trade expenses | 2,394 | 2,299 | ||||||||||||||||||||||||
Inventory received not invoiced | 2,720 | 4,038 | ||||||||||||||||||||||||
Deferred rent | 249 | 260 | ||||||||||||||||||||||||
Brokerage commissions | 320 | 407 | ||||||||||||||||||||||||
Other accrued liabilities | 518 | 1,238 | ||||||||||||||||||||||||
Total accrued liabilities | $ | 9,104 | $ | 12,021 | ||||||||||||||||||||||
Credit_Facility
Credit Facility | 9 Months Ended |
Dec. 31, 2013 | |
Debt Disclosure [Abstract] | ' |
Credit Facility | ' |
Credit Facility | |
In December 2011, the Company entered into a second amended and restated loan agreement (as amended from time to time, the "Credit Agreement") with Bank of America, N. A. that, among other things, provided for an increase in its revolving credit facility to $20.0 million and an extension of the term through August 2014. In March 2013, the Company entered into an amendment to its Credit Agreement. This amendment provides for, among other things, an increase in the credit facility to $40.0 million and an extension of the term through August 2016. On November 5, 2013, the Company entered into another amendment to its Credit Agreement. This amendment provides for, among other things, consent for the Company to create a limited liability company and guarantee performance of the limited liability company in the event and to the extent the Company assigns to the limited liability company any of its rights or obligations under the Purchase Agreement dated November 5, 2013 among the Company, Safeway Inc. and Safeway Australia Holdings, LLC (see Note 16). Additionally, the amendment provides for the issuance of letters of credit and revises certain covenants and representations and warranties of the Company under the Credit Agreement. In connection with this amendment, Annie’s Baking, LLC, became a party to the Credit Agreement pursuant to a Joinder Agreement dated November 22, 2013. The credit facility is collateralized by substantially all of the Company’s assets. | |
The Company may select from three interest rate options for borrowings under the credit facility: (i) LIBOR (as defined in the Credit Agreement) plus 1.25%, (ii) IBOR (as defined in the Credit Agreement) plus 1.25% or (iii) Prime Rate (as defined in the Credit Agreement). Weighted average interest was 1.4% for each of the three and nine months ended December 31, 2013, respectively. Weighted average interest was 1.5% for each of the three and nine months ended December 31, 2012. The Company is required to pay a commitment fee on the unused credit facility commitments, if the outstanding balance is less than half the commitment, at an annual rate ranging from 0.25% to 0.40% depending on the utilization rate. As of December 31, 2013 and March 31, 2013, there was $40.0 million and $33.0 million, respectively, of borrowings available under the credit facility. Interest is payable monthly. | |
The Credit Agreement contains restrictions on, among other things, the Company’s ability to incur additional indebtedness, pay dividends or make other distributions and make investments and loans. The Credit Agreement also limits the Company’s ability to make capital expenditures in excess of $15.0 million. The Credit Agreement requires that the Company maintain a Funded Debt (as defined in the Credit Agreement) to Adjusted EBITDA (as defined in the Credit Agreement) ratio of not more than 2.75 to 1.0 and a minimum Net Worth (as defined in the Credit Agreement) equal to at least $50.0 million, plus 30% of earnings after taxes earned each quarter (if positive), beginning with the June 2013 quarterly earnings. The Credit Agreement requires the Company to submit interim and annual financial statements by specified dates after each reporting period. The Company was in compliance with the covenants as of December 31, 2013 and March 31, 2013. |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
Related Party Transactions | |
Agreements with Solera Capital, LLC | |
The Company had an advisory services agreement with Solera, which it terminated upon the consummation of the IPO and as such the Company paid Solera a one-time termination fee of $1.3 million in April 2012. | |
Additionally, the Company is a party to an amended and restated registration rights agreement dated as of November 14, 2005, or Registration Rights Agreement, relating to shares of common stock of the Company held by certain affiliates of Solera and certain other stockholders. As discussed further below, on November 18, 2013 Solera completed the sale of its shares entitled to registration under this agreement. | |
On August 6, 2012, the Company closed a secondary public offering, in which certain stockholders, including Solera, sold 3,649,976 shares of common stock of the Company at an offering price of $39.25 per share. The Company did not receive any proceeds from the sale of shares by the selling stockholders. The offering expenses incurred by the Company were $0.7 million, including legal, accounting and various other fees associated with the registration and sale of common stock sold in the secondary public offering. | |
On November 18, 2013, the Company closed a secondary public offering in which Solera sold remaining 2,537,096 shares of common stock of the Company at an offering price of $47.95 per share. The Company did not receive any proceeds from the sale of shares by Solera. The offering expenses incurred by the Company were $0.3 million in the nine months ended December 31, 2013, including legal, accounting and various other fees associated with the registration and sale of common stock of the Company sold in the secondary public offering. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | |||
Dec. 31, 2013 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Commitments and Contingencies | ' | |||
Commitments and Contingencies | ||||
Lease Commitments | ||||
The Company leases its offices and other equipment under non-cancelable operating leases that expire through fiscal year 2019. Rent expense for non-cancelable operating leases with scheduled rent increases is recognized on a straight-line basis over the lease term. Rent expense for the three and nine months ended December 31, 2013 was $155,000 and $461,000, respectively. Rent expense for the three and nine months ended December 31, 2012 was $146,000 and $386,000, respectively. | ||||
Future minimum lease payments under the non-cancelable operating leases as of December 31, 2013 are as follows (in thousands): | ||||
Lease Payments | ||||
Three Months Ending March 31, 2014 | $ | 166 | ||
Fiscal Year Ending March 31: | ||||
2015 | 675 | |||
2016 | 673 | |||
2017 | 669 | |||
2018 | 662 | |||
2019 | 586 | |||
Total future minimum lease payments | $ | 3,431 | ||
Purchase Commitments | ||||
The Company has material non-cancelable purchase commitments, directly or through contract manufacturers, to purchase ingredients to be used in the future to manufacture its products. As of December 31, 2013, the Company’s purchase commitments totaled $15.9 million, which will substantially be incurred within a year. | ||||
In September 2011, the Company entered into an agreement with its contract warehousing company that includes minimum overhead fees of $200,000 annually beginning April 1, 2012 through June 30, 2015. As of December 31, 2013, the remaining obligation under the agreement for overhead fees was $300,000. | ||||
In November 2011, the Company entered into an agreement with one of its contract manufacturers for the purchase of product formulas for a purchase price of $2.0 million. The agreement requires annual payments of at least $150,000 in each of the first six years of the agreement with the balance of the $2.0 million payment due at the end of the seven-year term in November 2018. As of December 31, 2013, the Company’s remaining obligation for product formulas was $1.7 million. | ||||
Indemnifications | ||||
In the normal course of business, the Company enters into contracts that contain a variety of representations and provide for general indemnifications. The Company’s exposure under these agreements is unknown because it involves claims that may be made against the Company in the future but have not yet been made. The Company has not paid any significant claims or been required to defend any action related to its indemnification obligations, and, accordingly, the Company believes that the estimated fair value of these indemnification obligations is minimal and has not accrued any amounts for these obligations. | ||||
