Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021 | May 14, 2021 | Sep. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Mar. 31, 2021 | ||
Current Fiscal Year End Date | --03-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-37873 | ||
Entity Registrant Name | e.l.f. Beauty, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 46-4464131 | ||
Entity Address, Address Line One | 570 10th Street | ||
Entity Address, City or Town | Oakland, | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94607 | ||
City Area Code | (510) | ||
Local Phone Number | 778-7787 | ||
Title of 12(b) Security | Common Stock, $0.01 par value | ||
Trading Symbol | ELF | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 841.2 | ||
Entity Common Stock, Shares Outstanding | 51,649,915 | ||
Documents Incorporated by Reference | Portions of the registrant’s Definitive Proxy Statement relating to the registrant’s 2021 annual meeting of stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K. Such Definitive Proxy Statement will be filed with the Securities and Exchange Commission within 120 days of the registrant's fiscal year ended March 31, 2021. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001600033 | ||
Entity Filer Category | Large Accelerated Filer |
Consolidated balance sheets
Consolidated balance sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 57,768 | $ 46,167 |
Accounts receivable, net | 40,185 | 29,721 |
Inventory, net | 56,810 | 46,209 |
Prepaid expenses and other current assets | 15,381 | 10,263 |
Total current assets | 170,144 | 132,360 |
Property and equipment, net | 13,770 | 17,171 |
Intangible assets, net | 94,286 | 102,410 |
Goodwill | 171,620 | 171,321 |
Investments | 2,875 | 2,875 |
Other assets | 34,698 | 26,967 |
Total assets | 487,393 | 453,104 |
Current liabilities: | ||
Current portion of long-term debt and finance lease obligations | 16,281 | 12,568 |
Accounts payable | 15,699 | 12,390 |
Accrued expenses and other current liabilities | 41,351 | 26,165 |
Total current liabilities | 73,331 | 51,123 |
Liabilities, Noncurrent [Abstract] | ||
Long-term debt and finance lease obligations | 110,255 | 126,088 |
Deferred tax liabilities | 13,479 | 21,892 |
Long-term operating lease obligations | 20,084 | 11,239 |
Other long-term liabilities | 598 | 591 |
Total liabilities | 217,747 | 210,933 |
Commitments and contingencies (Note 11) | ||
Stockholders' equity: | ||
Common stock, par value of $0.01 per share; 250,000,000 shares authorized as of March 31, 2021 and March 31, 2020; 51,590,830 and 50,003,531 shares issued and outstanding as of March 31, 2021 and March 31, 2020, respectively | 504 | 489 |
Additional paid-in capital | 774,441 | 753,213 |
Accumulated deficit | (505,299) | (511,531) |
Total stockholders' equity | 269,646 | 242,171 |
Total liabilities and stockholders' equity | $ 487,393 | $ 453,104 |
Consolidated balance sheets (Pa
Consolidated balance sheets (Parenthetical) - $ / shares | Mar. 31, 2021 | Mar. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock, shares issued (in shares) | 51,590,830 | 50,003,531 |
Common stock, shares outstanding (in shares) | 51,590,830 | 50,003,531 |
Consolidated statements of oper
Consolidated statements of operations and comprehensive income (loss) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||
Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2018 | |
Income Statement [Abstract] | ||||||||||||||||
Net sales | $ 92,671 | $ 88,562 | $ 72,350 | $ 64,527 | $ 74,712 | $ 80,760 | $ 67,615 | $ 59,764 | $ 66,141 | $ 78,571 | $ 63,889 | $ 59,055 | $ 65,920 | $ 318,110 | $ 282,851 | $ 267,435 |
Cost of sales | 25,650 | 25,712 | 111,912 | 101,728 | 104,694 | |||||||||||
Gross profit | 58,600 | 57,119 | 47,138 | 43,341 | 48,064 | 52,520 | 43,348 | 37,191 | 40,491 | 46,919 | 38,969 | 36,645 | 40,208 | 206,198 | 181,123 | 162,741 |
Selling, general, and administrative expenses | 37,324 | 36,234 | 194,157 | 157,155 | 136,579 | |||||||||||
Restructuring expense (income) | 22,176 | 0 | 2,641 | (5,982) | 0 | |||||||||||
Operating income (loss) | (19,009) | 3,974 | 9,400 | 29,950 | 26,162 | |||||||||||
Other (expense) income, net | (315) | (888) | (1,620) | 426 | (390) | |||||||||||
Interest expense, net | (1,849) | (1,963) | (4,090) | (6,307) | (7,816) | |||||||||||
Income (loss) before provision for income taxes | (21,173) | 1,123 | 3,690 | 24,069 | 17,956 | |||||||||||
Income tax benefit (provision) | 3,259 | (433) | 2,542 | (6,185) | (2,431) | |||||||||||
Net income (loss) | $ (24) | $ 4,297 | $ 447 | $ 1,512 | $ (341) | $ 8,002 | $ 6,517 | $ 3,706 | (17,914) | $ 9,672 | $ 3,915 | $ 1,248 | 690 | 6,232 | 17,884 | 15,525 |
Comprehensive income (loss) | $ (17,914) | $ 690 | $ 6,232 | $ 17,884 | $ 15,525 | |||||||||||
Net income (loss) per share: | ||||||||||||||||
Basic (in USD per share) | $ 0 | $ 0.09 | $ 0.01 | $ 0.03 | $ (0.01) | $ 0.16 | $ 0.13 | $ 0.08 | $ (0.37) | $ 0.20 | $ 0.08 | $ 0.03 | $ 0.01 | $ 0.13 | $ 0.37 | $ 0.33 |
Diluted (in USD per share) | $ 0 | $ 0.08 | $ 0.01 | $ 0.03 | $ (0.01) | $ 0.16 | $ 0.13 | $ 0.07 | $ (0.37) | $ 0.20 | $ 0.08 | $ 0.03 | $ 0.01 | $ 0.12 | $ 0.35 | $ 0.32 |
Weighted average shares outstanding: | ||||||||||||||||
Basic (in shares) | 48,022,926 | 46,435,560 | 49,377,410 | 48,498,813 | 46,828,798 | |||||||||||
Diluted (in shares) | 48,022,926 | 49,302,771 | 51,994,145 | 50,817,143 | 49,268,616 |
Consolidated statements of stoc
Consolidated statements of stockholders' equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common stock | Additional paid-in capital | Accumulated deficit |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Adoption of new accounting standard | $ 193,863 | $ (54) | $ 463 | $ 720,372 | $ (526,972) |
Beginning balance at Dec. 31, 2017 | 193,863 | (54) | $ 463 | 720,372 | (526,972) |
Beginning balance (in shares) at Dec. 31, 2017 | 46,315,630 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 15,525 | 15,525 | |||
Stock-based compensation | 16,821 | 16,821 | |||
Exercise of stock options and vesting of restricted stock | 3,176 | $ 15 | 3,161 | ||
Exercise of stock options and vesting of restricted stock (in shares) | 1,514,126 | ||||
Adoption of new accounting standard | 229,331 | $ (54) | $ 478 | 740,354 | (511,501) |
Ending balance at Dec. 31, 2018 | 229,331 | $ 478 | 740,354 | (511,501) | |
Ending balance (in shares) at Dec. 31, 2018 | 47,829,756 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Adoption of new accounting standard | 229,331 | $ 478 | 740,354 | (511,501) | |
Net income (loss) | (17,914) | (17,914) | |||
Stock-based compensation | 3,683 | 3,683 | |||
Exercise of stock options and vesting of restricted stock | 115 | $ 5 | 110 | ||
Exercise of stock options and vesting of restricted stock (in shares) | 458,964 | ||||
Adoption of new accounting standard | 215,215 | $ 483 | 744,147 | (529,415) | |
Ending balance at Mar. 31, 2019 | 215,215 | $ 483 | 744,147 | (529,415) | |
Ending balance (in shares) at Mar. 31, 2019 | 48,288,720 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Adoption of new accounting standard | 215,215 | $ 483 | 744,147 | (529,415) | |
Net income (loss) | 17,884 | 17,884 | |||
Stock-based compensation | 15,488 | 15,488 | |||
Exercise of stock options and vesting of restricted stock | 1,488 | $ 12 | 1,476 | ||
Exercise of stock options and vesting of restricted stock (in shares) | 1,150,490 | ||||
Adoption of new accounting standard | 242,171 | $ 489 | 753,213 | (511,531) | |
Repurchase of common stock | (7,904) | $ (6) | (7,898) | ||
Repurchase of common stock (in shares) | (564,468) | ||||
Ending balance at Mar. 31, 2020 | 242,171 | $ 489 | 753,213 | (511,531) | |
Ending balance (in shares) at Mar. 31, 2020 | 48,874,742 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Adoption of new accounting standard | 242,171 | $ 489 | 753,213 | (511,531) | |
Net income (loss) | 6,232 | 6,232 | |||
Stock-based compensation | 19,493 | 19,493 | |||
Exercise of stock options and vesting of restricted stock | 1,750 | $ 15 | 1,735 | ||
Exercise of stock options and vesting of restricted stock (in shares) | 1,525,768 | ||||
Adoption of new accounting standard | $ 242,171 | $ 504 | 774,441 | (505,299) | |
Repurchase of common stock (in shares) | 0 | ||||
Ending balance at Mar. 31, 2021 | $ 269,646 | $ 504 | 774,441 | (505,299) | |
Ending balance (in shares) at Mar. 31, 2021 | 50,400,510 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Adoption of new accounting standard | $ 269,646 | $ 504 | $ 774,441 | $ (505,299) |
Consolidated statements of cash
Consolidated statements of cash flows - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2018 | |
Cash flows from operating activities: | ||||
Net income (loss) | $ (17,914) | $ 6,232 | $ 17,884 | $ 15,525 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 7,544 | 25,179 | 22,843 | 17,861 |
Restructuring expense (income) | 22,176 | 2,641 | (5,982) | 0 |
Stock-based compensation expense | 3,683 | 19,682 | 15,488 | 16,821 |
Amortization of debt issuance costs and discount on debt | 190 | 847 | 747 | 792 |
Deferred income taxes | (3,433) | (8,584) | 2,443 | (939) |
Other, net | 242 | 383 | 873 | 476 |
Changes in operating assets and liabilities: | ||||
Accounts receivable | 4,215 | (10,529) | 2,504 | 7,649 |
Inventories | 2,561 | (10,937) | (435) | 16,338 |
Prepaid expenses and other assets | (1,732) | (9,659) | (6,500) | (8,484) |
Accounts payable and accrued expenses | (6,021) | 17,472 | 5,962 | (10,251) |
Other liabilities | (3,295) | (3,252) | (11,514) | (206) |
Net cash provided by operating activities | 8,216 | 29,475 | 44,313 | 55,582 |
Cash flows from investing activities: | ||||
Acquisition, net of cash acquired | 0 | 0 | (25,923) | 0 |
Purchase of property and equipment | (3,400) | (6,474) | (9,422) | (8,872) |
Net cash used in investing activities | (3,400) | (6,474) | (35,345) | (8,872) |
Cash flows from financing activities: | ||||
Proceeds from revolving line of credit | 0 | 20,000 | 0 | 2,000 |
Repayment of revolving line of credit | 0 | (20,000) | 0 | (2,000) |
Repayment of long-term debt | (2,063) | (11,756) | (9,488) | (8,250) |
Debt issuance costs paid | 0 | (334) | 0 | 0 |
Repurchase of common stock | 0 | 0 | (7,904) | 0 |
Cash received from issuance of common stock | 115 | 1,503 | 1,488 | 3,176 |
Other, net | (199) | (813) | (771) | (490) |
Net cash used in financing activities | (2,147) | (11,400) | (16,675) | (5,564) |
Net increase (decrease) in cash and cash equivalents | 2,669 | 11,601 | (7,707) | 41,146 |
Cash and cash equivalents - beginning of period | 51,205 | 46,167 | 53,874 | 10,059 |
Cash and cash equivalents - end of period | 53,874 | 57,768 | 46,167 | 51,205 |
Supplemental disclosure of cash flow information: | ||||
Cash paid for interest | 1,783 | 3,018 | 6,302 | 7,124 |
Cash paid for income taxes, net of refunds | 6 | 2,301 | 5,604 | 4,085 |
Cash paid for interest on finance leases | 50 | 137 | 179 | 0 |
Supplemental disclosure of noncash investing and financing activities: | ||||
Property and equipment acquired under finance leases | 0 | 0 | 0 | 2,098 |
Property and equipment purchases included in accounts payable and accrued expenses | $ 3,080 | $ 359 | $ 1,132 | $ 1,838 |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | Summary of significant accounting policies Basis of presentation and fiscal year end change During December 2018, the board of directors approved a change in fiscal year end from December 31 st to March 31 st . Accordingly, this document reflects the Company's fiscal year ended March 31, 2021, covering the period April 1, 2020 through March 31, 2021. All references to the periods ended March 31, 2021, March 31, 2020 and December 31, 2018 relate to the years ended March 31, 2021, March 31, 2020 and December 31, 2018, respectively. All references to the period ended March 2019 relate to the three-month transition period ended March 31, 2019. The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and all intercompany balances and transactions have been eliminated in consolidation. Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Cash and cash equivalents Cash and cash equivalents include all cash balances and highly liquid investments purchased with maturities of three months or less. Accounts receivable Trade receivables consist of uncollateralized, non-interest bearing customer obligations from transactions with retail customers, reduced by an allowance for doubtful accounts for estimated losses resulting from the inability of customers to make payments. The allowance is based on the evaluation and aging of past due balances, specific exposures, historical trends and economic conditions. The Company maintains allowances for doubtful accounts for uncollectible accounts receivable. Management estimates anticipated losses from doubtful accounts based on days past due, collection history and the financial health of customers. The Company writes off accounts receivable against the allowance when a balance is determined to be uncollectible. Recoveries of receivables previously written off are recorded when received. The Company recorded an allowance for doubtful accounts of $0.2 million and $1.0 million as of March 31, 2021 and March 31, 2020, respectively. The Company recorded a reserve for sales adjustments of $11.9 million and $7.6 million as of March 31, 2021 and March 31, 2020, respectively, which is also presented as a reduction to accounts receivable. The Company grants credit terms in the normal course of business to its customers. Trade credit is extended based upon an evaluation of each customer’s ability to perform its payment obligations. Concentrations of credit risk Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash and cash equivalents including money market funds. Although the Company deposits its cash with creditworthy financial institutions, its deposits, at times, may exceed federally insured limits. To date, the Company has not experienced any losses on its cash deposits. The Company performs credit evaluations of its customers, and the risk with respect to trade receivables is further mitigated by the short duration of customer payment terms and the pedigree of the customer base. During the years ended March 31, 2021, March 31, 2020, December 31, 2018 and the three-month transition period ended March 31, 2019, two customers individually accounted for greater than 10% of the Company’s net sales as disclosed below: Year ended March 31, Three months ended March 31, Year ended 2021 2020 2019 2018 Walmart 26 % 31 % 36 % 30 % Target 22 % 22 % 17 % 21 % Customers that individually accounted for greater than 10% of the Company’s accounts receivable at the end of the periods as of March 31, 2021 and March 31, 2020, respectively, are as presented : March 31, 2021 March 31, 2020 Walmart 33 % 20 % Target 17 % 22 % Ulta Beauty 11 % * * Customer comprised less than 10% accounts receivable in the periods. Inventory Inventory, consisting principally of finished goods, is stated at the lower of cost or market. Cost is principally determined by the first-in, first-out method. The Company also records a reserve for excess and obsolete inventory, which represents the excess of the cost of the inventory over its estimated market value. This reserve is based upon an assessment of historical trends, current market conditions and forecasted product demand. The Company recorded an adjustment for excess and obsolete inventory, which is presented as a reduction to inventory of $3.6 million and $1.4 million as of March 31, 2021 and March 31, 2020, respectively. Property and equipment and other assets Property and equipment is stated at cost and is depreciated on a straight-line basis over the estimated useful lives of the assets. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or the useful lives of the assets. Repairs and maintenance expenditures are expensed as incurred. Useful lives by major asset class are as follows: Estimated Machinery, equipment and software 3 - 5 years Leasehold improvements 5 years Furniture and fixtures 2 - 5 years Store fixtures 1 - 3 years As of March 31, 2021 and March 31, 2020, included in other assets are retail product displays, net, of $9.7 million and $10.1 million, respectively, that are generally amortized over a period of three years. Amortization expense for retail product displays was $5.2 million, $6.0 million, $3.1 million and $1.5 million for the years ended March 31, 2021, March 31, 2020, December 31, 2018 and the three-month transition period ended March 31, 2019, respectively. The Company evaluates events and changes in circumstances that could indicate carrying amounts of long-lived assets, including property and equipment, may not be recoverable. When such events or changes in circumstances occur, the Company assesses the recoverability of long-lived assets by determining whether or not the carrying value of such assets will be recovered through undiscounted future cash flows derived from their use and eventual disposition. For purposes of this assessment, long-lived assets are grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. The Company’s long-lived assets are grouped on an entity-wide basis. This is due, in part, to the integrated nature of the Company’s various distribution channels and the extent of shared costs across those channels. If the sum of the undiscounted future cash flows is less than the carrying amount of an asset, the Company records an impairment loss for the amount by which the carrying amount of the assets exceeds its fair value. There were no impairment charges recorded on long-lived assets during the years ended March 31, 2021, March 31, 2020, December 31, 2018 or the three-month transition period ended March 31, 2019, respectively. Goodwill and intangible assets Goodwill represents the excess of the purchase price for an acquisition over the fair value of the net assets acquired. In addition, the Company has acquired finite-lived intangible assets and an indefinite-lived intangible asset. Goodwill is not amortized but rather is reviewed annually for impairment, at the reporting unit level, or when there is evidence that events or changes in circumstances indicate that the Company’s carrying amount may not be recovered. When testing goodwill for impairment, the Company first performs an assessment of qualitative factors. If qualitative factors indicate that it is more likely than not that the fair value of the relevant reporting unit is less than its carrying amount, the Company tests goodwill for impairment at the reporting unit level using a two-step approach. In step one, the Company determines if the fair value of the reporting unit exceeds the unit’s carrying value. If step one indicates that the fair value of the reporting unit is less than its carrying value, the Company performs step two, determining the fair value of goodwill and, if the carrying value of goodwill exceeds its implied fair value, an impairment charge is recorded. The Company has identified a single reporting unit for purposes of impairment testing due, in part, to the integrated nature of the Company’s various distribution channels and the extent of shared costs across those channels. Indefinite-lived intangible assets are not amortized but rather are tested for impairment annually, and impairment is recognized if the carrying amount exceeds the fair value of the intangible asset. The Company evaluates its indefinite-lived intangible asset to determine whether current events and circumstances continue to support an indefinite useful life. Amortization of intangible assets with finite useful lives is computed on a straight-line basis over periods of 3 years to 10 years. The determination of the estimated period of benefit is dependent upon the use and underlying characteristics of the intangible asset. The Company evaluates the recoverability of its intangible assets subject to amortization when facts and circumstances indicate that the carrying value of the asset may not be recoverable. If the carrying value of an intangible asset is not recoverable, impairment loss is measured as the amount by which the carrying value exceeds its estimated fair value. Business combinations The purchase price of a business acquisition is allocated to the assets acquired and liabilities assumed based upon their estimated fair values at the business combination date. The excess of purchase price over the fair value of assets acquired and liabilities assumed is recorded as goodwill. Determining fair value of identifiable assets, particularly intangibles, and liabilities acquired also requires the Company to make estimates, which are based on all available information and in some cases assumptions with respect to the timing and amount of future revenues and expenses associated with an asset. Unanticipated events or circumstances may occur that could affect the accuracy of our fair value estimates, and under different assumptions, the resulting valuations could be materially different. Costs that are incurred to complete the business combination such as legal and other professional fees are not considered as a part of consideration transferred, and are charged to selling, general and administrative expense as they are incurred. Debt issuance costs Debt issuance costs and lender fees were incurred for arranging the credit facilities from various financial institutions. For credit facilities consisting of both term and revolving debt, such costs are allocated to each sub-facility based upon the total borrowing capacity. For term debt, issuance costs are presented within the related long-term debt liability on the consolidated balance sheet and lender fees are presented as a direct deduction from the carrying amount. Both debt issuance costs and lender fees are amortized over the term of the related debt using the effective interest rate method. For revolving debt, issuance costs and lender fees are presented as a noncurrent asset and amortized over the term of the related debt on a straight-line basis. Fair value of financial instruments The carrying amounts of cash and cash equivalents, accounts receivable, and accounts payable and accrued expenses approximate their fair values due to the short-term nature of these items. The carrying amounts of bank debt approximate their fair values as the stated interest rates approximate market rates currently available to the Company for loans with similar terms. See Note 9 Fair value of financial instruments to consolidated financial statements in Part IV, Item 15 “Exhibits, financial