Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Mar. 31, 2018 | May 25, 2018 | Sep. 30, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Thermon Group Holdings, Inc. | ||
Entity Central Index Key | 1,489,096 | ||
Current Fiscal Year End Date | --03-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Mar. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 32,497,992 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 576,947,503 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Income Statement [Abstract] | |||
Sales | $ 308,609 | $ 264,130 | $ 281,928 |
Cost of sales | 164,798 | 152,199 | 150,613 |
Gross profit | 143,811 | 111,931 | 131,315 |
Operating expenses: | |||
Marketing, general and administrative and engineering | 94,615 | 77,715 | 80,729 |
Amortization of intangible assets | 16,458 | 11,772 | 12,112 |
Impairment of intangible assets and goodwill | 0 | 0 | 1,713 |
Income from operations | 32,738 | 22,444 | 36,761 |
Other income/(expenses): | |||
Interest income | 606 | 566 | 423 |
Interest expense | (8,984) | (3,518) | (4,142) |
Loss on extinguishment of debt | (376) | 0 | 0 |
Other expense | (5,595) | (410) | (676) |
Income before provision for income taxes | 18,389 | 19,082 | 32,366 |
Income tax expense | 5,170 | 4,098 | 8,716 |
Net income | 13,219 | 14,984 | 23,650 |
Income attributable to non-controlling interests | 1,306 | 343 | 641 |
Net income available to Thermon Group Holdings, Inc. | 11,913 | 14,641 | 23,009 |
Other comprehensive income: | |||
Net income available to Thermon Group Holdings, Inc. | 11,913 | 14,641 | 23,009 |
Foreign currency translation adjustment | 12,030 | (4,536) | (3,242) |
Derivative valuation, net of tax | 34 | 791 | (340) |
Other | (270) | (21) | 413 |
Total comprehensive income | $ 23,707 | $ 10,875 | $ 19,840 |
Net income per common share: | |||
Basic (in dollars per share) | $ 0.37 | $ 0.45 | $ 0.72 |
Diluted (in dollars per share) | $ 0.36 | $ 0.45 | $ 0.71 |
Weighted-average shares used in computing net income per common share: | |||
Basic (in shares) | 32,423,581 | 32,301,661 | 32,176,925 |
Diluted (in shares) | 32,797,351 | 32,633,281 | 32,592,646 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 33,879 | $ 42,842 |
Investments | 1,022 | 44,786 |
Accounts receivable, net of allowance for doubtful accounts of $1,231 and $518 as of March 31, 2018 and 2017, respectively | 94,411 | 63,719 |
Inventories, net | 63,829 | 34,020 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 16,114 | 4,973 |
Prepaid expenses and other current assets | 9,054 | 5,806 |
Income tax receivable | 1,885 | 2,028 |
Total current assets | 220,194 | 198,174 |
Property, plant and equipment, net | 74,485 | 43,266 |
Goodwill | 210,566 | 122,521 |
Intangible assets, net | 151,434 | 86,178 |
Deferred income taxes | 3,425 | 2,823 |
Other long term assets | 2,373 | 1,118 |
Total assets | 662,477 | 454,080 |
Current liabilities: | ||
Accounts payable | 22,995 | 15,683 |
Accrued liabilities | 22,810 | 13,142 |
Current portion of long term debt | 2,500 | 20,250 |
Billings in excess of costs and estimated earnings on uncompleted contracts | 8,143 | 2,767 |
Income taxes payable | 5,952 | 481 |
Total current liabilities | 62,400 | 52,323 |
Long-term debt, net of current maturities and deferred debt issuance costs and debt discounts of $7,967 and $524 as of March 31, 2018 and 2017, respectively | 214,533 | 60,226 |
Deferred income taxes | 34,252 | 25,661 |
Other noncurrent liabilities | 10,439 | 3,368 |
Total liabilities | 321,624 | 141,578 |
Equity | ||
Common stock: $.001 par value; 150,000,000 authorized; 32,492,339 and 32,365,553 shares issued and outstanding at March 31, 2018 and 2017, respectively | 32 | 32 |
Preferred stock: $.001 par value; 10,000,000 authorized; no shares issued and outstanding | 0 | 0 |
Additional paid in capital | 222,622 | 219,284 |
Accumulated other comprehensive loss | (36,541) | (48,335) |
Retained earnings | 148,812 | 136,899 |
Total Thermon Group Holdings, Inc. shareholders' equity | 334,925 | 307,880 |
Non-controlling interests | 5,928 | 4,622 |
Total equity | 340,853 | 312,502 |
Total liabilities and equity | $ 662,477 | $ 454,080 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts (in dollars) | $ 1,231 | $ 518 |
Debt issuance costs, net | $ 7,967 | $ 524 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 32,492,339 | 32,365,553 |
Common stock, shares outstanding | 32,492,339 | 32,365,553 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Consolidated Statement of Equit
Consolidated Statement of Equity Consolidated Statement of Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings (Deficit) [Member] | Noncontrolling Interest [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | DirectorsCommon Stock [Member] | EmployeesCommon Stock [Member] | Executive OfficersCommon Stock [Member] |
Balance, beginning of period, shares at Mar. 31, 2015 | 32,082,393 | ||||||||
Balance, beginning of period at Mar. 31, 2015 | $ 271,766 | $ 32 | $ 213,885 | $ 99,249 | $ 0 | $ (41,400) | |||
Issuance of common stock in exercise of stock options, shares | 69,704 | 29,056 | |||||||
Issuance of common stock in exercise of stock options | $ 240 | 240 | |||||||
Issuance of restricted stock as deferred compensation to employees and directors, shares | 18,578 | ||||||||
Issuance of common stock in lieu of compensation, shares | 69,704 | 22,989 | |||||||
Stock compensation expense | 3,749 | 3,749 | |||||||
Excess tax deduction from stock options | 92 | 92 | |||||||
Repurchase of employee stock units on vesting | (1,265) | (1,265) | |||||||
Net income (loss) | 23,009 | 23,009 | |||||||
Foreign curency translation adjustment | (3,242) | (3,242) | |||||||
Interest rate swap | (340) | (340) | |||||||
Other | 413 | 413 | |||||||
Non-controlling interest in acquisition | 3,638 | 3,638 | |||||||
Income attributable to non-controlling interests | 641 | 641 | |||||||
Balance, end of period, shares at Mar. 31, 2016 | 32,222,720 | ||||||||
Balance, end of period at Mar. 31, 2016 | 298,701 | $ 32 | 216,701 | 122,258 | 4,279 | (44,569) | |||
Issuance of common stock in exercise of stock options, shares | 43,121 | ||||||||
Issuance of common stock in exercise of stock options | $ 250 | 250 | |||||||
Issuance of restricted stock as deferred compensation to employees and directors, shares | 19,824 | 19,824 | |||||||
Issuance of common stock in lieu of compensation, shares | 47,179 | 32,709 | |||||||
Stock compensation expense | $ 3,402 | 3,402 | |||||||
Excess tax deduction from stock options | (1,069) | (1,069) | |||||||
Net income (loss) | 14,641 | 14,641 | |||||||
Foreign curency translation adjustment | (4,536) | (4,536) | |||||||
Interest rate swap | 791 | 791 | |||||||
Other | (21) | (21) | |||||||
Income attributable to non-controlling interests | $ 343 | 343 | |||||||
Balance, end of period, shares at Mar. 31, 2017 | 32,365,553 | 32,365,553 | |||||||
Balance, end of period at Mar. 31, 2017 | $ 312,502 | $ 32 | 219,284 | 136,899 | 4,622 | (48,335) | |||
Issuance of common stock in exercise of stock options, shares | 42,636 | ||||||||
Issuance of common stock in exercise of stock options | 300 | 300 | |||||||
Issuance of restricted stock as deferred compensation to employees and directors, shares | 20,216 | 20,216 | |||||||
Issuance of common stock in lieu of compensation, shares | 43,445 | 20,489 | |||||||
Stock compensation expense | 3,519 | 3,519 | |||||||
Excess tax deduction from stock options | (481) | (481) | |||||||
Net income (loss) | 11,913 | 11,913 | |||||||
Foreign curency translation adjustment | 12,030 | 12,030 | |||||||
Interest rate swap | 34 | 34 | |||||||
Other | (270) | (270) | |||||||
Income attributable to non-controlling interests | $ 1,306 | 1,306 | |||||||
Balance, end of period, shares at Mar. 31, 2018 | 32,492,339 | 32,492,339 | |||||||
Balance, end of period at Mar. 31, 2018 | $ 340,853 | $ 32 | $ 222,622 | $ 148,812 | $ 5,928 | $ (36,541) |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Operating activities | |||
Net income | $ 13,219 | $ 14,984 | $ 23,650 |
Adjustment to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 24,420 | 17,832 | 17,409 |
Amortization of debt costs | 1,657 | 390 | 732 |
Amortization of inventory step-up | 869 | 0 | 0 |
Loss on extinguishment of debt | 376 | 0 | 0 |
Stock compensation expense | 3,519 | 3,402 | 3,749 |
Impairment of acquisition related to goodwill and intangibles | 0 | 0 | 1,713 |
Deferred income taxes | (11,337) | (3,262) | (4,090) |
Long term foreign exchange derivative | 1,540 | 0 | 0 |
Release of reserve for uncertain tax positions | 0 | (128) | (1,312) |
Other | (773) | 152 | 510 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (13,818) | (5,212) | 5,211 |
Inventories | (9,059) | 6,579 | 1,637 |
Costs and estimated earnings in excess of billings on uncompleted contracts | (6,067) | 2,599 | (350) |
Other current and non-current assets | (2,625) | (570) | (2,125) |
Accounts payable | 2,003 | (4,608) | 1,006 |
Accrued liabilities and non-current liabilities | 13,950 | (3,173) | (594) |
Income taxes payable and receivable | 4,041 | (2,545) | 774 |
Net cash provided by operating activities | 21,915 | 26,440 | 47,920 |
Investing activities | |||
Purchases of property, plant and equipment | (10,008) | (8,370) | (12,581) |
Sales of rental equipment at net book value | 936 | 350 | 2,193 |
Proceeds from the sale of property, plant and equipment | 13 | 811 | 0 |
Cash paid for acquisitions, net of cash acquired | (202,693) | 0 | (31,180) |
Purchase of investments | (8,123) | (44,786) | 0 |
Proceeds from the sale of investments | 53,406 | 0 | 0 |
Net cash used in investing activities | (166,469) | (51,995) | (41,568) |
Financing activities | |||
Proceeds from senior secured notes | 250,000 | 0 | 0 |
Payments on long term debt and revolving credit facility | (116,000) | (13,500) | (13,500) |
Proceeds from revolving credit facility | 10,000 | 0 | 0 |
Lease financing, net | (264) | (257) | (235) |
Issuance costs associated with debt financing | (9,698) | 0 | (341) |
Issuance of common stock including exercise of stock options | 383 | 168 | 240 |
Benefit (loss) from excess tax deduction from option exercises | 0 | (448) | 92 |
Repurchase of employee stock units on vesting | (481) | (621) | (1,265) |
Net cash provided by (used in) financing activities | 133,940 | (14,658) | (15,009) |
Effect of exchange rate changes on cash and cash equivalents | 1,651 | (1,516) | (547) |
Change in cash and cash equivalents | (8,963) | (41,729) | (9,204) |
Cash and cash equivalents at beginning of period | 42,842 | 84,570 | 93,774 |
Cash and cash equivalents at end of period | 33,879 | 42,842 | 84,570 |
Interest | 7,348 | 3,085 | 3,366 |
Income taxes paid | 7,728 | 9,280 | 15,652 |
Income tax refunds received | $ 818 | $ 0 | $ 121 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Summary of Significant Accounting Policies | Organization and Summary of Significant Accounting Policies Organization On April 30, 2010, a group of investors led by entities affiliated with CHS Capital LLC ("CHS") and two other private equity firms acquired a controlling interest in Thermon Holding Corp. and its subsidiaries from Thermon Holdings, LLC ("Predecessor") for approximately $321,500 in a transaction that was financed by approximately $129,252 of equity investments by CHS, two other private equity firms and certain members of our current and former management team (collectively, the "management investors") and $210,000 of debt raised in an exempt Rule 144A senior secured note offering to qualified institutional investors (collectively, the "CHS Transactions"). The proceeds from the equity investments and debt financing were used both to finance the acquisition and pay related transaction costs. As a result of the CHS Transactions, Thermon Group Holdings, Inc. became the ultimate parent of Thermon Holding Corp. Thermon Group Holdings, Inc. and its direct and indirect subsidiaries are referred to collectively as "we," "our," or the "Company" herein. We refer to CHS and the two other private equity fund investors collectively as "our former private equity sponsors." Basis of Consolidation The consolidated financial statements include the accounts of the Company, its subsidiaries and entities in which the Company has a controlling financial interest. The ownership of noncontrolling investors is recorded as noncontrolling interests. All significant inter-company balances and transactions have been eliminated in consolidation. Consolidated subsidiaries domiciled in foreign countries comprised approximately 63% , 55% and 55% , of the Company's consolidated sales and $33,501 , $21,698 and $19,304 of the Company's consolidated pretax income for fiscal 2018 , fiscal 2017 and fiscal 2016 , respectively, and 68% and 59% , of the Company's consolidated total assets at March 31, 2018 and 2017 , respectively. Segment Reporting In connection with acquisitions made since fiscal 2015, the Company reviewed its determination of segments. Previously, we aggregated geographic markets into one reportable segment. Based on our review, we revised our segment reporting to four reportable segments based on four geographic countries or regions: United States, Canada, Europe and Asia. Within our four reportable segments, our primary products and services are focused on thermal solutions primarily related to the electrical heat tracing industry. Each of our reportable segments serves a similar class of customers including large EPC companies, international and regional oil and gas companies, commercial sub-contractors, electrical component distributors and direct sales to existing plant or industrial applications. Profitability within our segments is measured by operating income. Profitability can vary in each of our reportable segments based on the competitive environment within the region, the level of corporate overhead, such as the salaries of our senior executives, and the level of research and development and marketing activities in the region, as well as the mix of products and services. Since March 2015, we have acquired Unitemp, IPI, Sumac and Thermon Heating Systems ("THS"). Both Unitemp and IPI offer thermal solutions and have been included in our Europe and United States reportable segments, respectively. Sumac provides temporary power products that differ from our core thermal solutions business. As operating results from Sumac comprise less than 10% of our total sales and operating income, Sumac has been aggregated in our Canada segment. THS, recently acquired in October 2017, has similar economic characteristics as the core Thermon process heating operations. Management intends to integrate THS into the existing Thermon operations as soon as practicable. Therefore, THS has been aggregated in our Canada and United States segments. See Note 17, "Segment Information" for financial data relating to our four reportable geographic segments. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results inevitably will differ from those estimates, and such differences may be material to the financial statements. Cash Equivalents Cash and cash equivalents consist of cash in bank and money market funds. All highly liquid investments purchased with original maturities of three months or less are considered to be cash equivalents. Receivables The Company's receivables are recorded at cost when earned and represent claims against third parties that will be settled in cash. The carrying value of the Company's receivables, net of allowance for doubtful accounts, represents their estimated net realizable value. If events or changes in circumstances indicate specific receivable balances may be impaired, further consideration is given to the Company's ability to collect those balances and the allowance is adjusted accordingly. The Company has established an allowance for doubtful accounts based upon an analysis of aged receivables. Past-due receivable balances are written-off when the Company's internal collection efforts have been unsuccessful in collecting the amounts due. The Company's primary base of customers operates in the oil, chemical processing and power generation industries. Although the Company has a concentration of credit risk within these industries, the Company has not experienced significant collection losses on sales to these customers. The Company's foreign receivables are not concentrated within any one geographic segment nor are they subject to any current economic conditions that would subject the Company to unusual risk. The Company does not generally require collateral or other security from customers. The Company performs credit evaluations of new customers and sometimes requires deposits, prepayments or use of trade letters of credit to mitigate our credit risk. Allowance for doubtful account balances were $1,231 and $518 as of March 31, 2018 and 2017 , respectively. Although we have fully provided for these balances, we continue to pursue collection of these receivables. The following table summarizes the annual changes in our allowance for doubtful accounts: Balance at March 31, 2015 $ 785 Reduction in reserve 214 Write-off of uncollectible accounts (343 ) Balance at March 31, 2016 656 Additions to reserve 307 Write-off of uncollectible accounts (445 ) Balance at March 31, 2017 518 Additions to reserve 787 Write-off of uncollectible accounts (74 ) Balance at March 31, 2018 $ 1,231 Inventories Inventories, principally raw materials and finished goods, are valued at the lower of cost (weighted average cost) or market. We write down our inventory for estimated excess or obsolete inventory equal to the difference between the cost of inventory and estimated fair market value based on assumptions of future demand and market conditions. Fair market value is determined quarterly by comparing inventory levels of individual products and components to historical usage rates, current backlog and estimated future sales and by analyzing the age and potential applications of inventory, in order to identify specific products and components of inventory that are judged unlikely to be sold. Our finished goods inventory consists primarily of completed electrical cable that has been manufactured for various heat tracing solutions, as well as various types of immersion, circulation and space heaters for THS. Most of our manufactured product offerings are built to industry standard specifications that have general purpose applications and therefore are sold to a variety of customers in various industries. Some of our products, such as custom orders and ancillary components outsourced from third-party manufacturers, have more specific applications and therefore may be at a higher risk of inventory obsolescence. Inventory is written-off in the period in which the disposal occurs. Actual future write-offs of inventory may differ from estimates and calculations used to determine valuation allowances due to changes in customer demand, customer negotiations, product application, technology shifts and other factors. Historically, inventory obsolescence and potential excess cost adjustments have been within our expectations, and management does not believe that there is a reasonable likelihood that there will be a material change in future estimates or assumptions used to calculate the inventory valuation reserves. Revenue Recognition Revenues from sales of products are recognized when persuasive evidence of an agreement exists, delivery of the product has occurred, the fee is fixed or determinable, and collectability is probable. On average, less than 20% of our annual revenues are derived from the installation of heat tracing solutions for which we apply construction-type accounting. These construction-related contracts are awarded on a competitive bid and negotiated basis. We offer our customers a range of contracting options, including cost-reimbursable, fixed-price and hybrid, which has both cost-reimbursable and fixed-price characteristics. Most of our construction contract revenue is recognized using either the percentage-of-completion method, based on the percentage that actual costs-to-date bear to total estimated costs to complete each contract or as it relates to cost-reimbursable projects, revenue is recognized as work is performed. We follow the guidance of FASB ASC Revenue Recognition Topic 605-35 for accounting policies relating to our use of the percentage-of-completion method, estimating costs and revenue recognition, including the recognition of profit incentives, unapproved change orders and claims and combining and segmenting contracts. We utilize the cost-to-cost approach to measure the extent of progress toward completion, as we believe this method is less subjective than relying on assessments of physical progress. Under the cost-to-cost approach, the use of total estimated cost to complete each contract is a significant variable in the process of determining recognized revenue and is a significant factor in the accounting for contracts. Significant estimates that impact the cost to complete each contract are costs of engineering, materials, components, equipment, labor and subcontracts; labor productivity; schedule durations, including subcontract and supplier progress; liquidated damages; contract disputes, including claims; achievement of contractual performance requirements; and contingency, among others. The cumulative impact of revisions in total cost estimates as contracts progress is reflected in the period in which these changes become known, including the recognition of any losses expected to be incurred on contracts in progress. Due to the various estimates inherent in our construction contract accounting, actual results could differ from those estimates. Our historical construction contract cost estimates have generally been accurate, and management does not believe that there is a reasonable likelihood that there will be a material change in future estimates or the methodology used to calculate these estimates. Sales which are not accounted for under ASC 605-35 may have multiple elements, including heat tracing product, engineering and "field" services such as inspection, repair and/or training. We assess such revenue arrangements to determine the appropriate units of accounting. Each deliverable provided under multiple-element arrangements is considered a separate unit of accounting. Revenues associated with the sale of a product are recognized upon delivery, while the revenue for engineering and field services are recognized as services are rendered, limited to the amount of consideration which is not contingent upon the successful provision of future products or services under the arrangement. Amounts assigned to each unit of accounting are based on an allocation of total arrangement consideration using a hierarchy of estimated selling price for the deliverables. The selling price used for each deliverable will be based on Vendor Specific Objective Evidence ("VSOE"), if available, Third Party Evidence ("TPE"), if VSOE is not available, or estimated selling price, if neither VSOE nor TPE is available. See "Recent Accounting Pronouncements" within Note 1 for additional information on the impact of Accounting Standard Update 2014-9 on our performance obligations and the method which we determine and allocate the price of our contracts beginning in fiscal 2019. Property, Plant and Equipment Property, plant and equipment are stated at cost. Expenditures for renewals and improvements that significantly extend the useful life of an asset are capitalized. Expenditures for maintenance and repairs of assets are charged to operations as incurred when assets are sold or retired, the cost and accumulated depreciation are removed from the accounts and any gain or loss is credited or charged to operations. Depreciation is computed using the straight-line method over the following lives: Useful Lives in Years Land improvements 15 - 20 Buildings and improvements 10 - 40 Machinery and equipment 3 - 25 Office furniture and equipment 3 - 10 Internally developed software 5 - 7 Goodwill and Other Intangible Assets We evaluate goodwill for impairment annually during the fourth quarter of our fiscal year, or more frequently when indicators of impairment are present. We operate as four reportable segments based on four geographic countries or regions. Within these four reportable segments we have seven reporting units, each of which is assessed for potential impairments. We perform a qualitative analysis to determine whether it is more likely than not that the fair value of goodwill is less than its carrying amount. Some of the impairment indicators we consider include significant differences between the carrying amount and the estimated fair value of our assets and liabilities; macroeconomic conditions such as a deterioration in general economic condition or limitations on accessing capital; industry and market considerations such as a deterioration in the environment in which we operate and an increased competitive environment; cost factors such as increases in raw materials, labor, or other costs that have a negative effect on earnings and cash flows; overall financial performance such as negative or declining cash flows or a decline in actual or planned revenue or earnings compared with actual and projected results of relevant prior periods; other relevant events such as litigation, changes in management, key personnel, strategy or customers; the testing for recoverability of our long-lived assets and a potential decrease in share price. We evaluate the significance of identified events and circumstances on the basis of the weight of evidence along with how they could affect the relationship between the reporting unit's fair value and carrying amount, including positive mitigating events and circumstances. If we determine it is more likely than not that the fair value of goodwill is less than its carrying amount, then we perform the first step of the two-step goodwill impairment test. In the first step of the goodwill impairment test, the reporting unit's carrying amount (including goodwill) and its fair value are compared. If the estimated fair value of a reporting unit is less than the carrying value, a second step is performed to compute the amount of the impairment by determining an "implied fair value" of goodwill. The determination of the "implied fair value" requires us to allocate the estimated value of the reporting unit to the assets and liabilities of the reporting unit. Any unallocated fair value represents the "implied fair value" of goodwill, which is compared to the corresponding carrying value. If the "implied fair value" is less than the carrying value, an impairment charge will be recorded. In fiscal 2016, we recorded a $1,240 goodwill impairment charge related to the Unitemp acquisition as our expectations of future revenues and profitability were below those estimated at the time of the acquisition and, during the same period, we impaired an additional $473 of other intangibles as their fair value was less than their carrying value. In fiscal 2018 and 2017, the Company determined that no impairment of goodwill existed. Other intangible assets include indefinite lived intangible assets for which we must also perform an annual test of impairment. The Company's indefinite lived intangible assets consist primarily of trademarks. The fair value of the Company's trademarks is calculated using a "relief from royalty payments" methodology. This approach involves first estimating reasonable royalty rates for each trademark then applying these royalty rates to a net sales stream and discounting the resulting cash flows to determine the fair value. The royalty rate is estimated using both a market and income approach. The market approach relies on the existence of identifiable transactions in the marketplace involving the licensing of trademarks similar to those owned by the Company. The income approach uses a projected pretax profitability rate relevant to the licensed income stream. We believe the use of multiple valuation techniques results in a more accurate indicator of the