Legal Matters | ||||
On December 6, 2013, a private organization called the Center for Environmental Health (“CEH”) sued the Company and its subsidiary, Annie’s Homegrown, Inc., in Superior Court of the State of California in the County of Alameda under California Health & Safety Code §§ 25249.5 et seq. (commonly referred to as “Proposition 65”). CEH claims that warnings are required in California under Proposition 65 for alleged exposures to lead and lead compounds from cookies that contain ginger or molasses, including Annie’s Gluten-Free Ginger Snap Bunny Cookies. CEH is seeking injunctive relief, civil penalties of $2,500 per violation per day and its attorneys’ fees and costs. The lawsuit, entitled Mondelez International, Inc., et al., Alameda County Superior Court Case No. RG13-677800, names nine other companies that are either suppliers or retailers of ginger- or molasses-containing cookies. The Company cannot at this time reasonably estimate a range of exposure, if any, of the potential liability relating to this suit. | ||||
Additionally, from time to time, the Company is subject to claims, assessments or other legal proceedings in the ordinary course of business, including product liability claims, employee claims, and other general liability claims. While it is not feasible to predict or determine the ultimate outcome of these matters, the Company believes that none of these legal proceedings, individually or in the aggregate, will have a material adverse effect on its financial position. |
Convertible_Preferred_Stock_Wa
Convertible Preferred Stock Warrant | 9 Months Ended |
Dec. 31, 2013 | |
Convertible Preferred Stock Warrant Disclosure [Abstract] | ' |
Convertible Preferred Stock Warrant | ' |
Convertible Preferred Stock Warrant | |
In March 2008, in connection with a prior term loan, the Company had issued a warrant to Hercules Technology II, L.P. (“Hercules”) for the purchase of 80,560 shares of Series A 2005 Convertible Preferred Stock at an exercise price of $8.07 per share. The warrant was immediately exercisable on the date of issuance and was scheduled to expire at the earlier of five years from a qualifying IPO of the Company’s common stock or April 1, 2018. Upon the consummation of the Company’s IPO on April 2, 2012, the warrant became a warrant to purchase 80,560 shares of the Company’s common stock. As such, on April 2, 2012, the Company measured the fair value of the outstanding convertible preferred stock warrant using an option pricing method and recorded a non-cash charge of $13,000 related to the increase in the fair value of the convertible preferred stock warrant in other income (expense), net and the related convertible preferred stock warrant liability was reclassified to additional paid-in capital. On April 12, 2012, Hercules exercised the warrant to purchase 80,560 shares of the Company’s common stock by surrendering 17,367 shares to pay for the exercise. As a result, the Company issued Hercules 63,193 shares of the Company's common stock. |
Preferred_Stock
Preferred Stock | 9 Months Ended |
Dec. 31, 2013 | |
Equity [Abstract] | ' |
Preferred Stock | ' |
Preferred Stock | |
As of each of December 31, 2013 and March 31, 2013, the Company’s certificate of incorporation authorized 5,000,000 shares of preferred stock, $0.001 par value per share. As of December 31, 2013, no certificate of designations defining the rights and preferences of the preferred stock had been filed and no shares of preferred stock were issued and outstanding. |
Common_Stock
Common Stock | 9 Months Ended |
Dec. 31, 2013 | |
Equity [Abstract] | ' |
Common Stock | ' |
Common Stock | |
As of each of December 31, 2013 and March 31, 2013, the Company’s certificate of incorporation authorized 30,000,000 shares of common stock, $0.001 par value per share, respectively, of which 16,972,380 and 16,849,016 shares were issued and outstanding, respectively. Each share of the common stock has the right to one vote. The holders of common stock are also entitled to receive dividends if, as and when declared by the Company’s Board of Directors. No dividends were declared or paid during the nine months ended December 31, 2013 and 2012. |
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||
Stock-Based Compensation | ' | ||||||
Stock-Based Compensation | |||||||
The Company has adopted performance incentive plans (the 2004 Stock Option Plan and the Omnibus Incentive Plan, which together are the “Plans”) under which non-qualified stock options, restricted stock units and performance share units are granted to eligible employees, officers and directors. The Company has also granted non-plan performance based option awards to certain key management. Options granted under Plans to date generally vest over a five-year period from the date of grant. Vested options can be exercised and generally expire ten years after the grant date. The restricted stock units granted to employees vest 50% on the second anniversary of the grant date, and the remaining 50% on the third anniversary of the grant date. The performance share units granted to employees vest based on achievement of required cumulative compounded adjusted diluted earnings per share growth during the stipulated three-year period applicable to a grant. The vesting of stock-based awards is subject to continuance of the employment with or service to the Company. | |||||||
Stock-based compensation expense included in selling, general and administrative expenses was $251,000 and $230,000 for the three months ended December 31, 2013 and 2012, respectively, and $660,000 and $677,000 for the nine months ended December 31, 2013 and 2012, respectively. | |||||||
The following table summarizes the activity of stock options during the nine months ended December 31, 2013: | |||||||
Number of Shares | Weighted-Average | ||||||
Exercise Price | |||||||
Balance at March 31, 2013 | 1,203,990 | $ | 13.26 | ||||
Granted | 62,387 | 41.87 | |||||
Forfeited | (99,066 | ) | 18.28 | ||||
Exercised | (123,364 | ) | 9.81 | ||||
Balance at December 31, 2013 | 1,043,947 | $ | 14.9 | ||||
The weighted average grant date fair value of employee stock options granted during the nine months ended December 31, 2013 was $15.76 per share. The total intrinsic value of stock options exercised during the nine months ended December 31, 2013 was $4.1 million. The intrinsic value is calculated based on the difference between the exercise price and the fair value of the common stock at time of exercise. | |||||||
The following table summarizes the activity of unvested restricted stock units and performance share units during the nine months ended December 31, 2013: | |||||||
Shares-Based Awards | Shares | Weighted-Average | |||||
Grant Date | |||||||
Fair Value | |||||||
Unvested at March 31, 2013 | 71,165 | $ | 21.73 | ||||
Granted | 54,806 | 41.11 | |||||
Vested | (4,692 | ) | 45.27 | ||||
Forfeited | (19,922 | ) | 24.94 | ||||
Unvested at December 31, 2013 | 101,357 | $ | 30.49 | ||||
As of December 31, 2013, there were 70,872 unvested performance share units outstanding, net of actual forfeitures. As of December 31, 2013, the number of shares estimated to be issued at the end of the performance period(s) is a total of 35,441 shares. The maximum number of total shares that could be issued at the end of performance period(s) is 106,313 shares. | |||||||
As of December 31, 2013, there was $4.0 million of total unrecognized compensation cost related to unvested share-based compensation arrangements which is expected to be recognized over a weighted average period of 3.0 years. |
Income_Taxes
Income Taxes | 9 Months Ended |
Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