statement schedules”. Segment reporting Operating segments are components of an enterprise for which separate financial information is available that is evaluated by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Utilizing these criteria, the Company manages its business on the basis of one operating segment and one reportable segment. It is impracticable for the Company to provide revenue by product line. During the years ended March 31, 2021, March 31, 2020, December 31, 2018 and the three-month transition period ended March 31, 2019, net sales in the United States and outside of the United States were as follows (in thousands): Year ended March 31, Three months ended March 31, Year ended 2021 2020 2019 2018 United States $ 284,203 $ 255,284 $ 59,797 $ 241,159 International 33,907 27,567 6,344 26,276 Total net sales $ 318,110 $ 282,851 $ 66,141 $ 267,435 As of March 31, 2021 and March 31, 2020, the Company had property and equipment in the United States and outside of the United States as follows (in thousands) : March 31, 2021 March 31, 2020 United States $ 13,524 $ 16,845 International 246 326 Total property and equipment, net $ 13,770 $ 17,171 Revenue recognition Revenue is recognized when control of promised goods or services is transferred to a customer in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. For the Company's retail customer transactions, a contract exists when a written purchase order is received, and control transfers at the time of shipment or the time of delivery, depending upon the specific terms of the customer arrangement. For the Company's direct-to-consumer transactions, a contract exists when an order is placed online, and control transfers at the time of delivery of merchandise to the customer. Nearly all of the Company’s transactions with its customers include a single performance obligation delivered at a point in time. The transaction price can include both fixed and variable consideration. In most cases, it is entirely comprised of variable consideration with the variability driven by expected sales discounts, markdown support, and other incentives and allowances offered to customers. These incentives may be explicit or implied by the Company's historical business practices. Generally, these commitments represent cash consideration paid to a customer and do not constitute a promised good or service. The amount of variable consideration is estimated at the time of sale based on either the expected amount or the most likely amount, depending on the nature of the variability. The Company regularly reviews and revises, when deemed necessary, its estimates of variable consideration, based on both customer-specific expectations as well as historical rates of realization. A provision for customer incentives and allowances is included on the consolidated balance sheet, net against accounts receivable. Disaggregated revenue The Company distributes product both through national and international retailers as well as direct-to-consumers through its e-commerce and e.l.f. stores channels (prior to February 2019). The marketing and consumer engagement benefits that the direct channels provide are integral to the Company’s brand and product development strategy and drive sales across channels. As such, the Company views its two primary distribution channels as components of one integrated business, as opposed to discrete revenue streams. The Company sells a variety of beauty products but does not consider them to be meaningfully different revenue streams given similarities in the nature of the products, the target consumer, and the innovation and distribution processes. See Segment Reporting section above for the table providing disaggregated revenue from contracts with customers by geographical market, as the nature, amount, timing and uncertainty of revenue and cash flows can differ between domestic and international customers. Contract assets and liabilities The Company extends credit to retail customers based upon an evaluation of their credit quality. The majority of retail customers obtain payment terms between 30-60 days, and a contract asset is recognized for the related accounts receivable. Additionally, shipping terms can vary, giving rise to contract liabilities for contracts where payment has been received in advance of delivery. The contract liability balance can vary significantly depending on the timing of when an order is placed and when shipment or delivery occurs. As of March 31, 2021, other than accounts receivable, the Company had no material contract assets, contract liabilities or deferred contract costs recorded on its consolidated balance sheet. Practical expedients The Company elected to record revenue net of taxes collected from customers and exclude the amounts from the transaction price. The Company includes in revenue any taxes assessed on the Company's total gross receipts for which it has the primary responsibility to pay the tax. The Company elected not to disclose revenues related to remaining performance obligations for partially completed or unfulfilled contracts that are expected to be fulfilled within one year as such amounts were insignificant. A reconciliation of the beginning and ending amounts of the reserve for sales adjustments for the years ended March 31, 2021, March 31, 2020, December 31, 2018 and the three-month transition period ended March 31, 2019 is as follows (in thousands): Balance as of December 31, 2017 $ 8,458 Charges 26,971 Deductions (27,655) Balance as of December 31, 2018 7,774 Charges 6,787 Deductions (8,016) Balance as of March 31, 2019 6,545 Charges 29,576 Deductions (28,508) Balance as of March 31, 2020 7,613 Charges 41,027 Deductions (36,727) Balance as of March 31, 2021 $ 11,913 In the years ended March 31, 2021, March 31, 2020, December 31, 2018 and the three-month transition period ended March 31, 2019, the Company recorded $0.8 million, $0.7 million, $0.5 million and $0.2 million, respectively, of reimbursed shipping expenses from customers within revenues. The shipping and handling costs associated with product distribution were $26.4 million, $19.8 million, $20.9 million and $4.9 million, in the years ended March 31, 2021, March 31, 2020, December 31, 2018 and the three-month transition period ended March 31, 2019, respectively, and are included in selling, general and administrative expenses in the consolidated statements of operations. Income taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. Future income tax benefits are recognized to the extent that realization of such benefits is more likely than not. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in its income tax provision. Leases The Company has entered into operating lease agreements for office space, warehouse and a retail store location, equipment and software. Lease assets and liabilities are recognized at the present value of the minimum rental payments (excluding executory costs) and expected payment under any residual value guarantee at the lease commencement date. The Company uses its incremental borrowing rate to determine the present value of lease payments. Non-lease components primarily include payments for maintenance and utilities. The Company accounts for the non-lease components in a contract (e.g., common area maintenance) as part of the lease component by electing practical expedient for all leases of commercial office and warehouse space, as the non-lease components are not a significant portion of the total consideration in those agreements. The Company's lease terms include periods under options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Operating lease assets and liabilities are included on the Company's consolidated balance sheet beginning January 1, 2019. The current portion of the Company's operating lease liabilities is included in accrued expenses and other current liabilities, and the long-term portion is included in long-term operating lease liabilities. Finance lease assets are included in other assets. Finance lease liabilities are included in long-term debt and finance lease obligations. Operating lease expense is recognized on a straight-line basis over the lease term. Foreign currency The functional currency of the Company’s foreign subsidiaries is the U.S. dollar. Transactions denominated in currencies other than the functional currency are recorded at exchange rates in effect on the date of the transaction. At the end of each reporting period, monetary assets and liabilities are remeasured to the functional currency using exchange rates in effect at the balance sheet date. Non-monetary assets and liabilities are remeasured at historical exchange rates. Transaction gains or losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in other income (expense), net in the consolidated statements of operations. Stock-based compensation Stock-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized on a straight-line basis over the requisite service period, which is generally the award’s vesting period. The Company estimates the fair value of employee stock-based payment awards subject to only a service condition on the date of grant using the Black-Scholes valuation model. The Black-Scholes model requires the use of highly subjective and complex assumptions, including the option’s expected term and the price volatility of the underlying stock. The Company estimates the fair value of employee stock-based payment awards subject to market conditions using a Monte Carlo simulation model. Compensation expense for employee stock-based awards whose vesting is subject to the fulfillment of both a market condition and the occurrence of a performance condition is recognized on a graded-vesting basis at the time the achievement of the performance condition becomes probable. Forfeitures are recognized and accounted for as they occur. Advertising costs Advertising costs, including promotions and print, are expensed as incurred or distributed. Advertising costs are included in selling, general, and administrative expenses in the accompanying consolidated statements of operations and amounted to approximately $30.3 million, $26.0 million, $10.2 million and $2.6 million in the years ended March 31, 2021, March 31, 2020, December 31, 2018 and the three-month transition period ended March 31, 2019, respectively. Net income (loss) per share Basic net income (loss) per share is computed using net income (loss) available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share reflects the dilutive effects of stock options and restricted stock outstanding during the period, to the extent such securities would not be anti-dilutive and is determined using the treasury stock method. Recent accounting pronouncements The following table provides a brief description of recent accounting pronouncements that could have a material effect on the Company’s financial statements: Recently adopted accounting standards Standard Description Date of expected adoption/adoption Effect on the financial statements or other significant matters ASU 2018-15, Intangibles-Goodwill and Other- Internal-Use Software (Subtopic 350-40) The standard will require customers in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to capitalize as assets or expense as incurred. Certain implementation costs incurred during the application development stage would be deferred and capitalized (e.g., costs of integration with on-premises software, coding, configuration, customization). Other costs incurred during the preliminary project and post-implementation stages would be expensed (e.g., planning the project, training, maintenance after implementation, data conversion). The amendments in the ASU can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. April 1, 2020 The Company adopted ASU 2018-15 prospectively, and the adoption of the standard did not have a material impact on the Company’s consolidated financial statements. ASU 2019-12—Income Taxes (TOPIC 740): Simplifying the Accounting for Income Taxes The guidance eliminates certain exceptions related to intraperiod tax allocations, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences related to changes in ownership of equity method investments and foreign subsidiaries. The guidance also simplifies aspects of accounting for franchise taxes and enacted changes in tax laws, and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The new standard is effective for interim and annual periods beginning after December 15, 2020, and early adoption is permitted. January 1, 2021 The adoption of the standard had no impact on the Company’s consolidated financial statements. |
Nature of operations
Nature of operations | 12 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of operations | Nature of operations e.l.f. Beauty, Inc., a Delaware corporation, (“e.l.f. Beauty” and together with its subsidiaries, the “Company,” or “we”) is a multi-brand beauty company that offers inclusive, accessible, cruelty-free cosmetics and skin-care products. Our mission is to make the best of beauty accessible to every eye, lip and face. We believe our ability to deliver 100% cruelty-free, premium-quality products at accessible prices with broad appeal differentiates us in the beauty industry. We believe the combination of our fundamental value equation, digitally-led strategy, as well as our world-class team’s ability to execute with speed has positioned us well to navigate a rapidly changing landscape in beauty. Our family of brands includes e.l.f. Cosmetics, W3LL PEOPLE and Keys Soulcare. Our brands are available online and across leading beauty, mass-market, and clean-beauty specialty retailers. We have strong relationships with our retail partners such as Walmart, Target, Ulta Beauty and other leading retailers that have enabled us to expand distribution both domestically and internationally. |
Transition period
Transition period | 12 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Transition period | Transition period The Company is presenting its consolidated financial statements for the three-month transition period ended March 31, 2019. The following tables provide certain unaudited comparative financial information for the same period of the prior year. Consolidated Statements of Income (in thousands, except share and per share data) Three months ended March 31, (unaudited) 2019 2018 Net sales $ 66,141 $ 65,920 Cost of sales 25,650 25,712 Gross profit 40,491 40,208 Selling, general and administrative expenses 37,324 36,234 Restructuring expenses 22,176 — Operating income (loss) (19,009) 3,974 Other expense, net (315) (888) Interest expense, net (1,849) (1,963) Income (loss) before provision for income taxes (21,173) 1,123 Income tax benefit (provision) 3,259 (433) Net income (loss) $ (17,914) $ 690 Comprehensive income (loss) $ (17,914) $ 690 Net income (loss) per share: Basic $ (0.37) $ 0.01 Diluted $ (0.37) $ 0.01 Weighted average shares outstanding: Basic 48,022,926 46,435,560 Diluted 48,022,926 49,302,771 Consolidated Statements of Cash Flows (in thousands) Three months ended March 31, 2019 2018 Cash flows from operating activities: (unaudited) Net income (loss) $ (17,914) $ 690 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 7,544 4,288 Restructuring loss 22,176 — Stock-based compensation expense 3,683 3,640 Amortization of debt issuance costs and discount on debt 190 199 Deferred income taxes (3,433) 735 Other, net 242 142 Changes in operating assets and liabilities: Accounts receivable 4,215 12,771 Inventories 2,561 951 Prepaid expenses and other assets (1,732) (1,498) Accounts payable and accrued expenses (6,021) (16,891) Other liabilities (3,295) 3 Net cash provided by operating activities 8,216 5,030 Cash flows from investing activities: Purchase of property and equipment (3,400) (2,667) Net cash used in investing activities (3,400) (2,667) Cash flows from financing activities: Proceeds from revolving line of credit — 2,000 Repayment of revolving line of credit — (2,000) Repayment of long-term debt (2,063) (2,063) Cash received from issuance of common stock 115 212 Other, net (199) (97) Net cash used in financing activities (2,147) (1,948) Net increase in cash and cash equivalents 2,669 415 Cash and cash equivalents - beginning of period 51,205 10,059 Cash and cash equivalents - end of period $ 53,874 $ 10,474 |
Investment in equity securities
Investment in equity securities | 12 Months Ended |
Mar. 31, 2021 | |
Investments, All Other Investments [Abstract] | |
Investment in equity securities | Investment in equity securitiesOn April 14, 2017, the Company invested $2.9 million in a social media analytics company, which is included in investments on its consolidated balance sheets. The Company has elected the measurement alternative for equity investments that do not have readily determinable fair values. The Company did not record an impairment charge on its investment during the years ended March 31, 2021, March 31, 2020, December 31, 2018 or the three-month transition period ended March 31, 2019, respectively, as any identified events or changes in circumstances did not result in an indicator for impairment. Further, there were no observable price changes in orderly transactions for the identical or a similar investment of the same issuer during the years ended March 31, 2021, March 31, 2020, December 31, 2018 or the three-month transition period ended March 31, 2019, respectively. |
Acquisitions
Acquisitions | 12 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Acquisitions | AcquisitionsOn February 24, 2020, the Company, through its wholly owned subsidiary, e.l.f. Cosmetics, Inc., completed its acquisition of W3LL People, Inc., a Santa Fe, New Mexico-based privately held, clean-beauty company with a mission to create premium quality clean products that help people be well, look well and do well. The purchase price of $25.9 million was in all cash and the total consideration in connection with the acquisition is subject to adjustment based on (i) purchase price adjustment provisions and (ii) indemnification obligations of W3LL People, Inc.'s stockholders after the closing of the acquisition. The acquisition has been accounted for as a business combination under the acquisition method and, accordingly, the total purchase price is allocated to the tangible and intangible assets acquired and the liabilities assumed based on their respective fair values on the acquisition date. The purchase price allocation and calculation of residual goodwill was finalized during the quarter ended September 30, 2020. W3LL People, Inc.'s results of operations have been included in the Company's consolidated financial statements from the date of acquisition. The following table presents the purchase price allocation recorded in the Company's consolidated balance sheet on acquisition date and upon finalization during the quarter ended September 30, 2020. A $0.3 million adjustment was recorded in the quarter ended September 30, 2020 and included in the table below (in thousands): Net tangible assets $ 1,978 Goodwill (1) 14,357 Intangible assets 12,340 Net deferred tax liability (2,752) Total purchase price consideration $ 25,923 (1) The goodwill represents the excess value over both tangible and intangible assets acquired and liabilities assumed. The goodwill recognized in this transaction is primarily attributable to expected operational synergies. None of the goodwill is expected to be deductible for tax purposes. Intangible Assets Fair Value Estimated Useful Life (in thousands) (in years) Customer relationships — retailers $ 8,800 10 Customer relationships — e-commerce 40 3 Trademarks 3,500 10 Total identified intangible assets $ 12,340 |
Goodwill and other intangible a
Goodwill and other intangible assets | 12 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and other intangible assets | Goodwill and other intangible assets Information regarding the Company’s goodwill and intangible assets as of March 31, 2021 is as follows (in thousands): Estimated useful life Gross carrying amount Accumulated amortization Net carrying amount Customer relationships – retailers 10 years $ 77,600 $ (50,260) $ 27,340 Customer relationships – e-commerce 3 years 3,940 (3,915) 25 Trademarks 10 years 3,500 (379) 3,121 Total finite-lived intangibles 85,040 (54,554) 30,486 Trademarks Indefinite 63,800 — 63,800 Goodwill 171,620 — 171,620 Total goodwill and other intangibles $ 320,460 $ (54,554) $ 265,906 Information regarding the Company’s goodwill and intangible assets as of March 31, 2020 is as follows (in thousands): Estimated useful life Gross carrying amount Accumulated amortization Net carrying amount Customer relationships – retailers 10 years $ 77,600 $ (42,500) $ 35,100 Customer relationships – e-commerce 3 years 3,940 (3,901) 39 Trademarks 10 years 3,500 (29) 3,471 Total finite-lived intangibles 85,040 (46,430) 38,610 Trademarks Indefinite 63,800 — 63,800 Goodwill 171,321 — 171,321 Total goodwill and other intangibles $ 320,161 $ (46,430) $ 273,731 The Company has not recognized any impairment charges on its goodwill or intangible assets, as the anticipated future cash flows generated by each of these assets remain substantially in excess of their carrying values. Amortization expense on the finite-lived intangible assets was $8.1 million, $7.0 million, $7.1 million and $1.7 million for the years ended March 31, 2021, March 31, 2020, December 31, 2018 and the three-month transition period ended March 31, 2019, respectively. The estimated future amortization expense related to the finite-lived intangible assets, assuming no impairment as of March 31, 2021, is as follows (in thousands): The year ended March 31, 2021 2022 $ 8,123 2023 8,122 2024 6,963 2025 1,230 2026 1,230 Thereafter 4,818 Total $ 30,486 |
Property and equipment
Property and equipment | 12 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | Property and equipment Property and equipment as of March 31, 2021 and March 31, 2020 consists of the following (in thousands): March 31, 2021 March 31, 2020 Machinery, equipment and software $ 14,899 $ 15,327 Leasehold improvements 4,436 3,459 Furniture and fixtures 1,104 708 Store fixtures 10,785 10,302 Property and equipment, gross 31,224 29,796 Less: Accumulated depreciation and amortization (17,454) (12,625) Property and equipment, net $ 13,770 $ 17,171 Depreciation and amortization expense on property and equipment was $6.7 million, $6.3 million, $7.6 million and $1.7 million during the years ended March 31, 2021, March 31, 2020, December 31, 2018 and the three-month transition period ended March 31, 2019, respectively. |