fair value of each trademark. This fair value is then compared with the carrying value of each trademark. The results of this test during the fourth quarter of our fiscal year indicated that there was no impairment of our indefinite life intangible assets during fiscal 2018 , 2017 and 2016. Debt Issuance Costs The Company defers the costs associated with debt and financing arrangements. These costs are amortized over the life of the loan or financing as interest expense. Additionally, for any unscheduled principle payments the Company will record additional deferred debt charges on a pro rata basis of the unamortized deferred debt balance at the time of the repayment. When debt or the contract is retired prematurely, the proportionate unamortized deferred issuance costs are expensed as loss on retirement. Deferred debt issuance costs expensed as part of interest expense for fiscal 2018 , fiscal 2017 and fiscal 2016 were $1,657 , $391 and $732 , respectively. Included in these amounts are the acceleration of amortization associated with the termination of the term loan A in fiscal 2018 of $376 , $880 related to the unscheduled principal repayment of $25,000 of term loan B in fiscal 2018, and the second amendment to our senior secured credit agreement, redemptions of our senior secured notes and our prior revolving credit facility in fiscal 2016. Long-Lived Assets The Company evaluates its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of these assets is measured by comparison of the carrying amounts to the future undiscounted cash flows that the assets are expected to generate. If the long-lived assets are considered impaired, the impairment to be recognized equals the amount by which the carrying value of the asset exceeds the estimated fair value and is recorded in the period the determination was made. Stock-based Compensation We account for share-based payments to employees in accordance with ASC 718, Compensation-Stock Compensation , which requires that share-based payments (to the extent they are compensatory) be recognized in our consolidated statements of operations and comprehensive income based on their fair values. As required by ASC 718, we recognize stock-based compensation expense for share-based payments that are expected to vest. In determining whether an award is expected to vest, we account for forfeitures as they occur, rather than estimate expected forfeitures. We are also required to determine the fair value of stock-based awards at the grant date. For option awards that are subject to service conditions and/or performance conditions, we estimate the fair values of employee stock options using a Black-Scholes-Merton valuation model. Some of our option grants and awards included a market condition for which we used a Monte Carlo pricing model to establish grant date fair value. These determinations require judgment, including estimating expected volatility. If actual results differ significantly from these estimates, stock- based compensation expense and our results of operations could be impacted. Income Taxes We account for income taxes under the asset and liability method that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in our financial statements or tax returns. Judgment is required in assessing the future tax consequences of events that have been recognized in our financial statements or tax returns. Variations in the actual outcome of these future tax consequences could materially impact our financial position, results of operations or effective tax rate. Significant judgment is required in determining our worldwide income tax provision. In the ordinary course of a global business, there are many transactions and calculations where the ultimate tax outcome is uncertain. Some of these uncertainties arise as a consequence of revenue sharing and cost reimbursement arrangements among related entities, the process of identifying items of revenue and expense that qualify for preferential tax treatment, and segregation of foreign and domestic earnings and expenses to avoid double taxation. Although we believe that our estimates are reasonable, the final tax outcome of these matters could be different from that which is reflected in our historical income tax provisions and accruals. Such differences could have a material effect on our income tax provision and net income in the period in which such determination is made. In estimating future tax consequences, all expected future events are considered other than enactments of changes in tax laws or rates. Valuation allowances are established when necessary to reduce deferred tax assets to amounts which are more likely than not to be realized. We consider future growth, forecasted earnings, future taxable income, the mix of earnings in the jurisdictions in which we operate, historical earnings, taxable income in prior years, if carryback is permitted under the law, and prudent and feasible tax planning strategies in determining the need for a valuation allowance. In the event we were to determine that we would not be able to realize all or part of our net deferred tax assets in the future, an adjustment to the deferred tax assets valuation allowance would be charged to earnings in the period in which we make such a determination, or goodwill would be adjusted at our final determination of the valuation allowance related to an acquisition within the measurement period. If we later determine that it is more likely than not that the net deferred tax assets would be realized, we would reverse the applicable portion of the previously provided valuation allowance as an adjustment to earnings at such time. The amount of income tax we pay is subject to ongoing audits by federal, state and foreign tax authorities, which often result in proposed assessments. Our estimate of the potential outcome for any uncertain tax issue is highly judgmental. We account for these uncertain tax issues pursuant to ASC 740, Income Taxes , which contains a two-step approach to recognizing and measuring uncertain tax positions taken or expected to be taken in a tax return. The first step is to determine if the weight of available evidence indicates that it is more likely than not that the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. Although we believe we have adequately reserved for our uncertain tax positions, no assurance can be given with respect to the final outcome of these matters. We adjust reserves for our uncertain tax positions due to changing facts and circumstances, such as the closing of a tax audit, judicial rulings, refinement of estimates or realization of earnings or deductions that differ from our estimates. To the extent that the final outcome of these matters is different than the amounts recorded, such differences generally will impact our provision for income taxes in the period in which such a determination is made. Our provisions for income taxes include the impact of reserve provisions and changes to reserves that are considered appropriate and also include the related interest and penalties. During fiscal 2018, we revised our permanent reinvestment position whereby we expect to repatriate future earnings. Given the Tax Act’s significant changes and potential opportunities to repatriate cash tax free, we have reevaluated our current permanent reinvestment position. Accordingly, we will no longer assert a permanent reinvestment position in most of our foreign subsidiaries. We expect to repatriate certain earnings which will be subject to withholding taxes. These additional withholding taxes are being recorded as an additional deferred tax liability associated with the basis difference in such jurisdictions. The uncertainty related to the taxation of such withholding taxes on distributions under the Tax Act and finalization of the cash repatriation plan makes the deferred tax liability a provisional amount. Please see Note 16, "Income Taxes" for more information on the impacts of the Tax Act. Foreign Currency Transactions and Translation Exchange adjustments resulting from foreign currency transactions are recognized in income as realized. For the Company's non-U.S. dollar functional currency subsidiaries, assets and liabilities of foreign subsidiaries are translated into U.S. dollars using year-end exchange rates. Income and expense items are translated at a weighted average exchange rate prevailing during the year. Adjustments resulting from translation of financial statements are reflected as a separate component of shareholders' equity. Loss Contingencies We accrue for probable losses from contingencies on an undiscounted basis, when such costs are considered probable of being incurred and are reasonably estimable. Legal expense related to such matters are expensed as incurred. We periodically evaluate available information, both internal and external, relative to such contingencies and adjust this accrual as necessary. Disclosure of a contingency is required if there is at least a reasonable possibility that a material loss has been incurred. In determining whether a loss should be accrued we evaluate, among other factors, the degree of probability of an unfavorable outcome and the ability to make a reasonable estimate of the amount of loss. Warranties The Company offers a standard warranty on product sales in which we will replace a defective product for a period of one year. Warranties on construction projects are negotiated individually, are typically one year in duration, and may include the cost of labor to replace products. Factors that affect the Company's warranty liability include the amount of sales, historical and anticipated rates of warranty claims, and cost per claim. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. Research and Development Research and development expenditures are expensed when incurred and are included in marketing, general and administrative and engineering expenses. Research and development expenses include salaries, direct costs incurred, and building and overhead expenses. The amounts expensed for fiscal 2018 , fiscal 2017 and fiscal 2016 were $5,240 , $3,501 and $3,338 , respectively. Shipping and Handling Cost The Company includes shipping and handling as part of cost of sales and freight collections from customers is included as part of sales. Economic Dependence As of March 31, 2018 and 2017 , one major customer represented approximately 4% and 14% , respectively of the Company's accounts receivable balance. As of March 31, 2018 and March 31, 2016, no one customer represented more than 10% of the Company's accounts receivable balance. In fiscal 2018 , fiscal 2017 or fiscal 2016 no one customer represented more than 10% of sales. Reclassifications Certain reclassifications have been made within these consolidated financial statements to conform prior periods to current period classifications. On the Consolidated Balance Sheet at March 31, 2017, we reduced the previously reported balance of prepaid expenses and other current assets by $2,000 and increased income tax receivable by the same amount. The income tax receivable amounts relate to tax payments or accruals made currently, which have not been included in tax returns filed within their respective jurisdictions. The Company believes that presenting these amounts as current income tax receivables provides a better understanding of our position related to taxation obligations. Correction of an Error During the year ended March 31, 2016, the Company recorded a correction of an error that reduced marketing, general and administrative and engineering expense by $498 and decreased additional paid in capital by an equivalent amount. In previous years, the Company had expensed the withholding tax value of equity awards that were withheld by the Company at vesting. The Company determined that the value of withheld shares should have been recorded as a reduction to additional paid in capital. Recent Accounting Pronouncements Revenue Recognition- In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09 "Revenue from Contracts with Customers" (Topic 606), which amends the existing revenue recognition requirements and guidance. The core principle of the new standard is to recognize revenue that reflects the consideration the Company expects to receive for goods or services when or as the promised goods or services are transferred to customers. Topic 606 requires more judgment than current guidance, as management will now be required to: (i) identify each performance obligation in contracts with customers, (ii) estimate any variable consideration included in the transaction price and (iii) allocate the transaction price to each performance obligation. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company adopted the amended guidance using the modified retrospective method as of April 1, 2018. To assess the impact of the standard, we utilize internal resources to lead the implementation effort and supplemented our internal resources with external consultants. As of March 31, 2018, the Company has completed the evaluation of its revenue streams and has reviewed a sample of customer contracts that we believe fairly represent contract traits that could be accounted for differently under amended guidance. The Company has begun evaluating the potential impact of the new revenue standard on each of the selected contracts including: (i) estimating the contract consideration under the new standard, (ii) identifying the performance obligations within the customer contracts, (iii) calculating the anticipated allocation of contract consideration to each performance obligation, (iv) determining the timing of revenue recognition for each performance obligation, and (v) determining the classification of the contract revenue for disclosure purposes. As a result of the evaluation, the Company has identified certain engineering services revenue related to projects on existing facilities that will now be deferred, until delivery of product, as a fulfillment obligation under the amended guidance, as well as other minor changes in accounting. The transition adjustment related to the adoption is estimated to be immaterial (less than 1% of total revenues for the fiscal year ended March 31, 2018 and total shareholders’ equity as of March 31, 2018), and we do not expect the adoption of this standard to materially impact the amount or timing of our revenue going forward. An adjustment will be recorded to our fis |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair Value . We measure fair value based on authoritative accounting guidance, which defines fair value, establishes a framework for measuring fair value and expands on required disclosures regarding fair value measurements. Inputs are referred to as assumptions that market participants would use in pricing the asset or liability. The uses of inputs in the valuation process are categorized into a three-level fair value hierarchy. • Level 1 — uses quoted prices in active markets for identical assets or liabilities we have the ability to access. • Level 2 — uses observable inputs other than quoted prices in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3 — uses one or more significant inputs that are unobservable and supported by little or no market activity, and that reflect the use of significant management judgment. Financial assets and liabilities with carrying amounts approximating fair value include cash, trade accounts receivable, accounts payable, accrued expenses and other current liabilities. The carrying amount of these financial assets and liabilities approximates fair value because of their short maturities. At March 31, 2018 and 2017 , no assets or liabilities were valued using Level 3 criteria. Information about our investments and long-term debt that is not measured at fair value follows: March 31, 2018 March 31, 2017 Carrying Value Fair Value Carrying Value Fair Value Valuation Technique Financial Assets Certificates of deposits with maturities greater than 90 days $ 1,022 $ 1,022 $ 44,786 $ 44,786 Level 2 - Market Approach Financial Liabilities Outstanding principal amount of senior secured credit facility $ 225,000 $ 225,000 $ 81,000 $ 81,000 Level 2 - Market Approach At March 31, 2018 and 2017 , the fair value of our variable rate term loan approximates its carrying value as we pay interest based on the current market rate. As the quoted price is only available for similar financial assets, the Company concluded the pricing is indirectly observable through dealers and has been classified as Level 2. Investments During fiscal 2018 and 2017, the Company maintained term deposit accounts at several foreign financial institutions with whom we have established relationships. Maturities on these deposits are greater than 90 days and less than one year and accordingly are classified as investments. The Company concluded that since the interest rates for these term deposits are based on the quoted rates from the various financial institutions that the pricing is indirectly observable and has been classified as a Level 2 market approach. Acquisition Related Foreign Exchange Option In connection with the execution of the purchase agreement for the THS acquisition on October 3, 2017, we entered into a combination of option contracts to secure the exchange rate of $200,000 CAD that would be contributed by the Company at closing on October 30, 2017. The options were structured such that the $200,000 CAD would be exchanged for no more than $162,100 and no less than $159,200 USD. At settlement date, Thermon took delivery of $200,000 CAD for $159,200 . At closing of the THS acquisition, the Canadian dollar weakened such that the actual spot foreign exchange rate was $155,900 . The resulting difference of $3,326 was recognized as realized loss on foreign exchange. Cross Currency Swap The Company has entered into a long term cross currency swap to hedge the currency rate fluctuations related to a $112,750 intercompany receivable from our wholly-owned Canadian subsidiary, Thermon Canada Inc., maturing on October 30, 2022. Periodic principal payments are to be settled twice annually with interest payments settled quarterly through the cross currency derivative contract. We do not designate the cross currency swap as a cash flow hedge under ASC 815. As of March 31, 2018 we recorded $1,540 of unrealized mark to market losses on the Cross Currency Swap, which is reported as "Other non-current liabilities", in the consolidated balance sheet. The mark to market valuation has been determined by actual quoted prices (Level 2). Foreign Currency Forward Contracts We transact business in various foreign currencies and have established a program that primarily utilizes foreign currency forward contracts to offset the risk associated with fluctuations of certain foreign currencies. Under this program, increases or decreases in our foreign currency exposures are offset by gains or losses on the forward contracts to mitigate foreign currency transaction gains or losses. These foreign currency exposures typically arise from intercompany transactions. Our forward contracts generally have terms of 30 days. We do not use forward contracts for trading purposes or designate these forward contracts as hedging instruments pursuant to ASC 815. We adjust the carrying amount of all contracts to their fair value at the end of each reporting period and unrealized gains and losses are included in our results of operations for that period. These gains and losses are intended to offset gains and losses resulting from settlement of payments received from our foreign operations which are settled in U.S. dollars. All outstanding foreign currency forward contracts are marked to market at the end of the period with unrealized gains and losses included in other expense. The fair value is determined by quoted prices from active foreign currency markets (Level 2). The consolidated balance sheets reflect unrealized gains within accounts receivable, net and unrealized losses within accrued liabilities. Our ultimate realized gain or loss with respect to currency fluctuations will depend on the currency exchange rates and other factors in effect as the contracts mature. As of March 31, 2018 and 2017 , the notional amounts of forward contracts were as follows: Notional amount of foreign exchange forward contracts by currency March 31, 2018 March 31, 2017 Russian Ruble $ 2,416 $ 250 Euro 750 — Canadian Dollar 4,000 — South Korean Won 10,500 1,300 Mexican Peso 200 450 Australian Dollar 850 375 Total notional amounts $ 18,716 $ 2,375 March 31, 2018 March 31, 2017 Fair Value Fair Value Assets Liabilities Assets Liabilities Foreign exchange contract forwards $ 229 $ 25 $ 62 $ 10 Recognized foreign currency gains or losses related to our forward contracts in the accompanying consolidated statements of operations and comprehensive income were losses of $96 , $453 and $411 for fiscal 2018 , fiscal 2017 and fiscal 2016 , respectively. Gains and losses from our forward contracts are intended to be offset by transaction gains and losses from the settlement of transactions denominated in foreign currencies. Our net foreign currency losses were $5,725 , $628 , and $550 for fiscal 2018 , fiscal 2017 , and fiscal 2016 , respectively. Foreign currency gains and losses are recorded within other expense in our consolidated statements of operations and comprehensive income. |
Acquisitions
Acquisitions | 12 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions THS acquisition On October 30, 2017, we, through a wholly-owned subsidiary, acquired 100% of the equity interests of CCI Thermal Technologies Inc. and certain related real estate assets for $261,950 CAD (approximately $204,235 USD at the exchange rate as of October 30, 2017) in cash. Such subsidiary and CCI Thermal Technologies Inc. amalgamated immediately after the closing of the acquisition to form Thermon Heating Systems, Inc. ("THS"), an indirect, wholly-owned subsidiary of the Company. THS is engaged in industrial process heating, focused on the development and production of advanced heating and filtration solutions for industrial and hazardous area applications and is headquartered in Edmonton, Alberta, Canada. THS markets its products through several diverse brands known for high quality, safety and reliability, and serves clients in the energy, petrochemical, electrical distribution, power, transit and industrial end markets globally. We believe we will be able to leverage our existing global sales force to further expand the reach of THS's product offerings. We recognized $85,156 of goodwill in connection with the THS transaction. THS has contributed $41,011 and $7,266 of revenue and operating income, respectively, to our Condensed Consolidated Statements of Operations and Comprehensive Income for the twelve months ended March 31, 2018. Pro forma financial information- The following table presents selected unaudited pro forma information for the Company assuming the acquisition of THS had occurred as of April 1, 2016. This pro forma financial information is presented for informational and illustrative purposes and does not purport to represent what the Company’s actual results would have been if the acquisition had occurred as of the date indicated or what such results would be for any future periods. In addition, the unaudited pro forma results do not include any anticipated synergies or other expected benefits of the acquisition or costs necessary to obtain the anticipated synergies and benefits. The pro forma financial information includes the amortization associated with the acquired intangible assets, interest expense associated with debt used to fund the acquisition, amortization of the inventory step-up, removal of aircraft and rent expense for assets not assumed in the transaction, acquisition related expenses, and the income tax affected for the pro forma results. Pro Forma Financial Information (Unaudited) Twelve months ended March 31, 2018 2017 Revenues $ 348,557 $ 331,007 Net income available to Thermon Group Holdings, Inc. 5,303 3,318 Earnings per share: Basic $ 0.16 $ 0.10 Diluted $ 0.16 $ 0.10 The following table details the purchase price of the THS transaction: Consideration to or on behalf of sellers at close $ 204,235 Fair value of total consideration transferred $ 204,235 The Company is in the process of obtaining all necessary information required to complete the THS acquisition accounting. Principal pending matters include receipt of final valuation estimates on acquired intangible and tangible assets, and final review of tax related matters. The following table summarizes the preliminary fair value of the assets acquired and liabilities assumed: Assets acquired: Cash $ 1,534 Accounts receivable 14,351 Costs and estimated earning in excess of billing on uncompleted contracts 450 Inventories 20,085 Other current assets 731 Property, plant and equipment 29,464 Identifiable intangible assets 79,002 Goodwill 85,156 Total assets 230,773 Liabilities assumed: Current liabilities 6,712 Other non-current liabilities 500 Non-current deferred tax liability 19,326 Total liabilities 26,538 Total consideration $ 204,235 In total, $4,093 of transaction costs were incurred related to the THS transaction, all of which were incurred during the twelve months ended March 31, 2018. As of March 31, 2018 the final working capital adjustment for the THS transaction has not been finalized, however, the such working capital adjustment is not expected to be material. Our provisional estimate of identifiable intangible assets at March 31, 2018 that were related to the THS transaction, inclusive of currency translation adjustments for the period, consisted of the following: Amortization period Gross Carrying Amount at March 31, 2018 Accumulated Amortization Net Carrying Amount at March 31, 2018 Products 10 years $ 64,611 $ 2,692 $ 61,919 Customer relationships 17 years 11,155 273 10,882 Backlog 1 year 3,230 1,346 1,884 Total $ 78,996 $ 4,311 $ 74,685 The weighted average useful life of acquired finite lived intangible assets related to THS transaction is 10.6 years . |
Net Income per Common Share
Net Income per Common Share | 12 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) per Common Share | Net Income per Common Share Basic net income per common share is computed by dividing net income available to Thermon Group Holdings, Inc. by the weighted average number of common shares outstanding during each period. Diluted net income per common share is computed by dividing net income available to Thermon Group Holdings, Inc. by the weighted average number of common shares and common share equivalents outstanding (if dilutive) during each period. The number of common share equivalents, which includes options and both restricted and performance stock units, is computed using the treasury stock method. With regard to the performance stock units, we assumed that the associated performance targets will be met at the target level of performance for purposes of calculating diluted net income per common share. The reconciliations of the denominators used to calculate basic net income per common share and diluted net income per common share for fiscal 2018 , fiscal 2017 , and fiscal 2016 , respectively, is as follows: Year Ended March 31, 2018 Year Ended March 31, 2017 Year Ended March 31, 2016 Basic net income per common share Net income available to Thermon Group Holdings, Inc. $ 11,913 $ 14,641 $ 23,009 Weighted-average common shares outstanding 32,423,581 32,301,661 32,176,925 Basic net income per common share $ 0.37 $ 0.45 $ 0.72 Year Ended March 31, 2018 Year Ended March 31, 2017 Year Ended March 31, 2016 Diluted net income per common share Net income available to Thermon Group Holdings, Inc. $ 11,913 $ 14,641 $ 23,009 Weighted-average common shares outstanding 32,423,581 32,301,661 32,176,925 Common share equivalents: Stock options issued 218,693 216,041 241,529 Restricted and performance stock units issued 155,077 115,579 174,192 Weighted average shares outstanding – dilutive 32,797,351 32,633,281 32,592,646 Diluted net income per common share $ 0.36 $ 0.45 $ 0.71 For the years ended March 31, 2018, 2017 and 2016, 76,205 , 59,950 and 49,097 equity awards, respectively, were not included in the calculation of diluted net income per common share since they would have had an anti-dilutive effect. |