The Company’s effective tax rate increased to 41.3% for the three months ended December 31, 2013, compared to 39.6% for the three months ended December 31, 2012. The effective tax rate was 40.5% for the nine months ended December 31, 2013, compared to 40.4% for the nine months ended December 31, 2012. The effective tax rate is based on a projection of the Company’s annual fiscal year results. The effective tax rate for the three and nine months ended December 31, 2013 was higher than the effective tax rate for the three and nine months ended December 31, 2012 due to the impact of permanent items and federal and state income tax credits. |
Earnings_per_share
Earnings per share | 9 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Net Income per Share of Common Stock attributable to Common Stockholders | ' | |||||||||||||||
Basic earnings per share is calculated by dividing the net income by the weighted-average number of shares of common stock outstanding for the period. Diluted earnings per share is computed by giving effect to all potentially dilutive securities outstanding during the period. The Company utilizes the treasury stock method to calculate potential common shares that underlie its stock options to purchase common stock and restricted stock units. Performance share units were excluded from potential common shares since no shares were issuable as of December 31, 2013 and March 31, 2013. Certain stock options to purchase our common stock and restricted stock units had an anti-dilutive effect on the earnings per share for the periods presented, and were also excluded. | ||||||||||||||||
The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted earnings per share of common stock for the periods presented, because including them would have been anti-dilutive: | ||||||||||||||||
Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Options to purchase common stock | 105,157 | 2,562 | 105,157 | 2,562 | ||||||||||||
Restricted stock units | 5,141 | — | 10,575 | 6,256 | ||||||||||||
Total | 110,298 | 2,562 | 115,732 | 8,818 | ||||||||||||
A reconciliation of the basic and diluted earnings per share attributable to common stockholders is as follows (in thousands except share and per share amounts): | ||||||||||||||||
Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Earnings per share: | ||||||||||||||||
Net income | $ | 2,789 | $ | 1,401 | $ | 10,370 | $ | 7,317 | ||||||||
Weighted average shares of common stock outstanding used in computing earnings—basic | 16,937,139 | 17,249,536 | 16,901,089 | 17,085,833 | ||||||||||||
Potential dilutive options | 444,822 | 523,881 | 471,427 | 609,222 | ||||||||||||
Potential dilutive restricted stock units | 16,045 | 8,303 | 13,892 | 7,166 | ||||||||||||
Weighted average shares of common stock outstanding used in computing earnings—diluted | 17,398,006 | 17,781,720 | 17,386,408 | 17,702,221 | ||||||||||||
Earnings per share | ||||||||||||||||
—Basic | $ | 0.16 | $ | 0.08 | $ | 0.61 | $ | 0.43 | ||||||||
—Diluted | $ | 0.16 | $ | 0.08 | $ | 0.6 | $ | 0.41 | ||||||||
Geographic_Areas_and_Product_S
Geographic Areas and Product Sales | 9 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Geographic Areas and Product Sales | ' | |||||||||||||||
Geographic Areas and Product Sales | ||||||||||||||||
The Company’s net sales by geographic area, based on the location to which the product was shipped, are summarized as follows (in thousands): | ||||||||||||||||
Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
United States | $ | 44,459 | $ | 34,413 | $ | 138,130 | $ | 111,984 | ||||||||
Canada | 1,718 | 1,870 | 5,737 | 5,278 | ||||||||||||
$ | 46,177 | $ | 36,283 | $ | 143,867 | $ | 117,262 | |||||||||
The following table sets forth net sales by product category (in thousands): | ||||||||||||||||
Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Meals | $ | 23,933 | $ | 16,223 | $ | 70,226 | $ | 52,759 | ||||||||
Snacks | 17,075 | 14,908 | 54,953 | 47,517 | ||||||||||||
Dressings, condiments and other | 5,169 | 5,152 | 18,688 | 16,986 | ||||||||||||
$ | 46,177 | $ | 36,283 | $ | 143,867 | $ | 117,262 | |||||||||
All of the Company’s long-lived assets are located in the U.S. |
Product_Recall
Product Recall | 9 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Product Recall Disclosure [Abstract] | ' | |||||||||||||||
Product Recall | ' | |||||||||||||||
Product Recall | ||||||||||||||||
In January 2013, the Company announced a voluntary product recall of certified organic and made with organic pizza products due to the possible presence of fragments of flexible metal mesh from a faulty screen at a third-party flour mill. The Company initiated the recall of all lots of pizza product manufactured with this supplier’s flour from its first purchase from the supplier in May 2012. The Company recorded certain items associated with the recall in its financial results for the three and nine months ended December 31, 2013 and 2012. | ||||||||||||||||
The Company recorded the estimated customer and consumer returns as a reduction of net sales, related costs associated with product returns, destruction charges, inventory write-off and costs incurred by contract manufacturers as cost of sales, and administrative costs associated with the recall such as legal expenses as selling, general and administrative expenses. The Company recorded $0.4 million and $1.6 million for insurance recoveries in connection with the product recall in the three and nine months ended December 31, 2013, respectively. The impact of the recall-related charges and related insurance recoveries in the three and nine months ended December 31, 2013 and 2012 is as follows (in thousands except per share amount): | ||||||||||||||||
Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Benefit to/(reduction of) net sales | $ | 104 | $ | (1,570 | ) | $ | 855 | $ | (1,570 | ) | ||||||
Benefit to/(incremental) cost of sales | 280 | (690 | ) | 533 | (690 | ) | ||||||||||
Benefit to/(incremental) selling, general and administrative expenses | (7 | ) | — | (18 | ) | — | ||||||||||
Total benefit to/(reduction of) income before income taxes | $ | 377 | $ | (2,260 | ) | $ | 1,370 | $ | (2,260 | ) | ||||||
Benefit to/(reduction of) net income | $ | 224 | $ | (1,346 | ) | $ | 827 | $ | (1,346 | ) | ||||||
Benefit to/(reduction of) net income per diluted share | $ | 0.01 | $ | (0.08 | ) | $ | 0.05 | $ | (0.08 | ) | ||||||
The Company does not expect any significant further additional costs associated with the voluntary product recall. The Company expects to receive additional recoveries from the involved insurance carriers in future quarters. |
Planned_Acquisition
Planned Acquisition | 9 Months Ended |
Dec. 31, 2013 | |
Business Combinations [Abstract] | ' |
Planned acquisition | ' |
Planned Acquisition | |
On November 5, 2013, the Company entered into an agreement of purchase and sale (the "Purchase Agreement") with Safeway Inc. and Safeway Australia Holdings, Inc. (together the “Selling Parties”) to acquire a snack manufacturing plant in Joplin, Missouri (the “Joplin Plant”) for $6.0 million of cash, plus the value of inventory and supplies at closing (calculated based on the Selling Parties’ costs and currently estimated at approximately $4.0 million). The Company expects to fund the acquisition with cash from operations and, if necessary, by drawing under its revolving credit facility. The Company expects to close the acquisition in the first quarter of fiscal 2015. The Joplin Plant has been the primary manufacturer of the Company’s cookie and cracker products for more than ten years. Company products produced in the Joplin Plant currently account for over 50% of its total snacks net sales and represent the majority of the Joplin Plant’s total production volume. In connection with the closing of the acquisition, the Company expects to enter into a three-year supply agreement with an affiliate of Safeway Inc., pursuant to which the Company will manufacture products for the affiliate. Further, in connection with the planned acquisition, on November 7, 2013, the Company deposited $300,000 in an escrow account with the title insurance company. This amount is reflected as restricted cash on the condensed consolidated balance sheet at December 31, 2013. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Basis of Presentation and Consolidation | ' | ||||||||
Basis of Presentation and Consolidation | |||||||||