Accrued expenses and other curr
Accrued expenses and other current liabilities | 12 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
Accrued expenses and other current liabilities | Accrued expenses and other current liabilities Accrued expenses and other current liabilities as of March 31, 2021 and March 31, 2020 consists of the following (in thousands): March 31, 2021 March 31, 2020 Accrued expenses $ 21,300 $ 12,518 Current portion of operating lease liabilities 4,292 3,083 Accrued compensation 10,805 9,542 Other current liabilities 4,954 1,022 Accrued expenses and other current liabilities $ 41,351 $ 26,165 |
Fair value of financial instrum
Fair value of financial instruments | 12 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair value of financial instruments | Fair value of financial instruments The fair value of financial instruments are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Fair value is measured using inputs from the three levels of the fair value hierarchy, which are described as follows: Level 1 —Quoted prices in active markets for identical assets or liabilities Level 2 —Quoted prices for similar assets and liabilities in active markets or inputs that are observable Level 3 —Inputs that are unobservable (for example, cash flow modeling inputs based on management’s assumptions) The assets’ or liabilities’ fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The following table sets forth the fair value of the Company’s financial liabilities by level within the fair value hierarchy as of March 31, 2021 (in thousands): Fair value measurements using Fair value Level 1 Level 2 Level 3 Financial liabilities: Long-term debt, including current portion (1) $ 126,789 $ — $ 126,789 $ — Total financial liabilities $ 126,789 $ — $ 126,789 $ — __________________________ (1) Of this amount, $16,281 is classified as current. The gross carrying amounts of the Company’s bank debt, before reduction of the debt issuance costs, approximate their fair values as the stated rates approximate market rates for loans with similar terms. The following table sets forth the fair value of the Company’s financial liabilities by level within the fair value hierarchy as of March 31, 2020 (in thousands): Fair value measurements using Fair value Level 1 Level 2 Level 3 Financial liabilities: Long-term debt, including current portion (1) $ 138,865 $ — $ 138,865 $ — Total financial liabilities $ 138,865 $ — $ 138,865 $ — __________________________ (1) Of this amount, $12,568 is classified as current. The gross carrying amounts of the Company’s bank debt, before reduction of the debt issuance costs, approximate their fair values as the stated rates approximate market rates for loans with similar terms. The Company did not transfer any assets measured at fair value on a recurring basis to or from Level 1 or Level 2 for any of the periods presented. |
Debt
Debt | 12 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following summarizes the recent significant transactions impacting the Company’s indebtedness: • On January 31, 2014, the Company entered into a senior secured credit facility (the “2014 Senior Secured Credit Facility”), which consisted of a $20.0 million revolving line of credit and a $105.0 million term loan. Also, on January 31, 2014, the Company entered into a $40.0 million second lien term loan (the “Second Lien Term Loan”). • On June 7, 2016, the Company incurred an incremental $64.0 million in term loan borrowings under the 2014 Senior Secured Credit Facility to fund, in part, a $72.0 million special dividend to stockholders, and increased the total availability under the revolving credit facility to $25.0 million. • On September 27, 2016, the Company used a portion of the proceeds from the initial public offering to repay the entire outstanding balance of $40.0 million from the Second Lien Term Loan. • On December 23, 2016, the Company refinanced its outstanding obligations under the 2014 Senior Secured Credit Facility, entering into a new 5-year, $200.0 million senior secured credit agreement (the “2016 Senior Secured Credit Facility”), as further described below. • On August 25, 2017, the Company amended the 2016 Senior Secured Credit Facility to increase the total availability under the revolving line of credit to $50.0 million and to lower the interest rates and extend the maturity date to August 25, 2022. • On April 8, 2020, the Company amended the 2016 Senior Secured Credit Facility to modify the Company’s quarterly maintenance covenants, and to add interest rates with respect to borrowings associated with the added increased maximum permitted total net leverage ratios. • On April 30, 2021, the Company refinanced its outstanding obligations under the 2016 Senior Secured Credit Facility and entered into a new 5-year $200.0 million senior secured credit agreement. See Note 21 Subsequent Events to consolidated financial statements in Part IV, Item 15 “Exhibits, financial statement schedules”. The Company’s outstanding debt as of March 31, 2021 and March 31, 2020 consists of the following (in thousands): March 31, 2021 March 31, 2020 Debt: Term loan $ 124,589 $ 135,853 Finance lease obligations 2,200 3,012 Total debt 126,789 138,865 Less: debt issuance costs (253) (209) Total debt, net of issuance costs 126,536 138,656 Less: current portion (16,281) (12,568) Long-term portion of debt $ 110,255 $ 126,088 Senior secured credit agreement, as amended On December 23, 2016, the Company entered into the Senior Secured Credit Agreement (as amended, the "2016 Credit Agreement") with a syndicate consisting of several large financial institutions with respect to the 2016 Senior Secured Credit Facility. The Credit Agreement was first amended on August 25, 2017, increasing the aggregate commitments to $215.0 million. The 2016 Credit Agreement, as amended, consisted of a $50.0 million revolving line of credit and a $165.0 million term loan. The 2016 Credit Agreement was amended again on December 7, 2018 to reflect the change in the Company's fiscal year-end from December 31 to March 31, and amended again on April 8, 2020 to (i) increase the maximum permitted total net leverage ratio for certain fiscal quarters, (ii) reduce the minimum fixed charge coverage ratio for certain fiscal quarters, (iii) add additional interest rates to correspond to the increased maximum permitted total net leverage ratios, (iv) increase the amount of cash netted in the calculation of the consolidated total net leverage ratio, and (v) amend the language around the level of add backs to the adjusted consolidated EBITDA definition. The 2016 Credit Agreement contained a number of covenants that, among other things, restricted our ability to (subject to certain exceptions) pay dividends and distributions or repurchase our capital stock, incur additional indebtedness, create liens on assets, engage in mergers or consolidations and sell or otherwise dispose of assets. The 2016 Credit Agreement also included reporting, financial and maintenance covenants that require us to, among other things, comply with certain consolidated total net leverage ratios and consolidated fixed charge coverage ratios. As of March 31, 2021 and March 31, 2020, the Company was in compliance with all financial covenants under the 2016 Credit Agreement. Aggregate future minimum principal payments are as follows (in thousands): The year ended March 31, 2021 Term Loan 2022 $ 15,469 2023 109,725 Total $ 125,194 Interest expense The components of interest expense, net are as follows (in thousands) : Year ended Three months ended March 31, Year ended 2021 2020 2019 2018 Interest on term loan debt $ 2,912 $ 6,096 $ 1,774 $ 6,774 Amortization of debt issuance costs 847 747 190 792 Interest on revolving line of credit 199 149 40 132 Interest on finance leases 137 179 50 155 Interest income (5) (863) (205) (37) Interest expense, net $ 4,090 $ 6,308 $ 1,849 $ 7,816 |
Contingencies
Contingencies | 12 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Legal Contingencies From time to time, the Company is involved in legal proceedings, claims, and litigation arising in the ordinary course of business. The Company is not currently a party to any matters that management expects will have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. |
Income taxes
Income taxes | 12 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes The components of income (loss) before provision for income taxes are as follows (in thousands): Year ended Three months ended March 31, Year ended 2021 2020 2019 2018 Domestic $ 3,715 $ 24,479 $ (21,673) $ 17,405 Foreign (25) (410) 500 551 Total $ 3,690 $ 24,069 $ (21,173) $ 17,956 The components of the benefit (provision) for income taxes are as follows (in thousands): Year ended Three months ended March 31, Year ended 2021 2020 2019 2018 Current: U.S. federal $ (4,772) $ (2,681) $ (13) $ (2,414) State (1,186) (1,066) (139) (948) Foreign (84) 5 (22) (8) Total current (6,042) (3,742) (174) (3,370) Deferred: U.S. federal 7,159 (2,532) 3,096 1,005 State 1,293 99 368 101 Foreign 132 (10) (31) (167) Total deferred 8,584 (2,443) 3,433 939 Total (provision) benefit for income taxes $ 2,542 $ (6,185) $ 3,259 $ (2,431) The following table presents a reconciliation of the federal statutory rate to the Company’s effective tax rate : Year ended Three months ended March 31, Year ended 2021 2020 2019 2018 Federal statutory rate 21.0 % 21.0 % 21.0 % 21.0 % State tax, net of federal benefit (10.6) % 3.7 % 1.2 % 2.6 % State tax deferred rate change, net of federal benefit (1.6) % 0.1 % — % 0.9 % Nondeductible business expenses 2.1 % 0.8 % (0.1) % 1.4 % Nondeductible employee compensation 9.1 % 0.4 % — % — % Provision-to-return adjustment 1.5 % — % — % (3.9) % Uncertain tax positions 1.0 % (0.2) % (0.1) % (1.3) % Stock based compensation (90.7) % (0.8) % (6.1) % (8.6) % Others (0.7) % 0.7 % (0.5) % 1.4 % Effective tax rate (68.9) % 25.7 % 15.4 % 13.5 % The components of net deferred taxes arising from temporary differences are as follows (in thousands): March 31, 2021 March 31, 2020 Deferred tax assets: Compensation $ 624 $ 760 Inventories and receivables 5,710 3,472 Accrued expenses 2,067 1,996 Stock compensation 7,247 3,706 Net operating losses 272 92 Right of use liability 5,731 3,443 Other 560 558 Deferred tax assets 22,211 14,027 Deferred tax liabilities: Goodwill 4,090 3,468 Fixed assets 2,506 3,294 Intangible assets 23,162 25,287 Right of use asset 5,294 3,292 Other 463 563 Deferred tax liabilities 35,515 35,904 Net deferred tax liabilities $ 13,304 $ 21,877 The deferred tax assets and liabilities are reported in the accompanying balance sheets as follows (in thousands) : March 31, 2021 March 31, 2020 Deferred tax assets $ 175 $ 15 Deferred tax liabilities 13,479 21,892 Net deferred tax liabilities $ 13,304 $ 21,877 As of March 31, 2021, the Company had gross federal, state and foreign net operating loss carryforwards of $0.5 million, $0.1 million and $0.6 million, respectively. The federal and state net operating loss carryforwards can either be carried forward 20 years or indefinitely. The federal and state net operating loss carryforwards will begin to expire in 2038. The foreign net operating loss carryforwards have a carryforward period of 5 years and will begin to expire in 2026. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): Year ended Three months ended March 31, Year ended 2021 2020 2019 2018 Balance at beginning of year $ 477 $ 581 $ 571 $ 764 Increases for prior year tax positions 6 32 — — Increases for current year tax positions 65 90 10 173 Decreases for prior year tax positions — — — (8) Decreases due to settlements (27) (29) — — Decreases due to statutes lapsing (63) (197) — (358) Balance at end of year $ 458 $ 477 $ 581 $ 571 If all of the Company’s unrecognized tax benefits as of March 31, 2021, March 31, 2020 and December 31, 2018, and the three-month transition period ended March 31, 2019 were recognized, $0.5 million, $0.5 million, $0.4 million and $0.4 million, respectively, of unrecognized tax benefits, would impact the effective tax rate. The Company believes it is reasonably possible that $0.1 million of unrecognized tax benefits may reverse in the next twelve months. The Company recognizes interest and penalties accrued related to unrecognized tax benefits in the provision for income taxes. The Company had $0.1 million and $0.1 million of accrued gross interest and penalties as of March 31, 2021 and March 31, 2020, respectively. The Company recognized net interest and penalties expense of $29 thousand, $23 thousand, $(40) thousand and $3 thousand for the years ended March 31, 2021, March 31, 2020 and December 31, 2018, and the three-month transition period ended March 31, 2019, respectively. The Company files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. As of March 31, 2021, with few exceptions, the Company or its subsidiaries are no longer subject to examination prior to tax year ended December 31, 2017. |
Preferred stock
Preferred stock | 12 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Preferred stock | Preferred stockThe Company has authorized 30,000,000 shares of preferred stock for issuance with a par value of $0.01 per share. There were no shares of preferred stock outstanding as of March 31, 2021 or March 31, 2020. |
Stock-based compensation
Stock-based compensation | 12 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-based compensation | Stock-based compensation Stock plans The Company grants stock-based awards under its 2016 Equity Incentive Award Plan (as amended) (the “2016 Plan”), which replaced its 2014 Equity Incentive Plan (the “2014 Plan”) and became effective immediately prior to the effectiveness of the Company’s registration statement on Form S-1 in September 2016. No grants have made under the 2014 Plan since the Company’s initial public offering and no further awards will be granted thereunder. Any awards outstanding under the 2014 Plan that are forfeited or lapse unexercised will be added to the shares reserved and available for grant under the 2016 Plan. The 2016 Plan permits the grant of incentive stock options, non-statutory stock options, restricted stock and other stock- or cash-based awards to employees, officers, directors, advisors and consultants. The 2016 Plan allows for option grants of the Company’s common stock based on service, performance and market conditions. As of March 31, 2021, a total of 14,483,591 shares have been authorized for issuance under the 2016 Plan, and 7,667,891 remain available for grant. As of March 31, 2021, there were 1,061,972 options and awards outstanding under the 2014 Plan that, if forfeited, would increase the number of shares authorized for grant under the 2016 Plan. Service-based vesting stock options The following table summarizes the activity for options that vest solely based upon the satisfaction of a service condition as follows: Options Weighted-average exercise price Weighted-average remaining Aggregate intrinsic values (in thousands) (1) Balance as of December 31, 2018 2,746,670 $ 12.91 Granted 115,100 7.95 Canceled or forfeited (286,191) 16.98 Balance as of March 31, 2019 2,575,579 12.24 6.9 $ 6,958 Granted 202,560 14.18 Exercised (334,572) 4.08 Canceled or forfeited (444,014) 15.07 Balance as of March 31, 2020 1,999,553 13.17 6.8 $ 3,773 Exercised (337,376) 4.36 Canceled or forfeited (21,196) 23.24 Balance as of March 31, 2021 1,640,981 $ 14.86 6.1 $ 19,650 Exercisable, March 31, 2021 1,312,728 $ 14.99 5.6 $ 15,549 (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the Company's closing stock price of $26.83, as reported on the New York Stock Exchange on March 31, 2021. Additional information relating to service-based options is as follows (in thousands, except per share data): Year ended Three months ended March 31, Year ended 2021 2020 2019 2018 Stock-based compensation expense $ 1,671 $ 2,308 $ 590 $ 3,219 Intrinsic value of options exercised 5,620 3,580 — 2,890 Weighted-average grant date fair value $ — $ 5.55 $ 3.12 $ 6.81 As of March 31, 2021, there was $1.5 million of total unrecognized compensation cost related to service-based stock options, which is expected to be recognized over the remaining weighted-average vesting period of 2.2 years. The fair value of service-based stock options granted were calculated using the following weighted-average assumptions: Year ended Three months ended March 31, Year ended 2020 2019 2018 Expected term (in years) 6.5 6.3 6.3 Expected volatility 35.57 % 35.13 % 32.02 % Risk-free interest rate 2.07 % 2.55 % 2.68 % Expected dividend yield — % — % — % No service-based stock options were granted during the year ended March 31, 2021. The determination of the fair value of stock options on the date of grant using a Black-Scholes option-pricing model is affected by the fair value of the underlying common stock, as well as assumptions regarding a number of variables that are complex, subjective and generally require significant judgment. The assumptions used in the Black-Scholes option-pricing model to calculate the fair value of stock options were: Fair value of common stock The fair value of shares of common stock underlying stock options is based on the closing stock price as quoted on the New York Stock Exchange on the date of grant. Expected term The expected term of the options represents the period of time that the options are expected to be outstanding. Options granted have a maximum contractual life of 10 years. Prior to the initial public offering, the Company estimated the expected term of the option based on the estimated timing of potential liquidity events. For grants upon or after the initial public offering, the Company estimated the expected term based upon the simplified method described in Staff Accounting Bulletin No. 107, as the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term due to the limited period of time its equity shares have been publicly traded. Expected volatility As the Company does not have sufficient trading history for its common stock, the expected stock price volatility for the common stock was estimated by taking the average historic price volatility for industry peers based on daily price observations over a period equivalent to the expected term of the stock option grants. Industry peers consist of several public companies within the same industry, which are of similar size, complexity and stage of development. The Company intends to continue to consistently apply this process using the same or similar public companies until a sufficient amount of historical information regarding the volatility of its own share price becomes available, or unless circumstances change such that the identified companies are no longer similar to the Company, in which case, more suitable companies whose share prices are publicly available would be used in the calculation. Risk-free interest rate The risk-free interest rate was based on the U.S. Treasury rate, with maturities similar to the expected term of the options. Expected dividend yield The Company does not anticipate paying any dividends in the foreseeable future. As such, the Company uses an expected dividend yield of zero. Performance-based and market-based vesting stock options The following table summarizes the activity for options that vest based upon the satisfaction of performance or market conditions as follows: Options Weighted-average exercise price Weighted-average remaining Aggregate intrinsic values (in thousands) (1) Balance as of December 31, 2018 1,482,782 $ 8.94 Exercised (62,450) 1.84 Canceled or forfeited (96,900) 26.84 Balance as of March 31, 2019 1,323,432 7.96 6.0 $ 8,646 Exercised (53,100) 2.40 Canceled or forfeited (17,400) 26.84 Balance as of March 31, 2020 1,252,932 7.97 5.0 $ 7,487 Exercised (144,340) 1.89 Balance as of March 31, 2021 1,108,592 $ 8.72 4.0 $ 20,077 Exercisable, March 31, 2021 808,592 $ 2.00 3.3 $ 20,077 (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the Company's closing stock price of $26.83, as reported on the New York Stock Exchange on March 31, 2021. As of March 31, 2021, there was no further unrecognized compensation cost related to performance-based and market-based vesting stock options. Additional information relating to options that vest based upon the satisfaction of performance or market conditions is as follows (in thousands, except per share data): Year ended Three months ended March 31, Year ended 2021 2020 2019 2018 Stock-based compensation expense $ — $ — $ — $ 1,168 Intrinsic value of options exercised 3,117 609 419 8,669 Weighted-average grant date fair value $ — $ — $ — $ — In February 2017, the Company granted options that vest based upon the achievement of specified stock prices. The fair values and derived service periods were determined using a Monte Carlo simulation model. If the awards vest prior to the end of the derived service period, the remaining unamortized compensation cost will be recognized in the period of vesting. Restricted stock The following table summarizes the activities for restricted stock awards (“RSAs”) and restricted stock units (“RSUs”) as follows: Shares of restricted stock outstanding Weighted-average grant date fair value Balance as of December 31, 2018 2,036,124 $ 20.01 Granted (1) 1,464,710 7.64 Vested (396,514) 21.79 Canceled or forfeited (317,922) 20.06 Balance as of March 31, 2019 2,786,398 13.26 Granted 673,461 14.26 Vested (762,818) 15.97 Canceled or forfeited (385,273) 12.66 Balance as of March 31, 2020 2,311,768 12.86 Granted 1,206,870 17.45 Vested (1,044,052) 13.97 Canceled or forfeited (184,971) 14.19 Balance as of March 31, 2021 2,289,615 $ 14.67 (1) Includes restricted stock awards granted in the period ending March 31, 2019 that vest based upon the achievement of a specified stock price and satisfaction of a service condition. The fair values and derived service periods were determined using a Monte Carlo simulation model. As of March 31, 2021, there were 1,190,320 unvested shares subject to RSAs outstanding. Additional information relating to RSAs and RSUs is as follows (in thousands): Year ended Three months ended March 31, Year ended 2021 2020 2019 2018 Stock-based compensation expense $ 18,012 $ 13,181 $ 3,093 $ 12,434 Intrinsic value of restricted stock released $ 24,328 $ 12,448 $ 3,387 $ 6,280 |
Restructuring and other related
Restructuring and other related costs | 12 Months Ended |