Inventories
Inventories | 12 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following at March 31: 2018 2017 Raw materials $ 31,516 $ 12,270 Work in process 7,186 1,769 Finished goods 27,204 21,310 65,906 35,349 Valuation reserves (2,077 ) (1,329 ) Inventories, net $ 63,829 $ 34,020 The following table summarizes the annual changes in our valuation reserve accounts: Balance at March 31, 2015 $ 1,116 Additions in reserve 383 Charged to reserve (212 ) Balance at March 31, 2016 1,287 Additions in reserve 348 Charged to reserve (306 ) Balance at March 31, 2017 1,329 Additions in reserve 721 Charged to reserve 27 Balance at March 31, 2018 $ 2,077 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment consisted of the following at March 31: 2018 2017 Land, buildings and improvements $ 50,808 $ 23,812 Machinery and equipment 24,182 20,727 Office furniture and equipment 20,818 13,296 Internally developed software 4,069 3,188 Construction in progress 2,183 2,478 Property, plant and equipment at cost 102,060 63,501 Accumulated depreciation (27,575 ) (20,235 ) Property, plant and equipment, net $ 74,485 $ 43,266 Depreciation expense was $7,962 , $6,060 and $4,655 , in fiscal 2018 , fiscal 2017 , and fiscal 2016 , respectively. Included within depreciation expense was amortization of internally developed software of $495 , $496 , and $453 , in fiscal 2018 , fiscal 2017 and fiscal 2016 , respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The carrying amount of goodwill for all reporting segments as of March 31, 2018 , 2017 and 2016 is as follows: United States Canada Europe Asia Total Balance as of March 31, 2016 $ 48,971 $ 44,488 $ 19,427 $ 8,624 $ 121,510 Purchase price adjustment 3,045 — — — 3,045 Foreign currency translation impact — (1,044 ) (990 ) — (2,034 ) Balance as of March 31, 2017 $ 52,016 $ 43,444 $ 18,437 $ 8,624 $ 122,521 Goodwill acquired — 85,156 — — 85,156 Foreign currency translation impact — 167 2,722 — 2,889 Balance as of March 31, 2018 $ 52,016 $ 128,767 $ 21,159 $ 8,624 $ 210,566 Goodwill is tested for impairment on an annual basis, and between annual tests if indicators of potential impairment exist. We perform a qualitative analysis to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. If required, we also perform a quantitative analysis using the income approach, based on discounted future cash flows, which are derived from internal forecasts and economic expectations, and the market approach based on market multiples of guideline public companies. The most significant inputs in the Company's quantitative goodwill impairment tests are projected financial information, the weighted average cost of capital and market multiples for similar transactions. Our annual impairment test is performed during the fourth quarter of our fiscal year. In prior years, we experienced sizable declines in revenue and operating results within our Canadian operations, and considered such to be an indication of potential goodwill and intangible asset impairment. These declines in operating results principally resulted from lower crude oil prices, which had a significant adverse impact on capital spending in Canada. During fiscal 2018, we have experienced increased revenues and operating results in Canada, and project continued growth. Accordingly, during the fourth quarter of fiscal 2018, we did not conclude a triggering event existed within our Canadian reporting unit requiring further analysis. We will continue to evaluate our Canadian operations and assess on a quarterly basis whether it is more likely than not that the fair value of the Canadian reporting unit is less than its carrying amount. Similarly, based upon our qualitative analyses, we have not determined that it is more likely than not that the fair value of our U.S. reporting segment is less than its carrying amount; however, we have experienced losses in the U.S. during fiscal 2018. If changes in estimates and assumptions used to determine whether impairment exists, or if we experience future declines in actual and forecasted operating results and/or market conditions in the United States, we may be required to reevaluate the fair value of our United States reporting unit, which could ultimately result in an impairment to goodwill and/or indefinite-lived intangible assets in future periods. Our total intangible assets at March 31, 2018 , and 2017 consisted of the following (including THS, IPI, Sumac, and Unitemp): Gross Carrying Amount at March 31, 2018 Accumulated Amortization Net Carrying Amount at March 31, 2018 Gross Carrying Amount at March 31, 2017 Accumulated Amortization Net Carrying Amount at March 31, 2017 Products $ 64,611 $ 2,719 $ 61,892 $ — $ — $ — Trademarks 46,156 832 45,324 44,563 521 44,042 Developed technology 10,160 4,106 6,054 9,796 3,454 6,342 Customer relationships 113,378 77,646 35,732 99,676 64,682 34,994 Certifications 458 — 458 442 — 442 Other 5,863 3,889 1,974 2,626 2,268 358 Total $ 240,626 $ 89,192 $ 151,434 $ 157,103 $ 70,925 $ 86,178 Trademarks and certifications have indefinite lives with the exception of IPI and Unitemp trademarks, which have gross carrying amounts of $1,820 and $474 , respectively, that are subject to amortization. The useful life of the trademarks amortized is estimated at 8 years. Developed technology, customer relationships and other intangible assets have estimated lives of 20 years , 10 years and 6 years , respectively. The weighted average useful life for the group is 10 years . Portions of intangible assets are valued in foreign currencies; accordingly changes in indefinite life intangible assets at March 31, 2018 and 2017 were the result of foreign currency translation adjustments. The Company recorded amortization expense of $16,458 , $11,772 , and $12,112 in fiscal 2018 , fiscal 2017 and fiscal 2016 , respectively for intangible assets. Annual amortization of intangible assets for the next five years and thereafter will approximate the following: 2019 $ 20,857 2020 18,217 2021 9,703 2022 8,640 2023 8,635 Thereafter 41,100 Total $ 107,152 |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Mar. 31, 2018 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued current liabilities consisted of the following: March 31, March 31, Accrued employee compensation and related expenses $ 16,449 $ 8,364 Accrued interest 1,154 — Customer prepayment 519 168 Warranty reserve 300 300 Professional fees 1,854 1,631 Sales tax payable 1,546 1,573 Other 988 1,106 Total accrued current liabilities $ 22,810 $ 13,142 |
Short-Term Revolving Credit Fac
Short-Term Revolving Credit Facilities | 12 Months Ended |
Mar. 31, 2018 | |
Short-term Debt [Abstract] | |
Short-Term Revolving Credit Facilities | Short-Term Revolving Credit Facilities The Company’s subsidiary in the Netherlands has a revolving credit facility in the amount of Euro 4,000 (equivalent to $ 4,928 at March 31, 2018 ). The facility is collateralized by such subsidiary's receivables, inventory, equipment, furniture and real estate. No amounts were outstanding under this facility at March 31, 2018 and 2017 . The Company’s subsidiary in India has a revolving credit facility in the amount of 80,000 Rupees (equivalent to $ 1,230 at March 31, 2018 ). The facility is collateralized by such subsidiary's receivables, inventory, real estate, a letter of credit and cash. No amounts were outstanding under this facility at March 31, 2018 and 2017 . The Company’s subsidiary in Australia has a revolving credit facility in the amount of 230 Australian Dollars (equivalent to $ 177 at March 31, 2018 ). The facility is collateralized by such subsidiary's real estate. No amounts were outstanding under this facility at March 31, 2018 and 2017 . Under the Company’s senior secured revolving credit facility described below in Note 10, "Long-Term Debt," there were no outstanding borrowings at March 31, 2018 and 2017 . |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consisted of the following: March 31, March 31, Variable Rate Term Loan, due October 2024, net of deferred debt issuance costs and debt discounts of $7,967 as of March 31, 2018 $ 217,033 $ — Variable Rate Term Loan, due April 2019, net of deferred debt issuance costs of $524 as of March 31, 2017 — 80,476 Less current portion (2,500 ) (20,250 ) $ 214,533 $ 60,226 Senior secured credit facility On October 30, 2017, the Company, as a credit party and a guarantor, Thermon Holding Corp. (the “US Borrower”) and Thermon Canada Inc. (the “Canadian Borrower” and together with the US Borrower, the “Borrowers”), as borrowers, entered into a credit agreement with several banks and other financial institutions or entities from time to time (the “Lenders”) and JPMorgan Chase Bank, N.A. as administrative agent (the "Agent"), that provides for a $250,000 seven-year term loan B facility made available to the US Borrower and a $60,000 five-year senior secured revolving credit facility made available to the US Borrower and the Canadian Borrower, which we refer to collectively as our “credit facility”. The proceeds of the term loan B were used to (1) pay in full $70,875 principal and interest on a previously issued term loan due April 2019; (2) repay $6,000 in unpaid principal and interest on the US Borrower's revolving line of credit; (3) to fund approximately $201,900 CAD of the purchase price of the acquisition of THS and certain related real estate assets for approximately $164,900 ; and (4) pay certain transaction fees and expenses in connection with the THS transaction and the credit facility. Interest rates and fees. The US Borrower will have the option to pay interest on the term loan B at a base rate, plus an applicable margin, or at a rate based on LIBOR, (subject to a floor of 1.00% ), plus an applicable margin. The applicable margin for base rate loans is 275 basis points and the applicable margin for LIBOR loans is 375 basis points. The US Borrower may borrow revolving loans in US dollars and the Canadian Borrower may also borrow revolving loans in Canadian dollars. Borrowings under the revolving credit facility (a) made in US dollars will bear interest at a rate equal to a base rate, plus an applicable margin of 225 basis points or at a rate based on LIBOR, plus an applicable margin of 325 basis points and (b) made in Canadian dollars will bear interest at a rate equal to a Canadian base rate, plus an applicable margin of 225 basis points or at a rate based on CDOR, plus an applicable margin of 325 basis points, provided that, following the completion of the fiscal quarter ending March 31, 2018, the applicable margins in each case will be determined based on a leverage-based performance grid, as set forth in the credit agreement. In addition to paying interest on outstanding principal under the revolving credit facility, the US Borrower is required to pay a commitment fee in respect of unutilized revolving commitments of 0.50% per annum. Following the completion of the fiscal quarter ending March 31, 2018, the commitment fee will be determined based on a leverage-based performance grid. Maturity and repayment. The revolving credit facility terminates on October 28, 2022. The scheduled maturity date of the term loan facility is October 30, 2024. Commencing April 1, 2018, the term loan will amortize in equal quarterly installments of 0.25% of the $250,000 term loan, with the payment of the balance at maturity. The US Borrower will be able to voluntarily prepay the principal of the term loan without penalty or premium (subject to breakage fees) at any time in whole or in part; provided that for the first six months after the October 30, 2017 closing date, the US Borrower is required to pay a 1% premium for prepayments of the term loan with the proceeds of certain re‑pricing transactions. The US Borrower is required to repay the term loan with certain asset sale and insurance proceeds, certain debt proceeds and, commencing for the fiscal year ending March 31, 2019, 50% of excess cash flow (reducing to 25% if the Company’s leverage ratio is less than 4.0 to 1.0 but greater than or equal to 3.5 to 1.0 and 0% if the Company’s leverage ratio is less than 3.5 to 1.0 ). Accordion. The credit facility allows for incremental term loans and incremental revolving commitments in an amount not to exceed $30,000 and an unlimited additional amount that would not cause the consolidated secured leverage ratio to exceed 4.0 to 1.0 (or, if less, the maximum consolidated leverage ratio permitted by the revolving credit facility on such date). At March 31, 2018 , we had no outstanding borrowings under our revolving credit facility. The interest rate had the Company had outstanding borrowings on March 31, 2018 would be 5.41% . As of March 31, 2018 , we had $55,384 of available borrowing capacity under our revolving credit facility after taking into account the borrowing base and letters of credit outstanding. The variable rate term loan bears interest at the LIBOR rate plus an applicable margin dictated by our leverage ratio (as described above). Commencing April 1, 2018, the Company will be required to make quarterly principal payments of the term loan of $625 through July 31, 2024. The remaining balance will be due at maturity of the term loan facility on October 30, 2024. In the fourth quarter of fiscal 2018, the Company made an unscheduled repayment of principal on the term loan facility in the amount of $25,000 . From time to time, we may choose to make unscheduled principal repayments on the term loan credit facility based on available cash. Guarantees; security. The term loan is guaranteed by the Company and all of the Company's current and future wholly-owned domestic material subsidiaries (the “US Subsidiary Guarantors”), subject to certain exceptions. Obligations of the US Borrower under the revolving credit facility are guaranteed by the Company and the US Subsidiary Guarantors. The obligations of the Canadian Borrower under the revolving credit facility are guaranteed by the Company, the US Borrower, the US Subsidiary Guarantors and each of the wholly owned Canadian material subsidiaries of the Canadian Borrower, subject to certain exceptions. The term loan and the obligations of the US Borrower under the revolving credit facility are secured by a first lien on all of the Company’s assets and the assets of the US Subsidiary Guarantors, including 100% of the capital stock of the US Subsidiary Guarantors and 65% of the capital stock of the first tier material foreign subsidiaries of the Company, the US Borrower and the US Subsidiary Guarantors, subject to certain exceptions. The obligations of the Canadian Borrower under the revolving credit facility are secured by a first lien on all of the Company's assets, the US Subsidiary Guarantors' assets, the Canadian Borrower’s assets and the assets of the material Canadian subsidiaries of the Canadian Borrower, including 100% of the capital stock of the Canadian Borrower’s material Canadian subsidiaries. Financial covenants. The term loan is not subject to any financial covenants. The revolving credit facility requires the Company, on a consolidated basis, to maintain certain financial covenant ratios. The Company must maintain a consolidated leverage ratio on the last day of the following periods: 5.5 : 1.0 for December 31, 2017 through September 30, 2018; 5.0 : 1.0 for December 31, 2018 through September 30, 2019; 4.5 : 1.0 for December 31, 2019 through September 30, 2020; and 3.75 : 1.0 for December 31, 2020 and each fiscal quarter thereafter. In addition, on the last day of any period of four fiscal quarters, the Company must maintain a consolidated fixed charge coverage ratio of not less than 1.25 : 1.0 . As of March 31, 2018 , we were in compliance with all financial covenants of the credit facility. Restrictive covenants. The credit agreement governing our facility contains various restrictive covenants that, among other things, restrict or limit our ability to (subject to certain negotiated exceptions): incur additional indebtedness; grant liens; make fundamental changes; sell assets; make restricted payments; enter into sales and leasebacks; make investments; prepay certain indebtedness; enter into transactions with affiliates; and enter into restrictive agreements. Maturities of long-term debt principal payments are as follows for the fiscal years ended March 31: 2019 $ 2,500 2020 2,500 2021 2,500 2022 2,500 2023 2,500 2024 2,500 2025 210,000 Total $ 225,000 |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Related-Party Transactions In connection with the Sumac transaction, one of the former principals retained 25% of the ownership of the Sumac business unit. This individual is employed by the Company and serves as general manager of the Sumac business unit. During fiscal 2017, this individual, together with the two other former principals of Sumac, who are not employed by the Company were paid $5,805 in the aggregate in full satisfaction of the Company's obligations under the $5,905 non-interest bearing performance-based note issued in connection with the Sumac transaction. Since the acquisition by our former private equity sponsors that was completed on April 30, 2010, we have paid certain amounts to the Predecessor owners in settlement of CHS Transactions and have also received certain amounts that were identified as potential indemnity items at the time of the transaction. Certain members of our current management continue to be investors in the Predecessor ownership fund. Therefore, these payments made and received are considered to be related party transactions. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Mar. 31, 2018 | |
Employee Benefits [Abstract] | |
Employee Benefits | Employee Benefits The Company has defined contribution plans covering substantially all domestic employees and certain foreign subsidiary employees who meet certain service and eligibility requirements. Participant benefits are 100% vested upon participation. The Company matches employee contributions, limited to 50% of the first 6% of each employee's salary contributed. The Company's matching contributions to defined contribution plans on a consolidated basis were approximately $2,119 , $1,634 , and $1,684 in fiscal 2018 , fiscal 2017 , and fiscal 2016 , respectively. The Company has an incentive compensation program to provide employees with incentive pay based on the Company's ability to achieve certain profitability objectives. The Company recorded approximately $6,656 , $ 2,324 , and $2,133 for incentive compensation earned in fiscal 2018 , fiscal 2017 , and fiscal 2016 , respectively. Thermon Europe B.V., our European subsidiary, maintains defined benefit pension plans for qualifying employees located in The Netherlands. The Company is currently under contract with an insurance company to fund a defined benefit (average pay) pension plan to provide for estimated post-retirement pension income. During the twelve months ended March 31, 2018, 2017 and 2016, the Company made cash payments of $ 417 , $ 289 and $295 , respectively. Payments were made to the insurance company to fund the pension contract. As of March 31, 2018 and 2017, the plan had an estimated net benefit obligation of $2,185 and $1,611 , respectively which is included in non-current liabilities. The obligation is based on an actuarial calculation of the pension obligation for the participants. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies At March 31, 2018 , the Company had in place letter of credit guarantees and performance bonds securing performance obligations of the Company. These arrangements totaled approximately $20,392 . Of this amount, $2,448 is secured by cash deposits at the Company's financial institutions and an additional $4,616 represents a reduction of the available amount of the Company's short term and long term revolving lines of credit. Included in prepaid expenses and other current assets at March 31, 2018 and 2017 , was approximately $2,448 and $1,450 , respectively, of cash deposits pledged as collateral on performance bonds and letters of credit. The Company leases various property and equipment under operating leases. Lease expense was approximately $3,738 , $3,441 , and $3,200 in fiscal 2018 , fiscal 2017 and fiscal 2016 , respectively. Future minimum annual lease payments under these leases are as follows for the fiscal years ended March 31: 2019 $ 3,152 2020 2,434 2021 1,788 2022 1,531 2023 1,187 Thereafter 1,854 $ 11,946 The Company has entered into information technology service agreements with several vendors. The service fees expense amounted to $3,439 , $3,095 , and $1,865 in fiscal 2018 , fiscal 2017 and fiscal 2016 , respectively. The future annual service fees under the service agreements are as follows for the fiscal years ended March 31: 2019 $ 902 2020 59 2021 28 2022 21 $ 1,010 We are involved in various legal and administrative proceedings that arise from time to time in the ordinary course of doing business. Some of these proceedings may result in fines, penalties or judgments being assessed against us, which may adversely affect our financial results. In addition, from time to time, we are involved in various disputes, which may or may not be settled prior to legal proceedings being instituted and which may result in losses in excess of accrued liabilities, if any, relating to such unresolved disputes. As of March 31, 2018 , management believes that adequate reserves have been established for any probable and reasonably estimable losses. Expenses related to litigation reduce operating income. We do not believe that the outcome of any of these proceedings or disputes would have a significant adverse effect on our financial position, long-term results of operations, or cash flows. It is possible, however, that charges related to these matters could be significant to our results of operations or cash flows in any one accounting period. The Company has no outstanding legal matters outside of matters arising in the ordinary course of business that would materially impact our results of operations or our financial position. We can give no assurances we will prevail in any of these matters. Changes in the Company's warranty reserve are as follows Balance at March 31, 2015 $ 429 Reserve for warranties issued during the period 490 Settlements made during the period (459 ) Balance at March 31, 2016 $ 460 Reserve for warranties issued during the period 143 Settlements made during the period (303 ) Balance at March 31, 2017 $ 300 Reserve for warranties issued during the period 281 Settlements made during the period (281 ) Balance at March 31, 2018 $ 300 |
Stock-Based Compensation Expens
Stock-Based Compensation Expense | 12 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation Expense | Stock-Based Compensation Expense Since the completion of the CHS Transactions on April 30, 2010, the Board of Directors has adopted and the shareholders have approved two stock option award plans. The 2010 Thermon Group Holdings, Inc. Restricted Stock and Stock Option Plans ("2010 Plan") was approved on July 28, 2010. The plan authorized the issuance of 2,767,171 stock options or restricted shares (on a post stock split basis). On April 8, 2011, the Board of Directors approved the Thermon Group Holdings, Inc. 2011 Long-Term Incentive Plan ("2011 LTIP"). The 2011 LTIP made available 2,893,341 shares of the Company's common stock that may be awarded to employees, directors or non-employee contractor's compensation in the form of stock options or restricted stock awards. Collectively, the 2010 Plan and the 2011 LTIP are referred to as the "Stock Plans." The Company does not hold any shares of its own stock as treasury shares. Accordingly, the vesting of restricted stock units and performance stock units and the exercise of stock options result in the issuance of additional new shares of the Company's stock. Unvested options outstanding are scheduled to vest over five years with 20% vesting on the anniversary date of the grant each year. Stock options must be exercised within 10 years from date of grant. Stock options were issued with an exercise price which was equal to the market price of our common stock at the grant date. We account for forfeitures as they incur, rather than estimate expected forfeitures. Stock Options A summary of stock option activity under our Stock Plans for fiscal 2018 , fiscal 2017 and fiscal 2016 are as follows: Options Outstanding Number of Shares Weighted Average Exercise Price Balance at March 31, 2015 465,042 $ 8.12 Exercised (29,056 ) 8.25 Forfeited (2,260 ) 17.10 Balance at March 31, 2016 433,726 $ 8.07 Granted 28,499 19.64 Exercised (47,484 ) 6.77 Forfeited (2,802 ) 19.58 Balance at March 31, 2017 411,939 $ 8.94 Exercised (42,956 ) 7.00 Forfeited (1,412 ) 19.83 Balance at March 31, 2018 367,571 $ 9.12 For fiscal 2018 , fiscal 2017 and fiscal 2016 the intrinsic value of stock option exercises was $648 , $627 , and $384 , respectively. Unvested Options Number of Shares Weighted Average Grant Date Fair Value Balance at March 31, 2015 $ 73,449 $ 7.19 Vested (30,379 ) 6.93 Forfeited (2,260 ) 7.53 Balance at March 31, 2016 $ 40,810 $ 7.39 Granted 28,499 19.64 Vested (28,678 ) 6.93 Forfeited (2,802 ) 7.53 Balance at March 31, 2017 $ 37,829 $ 8.86 Vested (17,417 ) 6.93 Forfeited (1,412 ) 19.83 Balance at March 31, 2018 $ 19,000 $ 5.89 For fiscal 2018 , fiscal 2017 and fiscal 2016 , we recorded stock based compensation of $3,519 , $3,402 , and $3,749 , respectively. Total unrecognized expense related to non-vested stock option awards was approximately $117 as of March 31, 2018 . We anticipate this expense will be recognized over a weighted average period of approximately 1.76 years. The following table summarizes information about stock options outstanding as of March 31, 2018 : Options Outstanding Options Vested and Exercisable Exercise Price Number Outstanding Weighted Average Contractual Life (Years) Weighted Average Exercise Price Aggregate Intrinsic Value at March 31, 2018 Number Vested and Exercisable Weighted Average Contractual Life (Years) Weighted Average Exercise Price Aggregate Intrinsic Value at March 31, 2017 $5.20 238,863 2.55 $ 5.20 $ 4,110,832 238,863 2.55 $ 5.20 $ 4,110,832 $9.82 13,339 2.91 9.82 167,938 13,339 2.91 9.82 167,938 $12.00 47,250 3.09 12.00 491,248 47,250 3.09 12.00 491,248 $19.64 28,499 8.76 19.64 78,942 9,499 8.76 19.64 26,312 $21.52 39,620 4.34 21.52 35,532 39,620 4.34 21.52 35,532 $5.20-$21.52 367,571 3.31 $ 9.12 $ 4,884,492 348,571 3.31 $ 8.55 $ 4,831,862 The aggregate intrinsic value in the preceding table represents the total intrinsic value based on our closing stock price of $22.41 a s of March 31, 2018 , which would have been received by the option holders had all option holders exercised as of that date. Stock options are valued by using a Black-Scholes-Merton option pricing model. We calculate the value of our stock option awards when they are granted. Accordingly, we update our valuation assumptions for volatility and the risk free interest rate each quarter that option grants are awarded. Annually, we prepare an analysis of the historical activity within our option plans as well as the demographic characteristics of the grantees of options within our stock option plan to determine the estimated life of the grants and possible ranges of estimated forfeiture. The expected life was determined using the simplified method for estimating expected option life, which qualify as "plain-vanilla" options. Due to the fact that the common stock underlying the options was not publicly traded for an equivalent period of the expected term of the options, the expected volatility was based on a comparable group of companies in conjunction with the historical volatility from traded shares of our stock. The risk-free interest rate is based on the rate of a zero-coupon U.S. Treasury instrument with a remaining term