The accompanying interim condensed consolidated statements of operations for the three and nine months ended December 31, 2013 and 2012, the interim condensed consolidated balance sheets as of December 31, 2013 and March 31, 2013, the interim condensed consolidated statement of stockholders’ equity for the nine months ended December 31, 2013, and the interim condensed consolidated statements of cash flows for the nine months ended December 31, 2013 and 2012 are unaudited. These unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the applicable rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. These unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in Company’s Annual Report on Form 10-K filed with the SEC on June 14, 2013. The March 31, 2013 condensed consolidated balance sheet included herein was derived from the audited financial statements as of that date, but does not include all disclosures including notes required by U.S. GAAP for complete financial statements. | |||||||||
The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, reflect all adjustments of a normal recurring nature considered necessary to state fairly the Company's financial position as of December 31, 2013 and results of its operations for the three and nine months ended December 31, 2013 and 2012, and the cash flows for the nine months ended December 31, 2013 and 2012. The interim results for the nine months ended December 31, 2013 are not necessarily indicative of the results that may be expected for the year ending March 31, 2014. | |||||||||
The unaudited interim condensed consolidated financial statements include the accounts of the Company and its wholly owned direct and indirect subsidiaries, Annie’s Homegrown, Inc., Annie’s Enterprises, Inc., Napa Valley Kitchen, Inc. and Annie's Baking, LLC. All significant intercompany balances and transactions have been eliminated in consolidation. Certain reclassifications were made to the Company's prior financial statements to conform to the current year presentation. | |||||||||
Use of Estimates | ' | ||||||||
Use of Estimates | |||||||||
The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of sales and expenses during the reported periods. Actual results could differ from those estimates. | |||||||||
Accounts Receivable | ' | ||||||||
The Company manages credit risk through credit approvals, credit limits and monitoring procedures. The Company performs periodic credit evaluations of its customers and records an allowance for uncollectible accounts receivable based on a specific identification methodology. In addition, management may record an additional allowance based on the Company’s experience with accounts receivable aging categories. Accounts receivable are recorded net of allowances for trade discounts and doubtful accounts. The Company had $21,000 for allowance for doubtful accounts as of December 31, 2013. The Company had no allowance for doubtful accounts as of March 31, 2013. | |||||||||
Concentration Risk | ' | ||||||||
Accounts Receivable and Concentration Risk | |||||||||
The Company manages credit risk through credit approvals, credit limits and monitoring procedures. The Company performs periodic credit evaluations of its customers and records an allowance for uncollectible accounts receivable based on a specific identification methodology. In addition, management may record an additional allowance based on the Company’s experience with accounts receivable aging categories. Accounts receivable are recorded net of allowances for trade discounts and doubtful accounts. The Company had $21,000 for allowance for doubtful accounts as of December 31, 2013. The Company had no allowance for doubtful accounts as of March 31, 2013. | |||||||||
Customers with 10% or more of the Company’s net sales consist of the following: | |||||||||
Net Sales | |||||||||
Customer A | Customer B | Customer C | |||||||
Three Months Ended December 31, | |||||||||
2013 | 22 | % | 18 | % | 11 | % | |||
2012 | 25 | % | 17 | % | 11 | % | |||
Nine Months Ended December 31, | |||||||||
2013 | 21 | % | 15 | % | 13 | % | |||
2012 | 26 | % | 13 | % | 12 | % | |||
As of December 31, 2013, two customers represented 31% and 18%, respectively, of accounts receivable. As of March 31, 2013, three customers represented 36%, 26%, and 10%, respectively, of accounts receivable. | |||||||||
Fair Value of Financial Instruments | ' | ||||||||
Fair Value of Financial Instruments | |||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The accounting guidance establishes a three-tiered hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: | |||||||||
Level 1—Quoted prices in active markets for identical assets or liabilities. | |||||||||
Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |||||||||
Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | |||||||||
The categorization of a financial instrument within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. | |||||||||
The carrying amounts of the Company’s financial instruments, including accounts receivable, accounts payable and accrued liabilities, approximate fair value due to their relatively short maturities. Upon consummation of the Company's initial public offering on April 2, 2012, prior to the automatic conversion of the convertible preferred stock warrant into a common stock warrant, it was remeasured and the change in fair value was recorded as a non-cash charge in other income (expense), net and the related liability was reclassified to additional paid-in capital (see Note 8). | |||||||||
Inventories | ' | ||||||||
Inventories | |||||||||
Inventories are recorded at the lower of cost (determined under the first-in-first-out method) or market. Write downs are provided for finished goods expected to become nonsaleable due to age and provisions are specifically made for slow-moving or obsolete raw ingredients and packaging material. The Company also adjusts the carrying value of its inventories when it believes that the net realizable value is less than the carrying value. These write-downs are measured as the difference between the cost of the inventory, including estimated costs to complete, and estimated selling prices, including cost of selling. These charges are recorded as a component of cost of sales. | |||||||||
Property and Equipment | ' | ||||||||
Property and Equipment | |||||||||
Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or estimated useful lives. Maintenance and repairs are charged to expense as incurred. Assets not yet placed in use are not depreciated. | |||||||||
The useful lives of the property and equipment are as follows: | |||||||||
Equipment and automotive | 3 to 7 years | ||||||||
Software | 3 to 7 years | ||||||||
Plates and dies | 3 years | ||||||||
Leasehold improvements | Shorter of lease term or estimated useful life | ||||||||
The Company capitalizes certain internal and external costs related to the development and enhancement of the Company’s internal-use software. Capitalized internal-use software development costs are included in property and equipment on the accompanying condensed consolidated balance sheets. As of December 31, 2013, the Company had $2.3 million capitalized software development costs, net of accumulated amortization, including $0.6 million in construction-in-progress. As of March 31, 2013, the Company had $2.1 million capitalized software development costs, net of accumulated amortization, including $0.4 million in construction-in-progress. | |||||||||
Intangible Assets | ' | ||||||||
Intangible Assets | |||||||||
Intangible assets with determinable lives are amortized using the straight-line method. | |||||||||
Freight and Warehousing Costs | ' | ||||||||
Freight and Warehousing Costs | |||||||||
Freight and warehousing costs are included in selling, general and administrative expenses in the condensed consolidated statements of operations. Freight and warehousing costs primarily consist of costs associated with moving finished products to customers, including costs associated with the Company’s distribution center, route delivery costs and the cost of shipping products to customers through third-party carriers. Freight and warehousing costs recorded as a component of selling, general and administrative expenses were $1.8 million and $1.4 million for the three months ended December 31, 2013 and 2012, respectively, and were $5.2 million and $4.2 million for the nine months ended December 31, 2013 and 2012, respectively. | |||||||||