Mar. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and other related costs | Restructuring and other related costs 2021 Restructuring Plan In March 2021, a restructuring plan (the "2021 Restructuring Plan") was approved to close the Company's manufacturing plant in Rancho Cucamonga, California. Activities associated with the 2021 Restructuring Plan included the closure of the facility; the impairment of plant assets, including equipment and leasehold improvements; the disposal of excess inventory on hand at the plant; and the termination of manufacturing plant employees. The following table presents the restructuring expense incurred during the year ended March 31, 2021 (in thousands) in connection with the 2021 Restructuring Plan: March 31, 2021 Property, plant and equipment impairment $ 2,097 Inventory disposal 343 Employee severance and related expenses 23 Other costs, including other asset write-offs 178 Total $ 2,641 Liabilities related to the 2021 Restructuring Plan were not material as of March 31, 2021. 2019 Restructuring Plan In February 2019, the Company closed all 22 e.l.f. retail stores and implemented a workforce reduction of employees that operated and managed the e.l.f. retail stores (the “2019 Restructuring Plan”). The following table presents the restructuring (income) expenses incurred for the year ended March 31, 2020 and the three-month transition period ended March 31, 2019, respectively, in connection with the 2019 Restructuring Plan (in thousands): March 31, 2020 Three months ended March 31, 2020 2019 Acceleration of rent expense $ — $ 16,106 Acceleration of depreciation expense — 5,377 Gain from extinguishment of lease liabilities (7,733) (1,866) Employee severance and related expenses — 600 Other costs, including other asset write-offs 1,751 1,959 Total $ (5,982) $ 22,176 The acceleration of rent expense is net of a $1.9 million gain related to operating lease liabilities that were extinguished as of March 31, 2019. This gain represents the difference between the aggregate operating lease liability established upon adoption of ASC 842 and the aggregate cash charge incurred to extinguish the aggregate liability. The gross accelerated rent expense of $16.1 million is included in depreciation and amortization in the statement of cash flows in the transition period for the three months ended March 31, 2019. The majority of the other costs incurred during the three-month transition period ended March 31, 2019 and the year ended March 31, 2020 are legal fees related to this extinguishment. As of March 31, 2020, the Company has settled all outstanding lease liabilities related to its e.l.f. retail store closures and does not expect to incur additional costs associated with the 2019 Restructuring Plan. Liabilities related to the 2019 Restructuring Plan are reported within accrued expenses and other current liabilities in the accompanying consolidated balance sheets. There were no costs incurred or cash disbursements made during the year ended March 31, 2021. The following table presents a roll-forward of the Company's restructuring liability for the three-month transition period ended March 31, 2019 and the year ended March 31, 2020, respectively (in thousands): Employee severance and related expenses Other costs Total December 31, 2018 $ — $ — $ — Costs incurred 600 1,118 1,718 Cash disbursements (504) (443) (947) Other adjustments — — — March 31, 2019 $ 96 $ 675 $ 771 Costs incurred and other adjustments (22) 1,634 1,612 Cash disbursements (74) (2,309) (2,383) March 31, 2020 $ — $ — $ — |
Repurchase of common stock
Repurchase of common stock | 12 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Repurchase of common stock | Repurchase of common stock On May 8, 2019, the Company announced that its board of directors authorized a share repurchase program to acquire up to $25.0 million of the Company’s common stock (the “Share Repurchase Program”). Purchases under the Share Repurchase Program may be made from time to time through a variety of methods, which may include open market purchases, privately negotiated transactions, block trades, accelerated share repurchase transactions, or by any combination of such methods. The timing and amount of any repurchases pursuant to the Share Repurchase Program will be determined based on market conditions, share price and other factors. The Share Repurchase Program does not require the Company to repurchase any specific number of shares of its common stock, and may be modified, suspended or terminated at any time without notice. There is no guarantee that any additional shares will be purchased under the Share Repurchase Program and such shares are intended to be retired after purchase. The Company did not repurchase any shares during the three and twelve months ended March 31, 2021. A total of $17.1 million remains available for purchase under the Share Repurchase Program as of March 31, 2021. |
Employee benefit plan
Employee benefit plan | 12 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
Employee benefit plan | Employee benefit planThe Company maintains a defined contribution 401(k) profit-sharing plan (the “401(k) Plan”) for eligible employees. Participants may make voluntary contributions up to the maximum amount allowable by law. The Company may make contributions to the 401(k) Plan on a discretionary basis which vest to the participants 100%. The Company made matching contributions of $0.3 million, $0.3 million, $0.2 million and $0.1 million to the 401(k) Plan during the years ended March 31, 2021, March 31, 2020, December 31, 2018 and the three-month transition period ended March 31, 2019, respectively. |
Net income (loss) per share
Net income (loss) per share | 12 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net income (loss) per share | Net income (loss) per share The following is a reconciliation of the numerator and denominator in the basic and diluted net income (loss) per common share computations (in thousands, except share and per share data): Year ended March 31, Three months ended March 31, Year ended 2021 2020 2019 2018 Numerator: Net income (loss) $ 6,232 $ 17,884 $ (17,914) $ 15,525 Denominator: Weighted average common shares outstanding — basic 49,377,410 48,498,813 48,022,926 46,828,798 Dilutive common equivalent shares from equity awards 2,616,735 2,318,330 — 2,439,818 Weighted average common shares outstanding —diluted 51,994,145 50,817,143 48,022,926 49,268,616 Net income (loss) per share: Basic $ 0.13 $ 0.37 $ (0.37) $ 0.33 Diluted $ 0.12 $ 0.35 $ (0.37) $ 0.32 Weighted average anti-dilutive shares from outstanding equity awards excluded from diluted earnings per share 1,038,810 2,143,672 6,588,523 3,373,529 |
Leases
Leases | 12 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases The Company leases warehouses, distribution centers, office space, retail space and equipment. The majority of the Company's leases include one or more options to renew, with renewal terms that can extend the lease term for up to five years. The exercise of lease renewal options is at the Company's sole discretion and such renewal options are included in the lease term if they are reasonably certain to be exercised. Certain leases also include options to purchase the leased asset. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Most of the Company's equipment leases are finance leases of assets used to operate its distribution centers in Ontario, California and Columbus, Ohio. Significant judgment is required to determine whether commercial contracts contain a lease for purposes of ASC 842. The discount rate used in measuring lease liabilities is generally based on the interest rate on the Company’s revolving line of credit, assuming sufficient unused capacity exists at the time the lease liability is measured. A reconciliation of the balance sheet line items that were impacted or created as a result of the Company’s adoption of ASC 842 as of March 31, 2021 and March 31, 2020 is as follows (in thousands): Classification March 31, 2021 March 31, 2020 Assets Operating lease assets (a) Other assets $ 22,691 $ 13,668 Finance lease assets (b) Other assets 1,100 2,094 Total leased assets $ 23,791 $ 15,762 Liabilities Current Operating (a) Accrued expenses and other current liabilities $ 4,292 $ 3,083 Finance Current portion of long-term debt and finance lease obligations 812 812 Noncurrent Operating (a) Long-term operating lease obligations 20,084 11,239 Finance Long-term debt and finance lease obligations 1,388 2,200 Total lease liabilities $ 26,576 $ 17,334 ___________________ (a) In accordance with ASC 842, $15.7 million of ROU assets related to operating leases were derecognized in the three-month transition period ended March 31, 2019 in connection with the 2019 Restructuring Plan. Pursuant to ASC 842, each related lease liability is derecognized only after the Company is released from that liability. The Company recognized a gain of $1.9 million in restructuring expenses related to the derecognition of lease liabilities in connection with the 2019 Restructuring Plan in the three-month transition period ended March 31, 2019. See Note 15 Restructuring and other related costs to consolidated financial statements in Part IV, Item 15 “Exhibits, financial statement schedules” under the heading "2019 Restructuring Plan" for the 2019 Restructuring Plan and the gain recorded on lease liabilities derecognized in the year ended March 31, 2020 and the three-month transition period ended March 31, 2019, respectively. During the year ended March 31, 2021, the Company implemented the 2021 Restructuring Plan to record the charge for impairment of ROA assets related to the manufacturing plant closure in accordance with the equipment lease agreements. The amount was immaterial as of March 31, 2021. See Note 15 Restructuring and other related costs to consolidated financial statements in Part IV, Item 15 “Exhibits, financial statement schedules” under the heading "2021 Restructuring Plan" for further details. (b) Finance leases are recorded net of accumulated amortization of $3.2 million and $2.9 million as of March 31, 2021 and March 31, 2020, respectively. For the years ended March 31, 2021, March 31, 2020 and the transition period for the three-month transition period ended March 31, 2019, the components of operating and finance lease costs were as follows (in thousands): Year ended March 31, Three months ended March 31, Classification 2021 2020 2019 Operating lease cost Selling, general and administrative (“SG&A”) expenses $ 4,756 $ 2,950 $ 1,195 Gain from extinguishment of lease liabilities Restructuring income — (7,733) (1,866) Acceleration of rent expense Restructuring expenses — — 16,106 Finance lease cost Amortization of leased assets SG&A expenses 970 996 254 Interest on lease liabilities Interest expense, net 137 179 50 Total lease cost (gain) $ 5,863 $ (3,608) $ 15,739 As of March 31, 2021, the aggregate future minimum lease payments under non-cancellable leases presented in accordance with ASC 842 are as follows (in thousands): Operating Finance Total 2022 4,823 907 5,730 2023 4,857 1,208 6,065 2024 4,884 235 5,119 2025 4,075 — 4,075 2026 3,091 — 3,091 Thereafter 4,605 — 4,605 Total lease payments 26,335 2,350 28,685 Less: Interest 1,959 150 Present value of lease liabilities $ 24,376 $ 2,200 As of March 31, 2021 and March 31, 2020, the weighted average remaining lease term (in years) and discount rate were as follows: March 31, 2021 March 31, 2020 Weighted-average remaining lease term Operating leases 6.0 years 6.8 years Finance leases 2.3 years 3.3 years Weighted-average discount rate Operating leases 2.8 % 3.7 % Finance leases 5.2 % 5.2 % |
Leases | Leases The Company leases warehouses, distribution centers, office space, retail space and equipment. The majority of the Company's leases include one or more options to renew, with renewal terms that can extend the lease term for up to five years. The exercise of lease renewal options is at the Company's sole discretion and such renewal options are included in the lease term if they are reasonably certain to be exercised. Certain leases also include options to purchase the leased asset. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Most of the Company's equipment leases are finance leases of assets used to operate its distribution centers in Ontario, California and Columbus, Ohio. Significant judgment is required to determine whether commercial contracts contain a lease for purposes of ASC 842. The discount rate used in measuring lease liabilities is generally based on the interest rate on the Company’s revolving line of credit, assuming sufficient unused capacity exists at the time the lease liability is measured. A reconciliation of the balance sheet line items that were impacted or created as a result of the Company’s adoption of ASC 842 as of March 31, 2021 and March 31, 2020 is as follows (in thousands): Classification March 31, 2021 March 31, 2020 Assets Operating lease assets (a) Other assets $ 22,691 $ 13,668 Finance lease assets (b) Other assets 1,100 2,094 Total leased assets $ 23,791 $ 15,762 Liabilities Current Operating (a) Accrued expenses and other current liabilities $ 4,292 $ 3,083 Finance Current portion of long-term debt and finance lease obligations 812 812 Noncurrent Operating (a) Long-term operating lease obligations 20,084 11,239 Finance Long-term debt and finance lease obligations 1,388 2,200 Total lease liabilities $ 26,576 $ 17,334 ___________________ (a) In accordance with ASC 842, $15.7 million of ROU assets related to operating leases were derecognized in the three-month transition period ended March 31, 2019 in connection with the 2019 Restructuring Plan. Pursuant to ASC 842, each related lease liability is derecognized only after the Company is released from that liability. The Company recognized a gain of $1.9 million in restructuring expenses related to the derecognition of lease liabilities in connection with the 2019 Restructuring Plan in the three-month transition period ended March 31, 2019. See Note 15 Restructuring and other related costs to consolidated financial statements in Part IV, Item 15 “Exhibits, financial statement schedules” under the heading "2019 Restructuring Plan" for the 2019 Restructuring Plan and the gain recorded on lease liabilities derecognized in the year ended March 31, 2020 and the three-month transition period ended March 31, 2019, respectively. During the year ended March 31, 2021, the Company implemented the 2021 Restructuring Plan to record the charge for impairment of ROA assets related to the manufacturing plant closure in accordance with the equipment lease agreements. The amount was immaterial as of March 31, 2021. See Note 15 Restructuring and other related costs to consolidated financial statements in Part IV, Item 15 “Exhibits, financial statement schedules” under the heading "2021 Restructuring Plan" for further details. (b) Finance leases are recorded net of accumulated amortization of $3.2 million and $2.9 million as of March 31, 2021 and March 31, 2020, respectively. For the years ended March 31, 2021, March 31, 2020 and the transition period for the three-month transition period ended March 31, 2019, the components of operating and finance lease costs were as follows (in thousands): Year ended March 31, Three months ended March 31, Classification 2021 2020 2019 Operating lease cost Selling, general and administrative (“SG&A”) expenses $ 4,756 $ 2,950 $ 1,195 Gain from extinguishment of lease liabilities Restructuring income — (7,733) (1,866) Acceleration of rent expense Restructuring expenses — — 16,106 Finance lease cost Amortization of leased assets SG&A expenses 970 996 254 Interest on lease liabilities Interest expense, net 137 179 50 Total lease cost (gain) $ 5,863 $ (3,608) $ 15,739 As of March 31, 2021, the aggregate future minimum lease payments under non-cancellable leases presented in accordance with ASC 842 are as follows (in thousands): Operating Finance Total 2022 4,823 907 5,730 2023 4,857 1,208 6,065 2024 4,884 235 5,119 2025 4,075 — 4,075 2026 3,091 — 3,091 Thereafter 4,605 — 4,605 Total lease payments 26,335 2,350 28,685 Less: Interest 1,959 150 Present value of lease liabilities $ 24,376 $ 2,200 As of March 31, 2021 and March 31, 2020, the weighted average remaining lease term (in years) and discount rate were as follows: March 31, 2021 March 31, 2020 Weighted-average remaining lease term Operating leases 6.0 years 6.8 years Finance leases 2.3 years 3.3 years Weighted-average discount rate Operating leases 2.8 % 3.7 % Finance leases 5.2 % 5.2 % |
Quarterly financial summary
Quarterly financial summary | 12 Months Ended |
Mar. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly financial summary | Quarterly financial summary Unaudited quarterly results for the years ended March 31, 2021, March 31, 2020, December 31, 2018 and the three-month transition period ended March 31, 2019, respectively, were as follows (in thousands, except per share data): June 30, 2020 September 30, 2020 December 31, 2020 March 31, 2021 (unaudited) Net sales 64,527 72,350 88,562 92,671 Gross profit 43,341 47,138 57,119 58,600 Net income 1,512 447 4,297 (24) Net income per share: Basic $ 0.03 $ 0.01 $ 0.09 $ 0.00 Diluted $ 0.03 $ 0.01 $ 0.08 $ 0.00 March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 March 31, 2020 (unaudited) (unaudited) Net sales $ 65,920 $ 59,055 $ 63,889 $ 78,571 $ 66,141 $ 59,764 $ 67,615 $ 80,760 $ 74,712 Gross profit $ 40,208 $ 36,645 $ 38,969 $ 46,919 $ 40,491 $ 37,191 $ 43,348 $ 52,520 $ 48,064 Net income (loss) $ 690 $ 1,248 $ 3,915 $ 9,672 $ (17,914) $ 3,706 $ 6,517 $ 8,002 $ (341) Net income (loss) per share: Basic $ 0.01 $ 0.03 $ 0.08 $ 0.20 $ (0.37) $ 0.08 $ 0.13 $ 0.16 $ (0.01) Diluted $ 0.01 $ 0.03 $ 0.08 $ 0.20 $ (0.37) $ 0.07 $ 0.13 $ 0.16 $ (0.01) |
Subsequent events
Subsequent events | 12 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent events | Subsequent events On April 30, 2021, the Company amended and restated the 2016 Credit Agreement (the “Amended Credit Agreement”). In addition to amended and restating the 2016 Credit Facility, the Company amended and restated the term loan facility and the revolving credit facility under the 2016 Credit Agreement and refinanced the loans under the 2016 Credit Agreement. The Amended Credit Agreement has a five year term and consists of (i) a $100 million revolving credit facility (the “Amended Revolving Credit Facility”) and (ii) a $100 million term loan facility (the “Amended Revolving Credit Facility”) , which will bear interest, at borrowers’ option, at either (i) a rate per annum equal to an adjusted LIBOR rate determined by reference to the cost of funds for the U.S. dollar deposits for the applicable interest period (subject to a minimum floor of 0%) plus an applicable margin ranging from 1.25% to 2.125% based on the Company’s consolidated total net leverage ratio (as defined in the Amended Credit Agreement) or (ii) a floating base rate plus an applicable margin ranging from 0.25% to 1.125% based on the Company’s consolidated total net leverage ratio. On the closing date of the Amended Credit Agreement, the applicable margin for the Amended Revolving Credit Facility and the Amended Term Loan Facility was 1.375% for the adjusted LIBOR rate and 0.375% for the floating base rate. In addition, the Amended Revolving Credit Facilities and the Amended Term Loan Facility require payment of an unused fee ranging from 0.10% to 0.30% (based on the Company’s consolidated total net leverage ratio) times the average daily amount of unutilized commitments under the Amended Revolving Credit Facility. On the Closing Date of the Amended Credit Agreement, the unused line fee was 0.15%. The borrowers are also required to pay customary letter of credit fees and an annual administrative agent fee. Amortization installment payments on the Amended Term Loan Facility are required to be made in quarterly installments of $1,250,000 from the fiscal quarter ending September 30, 2021 through March 31, 2026. The remaining outstanding amount will be due and payable on April 30, 2026, the maturity date for the Amended Term Loan Facility. Principal amounts outstanding under Amended Revolving Credit Facility will be due and payable in full on April 30, 2026, the maturity date for the Amended Revolving Credit Facility. |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of presentation and fiscal year end change | Basis of presentation and fiscal year end change During December 2018, the board of directors approved a change in fiscal year end from December 31 st to March 31 st . Accordingly, this document reflects the Company's fiscal year ended March 31, 2021, covering the period April 1, 2020 through March 31, 2021. All references to the periods ended March 31, 2021, March 31, 2020 and December 31, 2018 relate to the years ended March 31, 2021, March 31, 2020 and December 31, 2018, respectively. All references to the period ended March 2019 relate to the three-month transition period ended March 31, 2019. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. |
Cash and cash equivalents | Cash and cash equivalentsCash and cash equivalents include all cash balances and highly liquid investments purchased with maturities of three months or less. |
Accounts receivable | Accounts receivable Trade receivables consist of uncollateralized, non-interest bearing customer obligations from transactions with retail customers, reduced by an allowance for doubtful accounts for estimated losses resulting from the inability of customers to make payments. The allowance is based on the evaluation and aging of past due balances, specific exposures, historical trends and economic conditions. The Company maintains allowances for doubtful accounts for uncollectible accounts receivable. Management estimates anticipated losses from doubtful accounts based on days past due, collection history and the financial health of customers. The Company writes off accounts receivable against the allowance when a balance is determined to be uncollectible. Recoveries of receivables previously written off are recorded when received. The Company recorded an allowance for doubtful accounts of $0.2 million and $1.0 million as of March 31, 2021 and March 31, 2020, respectively. The Company recorded a reserve for sales adjustments of $11.9 million and $7.6 million as of March 31, 2021 and March 31, 2020, respectively, which is also presented as a reduction to accounts receivable. The Company grants credit terms in the normal course of business to its customers. Trade credit is extended based upon an evaluation of each customer’s ability to perform its payment obligations. |