approximately equal to the expected term. We do not expect to pay dividends in the near term and therefore do not incorporate the dividend yield as part of our assumptions. Restricted Stock Awards and Units Restricted stock awards have been issued to members of our board of directors and restricted stock units have been issued to certain employees. For restricted stock awards, the actual common shares have been issued with voting rights and are included as part of our total common shares outstanding. The common shares may not be sold or exchanged until the vesting period is completed. For restricted stock units, no common shares are issued until the vesting period is completed. For restricted stock units, the Company allows its employees to withhold a portion of their units upon the vesting dates in order to satisfy their tax obligation. For both restricted stock awards and units, fair value is determined by the market value of our common stock on the date of the grant. During fiscal 2015, we established a plan to issue our directors awards of fully vested common stock in lieu of restricted stock awards. During fiscal 2018 and fiscal 2017 , we issued 20,216 and 19,824 fully vested common shares which had a total fair value of $ 411 and $385 based on the closing price of our common stock on the date of issuance, respectively. As of March 31, 2018 , there were no outstanding restricted stock awards. The following table summarizes the activity with regard to unvested restricted stock units issued to employees during fiscal 2018 , fiscal 2017 , and fiscal 2016 . Restricted Stock Units Number of Shares Weighted Average Grant Fair Value Balance of unvested units at March 31, 2015 198,822 $ 22.38 Granted 98,009 24.08 Released (69,704 ) 21.97 Forfeited (34,906 ) 22.53 Balance of unvested units at March 31, 2016 192,221 $ 23.36 Granted 135,855 18.65 Released (111,611 ) 22.74 Forfeited (8,319 ) 21.25 Balance of unvested units at March 31, 2017 208,146 $ 20.64 Granted 119,302 19.16 Released (88,084 ) 21.51 Forfeited (10,252 ) 20.05 Balance of unvested units at March 31, 2018 229,112 $ 19.55 Based on our closing stock price of $22.41 , the aggregate intrinsic value of the unvested restricted stock units at March 31, 2018 was $5,134 . Total unrecognized expense related to unvested restricted stock awards was approximately $2,841 as of March 31, 2018 . We anticipate this expense to be recognized over a weighted average period of approximately 1.65 years . Performance Stock Units. During fiscal 2018 , fiscal 2017 and fiscal 2016 , performance stock unit awards were issued to our executive officers and other members of management and had total estimated grant date fair values of $1,420 , $881 and $1,113 , respectively. For the fiscal 2018 awards, the performance indicator for these awards is a combination of stock price and the Company's Adjusted EBIDTA over a three year period. The target number of shares is 15,438 and 58,246 for the stock price awards and Adjusted EBITDA awards, respectively. The stock price indicator measures our stock price compared to a pre-determined peer group of companies with similar business characteristics as ours. Since the stock price indicator is market based, we prepared a Monte Carlo valuation model to calculate the probable outcome of the market for our stock to arrive at the fair value. The fair value of the market based units will be expensed over three years, whether or not the market condition is met. The Adjusted EBITDA indicator establishes target for the combined total of Adjusted EBITDA for the three years ending March 31, 2020. Since this is a performance based stock award, the Company will make estimates of periodic expense until the Adjusted EBITDA target is known and the expense for actual number of shares earned is determinable. During fiscal 2018, there were no performance stock unit forfeitures. During fiscal 2017, performance stock awards that were scheduled to vest, did not meet the minimum market based indicator. Accordingly 50,799 previously outstanding performance stock units were forfeited. For performance stock units issued in fiscal 2018 and fiscal 2017, the performance period will end on the third fiscal year end subsequent to the award being granted. It will then be determined how many shares of stock will be issued. In each year of the performance period, the possible number of shares will range from zero percent to two hundred percent of the target shares. The following table summarized the target number of performance stock units outstanding and the minimum and maximum number of shares that can be earned as of March 31, 2018. Fiscal Year Granted Target Minimum Maximum Fiscal 2017 47,486 — 94,972 Fiscal 2018 73,684 — 147,368 The following table summarizes the number of awards earned and released during each fiscal year based on the results achieved for respective performance period: Fiscal Year Earned Number of Shares Earned Number of Shares Withheld for Tax Obligation Number of Shares Released Fiscal 2016 31,658 8,669 22,989 Fiscal 2017 — — — Fiscal 2018 — — — At March 31, 2018 , there was $1,231 in stock compensation that remained to be expensed, which will be recognized over a period of 2.22 years . |
Other Expense
Other Expense | 12 Months Ended |
Mar. 31, 2018 | |
Other Income and Expenses [Abstract] | |
Other Expense | Other Expense Other expense consisted of the following: Year Ended March 31, 2018 Year Ended March 31, 2017 Year Ended March 31, 2016 Foreign currency transaction loss $ (5,629 ) $ (176 ) $ (139 ) Loss on foreign exchange forwards (96 ) (453 ) (411 ) Other 130 219 (126 ) $ (5,595 ) $ (410 ) $ (676 ) |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income taxes included in the consolidated income statement consisted of the following: Year Ended March 31, 2018 Year Ended March 31, 2017 Year Ended March 31, 2016 Current provision: Federal provision $ 3,937 $ 1,588 $ 4,185 Foreign provision 12,768 6,341 8,503 State provision 301 155 311 Deferred provision: Federal deferred benefit (8,506 ) (1,907 ) (1,964 ) Foreign deferred benefit (3,178 ) (2,025 ) (2,263 ) State deferred benefit (152 ) (54 ) (56 ) Total provision for income taxes $ 5,170 $ 4,098 $ 8,716 Deferred income tax assets and liabilities were as follows: March 31, 2018 2017 Deferred tax assets: Accrued liabilities and reserves $ 1,987 $ 1,617 Stock option compensation 821 932 Foreign deferred benefits 3,575 2,340 Net operating loss carry-forward 1,688 1,250 Inventories 371 440 Capitalized transaction costs 207 390 Interest rate swap included in Other Comprehensive Loss — 18 Foreign tax credit carry forward 104 65 Valuation allowance (878 ) (659 ) Total deferred tax assets $ 7,875 $ 6,393 Deferred tax liabilities: Intangible assets $ (9,498 ) $ (17,952 ) Intangible assets - foreign (25,674 ) (7,452 ) Property, plant and equipment (2,522 ) (3,637 ) Prepaid expenses (104 ) (161 ) Unrealized loss on hedge (45 ) (19 ) Undistributed foreign earnings (859 ) (10 ) Total deferred tax liabilities (38,702 ) (29,231 ) Net deferred tax asset (liability) $ (30,827 ) $ (22,838 ) The U.S. and non-U.S. components of income (loss) from continuing operations before income taxes were as follows: Year Ended March 31, 2018 Year Ended March 31, 2017 Year Ended March 31, 2016 U.S. $ (13,568 ) $ (83 ) $ 13,043 Non-U.S. 31,957 19,165 19,323 Income from continuing operations $ 18,389 $ 19,082 $ 32,366 The difference between the provision for income taxes and the amount that would result from applying the U.S. statutory tax rate to income before provision for income taxes is as follows: Year Ended March 31, 2018 Year Ended March 31, 2017 Year Ended March 31, 2016 Notional U.S. federal income tax expense at statutory rate $ 5,792 $ 6,679 $ 11,328 Adjustments to reconcile to the income tax provision: Transition tax for United States tax reform 5,125 — — Impact on deferred tax liability for statutory rate change (5,849 ) — 455 U.S. state income tax provision, net 111 45 150 Undistributed foreign earnings 1,786 — — Rate difference-international subsidiaries (1,769 ) (2,622 ) (1,727 ) Charges/(benefits) related to uncertain tax positions (533 ) (128 ) (1,227 ) Non-deductible charges 758 296 51 Foreign purchase price adjustment — (379 ) — Change in valuation allowance 219 490 — Other, net (470 ) (283 ) (314 ) Provision for income taxes $ 5,170 $ 4,098 $ 8,716 On December 22, 2017, the United States enacted significant changes to U.S. tax law following the passage and signing of H.R.1, “An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018” (the “Tax Act”) (previously known as “The Tax Cuts and Jobs Act”). The Tax Act included significant changes to existing tax law, including a permanent reduction to the U.S. federal corporate income tax rate from 35% to 21%, a one-time repatriation tax on deferred foreign income (“Transition Tax”), deductions, credits and business-related exclusions. On December 22, 2017, the Securities and Exchange Commission ("SEC") issued Staff Accounting Bulletin 118 (“SAB 118”). SAB 118 expresses views of the SEC regarding ASC Topic 740, Income Taxes (“ASC 740”) in the reporting period that includes the enactment date of the Tax Act. The SEC staff issuing SAB 118 (the “Staff”) recognized that a registrant’s review of certain income tax effects of the Tax Act may be incomplete at the time financial statements are issued for the reporting period that includes the enactment date, including interim periods therein. The Staff’s view of the enactment of the Tax Act has been developed considering the principles of ASC Topic 805, Business Combinations , which addresses the accounting for certain items in a business combination for which the accounting is incomplete upon issuance of the financial statements that include the reporting period in which the business combination occurs. Specifically, the Staff provides that the accounting guidance in ASC Topic 805 may be analogized to the accounting for impacts of the Tax Act. If a company does not have the necessary information available, prepared or analyzed for certain income tax effects of the Tax Act, SAB 118 allows a company to report provisional numbers and adjust those amounts during the measurement period not to extend beyond one year. The Company has recorded all known and estimable impacts of the Tax Act that are effective for fiscal year 2018. Future adjustments to the provisional numbers will be recorded as discrete adjustments to income tax expense in the period in which those adjustments become estimable and/or are finalized. Accordingly, our income tax provision as of March 31, 2018 reflects (i) the current fiscal year impacts of the Tax Act on the estimated annual effective tax rate and (ii) the following discrete items resulting directly from the enactment of the Tax Act based on the information available, prepared, or analyzed (including computations) in reasonable detail. Year Ended March 31, Transition Tax (provisional) $ 5,126 Net impact on U.S. deferred tax assets and liabilities (provisional) (6,030 ) Net changes in deferred tax liability associated with anticipated repatriation taxes (provisional) 1,704 Net discrete impacts of the enactment of the Tax Act $ 800 Consistent with provisions allowed under the Tax Act, the $5,126 estimated Transition Tax liability will be paid over an eight year period beginning in fiscal year 2019. The non-current portion of the estimated Transition Tax liability has been included in “Other liabilities- long term” in the Condensed Consolidated Balance Sheets. The net benefit of $6,030 related to deferred tax assets and liabilities is primarily associated with a reduction in deferred liabilities for unamortized intangible assets. Since these intangible assets are not tax deductible, the reduction of the liability is non-cash and will not reduce future tax payments. Given the Tax Act’s significant changes and potential opportunities to repatriate cash tax free, we have reevaluated our current permanent reinvestment position. Accordingly, we will no longer assert a permanent reinvestment position in most of our foreign subsidiaries. We expect to repatriate certain earnings which will be subject to withholding taxes. These additional withholding taxes are being recorded as an additional deferred tax liability associated with the basis difference in such jurisdictions. The uncertainty related to the taxation of such withholding taxes on distributions under the Tax Act and finalization of the cash repatriation plan makes the deferred tax liability a provisional amount. We continue to review the anticipated impacts of the global intangible low taxed income (“GILTI”) and base erosion anti-abuse tax (“BEAT”), which are not effective until fiscal year 2019. We have not recorded any impact associated with either GILTI or BEAT in the tax rate for fiscal year 2018. Within the calculation of our annual effective tax rate we have used assumptions and estimates that may change as a result of future guidance, interpretation, and rule-making from the Internal Revenue Service, the SEC, and the Financial Accounting Standards Board and/or various other taxing jurisdictions. For example, we anticipate that the state jurisdictions will continue to determine and announce their conformity to the Tax Act which could have an impact on the annual effective tax rate. As of March 31, 2018 , the Company had foreign tax net operating loss carry-forwards ("NOLs") of $5,731 . Of this amount, $4,024 may be carried forward indefinitely. As of March 31, 2018 , the tax years 2014 through 2017 remain open to examination by the major taxing jurisdictions to which we are subject. During the fiscal year ended March 31, 2018, the Company released its remaining reserve for uncertain tax positions as the tax periods to which they relate had closed. Activity within our reserve for uncertain tax positions as well as the penalties and interest are recorded as a component of the Company's income tax expense. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Year Ended March 31, 2018 Year Ended March 31, 2017 Beginning balance $ 533 $ 661 Reductions for tax positions of prior years (533 ) (176 ) Interest and penalties on prior reserves — 48 Reserve for uncertain income taxes $ — $ 533 |
Segment Information
Segment Information | 12 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information In connection with acquisitions made since fiscal 2015, the Company reviewed its determination of segments. Previously, we aggregated geographic markets into one reportable segment. Based on our review, we revised our segment reporting to four reportable segments based on four geographic countries or regions: United States, Canada, Europe and Asia. Within our four reportable segments, our primary products and services are focused on thermal solutions primarily related to the electrical heat tracing industry. Each of our reportable segments serves a similar class of customers including large EPC companies, international and regional oil and gas companies, commercial sub-contractors, electrical component distributors and direct sales to existing plant or industrial applications. Profitability within our segments is measured by operating income. Profitability can vary in each of our reportable segments based on the competitive environment within the region, the level of corporate overhead, such as the salaries of our senior executives, and the level of research and development and marketing activities in the region, as well as the mix of products and services. Since March 2015, we have acquired Unitemp, IPI, Sumac and THS. Both Unitemp and IPI offer thermal solutions and have been included in our Europe and United States reportable segments, respectively. Sumac provides temporary power products that differ from our core thermal solutions business. As our operating results from Sumac comprise less than 10% of our total sales and operating income, Sumac has been aggregated in our Canada segment. THS, recently acquired in October 2017, has similar economic characteristics as the core Thermon process heating operations. Management intends to integrate THS into the existing Thermon operations as soon as practicable. Therefore, THS has been aggregated in our Canada and United States segments. For purposes of this note, revenue is attributed to individual countries on the basis of the physical location and jurisdiction of organization of the subsidiary that invoices the material and services. Total sales to external customers, inter-segment sales, depreciation expense, amortization expense, income from operations and total assets classified by major geographic area in which the Company operates are as follows: Year Ended March 31, 2018 Year Ended March 31, 2017 Year Ended March 31, 2016 Sales to External Customers: United States $ 114,548 $ 119,791 $ 126,033 Canada 94,427 41,721 56,925 Europe 68,352 71,133 65,370 Asia 31,282 31,485 33,600 $ 308,609 $ 264,130 $ 281,928 Inter-segment Sales: United States $ 50,155 $ 45,966 $ 50,807 Canada 7,294 3,610 3,886 Europe 1,614 1,580 2,367 Asia 1,668 1,407 435 $ 60,731 $ 52,563 $ 57,495 Depreciation Expense: United States $ 4,326 $ 3,632 $ 3,117 Canada 3,019 1,933 1,071 Europe 476 301 296 Asia 141 194 171 $ 7,962 $ 6,060 $ 4,655 Amortization of Intangibles: United States $ 6,018 $ 5,860 $ 6,080 Canada 7,979 3,538 3,543 Europe 1,398 1,310 1,426 Asia 1,063 1,064 1,063 $ 16,458 $ 11,772 $ 12,112 Income from Operations: United States $ 484 $ 5,359 $ 20,607 Canada (a) 26,198 8,040 7,302 Europe (b) 6,842 9,095 8,586 Asia 4,111 4,512 5,541 Unallocated: Public company costs (1,378 ) (1,160 ) (1,526 ) Stock compensation (3,519 ) (3,402 ) (3,749 ) $ 32,738 $ 22,444 $ 36,761 March 31, 2018 March 31, 2017 Fixed Assets: United States $ 37,112 $ 34,563 Canada 33,076 4,674 Europe 3,567 3,532 Asia 730 497 $ 74,485 $ 43,266 Total Assets: United States $ 213,099 $ 186,300 Canada 317,635 136,688 Europe 89,379 80,589 Asia 42,364 50,503 $ 662,477 $ 454,080 (a) During the year ended March 31, 2016, the Canadian segment's operating income was negatively impacted by $5,706 due to acquisition related contingent consideration accounted for as compensation. As part of the Sumac transaction, we issued the sellers a $5,905 non-interest bearing note that matured on April 1, 2016. The terms of the performance-based note assume the continued employment of Sumac's principals, and as a result, the performance note payment is accounted for as compensation expense. The performance note was settled during the first quarter of fiscal 2017. (b) During the year ended March 31, 2016, the European segment's operating income was negatively impacted by a $1,713 impairment charge to Unitemp's goodwill and other intangible assets. At March 31, 2018 and 2017 , non-current deferred tax assets of $3,490 and $4,053 respectively, were applicable to the United States. |
Quarterly Results (Unaudited)
Quarterly Results (Unaudited) | 12 Months Ended |
Mar. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results (Unaudited) | Quarterly Results (Unaudited) The following quarterly results have been derived from unaudited consolidated financial statements that, in the opinion of management, reflect all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of such quarterly information. The operating results for any quarter are not necessarily indicative of the results to be expected for any future period. The unaudited quarterly financial data for each of the eight quarters in the two years ended March 31, 2018 are as follows: Three Months Ended March 31, 2018 December 31, 2017 September 30, 2017 June 30, 2017 Sales $ 102,582 $ 92,660 $ 61,631 $ 51,736 Gross Profit 46,823 42,214 30,960 23,814 Income from operations 13,553 10,210 7,417 1,558 Net income available to Thermon Group Holdings, Inc. $ 6,057 $ 599 $ 4,778 $ 479 Net income per common share Basic $ 0.19 $ 0.02 $ 0.15 $ 0.01 Diluted 0.18 0.02 0.15 0.01 Three Months Ended March 31, 2017 December 31, 2016 September 30, 2016 June 30, 2016 Sales $ 67,582 $ 64,340 $ 68,812 $ 63,396 Gross Profit 28,274 28,619 28,924 26,114 Income from operations 5,280 7,299 5,675 4,190 Net income available to Thermon Group Holdings, Inc. $ 3,251 $ 5,358 $ 3,506 $ 2,526 Net income per common share Basic $ 0.15 $ 0.17 $ 0.11 $ 0.08 Diluted 0.15 0.16 0.11 0.08 The basic and diluted income per common share for each respective three month period is calculated independently. Therefore, the sum of the periods does not necessarily total the full year net income or loss per common share. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On April 2, 2018, the minority shareholder of our Sumac business unit provided the Company notice that he was exercising his option to sell one-half ( 12.5% ) of his remaining equity interest to the Company. The terms of the April 2015 Sumac purchase agreement prescribed a valuation formula for such a sale based on Sumac's financial results for the twelve months ending March 31, 2018. We estimate that Thermon will pay $6,000 to purchase the 12.5% Sumac equity interest which is expected to be completed in June 2018. |
Organization and Summary of S26
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Consolidation | Basis of Consolidation The consolidated financial statements include the accounts of the Company, its subsidiaries and entities in which the Company has a controlling financial interest. The ownership of noncontrolling investors is recorded as noncontrolling interests. All significant inter-company balances and transactions have been eliminated in consolidation. |
Segment Reporting | Segment Reporting In connection with acquisitions made since fiscal 2015, the Company reviewed its determination of segments. Previously, we aggregated geographic markets into one reportable segment. Based on our review, we revised our segment reporting to four reportable segments based on four geographic countries or regions: United States, Canada, Europe and Asia. Within our four reportable segments, our primary products and services are focused on thermal solutions primarily related to the electrical heat tracing industry. Each of our reportable segments serves a similar class of customers including large EPC companies, international and regional oil and gas companies, commercial sub-contractors, electrical component distributors and direct sales to existing plant or industrial applications. Profitability within our segments is measured by operating income. Profitability can vary in each of our reportable segments based on the competitive environment within the region, the level of corporate overhead, such as the salaries of our senior executives, and the level of research and development and marketing activities in the region, as well as the mix of products and services. Since March 2015, we have acquired Unitemp, IPI, Sumac and Thermon Heating Systems ("THS"). Both Unitemp and IPI offer thermal solutions and have been included in our Europe and United States reportable segments, respectively. Sumac provides temporary power products that differ from our core thermal solutions business. As operating results from Sumac comprise less than 10% of our total sales and operating income, Sumac has been aggregated in our Canada segment. THS, recently acquired in October 2017, has similar economic characteristics as the core Thermon process heating operations. Management intends to integrate THS into the existing Thermon operations as soon as practicable. Therefore, THS has been aggregated in our Canada and United States segments. See Note 17, "Segment Information" for financial data relating to our four reportable geographic segments. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results inevitably will differ from those estimates, and such differences may be material to the financial statements. |
Cash Equivalents | Cash Equivalents Cash and cash equivalents consist of cash in bank and money market funds. All highly liquid investments purchased with original maturities of three months or less are considered to be cash equivalents. |
Receivables | Receivables The Company's receivables are recorded at cost when earned and represent claims against third parties that will be settled in cash. The carrying value of the Company's receivables, net of allowance for doubtful accounts, represents their estimated net realizable value. If events or changes in circumstances indicate specific receivable balances may be impaired, further consideration is given to the Company's ability to collect those balances and the allowance is adjusted accordingly. The Company has established an allowance for doubtful accounts based upon an analysis of aged receivables. Past-due receivable balances are written-off when the Company's internal collection efforts have been unsuccessful in collecting the amounts due. The Company's primary base of customers operates in the oil, chemical processing and power generation industries. Although the Company has a concentration of credit risk within these industries, the Company has not experienced significant collection losses on sales to these customers. The Company's foreign receivables are not concentrated within any one geographic segment nor are they subject to any current economic conditions that would subject the Company to unusual risk. The Company does not generally require collateral or other security from customers. The Company performs credit evaluations of new customers and sometimes requires deposits, prepayments or use of trade letters of credit to mitigate our credit risk. |
Inventories | Inventories Inventories, principally raw materials and finished goods, are valued at the lower of cost (weighted average cost) or market. We write down our inventory for estimated excess or obsolete inventory equal to the difference between the cost of inventory and estimated fair market value based on assumptions of future demand and market conditions. Fair market value is determined quarterly by comparing inventory levels of individual products and components to historical usage rates, current backlog and estimated future sales and by analyzing the age and potential applications of inventory, in order to identify specific products and components of inventory that are judged unlikely to be sold. Our finished goods inventory consists primarily of completed electrical cable that has been manufactured for various heat tracing solutions, as well as various types of immersion, circulation and space heaters for THS. Most of our manufactured product offerings are built to industry standard specifications that have general purpose applications and therefore are sold to a variety of customers in various industries. Some of our products, such as custom orders and ancillary components outsourced from third-party manufacturers, have more specific applications and therefore may be at a higher risk of inventory obsolescence. Inventory is written-off in the period in which the disposal occurs. Actual future write-offs of inventory may differ from estimates and calculations used to determine valuation allowances due to changes in customer demand, customer negotiations, product application, technology shifts and other factors. Historically, inventory obsolescence and potential excess cost adjustments have been within our expectations, and management does not believe that there is a reasonable likelihood that there will be a material change in future estimates or assumptions used to calculate the inventory valuation reserves. |