Research and Development Costs | ' | ||||||||
Research and Development (R&D) Costs | |||||||||
R&D costs consist of the costs incurred to develop new products and are expensed as incurred. These costs include consumer research, prototype development, materials and resources to conduct trial production runs, package development and employee-related costs for personnel responsible for product innovation. R&D costs recorded as a component of selling, general and administrative expenses were $0.5 million and $0.6 million for the three months ended December 31, 2013 and 2012, respectively, and were $1.7 million and $2.1 million for the nine months ended December 31, 2013 and 2012, respectively. | |||||||||
Advertising Costs | ' | ||||||||
Advertising Costs | |||||||||
Advertising costs include the costs of producing and communicating advertisements. The costs of producing advertisements are expensed as incurred and the costs of communicating advertising are expensed over the period of communication. Total advertising costs for the three months ended December 31, 2013 and 2012 included in selling, general and administrative expenses were $0.4 million and $0.2 million, respectively, and were $1.2 million and $0.6 million for the nine months ended December 31, 2013 and 2012, respectively. | |||||||||
Product Recall | ' | ||||||||
Product Recall | |||||||||
The Company establishes reserves for product recalls on a product-specific basis when circumstances giving rise to the recall become known. The Company, when establishing reserves for a product recall, considers cost estimates for any fees and incentives to customers for their effort to return the product, freight and destruction charges for returned products, warehouse and inspection fees, repackaging materials, point-of-sale materials and other costs including costs incurred by contract manufacturers. Additionally, the Company estimates product returns from consumers and customers across distribution channels, utilizing third-party data and other assumptions. These factors are updated and re-evaluated each period and the related reserves are adjusted when these factors indicate that the recall reserves are either insufficient to cover or exceed the estimated product recall expenses. | |||||||||
Significant changes in the assumptions used to develop estimates for product recall reserves could affect key financial information, including accounts receivable, inventory, accrued liabilities, net sales, gross profit, operating expenses and net income. In addition, estimating product recall reserves requires a high degree of judgment in areas such as estimating consumer returns, shelf and in-stock inventory at retailers across distribution channels, fees and incentives to be earned by customers for their effort to return the products, future freight rates and consumers’ claims. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 9 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Customers with 10% or more of net sales | ' | ||||||||
Customers with 10% or more of the Company’s net sales consist of the following: | |||||||||
Net Sales | |||||||||
Customer A | Customer B | Customer C | |||||||
Three Months Ended December 31, | |||||||||
2013 | 22 | % | 18 | % | 11 | % | |||
2012 | 25 | % | 17 | % | 11 | % | |||
Nine Months Ended December 31, | |||||||||
2013 | 21 | % | 15 | % | 13 | % | |||
2012 | 26 | % | 13 | % | 12 | % | |||
Useful lives of property and equipment | ' | ||||||||
The useful lives of the property and equipment are as follows: | |||||||||
Equipment and automotive | 3 to 7 years | ||||||||
Software | 3 to 7 years | ||||||||
Plates and dies | 3 years | ||||||||
Leasehold improvements | Shorter of lease term or estimated useful life | ||||||||
Property and equipment, net are comprised of the following (in thousands): | |||||||||
December 31, | March 31, | ||||||||
2013 | 2013 | ||||||||
Equipment and automotive | $ | 3,897 | $ | 2,959 | |||||
Software | 2,570 | 2,410 | |||||||
Leasehold improvements | 1,342 | 1,195 | |||||||
Plates and dies | 333 | 244 | |||||||
Total property and equipment | 8,142 | 6,808 | |||||||
Less: Accumulated depreciation and amortization | (2,745 | ) | (1,760 | ) | |||||
Construction in progress | 809 | 1,090 | |||||||
Property and equipment, net | $ | 6,206 | $ | 6,138 | |||||
Balance_Sheet_Components_Table
Balance Sheet Components (Tables) | 9 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
Supplemental Balance Sheet Disclosures [Abstract] | ' | |||||||||||||||||||||||||
Inventory | ' | |||||||||||||||||||||||||
Inventory is comprised of the following (in thousands): | ||||||||||||||||||||||||||
December 31, | March 31, | |||||||||||||||||||||||||
2013 | 2013 | |||||||||||||||||||||||||
Raw materials | $ | 2,659 | $ | 1,391 | ||||||||||||||||||||||
Work in process | 1,494 | 2,142 | ||||||||||||||||||||||||
Finished goods | 19,254 | 11,614 | ||||||||||||||||||||||||
Inventory | $ | 23,407 | $ | 15,147 | ||||||||||||||||||||||
Components of property and equipment | ' | |||||||||||||||||||||||||
The useful lives of the property and equipment are as follows: | ||||||||||||||||||||||||||
Equipment and automotive | 3 to 7 years | |||||||||||||||||||||||||
Software | 3 to 7 years | |||||||||||||||||||||||||
Plates and dies | 3 years | |||||||||||||||||||||||||
Leasehold improvements | Shorter of lease term or estimated useful life | |||||||||||||||||||||||||
Property and equipment, net are comprised of the following (in thousands): | ||||||||||||||||||||||||||
December 31, | March 31, | |||||||||||||||||||||||||
2013 | 2013 | |||||||||||||||||||||||||
Equipment and automotive | $ | 3,897 | $ | 2,959 | ||||||||||||||||||||||
Software | 2,570 | 2,410 | ||||||||||||||||||||||||
Leasehold improvements | 1,342 | 1,195 | ||||||||||||||||||||||||
Plates and dies | 333 | 244 | ||||||||||||||||||||||||
Total property and equipment | 8,142 | 6,808 | ||||||||||||||||||||||||
Less: Accumulated depreciation and amortization | (2,745 | ) | (1,760 | ) | ||||||||||||||||||||||
Construction in progress | 809 | 1,090 | ||||||||||||||||||||||||
Property and equipment, net | $ | 6,206 | $ | 6,138 | ||||||||||||||||||||||
Intangible assets, net | ' | |||||||||||||||||||||||||
Intangible assets, net are comprised of the following (in thousands): | ||||||||||||||||||||||||||
31-Dec-13 | 31-Mar-13 | |||||||||||||||||||||||||
Gross | Net | Gross | Net | |||||||||||||||||||||||
Carrying | Accumulated | Carrying | Carrying | Accumulated | Carrying | Useful | ||||||||||||||||||||
Amount | Amortization | Amount | Amount | Amortization | Amount | Lives | ||||||||||||||||||||
Product formulas | $ | 1,023 | $ | (106 | ) | $ | 917 | $ | 1,023 | $ | (68 | ) | $ | 955 | 5 - 25 years | |||||||||||
Other intangible assets | 189 | (35 | ) | 154 | 189 | (28 | ) | 161 | 5 - 25 years | |||||||||||||||||
Total | $ | 1,212 | $ | (141 | ) | $ | 1,071 | $ | 1,212 | $ | (96 | ) | $ | 1,116 | ||||||||||||
Components of accrued liabilities | ' | |||||||||||||||||||||||||
The following table shows the components of accrued liabilities (in thousands): | ||||||||||||||||||||||||||
31-Dec-13 | 31-Mar-13 | |||||||||||||||||||||||||
Payroll and employee-related expenses | $ | 2,903 | $ | 3,779 | ||||||||||||||||||||||
Accrued trade expenses | 2,394 | 2,299 | ||||||||||||||||||||||||
Inventory received not invoiced | 2,720 | 4,038 | ||||||||||||||||||||||||
Deferred rent | 249 | 260 | ||||||||||||||||||||||||
Brokerage commissions | 320 | 407 | ||||||||||||||||||||||||
Other accrued liabilities | 518 | 1,238 | ||||||||||||||||||||||||
Total accrued liabilities | $ | 9,104 | $ | 12,021 | ||||||||||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | |||
Dec. 31, 2013 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Future Minimum Lease Payments under Non-cancelable Operating Leases | ' | |||
Future minimum lease payments under the non-cancelable operating leases as of December 31, 2013 are as follows (in thousands): | ||||
Lease Payments | ||||
Three Months Ending March 31, 2014 | $ | 166 | ||
Fiscal Year Ending March 31: | ||||
2015 | 675 | |||
2016 | 673 | |||
2017 | 669 | |||
2018 | 662 | |||
2019 | 586 | |||