Concentrations of credit risk | Concentrations of credit risk Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash and cash equivalents including money market funds. Although the Company deposits its cash with creditworthy financial institutions, its deposits, at times, may exceed federally insured limits. To date, the Company has not experienced any losses on its cash deposits. The Company performs credit evaluations of its customers, and the risk with respect to trade receivables is further mitigated by the short duration of customer payment terms and the pedigree of the customer base. |
Inventory | InventoryInventory, consisting principally of finished goods, is stated at the lower of cost or market. Cost is principally determined by the first-in, first-out method. The Company also records a reserve for excess and obsolete inventory, which represents the excess of the cost of the inventory over its estimated market value. This reserve is based upon an assessment of historical trends, current market conditions and forecasted product demand. |
Property and equipment and other assets | Property and equipment and other assets Property and equipment is stated at cost and is depreciated on a straight-line basis over the estimated useful lives of the assets. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or the useful lives of the assets. Repairs and maintenance expenditures are expensed as incurred. Useful lives by major asset class are as follows: Estimated Machinery, equipment and software 3 - 5 years Leasehold improvements 5 years Furniture and fixtures 2 - 5 years Store fixtures 1 - 3 years As of March 31, 2021 and March 31, 2020, included in other assets are retail product displays, net, of $9.7 million and $10.1 million, respectively, that are generally amortized over a period of three years. Amortization expense for retail product displays was $5.2 million, $6.0 million, $3.1 million and $1.5 million for the years ended March 31, 2021, March 31, 2020, December 31, 2018 and the three-month transition period ended March 31, 2019, respectively. |
Goodwill and intangible assets | Goodwill and intangible assets Goodwill represents the excess of the purchase price for an acquisition over the fair value of the net assets acquired. In addition, the Company has acquired finite-lived intangible assets and an indefinite-lived intangible asset. Goodwill is not amortized but rather is reviewed annually for impairment, at the reporting unit level, or when there is evidence that events or changes in circumstances indicate that the Company’s carrying amount may not be recovered. When testing goodwill for impairment, the Company first performs an assessment of qualitative factors. If qualitative factors indicate that it is more likely than not that the fair value of the relevant reporting unit is less than its carrying amount, the Company tests goodwill for impairment at the reporting unit level using a two-step approach. In step one, the Company determines if the fair value of the reporting unit exceeds the unit’s carrying value. If step one indicates that the fair value of the reporting unit is less than its carrying value, the Company performs step two, determining the fair value of goodwill and, if the carrying value of goodwill exceeds its implied fair value, an impairment charge is recorded. The Company has identified a single reporting unit for purposes of impairment testing due, in part, to the integrated nature of the Company’s various distribution channels and the extent of shared costs across those channels. Indefinite-lived intangible assets are not amortized but rather are tested for impairment annually, and impairment is recognized if the carrying amount exceeds the fair value of the intangible asset. The Company evaluates its indefinite-lived intangible asset to determine whether current events and circumstances continue to support an indefinite useful life. Amortization of intangible assets with finite useful lives is computed on a straight-line basis over periods of 3 years to 10 years. The determination of the estimated period of benefit is dependent upon the use and underlying characteristics of the intangible asset. The Company evaluates the recoverability of its intangible assets subject to amortization when facts and circumstances indicate that the carrying value of the asset may not be recoverable. If the carrying value of an intangible asset is not recoverable, impairment loss is measured as the amount by which the carrying value exceeds its estimated fair value. |
Business combinations | Business combinations The purchase price of a business acquisition is allocated to the assets acquired and liabilities assumed based upon their estimated fair values at the business combination date. The excess of purchase price over the fair value of assets acquired and liabilities assumed is recorded as goodwill. Determining fair value of identifiable assets, particularly intangibles, and liabilities acquired also requires the Company to make estimates, which are based on all available information and in some cases assumptions with respect to the timing and amount of future revenues and expenses associated with an asset. Unanticipated events or circumstances may occur that could affect the accuracy of our fair value estimates, and under different assumptions, the resulting valuations could be materially different. |
Debt issuance costs | Debt issuance costs Debt issuance costs and lender fees were incurred for arranging the credit facilities from various financial institutions. For credit facilities consisting of both term and revolving debt, such costs are allocated to each sub-facility based upon the total borrowing capacity. For term debt, issuance costs are presented within the related long-term debt liability on the consolidated balance sheet and lender fees are presented as a direct deduction from the carrying amount. Both debt issuance costs and lender fees are amortized over the term of the related debt using the effective interest rate method. For revolving debt, issuance costs and lender fees are presented as a noncurrent asset and amortized over the term of the related debt on a straight-line basis. |
Fair value of financial instruments | Fair value of financial instruments The carrying amounts of cash and cash equivalents, accounts receivable, and accounts payable and accrued expenses approximate their fair values due to the short-term nature of these items. The carrying amounts of bank debt approximate their fair values as the stated interest rates approximate market rates currently available to the Company for loans with similar terms. See Note 9 Fair value of financial instruments to consolidated financial statements in Part IV, Item 15 “Exhibits, financial statement schedules”. |
Segment reporting | Segment reporting Operating segments are components of an enterprise for which separate financial information is available that is evaluated by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Utilizing these criteria, the Company manages its business on the basis of one operating segment and one reportable segment. It is impracticable for the Company to provide revenue by product line. |
Revenue recognition | Revenue recognition Revenue is recognized when control of promised goods or services is transferred to a customer in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. For the Company's retail customer transactions, a contract exists when a written purchase order is received, and control transfers at the time of shipment or the time of delivery, depending upon the specific terms of the customer arrangement. For the Company's direct-to-consumer transactions, a contract exists when an order is placed online, and control transfers at the time of delivery of merchandise to the customer. Nearly all of the Company’s transactions with its customers include a single performance obligation delivered at a point in time. The transaction price can include both fixed and variable consideration. In most cases, it is entirely comprised of variable consideration with the variability driven by expected sales discounts, markdown support, and other incentives and allowances offered to customers. These incentives may be explicit or implied by the Company's historical business practices. Generally, these commitments represent cash consideration paid to a customer and do not constitute a promised good or service. The amount of variable consideration is estimated at the time of sale based on either the expected amount or the most likely amount, depending on the nature of the variability. The Company regularly reviews and revises, when deemed necessary, its estimates of variable consideration, based on both customer-specific expectations as well as historical rates of realization. A provision for customer incentives and allowances is included on the consolidated balance sheet, net against accounts receivable. Disaggregated revenue The Company distributes product both through national and international retailers as well as direct-to-consumers through its e-commerce and e.l.f. stores channels (prior to February 2019). The marketing and consumer engagement benefits that the direct channels provide are integral to the Company’s brand and product development strategy and drive sales across channels. As such, the Company views its two primary distribution channels as components of one integrated business, as opposed to discrete revenue streams. The Company sells a variety of beauty products but does not consider them to be meaningfully different revenue streams given similarities in the nature of the products, the target consumer, and the innovation and distribution processes. See Segment Reporting section above for the table providing disaggregated revenue from contracts with customers by geographical market, as the nature, amount, timing and uncertainty of revenue and cash flows can differ between domestic and international customers. Contract assets and liabilities The Company extends credit to retail customers based upon an evaluation of their credit quality. The majority of retail customers obtain payment terms between 30-60 days, and a contract asset is recognized for the related accounts receivable. Additionally, shipping terms can vary, giving rise to contract liabilities for contracts where payment has been received in advance of delivery. The contract liability balance can vary significantly depending on the timing of when an order is placed and when shipment or delivery occurs. As of March 31, 2021, other than accounts receivable, the Company had no material contract assets, contract liabilities or deferred contract costs recorded on its consolidated balance sheet. Practical expedients The Company elected to record revenue net of taxes collected from customers and exclude the amounts from the transaction price. The Company includes in revenue any taxes assessed on the Company's total gross receipts for which it has the primary responsibility to pay the tax. The Company elected not to disclose revenues related to remaining performance obligations for partially completed or unfulfilled contracts that are expected to be fulfilled within one year as such amounts were insignificant. |
Income taxes | Income taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. Future income tax benefits are recognized to the extent that realization of such benefits is more likely than not. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in its income tax provision. |
Leases | Leases The Company has entered into operating lease agreements for office space, warehouse and a retail store location, equipment and software. Lease assets and liabilities are recognized at the present value of the minimum rental payments (excluding executory costs) and expected payment under any residual value guarantee at the lease commencement date. The Company uses its incremental borrowing rate to determine the present value of lease payments. Non-lease components primarily include payments for maintenance and utilities. The Company accounts for the non-lease components in a contract (e.g., common area maintenance) as part of the lease component by electing practical expedient for all leases of commercial office and warehouse space, as the non-lease components are not a significant portion of the total consideration in those agreements. The Company's lease terms include periods under options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Operating lease assets and liabilities are included on the Company's consolidated balance sheet beginning January 1, 2019. The current portion of the Company's operating lease liabilities is included in accrued expenses and other current liabilities, and the long-term portion is included in long-term operating lease liabilities. Finance lease assets are included in other assets. Finance lease liabilities are included in long-term debt and finance lease obligations. Operating lease expense is recognized on a straight-line basis over the lease term. |
Foreign currency | Foreign currency The functional currency of the Company’s foreign subsidiaries is the U.S. dollar. Transactions denominated in currencies other than the functional currency are recorded at exchange rates in effect on the date of the transaction. At the end of each reporting period, monetary assets and liabilities are remeasured to the functional currency using exchange rates in effect at the balance sheet date. Non-monetary assets and liabilities are remeasured at historical exchange rates. Transaction gains or losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in other income (expense), net in the consolidated statements of operations. |
Stock-based compensation | Stock-based compensation Stock-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized on a straight-line basis over the requisite service period, which is generally the award’s vesting period. The Company estimates the fair value of employee stock-based payment awards subject to only a service condition on the date of grant using the Black-Scholes valuation model. The Black-Scholes model requires the use of highly subjective and complex assumptions, including the option’s expected term and the price volatility of the underlying stock. The Company estimates the fair value of employee stock-based payment awards subject to market conditions using a Monte Carlo simulation model. Compensation expense for employee stock-based awards whose vesting is subject to the fulfillment of both a market condition and the occurrence of a performance condition is recognized on a graded-vesting basis at the time the achievement of the performance condition becomes probable. |
Advertising costs | Advertising costs Advertising costs, including promotions and print, are expensed as incurred or distributed. Advertising costs are included in selling, general, and administrative expenses in the accompanying consolidated statements of operations and amounted to approximately $30.3 million, $26.0 million, $10.2 million and $2.6 million in the years ended March 31, 2021, March 31, 2020, December 31, 2018 and the three-month transition period ended March 31, 2019, respectively. |
Net income (loss) per share | Net income (loss) per shareBasic net income (loss) per share is computed using net income (loss) available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share reflects the dilutive effects of stock options and restricted stock outstanding during the period, to the extent such securities would not be anti-dilutive and is determined using the treasury stock method. |
Recent accounting pronouncements | Recent accounting pronouncements The following table provides a brief description of recent accounting pronouncements that could have a material effect on the Company’s financial statements: Recently adopted accounting standards Standard Description Date of expected adoption/adoption Effect on the financial statements or other significant matters ASU 2018-15, Intangibles-Goodwill and Other- Internal-Use Software (Subtopic 350-40) The standard will require customers in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to capitalize as assets or expense as incurred. Certain implementation costs incurred during the application development stage would be deferred and capitalized (e.g., costs of integration with on-premises software, coding, configuration, customization). Other costs incurred during the preliminary project and post-implementation stages would be expensed (e.g., planning the project, training, maintenance after implementation, data conversion). The amendments in the ASU can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. April 1, 2020 The Company adopted ASU 2018-15 prospectively, and the adoption of the standard did not have a material impact on the Company’s consolidated financial statements. ASU 2019-12—Income Taxes (TOPIC 740): Simplifying the Accounting for Income Taxes The guidance eliminates certain exceptions related to intraperiod tax allocations, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences related to changes in ownership of equity method investments and foreign subsidiaries. The guidance also simplifies aspects of accounting for franchise taxes and enacted changes in tax laws, and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The new standard is effective for interim and annual periods beginning after December 15, 2020, and early adoption is permitted. January 1, 2021 The adoption of the standard had no impact on the Company’s consolidated financial statements. |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Concentrations of Risk | During the years ended March 31, 2021, March 31, 2020, December 31, 2018 and the three-month transition period ended March 31, 2019, two customers individually accounted for greater than 10% of the Company’s net sales as disclosed below: Year ended March 31, Three months ended March 31, Year ended 2021 2020 2019 2018 Walmart 26 % 31 % 36 % 30 % Target 22 % 22 % 17 % 21 % Customers that individually accounted for greater than 10% of the Company’s accounts receivable at the end of the periods as of March 31, 2021 and March 31, 2020, respectively, are as presented : March 31, 2021 March 31, 2020 Walmart 33 % 20 % Target 17 % 22 % Ulta Beauty 11 % * * Customer comprised less than 10% accounts receivable in the periods. |
Schedule of Useful Lives by Major Asset Class | Useful lives by major asset class are as follows: Estimated Machinery, equipment and software 3 - 5 years Leasehold improvements 5 years Furniture and fixtures 2 - 5 years Store fixtures 1 - 3 years |
Net Sales in United States and Outside of United States | During the years ended March 31, 2021, March 31, 2020, December 31, 2018 and the three-month transition period ended March 31, 2019, net sales in the United States and outside of the United States were as follows (in thousands): Year ended March 31, Three months ended March 31, Year ended 2021 2020 2019 2018 United States $ 284,203 $ 255,284 $ 59,797 $ 241,159 International 33,907 27,567 6,344 26,276 Total net sales $ 318,110 $ 282,851 $ 66,141 $ 267,435 |
Property and Equipment in United States and Outside of United States | As of March 31, 2021 and March 31, 2020, the Company had property and equipment in the United States and outside of the United States as follows (in thousands) : March 31, 2021 March 31, 2020 United States $ 13,524 $ 16,845 International 246 326 Total property and equipment, net $ 13,770 $ 17,171 |
Reconciliation of Sales Allowances | A reconciliation of the beginning and ending amounts of the reserve for sales adjustments for the years ended March 31, 2021, March 31, 2020, December 31, 2018 and the three-month transition period ended March 31, 2019 is as follows (in thousands): Balance as of December 31, 2017 $ 8,458 Charges 26,971 Deductions (27,655) Balance as of December 31, 2018 7,774 Charges 6,787 Deductions (8,016) Balance as of March 31, 2019 6,545 Charges 29,576 Deductions (28,508) Balance as of March 31, 2020 7,613 Charges 41,027 Deductions (36,727) Balance as of March 31, 2021 $ 11,913 |
Accounting Standards Update and Change in Accounting Principle | The following table provides a brief description of recent accounting pronouncements that could have a material effect on the Company’s financial statements: Recently adopted accounting standards Standard Description Date of expected adoption/adoption Effect on the financial statements or other significant matters ASU 2018-15, Intangibles-Goodwill and Other- Internal-Use Software (Subtopic 350-40) The standard will require customers in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to capitalize as assets or expense as incurred. Certain implementation costs incurred during the application development stage would be deferred and capitalized (e.g., costs of integration with on-premises software, coding, configuration, customization). Other costs incurred during the preliminary project and post-implementation stages would be expensed (e.g., planning the project, training, maintenance after implementation, data conversion). The amendments in the ASU can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. April 1, 2020 The Company adopted ASU 2018-15 prospectively, and the adoption of the standard did not have a material impact on the Company’s consolidated financial statements. ASU 2019-12—Income Taxes (TOPIC 740): Simplifying the Accounting for Income Taxes The guidance eliminates certain exceptions related to intraperiod tax allocations, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences related to changes in ownership of equity method investments and foreign subsidiaries. The guidance also simplifies aspects of accounting for franchise taxes and enacted changes in tax laws, and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The new standard is effective for interim and annual periods beginning after December 15, 2020, and early adoption is permitted. January 1, 2021 The adoption of the standard had no impact on the Company’s consolidated financial statements. |
Transition period (Tables)