Revenue Recognition | Revenue Recognition Revenues from sales of products are recognized when persuasive evidence of an agreement exists, delivery of the product has occurred, the fee is fixed or determinable, and collectability is probable. On average, less than 20% of our annual revenues are derived from the installation of heat tracing solutions for which we apply construction-type accounting. These construction-related contracts are awarded on a competitive bid and negotiated basis. We offer our customers a range of contracting options, including cost-reimbursable, fixed-price and hybrid, which has both cost-reimbursable and fixed-price characteristics. Most of our construction contract revenue is recognized using either the percentage-of-completion method, based on the percentage that actual costs-to-date bear to total estimated costs to complete each contract or as it relates to cost-reimbursable projects, revenue is recognized as work is performed. We follow the guidance of FASB ASC Revenue Recognition Topic 605-35 for accounting policies relating to our use of the percentage-of-completion method, estimating costs and revenue recognition, including the recognition of profit incentives, unapproved change orders and claims and combining and segmenting contracts. We utilize the cost-to-cost approach to measure the extent of progress toward completion, as we believe this method is less subjective than relying on assessments of physical progress. Under the cost-to-cost approach, the use of total estimated cost to complete each contract is a significant variable in the process of determining recognized revenue and is a significant factor in the accounting for contracts. Significant estimates that impact the cost to complete each contract are costs of engineering, materials, components, equipment, labor and subcontracts; labor productivity; schedule durations, including subcontract and supplier progress; liquidated damages; contract disputes, including claims; achievement of contractual performance requirements; and contingency, among others. The cumulative impact of revisions in total cost estimates as contracts progress is reflected in the period in which these changes become known, including the recognition of any losses expected to be incurred on contracts in progress. Due to the various estimates inherent in our construction contract accounting, actual results could differ from those estimates. Our historical construction contract cost estimates have generally been accurate, and management does not believe that there is a reasonable likelihood that there will be a material change in future estimates or the methodology used to calculate these estimates. Sales which are not accounted for under ASC 605-35 may have multiple elements, including heat tracing product, engineering and "field" services such as inspection, repair and/or training. We assess such revenue arrangements to determine the appropriate units of accounting. Each deliverable provided under multiple-element arrangements is considered a separate unit of accounting. Revenues associated with the sale of a product are recognized upon delivery, while the revenue for engineering and field services are recognized as services are rendered, limited to the amount of consideration which is not contingent upon the successful provision of future products or services under the arrangement. Amounts assigned to each unit of accounting are based on an allocation of total arrangement consideration using a hierarchy of estimated selling price for the deliverables. The selling price used for each deliverable will be based on Vendor Specific Objective Evidence ("VSOE"), if available, Third Party Evidence ("TPE"), if VSOE is not available, or estimated selling price, if neither VSOE nor TPE is available. See "Recent Accounting Pronouncements" within Note 1 for additional information on the impact of Accounting Standard Update 2014-9 on our performance obligations and the method which we determine and allocate the price of our contracts beginning in fiscal 2019. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost. Expenditures for renewals and improvements that significantly extend the useful life of an asset are capitalized. Expenditures for maintenance and repairs of assets are charged to operations as incurred when assets are sold or retired, the cost and accumulated depreciation are removed from the accounts and any gain or loss is credited or charged to operations. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets We evaluate goodwill for impairment annually during the fourth quarter of our fiscal year, or more frequently when indicators of impairment are present. We operate as four reportable segments based on four geographic countries or regions. Within these four reportable segments we have seven reporting units, each of which is assessed for potential impairments. We perform a qualitative analysis to determine whether it is more likely than not that the fair value of goodwill is less than its carrying amount. Some of the impairment indicators we consider include significant differences between the carrying amount and the estimated fair value of our assets and liabilities; macroeconomic conditions such as a deterioration in general economic condition or limitations on accessing capital; industry and market considerations such as a deterioration in the environment in which we operate and an increased competitive environment; cost factors such as increases in raw materials, labor, or other costs that have a negative effect on earnings and cash flows; overall financial performance such as negative or declining cash flows or a decline in actual or planned revenue or earnings compared with actual and projected results of relevant prior periods; other relevant events such as litigation, changes in management, key personnel, strategy or customers; the testing for recoverability of our long-lived assets and a potential decrease in share price. We evaluate the significance of identified events and circumstances on the basis of the weight of evidence along with how they could affect the relationship between the reporting unit's fair value and carrying amount, including positive mitigating events and circumstances. If we determine it is more likely than not that the fair value of goodwill is less than its carrying amount, then we perform the first step of the two-step goodwill impairment test. In the first step of the goodwill impairment test, the reporting unit's carrying amount (including goodwill) and its fair value are compared. If the estimated fair value of a reporting unit is less than the carrying value, a second step is performed to compute the amount of the impairment by determining an "implied fair value" of goodwill. The determination of the "implied fair value" requires us to allocate the estimated value of the reporting unit to the assets and liabilities of the reporting unit. Any unallocated fair value represents the "implied fair value" of goodwill, which is compared to the corresponding carrying value. If the "implied fair value" is less than the carrying value, an impairment charge will be recorded. In fiscal 2016, we recorded a $1,240 goodwill impairment charge related to the Unitemp acquisition as our expectations of future revenues and profitability were below those estimated at the time of the acquisition and, during the same period, we impaired an additional $473 of other intangibles as their fair value was less than their carrying value. In fiscal 2018 and 2017, the Company determined that no impairment of goodwill existed. Other intangible assets include indefinite lived intangible assets for which we must also perform an annual test of impairment. The Company's indefinite lived intangible assets consist primarily of trademarks. The fair value of the Company's trademarks is calculated using a "relief from royalty payments" methodology. This approach involves first estimating reasonable royalty rates for each trademark then applying these royalty rates to a net sales stream and discounting the resulting cash flows to determine the fair value. The royalty rate is estimated using both a market and income approach. The market approach relies on the existence of identifiable transactions in the marketplace involving the licensing of trademarks similar to those owned by the Company. The income approach uses a projected pretax profitability rate relevant to the licensed income stream. We believe the use of multiple valuation techniques results in a more accurate indicator of the fair value of each trademark. This fair value is then compared with the carrying value of each trademark. The results of this test during the fourth quarter of our fiscal year indicated that there was no impairment of our indefinite life intangible assets during fiscal 2018 , 2017 and 2016. |
Debt Issuance Costs | Debt Issuance Costs The Company defers the costs associated with debt and financing arrangements. These costs are amortized over the life of the loan or financing as interest expense. Additionally, for any unscheduled principle payments the Company will record additional deferred debt charges on a pro rata basis of the unamortized deferred debt balance at the time of the repayment. When debt or the contract is retired prematurely, the proportionate unamortized deferred issuance costs are expensed as loss on retirement. Deferred debt issuance costs expensed as part of interest expense for fiscal 2018 , fiscal 2017 and fiscal 2016 were $1,657 , $391 and $732 , respectively. Included in these amounts are the acceleration of amortization associated with the termination of the term loan A in fiscal 2018 of $376 , $880 related to the unscheduled principal repayment of $25,000 of term loan B in fiscal 2018, and the second amendment to our senior secured credit agreement, redemptions of our senior secured notes and our prior revolving credit facility |
Long-Lived Assets | Long-Lived Assets The Company evaluates its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of these assets is measured by comparison of the carrying amounts to the future undiscounted cash flows that the assets are expected to generate. If the long-lived assets are considered impaired, the impairment to be recognized equals the amount by which the carrying value of the asset exceeds the estimated fair value and is recorded in the period the determination was made. |
Stock-based Compensation | Stock-based Compensation We account for share-based payments to employees in accordance with ASC 718, Compensation-Stock Compensation , which requires that share-based payments (to the extent they are compensatory) be recognized in our consolidated statements of operations and comprehensive income based on their fair values. As required by ASC 718, we recognize stock-based compensation expense for share-based payments that are expected to vest. In determining whether an award is expected to vest, we account for forfeitures as they occur, rather than estimate expected forfeitures. We are also required to determine the fair value of stock-based awards at the grant date. For option awards that are subject to service conditions and/or performance conditions, we estimate the fair values of employee stock options using a Black-Scholes-Merton valuation model. Some of our option grants and awards included a market condition for which we used a Monte Carlo pricing model to establish grant date fair value. These determinations require judgment, including estimating expected volatility. If actual results differ significantly from these estimates, stock- based compensation expense and our results of operations could be impacted. |
Income Taxes | Income Taxes We account for income taxes under the asset and liability method that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in our financial statements or tax returns. Judgment is required in assessing the future tax consequences of events that have been recognized in our financial statements or tax returns. Variations in the actual outcome of these future tax consequences could materially impact our financial position, results of operations or effective tax rate. Significant judgment is required in determining our worldwide income tax provision. In the ordinary course of a global business, there are many transactions and calculations where the ultimate tax outcome is uncertain. Some of these uncertainties arise as a consequence of revenue sharing and cost reimbursement arrangements among related entities, the process of identifying items of revenue and expense that qualify for preferential tax treatment, and segregation of foreign and domestic earnings and expenses to avoid double taxation. Although we believe that our estimates are reasonable, the final tax outcome of these matters could be different from that which is reflected in our historical income tax provisions and accruals. Such differences could have a material effect on our income tax provision and net income in the period in which such determination is made. In estimating future tax consequences, all expected future events are considered other than enactments of changes in tax laws or rates. Valuation allowances are established when necessary to reduce deferred tax assets to amounts which are more likely than not to be realized. We consider future growth, forecasted earnings, future taxable income, the mix of earnings in the jurisdictions in which we operate, historical earnings, taxable income in prior years, if carryback is permitted under the law, and prudent and feasible tax planning strategies in determining the need for a valuation allowance. In the event we were to determine that we would not be able to realize all or part of our net deferred tax assets in the future, an adjustment to the deferred tax assets valuation allowance would be charged to earnings in the period in which we make such a determination, or goodwill would be adjusted at our final determination of the valuation allowance related to an acquisition within the measurement period. If we later determine that it is more likely than not that the net deferred tax assets would be realized, we would reverse the applicable portion of the previously provided valuation allowance as an adjustment to earnings at such time. The amount of income tax we pay is subject to ongoing audits by federal, state and foreign tax authorities, which often result in proposed assessments. Our estimate of the potential outcome for any uncertain tax issue is highly judgmental. We account for these uncertain tax issues pursuant to ASC 740, Income Taxes , which contains a two-step approach to recognizing and measuring uncertain tax positions taken or expected to be taken in a tax return. The first step is to determine if the weight of available evidence indicates that it is more likely than not that the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. Although we believe we have adequately reserved for our uncertain tax positions, no assurance can be given with respect to the final outcome of these matters. We adjust reserves for our uncertain tax positions due to changing facts and circumstances, such as the closing of a tax audit, judicial rulings, refinement of estimates or realization of earnings or deductions that differ from our estimates. To the extent that the final outcome of these matters is different than the amounts recorded, such differences generally will impact our provision for income taxes in the period in which such a determination is made. Our provisions for income taxes include the impact of reserve provisions and changes to reserves that are considered appropriate and also include the related interest and penalties. During fiscal 2018, we revised our permanent reinvestment position whereby we expect to repatriate future earnings. Given the Tax Act’s significant changes and potential opportunities to repatriate cash tax free, we have reevaluated our current permanent reinvestment position. Accordingly, we will no longer assert a permanent reinvestment position in most of our foreign subsidiaries. We expect to repatriate certain earnings which will be subject to withholding taxes. These additional withholding taxes are being recorded as an additional deferred tax liability associated with the basis difference in such jurisdictions. The uncertainty related to the taxation of such withholding taxes on distributions under the Tax Act and finalization of the cash repatriation plan makes the deferred tax liability a provisional amount. Please see Note 16, "Income Taxes" for more information on the impacts of the Tax Act. |
Foreign Currency Transactions and Translation | Foreign Currency Transactions and Translation Exchange adjustments resulting from foreign currency transactions are recognized in income as realized. For the Company's non-U.S. dollar functional currency subsidiaries, assets and liabilities of foreign subsidiaries are translated into U.S. dollars using year-end exchange rates. Income and expense items are translated at a weighted average exchange rate prevailing during the year. Adjustments resulting from translation of financial statements are reflected as a separate component of shareholders' equity. |
Loss Contingencies | Loss Contingencies We accrue for probable losses from contingencies on an undiscounted basis, when such costs are considered probable of being incurred and are reasonably estimable. Legal expense related to such matters are expensed as incurred. We periodically evaluate available information, both internal and external, relative to such contingencies and adjust this accrual as necessary. Disclosure of a contingency is required if there is at least a reasonable possibility that a material loss has been incurred. In determining whether a loss should be accrued we evaluate, among other factors, the degree of probability of an unfavorable outcome and the ability to make a reasonable estimate of the amount of loss. |
Warranties | Warranties The Company offers a standard warranty on product sales in which we will replace a defective product for a period of one year. Warranties on construction projects are negotiated individually, are typically one year in duration, and may include the cost of labor to replace products. Factors that affect the Company's warranty liability include the amount of sales, historical and anticipated rates of warranty claims, and cost per claim. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. |
Research and Development | Research and Development Research and development expenditures are expensed when incurred and are included in marketing, general and administrative and engineering expenses. Research and development expenses include salaries, direct costs incurred, and building and overhead expenses. |
Shipping and Handling Cost | Shipping and Handling Cost The Company includes shipping and handling as part of cost of sales and freight collections from customers is included as part of sales. |
Economic Dependence | Economic Dependence As of March 31, 2018 and 2017 , one major customer represented approximately 4% and 14% , respectively of the Company's accounts receivable balance. As of March 31, 2018 and March 31, 2016, no one customer represented more than 10% of the Company's accounts receivable balance. In fiscal 2018 , fiscal 2017 or fiscal 2016 |
Reclassifications | Reclassifications Certain reclassifications have been made within these consolidated financial statements to conform prior periods to current period classifications. On the Consolidated Balance Sheet at March 31, 2017, we reduced the previously reported balance of prepaid expenses and other current assets by $2,000 and increased income tax receivable by the same amount. The income tax receivable amounts relate to tax payments or accruals made currently, which have not been included in tax returns filed within their respective jurisdictions. The Company believes that presenting these amounts as current income tax receivables provides a better understanding of our position related to taxation obligations. Correction of an Error During the year ended March 31, 2016, the Company recorded a correction of an error that reduced marketing, general and administrative and engineering expense by $498 and decreased additional paid in capital by an equivalent amount. In previous years, the Company had expensed the withholding tax value of equity awards that were withheld by the Company at vesting. The Company determined that the value of withheld shares should have been recorded as a reduction to additional paid in capital. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Revenue Recognition- In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09 "Revenue from Contracts with Customers" (Topic 606), which amends the existing revenue recognition requirements and guidance. The core principle of the new standard is to recognize revenue that reflects the consideration the Company expects to receive for goods or services when or as the promised goods or services are transferred to customers. Topic 606 requires more judgment than current guidance, as management will now be required to: (i) identify each performance obligation in contracts with customers, (ii) estimate any variable consideration included in the transaction price and (iii) allocate the transaction price to each performance obligation. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company adopted the amended guidance using the modified retrospective method as of April 1, 2018. To assess the impact of the standard, we utilize internal resources to lead the implementation effort and supplemented our internal resources with external consultants. As of March 31, 2018, the Company has completed the evaluation of its revenue streams and has reviewed a sample of customer contracts that we believe fairly represent contract traits that could be accounted for differently under amended guidance. The Company has begun evaluating the potential impact of the new revenue standard on each of the selected contracts including: (i) estimating the contract consideration under the new standard, (ii) identifying the performance obligations within the customer contracts, (iii) calculating the anticipated allocation of contract consideration to each performance obligation, (iv) determining the timing of revenue recognition for each performance obligation, and (v) determining the classification of the contract revenue for disclosure purposes. As a result of the evaluation, the Company has identified certain engineering services revenue related to projects on existing facilities that will now be deferred, until delivery of product, as a fulfillment obligation under the amended guidance, as well as other minor changes in accounting. The transition adjustment related to the adoption is estimated to be immaterial (less than 1% of total revenues for the fiscal year ended March 31, 2018 and total shareholders’ equity as of March 31, 2018), and we do not expect the adoption of this standard to materially impact the amount or timing of our revenue going forward. An adjustment will be recorded to our fiscal 2019 beginning retained earnings for the cumulative effect of the change. We intend to provide additional disclosures as required by the new standard, which we are currently assessing, in our quarterly report on Form 10-Q for the first quarter of fiscal 2019. Stock Compensation- I n March 2016, the Financial Accounting Standards Board issued Accounting Standards Update 2016-09 "Compensation-Stock Compensation" (Topic 718), which changes the accounting for certain aspects of share-based payments to employees. The new guidance requires excess tax benefits and tax deficiencies to be recorded in the income statement when the awards vest or are settled. Additionally, cash flows related to excess tax benefits will no longer be separately classified as a financing activity and will be included as an operating activity on the consolidated statements of cash flows. W e have elected to account for forfeitures as they occur, rather than estimate expected forfeitures. The standard is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. We adopted this standard effective April 1, 2017 and it did not have a material impact on our consolidated financial statements. Inventory - In July 2015, the Financial Accounting Standards Board issued Accounting Standards Update 2015-11 "Simplifying the Measurement of Inventory" (Topic 330). Under the new guidance, inventory is measured at the lower of cost and net realizable value, and the new guidance eliminates the use of replacement cost and net realizable value less a normal profit margin as techniques to value inventory. Net realizable value is defined as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The new guidance will be applied prospectively for annual periods and interim periods within fiscal years beginning after December 15, 2016. We adopted this standard effective April 1, 2017 and it did not have a material impact on our consolidated financial statements. Financial Instruments- In January 2016, the Financial Accounting Standards Board issued Accounting Standards Update 2016-01 "Financial Instruments-Overall" (Subtopic 825-10), which amends the guidance on the classification and measurement of financial instruments. The amendment requires all equity investments to be measured at fair value with changes in the fair value recognized through earnings. The amendment also requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the credit risk when an entity has elected the fair value option. The guidance eliminates the requirement to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. The new guidance is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2017. Early adoption is permitted for certain provisions of the accounting standards update. Upon the adoption of the standard, an entity will be required to make a cumulative-effect adjustment to retained earnings as of the beginning of such reporting period. We are currently evaluating when to adopt this standard. Upon adoption, we do not anticipate this standard will have a material impact on our consolidated financial statements. Leases- In February 2016, the Financial Accounting Standards Board issued Accounting Standards Update 2016-02 "Leases," which provides guidance on the recognition, measurement, presentation and disclosure on leases. Under the standard substantially all leases will be reported on the balance sheet as right-of-use assets and lease liabilities. The new guidance is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2018. Early adoption is permitted. We are currently evaluating the requirements of the standard and have not yet determined its impact on our consolidated financial statements. Financial Instruments - In June 2016, the Financial Accounting Standards Board issued Accounting Standards Update 2016-13 “Financial Instruments-Credit Losses” (Topic 326), which amends the guidance on the impairment of financial instruments. The standard adds an impairment model, referred to as current expected credit loss, which is based on expected losses rather than incurred losses. The standard applies to most debt instruments, trade receivables, lease receivables, reinsurance receivables, financial guarantees and loan commitments. Under the guidance, companies are required to disclose credit quality indicators disaggregated by year of origination for a five-year period. The new guidance is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2019. We do not anticipate this will have a material impact to our consolidated financial statements. Statement of Cash Flows- In August 2016, the Financial Accounting Standards Board issued Accounting Standards Update 2016-15 “Statement of Cash Flows” (Topic 230), which amends Topic 230 of the accounting standards codification (ASC) to add or clarify guidance on the classification of certain cash receipts and payments in the statement of cash flows. The standard addresses eight types of cash flows, some of which we believe could or will impact our financial statements upon adoption, including debt prepayment or debt extinguishment costs, contingent consideration payments made after a business combination, and proceeds from the settlement of insurance claims. Under the guidance, cash payments for debt prepayment or extinguishment costs must be classified as cash outflows from financing activities. Contingent consideration payments that were not made soon after a business combination must be separated and classified in operating and financing activities. Cash payments up to the amount of the contingent consideration liability recognized as of the acquisition dates, including any measurement-period adjustments, should be classified in financing activities, while any excess cash payments should be classified in operating activities. Cash proceeds from the settlement of insurance claims should be classified on the basis of the nature of the loss. The guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those years. Early adoption is permitted for all entities. Entities must apply the guidance retrospectively to all periods presented but may be applied prospectively if retrospective application would be impracticable. We do not anticipate this will have a material impact to our consolidated financial statements. |