Total future minimum lease payments | $ | 3,431 | ||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||
Summary of Activity of Stock Options | ' | ||||||
The following table summarizes the activity of stock options during the nine months ended December 31, 2013: | |||||||
Number of Shares | Weighted-Average | ||||||
Exercise Price | |||||||
Balance at March 31, 2013 | 1,203,990 | $ | 13.26 | ||||
Granted | 62,387 | 41.87 | |||||
Forfeited | (99,066 | ) | 18.28 | ||||
Exercised | (123,364 | ) | 9.81 | ||||
Balance at December 31, 2013 | 1,043,947 | $ | 14.9 | ||||
Summary of Activity of Unvested Restricted Stock Units and Performance Share Units | ' | ||||||
The following table summarizes the activity of unvested restricted stock units and performance share units during the nine months ended December 31, 2013: | |||||||
Shares-Based Awards | Shares | Weighted-Average | |||||
Grant Date | |||||||
Fair Value | |||||||
Unvested at March 31, 2013 | 71,165 | $ | 21.73 | ||||
Granted | 54,806 | 41.11 | |||||
Vested | (4,692 | ) | 45.27 | ||||
Forfeited | (19,922 | ) | 24.94 | ||||
Unvested at December 31, 2013 | 101,357 | $ | 30.49 | ||||
Earnings_per_share_Tables
Earnings per share (Tables) | 9 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Outstanding Shares of Potentially Dilutive Securities Excluded from Computation of Diluted Net Income Per Share of Common Stock | ' | |||||||||||||||
The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted earnings per share of common stock for the periods presented, because including them would have been anti-dilutive: | ||||||||||||||||
Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Options to purchase common stock | 105,157 | 2,562 | 105,157 | 2,562 | ||||||||||||
Restricted stock units | 5,141 | — | 10,575 | 6,256 | ||||||||||||
Total | 110,298 | 2,562 | 115,732 | 8,818 | ||||||||||||
Reconciliation of Basic and Diluted Net Income Per Share Attributable to Common Stockholders | ' | |||||||||||||||
A reconciliation of the basic and diluted earnings per share attributable to common stockholders is as follows (in thousands except share and per share amounts): | ||||||||||||||||
Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Earnings per share: | ||||||||||||||||
Net income | $ | 2,789 | $ | 1,401 | $ | 10,370 | $ | 7,317 | ||||||||
Weighted average shares of common stock outstanding used in computing earnings—basic | 16,937,139 | 17,249,536 | 16,901,089 | 17,085,833 | ||||||||||||
Potential dilutive options | 444,822 | 523,881 | 471,427 | 609,222 | ||||||||||||
Potential dilutive restricted stock units | 16,045 | 8,303 | 13,892 | 7,166 | ||||||||||||
Weighted average shares of common stock outstanding used in computing earnings—diluted | 17,398,006 | 17,781,720 | 17,386,408 | 17,702,221 | ||||||||||||
Earnings per share | ||||||||||||||||
—Basic | $ | 0.16 | $ | 0.08 | $ | 0.61 | $ | 0.43 | ||||||||
—Diluted | $ | 0.16 | $ | 0.08 | $ | 0.6 | $ | 0.41 | ||||||||
Geographic_Areas_and_Product_S1
Geographic Areas and Product Sales (Tables) | 9 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Net Sales by Geographic Area | ' | |||||||||||||||
The Company’s net sales by geographic area, based on the location to which the product was shipped, are summarized as follows (in thousands): | ||||||||||||||||
Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
United States | $ | 44,459 | $ | 34,413 | $ | 138,130 | $ | 111,984 | ||||||||
Canada | 1,718 | 1,870 | 5,737 | 5,278 | ||||||||||||
$ | 46,177 | $ | 36,283 | $ | 143,867 | $ | 117,262 | |||||||||
Net Sales by Product | ' | |||||||||||||||
The following table sets forth net sales by product category (in thousands): | ||||||||||||||||
Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Meals | $ | 23,933 | $ | 16,223 | $ | 70,226 | $ | 52,759 | ||||||||
Snacks | 17,075 | 14,908 | 54,953 | 47,517 | ||||||||||||
Dressings, condiments and other | 5,169 | 5,152 | 18,688 | 16,986 | ||||||||||||
$ | 46,177 | $ | 36,283 | $ | 143,867 | $ | 117,262 | |||||||||
Product_Recall_Tables
Product Recall (Tables) | 9 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Product Recall Disclosure [Abstract] | ' | |||||||||||||||
Impact of the Recall-Related Charges and Related Insurance Recoveries | ' | |||||||||||||||
The impact of the recall-related charges and related insurance recoveries in the three and nine months ended December 31, 2013 and 2012 is as follows (in thousands except per share amount): | ||||||||||||||||
Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Benefit to/(reduction of) net sales | $ | 104 | $ | (1,570 | ) | $ | 855 | $ | (1,570 | ) | ||||||
Benefit to/(incremental) cost of sales | 280 | (690 | ) | 533 | (690 | ) | ||||||||||
Benefit to/(incremental) selling, general and administrative expenses | (7 | ) | — | (18 | ) | — | ||||||||||
Total benefit to/(reduction of) income before income taxes | $ | 377 | $ | (2,260 | ) | $ | 1,370 | $ | (2,260 | ) | ||||||
Benefit to/(reduction of) net income | $ | 224 | $ | (1,346 | ) | $ | 827 | $ | (1,346 | ) | ||||||
Benefit to/(reduction of) net income per diluted share | $ | 0.01 | $ | (0.08 | ) | $ | 0.05 | $ | (0.08 | ) | ||||||
Description_of_Business_Additi
Description of Business - Additional Information (Detail) | 9 Months Ended |
Dec. 31, 2013 | |
Product | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Number of products offered | 135 |
Incorporation date | 28-Apr-04 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Concentration risk (Detail) | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | |||||||
Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | |
Customer | Customer | Customer A | Customer A | Customer A | Customer A | Customer B | Customer B | Customer B | Customer B | Customer C | Customer C | Customer C | Customer C | Customer C | Major Customer Two | Major Customer Two | Major Customer One | Major Customer | |
Sales Revenue, Goods, Net | Sales Revenue, Goods, Net | Sales Revenue, Goods, Net | Sales Revenue, Goods, Net | Sales Revenue, Goods, Net | Sales Revenue, Goods, Net | Sales Revenue, Goods, Net | Sales Revenue, Goods, Net | Sales Revenue, Goods, Net | Sales Revenue, Goods, Net | Sales Revenue, Goods, Net | Sales Revenue, Goods, Net | Accounts Receivable [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | |||
Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Credit Concentration Risk [Member] | Credit Concentration Risk [Member] | Credit Concentration Risk [Member] | Credit Concentration Risk [Member] | Credit Concentration Risk [Member] | |||
Concentration Risk [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number Of Major Customer | 2 | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration risk, percentage | ' | ' | 22.00% | 25.00% | 21.00% | 26.00% | 18.00% | 17.00% | 15.00% | 13.00% | 11.00% | 11.00% | 13.00% | 12.00% | 10.00% | 18.00% | 26.00% | 36.00% | 31.00% |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2013 | |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Allowance for doubtful accounts | $21,000 | ' | $21,000 | ' | $0 |
Capitalized software development costs, net of accumulated amortization | 2,300,000 | ' | 2,300,000 | ' | 2,100,000 |
Construction in progress | 600,000 | ' | 600,000 | ' | 400,000 |
Shipping and handling costs | 1,800,000 | 1,400,000 | 5,200,000 | 4,200,000 | ' |
Research and development cost | 500,000 | 600,000 | 1,700,000 | 2,100,000 | ' |
Advertising costs | $400,000 | $200,000 | $1,200,000 | $600,000 | ' |
Equipment and automotive | Minimum | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Useful life of property and equipment | ' | ' | '3 years | ' | ' |
Equipment and automotive | Maximum | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Useful life of property and equipment | ' | ' | '7 years | ' | ' |
Software | Minimum | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Useful life of property and equipment | ' | ' | '3 years | ' | ' |
Software | Maximum | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Useful life of property and equipment | ' | ' | '7 years | ' | ' |
Plates and dies | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Useful life of property and equipment | ' | ' | '3 years | ' | ' |
Initial_Public_Offering_IPO_De