Transition period (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Financial Statements | The Company is presenting its consolidated financial statements for the three-month transition period ended March 31, 2019. The following tables provide certain unaudited comparative financial information for the same period of the prior year. Consolidated Statements of Income (in thousands, except share and per share data) Three months ended March 31, (unaudited) 2019 2018 Net sales $ 66,141 $ 65,920 Cost of sales 25,650 25,712 Gross profit 40,491 40,208 Selling, general and administrative expenses 37,324 36,234 Restructuring expenses 22,176 — Operating income (loss) (19,009) 3,974 Other expense, net (315) (888) Interest expense, net (1,849) (1,963) Income (loss) before provision for income taxes (21,173) 1,123 Income tax benefit (provision) 3,259 (433) Net income (loss) $ (17,914) $ 690 Comprehensive income (loss) $ (17,914) $ 690 Net income (loss) per share: Basic $ (0.37) $ 0.01 Diluted $ (0.37) $ 0.01 Weighted average shares outstanding: Basic 48,022,926 46,435,560 Diluted 48,022,926 49,302,771 Consolidated Statements of Cash Flows (in thousands) Three months ended March 31, 2019 2018 Cash flows from operating activities: (unaudited) Net income (loss) $ (17,914) $ 690 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 7,544 4,288 Restructuring loss 22,176 — Stock-based compensation expense 3,683 3,640 Amortization of debt issuance costs and discount on debt 190 199 Deferred income taxes (3,433) 735 Other, net 242 142 Changes in operating assets and liabilities: Accounts receivable 4,215 12,771 Inventories 2,561 951 Prepaid expenses and other assets (1,732) (1,498) Accounts payable and accrued expenses (6,021) (16,891) Other liabilities (3,295) 3 Net cash provided by operating activities 8,216 5,030 Cash flows from investing activities: Purchase of property and equipment (3,400) (2,667) Net cash used in investing activities (3,400) (2,667) Cash flows from financing activities: Proceeds from revolving line of credit — 2,000 Repayment of revolving line of credit — (2,000) Repayment of long-term debt (2,063) (2,063) Cash received from issuance of common stock 115 212 Other, net (199) (97) Net cash used in financing activities (2,147) (1,948) Net increase in cash and cash equivalents 2,669 415 Cash and cash equivalents - beginning of period 51,205 10,059 Cash and cash equivalents - end of period $ 53,874 $ 10,474 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Schedule of Purchase Price Allocation | The following table presents the purchase price allocation recorded in the Company's consolidated balance sheet on acquisition date and upon finalization during the quarter ended September 30, 2020. A $0.3 million adjustment was recorded in the quarter ended September 30, 2020 and included in the table below (in thousands): Net tangible assets $ 1,978 Goodwill (1) 14,357 Intangible assets 12,340 Net deferred tax liability (2,752) Total purchase price consideration $ 25,923 (1) The goodwill represents the excess value over both tangible and intangible assets acquired and liabilities assumed. The goodwill recognized in this transaction is primarily attributable to expected operational synergies. None of the goodwill is expected to be deductible for tax purposes. Intangible Assets Fair Value Estimated Useful Life (in thousands) (in years) Customer relationships — retailers $ 8,800 10 Customer relationships — e-commerce 40 3 Trademarks 3,500 10 Total identified intangible assets $ 12,340 |
Goodwill and other intangible_2
Goodwill and other intangible assets (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Information Regarding Company's Goodwill and Intangible Assets | Information regarding the Company’s goodwill and intangible assets as of March 31, 2021 is as follows (in thousands): Estimated useful life Gross carrying amount Accumulated amortization Net carrying amount Customer relationships – retailers 10 years $ 77,600 $ (50,260) $ 27,340 Customer relationships – e-commerce 3 years 3,940 (3,915) 25 Trademarks 10 years 3,500 (379) 3,121 Total finite-lived intangibles 85,040 (54,554) 30,486 Trademarks Indefinite 63,800 — 63,800 Goodwill 171,620 — 171,620 Total goodwill and other intangibles $ 320,460 $ (54,554) $ 265,906 Information regarding the Company’s goodwill and intangible assets as of March 31, 2020 is as follows (in thousands): Estimated useful life Gross carrying amount Accumulated amortization Net carrying amount Customer relationships – retailers 10 years $ 77,600 $ (42,500) $ 35,100 Customer relationships – e-commerce 3 years 3,940 (3,901) 39 Trademarks 10 years 3,500 (29) 3,471 Total finite-lived intangibles 85,040 (46,430) 38,610 Trademarks Indefinite 63,800 — 63,800 Goodwill 171,321 — 171,321 Total goodwill and other intangibles $ 320,161 $ (46,430) $ 273,731 |
Estimated Future Amortization Expense Related to Finite-lived Intangible Assets | The estimated future amortization expense related to the finite-lived intangible assets, assuming no impairment as of March 31, 2021, is as follows (in thousands): The year ended March 31, 2021 2022 $ 8,123 2023 8,122 2024 6,963 2025 1,230 2026 1,230 Thereafter 4,818 Total $ 30,486 |
Property and equipment (Tables)
Property and equipment (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment as of March 31, 2021 and March 31, 2020 consists of the following (in thousands): March 31, 2021 March 31, 2020 Machinery, equipment and software $ 14,899 $ 15,327 Leasehold improvements 4,436 3,459 Furniture and fixtures 1,104 708 Store fixtures 10,785 10,302 Property and equipment, gross 31,224 29,796 Less: Accumulated depreciation and amortization (17,454) (12,625) Property and equipment, net $ 13,770 $ 17,171 |
Accrued expenses and other cu_2
Accrued expenses and other current liabilities (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Expenses | Accrued expenses and other current liabilities as of March 31, 2021 and March 31, 2020 consists of the following (in thousands): March 31, 2021 March 31, 2020 Accrued expenses $ 21,300 $ 12,518 Current portion of operating lease liabilities 4,292 3,083 Accrued compensation 10,805 9,542 Other current liabilities 4,954 1,022 Accrued expenses and other current liabilities $ 41,351 $ 26,165 |
Fair value of financial instr_2
Fair value of financial instruments (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value of Financial Liabilities | The following table sets forth the fair value of the Company’s financial liabilities by level within the fair value hierarchy as of March 31, 2021 (in thousands): Fair value measurements using Fair value Level 1 Level 2 Level 3 Financial liabilities: Long-term debt, including current portion (1) $ 126,789 $ — $ 126,789 $ — Total financial liabilities $ 126,789 $ — $ 126,789 $ — __________________________ (1) Of this amount, $16,281 is classified as current. The gross carrying amounts of the Company’s bank debt, before reduction of the debt issuance costs, approximate their fair values as the stated rates approximate market rates for loans with similar terms. The following table sets forth the fair value of the Company’s financial liabilities by level within the fair value hierarchy as of March 31, 2020 (in thousands): Fair value measurements using Fair value Level 1 Level 2 Level 3 Financial liabilities: Long-term debt, including current portion (1) $ 138,865 $ — $ 138,865 $ — Total financial liabilities $ 138,865 $ — $ 138,865 $ — __________________________ (1) Of this amount, $12,568 is classified as current. The gross carrying amounts of the Company’s bank debt, before reduction of the debt issuance costs, approximate their fair values as the stated rates approximate market rates for loans with similar terms. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | The Company’s outstanding debt as of March 31, 2021 and March 31, 2020 consists of the following (in thousands): March 31, 2021 March 31, 2020 Debt: Term loan $ 124,589 $ 135,853 Finance lease obligations 2,200 3,012 Total debt 126,789 138,865 Less: debt issuance costs (253) (209) Total debt, net of issuance costs 126,536 138,656 Less: current portion (16,281) (12,568) Long-term portion of debt $ 110,255 $ 126,088 |
Schedule of Aggregate Future Minimum Principal Payments on the Term Loan | Aggregate future minimum principal payments are as follows (in thousands): The year ended March 31, 2021 Term Loan 2022 $ 15,469 2023 109,725 Total $ 125,194 |
Schedule of Components of Interest Expense | The components of interest expense, net are as follows (in thousands) : Year ended Three months ended March 31, Year ended 2021 2020 2019 2018 Interest on term loan debt $ 2,912 $ 6,096 $ 1,774 $ 6,774 Amortization of debt issuance costs 847 747 190 792 Interest on revolving line of credit 199 149 40 132 Interest on finance leases 137 179 50 155 Interest income (5) (863) (205) (37) Interest expense, net $ 4,090 $ 6,308 $ 1,849 $ 7,816 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income (Loss) Before Income Taxes | The components of income (loss) before provision for income taxes are as follows (in thousands): Year ended Three months ended March 31, Year ended 2021 2020 2019 2018 Domestic $ 3,715 $ 24,479 $ (21,673) $ 17,405 Foreign (25) (410) 500 551 Total $ 3,690 $ 24,069 $ (21,173) $ 17,956 |
Schedule of Components of (Provision) Benefit for Income Taxes | The components of the benefit (provision) for income taxes are as follows (in thousands): Year ended Three months ended March 31, Year ended 2021 2020 2019 2018 Current: U.S. federal $ (4,772) $ (2,681) $ (13) $ (2,414) State (1,186) (1,066) (139) (948) Foreign (84) 5 (22) (8) Total current (6,042) (3,742) (174) (3,370) Deferred: U.S. federal 7,159 (2,532) 3,096 1,005 State 1,293 99 368 101 Foreign 132 (10) (31) (167) Total deferred 8,584 (2,443) 3,433 939 Total (provision) benefit for income taxes $ 2,542 $ (6,185) $ 3,259 $ (2,431) |
Schedule of Reconciliation of Federal Statutory Rate to Company's Effective Tax Rate | The following table presents a reconciliation of the federal statutory rate to the Company’s effective tax rate : Year ended Three months ended March 31, Year ended 2021 2020 2019 2018 Federal statutory rate 21.0 % 21.0 % 21.0 % 21.0 % State tax, net of federal benefit (10.6) % 3.7 % 1.2 % 2.6 % State tax deferred rate change, net of federal benefit (1.6) % 0.1 % — % 0.9 % Nondeductible business expenses 2.1 % 0.8 % (0.1) % 1.4 % Nondeductible employee compensation 9.1 % 0.4 % — % — % Provision-to-return adjustment 1.5 % — % — % (3.9) % Uncertain tax positions 1.0 % (0.2) % (0.1) % (1.3) % Stock based compensation (90.7) % (0.8) % (6.1) % (8.6) % Others (0.7) % 0.7 % (0.5) % 1.4 % Effective tax rate (68.9) % 25.7 % 15.4 % 13.5 % |
Schedule of Components of Net Deferred Taxes | The components of net deferred taxes arising from temporary differences are as follows (in thousands): March 31, 2021 March 31, 2020 Deferred tax assets: Compensation $ 624 $ 760 Inventories and receivables 5,710 3,472 Accrued expenses 2,067 1,996 Stock compensation 7,247 3,706 Net operating losses 272 92 Right of use liability 5,731 3,443 Other 560 558 Deferred tax assets 22,211 14,027 Deferred tax liabilities: Goodwill 4,090 3,468 Fixed assets 2,506 3,294 Intangible assets 23,162 25,287 Right of use asset 5,294 3,292 Other 463 563 Deferred tax liabilities 35,515 35,904 Net deferred tax liabilities $ 13,304 $ 21,877 The deferred tax assets and liabilities are reported in the accompanying balance sheets as follows (in thousands) : March 31, 2021 March 31, 2020 Deferred tax assets $ 175 $ 15 Deferred tax liabilities 13,479 21,892 Net deferred tax liabilities $ 13,304 $ 21,877 |
Schedule of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): Year ended Three months ended March 31, Year ended 2021 2020 2019 2018 Balance at beginning of year $ 477 $ 581 $ 571 $ 764 Increases for prior year tax positions 6 32 — — Increases for current year tax positions 65 90 10 173 Decreases for prior year tax positions — — — (8) Decreases due to settlements (27) (29) — — Decreases due to statutes lapsing (63) (197) — (358) Balance at end of year $ 458 $ 477 $ 581 $ 571 |
Stock-based compensation (Table
Stock-based compensation (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock Option Activity and Related Information | The following table summarizes the activity for options that vest solely based upon the satisfaction of a service condition as follows: Options Weighted-average exercise price Weighted-average remaining Aggregate intrinsic values (in thousands) (1) Balance as of December 31, 2018 2,746,670 $ 12.91 Granted 115,100 7.95 Canceled or forfeited (286,191) 16.98 Balance as of March 31, 2019 2,575,579 12.24 6.9 $ 6,958 Granted 202,560 14.18 Exercised (334,572) 4.08 Canceled or forfeited (444,014) 15.07 Balance as of March 31, 2020 1,999,553 13.17 6.8 $ 3,773 Exercised (337,376) 4.36 Canceled or forfeited (21,196) 23.24 Balance as of March 31, 2021 1,640,981 $ 14.86 6.1 $ 19,650 Exercisable, March 31, 2021 1,312,728 $ 14.99 5.6 $ 15,549 (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the Company's closing stock price of $26.83, as reported on the New York Stock Exchange on March 31, 2021. Options Weighted-average exercise price Weighted-average remaining Aggregate intrinsic values (in thousands) (1) Balance as of December 31, 2018 1,482,782 $ 8.94 Exercised (62,450) 1.84 Canceled or forfeited (96,900) 26.84 Balance as of March 31, 2019 1,323,432 7.96 6.0 $ 8,646 Exercised (53,100) 2.40 Canceled or forfeited (17,400) 26.84 Balance as of March 31, 2020 1,252,932 7.97 5.0 $ 7,487 Exercised (144,340) 1.89 Balance as of March 31, 2021 1,108,592 $ 8.72 4.0 $ 20,077 Exercisable, March 31, 2021 808,592 $ 2.00 3.3 $ 20,077 (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the Company's closing stock price of $26.83, as reported on the New York Stock Exchange on March 31, 2021. |
Summary of Additional Information Relating to Stock Options Activity | Additional information relating to service-based options is as follows (in thousands, except per share data): Year ended Three months ended March 31, Year ended 2021 2020 2019 2018 Stock-based compensation expense $ 1,671 $ 2,308 $ 590 $ 3,219 Intrinsic value of options exercised 5,620 3,580 — 2,890 Weighted-average grant date fair value $ — $ 5.55 $ 3.12 $ 6.81 Additional information relating to options that vest based upon the satisfaction of performance or market conditions is as follows (in thousands, except per share data): Year ended Three months ended March 31, Year ended 2021 2020 2019 2018 Stock-based compensation expense $ — $ — $ — $ 1,168 Intrinsic value of options exercised 3,117 609 419 8,669 Weighted-average grant date fair value $ — $ — $ — $ — |
Summary of Weighted-Average Assumptions | The fair value of service-based stock options granted were calculated using the following weighted-average assumptions: Year ended Three months ended March 31, Year ended 2020 2019 2018 Expected term (in years) 6.5 6.3 6.3 Expected volatility 35.57 % 35.13 % 32.02 % Risk-free interest rate 2.07 % 2.55 % 2.68 % Expected dividend yield — % — % — % |
Summary of Restricted Stock Unit Activity and Related Information | The following table summarizes the activities for restricted stock awards (“RSAs”) and restricted stock units (“RSUs”) as follows: Shares of restricted stock outstanding Weighted-average grant date fair value Balance as of December 31, 2018 2,036,124 $ 20.01 Granted (1) 1,464,710 7.64 Vested (396,514) 21.79 Canceled or forfeited (317,922) 20.06 Balance as of March 31, 2019 2,786,398 13.26 Granted 673,461 14.26 Vested (762,818) 15.97 Canceled or forfeited (385,273) 12.66 Balance as of March 31, 2020 2,311,768 12.86 Granted 1,206,870 17.45 Vested (1,044,052) 13.97 Canceled or forfeited (184,971) 14.19 Balance as of March 31, 2021 2,289,615 $ 14.67 (1) Includes restricted stock awards granted in the period ending March 31, 2019 that vest based upon the achievement of a specified stock price and satisfaction of a service condition. The fair values and derived service periods were determined using a Monte Carlo simulation model. |
Disclosure of Additional Information | Additional information relating to RSAs and RSUs is as follows (in thousands): Year ended Three months ended March 31, Year ended 2021 2020 2019 2018 Stock-based compensation expense $ 18,012 $ 13,181 $ 3,093 $ 12,434 Intrinsic value of restricted stock released $ 24,328 $ 12,448 $ 3,387 $ 6,280 |
Restructuring and other relat_2
Restructuring and other related costs (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Expenses | The following table presents the restructuring expense incurred during the year ended March 31, 2021 (in thousands) in connection with the 2021 Restructuring Plan: March 31, 2021 Property, plant and equipment impairment $ 2,097 Inventory disposal 343 Employee severance and related expenses 23 Other costs, including other asset write-offs 178 Total $ 2,641 March 31, 2020 Three months ended March 31, 2020 2019 Acceleration of rent expense $ — $ 16,106 Acceleration of depreciation expense — 5,377 Gain from extinguishment of lease liabilities (7,733) (1,866) Employee severance and related expenses — 600 Other costs, including other asset write-offs 1,751 1,959 Total $ (5,982) $ 22,176 |
Restructuring Related Liabilities | The following table presents a roll-forward of the Company's restructuring liability for the three-month transition period ended March 31, 2019 and the year ended March 31, 2020, respectively (in thousands): Employee severance and related expenses Other costs Total December 31, 2018 $ — $ — $ — Costs incurred 600 1,118 1,718 Cash disbursements (504) (443) (947) Other adjustments — — — March 31, 2019 $ 96 $ 675 $ 771 Costs incurred and other adjustments (22) 1,634 1,612 Cash disbursements (74) (2,309) (2,383) March 31, 2020 $ — $ — $ — |
Net income (loss) per share (Ta
Net income (loss) per share (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Reconciliation of Numerator and Denominator in Basic and Diluted Net Income (Loss) Per Common Share Computations | The following is a reconciliation of the numerator and denominator in the basic and diluted net income (loss) per common share computations (in thousands, except share and per share data): Year ended March 31, Three months ended March 31, Year ended 2021 2020 2019 2018 Numerator: Net income (loss) $ 6,232 $ 17,884 $ (17,914) $ 15,525 Denominator: Weighted average common shares outstanding — basic 49,377,410 48,498,813 48,022,926 46,828,798 Dilutive common equivalent shares from equity awards 2,616,735 2,318,330 — 2,439,818 Weighted average common shares outstanding —diluted 51,994,145 50,817,143 48,022,926 49,268,616 Net income (loss) per share: Basic $ 0.13 $ 0.37 $ (0.37) $ 0.33 Diluted $ 0.12 $ 0.35 $ (0.37) $ 0.32 Weighted average anti-dilutive shares from outstanding equity awards excluded from diluted earnings per share 1,038,810 2,143,672 6,588,523 3,373,529 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Balance Sheet Information | A reconciliation of the balance sheet line items that were impacted or created as a result of the Company’s adoption of ASC 842 as of March 31, 2021 and March 31, 2020 is as follows (in thousands): Classification March 31, 2021 March 31, 2020 Assets Operating lease assets (a) Other assets $ 22,691 $ 13,668 Finance lease assets (b) Other assets 1,100 2,094 Total leased assets $ 23,791 $ 15,762 Liabilities Current Operating (a) Accrued expenses and other current liabilities $ 4,292 $ 3,083 Finance Current portion of long-term debt and finance lease obligations 812 812 Noncurrent Operating (a) Long-term operating lease obligations 20,084 11,239 Finance Long-term debt and finance lease obligations 1,388 2,200 Total lease liabilities $ 26,576 $ 17,334 ___________________ (a) In accordance with ASC 842, $15.7 million of ROU assets related to operating leases were derecognized in the three-month transition period ended March 31, 2019 in connection with the 2019 Restructuring Plan. Pursuant to ASC 842, each related lease liability is derecognized only after the Company is released from that liability. The Company recognized a gain of $1.9 million in restructuring expenses related to the derecognition of lease liabilities in connection with the 2019 Restructuring Plan in the three-month transition period ended March 31, 2019. See Note 15 Restructuring and other related costs to consolidated financial statements in Part IV, Item 15 “Exhibits, financial statement schedules” under the heading "2019 Restructuring Plan" for the 2019 Restructuring Plan and the gain recorded on lease liabilities derecognized in the year ended March 31, 2020 and the three-month transition period ended March 31, 2019, respectively. During the year ended March 31, 2021, the Company implemented the 2021 Restructuring Plan to record the charge for impairment of ROA assets related to the manufacturing plant closure in accordance with the equipment lease agreements. The amount was immaterial as of March 31, 2021. See Note 15 Restructuring and other related costs to consolidated financial statements in Part IV, Item 15 “Exhibits, financial statement schedules” under the heading "2021 Restructuring Plan" for further details. (b) Finance leases are recorded net of accumulated amortization of $3.2 million and $2.9 million as of March 31, 2021 and March 31, 2020, respectively. |
Components of Lease Expense | For the years ended March 31, 2021, March 31, 2020 and the transition period for the three-month transition period ended March 31, 2019, the components of operating and finance lease costs were as follows (in thousands): Year ended March 31, Three months ended March 31, Classification 2021 2020 2019 Operating lease cost Selling, general and administrative (“SG&A”) expenses $ 4,756 $ 2,950 $ 1,195 Gain from extinguishment of lease liabilities Restructuring income — (7,733) (1,866) Acceleration of rent expense Restructuring expenses — — 16,106 Finance lease cost Amortization of leased assets SG&A expenses 970 996 254 Interest on lease liabilities Interest expense, net 137 179 50 Total lease cost (gain) $ 5,863 $ (3,608) $ 15,739 As of March 31, 2021 and March 31, 2020, the weighted average remaining lease term (in years) and discount rate were as follows: March 31, 2021 March 31, 2020 Weighted-average remaining lease term Operating leases 6.0 years 6.8 years Finance leases 2.3 years 3.3 years Weighted-average discount rate Operating leases 2.8 % 3.7 % Finance leases 5.2 % 5.2 % |
Maturities of Operating Lease Liabilities | As of March 31, 2021, the aggregate future minimum lease payments under non-cancellable leases presented in accordance with ASC 842 are as follows (in thousands): Operating Finance Total 2022 4,823 907 5,730 2023 4,857 1,208 6,065 2024 4,884 235 5,119 2025 4,075 — 4,075 2026 3,091 — 3,091 Thereafter 4,605 — 4,605 Total lease payments 26,335 2,350 28,685 Less: Interest 1,959 150 Present value of lease liabilities $ 24,376 $ 2,200 |