Organization and Summary of S27
Organization and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Changes in Allowance for Doubtful Accounts | The following table summarizes the annual changes in our allowance for doubtful accounts: Balance at March 31, 2015 $ 785 Reduction in reserve 214 Write-off of uncollectible accounts (343 ) Balance at March 31, 2016 656 Additions to reserve 307 Write-off of uncollectible accounts (445 ) Balance at March 31, 2017 518 Additions to reserve 787 Write-off of uncollectible accounts (74 ) Balance at March 31, 2018 $ 1,231 |
Schedule of Property, Plant and Equipment | Depreciation is computed using the straight-line method over the following lives: Useful Lives in Years Land improvements 15 - 20 Buildings and improvements 10 - 40 Machinery and equipment 3 - 25 Office furniture and equipment 3 - 10 Internally developed software 5 - 7 Property, plant and equipment consisted of the following at March 31: 2018 2017 Land, buildings and improvements $ 50,808 $ 23,812 Machinery and equipment 24,182 20,727 Office furniture and equipment 20,818 13,296 Internally developed software 4,069 3,188 Construction in progress 2,183 2,478 Property, plant and equipment at cost 102,060 63,501 Accumulated depreciation (27,575 ) (20,235 ) Property, plant and equipment, net $ 74,485 $ 43,266 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of long-term debt that is not measured at fair value | Information about our investments and long-term debt that is not measured at fair value follows: March 31, 2018 March 31, 2017 Carrying Value Fair Value Carrying Value Fair Value Valuation Technique Financial Assets Certificates of deposits with maturities greater than 90 days $ 1,022 $ 1,022 $ 44,786 $ 44,786 Level 2 - Market Approach Financial Liabilities Outstanding principal amount of senior secured credit facility $ 225,000 $ 225,000 $ 81,000 $ 81,000 Level 2 - Market Approach |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | As of March 31, 2018 and 2017 , the notional amounts of forward contracts were as follows: Notional amount of foreign exchange forward contracts by currency March 31, 2018 March 31, 2017 Russian Ruble $ 2,416 $ 250 Euro 750 — Canadian Dollar 4,000 — South Korean Won 10,500 1,300 Mexican Peso 200 450 Australian Dollar 850 375 Total notional amounts $ 18,716 $ 2,375 |
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | March 31, 2018 March 31, 2017 Fair Value Fair Value Assets Liabilities Assets Liabilities Foreign exchange contract forwards $ 229 $ 25 $ 62 $ 10 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of Intangible Assets | Our identifiable intangible assets at March 31, 2018 and 2017 that were related to the Sumac transaction consisted of the following: Amortization period Gross Carrying Amount at March 31, 2018 Accumulated Amortization Net Carrying Amount at March 31, 2018 Gross Carrying Amount at March 31, 2017 Accumulated Amortization Net Carrying Amount at March 31, 2017 Customer relationships 4 years $ 2,631 $ 1,973 $ 658 $ 2,551 $ 1,275 $ 1,276 Total $ 2,631 $ 1,973 $ 658 $ 2,551 $ 1,275 $ 1,276 Our identifiable intangible assets at March 31, 2018 , and March 31, 2017 that were related to the IPI transaction consisted of the following: Amortization period Gross Carrying Amount at March 31, 2018 Accumulated Amortization Net Carrying Amount at March 31, 2018 Gross Carrying Amount at March 31, 2017 Accumulated Amortization Net Carrying Amount at March 31, 2017 Customer relationships 8 years $ 5,962 $ 1,987 $ 3,975 $ 5,962 $ 1,242 $ 4,720 Trademark 8 years 1,820 607 1,213 1,820 379 1,441 Non-compete agreement 3 years 807 717 90 807 448 359 Total $ 8,589 $ 3,311 $ 5,278 $ 8,589 $ 2,069 $ 6,520 ntangible assets at March 31, 2018 , and 2017 consisted of the following (including THS, IPI, Sumac, and Unitemp): Gross Carrying Amount at March 31, 2018 Accumulated Amortization Net Carrying Amount at March 31, 2018 Gross Carrying Amount at March 31, 2017 Accumulated Amortization Net Carrying Amount at March 31, 2017 Products $ 64,611 $ 2,719 $ 61,892 $ — $ — $ — Trademarks 46,156 832 45,324 44,563 521 44,042 Developed technology 10,160 4,106 6,054 9,796 3,454 6,342 Customer relationships 113,378 77,646 35,732 99,676 64,682 34,994 Certifications 458 — 458 442 — 442 Other 5,863 3,889 1,974 2,626 2,268 358 Total $ 240,626 $ 89,192 $ 151,434 $ 157,103 $ 70,925 $ 86,178 |
Schedule of Business Acquisitions, by Acquisition | Consideration to or on behalf of sellers at close $ 10,956 Fair value of total consideration transferred $ 10,956 The table below summarizes our provisional estimates of the fair value of assets and liabilities assumed as well as the final fair value of assets and liabilities assumed: Provisional Fair Value Final Fair Value Customer relationships $ 10,720 $ 5,962 Goodwill 10,204 13,249 Noncurrent deferred tax liability 4,962 3,249 |
Business Acquisition, Pro Forma Information | Pro Forma Financial Information (Unaudited) Twelve months ended March 31, 2018 2017 Revenues $ 348,557 $ 331,007 Net income available to Thermon Group Holdings, Inc. 5,303 3,318 Earnings per share: Basic $ 0.16 $ 0.10 Diluted $ 0.16 $ 0.10 |
Business Combination, Purchase Price Information | The following table details the purchase price of the THS transaction: Consideration to or on behalf of sellers at close $ 204,235 Fair value of total consideration transferred $ 204,235 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary fair value of the assets acquired and liabilities assumed: Assets acquired: Cash $ 1,534 Accounts receivable 14,351 Costs and estimated earning in excess of billing on uncompleted contracts 450 Inventories 20,085 Other current assets 731 Property, plant and equipment 29,464 Identifiable intangible assets 79,002 Goodwill 85,156 Total assets 230,773 Liabilities assumed: Current liabilities 6,712 Other non-current liabilities 500 Non-current deferred tax liability 19,326 Total liabilities 26,538 Total consideration $ 204,235 The following table summarizes the fair value of the assets and liabilities assumed: Assets acquired: Accounts receivable $ 1,693 Inventories 1,299 Other current assets 33 Property, plant and equipment 1,316 Identifiable intangible assets 3,085 Goodwill 7,992 Deferred tax asset 111 Total assets 15,529 Liabilities assumed: Current liabilities 935 Total liabilities 935 Non-controlling interests 3,638 Total consideration $ 10,956 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | Our provisional estimate of identifiable intangible assets at March 31, 2018 that were related to the THS transaction, inclusive of currency translation adjustments for the period, consisted of the following: Amortization period Gross Carrying Amount at March 31, 2018 Accumulated Amortization Net Carrying Amount at March 31, 2018 Products 10 years $ 64,611 $ 2,692 $ 61,919 Customer relationships 17 years 11,155 273 10,882 Backlog 1 year 3,230 1,346 1,884 Total $ 78,996 $ 4,311 $ 74,685 |
Net Income per Common Share (Ta
Net Income per Common Share (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of the denominators used to calculate basic EPS and diluted EPS | The reconciliations of the denominators used to calculate basic net income per common share and diluted net income per common share for fiscal 2018 , fiscal 2017 , and fiscal 2016 , respectively, is as follows: Year Ended March 31, 2018 Year Ended March 31, 2017 Year Ended March 31, 2016 Basic net income per common share Net income available to Thermon Group Holdings, Inc. $ 11,913 $ 14,641 $ 23,009 Weighted-average common shares outstanding 32,423,581 32,301,661 32,176,925 Basic net income per common share $ 0.37 $ 0.45 $ 0.72 Year Ended March 31, 2018 Year Ended March 31, 2017 Year Ended March 31, 2016 Diluted net income per common share Net income available to Thermon Group Holdings, Inc. $ 11,913 $ 14,641 $ 23,009 Weighted-average common shares outstanding 32,423,581 32,301,661 32,176,925 Common share equivalents: Stock options issued 218,693 216,041 241,529 Restricted and performance stock units issued 155,077 115,579 174,192 Weighted average shares outstanding – dilutive 32,797,351 32,633,281 32,592,646 Diluted net income per common share $ 0.36 $ 0.45 $ 0.71 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories consisted of the following at March 31: 2018 2017 Raw materials $ 31,516 $ 12,270 Work in process 7,186 1,769 Finished goods 27,204 21,310 65,906 35,349 Valuation reserves (2,077 ) (1,329 ) Inventories, net $ 63,829 $ 34,020 The following table summarizes the annual changes in our valuation reserve accounts: Balance at March 31, 2015 $ 1,116 Additions in reserve 383 Charged to reserve (212 ) Balance at March 31, 2016 1,287 Additions in reserve 348 Charged to reserve (306 ) Balance at March 31, 2017 1,329 Additions in reserve 721 Charged to reserve 27 Balance at March 31, 2018 $ 2,077 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Depreciation is computed using the straight-line method over the following lives: Useful Lives in Years Land improvements 15 - 20 Buildings and improvements 10 - 40 Machinery and equipment 3 - 25 Office furniture and equipment 3 - 10 Internally developed software 5 - 7 Property, plant and equipment consisted of the following at March 31: 2018 2017 Land, buildings and improvements $ 50,808 $ 23,812 Machinery and equipment 24,182 20,727 Office furniture and equipment 20,818 13,296 Internally developed software 4,069 3,188 Construction in progress 2,183 2,478 Property, plant and equipment at cost 102,060 63,501 Accumulated depreciation (27,575 ) (20,235 ) Property, plant and equipment, net $ 74,485 $ 43,266 |
Goodwill and Other Intangible33
Goodwill and Other Intangible Assets(Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of carrying amount of goodwill | The carrying amount of goodwill for all reporting segments as of March 31, 2018 , 2017 and 2016 is as follows: United States Canada Europe Asia Total Balance as of March 31, 2016 $ 48,971 $ 44,488 $ 19,427 $ 8,624 $ 121,510 Purchase price adjustment 3,045 — — — 3,045 Foreign currency translation impact — (1,044 ) (990 ) — (2,034 ) Balance as of March 31, 2017 $ 52,016 $ 43,444 $ 18,437 $ 8,624 $ 122,521 Goodwill acquired — 85,156 — — 85,156 Foreign currency translation impact — 167 2,722 — 2,889 Balance as of March 31, 2018 $ 52,016 $ 128,767 $ 21,159 $ 8,624 $ 210,566 |
Schedule of Future Amortization Expense | Annual amortization of intangible assets for the next five years and thereafter will approximate the following: 2019 $ 20,857 2020 18,217 2021 9,703 2022 8,640 2023 8,635 Thereafter 41,100 Total $ 107,152 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of accrued current liabilities | Accrued current liabilities consisted of the following: March 31, March 31, Accrued employee compensation and related expenses $ 16,449 $ 8,364 Accrued interest 1,154 — Customer prepayment 519 168 Warranty reserve 300 300 Professional fees 1,854 1,631 Sales tax payable 1,546 1,573 Other 988 1,106 Total accrued current liabilities $ 22,810 $ 13,142 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Long-term debt consisted of the following: March 31, March 31, Variable Rate Term Loan, due October 2024, net of deferred debt issuance costs and debt discounts of $7,967 as of March 31, 2018 $ 217,033 $ — Variable Rate Term Loan, due April 2019, net of deferred debt issuance costs of $524 as of March 31, 2017 — 80,476 Less current portion (2,500 ) (20,250 ) $ 214,533 $ 60,226 |
Schedule of maturities of long-term debt | Maturities of long-term debt principal payments are as follows for the fiscal years ended March 31: 2019 $ 2,500 2020 2,500 2021 2,500 2022 2,500 2023 2,500 2024 2,500 2025 210,000 Total $ 225,000 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum lease payments for operating leases | Future minimum annual lease payments under these leases are as follows for the fiscal years ended March 31: 2019 $ 3,152 2020 2,434 2021 1,788 2022 1,531 2023 1,187 Thereafter 1,854 $ 11,946 |
Schedule of contractual obligations by maturity year | The future annual service fees under the service agreements are as follows for the fiscal years ended March 31: 2019 $ 902 2020 59 2021 28 2022 21 $ 1,010 |
Schedule of product liability contingencies | Changes in the Company's warranty reserve are as follows Balance at March 31, 2015 $ 429 Reserve for warranties issued during the period 490 Settlements made during the period (459 ) Balance at March 31, 2016 $ 460 Reserve for warranties issued during the period 143 Settlements made during the period (303 ) Balance at March 31, 2017 $ 300 Reserve for warranties issued during the period 281 Settlements made during the period (281 ) Balance at March 31, 2018 $ 300 |
Stock-Based Compensation Expe37
Stock-Based Compensation Expense (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of shares outstanding | A summary of stock option activity under our Stock Plans for fiscal 2018 , fiscal 2017 and fiscal 2016 are as follows: Options Outstanding Number of Shares Weighted Average Exercise Price Balance at March 31, 2015 465,042 $ 8.12 Exercised (29,056 ) 8.25 Forfeited (2,260 ) 17.10 Balance at March 31, 2016 433,726 $ 8.07 Granted 28,499 19.64 Exercised (47,484 ) 6.77 Forfeited (2,802 ) 19.58 Balance at March 31, 2017 411,939 $ 8.94 Exercised (42,956 ) 7.00 Forfeited (1,412 ) 19.83 Balance at March 31, 2018 367,571 $ 9.12 |
Schedule of nonvested share activity | For fiscal 2018 , fiscal 2017 and fiscal 2016 the intrinsic value of stock option exercises was $648 , $627 , and $384 , respectively. Unvested Options Number of Shares Weighted Average Grant Date Fair Value Balance at March 31, 2015 $ 73,449 $ 7.19 Vested (30,379 ) 6.93 Forfeited (2,260 ) 7.53 Balance at March 31, 2016 $ 40,810 $ 7.39 Granted 28,499 19.64 Vested (28,678 ) 6.93 Forfeited (2,802 ) 7.53 Balance at March 31, 2017 $ 37,829 $ 8.86 Vested (17,417 ) 6.93 Forfeited (1,412 ) 19.83 Balance at March 31, 2018 $ 19,000 $ 5.89 |
Schedule of shares oustanding, vested and exercisable | The following table summarizes information about stock options outstanding as of March 31, 2018 : Options Outstanding Options Vested and Exercisable Exercise Price Number Outstanding Weighted Average Contractual Life (Years) Weighted Average Exercise Price Aggregate Intrinsic Value at March 31, 2018 Number Vested and Exercisable Weighted Average Contractual Life (Years) Weighted Average Exercise Price Aggregate Intrinsic Value at March 31, 2017 $5.20 238,863 2.55 $ 5.20 $ 4,110,832 238,863 2.55 $ 5.20 $ 4,110,832 $9.82 13,339 2.91 9.82 167,938 13,339 2.91 9.82 167,938 $12.00 47,250 3.09 12.00 491,248 47,250 3.09 12.00 491,248 $19.64 28,499 8.76 19.64 78,942 9,499 8.76 19.64 26,312 $21.52 39,620 4.34 21.52 35,532 39,620 4.34 21.52 35,532 $5.20-$21.52 367,571 3.31 $ 9.12 $ 4,884,492 348,571 3.31 $ 8.55 $ 4,831,862 |
Schedule restricted stock activity | Restricted Stock Units Number of Shares Weighted Average Grant Fair Value Balance of unvested units at March 31, 2015 198,822 $ 22.38 Granted 98,009 24.08 Released (69,704 ) 21.97 Forfeited (34,906 ) 22.53 Balance of unvested units at March 31, 2016 192,221 $ 23.36 Granted 135,855 18.65 Released (111,611 ) 22.74 Forfeited (8,319 ) 21.25 Balance of unvested units at March 31, 2017 208,146 $ 20.64 Granted 119,302 19.16 Released (88,084 ) 21.51 Forfeited (10,252 ) 20.05 Balance of unvested units at March 31, 2018 229,112 $ 19.55 |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | The following table summarized the target number of performance stock units outstanding and the minimum and maximum number of shares that can be earned as of March 31, 2018. Fiscal Year Granted Target Minimum Maximum Fiscal 2017 47,486 — 94,972 Fiscal 2018 73,684 — 147,368 The following table summarizes the number of awards earned and released during each fiscal year based on the results achieved for respective performance period: Fiscal Year Earned Number of Shares Earned Number of Shares Withheld for Tax Obligation Number of Shares Released Fiscal 2016 31,658 8,669 22,989 Fiscal 2017 — — — Fiscal 2018 — — — |
Other Expense (Tables)
Other Expense (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Other Income and Expenses [Abstract] | |
Other Nonoperating Income and Expense [Text Block] | Other expense consisted of the following: Year Ended March 31, 2018 Year Ended March 31, 2017 Year Ended March 31, 2016 Foreign currency transaction loss $ (5,629 ) $ (176 ) $ (139 ) Loss on foreign exchange forwards (96 ) (453 ) (411 ) Other 130 219 (126 ) $ (5,595 ) $ (410 ) $ (676 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Income taxes included in the consolidated income statement consisted of the following: Year Ended March 31, 2018 Year Ended March 31, 2017 Year Ended March 31, 2016 Current provision: Federal provision $ 3,937 $ 1,588 $ 4,185 Foreign provision 12,768 6,341 8,503 State provision 301 155 311 Deferred provision: Federal deferred benefit (8,506 ) (1,907 ) (1,964 ) Foreign deferred benefit (3,178 ) (2,025 ) (2,263 ) State deferred benefit (152 ) (54 ) (56 ) Total provision for income taxes $ 5,170 $ 4,098 $ 8,716 |
Schedule of Deferred Tax Assets and Liabilities | Deferred income tax assets and liabilities were as follows: March 31, 2018 2017 Deferred tax assets: Accrued liabilities and reserves $ 1,987 $ 1,617 Stock option compensation 821 932 Foreign deferred benefits 3,575 2,340 Net operating loss carry-forward 1,688 1,250 Inventories 371 440 Capitalized transaction costs 207 390 Interest rate swap included in Other Comprehensive Loss — 18 Foreign tax credit carry forward 104 65 Valuation allowance (878 ) (659 ) Total deferred tax assets $ 7,875 $ 6,393 Deferred tax liabilities: Intangible assets $ (9,498 ) $ (17,952 ) Intangible assets - foreign (25,674 ) (7,452 ) Property, plant and equipment (2,522 ) (3,637 ) Prepaid expenses (104 ) (161 ) Unrealized loss on hedge (45 ) (19 ) Undistributed foreign earnings (859 ) (10 ) Total deferred tax liabilities (38,702 ) (29,231 ) Net deferred tax asset (liability) $ (30,827 ) $ (22,838 ) |
Schedule of Income before Income Tax | The U.S. and non-U.S. components of income (loss) from continuing operations before income taxes were as follows: Year Ended March 31, 2018 Year Ended March 31, 2017 Year Ended March 31, 2016 U.S. $ (13,568 ) $ (83 ) $ 13,043 Non-U.S. 31,957 19,165 19,323 Income from continuing operations $ 18,389 $ 19,082 $ 32,366 |
Schedule of Effective Income Tax Rate Reconciliation | The difference between the provision for income taxes and the amount that would result from applying the U.S. statutory tax rate to income before provision for income taxes is as follows: Year Ended March 31, 2018 Year Ended March 31, 2017 Year Ended March 31, 2016 Notional U.S. federal income tax expense at statutory rate $ 5,792 $ 6,679 $ 11,328 Adjustments to reconcile to the income tax provision: Transition tax for United States tax reform 5,125 — — Impact on deferred tax liability for statutory rate change (5,849 ) — 455 U.S. state income tax provision, net 111 45 150 Undistributed foreign earnings 1,786 — — Rate difference-international subsidiaries (1,769 ) (2,622 ) (1,727 ) Charges/(benefits) related to uncertain tax positions (533 ) (128 ) (1,227 ) Non-deductible charges 758 296 51 Foreign purchase price adjustment — (379 ) — Change in valuation allowance 219 490 — Other, net (470 ) (283 ) (314 ) Provision for income taxes $ 5,170 $ 4,098 $ 8,716 |
Summary of Discrete Impacts From the 2017 Tax Act | Accordingly, our income tax provision as of March 31, 2018 reflects (i) the current fiscal year impacts of the Tax Act on the estimated annual effective tax rate and (ii) the following discrete items resulting directly from the enactment of the Tax Act based on the information available, prepared, or analyzed (including computations) in reasonable detail. Year Ended March 31, Transition Tax (provisional) $ 5,126 Net impact on U.S. deferred tax assets and liabilities (provisional) (6,030 ) Net changes in deferred tax liability associated with anticipated repatriation taxes (provisional) 1,704 Net discrete impacts of the enactment of the Tax Act $ 800 |
Schedule of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Year Ended March 31, 2018 Year Ended March 31, 2017 Beginning balance $ 533 $ 661 Reductions for tax positions of prior years (533 ) (176 ) Interest and penalties on prior reserves — 48 Reserve for uncertain income taxes $ — $ 533 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Total sales and operating income classified by major geographic area in which the company operates | Total sales to external customers, inter-segment sales, depreciation expense, amortization expense, income from operations and total assets classified by major geographic area in which the Company operates are as follows: Year Ended March 31, 2018 Year Ended March 31, 2017 Year Ended March 31, 2016 Sales to External Customers: United States $ 114,548 $ 119,791 $ 126,033 Canada 94,427 41,721 56,925 Europe 68,352 71,133 65,370 Asia 31,282 31,485 33,600 $ 308,609 $ 264,130 $ 281,928 Inter-segment Sales: United States $ 50,155 $ 45,966 $ 50,807 Canada 7,294 3,610 3,886 Europe 1,614 1,580 2,367 Asia 1,668 1,407 435 $ 60,731 $ 52,563 $ 57,495 Depreciation Expense: United States $ 4,326 $ 3,632 $ 3,117 Canada 3,019 1,933 1,071 Europe 476 301 296 Asia 141 194 171 $ 7,962 $ 6,060 $ 4,655 Amortization of Intangibles: United States $ 6,018 $ 5,860 $ 6,080 Canada 7,979 3,538 3,543 Europe 1,398 1,310 1,426 Asia 1,063 1,064 1,063 $ 16,458 $ 11,772 $ 12,112 Income from Operations: United States $ 484 $ 5,359 $ 20,607 Canada (a) 26,198 8,040 7,302 Europe (b) 6,842 9,095 8,586 Asia 4,111 4,512 5,541 Unallocated: Public company costs (1,378 ) (1,160 ) (1,526 ) Stock compensation (3,519 ) (3,402 ) (3,749 ) $ 32,738 $ 22,444 $ 36,761 March 31, 2018 March 31, 2017 Fixed Assets: United States $ 37,112 $ 34,563 Canada 33,076 4,674 Europe 3,567 3,532 Asia 730 497 $ 74,485 $ 43,266 Total Assets: United States $ 213,099 $ 186,300 Canada 317,635 136,688 Europe 89,379 80,589 Asia 42,364 50,503 $ 662,477 $ 454,080 (a) During the year ended March 31, 2016, the Canadian segment's operating income was negatively impacted by $5,706 due to acquisition related contingent consideration accounted for as compensation. As part of the Sumac transaction, we issued the sellers a $5,905 non-interest bearing note that matured on April 1, 2016. The terms of the performance-based note assume the continued employment of Sumac's principals, and as a result, the performance note payment is accounted for as compensation expense. The performance note was settled during the first quarter of fiscal 2017. (b) During the year ended March 31, 2016, the European segment's operating income was negatively impacted by a $1,713 impairment charge to Unitemp's goodwill and other intangible assets. |
Quarterly Results (Unaudited) (
Quarterly Results (Unaudited) (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial information | The unaudited quarterly financial data for each of the eight quarters in the two years ended March 31, 2018 are as follows: Three Months Ended March 31, 2018 December 31, 2017 September 30, 2017 June 30, 2017 Sales $ 102,582 $ 92,660 $ 61,631 $ 51,736 Gross Profit 46,823 42,214 30,960 23,814 Income from operations 13,553 10,210 7,417 1,558 Net income available to Thermon Group Holdings, Inc. $ 6,057 $ 599 $ 4,778 $ 479 Net income per common share Basic $ 0.19 $ 0.02 $ 0.15 $ 0.01 Diluted 0.18 0.02 0.15 0.01 Three Months Ended March 31, 2017 December 31, 2016 September 30, 2016 June 30, 2016 Sales $ 67,582 $ 64,340 $ 68,812 $ 63,396 Gross Profit 28,274 28,619 28,924 26,114 Income from operations 5,280 7,299 5,675 4,190 Net income available to Thermon Group Holdings, Inc. $ 3,251 $ 5,358 $ 3,506 $ 2,526 Net income per common share Basic $ 0.15 $ 0.17 $ 0.11 $ 0.08 Diluted 0.15 0.16 0.11 0.08 |
Organization and Summary of S42
Organization and Summary of Significant Accounting Policies (Details) | Apr. 30, 2010USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) |
Business Acquisition [Line Items] | ||||
Accounts receivable, allowance for doubtful accounts (in dollars) | $ 1,231,000 | $ 518,000 | ||
Decrease in prepaid expenses and other current assets | (9,054,000) | (5,806,000) | ||
Increase in income tax receivable | 1,885,000 | 2,028,000 | ||
Selling, General and Administrative Expense | 94,615,000 | 77,715,000 | $ 80,729,000 | |
Goodwill impaired | 0 | (1,240,000) | 0 | |
Asset Impairment Charges | 473,000 | |||
Cost of selling controlling interest | $ 129,252,000 | |||
Non-U.S. | $ 33,501,000 | $ 21,698,000 | $ 19,304,000 | |
Disclosure on Geographic Areas, Long-Lived Assets in Foreign Countries | 68.00% | 59.00% | ||
Entity Wide Disclosure On Geographic Areas, Revenue From External Customers Attributed To Foreign Countries, Percentage | 63.00% | 55.00% | 55.00% | |
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Amortization of Deferred Charges | $ 1,657,000 | $ 391,000 | $ 732,000 | |
Research and Development Expense | $ 5,240,000 | 3,501,000 | 3,338,000 | |
Group of investors and other private equity firms [Member] | ||||
Business Acquisition [Line Items] | ||||
Number of other private equity firms | 2 | |||
Land Improvements [Member] | Minimum [Member] | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Property, plant and equipment, estimated useful lives | 15 years | |||
Land Improvements [Member] | Maximum [Member] | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Property, plant and equipment, estimated useful lives | 20 years | |||
Building and Building Improvements [Member] | Minimum [Member] | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Property, plant and equipment, estimated useful lives | 10 years | |||
Building and Building Improvements [Member] | Maximum [Member] | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Property, plant and equipment, estimated useful lives | 40 years | |||
Machinery and equipment [Member] | Minimum [Member] | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Property, plant and equipment, estimated useful lives | 3 years | |||
Machinery and equipment [Member] | Maximum [Member] | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Property, plant and equipment, estimated useful lives | 25 years | |||
Furniture and Fixtures [Member] | Minimum [Member] | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Property, plant and equipment, estimated useful lives | 3 years | |||
Furniture and Fixtures [Member] | Maximum [Member] | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Property, plant and equipment, estimated useful lives | 10 years | |||
Software Development [Member] | Minimum [Member] | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Property, plant and equipment, estimated useful lives | 5 years | |||
Software Development [Member] | Maximum [Member] | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Property, plant and equipment, estimated useful lives | 7 years | |||
Allowance for Doubtful Accounts [Member] | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance, beginning of period | $ 518,000 | 656,000 | 785,000 | |
Reductions to expense | 787,000 | |||
Additions charged to expense | 307,000 | 214,000 | ||
Write-off of uncollectible accounts | (74,000) | (445,000) | (343,000) | |
Balance, end of period | 1,231,000 | 518,000 | $ 656,000 | |
Predecessor [Member] | Group of investors and other private equity firms [Member] | Thermon Holding Corp. [Member] | ||||
Business Acquisition [Line Items] | ||||
Fair value of total consideration transferred | $ 321,500,000 | |||