Initial Public Offering (IPO) (Details) (USD $) | 9 Months Ended |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 |
Class of Stock [Line Items] | ' |
Outstanding shares of convertible preferred stock converted into number of shares of common stock | 15,221,571 |
Reclassified common stock and the related convertible preferred stock warrant liability to additional paid-in capital | 80,560 |
IPO | ' |
Class of Stock [Line Items] | ' |
Sale of stock, transaction date | 2-Apr-12 |
Number of shares sold by the Company | 950,000 |
Common stock, offering price | $19 |
Net proceeds from IPO | $11.10 |
Underwriting discounts and commissions | 1.3 |
Offering expenses | $5.60 |
Number of shares sold to shareholders | 4,800,000 |
Balance_Sheet_Components_Inven
Balance Sheet Components - Inventory (Detail) (USD $) | Dec. 31, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Supplemental Balance Sheet Disclosures [Abstract] | ' | ' |
Raw materials | $2,659 | $1,391 |
Work in process | 1,494 | 2,142 |
Finished goods | 19,254 | 11,614 |
Inventory | $23,407 | $15,147 |
Balance_Sheet_Components_Prope
Balance Sheet Components - Property and Equipment, Net (Detail) (USD $) | Dec. 31, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Total property and equipment | $8,142 | $6,808 |
Less: Accumulated depreciation and amortization | -2,745 | -1,760 |
Construction in progress | 809 | 1,090 |
Property and equipment, net | 6,206 | 6,138 |
Equipment and automotive | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total property and equipment | 3,897 | 2,959 |
Software | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total property and equipment | 2,570 | 2,410 |
Leasehold improvements | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total property and equipment | 1,342 | 1,195 |
Plates and dies | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total property and equipment | $333 | $244 |
Balance_Sheet_Components_Intan
Balance Sheet Components - Intangible Assets, Net (Detail) (USD $) | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | Product formulas | Product formulas | Other intangible assets | Other intangible assets | Minimum | Minimum | Maximum | Maximum | ||
Product formulas | Other intangible assets | Product formulas | Other intangible assets | |||||||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross carrying amount | $1,212 | $1,212 | $1,023 | $1,023 | $189 | $189 | ' | ' | ' | ' |
Accumulated amortization | -141 | -96 | -106 | -68 | -35 | -28 | ' | ' | ' | ' |
Net carrying amount | $1,071 | $1,116 | $917 | $955 | $154 | $161 | ' | ' | ' | ' |
Useful life of intangible assets | ' | ' | ' | ' | ' | ' | '5 years | '5 years | '25 years | '25 years |
Balance_Sheet_Components_Compo
Balance Sheet Components - Components of Accrued Liabilities (Detail) (USD $) | Dec. 31, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accrued Liabilities [Abstract] | ' | ' |
Payroll and employee-related expenses | $2,903 | $3,779 |
Accrued trade expenses | 2,394 | 2,299 |
Inventory received not invoiced | 2,720 | 4,038 |
Deferred rent | 249 | 260 |
Brokerage commissions | 320 | 407 |
Other accrued liabilities | 518 | 1,238 |
Total accrued liabilities | $9,104 | $12,021 |
Balance_Sheet_Components_Narra
Balance Sheet Components - Narrative (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2013 |
Balance Sheet Details [Line Items] | ' | ' | ' | ' | ' |
Depreciation expense incurred | $383 | $271 | $990 | $704 | ' |
Amortization expense | 15 | 15 | 45 | 45 | ' |
Future Amortization Expense, remainder of fiscal 2014 | 15 | ' | 15 | ' | ' |
Future Amortization Expense 2015 | 60 | ' | 60 | ' | ' |
Future Amortization Expense 2016 | 60 | ' | 60 | ' | ' |
Future Amortization Expense 2017 | 60 | ' | 60 | ' | ' |
Future Amortization Expense 2018 | 60 | ' | 60 | ' | ' |
Future Amortization Expense 2019 | 60 | ' | 60 | ' | ' |
Amortization expense thereafter | 756 | ' | 756 | ' | ' |
Prepaid expenses and other current assets | 5,572 | ' | 5,572 | ' | 5,050 |
Contract manufacturers and suppliers | ' | ' | ' | ' | ' |
Balance Sheet Details [Line Items] | ' | ' | ' | ' | ' |
Prepaid expenses and other current assets | $4,200 | ' | $4,200 | ' | $3,900 |
Credit_Facility_Additional_Inf
Credit Facility - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2013 |
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' |
Loans and letter of credit, maximum borrowing capacity | $20 | ' | ' | ' | ' | $40 |
Line of credit facility, expiration date | 'August 2014 | ' | ' | ' | ' | 'August 2016 |
Weighted average interest rate | ' | 1.40% | 1.50% | ' | 1.40% | ' |
Line of credit facility, available borrowing capacity | ' | 40 | ' | 40 | ' | 33 |
Borrowing capacity for revolving loans with Bank of America | ' | 15 | ' | 15 | ' | ' |
Funded Debt to Adjusted EBITDA | ' | ' | ' | 275.00% | ' | ' |
Minimum net worth | ' | $50 | ' | $50 | ' | ' |
Percentage of earnings after taxes | ' | 30.00% | ' | 30.00% | ' | ' |
Minimum | ' | ' | ' | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' |
Line of credit facility, unused line fee | ' | 0.25% | ' | ' | ' | ' |
Maximum | ' | ' | ' | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' |
Line of credit facility, unused line fee | ' | 0.40% | ' | ' | ' | ' |
Rate Option One | ' | ' | ' | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' |
Line of credit, interest rate | ' | 1.25% | ' | ' | ' | ' |
Rate Option Two | ' | ' | ' | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' |
Line of credit, interest rate | ' | 1.25% | ' | ' | ' | ' |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 0 Months Ended | 9 Months Ended | 1 Months Ended | |
In Millions, except Share data, unless otherwise specified | Nov. 18, 2013 | Aug. 06, 2012 | Dec. 31, 2013 | Apr. 30, 2012 |
Secondary Public Offering | Secondary Public Offering | Secondary Public Offering | Solera Partners, L.P | |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Contract termination, fee | ' | ' | ' | $1.30 |
Sale of stock, transaction date | ' | 6-Aug-12 | ' | ' |
Number of shares sold to shareholders | 2,537,096 | 3,649,976 | ' | ' |
Common stock price | $47.95 | $39.25 | ' | ' |
Offering expenses | ' | $0.70 | $0.30 | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies - Future Minimum Lease Payments under Non-cancelable Operating Leases (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Operating Leases, Future Minimum Payments, Remainder of Fiscal Year | $166 |
2014 | 675 |
2015 | 673 |
2016 | 669 |
2017 | 662 |
2018 | 586 |
Total future minimum lease payments | $3,431 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Other_Defendants | ||||
Contingencies And Commitments [Line Items] | ' | ' | ' | ' |
Rent expense | $155,000 | $146,000 | $461,000 | $386,000 |
Purchase commitments | 15,900,000 | ' | 15,900,000 | ' |
Product formula purchase price | 2,000,000 | ' | 2,000,000 | ' |
Annual payment for product formula purchases | ' | ' | 150,000 | ' |
Product formula purchase agreement period | ' | ' | '7 years | ' |
Product formula purchase agreement period end date | ' | ' | '2018-11 | ' |
Amount the plaintiff may seek per violation per day | 2,500 | ' | 2,500 | ' |
Number of Other Companies Named As Defendants | ' | ' | 9 | ' |
Overhead fees | ' | ' | ' | ' |
Contingencies And Commitments [Line Items] | ' | ' | ' | ' |
Remaining obligation | ' | ' | 300,000 | ' |
Product formulas | ' | ' | ' | ' |
Contingencies And Commitments [Line Items] | ' | ' | ' | ' |
Remaining obligation | ' | ' | 1,700,000 | ' |
Minimum | ' | ' | ' | ' |
Contingencies And Commitments [Line Items] | ' | ' | ' | ' |
Annual overhead fees | ' | ' | $200,000 | ' |
Convertible_Preferred_Stock_Wa1
Convertible Preferred Stock Warrant - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Apr. 12, 2012 | Mar. 31, 2008 | Apr. 12, 2012 | Apr. 02, 2012 | Apr. 02, 2013 |
Hercules | Series A Convertible Preferred Stock | Common Stock | Common Stock | Convertible Preferred Stock | |
Other Income and Expense | |||||
Convertible Preferred Stock Warrants [Line Items] | ' | ' | ' | ' | ' |
Conversion of warrants | ' | 80,560 | 80,560 | 80,560 | ' |
Conversion of warrants exercise price | ' | $8.07 | ' | ' | ' |
Warrants expiry date | ' | 1-Apr-18 | ' | ' | ' |
Increase in fair value of convertible preferred stock warrant | ' | ' | ' | ' | $13 |