Maturities of Finance Lease Liabilities | As of March 31, 2021, the aggregate future minimum lease payments under non-cancellable leases presented in accordance with ASC 842 are as follows (in thousands): Operating Finance Total 2022 4,823 907 5,730 2023 4,857 1,208 6,065 2024 4,884 235 5,119 2025 4,075 — 4,075 2026 3,091 — 3,091 Thereafter 4,605 — 4,605 Total lease payments 26,335 2,350 28,685 Less: Interest 1,959 150 Present value of lease liabilities $ 24,376 $ 2,200 |
Quarterly financial summary (Ta
Quarterly financial summary (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly financial summary | Unaudited quarterly results for the years ended March 31, 2021, March 31, 2020, December 31, 2018 and the three-month transition period ended March 31, 2019, respectively, were as follows (in thousands, except per share data): June 30, 2020 September 30, 2020 December 31, 2020 March 31, 2021 (unaudited) Net sales 64,527 72,350 88,562 92,671 Gross profit 43,341 47,138 57,119 58,600 Net income 1,512 447 4,297 (24) Net income per share: Basic $ 0.03 $ 0.01 $ 0.09 $ 0.00 Diluted $ 0.03 $ 0.01 $ 0.08 $ 0.00 March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 March 31, 2020 (unaudited) (unaudited) Net sales $ 65,920 $ 59,055 $ 63,889 $ 78,571 $ 66,141 $ 59,764 $ 67,615 $ 80,760 $ 74,712 Gross profit $ 40,208 $ 36,645 $ 38,969 $ 46,919 $ 40,491 $ 37,191 $ 43,348 $ 52,520 $ 48,064 Net income (loss) $ 690 $ 1,248 $ 3,915 $ 9,672 $ (17,914) $ 3,706 $ 6,517 $ 8,002 $ (341) Net income (loss) per share: Basic $ 0.01 $ 0.03 $ 0.08 $ 0.20 $ (0.37) $ 0.08 $ 0.13 $ 0.16 $ (0.01) Diluted $ 0.01 $ 0.03 $ 0.08 $ 0.20 $ (0.37) $ 0.07 $ 0.13 $ 0.16 $ (0.01) |
Summary of significant accoun_4
Summary of significant accounting policies - Additional Information (Details) | 3 Months Ended | 12 Months Ended | ||||||||||||||
Mar. 31, 2021USD ($)distribution_channel | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2021USD ($)segmentdistribution_channel | Mar. 31, 2020USD ($) | Dec. 31, 2018USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||||
Allowance for doubtful accounts | $ 200,000 | $ 1,000,000 | $ 200,000 | $ 1,000,000 | ||||||||||||
Sales allowances | 11,900,000 | 7,600,000 | 11,900,000 | 7,600,000 | ||||||||||||
Reserve for excess and obsolete inventory reduction | (3,600,000) | (1,400,000) | (3,600,000) | (1,400,000) | ||||||||||||
Property and equipment, net | $ 13,770,000 | 17,171,000 | 13,770,000 | 17,171,000 | ||||||||||||
Impairment of long-lived assets held-for-use | $ 0 | $ 0 | 0 | $ 0 | ||||||||||||
Number of operating segments | segment | 1 | |||||||||||||||
Number of reporting segments | segment | 1 | |||||||||||||||
Number of distribution channels | distribution_channel | 2 | 2 | ||||||||||||||
Net sales | $ 92,671,000 | $ 88,562,000 | $ 72,350,000 | $ 64,527,000 | 74,712,000 | $ 80,760,000 | $ 67,615,000 | $ 59,764,000 | 66,141,000 | $ 78,571,000 | $ 63,889,000 | $ 59,055,000 | $ 65,920,000 | $ 318,110,000 | 282,851,000 | 267,435,000 |
Cost of sales | 25,650,000 | $ 25,712,000 | 111,912,000 | 101,728,000 | 104,694,000 | |||||||||||
Advertising costs | $ 2,600,000 | $ 30,300,000 | $ 26,000,000 | $ 10,200,000 | ||||||||||||
Revenue | Two Customers | ||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||||
Concentration risk percentage | 10.00% | 10.00% | 10.00% | 10.00% | ||||||||||||
Accounts Receivable | ||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||||
Concentration risk percentage | 10.00% | 10.00% | ||||||||||||||
Retail Product Displays | ||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||||
Property and equipment, net | $ 9,700,000 | $ 10,100,000 | $ 9,700,000 | $ 10,100,000 | ||||||||||||
Estimated useful lives | 3 years | |||||||||||||||
Amortization expense | $ 1,500,000 | $ 5,200,000 | 6,000,000 | $ 3,100,000 | ||||||||||||
Minimum | ||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||||
Finite-lived intangibles, estimated useful life | 3 years | |||||||||||||||
Maximum | ||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||||
Finite-lived intangibles, estimated useful life | 10 years | |||||||||||||||
Shipping and Handling | ||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||||
Net sales | 200,000 | $ 800,000 | 700,000 | 500,000 | ||||||||||||
Cost of sales | $ 4,900,000 | $ 26,400,000 | $ 19,800,000 | $ 20,900,000 |
Summary of significant accoun_5
Summary of significant accounting policies - Schedule of Concentrations of Risk (Details) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2018 | |
Accounts Receivable | ||||
Product Information [Line Items] | ||||
Concentration risk percentage | 10.00% | 10.00% | ||
Customer Concentration Risk | Revenue | Walmart | ||||
Product Information [Line Items] | ||||
Concentration risk percentage | 36.00% | 26.00% | 31.00% | 30.00% |
Customer Concentration Risk | Revenue | Target | ||||
Product Information [Line Items] | ||||
Concentration risk percentage | 17.00% | 22.00% | 22.00% | 21.00% |
Customer Concentration Risk | Accounts Receivable | Walmart | ||||
Product Information [Line Items] | ||||
Concentration risk percentage | 33.00% | 20.00% | ||
Customer Concentration Risk | Accounts Receivable | Target | ||||
Product Information [Line Items] | ||||
Concentration risk percentage | 17.00% | 22.00% | ||
Customer Concentration Risk | Accounts Receivable | Ulta Beauty | ||||
Product Information [Line Items] | ||||
Concentration risk percentage | 11.00% |
Summary of significant accoun_6
Summary of significant accounting policies - Schedule of Useful Lives by Major Asset Class (Details) | 12 Months Ended |
Mar. 31, 2021 | |
Machinery, equipment and software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Machinery, equipment and software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Furniture and fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 2 years |
Furniture and fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Store fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 1 year |
Store fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Summary of significant accoun_7
Summary of significant accounting policies - Net Sales in United States and Outside of United States (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||
Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||||
Net sales | $ 92,671 | $ 88,562 | $ 72,350 | $ 64,527 | $ 74,712 | $ 80,760 | $ 67,615 | $ 59,764 | $ 66,141 | $ 78,571 | $ 63,889 | $ 59,055 | $ 65,920 | $ 318,110 | $ 282,851 | $ 267,435 |
United States | ||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||||
Net sales | 59,797 | 284,203 | 255,284 | 241,159 | ||||||||||||
International | ||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||||
Net sales | $ 6,344 | $ 33,907 | $ 27,567 | $ 26,276 |
Summary of significant accoun_8
Summary of significant accounting policies - Long-Lived Assets in United States and Outside of United States (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | $ 13,770 | $ 17,171 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 13,524 | 16,845 |
International | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | $ 246 | $ 326 |
Summary of significant accoun_9
Summary of significant accounting policies - Reconciliation of Sales Allowances (Details) - Sales Allowances - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2018 | |
Sales Allowances [Roll Forward] | ||||
Beginning balance | $ 7,774 | $ 7,613 | $ 6,545 | $ 8,458 |
Charges | 6,787 | 41,027 | 29,576 | 26,971 |
Deductions | (8,016) | (36,727) | (28,508) | (27,655) |
Ending balance | $ 6,545 | $ 11,913 | $ 7,613 | $ 7,774 |
Transition period (Details)
Transition period (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||
Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2018 | |
Income Statement [Abstract] | ||||||||||||||||
Net sales | $ 92,671 | $ 88,562 | $ 72,350 | $ 64,527 | $ 74,712 | $ 80,760 | $ 67,615 | $ 59,764 | $ 66,141 | $ 78,571 | $ 63,889 | $ 59,055 | $ 65,920 | $ 318,110 | $ 282,851 | $ 267,435 |
Cost of sales | 25,650 | 25,712 | 111,912 | 101,728 | 104,694 | |||||||||||
Gross profit | 58,600 | 57,119 | 47,138 | 43,341 | 48,064 | 52,520 | 43,348 | 37,191 | 40,491 | 46,919 | 38,969 | 36,645 | 40,208 | 206,198 | 181,123 | 162,741 |
Selling, general, and administrative expenses | 37,324 | 36,234 | 194,157 | 157,155 | 136,579 | |||||||||||
Restructuring expense (income) | 22,176 | 0 | 2,641 | (5,982) | 0 | |||||||||||
Operating income (loss) | (19,009) | 3,974 | 9,400 | 29,950 | 26,162 | |||||||||||
Other expense, net | (315) | (888) | (1,620) | 426 | (390) | |||||||||||
Interest expense, net | (1,849) | (1,963) | (4,090) | (6,307) | (7,816) | |||||||||||
Income (loss) before provision for income taxes | (21,173) | 1,123 | 3,690 | 24,069 | 17,956 | |||||||||||
Income tax benefit (provision) | 3,259 | (433) | 2,542 | (6,185) | (2,431) | |||||||||||
Net income (loss) | $ (24) | $ 4,297 | $ 447 | $ 1,512 | $ (341) | $ 8,002 | $ 6,517 | $ 3,706 | (17,914) | $ 9,672 | $ 3,915 | $ 1,248 | 690 | 6,232 | 17,884 | 15,525 |
Comprehensive income (loss) | $ (17,914) | $ 690 | $ 6,232 | $ 17,884 | $ 15,525 | |||||||||||
Basic (in USD per share) | $ 0 | $ 0.09 | $ 0.01 | $ 0.03 | $ (0.01) | $ 0.16 | $ 0.13 | $ 0.08 | $ (0.37) | $ 0.20 | $ 0.08 | $ 0.03 | $ 0.01 | $ 0.13 | $ 0.37 | $ 0.33 |
Diluted (in USD per share) | $ 0 | $ 0.08 | $ 0.01 | $ 0.03 | $ (0.01) | $ 0.16 | $ 0.13 | $ 0.07 | $ (0.37) | $ 0.20 | $ 0.08 | $ 0.03 | $ 0.01 | $ 0.12 | $ 0.35 | $ 0.32 |
Basic (in shares) | 48,022,926 | 46,435,560 | 49,377,410 | 48,498,813 | 46,828,798 | |||||||||||
Diluted (in shares) | 48,022,926 | 49,302,771 | 51,994,145 | 50,817,143 | 49,268,616 | |||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income (loss) | $ (24) | $ 4,297 | $ 447 | $ 1,512 | $ (341) | $ 8,002 | $ 6,517 | $ 3,706 | $ (17,914) | $ 9,672 | $ 3,915 | $ 1,248 | $ 690 | $ 6,232 | $ 17,884 | $ 15,525 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||||||
Depreciation and amortization | 7,544 | 4,288 | 25,179 | 22,843 | 17,861 | |||||||||||
Restructuring loss | 22,176 | 0 | 2,641 | (5,982) | 0 | |||||||||||
Stock-based compensation expense | 3,683 | 3,640 | 19,682 | 15,488 | 16,821 | |||||||||||
Amortization of debt issuance costs and discount on debt | 190 | 199 | 847 | 747 | 792 | |||||||||||
Deferred income taxes | (3,433) | 735 | (8,584) | 2,443 | (939) | |||||||||||
Other, net | 242 | 142 | 383 | 873 | 476 | |||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Accounts receivable | 4,215 | 12,771 | (10,529) | 2,504 | 7,649 | |||||||||||
Inventories | 2,561 | 951 | (10,937) | (435) | 16,338 | |||||||||||
Prepaid expenses and other assets | (1,732) | (1,498) | (9,659) | (6,500) | (8,484) | |||||||||||
Accounts payable and accrued expenses | (6,021) | (16,891) | 17,472 | 5,962 | (10,251) | |||||||||||
Other liabilities | (3,295) | 3 | (3,252) | (11,514) | (206) | |||||||||||
Net cash provided by operating activities | 8,216 | 5,030 | 29,475 | 44,313 | 55,582 | |||||||||||
Cash flows from investing activities: | ||||||||||||||||
Purchase of property and equipment | (3,400) | (2,667) | (6,474) | (9,422) | (8,872) | |||||||||||
Net cash used in investing activities | (3,400) | (2,667) | (6,474) | (35,345) | (8,872) | |||||||||||
Cash flows from financing activities: | ||||||||||||||||
Proceeds from revolving line of credit | 0 | 2,000 | 20,000 | 0 | 2,000 | |||||||||||
Repayment of revolving line of credit | 0 | (2,000) | (20,000) | 0 | (2,000) | |||||||||||
Repayment of long-term debt | (2,063) | (2,063) | (11,756) | (9,488) | (8,250) | |||||||||||
Cash received from issuance of common stock | 115 | 212 | 1,503 | 1,488 | 3,176 | |||||||||||
Other, net | (199) | (97) | (813) | (771) | (490) | |||||||||||
Net cash used in financing activities | (2,147) | (1,948) | (11,400) | (16,675) | (5,564) | |||||||||||
Net increase (decrease) in cash and cash equivalents | 2,669 | 415 | 11,601 | (7,707) | 41,146 | |||||||||||
Cash and cash equivalents - beginning of period | $ 46,167 | $ 53,874 | 51,205 | $ 10,474 | 10,059 | 46,167 | 53,874 | 10,059 | ||||||||
Cash and cash equivalents - end of period | $ 57,768 | $ 46,167 | $ 53,874 | $ 51,205 | $ 10,474 | $ 57,768 | $ 46,167 | $ 51,205 |
Investment in equity securiti_2
Investment in equity securities - Additional Information (Details) $ in Millions | Apr. 14, 2017USD ($) |
Social Media Analytics Company | |
Debt and Equity Securities, FV-NI [Line Items] | |
Amount invested | $ 2.9 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Feb. 24, 2020 | Sep. 30, 2020 | Mar. 31, 2021 | Mar. 31, 2020 |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||
Goodwill | $ 171,620 | $ 171,321 | |||
W3LL People | |||||
Business Acquisition [Line Items] | |||||
Purchase price | $ 25,900 | ||||
Goodwill adjustment | $ 300 | ||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||
Net tangible assets | $ 1,978 | 1,978 | |||
Goodwill | 14,357 | 14,357 | |||
Intangible assets | 12,340 | 12,340 | |||
Net deferred tax liability | (2,752) | (2,752) | |||
Total purchase price consideration | 25,923 | 25,923 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||
Intangible assets | 12,340 | 12,340 | |||
Customer relationships — retailers | W3LL People | |||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||
Intangible assets | 8,800 | 8,800 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||
Intangible assets | $ 8,800 | 8,800 | |||
Estimated Useful Life | 10 years | ||||
Customer relationships — e-commerce | W3LL People | |||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||
Intangible assets | $ 40 | 40 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||
Intangible assets | $ 40 | 40 | |||
Estimated Useful Life | 3 years | ||||
Trademarks | W3LL People | |||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||
Intangible assets | $ 3,500 | 3,500 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||
Intangible assets | $ 3,500 | $ 3,500 | |||
Estimated Useful Life | 10 years |
Goodwill and other intangible_3
Goodwill and other intangible assets - Information Regarding Company's Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Schedule Of Intangible Assets And Goodwill [Line Items] | ||
Finite-lived intangibles, Gross carrying amount | $ 85,040 | $ 85,040 |
Finite-lived intangibles, Accumulated amortization | (54,554) | (46,430) |
Finite-lived intangibles, Net carrying amount | 30,486 | 38,610 |
Goodwill, Gross carrying amount | 171,620 | 171,321 |
Goodwill, Accumulated amortization | 0 | 0 |
Goodwill, Net carrying amount | 171,620 | 171,321 |
Goodwill and other intangibles, Gross carrying amount | 320,460 | 320,161 |
Goodwill and other intangibles, Accumulated amortization | (54,554) | (46,430) |
Goodwill and other intangibles, Net carrying amount | 265,906 | 273,731 |
Trademarks | ||
Schedule Of Intangible Assets And Goodwill [Line Items] | ||
Indefinite-lived intangibles, gross carrying amount | 63,800 | 63,800 |
Indefinite lived intangibles, Net carrying amount | 63,800 | 63,800 |
Customer relationships – retailers | ||
Schedule Of Intangible Assets And Goodwill [Line Items] | ||
Finite-lived intangibles, Gross carrying amount | 77,600 | 77,600 |
Finite-lived intangibles, Accumulated amortization | (50,260) | (42,500) |
Finite-lived intangibles, Net carrying amount | $ 27,340 | $ 35,100 |
Finite-lived intangibles, estimated useful life | 10 years | 10 years |
Customer relationships — e-commerce | ||
Schedule Of Intangible Assets And Goodwill [Line Items] | ||
Finite-lived intangibles, Gross carrying amount | $ 3,940 | $ 3,940 |
Finite-lived intangibles, Accumulated amortization | (3,915) | (3,901) |
Finite-lived intangibles, Net carrying amount | $ 25 | $ 39 |
Finite-lived intangibles, estimated useful life | 3 years | 3 years |
Trademarks | ||
Schedule Of Intangible Assets And Goodwill [Line Items] | ||
Finite-lived intangibles, Gross carrying amount | $ 3,500 | $ 3,500 |
Finite-lived intangibles, Accumulated amortization | (379) | (29) |
Finite-lived intangibles, Net carrying amount | $ 3,121 | $ 3,471 |
Finite-lived intangibles, estimated useful life | 10 years | 10 years |
Goodwill and other intangible_4
Goodwill and other intangible assets - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Depreciation and amortization | $ 1,700,000 | $ 8,100,000 | $ 7,000,000 | $ 7,100,000 |
Impairment of finite-lived intangible assets | $ 0 |
Goodwill and other intangible_5
Goodwill and other intangible assets - Estimated Future Amortization Expense Related to Finite-lived Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2022 | $ 8,123 | |
2023 | 8,122 | |
2024 | 6,963 | |
2025 | 1,230 | |
2026 | 1,230 | |
Thereafter | 4,818 | |
Finite-lived intangibles, Net carrying amount | $ 30,486 | $ 38,610 |
Property and equipment - Summar
Property and equipment - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 31,224 | $ 29,796 |
Less: Accumulated depreciation and amortization | (17,454) | (12,625) |
Property and equipment, net | 13,770 | 17,171 |
Machinery, equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 14,899 | 15,327 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4,436 | 3,459 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,104 | 708 |
Store fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 10,785 | $ 10,302 |
Property and equipment - Additi
Property and equipment - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation and amortization expense | $ 1.7 | $ 6.7 | $ 6.3 | $ 7.6 |
Accrued expenses and other cu_3
Accrued expenses and other current liabilities - Summary of Accrued Expenses (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Payables and Accruals [Abstract] | ||
Accrued expenses | $ 21,300 | $ 12,518 |
Current portion of operating lease liabilities | 4,292 | 3,083 |
Accrued compensation | 10,805 | 9,542 |
Other current liabilities | 4,954 | 1,022 |
Accrued expenses and other current liabilities | $ 41,351 | $ 26,165 |
Fair value of financial instr_3
Fair value of financial instruments - Summary of Fair Value of Financial Liabilities (Details) - Fair Value Measurements, Recurring Basis - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Financial liabilities: | ||
Long-term debt, including current portion | $ 126,789 | $ 138,865 |
Total financial liabilities | 126,789 | 138,865 |
Current portion of long-term debt | 16,281 | 12,568 |
Level 1 | ||
Financial liabilities: | ||
Long-term debt, including current portion | 0 | 0 |
Total financial liabilities | 0 | 0 |
Level 2 | ||
Financial liabilities: | ||
Long-term debt, including current portion | 126,789 | 138,865 |
Total financial liabilities | 126,789 | 138,865 |
Level 3 | ||
Financial liabilities: | ||
Long-term debt, including current portion | 0 | 0 |
Total financial liabilities | $ 0 | $ 0 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | Apr. 30, 2021 | Dec. 23, 2016 | Sep. 27, 2016 | Jun. 07, 2016 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2018 | Aug. 25, 2017 | Jan. 31, 2014 |
Debt Instrument [Line Items] | |||||||||||
Payment of special dividend | $ 72,000,000 | ||||||||||
Repayment of senior secured credit facility | $ 0 | $ 2,000,000 | $ 20,000,000 | $ 0 | $ 2,000,000 | ||||||
2014 Senior Secured Credit Facility | Revolving credit facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Amounts available under senior secured credit facility | 25,000,000 | $ 20,000,000 | |||||||||
2014 Senior Secured Credit Facility | Term loan | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Amounts available under senior secured credit facility | 105,000,000 | ||||||||||
Borrowings outstanding under senior secured credit facility | $ 64,000,000 | ||||||||||
2014 Senior Secured Credit Facility | Second lien term loan | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Amounts available under senior secured credit facility | $ 40,000,000 | ||||||||||
Repayment of senior secured credit facility | $ 40,000,000 | ||||||||||
2016 Senior Secured Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Amounts available under senior secured credit facility | $ 200,000,000 | ||||||||||
Debt instrument, term | 5 years | ||||||||||
2016 Senior Secured Credit Facility | Revolving credit facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Amounts available under senior secured credit facility | $ 50,000,000 | ||||||||||
2016 Senior Secured Credit Facility | Term loan | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Amounts available under senior secured credit facility | 165,000,000 | ||||||||||
2016 Senior Secured Credit Facility | Letter of Credit | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Amounts available under senior secured credit facility | $ 215,000,000 | ||||||||||
2021 Senior Secured Credit Facility | Revolving credit facility | Subsequent Event | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Amounts available under senior secured credit facility | $ 100,000,000 | ||||||||||
2021 Senior Secured Credit Facility | Term loan | Subsequent Event | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Amounts available under senior secured credit facility | 100,000,000 | ||||||||||
2021 Senior Secured Credit Facility | Letter of Credit | Subsequent Event | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Amounts available under senior secured credit facility | $ 200,000,000 | ||||||||||
Debt instrument, term | 5 years |
Debt - Schedule of Outstanding
Debt - Schedule of Outstanding Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Debt Instrument [Line Items] | ||
Finance lease obligations | $ 2,200 | $ 3,012 |
Total debt | 126,789 | 138,865 |
Less: debt issuance costs | (253) | (209) |
Total debt, net of issuance costs | 126,536 | 138,656 |
Less: current portion | (16,281) | (12,568) |
Long-term portion of debt | 110,255 | 126,088 |
Term loan | ||
Debt Instrument [Line Items] | ||
Term loan | $ 124,589 | $ 135,853 |
Debt - Schedule of Aggregate Fu
Debt - Schedule of Aggregate Future Minimum Principal Payments on the Term Loan (Details) - Term loan $ in Thousands | Mar. 31, 2021USD ($) |
Term Loan | |
2022 | $ 15,469 |
2023 | 109,725 |
Total | $ 125,194 |
Debt - Schedule of Components o
Debt - Schedule of Components of Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||||
Amortization of debt issuance costs | $ 190 | $ 847 | $ 747 | $ 792 | |
Interest income | (205) | (5) | (863) | (37) | |