Consideration transferred, liabilities incurred | $ 210,000,000 | |||
Restatement Adjustment [Member] | ||||
Business Acquisition [Line Items] | ||||
Decrease in prepaid expenses and other current assets | 2,000,000 | |||
Increase in income tax receivable | $ 2,000,000 | |||
Correction of Marketing, General and Administrative and Engineering Expense | ||||
Business Acquisition [Line Items] | ||||
Selling, General and Administrative Expense | 498,000 | |||
Accounting Standards Update 2015-07 | ||||
Business Acquisition [Line Items] | ||||
Increase (Decrease) in Other Noncurrent Assets | $ 1,061,000 | |||
Customer Concentration Risk | ||||
Business Acquisition [Line Items] | ||||
Concentration risk, percentage | 4.00% | 14.00% | ||
Term Loan A [Member] | ||||
Business Acquisition [Line Items] | ||||
Accelerated amortization of debt issuance costs | $ 376 | |||
Term Loan B [Member] | ||||
Business Acquisition [Line Items] | ||||
Accelerated amortization of debt issuance costs | 880 | |||
Repayments of debt | $ 25,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | $ 225,000 | |
Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Certificates of deposits with maturities greater than 90 days | 1,022 | $ 44,786 |
Carrying Value | Senior Secured Credit Facility [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 225,000 | 81,000 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Certificates of deposits with maturities greater than 90 days | 1,022 | 44,786 |
Fair Value | Senior Secured Credit Facility [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 225,000 | $ 81,000 |
Fair Value Measurements - Acqui
Fair Value Measurements - Acquisition Related Foreign Exchange Option (Details) - Oct. 03, 2017 | USD ($) | CAD ($) |
Derivative [Line Items] | ||
Realized loss on foreign exchange | $ 3,326,000 | |
Foreign Exchange Contract [Member] | ||
Derivative [Line Items] | ||
Notional amount | $ 200,000,000 | |
Foreign currency exchange minimum | 162,100,000 | |
Foreign currency exchange maximum | 159,200,000 | |
Spot rate value | $ 155,900,000 |
Fair Value Measurements - Cross
Fair Value Measurements - Cross Currency Swap (Details) | 12 Months Ended |
Mar. 31, 2018USD ($) | |
Derivative [Line Items] | |
Intercompany receivable | $ 112,750,000 |
Currency Swap [Member] | |
Derivative [Line Items] | |
Loss on long-term derivative contract | $ 1,540,000 |
Fair Value Measurements - Forei
Fair Value Measurements - Foreign Exchange Contracts by Currency (Details) - Foreign Exchange Forward Contracts [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Derivative [Line Items] | |||
Gain (loss) on realized on foreign currency related to forward contracts | $ (96) | $ (453) | $ (411) |
Notional amount | 18,716 | 2,375 | |
Russian Rubles [Member] | |||
Derivative [Line Items] | |||
Notional amount | 2,416 | 250 | |
Euro [Member] | |||
Derivative [Line Items] | |||
Notional amount | 750 | 0 | |
Canada, Dollars | |||
Derivative [Line Items] | |||
Notional amount | 4,000 | 0 | |
South Korean Won [Member] | |||
Derivative [Line Items] | |||
Notional amount | 10,500 | 1,300 | |
Mexico, Pesos | |||
Derivative [Line Items] | |||
Notional amount | 200 | 450 | |
Australia, Dollars | |||
Derivative [Line Items] | |||
Notional amount | $ 850 | $ 375 |
Fair Value Measurements - For47
Fair Value Measurements - Foreign Exchange Contracts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Maximum term of forward contracts | 30 days | ||
Net foreign currency loss | $ 5,725 | $ 628 | $ 550 |
Foreign Exchange Forward Contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign exchange contract forwards, assets | 229 | 62 | |
Foreign exchange contract forwards, liabilities | 25 | 10 | |
Gain (loss) on realized on foreign currency related to forward contracts | $ (96) | $ (453) | $ (411) |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) $ in Thousands | Oct. 30, 2017USD ($) | Oct. 30, 2017CAD ($) | Apr. 01, 2015USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Jul. 31, 2015USD ($) |
Business Acquisition [Line Items] | |||||||||||||||
Amortization of intangible assets | $ 16,458,000 | $ 11,772,000 | $ 12,112,000 | ||||||||||||
Amortization period | 10 years 7 months 6 days | ||||||||||||||
Goodwill | $ 210,566,000 | $ 210,566,000 | 122,521,000 | ||||||||||||
Revenues | 308,609,000 | 264,130,000 | 281,928,000 | ||||||||||||
Operating income (loss) | 13,553,000 | $ 10,210,000 | $ 7,417,000 | $ 1,558,000 | $ 5,280,000 | $ 7,299,000 | $ 5,675,000 | $ 4,190,000 | $ 32,738,000 | 22,444,000 | 36,761,000 | ||||
Industrial Process Insulators, Inc. | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Equity interests acquired | 100.00% | ||||||||||||||
Consideration to or on behalf of sellers at close | $ 21,750,000 | ||||||||||||||
Amortization period | 7 years 2 months 12 days | ||||||||||||||
Amount of purchase price held in escrow | 3,026,000 | $ 3,026,000 | |||||||||||||
Goodwill | 13,249,000 | 13,249,000 | |||||||||||||
Thermon Heating Systems Inc. | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Equity interests acquired | 100.00% | ||||||||||||||
Payments to acquire business | $ 204,235,000 | $ 261,950 | |||||||||||||
Transaction costs | 4,093,000 | 4,093,000 | |||||||||||||
Goodwill | $ 85,156,000 | ||||||||||||||
Revenues | 41,011,000 | ||||||||||||||
Operating income (loss) | $ 7,266,000 | ||||||||||||||
Sumac | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Equity interests acquired | 75.00% | ||||||||||||||
Consideration to or on behalf of sellers at close | $ 10,956,000 | $ 10,956,000 | |||||||||||||
Payments to acquire business | 10,956,000 | ||||||||||||||
Amortization period | 3 years 7 months 18 days | ||||||||||||||
Goodwill | 7,992,000 | ||||||||||||||
Transaction costs | 134,000 | ||||||||||||||
Debt instrument, face amount | 5,905,000 | ||||||||||||||
Canada | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Amortization of intangible assets | $ 7,979,000 | 3,538,000 | 3,543,000 | ||||||||||||
Operating income (loss) | 26,198,000 | 8,040,000 | 7,302,000 | ||||||||||||
Canada | Sumac | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Debt instrument, face amount | 5,905,000 | ||||||||||||||
Operating Segments | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Goodwill acquired | 85,156,000 | ||||||||||||||
Goodwill | 210,566,000 | 121,510,000 | 210,566,000 | 122,521,000 | 121,510,000 | ||||||||||
Revenues | 308,609,000 | 264,130,000 | 281,928,000 | ||||||||||||
Operating Segments | Canada | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Goodwill acquired | 85,156,000 | ||||||||||||||
Goodwill | $ 128,767,000 | $ 44,488,000 | 128,767,000 | 43,444,000 | 44,488,000 | ||||||||||
Revenues | $ 94,427,000 | 41,721,000 | $ 56,925,000 | ||||||||||||
Canada, Dollars | Minimum [Member] | Sumac | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Debt instrument, maturity payment amount | 0 | ||||||||||||||
Canada, Dollars | Maximum | Sumac | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Debt instrument, maturity payment amount | $ 7,500,000 | ||||||||||||||
Service Life | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Amortization of intangible assets | 299 | ||||||||||||||
Performance Based Notes | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Repayments of debt | $ 5,805 |
Net Income per Common Share (De
Net Income per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2018 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 76,205 | 59,950 | 49,097 | ||||||||
Basic net income (loss) per common share | |||||||||||
Net income (loss) | $ 11,913 | $ 14,641 | $ 23,009 | ||||||||
Weighted-average common shares outstanding | 32,423,581 | 32,301,661 | 32,176,925 | ||||||||
Basic net income (loss) per common share (in dollars per share) | $ 0.19 | $ 0.02 | $ 0.15 | $ 0.01 | $ 0.15 | $ 0.17 | $ 0.11 | $ 0.08 | $ 0.37 | $ 0.45 | $ 0.72 |
Diluted net income (loss) per common share | |||||||||||
Net income (loss) | $ 11,913 | $ 14,641 | $ 23,009 | ||||||||
Weighted-average common shares outstanding | 32,423,581 | 32,301,661 | 32,176,925 | ||||||||
Weighted average shares oustanding - dilutive | 32,797,351 | 32,633,281 | 32,592,646 | ||||||||
Diluted (in dollars per share) | $ 0.18 | $ 0.02 | $ 0.15 | $ 0.01 | $ 0.15 | $ 0.16 | $ 0.11 | $ 0.08 | $ 0.36 | $ 0.45 | $ 0.71 |
Stock Options [Member] | |||||||||||
Diluted net income (loss) per common share | |||||||||||
Restricted and performance stock units issued | 218,693 | 216,041 | 241,529 | ||||||||
Restricted Stock Units (RSUs) [Member] | |||||||||||
Diluted net income (loss) per common share | |||||||||||
Restricted and performance stock units issued | 155,077 | 115,579 | 174,192 |
Acquisitions - Pro Forma Inform
Acquisitions - Pro Forma Information (Details) - Thermon Heating Systems Inc. - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Business Acquisition [Line Items] | ||
Revenues | $ 348,557 | $ 331,007 |
Net income available to Thermon Group Holdings, Inc. (loss) | $ 5,303 | $ 3,318 |
Basic (in dollars per share) | $ 0.16 | $ 0.10 |
Diluted (in dollars per share) | $ 0.16 | $ 0.10 |
Acquisitions - Purchase Price (
Acquisitions - Purchase Price (Details) $ in Thousands, $ in Thousands | Oct. 30, 2017USD ($) | Oct. 30, 2017CAD ($) | Jul. 31, 2015USD ($) | Apr. 01, 2015USD ($) |
Sumac | ||||
Business Acquisition [Line Items] | ||||
Purchase price | $ 10,956 | $ 10,956 | ||
Consideration to or on behalf of sellers at close | $ 10,956 | |||
Fair value of total consideration transferred | $ 10,956 | |||
Thermon Heating Systems Inc. | ||||
Business Acquisition [Line Items] | ||||
Consideration to or on behalf of sellers at close | $ 204,235 | $ 261,950 | ||
Fair value of total consideration transferred | $ 204,235 |
Acquisitions - Assets Acquired
Acquisitions - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Oct. 30, 2017 | Mar. 31, 2017 | Jul. 31, 2015 | Apr. 01, 2015 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 210,566 | $ 122,521 | |||
Non-controlling interests | $ 5,928 | $ 4,622 | |||
Sumac | |||||
Business Acquisition [Line Items] | |||||
Accounts receivable | $ 1,693 | ||||
Inventories | 1,299 | ||||
Other current assets | 33 | ||||
Property, plant and equipment | 1,316 | ||||
Goodwill | 7,992 | ||||
Current liabilities | 935 | ||||
Total liabilities | 935 | ||||
Identifiable intangible assets | 3,085 | ||||
Deferred tax asset | 111 | ||||
Total assets | 15,529 | ||||
Non-controlling interests | 3,638 | ||||
Purchase price | $ 10,956 | $ 10,956 | |||
Thermon Heating Systems Inc. | |||||
Business Acquisition [Line Items] | |||||
Cash | $ 1,534 | ||||
Accounts receivable | 14,351 | ||||
Costs and estimated earning in excess of billing on uncompleted contracts | 450 | ||||
Inventories | 20,085 | ||||
Other current assets | 731 | ||||
Property, plant and equipment | 29,464 | ||||
Identifiable intangible assets | 79,002 | ||||
Goodwill | 85,156 | ||||
Total assets | 230,773 | ||||
Current liabilities | 6,712 | ||||
Other non-current liabilities | 500 | ||||
Noncurrent deferred tax liability | 19,326 | ||||
Total liabilities | 26,538 | ||||
Total consideration | $ 204,235 |
Acquisitions - Finite-Lived Int
Acquisitions - Finite-Lived Intangible Assets Acquired (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Business Acquisition [Line Items] | ||
Amortization period | 10 years 7 months 6 days | |
Intangible assets, net | $ 151,434 | $ 86,178 |
Industrial Process Insulators, Inc. | ||
Business Acquisition [Line Items] | ||
Amortization period | 7 years 2 months 12 days | |
Gross carrying amount | $ 8,589 | 8,589 |
Accumulated Amortization | 3,311 | 2,069 |
Intangible assets, net | 5,278 | $ 6,520 |
Thermon Heating Systems Inc. | ||
Business Acquisition [Line Items] | ||
Gross Carrying Amount | 78,996 | |
Accumulated Amortization | 4,311 | |
Net Carrying Amount | $ 74,685 | |
Products | Thermon Heating Systems Inc. | ||
Business Acquisition [Line Items] | ||
Amortization period | 10 years | |
Gross Carrying Amount | $ 64,611 | |
Accumulated Amortization | 2,692 | |
Net Carrying Amount | 61,919 | |
Customer relationships | Industrial Process Insulators, Inc. | ||
Business Acquisition [Line Items] | ||
Amortization period | 8 years | |
Gross carrying amount | 5,962 | $ 5,962 |
Accumulated Amortization | 1,987 | 1,242 |
Intangible assets, net | $ 3,975 | $ 4,720 |
Customer relationships | Thermon Heating Systems Inc. | ||
Business Acquisition [Line Items] | ||
Amortization period | 17 years | |
Gross Carrying Amount | $ 11,155 | |
Accumulated Amortization | 273 | |
Net Carrying Amount | $ 10,882 | |
Backlog | Thermon Heating Systems Inc. | ||
Business Acquisition [Line Items] | ||
Amortization period | 1 year | |
Gross Carrying Amount | $ 3,230 | |
Accumulated Amortization | 1,346 | |
Net Carrying Amount | 1,884 | |
Trademarks | Industrial Process Insulators, Inc. | ||
Business Acquisition [Line Items] | ||
Amortization period | 8 years | |
Gross carrying amount | 1,820 | $ 1,820 |
Accumulated Amortization | 607 | 379 |
Intangible assets, net | 1,213 | $ 1,441 |
Other Intangible Assets | Industrial Process Insulators, Inc. | ||
Business Acquisition [Line Items] | ||
Amortization period | 3 years | |
Gross carrying amount | 807 | $ 807 |
Accumulated Amortization | 717 | 448 |
Intangible assets, net | $ 90 | $ 359 |
Acquisitions - Intangibles Acqu
Acquisitions - Intangibles Acquired (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2018 | |
Business Acquisition [Line Items] | ||
Intangible assets, net | $ 86,178 | $ 151,434 |
Sumac | ||
Business Acquisition [Line Items] | ||
Gross carrying amount | 2,551 | 2,631 |
Accumulated Amortization | 1,275 | 1,973 |
Intangible assets, net | $ 1,276 | 658 |
Customer relationships | Sumac | ||
Business Acquisition [Line Items] | ||
Amortization period | 4 years | |
Gross carrying amount | $ 2,551 | 2,631 |
Accumulated Amortization | 1,275 | 1,973 |
Intangible assets, net | $ 1,276 | $ 658 |
Acquisitions - Provisional (Det
Acquisitions - Provisional (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Business Acquisition [Line Items] | ||
Deferred income taxes | $ 34,252 | $ 25,661 |
Industrial Process Insulators, Inc. | ||
Business Acquisition [Line Items] | ||
Customer relationships | 10,720 | |
Goodwill | 10,204 | |
Deferred income taxes | 4,962 | |
Final Fair Value | Industrial Process Insulators, Inc. | ||
Business Acquisition [Line Items] | ||
Customer relationships | 5,962 | |
Goodwill | 13,249 | |
Deferred income taxes | $ 3,249 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 31,516 | $ 12,270 |
Work in process | 7,186 | 1,769 |
Finished goods | 27,204 | 21,310 |
Inventories, gross | 65,906 | 35,349 |
Valuation reserves | (2,077) | (1,329) |
Inventories, net | $ 63,829 | $ 34,020 |
Inventories Inventories - Valua
Inventories Inventories - Valuation Reserve Accounts (Details) - Inventory Valuation Reserve [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance, beginning of period | $ 1,329 | $ 1,287 | $ 1,116 |
Additions in reserve | 721 | 348 | 383 |
Charged to reserve | 27 | (306) | (212) |
Balance, end of period | $ 2,077 | $ 1,329 | $ 1,287 |
Property, Plant and Equipment58
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 102,060 | $ 63,501 | |
Accumulated Depreciation | (27,575) | (20,235) | |
Property, plant and equipment, net | 74,485 | 43,266 | |
Depreciation expense | 7,962 | 6,060 | $ 4,655 |
Land, buildings and improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 50,808 | 23,812 | |
Machinery and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 24,182 | 20,727 | |
Office furniture and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 20,818 | 13,296 | |
Internally developed software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 4,069 | 3,188 | |
Depreciation expense | 495 | 496 | $ 453 |
Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 2,183 | $ 2,478 |
Goodwill and Other Intangible59
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | Apr. 01, 2015 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill | $ 210,566 | $ 122,521 | ||
Amortization period | 10 years 7 months 6 days | |||
Amortization of intangible assets | $ 16,458 | 11,772 | $ 12,112 | |
Net carrying amount | 151,434 | 86,178 | ||
Finite-Lived Intangible Assets, Net | $ 107,152 | |||
CHS Transactions | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Amortization period | 10 years | |||
CHS Transactions | Developed Technology Rights | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Amortization period | 20 years | |||
CHS Transactions | Customer relationships | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Amortization period | 10 years | |||
CHS Transactions | Other Intangible Assets | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Amortization period | 6 years | |||
Industrial Process Insulators, Inc. | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Trademarks carrying amount | $ 1,820 | |||
Goodwill | $ 13,249 | |||
Amortization period | 7 years 2 months 12 days | |||
Net carrying amount | $ 5,278 | $ 6,520 | ||
Industrial Process Insulators, Inc. | Customer relationships | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Amortization period | 8 years | |||
Net carrying amount | 3,975 | $ 4,720 | ||
Industrial Process Insulators, Inc. | Other Intangible Assets | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Amortization period | 3 years | |||
Net carrying amount | $ 90 | $ 359 | ||
Sumac | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill | $ 7,992 | |||
Amortization period | 3 years 7 months 18 days | |||
Debt instrument, face amount | $ 5,905 | |||
Net carrying amount | $ 658 | $ 1,276 | ||
Sumac | Customer relationships | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Amortization period | 4 years | |||
Net carrying amount | 658 | $ 1,276 | ||
Unitemp | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Trademarks carrying amount | 474 | |||
CHS Transactions | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Net carrying amount | 151,434 | 86,178 | ||
CHS Transactions | Developed Technology Rights | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Net | 6,054 | 6,342 | ||
CHS Transactions | Customer relationships | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Net | 35,732 | 34,994 | ||
CHS Transactions | Other Intangible Assets | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Net | $ 1,974 | $ 358 |
Goodwill and Other Intangible60
Goodwill and Other Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning of period | $ 122,521 | |
Goodwill, end of period | 210,566 | $ 122,521 |
Operating Segments | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning of period | 122,521 | 121,510 |
Purchase price adjustment | 3,045 | |
Goodwill acquired | 85,156 | |
Foreign currency translation impact | 2,889 | (2,034) |
Goodwill, end of period | 210,566 | 122,521 |
Operating Segments | United States Segment | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning of period | 52,016 | 48,971 |
Purchase price adjustment | 3,045 | |
Goodwill acquired | 0 | |
Foreign currency translation impact | 0 | 0 |
Goodwill, end of period | 52,016 | 52,016 |
Operating Segments | Canada | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning of period | 43,444 | 44,488 |
Purchase price adjustment | 0 | |
Goodwill acquired | 85,156 | |
Foreign currency translation impact | 167 | (1,044) |
Goodwill, end of period | 128,767 | 43,444 |
Operating Segments | Europe Segment | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning of period | 18,437 | 19,427 |
Purchase price adjustment | 0 | |
Goodwill acquired | 0 | |
Foreign currency translation impact | 2,722 | (990) |
Goodwill, end of period | 21,159 | 18,437 |
Operating Segments | Asia Segment | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning of period | 8,624 | 8,624 |
Purchase price adjustment | 0 | |
Goodwill acquired | 0 | |
Foreign currency translation impact | 0 | 0 |
Goodwill, end of period | $ 8,624 | $ 8,624 |
Goodwill and Other Intangible61
Goodwill and Other Intangible Assets - Schedule of Definite-Lived Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Schedule of Acquired Indefinite-Lived and Finite-Lived Intangible Assets [Line Items] | ||
Net carrying amount, finite-lived intangibles | $ 107,152 | |
Intangible assets, net | 151,434 | $ 86,178 |
CHS Transactions | ||
Schedule of Acquired Indefinite-Lived and Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount, intangibles | 240,626 | 157,103 |
Accumulated amortization, intangibles | 89,192 | 70,925 |
Intangible assets, net | 151,434 | 86,178 |
CHS Transactions | Products | ||
Schedule of Acquired Indefinite-Lived and Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount, finite-lived intangibles | 64,611 | 0 |
Accumulated Amortization | 2,719 | 0 |
Net carrying amount, finite-lived intangibles | 61,892 | 0 |
CHS Transactions | Trademarks | ||
Schedule of Acquired Indefinite-Lived and Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount, finite-lived intangibles | 46,156 | 44,563 |
Accumulated Amortization | 832 | 521 |
Net carrying amount, finite-lived intangibles | 45,324 | 44,042 |
CHS Transactions | Developed Technology Rights | ||
Schedule of Acquired Indefinite-Lived and Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount, finite-lived intangibles | 10,160 | 9,796 |
Accumulated Amortization | 4,106 | 3,454 |
Net carrying amount, finite-lived intangibles | 6,054 | 6,342 |
CHS Transactions | Customer relationships | ||
Schedule of Acquired Indefinite-Lived and Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount, finite-lived intangibles | 113,378 | 99,676 |
Accumulated Amortization | 77,646 | 64,682 |
Net carrying amount, finite-lived intangibles | 35,732 | 34,994 |
CHS Transactions | Other Intangible Assets | ||
Schedule of Acquired Indefinite-Lived and Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount, finite-lived intangibles | 5,863 | 2,626 |
Accumulated Amortization | 3,889 | 2,268 |
Net carrying amount, finite-lived intangibles | 1,974 | 358 |
CHS Transactions | Certification Marks | ||
Schedule of Acquired Indefinite-Lived and Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $ 458 | $ 442 |
Goodwill and Other Intangible62
Goodwill and Other Intangible Assets - Schedule of Amortization (Details) $ in Thousands | Mar. 31, 2018USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2,017 | $ 20,857 |
2,018 | 18,217 |
2,019 | 9,703 |
2,020 | 8,640 |
2,021 | 8,635 |
Thereafter | 41,100 |
Net carrying amount, finite-lived intangibles | $ 107,152 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Payables and Accruals [Abstract] | ||
Accrued employee compensation and related expenses | $ 16,449 | $ 8,364 |
Accrued interest | 1,154 | 0 |
Customer prepayment | 519 | 168 |
Warranty reserve | 300 | 300 |
Professional fees | 1,854 | 1,631 |
Sales tax payable | 1,546 | 1,573 |
Other | 988 | 1,106 |
Total accrued current liabilities | $ 22,810 | $ 13,142 |
Short-Term Revolving Lines of C
Short-Term Revolving Lines of Credit (Details) | Mar. 31, 2018USD ($) | Mar. 31, 2018AUD ($) | Mar. 31, 2018EUR (€) | Mar. 31, 2018INR (₨) | Mar. 31, 2017USD ($) |
Netherlands [Member] | |||||
Short-Term Revolving Lines of Credit | |||||
Outstanding borrowings | $ 0 | $ 0 | |||
India [Member] | |||||
Short-Term Revolving Lines of Credit | |||||
Outstanding borrowings | 0 | 0 | |||
Australia [Member] | |||||
Short-Term Revolving Lines of Credit | |||||
Outstanding borrowings | 0 | ||||
Revolving Credit Facility [Member] | |||||
Short-Term Revolving Lines of Credit | |||||
Outstanding borrowings | 0 | $ 0 | |||
Euro Member Countries, Euro | Revolving Credit Facility [Member] | Netherlands [Member] | |||||
Short-Term Revolving Lines of Credit | |||||
Maximum borrowing capacity | € | € 4,000,000 | ||||
United States of America, Dollars | Revolving Credit Facility [Member] | Netherlands [Member] | |||||
Short-Term Revolving Lines of Credit | |||||
Maximum borrowing capacity | 4,928,000 | ||||
United States of America, Dollars | Revolving Credit Facility [Member] | India [Member] | |||||
Short-Term Revolving Lines of Credit | |||||
Maximum borrowing capacity | 1,230,000 | ||||
United States of America, Dollars | Revolving Credit Facility [Member] | Australia [Member] | |||||
Short-Term Revolving Lines of Credit | |||||
Maximum borrowing capacity | $ 177,000 | ||||
India, Rupees | Revolving Credit Facility [Member] | India [Member] | |||||
Short-Term Revolving Lines of Credit | |||||
Maximum borrowing capacity | ₨ | ₨ 80,000,000 | ||||
Australia, Dollars | Revolving Credit Facility [Member] | Australia [Member] | |||||
Short-Term Revolving Lines of Credit | |||||
Maximum borrowing capacity | $ 230,000 |
Long-Term Debt (Details)
Long-Term Debt (Details) | Dec. 31, 2020 | Oct. 30, 2017USD ($) | Mar. 31, 2018USD ($) | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Mar. 31, 2019 | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Apr. 01, 2018 |
Debt Instrument [Line Items] | |||||||||||
Less current portion | $ (2,500,000) | $ (2,500,000) | $ (20,250,000) | ||||||||
Long-term debt, noncurrent | 214,533,000 | $ 214,533,000 | 60,226,000 | ||||||||
Debt instrument, maturity date | Apr. 30, 2019 | ||||||||||
Debt issuance costs, net | $ 7,967,000 | $ 7,967,000 | 524,000 | ||||||||
Repayments of Long-term Debt | $ 116,000,000 | 13,500,000 | $ 13,500,000 | ||||||||
Debt Instrument, Debt Covenant, Maximum Leverage Ratio to Secure Additional Borrowing | 4 | ||||||||||
Revolving Credit Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate at period end (as a percent) | 5.41% | 5.41% | |||||||||
Capacity available under credit facility | $ 55,384,000 | $ 55,384,000 | |||||||||
Outstanding borrowings | 0 | 0 | |||||||||
Loans Payable [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term debt | 217,033,000 | 217,033,000 | 80,476,000 | ||||||||
Period One [Member] | Loans Payable [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Repayments of Notes Payable | 625,000 | ||||||||||
Period Three [Member] | Loans Payable [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Repayments of Notes Payable | 25,000,000 | ||||||||||
Revolving Credit Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Outstanding borrowings | $ 0 | $ 0 | $ 0 | ||||||||
Revolving Credit Facility [Member] | Line of Credit [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, face amount | $ 60,000,000 | ||||||||||
Repayments of Lines of Credit | $ 6,000,000 | ||||||||||
Line of Credit Facility, Commitment Fee Percentage | 0.50% | ||||||||||
Debt Instrument, Debt Covenant, Coverage Ratio | 1.25 | ||||||||||
Variable Rate Senior Secured Term Loan B [Member] | Secured Debt [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, face amount | $ 250,000,000 | ||||||||||
Debt Instrument, Variable Interest Rate Floor | 1.00% | ||||||||||
Debt Instrument, Prepayment Premium | 1.00% | ||||||||||
Line of Credit Facility, Additional Borrowing Capacity | $ 30,000,000 | ||||||||||
Term Loan A due April 2019 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Repayments of Long-term Debt | 70,875,000 | ||||||||||
Thermon Heating Systems Inc. | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Proceeds Used as Consideration For Business Acquisition | $ 164,900,000 | ||||||||||
Scenario, Forecast [Member] | Revolving Credit Facility [Member] | Line of Credit [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maximum leverage ratio | 3.75 | 4.5 | 5 | 5.5 | |||||||
Scenario, Forecast [Member] | Variable Rate Senior Secured Term Loan B [Member] | Secured Debt [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Quarterly Amortization, Percent | 0.25% | ||||||||||
Debt Instrument, Debt Covenant, Repayment requirement, Percentage of Excess Cash Flow | 50.00% | ||||||||||
Debt Instrument, Debt Covenant, Reduced Repayment Requirement, Percentage of Excess Cash Flow | 25.00% | ||||||||||
Debt Instrument, Debt Covenant, Maximum Leverage Ratio Requirement For Reduced Repayment | 4 | ||||||||||
Debt Instrument, Debt Covenant, Minimum Leverage Ratio Requirement For Reduced Repayment | 3.5 | ||||||||||
Debt Instrument, Debt Covenant, Minimum Repayment Requirement, Percentage of Excess Cash Flow | 0.00% | ||||||||||