Shares surrendered | 17,367 | ' | ' | ' | ' |
Common stock shares issued | 63,193 | ' | ' | ' | ' |
Preferred_Stock_Additional_Inf
Preferred Stock - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Mar. 31, 2013 |
Equity [Abstract] | ' | ' |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock par value | $0.00 | $0.00 |
Common_Stock_Additional_Inform
Common Stock - Additional Information (Detail) (USD $) | 9 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2013 | |
Vote | |||
Equity [Abstract] | ' | ' | ' |
Common stock, authorized | 30,000,000 | ' | 30,000,000 |
Common stock, par value | $0.00 | ' | $0.00 |
Common stock, issued | 16,972,380 | ' | 16,849,016 |
Common stock, outstanding | 16,972,380 | ' | 16,849,016 |
Common stock, right per share | 1 | ' | ' |
Common stock dividends declared and paid | $0 | $0 | ' |
StockBased_Compensation_Activi
Stock-Based Compensation - Activity of Stock Options (Detail) (USD $) | 9 Months Ended |
Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' |
Beginning balance, shares | 1,203,990 |
Granted, shares | 62,387 |
Forfeited, shares | -99,066 |
Exercised, shares | -123,364 |
Ending balance, shares | 1,043,947 |
Beginning balance, weighted average exercise price | $13.26 |
Granted, Weighted-Average Exercise Price | $41.87 |
Forfeited, Weighted-Average Exercise Price | $18.28 |
Exercised, Weighted-Average Exercise Price | $9.81 |
Ending Balance, Weighted-Average Exercise Price | $14.90 |
StockBased_Compensation_Activi1
Stock-Based Compensation - Activity of Unvested Restricted Stock Units and Performance Share Units (Detail) (USD $) | 9 Months Ended |
Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ' |
Beginning balance, unvested shares | 71,165 |
Granted, shares | 54,806 |
Vested, shares | -4,692 |
Forfeited, shares | -19,922 |
Ending balance, unvested shares | 101,357 |
Beginning balance, weighted-average grant date fair value of unvested shares | $21.73 |
Granted, weighted-average grant date fair value | $41.11 |
Vested, weighted-average grant date fair value | $45.27 |
Forfeited, weighted-average grant date fair value | $24.94 |
Ending balance, weighted-average grant date fair value of unvested shares | $30.49 |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | ||||||||
Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses | Selling, General and Administrative Expenses | Selling, General and Administrative Expenses | Performance Shares | Maximum | 2004 Stock Option Plan | 2004 Stock Option Plan | 2004 Stock Option Plan | 2004 Stock Option Plan | |||
Performance Shares | Maximum | Second Anniversary | Third Anniversary | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Award vesting period (in years) | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | '5 years | ' | ' |
Stock options, expiration period (in years) | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' |
Percentage of restricted stock units granted to employees vested | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | 50.00% |
Stock-based compensation expense | ' | ' | $251,000 | $230,000 | $660,000 | $677,000 | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense, weighted average grant date fair value of the employee stock options | $15.76 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense, related to stock options granted to the employees | 4,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unvested shares outstanding | 101,357 | 71,165 | ' | ' | ' | ' | 70,872 | 106,313 | ' | ' | ' | ' |
Estimated number of shares to be issued | ' | ' | ' | ' | ' | ' | 35,441 | ' | ' | ' | ' | ' |
Unrecognized compensation cost related to unvested share-based compensation | $4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost, expected to be recognized over a weighted average period | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Effective Income Tax Rate | 41.30% | 39.60% | 40.50% | 40.40% |
Earnings_per_share_Outstanding
Earnings per share - Outstanding Shares of Potentially Dilutive Securities Excluded from Computation of Diluted Net Income Per Share of Common Stock (Detail) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Potentially dilutive securities excluded from the computation of diluted net income per share of common stock | 110,298 | 2,562 | 115,732 | 8,818 |
Stock Options | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Potentially dilutive securities excluded from the computation of diluted net income per share of common stock | 105,157 | 2,562 | 105,157 | 2,562 |
Restricted Stock Units | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Potentially dilutive securities excluded from the computation of diluted net income per share of common stock | 5,141 | 0 | 10,575 | 6,256 |
Earnings_per_share_Reconciliat
Earnings per share - Reconciliation of Basic and Diluted Net Income Per Share Attributable to Common Stockholders (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Net income per share: | ' | ' | ' | ' |
Net income | $2,789 | $1,401 | $10,370 | $7,317 |
Weighted average shares of common stock outstanding used in computing net income-basic | 16,937,139 | 17,249,536 | 16,901,089 | 17,085,833 |
Weighted average shares of common stock outstanding used in computing net income-diluted | 17,398,006 | 17,781,720 | 17,386,408 | 17,702,221 |
Net income per share | ' | ' | ' | ' |
-Basic (in dollars per share) | $0.16 | $0.08 | $0.61 | $0.43 |
-Diluted (in dollars per share) | $0.16 | $0.08 | $0.60 | $0.41 |
Stock Options | ' | ' | ' | ' |
Net income per share: | ' | ' | ' | ' |
Potential dilutive | 444,822 | 523,881 | 471,427 | 609,222 |
Restricted Stock Units | ' | ' | ' | ' |
Net income per share: | ' | ' | ' | ' |
Potential dilutive | 16,045 | 8,303 | 13,892 | 7,166 |
Geographic_Areas_and_Product_S2
Geographic Areas and Product Sales - Net Sales by Geographic Area (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Net sales | $46,177 | $36,283 | $143,867 | $117,262 |
UNITED STATES | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Net sales | 44,459 | 34,413 | 138,130 | 111,984 |
CANADA | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Net sales | $1,718 | $1,870 | $5,737 | $5,278 |
Geographic_Areas_and_Product_S3
Geographic Areas and Product Sales - Net Sales by Product (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue from External Customer [Line Items] | ' | ' | ' | ' |
Net sales | $46,177 | $36,283 | $143,867 | $117,262 |
Meals | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' |
Net sales | 23,933 | 16,223 | 70,226 | 52,759 |
Snacks | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' |
Net sales | 17,075 | 14,908 | 54,953 | 47,517 |
Dressings, Condiments and Other | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' |
Net sales | $5,169 | $5,152 | $18,688 | $16,986 |
Product_Recall_Additional_Info
Product Recall - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 |
Product Recall Disclosure [Abstract] | ' | ' |
Amount recovered from the submitted claim | $0.40 | $1.60 |
Product_Recall_Impact_of_the_R
Product Recall - Impact of the Recall-Related Charges and Related Insurance Recoveries (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Product Recall Disclosure [Abstract] | ' | ' | ' | ' |
Benefit to net sales | $104 | ($1,570) | $855 | ($1,570) |
Benefit to cost of sales | 280 | -690 | 533 | -690 |
Benefit to/(incremental) selling, general and administrative expenses | -7 | 0 | -18 | 0 |
Total benefit to income before income taxes | 377 | -2,260 | 1,370 | -2,260 |
Benefit to net income | $224 | ($1,346) | $827 | ($1,346) |
Benefit to net income per diluted share | $0.01 | ($0.08) | $0.05 | ($0.08) |
Planned_Acquisition_Detail
Planned Acquisition (Detail) (USD $) | Dec. 31, 2013 | Mar. 31, 2013 | Nov. 05, 2013 | Dec. 31, 2013 |
Joplin Plant | Joplin Plant | |||
Business Acquisition [Line Items] | ' | ' | ' | ' |
Business acquisition, cash paid | ' | ' | $6,000,000 | ' |
Business acquisition, inventory value | ' | ' | 4,000,000 | ' |
Number of years the plant produced as primary manufacturer | ' | ' | '10 years | ' |
Production supply accounted by the plant currently | ' | ' | 50.00% | ' |
Supply agreement with affiliate | ' | ' | '3 years | ' |
Restricted cash | $300,000 | $0 | ' | $300,000 |