Interest expense, net | 1,849 | $ 1,963 | 4,090 | 6,307 | 7,816 |
Interest expense, net | 6,308 | ||||
Finance leases | |||||
Debt Instrument [Line Items] | |||||
Interest | 50 | 137 | 179 | 155 | |
Term loan | |||||
Debt Instrument [Line Items] | |||||
Interest | 1,774 | 2,912 | 6,096 | 6,774 | |
Revolving credit facility | |||||
Debt Instrument [Line Items] | |||||
Interest | $ 40 | $ 199 | $ 149 | $ 132 |
Income taxes - Schedule of Comp
Income taxes - Schedule of Components of Income (Loss) Before Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||||
Domestic | $ (21,673) | $ 3,715 | $ 24,479 | $ 17,405 | |
Foreign | 500 | (25) | (410) | 551 | |
Income (loss) before provision for income taxes | $ (21,173) | $ 1,123 | $ 3,690 | $ 24,069 | $ 17,956 |
Income taxes - Schedule of Co_2
Income taxes - Schedule of Components of (Provision) Benefit for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2018 | |
Current: | |||||
U.S. federal | $ (13) | $ (4,772) | $ (2,681) | $ (2,414) | |
State | (139) | (1,186) | (1,066) | (948) | |
Foreign | (22) | (84) | 5 | (8) | |
Total current | (174) | (6,042) | (3,742) | (3,370) | |
Deferred: | |||||
U.S. federal | 3,096 | 7,159 | (2,532) | 1,005 | |
State | 368 | 1,293 | 99 | 101 | |
Foreign | (31) | 132 | (10) | (167) | |
Total deferred | 3,433 | 8,584 | (2,443) | 939 | |
Total (provision) benefit for income taxes | $ 3,259 | $ (433) | $ 2,542 | $ (6,185) | $ (2,431) |
Income taxes - Schedule of Reco
Income taxes - Schedule of Reconciliation of Federal Statutory Rate to Company's Effective Tax Rate (Details) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Federal statutory rate | 21.00% | 21.00% | 21.00% | 21.00% |
State tax, net of federal benefit | 1.20% | (10.60%) | 3.70% | 2.60% |
State tax deferred rate change, net of federal benefit | 0.00% | (1.60%) | 0.10% | 0.90% |
Nondeductible business expenses | (0.10%) | 2.10% | 0.80% | 1.40% |
Nondeductible employee compensation | 0.00% | 9.10% | 0.40% | 0.00% |
Provision-to-return adjustment | 0.00% | 1.50% | 0.00% | (3.90%) |
Uncertain tax positions | (0.10%) | 1.00% | (0.20%) | (1.30%) |
Stock based compensation | (6.10%) | (90.70%) | (0.80%) | (8.60%) |
Others | (0.50%) | (0.70%) | 0.70% | 1.40% |
Effective tax rate | 15.40% | (68.90%) | 25.70% | 13.50% |
Income taxes - Schedule of Co_3
Income taxes - Schedule of Components of Net Deferred Taxes (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Deferred tax assets: | ||
Compensation | $ 624 | $ 760 |
Inventories and receivables | 5,710 | 3,472 |
Accrued expenses | 2,067 | 1,996 |
Stock compensation | 7,247 | 3,706 |
Net operating losses | 272 | 92 |
Right of use liability | 5,731 | 3,443 |
Other | 560 | 558 |
Deferred tax assets | 22,211 | 14,027 |
Deferred tax liabilities: | ||
Goodwill | 4,090 | 3,468 |
Fixed assets | 2,506 | 3,294 |
Intangible assets | 23,162 | 25,287 |
Right of use asset | 5,294 | 3,292 |
Other | 463 | 563 |
Deferred tax liabilities | 35,515 | 35,904 |
Net deferred tax liabilities | $ 13,304 | $ 21,877 |
Income taxes - Schedule of Defe
Income taxes - Schedule of Deferred Tax Assets and Liabilities Within the Same Jurisdiction (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Income Tax Disclosure [Abstract] | ||
Deferred tax assets | $ 175 | $ 15 |
Deferred tax liabilities | 13,479 | 21,892 |
Net deferred tax liabilities | $ 13,304 | $ 21,877 |
Income taxes - Additional Infor
Income taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2018 | |
Operating Loss Carryforwards [Line Items] | ||||
Federal net operating loss carryforwards | $ 500 | |||
State net operating loss carryforwards | 100 | |||
Foreign net operating loss carryforwards | 600 | |||
Unrecognized tax benefits that would impact effective tax rate | $ 400 | 500 | $ 500 | $ 400 |
Unrecognized tax benefits expected to reverse in next twelve months | 100 | |||
Accrued gross interest and penalties | 100 | 100 | ||
Recognized net interest and penalties expense | $ 3 | $ 29 | $ 23 | $ (40) |
Domestic Tax Authority | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards period | 20 years | |||
Foreign Tax Authority | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards period | 5 years |
Income taxes - Schedule of Unre
Income taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Balance at beginning of year | $ 571 | $ 477 | $ 581 | $ 764 |
Increases for prior year tax positions | 0 | 6 | 32 | 0 |
Increases for current year tax positions | 10 | 65 | 90 | 173 |
Decreases for prior year tax positions | 0 | 0 | 0 | (8) |
Decreases due to settlements | 0 | (27) | (29) | 0 |
Decreases due to statutes lapsing | 0 | (63) | (197) | (358) |
Balance at end of year | $ 581 | $ 458 | $ 477 | $ 571 |
Preferred stock - Additional In
Preferred stock - Additional Information (Details) - $ / shares | Mar. 31, 2021 | Mar. 31, 2020 |
Equity [Abstract] | ||
Preferred stock, shares authorized (in shares) | 30,000,000 | |
Preferred stock, par value (in USD per share) | $ 0.01 | |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Stock-based compensation - Addi
Stock-based compensation - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2018 | |
Service-based Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized stock-based compensation cost | $ 1,500,000 | |||
Unrecognized stock-based compensation cost, expected weighted-average period of recognition | 2 years 2 months 12 days | |||
Maximum contractual life | 10 years | |||
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Stock-based compensation expense | $ 590,000 | $ 1,671,000 | $ 2,308,000 | $ 3,219,000 |
Performance-based and Market-based Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized stock-based compensation cost | 0 | |||
Stock-based compensation expense | $ 0 | $ 0 | $ 0 | $ 1,168,000 |
RSA | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unvested shares outstanding (in shares) | 1,190,320 | |||
RSAs and RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized stock-based compensation cost, expected weighted-average period of recognition | 2 years 2 months 12 days | |||
Unvested shares outstanding (in shares) | 2,786,398 | 2,289,615 | 2,311,768 | 2,036,124 |
Unrecognized stock-based compensation cost | $ 25,600,000 | |||
Stock-based compensation expense | $ 3,093,000 | 18,012,000 | $ 13,181,000 | $ 12,434,000 |
RSAs and RSUs | Cost of Sales | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 200,000 | |||
RSAs and RSUs | Selling, General and Administrative Expenses | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 17,800,000 | |||
2016 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized (in shares) | 14,483,591 | |||
Shares available for grant (in shares) | 7,667,891 | |||
2014 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of options and awards outstanding (in shares) | 1,061,972 |
Stock-based compensation - Summ
Stock-based compensation - Summary of Service-based Stock Option Activity and Related Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | |
Weighted-average exercise price | |||
Closing stock price (in USD per share) | $ 26.83 | ||
Service-based Stock Options | |||
Options outstanding | |||
Beginning balance (in shares) | 2,746,670 | 1,999,553 | 2,575,579 |
Granted (in shares) | 115,100 | 202,560 | |
Exercised (in shares) | (337,376) | (334,572) | |
Canceled or forfeited (in shares) | (286,191) | (21,196) | (444,014) |
Ending balance (in shares) | 2,575,579 | 1,640,981 | 1,999,553 |
Options outstanding, Exercisable (in shares) | 1,312,728 | ||
Weighted-average exercise price | |||
Beginning balance (in USD per share) | $ 12.91 | $ 13.17 | $ 12.24 |
Granted (in USD per share) | 7.95 | 14.18 | |
Exercised (in USD per share) | 4.36 | 4.08 | |
Canceled or forfeited (in USD per share) | 16.98 | 23.24 | 15.07 |
Ending balance (in USD per share) | $ 12.24 | 14.86 | $ 13.17 |
Weighted-average exercise price, Exercisable (in USD per share) | $ 14.99 | ||
Weighted-average remaining contractual life (in years), Outstanding | 6 years 10 months 24 days | 6 years 1 month 6 days | 6 years 9 months 18 days |
Weighted-average remaining contractual life (in years), Exercisable | 5 years 7 months 6 days | ||
Aggregate intrinsic values, Outstanding | $ 6,958 | $ 19,650 | $ 3,773 |
Aggregate intrinsic values, Exercisable | $ 15,549 |
Stock-based compensation - Su_2
Stock-based compensation - Summary of Additional Information Relating to Service-based Options (Details) - Service-based Stock Options - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 590 | $ 1,671 | $ 2,308 | $ 3,219 |
Intrinsic value of options exercised | $ 0 | $ 5,620 | $ 3,580 | $ 2,890 |
Weighted-average grant date fair value of options granted (in USD per share) | $ 3.12 | $ 0 | $ 5.55 | $ 6.81 |
Stock-based compensation - Su_3
Stock-based compensation - Summary of Weighted-average Assumptions (Details) - Service-based Stock Options | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term (in years) | 6 years 3 months 18 days | 6 years 6 months | 6 years 3 months 18 days | |
Expected volatility | 35.13% | 35.57% | 32.02% | |
Risk-free interest rate | 2.55% | 2.07% | 2.68% | |
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Stock-based compensation - Su_4
Stock-based compensation - Summary of Performance-based and Market-based Stock Option Activity and Related Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | |
Weighted-average exercise price | |||
Closing stock price (in USD per share) | $ 26.83 | ||
Performance-based and Market-based Stock Options | |||
Options outstanding | |||
Beginning balance (in shares) | 1,482,782 | 1,252,932 | 1,323,432 |
Exercised (in shares) | (62,450) | (144,340) | (53,100) |
Canceled or forfeited (in shares) | (96,900) | (17,400) | |
Ending balance (in shares) | 1,323,432 | 1,108,592 | 1,252,932 |
Weighted-average exercise price | |||
Beginning balance (in USD per share) | $ 8.94 | $ 7.97 | $ 7.96 |
Exercised (in USD per share) | 1.84 | 1.89 | 2.40 |
Canceled or forfeited (in USD per share) | 26.84 | 26.84 | |
Ending balance (in USD per share) | $ 7.96 | $ 8.72 | $ 7.97 |
Weighted-average remaining contractual life (in years), Outstanding | 6 years | 4 years | 5 years |
Aggregate intrinsic values, Outstanding | $ 8,646 | $ 20,077 | $ 7,487 |
Options outstanding, Exercisable (in shares) | 808,592 | ||
Weighted-average exercise price, Exercisable (in USD per share) | $ 2 | ||
Weighted-average remaining contractual life (in years), Exercisable | 3 years 3 months 18 days | ||
Aggregate intrinsic values, Exercisable | $ 20,077 |
Stock-based compensation - Su_5
Stock-based compensation - Summary of Additional Information Relating to Performance-based and Market-based Stock Options (Details) - Performance-based and Market-based Stock Options - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 0 | $ 0 | $ 0 | $ 1,168 |
Intrinsic value of options exercised | $ 419 | $ 3,117 | $ 609 | $ 8,669 |
Weighted-average grant date fair value of options granted (in USD per share) | $ 0 | $ 0 | $ 0 | $ 0 |
Stock-based compensation - Su_6
Stock-based compensation - Summary of Restricted Stock Unit Activity and Related Information (Details) - RSAs and RSUs - $ / shares | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | |
Shares of restricted stock outstanding | |||
Beginning balance (in shares) | 2,036,124 | 2,311,768 | 2,786,398 |
Granted (in shares) | 1,464,710 | 1,206,870 | 673,461 |
Vested (in shares) | (396,514) | (1,044,052) | (762,818) |
Canceled forfeited (in shares) | (317,922) | (184,971) | (385,273) |
Ending balance (in shares) | 2,786,398 | 2,289,615 | 2,311,768 |
Weighted-average grant date fair value | |||
Beginning balance (in USD per share) | $ 20.01 | $ 12.86 | $ 13.26 |
Granted (in USD per share) | 7.64 | 17.45 | 14.26 |
Vested (in USD per share) | 21.79 | 13.97 | 15.97 |
Canceled forfeited (in USD per share) | 20.06 | 14.19 | 12.66 |
Ending balance (in USD per share) | $ 13.26 | $ 14.67 | $ 12.86 |
Stock-based compensation - Ad_2
Stock-based compensation - Additional Information Related to RSAs and RSUs (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2018 | |
RSAs and RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 3,093 | $ 18,012 | $ 13,181 | $ 12,434 |
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Intrinsic value of restricted stock released | $ 3,387 | $ 24,328 | $ 12,448 | $ 6,280 |
Restructuring and other relat_3
Restructuring and other related costs - Restructuring expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |||||
Property, plant and equipment impairment | $ 2,097 | ||||
Inventory disposal | 343 | ||||
Employee severance and related expenses | $ 600 | 23 | $ 0 | ||
Other costs, including other asset write-offs | 1,959 | 178 | 1,751 | ||
Acceleration of rent expense | 16,106 | 0 | 0 | ||
Acceleration of depreciation expense | 5,377 | 0 | |||
Gain from extinguishment of lease liabilities | 1,866 | 7,733 | |||
Total | $ 22,176 | $ 0 | $ 2,641 | $ (5,982) | $ 0 |
Restructuring and other relat_4
Restructuring and other related costs - Narrative (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Feb. 28, 2019store | Mar. 31, 2019USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | |
Restructuring and Related Activities [Abstract] | ||||
Number of stores closed | store | 22 | |||
Gain from extinguishment of lease liabilities | $ 1,866 | $ 7,733 | ||
Acceleration of rent expense | $ 16,106 | $ 0 | $ 0 |
Restructuring and other relat_5
Restructuring and other related costs - Restructuring related liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2018 | |
Restructuring Reserve [Roll Forward] | |||||
Restructuring expense (income) | $ 22,176 | $ 0 | $ 2,641 | $ (5,982) | $ 0 |
Employee severance and related expenses | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning balance | 0 | 0 | 96 | ||
Restructuring expense (income) | 600 | (22) | |||
Cash disbursements | (504) | (74) | |||
Other adjustments | 0 | ||||
Ending balance | 96 | 0 | 0 | ||
Other costs | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning balance | 0 | 0 | 675 | ||
Restructuring expense (income) | 1,118 | 1,634 | |||
Cash disbursements | (443) | (2,309) | |||
Other adjustments | 0 | ||||
Ending balance | 675 | 0 | 0 | ||
Employee severance and related expenses and other costs | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning balance | 0 | $ 0 | 771 | ||
Restructuring expense (income) | 1,718 | 1,612 | |||
Cash disbursements | (947) | (2,383) | |||
Other adjustments | 0 | ||||
Ending balance | $ 771 | $ 0 | $ 0 |
Repurchase of common stock - Na
Repurchase of common stock - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2021 | May 08, 2019 | |
Equity [Abstract] | |||
Amount authorized under share repurchase program | $ 25,000,000 | ||
Repurchase of common stock (in shares) | 0 | 0 | |
Remaining authorized repurchase amount | $ 17,100,000 | $ 17,100,000 |
Employee benefit plan - Additio
Employee benefit plan - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | ||||
Defined contribution plan, vest percentage | 100.00% | |||
Company contributions to 401 (k) plan | $ 0.1 | $ 0.3 | $ 0.3 | $ 0.2 |
Net income (loss) per share - R
Net income (loss) per share - Reconciliation of Numerator and Denominator in Basic and Diluted Net Income (Loss) Per Common Share Computations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||
Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2018 | |
Numerator: | ||||||||||||||||
Net income (loss) | $ (24) | $ 4,297 | $ 447 | $ 1,512 | $ (341) | $ 8,002 | $ 6,517 | $ 3,706 | $ (17,914) | $ 9,672 | $ 3,915 | $ 1,248 | $ 690 | $ 6,232 | $ 17,884 | $ 15,525 |
Denominator: | ||||||||||||||||
Weighted average common shares outstanding - basic (in shares) | 48,022,926 | 46,435,560 | 49,377,410 | 48,498,813 | 46,828,798 | |||||||||||
Dilutive common equivalent shares from equity awards (in shares) | 0 | 2,616,735 | 2,318,330 | 2,439,818 | ||||||||||||
Weighted average common shares outstanding - diluted (in shares) | 48,022,926 | 49,302,771 | 51,994,145 | 50,817,143 | 49,268,616 | |||||||||||
Net income (loss) per share: | ||||||||||||||||
Basic (in USD per share) | $ 0 | $ 0.09 | $ 0.01 | $ 0.03 | $ (0.01) | $ 0.16 | $ 0.13 | $ 0.08 | $ (0.37) | $ 0.20 | $ 0.08 | $ 0.03 | $ 0.01 | $ 0.13 | $ 0.37 | $ 0.33 |
Diluted (in USD per share) | $ 0 | $ 0.08 | $ 0.01 | $ 0.03 | $ (0.01) | $ 0.16 | $ 0.13 | $ 0.07 | $ (0.37) | $ 0.20 | $ 0.08 | $ 0.03 | $ 0.01 | $ 0.12 | $ 0.35 | $ 0.32 |
Anti-dilutive securities excluded from diluted EPS: | ||||||||||||||||
Weighted average anti-dilutive shares from outstanding equity awards excluded from diluted earnings per share (in shares) | 6,588,523 | 1,038,810 | 2,143,672 | 3,373,529 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | |||
Lessee operating lease, option to extend | five years | ||
Operating cash flows from operating leases | $ 1.8 | $ 3.8 | $ 10.4 |
Leases - Balance Sheet Line Ite
Leases - Balance Sheet Line Items (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2021 | |
Assets | |||
Operating lease assets | $ 13,668 | $ 22,691 | |
Finance lease assets | 2,094 | 1,100 | |
Total leased assets | 15,762 | 23,791 | |
Current | |||
Operating | 3,083 | 4,292 | |
Finance | 812 | 812 | |
Noncurrent | |||
Operating | 11,239 | 20,084 | |
Finance | 2,200 | 1,388 | |
Total lease liabilities | $ 17,334 | $ 26,576 | |
Operating lease, right-of-use asset, statement of financial position [Extensible List] | Other assets | Other assets | |
Finance lease, right-of-use asset, statement of financial position [Extensible List] | Other assets | Other assets | |
Operating lease, liability, current, statement of financial position [Extensible List] | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities | |
Finance lease, liability, current, statement of financial position [Extensible List] | Current portion of long-term debt and finance lease obligations | Current portion of long-term debt and finance lease obligations | |
Finance lease, liability, noncurrent, statement of financial position [Extensible List] | Long-term portion of debt | Long-term portion of debt | |
ROU assets derecognized through restructuring | $ 15,700 | ||
Gain from extinguishment of lease liabilities | $ 1,866 | $ 7,733 | |
Finance lease accumulated amortization | $ (2,900) | $ (3,200) |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | |||
Operating lease cost | $ 1,195 | $ 4,756 | $ 2,950 |
Gain from extinguishment of lease liabilities | (1,866) | 0 | (7,733) |
Acceleration of rent expense | 16,106 | 0 | 0 |
Finance lease cost | |||
Amortization of leased assets | 254 | 970 | 996 |
Interest on lease liabilities | 50 | 137 | 179 |
Total lease cost (gain) | $ 15,739 | $ 5,863 | $ (3,608) |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Operating leases | ||
2022 | $ 4,823 | |
2023 | 4,857 | |
2024 | 4,884 | |
2025 | 4,075 | |
2026 | 3,091 | |
Thereafter | 4,605 | |
Total lease payments | 26,335 | |
Less: Interest | 1,959 | |
Present value of lease liabilities | 24,376 | |
Finance leases | ||
2022 | 907 | |
2023 | 1,208 | |
2024 | 235 | |
2025 | 0 | |
2026 | 0 | |
Thereafter | 0 | |
Total lease payments | 2,350 | |
Less: Interest | 150 | |
Finance lease obligations | 2,200 | $ 3,012 |
Total | ||
2022 | 5,730 | |
2023 | 6,065 | |
2024 | 5,119 | |
2025 | 4,075 | |
2026 | 3,091 | |
Thereafter | 4,605 | |
Total lease payments | $ 28,685 |
Leases - Weighted Average Assum
Leases - Weighted Average Assumptions (Details) | Mar. 31, 2021 | Mar. 31, 2020 |
Weighted-average remaining lease term | ||
Operating leases | 6 years | 6 years 9 months 18 days |
Finance leases | 2 years 3 months 18 days | 3 years 3 months 18 days |
Weighted-average discount rate | ||
Operating leases | 2.80% | 3.70% |
Finance leases | 5.20% | 5.20% |
Quarterly financial summary - S
Quarterly financial summary - Schedule of Unaudited Quarterly Results (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||
Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Net sales | $ 92,671 | $ 88,562 | $ 72,350 | $ 64,527 | $ 74,712 | $ 80,760 | $ 67,615 | $ 59,764 | $ 66,141 | $ 78,571 | $ 63,889 | $ 59,055 | $ 65,920 | $ 318,110 | $ 282,851 | $ 267,435 |
Gross profit | 58,600 | 57,119 | 47,138 | 43,341 | 48,064 | 52,520 | 43,348 | 37,191 | 40,491 | 46,919 | 38,969 | 36,645 | 40,208 | 206,198 | 181,123 | 162,741 |
Net income (loss) | $ (24) | $ 4,297 | $ 447 | $ 1,512 | $ (341) | $ 8,002 | $ 6,517 | $ 3,706 | $ (17,914) | $ 9,672 | $ 3,915 | $ 1,248 | $ 690 | $ 6,232 | $ 17,884 | $ 15,525 |
Net income (loss) per share: | ||||||||||||||||
Basic (in USD per share) | $ 0 | $ 0.09 | $ 0.01 | $ 0.03 | $ (0.01) | $ 0.16 | $ 0.13 | $ 0.08 | $ (0.37) | $ 0.20 | $ 0.08 | $ 0.03 | $ 0.01 | $ 0.13 | $ 0.37 | $ 0.33 |
Diluted (in USD per share) | $ 0 | $ 0.08 | $ 0.01 | $ 0.03 | $ (0.01) | $ 0.16 | $ 0.13 | $ 0.07 | $ (0.37) | $ 0.20 | $ 0.08 | $ 0.03 | $ 0.01 | $ 0.12 | $ 0.35 | $ 0.32 |
Subsequent events (Details)
Subsequent events (Details) - 2021 Senior Secured Credit Facility - Subsequent Event | Apr. 30, 2021USD ($) |
Letter of Credit | |
Subsequent Event [Line Items] | |
Debt instrument, term | 5 years |
Amounts available under senior secured credit facility | $ 200,000,000 |
Unused fee rate (percentage) | 0.15% |
Line of credit facility, periodic payment | $ 1,250,000 |
Letter of Credit | LIBOR | |
Subsequent Event [Line Items] | |
Variable rate floor (percentage) | 0.00% |
Basis spread on interest rate (percentage) | 1.375% |
Letter of Credit | Base Rate | |
Subsequent Event [Line Items] | |
Basis spread on interest rate (percentage) | 0.375% |
Revolving credit facility | |
Subsequent Event [Line Items] | |
Amounts available under senior secured credit facility | $ 100,000,000 |
Net leverage ratio | 3.25 |
Fixed charge coverage ratio | 1.15 |
Term loan | |
Subsequent Event [Line Items] | |
Amounts available under senior secured credit facility | $ 100,000,000 |
Minimum | Letter of Credit | |
Subsequent Event [Line Items] | |
Unused fee rate (percentage) | 0.10% |
Minimum | Letter of Credit | LIBOR | |
Subsequent Event [Line Items] | |
Basis spread on interest rate (percentage) | 1.25% |
Minimum | Letter of Credit | Base Rate | |
Subsequent Event [Line Items] | |
Basis spread on interest rate (percentage) | 0.25% |
Maximum | Letter of Credit | |
Subsequent Event [Line Items] | |
Unused fee rate (percentage) | 0.30% |
Maximum | Letter of Credit | LIBOR | |
Subsequent Event [Line Items] | |
Basis spread on interest rate (percentage) | 2.125% |
Maximum | Letter of Credit | Base Rate | |
Subsequent Event [Line Items] | |
Basis spread on interest rate (percentage) | 1.125% |