Debt Instrument, Debt Covenant, Maximum Leverage Ratio Requirement For Minimum Repayment | 3.5 | ||||||||||
Subsidiary Equity [Member] | Variable Rate Senior Secured Term Loan B [Member] | Secured Debt [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Guarantor Obligations, Liquidation Proceeds, Percentage | 100.00% | ||||||||||
Stock of First Tier Material Foreign Subsidiaries, Domestic Borrower, and Domestic Subsidiary [Member] | Variable Rate Senior Secured Term Loan B [Member] | Secured Debt [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Guarantor Obligations, Liquidation Proceeds, Percentage | 65.00% |
Long Term Debt Maturities (Deta
Long Term Debt Maturities (Details) $ in Thousands | Mar. 31, 2018USD ($) |
Debt Disclosure [Abstract] | |
2,019 | $ 2,500 |
2,020 | 2,500 |
2,021 | 2,500 |
2,022 | 2,500 |
2,023 | 2,500 |
2,024 | 2,500 |
2,025 | 210,000 |
Long-term Debt | $ 225,000 |
Related-Party Transactions (Det
Related-Party Transactions (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2017 | Apr. 01, 2015 | |
SUMAC Former Principal [Member] | Principal Owner [Member] | ||
Related Party Transaction [Line Items] | ||
Ownership percentage by noncontrolling owners | 25.00% | |
Performance Based Notes | ||
Related Party Transaction [Line Items] | ||
Repayments of debt | $ 5,805 | |
Performance Based Notes | SUMAC Former Principal [Member] | ||
Related Party Transaction [Line Items] | ||
Repayments of debt | $ 5,805,000 | |
Sumac | ||
Related Party Transaction [Line Items] | ||
Debt instrument, face amount | $ 5,905,000 | |
Sumac | SUMAC Former Principal [Member] | ||
Related Party Transaction [Line Items] | ||
Debt instrument, face amount | $ 5,905,000 |
Employee Benefits - (Details)
Employee Benefits - (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Annual vesting percentage | 100.00% | ||
Employer matching contribution, percent | 50.00% | ||
Maximum annual contribution per employee, percent | 6.00% | ||
Employer discretionary contribution, amount | $ 2,119 | $ 1,634 | $ 1,684 |
Incentive compensation paid | 6,656 | 2,324 | 2,133 |
Thermon Europe B.V. [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Postretirement healthcare obligation, net | 2,185 | 1,611 | |
Postretirement Health Care Costs | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Postemployment benefits expense | $ 417 | $ 289 | $ 295 |
Commitments and Contingencies69
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Commitments and Contingencies | |||
Totaled arrangements under letter of credit guarantees and performance bonds securing performance obligations | $ 20,392 | ||
Guarantee obligations secured by cash deposits | 2,448 | ||
Guarantee obligations represented by a reduction of the available amount of the company's short term and long term revolving lines of credit | 4,616 | ||
Cash deposits pledged as collateral on performance bonds and letters of credit | 2,448 | $ 1,450 | |
Lease expense | 3,738 | 3,441 | $ 3,200 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2,019 | 3,152 | ||
2,020 | 2,434 | ||
2,021 | 1,788 | ||
2,022 | 1,531 | ||
2,023 | 1,187 | ||
Thereafter | 1,854 | ||
Operating Leases, Future Minimum Payments Due | 11,946 | ||
Service fee expense | 3,439 | 3,095 | 1,865 |
Purchase Obligation, Fiscal Year Maturity [Abstract] | |||
2,019 | 902 | ||
2,020 | 59 | ||
2,021 | 28 | ||
2,022 | 21 | ||
Purchase Obligation | 1,010 | ||
Changes in the product liability | |||
Balance at beginning of period | 300 | 460 | 429 |
Provision for warranties issued | 281 | 143 | 490 |
Settlements | (281) | (303) | (459) |
Balance at end of period | $ 300 | $ 300 | $ 460 |
Stock-Based Compensation Expe70
Stock-Based Compensation Expense (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | Jul. 28, 2010 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Benefit (loss) from excess tax deduction from option exercises | $ 0 | $ (448) | $ 92 | ||
Adjustment to Additional Paid in Capital, Income Tax Effect from Share-based Compensation, Net | (481) | (1,069) | 92 | ||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 3,519 | 3,402 | $ 3,749 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||||
Exercised (in shares) | (69,704) | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||||
Exercised, weighted average exercise price (in dollars per share) | $ 21.97 | ||||
Stock compensation expense | $ 3,519 | 3,402 | $ 3,749 | ||
Total fair value of options issued | 385 | ||||
Target number of shares (in shares) | 15,438 | ||||
Restricted Stock and Stock Option Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum number of shares of the company's common stock that may be awarded | 2,767,171 | ||||
2011 Long-term Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum number of shares of the company's common stock that may be awarded | 2,893,341 | ||||
Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Intrinsic value of stock options exercised | $ 648 | $ 627 | $ 384 | ||
Vesting period (in years) | 5 years | ||||
Annual vesting percentage | 20.00% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||||
Options outstanding, beginning of period (in shares) | 411,939 | 433,726 | 465,042 | ||
Exercised (in shares) | (42,956) | (47,484) | (29,056) | ||
Forfeited (in shares) | (1,412) | (2,802) | (2,260) | ||
Options outstanding, end of period (in shares) | 367,571 | 411,939 | 433,726 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||||
Options outstanding, weighted average exercise price (in dollars per share) | $ 9.12 | $ 8.94 | $ 8.07 | $ 8.12 | |
Granted, weighted average exercise price (in dollars per share) | 19.64 | ||||
Exercised, weighted average exercise price (in dollars per share) | 7 | 6.77 | 8.25 | ||
Forfeited, weighted average exercise price (in dollars per share) | 19.83 | $ 19.58 | $ 17.10 | ||
Granted (in shares) | 28,499 | ||||
Closing price (in dollars per share) | $ 22.41 | ||||
Total unrecognized expense related to non-vested stock option awards | $ 117 | ||||
Stock based compensation, recognition period | 1 year 9 months 4 days | ||||
Stock Options [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||||
Expiration term | 10 years | ||||
Common Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||||
Total fair value of options issued | $ 411 | ||||
Performance Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||||
Forfeited (in shares) | 0 | 0 | (8,669,000) | ||
Vested shares | 0 | 0 | 31,658,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||||
Total unrecognized expense related to non-vested stock option awards | $ 1,231 | ||||
Stock based compensation, recognition period | 2 years 2 months 19 days | ||||
Total fair value of options issued | $ 1,420 | $ 881 | $ 1,113 | ||
Amortization Period For The Fair Value Share Based Compsensation Award (in years) | 3 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 50,799 | ||||
Adjusted EBITDA Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||||
Target number of shares (in shares) | 58,246 | ||||
Common Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||||
Exercised (in shares) | (42,636) | (43,121) | (29,056) |
Stock-Based Compensation Expe71
Stock-Based Compensation Expense Stock-Based Compensation Expense - Unvested Shares (Details) - $ / shares | 12 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||||
Exercised, weighted average exercise price (in dollars per share) | $ 21.97 | |||
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Options outstanding, beginning of period (in shares) | 411,939 | 433,726 | 465,042 | |
Granted (in shares) | 28,499 | |||
Forfeited (in shares) | (1,412) | (2,802) | (2,260) | |
Options outstanding, end of period (in shares) | 367,571 | 411,939 | 433,726 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||||
Options outstanding, weighted average exercise price (in dollars per share) | $ 9.12 | $ 8.94 | $ 8.07 | $ 8.12 |
Granted, weighted average exercise price (in dollars per share) | 19.64 | |||
Exercised, weighted average exercise price (in dollars per share) | 7 | 6.77 | 8.25 | |
Forfeited, weighted average exercise price (in dollars per share) | $ 19.83 | $ 19.58 | $ 17.10 | |
Unvested [Member] | Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Options outstanding, beginning of period (in shares) | 37,829 | 40,810 | 73,449 | |
Granted (in shares) | 28,499 | |||
Vested (in shares) | (17,417) | (28,678) | (30,379) | |
Forfeited (in shares) | (1,412) | (2,802) | (2,260) | |
Options outstanding, end of period (in shares) | 19,000 | 37,829 | 40,810 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||||
Options outstanding, weighted average exercise price (in dollars per share) | $ 5.89 | $ 8.86 | $ 7.39 | $ 7.19 |
Granted, weighted average exercise price (in dollars per share) | 19.64 | |||
Vested, weighted average exercise price (in dollars per share) | 6.93 | 6.93 | 6.93 | |
Forfeited, weighted average exercise price (in dollars per share) | $ 19.83 | $ 7.53 | $ 7.53 |
Stock-Based Compensation Expe72
Stock-Based Compensation Expense - Stock Options Outstanding, Exercisable and Intrinsic Value (Details) - Stock Options [Member] - USD ($) | 12 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | $ 648,000 | $ 627,000 | $ 384,000 | |
Options outstanding (in shares) | 367,571 | 411,939 | 433,726 | 465,042 |
$5.20 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price | $ 5.20 | |||
Options outstanding (in shares) | 238,863 | |||
Options outstanding, weighted average contractual life (in years) | 2 years 6 months 18 days | |||
Options outstanding, weighted average exercise price (in dollars per share) | $ 5.20 | |||
Options outstanding, aggregate intrinsic value | $ 4,110,832 | |||
Options vested and exercisable, number exercisable (in shares) | 238,863 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 2 years 6 months 18 days | |||
Options vested and exercisable, weighted average exercise price (in dollars per share) | 5.20 | |||
Options vested and exercisable, aggregate intrinsic value | $ 4,110,832 | |||
$9.82 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price | 9.82 | |||
Options outstanding (in shares) | 13,339 | |||
Options outstanding, weighted average contractual life (in years) | 2 years 10 months 28 days | |||
Options outstanding, weighted average exercise price (in dollars per share) | $ 9.82 | |||
Options outstanding, aggregate intrinsic value | $ 167,938 | |||
Options vested and exercisable, number exercisable (in shares) | 13,339 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 2 years 10 months 28 days | |||
Options vested and exercisable, weighted average exercise price (in dollars per share) | 9.82 | |||
Options vested and exercisable, aggregate intrinsic value | $ 167,938 | |||
$12.00 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price | 12 | |||
Options outstanding (in shares) | 47,250 | |||
Options outstanding, weighted average contractual life (in years) | 3 years 1 month 2 days | |||
Options outstanding, weighted average exercise price (in dollars per share) | $ 12 | |||
Options outstanding, aggregate intrinsic value | $ 491,248 | |||
Options vested and exercisable, number exercisable (in shares) | 47,250 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 3 years 1 month 2 days | |||
Options vested and exercisable, weighted average exercise price (in dollars per share) | 12 | |||
Options vested and exercisable, aggregate intrinsic value | $ 491,248 | |||
$ 19.64 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price | 19.64 | |||
Options outstanding (in shares) | 28,499 | |||
Options outstanding, weighted average contractual life (in years) | 8 years 9 months 4 days | |||
Options outstanding, weighted average exercise price (in dollars per share) | $ 19.64 | |||
Options outstanding, aggregate intrinsic value | $ 78,942 | |||
Options vested and exercisable, number exercisable (in shares) | 9,499 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 8 years 9 months 4 days | |||
Options vested and exercisable, weighted average exercise price (in dollars per share) | 19.64 | |||
Options vested and exercisable, aggregate intrinsic value | $ 26,312 | |||
$21.52 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price | $ 21.52 | |||
Options outstanding (in shares) | 39,620 | |||
Options outstanding, weighted average contractual life (in years) | 4 years 4 months 2 days | |||
Options outstanding, weighted average exercise price (in dollars per share) | $ 21.52 | |||
Options outstanding, aggregate intrinsic value | $ 35,532 | |||
Options vested and exercisable, number exercisable (in shares) | 39,620 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 4 years 4 months 2 days | |||
Options vested and exercisable, weighted average exercise price (in dollars per share) | 21.52 | |||
Options vested and exercisable, aggregate intrinsic value | $ 35,532 | |||
$5.20 - $21.52 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options outstanding (in shares) | 367,571 | |||
Options outstanding, weighted average contractual life (in years) | 3 years 3 months 22 days | |||
Options outstanding, weighted average exercise price (in dollars per share) | $ 9.12 | |||
Options outstanding, aggregate intrinsic value | $ 4,884,492 | |||
Options vested and exercisable, number exercisable (in shares) | 348,571 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 3 years 3 months 22 days | |||
Options vested and exercisable, weighted average exercise price (in dollars per share) | 8.55 | |||
Options vested and exercisable, aggregate intrinsic value | $ 4,831,862 |
Stock-Based Compensation Expe73
Stock-Based Compensation Expense - Restricted Shares (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Issuance of restricted stock as deferred compensation to employees and directors | 19,824 | ||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period, Value | $ 385 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Exercised (in shares) | (69,704) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Exercised, weighted average exercise price (in dollars per share) | $ 21.97 | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate intrinsic value | $ 5,134 | ||
Total unrecognized expense related to non-vested stock option awards | $ 2,841 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding, beginning of period (in shares) | 208,146 | 192,221 | 198,822 |
Granted (in shares) | 119,302 | 135,855 | 98,009 |
Exercised (in shares) | (88,084) | (111,611) | |
Forfeited (in shares) | (10,252) | (8,319) | (34,906) |
Outstanding, end of period (in shares) | 229,112 | 208,146 | 192,221 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Options outstanding, weighted average grant price, beginning of period (in dollars per share) | $ 20.64 | $ 23.36 | $ 22.38 |
Granted, weighted average exercise price (in dollars per share) | 19.16 | 18.65 | 24.08 |
Exercised, weighted average exercise price (in dollars per share) | 21.51 | 22.74 | |
Forfeited, weighted average exercise price (in dollars per share) | 20.05 | 21.25 | 22.53 |
Options outstanding, weighted average grant price, end of period (in dollars per share) | $ 19.55 | $ 20.64 | $ 23.36 |
Stock based compensation, recognition period | 1 year 7 months 24 days | ||
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period, Value | $ 1,420 | $ 881 | $ 1,113 |
Total unrecognized expense related to non-vested stock option awards | $ 1,231 | ||
Vested shares | 0 | 0 | 31,658,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Granted (in shares) | 0 | 0 | 22,989,000 |
Forfeited (in shares) | 0 | 0 | (8,669,000) |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Stock based compensation, recognition period | 2 years 2 months 19 days | ||
Minimum [Member] | Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share Based Compensation Arrangement, Possible Number Of Shares Issued Each Year | 0 | 0 | |
Maximum [Member] | Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share Based Compensation Arrangement, Possible Number Of Shares Issued Each Year | 147,368,000 | 94,972,000 | |
Common Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Issuance of restricted stock as deferred compensation to employees and directors | 20,216 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Exercised (in shares) | (42,636) | (43,121) | (29,056) |
Stock-Based Compensation Expe74
Stock-Based Compensation Expense - Performance Stock Units Outstanding (Details) - Performance Shares [Member] - shares shares in Thousands | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Target | 73,684 | 47,486 |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Possible number of shares issued each year | 0 | 0 |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Possible number of shares issued each year | 147,368 | 94,972 |
Stock-Based Compensation Expe75
Stock-Based Compensation Expense - Awards Earned and Released (Details) - Performance Shares [Member] - shares shares in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares Earned | 0 | 0 | 31,658 |
Number of Shares Withheld for Tax Obligation | 0 | 0 | 8,669 |
Number of Shares Released | 0 | 0 | 22,989 |
Other Expense (Details)
Other Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Foreign Currency Transaction Gain (Loss), before Tax | $ (5,629) | $ (176) | $ (139) |
Other | 130 | 219 | (126) |
Other Nonoperating Expense | (5,595) | (410) | (676) |
Foreign Exchange Forward Contracts [Member] | |||
Loss on foreign exchange forwards | $ (96) | $ (453) | $ (411) |
Income Taxes - Income Taxes in
Income Taxes - Income Taxes in Consolidated Income Statement (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Current Provision [Abstract] | |||
Federal provision | $ 3,937 | $ 1,588 | $ 4,185 |
Foreign provision | 12,768 | 6,341 | 8,503 |
State provision | 301 | 155 | 311 |
Deferred Provision [Abstract] | |||
Federal deferred benefit | (8,506) | (1,907) | (1,964) |
Foreign deferred benefit | (3,178) | (2,025) | (2,263) |
State deferred benefit | (152) | (54) | (56) |
Total provision for income taxes | $ 5,170 | $ 4,098 | $ 8,716 |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Components of Deferred Tax Assets [Abstract] | ||
Accrued liabilities and reserves | $ 1,987 | $ 1,617 |
Stock option compensation | 821 | 932 |
Foreign deferred benefits | 3,575 | 2,340 |
Net operating loss carry-forward | 1,688 | 1,250 |
Inventories | 371 | 440 |
Capitalized transaction costs | 207 | 390 |
Interest rate swap included in Other Comprehensive Loss | 0 | 18 |
Foreign tax credit carry forward | 104 | 65 |
Valuation allowance | (878) | (659) |
Total deferred tax assets | 7,875 | 6,393 |
Components of Deferred Tax Liabilities [Abstract] | ||
Intangible assets | (9,498) | (17,952) |
Intangible assets - foreign | (25,674) | (7,452) |
Property, plant and equipment | (2,522) | (3,637) |
Prepaid expenses | (104) | (161) |
Unrealized loss on hedge | (45) | (19) |
Undistributed foreign earnings | (859) | (10) |
Total deferred tax liabilities | (38,702) | (29,231) |
Net deferred tax asset (liability) | $ (30,827) | $ (22,838) |
Income Taxes - Income (Loss) Fr
Income Taxes - Income (Loss) From Continuing Operations Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Components of Income (Loss) From Continuing Operations Before Income Taxes [Line Items] | |||
U.S. | $ (13,568) | $ (83) | $ 13,043 |
Non-U.S. | 33,501 | 21,698 | 19,304 |
Income before provision for income taxes | 18,389 | 19,082 | 32,366 |
Scenario, Previously Reported [Member] | |||
Components of Income (Loss) From Continuing Operations Before Income Taxes [Line Items] | |||
Non-U.S. | $ 31,957 | $ 19,165 | $ 19,323 |
Income Taxes - Income Tax Recon
Income Taxes - Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Notional U.S. federal income tax expense at statutory rate | $ 5,792 | $ 6,679 | $ 11,328 |
Transition tax for United States tax reform | 5,125 | ||
U.S. state income tax provision, net | 111 | 45 | 150 |
Undistributed foreign earnings | 1,786 | 0 | 0 |
Rate difference-international subsidiaries | (1,769) | (2,622) | (1,727) |
Charges/(benefits) related to uncertain tax positions | (533) | (128) | (1,227) |
Impact on deferred tax liability for statutory rate change | (5,849) | 0 | 455 |
Non-deductible charges | 758 | 296 | 51 |
Foreign purchase price adjustment | 0 | (379) | 0 |
Change in valuation allowance | 219 | 490 | 0 |
Other, net | (470) | (283) | (314) |
Total provision for income taxes | $ 5,170 | $ 4,098 | $ 8,716 |
Income Taxes - Discrete Tax Act
Income Taxes - Discrete Tax Act Items (Details) $ in Thousands | 12 Months Ended |
Mar. 31, 2018USD ($) | |
Income Tax Disclosure [Abstract] | |
Transition Tax (provisional) | $ 5,126 |
Net impact on U.S. deferred tax assets and liabilities (provisional) | (6,030) |
Net changes in deferred tax liability associated with anticipated repatriation taxes (provisional) | 1,704 |
Net discrete impacts of the enactment of the Tax Act | $ 800 |
Income Taxes Income Taxes - Nar
Income Taxes Income Taxes - Narrative (Details) $ in Thousands | 12 Months Ended |
Mar. 31, 2018USD ($) | |
Income Tax Disclosure [Abstract] | |
Estimated transition tax liability | $ 5,126 |
Tax Act impact on U.S. deferred tax assets and liabilities (provisional) | 6,030 |
Foreign tax net operating loss carry-forwards | 5,731 |
Foreign tax net operating loss carry-forwards, potentially carried forward indefinitely | $ 4,024 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Reserve for uncertain income taxes, beginning of period | $ 533 | $ 661 |
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | (533) | (176) |
Interest and penalties on prior reserves | 0 | 48 |
Reserve for uncertain income taxes, end of period | $ 0 | $ 533 |
Segment Information (Details)
Segment Information (Details) | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2018USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2018USD ($)segment | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Apr. 01, 2015USD ($) | |
Sales by geographic area: | ||||||||||||
Number of reportable segments | segment | 4 | |||||||||||
Revenues | $ 308,609,000 | $ 264,130,000 | $ 281,928,000 | |||||||||
Depreciation Expense | 7,962,000 | 6,060,000 | 4,655,000 | |||||||||
Amortization of intangible assets | 16,458,000 | 11,772,000 | 12,112,000 | |||||||||
Operating income (loss) | $ 13,553,000 | $ 10,210,000 | $ 7,417,000 | $ 1,558,000 | $ 5,280,000 | $ 7,299,000 | $ 5,675,000 | $ 4,190,000 | 32,738,000 | 22,444,000 | 36,761,000 | |
Stock compensation | (3,519,000) | (3,402,000) | (3,749,000) | |||||||||
Property, plant and equipment, net | 74,485,000 | 74,485,000 | 43,266,000 | |||||||||
Assets | 662,477,000 | 662,477,000 | 454,080,000 | |||||||||
Goodwill impaired | 0 | 1,240,000 | 0 | |||||||||
Non-current deferred tax assets | 7,875,000 | 7,875,000 | 6,393,000 | |||||||||
Operating Segments | ||||||||||||
Sales by geographic area: | ||||||||||||
Revenues | 308,609,000 | 264,130,000 | 281,928,000 | |||||||||
Intersegment Eliminations | ||||||||||||
Sales by geographic area: | ||||||||||||
Revenues | 60,731,000 | 52,563,000 | 57,495,000 | |||||||||
Segment Reconciling Items | ||||||||||||
Sales by geographic area: | ||||||||||||
Public company costs | 1,378,000 | 1,160,000 | 1,526,000 | |||||||||
Stock compensation | 3,519,000 | 3,402,000 | 3,749,000 | |||||||||
United States Segment | ||||||||||||
Sales by geographic area: | ||||||||||||
Depreciation Expense | 4,326,000 | 3,632,000 | 3,117,000 | |||||||||
Amortization of intangible assets | 6,018,000 | 5,860,000 | 6,080,000 | |||||||||
Operating income (loss) | 484,000 | 5,359,000 | 20,607,000 | |||||||||
Property, plant and equipment, net | 37,112,000 | 37,112,000 | 34,563,000 | |||||||||
Assets | 213,099,000 | 213,099,000 | 186,300,000 | |||||||||
Non-current deferred tax assets | 3,490,000 | 3,490,000 | 4,053,000 | |||||||||
United States Segment | Operating Segments | ||||||||||||
Sales by geographic area: | ||||||||||||
Revenues | 114,548,000 | 119,791,000 | 126,033,000 | |||||||||
United States Segment | Intersegment Eliminations | ||||||||||||
Sales by geographic area: | ||||||||||||
Revenues | 50,155,000 | 45,966,000 | 50,807,000 | |||||||||
Canada | ||||||||||||
Sales by geographic area: | ||||||||||||
Depreciation Expense | 3,019,000 | 1,933,000 | 1,071,000 | |||||||||
Amortization of intangible assets | 7,979,000 | 3,538,000 | 3,543,000 | |||||||||
Operating income (loss) | 26,198,000 | 8,040,000 | 7,302,000 | |||||||||
Property, plant and equipment, net | 33,076,000 | 33,076,000 | 4,674,000 | |||||||||
Assets | 317,635,000 | 317,635,000 | 136,688,000 | |||||||||
Canada | Operating Segments | ||||||||||||
Sales by geographic area: | ||||||||||||
Revenues | 94,427,000 | 41,721,000 | 56,925,000 | |||||||||
Canada | Intersegment Eliminations | ||||||||||||
Sales by geographic area: | ||||||||||||
Revenues | 7,294,000 | 3,610,000 | 3,886,000 | |||||||||
Europe Segment | ||||||||||||
Sales by geographic area: | ||||||||||||
Depreciation Expense | 476,000 | 301,000 | 296,000 | |||||||||
Amortization of intangible assets | 1,398,000 | 1,310,000 | 1,426,000 | |||||||||
Operating income (loss) | 6,842,000 | 9,095,000 | 8,586,000 | |||||||||
Property, plant and equipment, net | 3,567,000 | 3,567,000 | 3,532,000 | |||||||||
Assets | 89,379,000 | 89,379,000 | 80,589,000 | |||||||||
Goodwill impaired | 1,713,000 | |||||||||||
Europe Segment | Operating Segments | ||||||||||||
Sales by geographic area: | ||||||||||||
Revenues | 68,352,000 | 71,133,000 | 65,370,000 | |||||||||
Europe Segment | Intersegment Eliminations | ||||||||||||
Sales by geographic area: | ||||||||||||
Revenues | 1,614,000 | 1,580,000 | 2,367,000 | |||||||||
Asia Segment | ||||||||||||
Sales by geographic area: | ||||||||||||
Depreciation Expense | 141,000 | 194,000 | 171,000 | |||||||||
Amortization of intangible assets | 1,063,000 | 1,064,000 | 1,063,000 | |||||||||
Operating income (loss) | 4,111,000 | 4,512,000 | 5,541,000 | |||||||||
Property, plant and equipment, net | 730,000 | 730,000 | 497,000 | |||||||||
Assets | $ 42,364,000 | 42,364,000 | 50,503,000 | |||||||||
Asia Segment | Operating Segments | ||||||||||||
Sales by geographic area: | ||||||||||||
Revenues | 31,282,000 | 31,485,000 | 33,600,000 | |||||||||
Asia Segment | Intersegment Eliminations | ||||||||||||
Sales by geographic area: | ||||||||||||
Revenues | $ 1,668,000 | 1,407,000 | $ 435,000 | |||||||||
Sumac | ||||||||||||
Sales by geographic area: | ||||||||||||
Revenue as a percentage of sales and operating income (percent) | 10.00% | 10.00% | ||||||||||
Sumac | ||||||||||||
Sales by geographic area: | ||||||||||||
Debt instrument, face amount | $ 5,905,000 | |||||||||||
Sumac | Canada | ||||||||||||
Sales by geographic area: | ||||||||||||
Compensation expense | 5,706,000 | |||||||||||
Debt instrument, face amount | $ 5,905,000 |
Quarterly Results (Unaudited)85
Quarterly Results (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2018 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 102,582 | $ 92,660 | $ 61,631 | $ 51,736 | $ 67,582 | $ 64,340 | $ 68,812 | $ 63,396 | |||
Gross Profit | 46,823 | 42,214 | 30,960 | 23,814 | 28,274 | 28,619 | 28,924 | 26,114 | $ 143,811 | $ 111,931 | $ 131,315 |
Operating income (loss) | 13,553 | 10,210 | 7,417 | 1,558 | 5,280 | 7,299 | 5,675 | 4,190 | $ 32,738 | $ 22,444 | $ 36,761 |
Net income (loss) | $ 6,057 | $ 599 | $ 4,778 | $ 479 | $ 3,251 | $ 5,358 | $ 3,506 | $ 2,526 | |||
Earnings Per Share, Basic and Diluted [Abstract] | |||||||||||
Basic (in dollars per share) | $ 0.19 | $ 0.02 | $ 0.15 | $ 0.01 | $ 0.15 | $ 0.17 | $ 0.11 | $ 0.08 | $ 0.37 | $ 0.45 | $ 0.72 |
Diluted (in dollars per share) | $ 0.18 | $ 0.02 | $ 0.15 | $ 0.01 | $ 0.15 | $ 0.16 | $ 0.11 | $ 0.08 | $ 0.36 | $ 0.45 | $ 0.71 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Apr. 02, 2018 | Mar. 31, 2018 |
Sumac Business [Member] | ||
Subsequent Event [Line Items] | ||
Equity method investment, ownership percentage | 12.50% | |
Scenario, Forecast [Member] | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Payments for repurchase of equity | $ 6,000,000 | |
Ownership percentage by noncontrolling owners | 12.50% |