Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Mar. 31, 2020 | Jun. 08, 2020 | Sep. 30, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Mar. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | CorVel Corporation | ||
Entity Central Index Key | 0000874866 | ||
Entity File Number | 0-19291 | ||
Current Fiscal Year End Date | --03-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Common Stock, Shares Outstanding | 18,006,239 | ||
Entity Public Float | $ 710,500,000 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Address, Address Line One | 1920 Main Street | ||
Entity Address, Address Line Two | Suite 900 | ||
Entity Address, City or Town | Irvine | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 92614 | ||
City Area Code | 949 | ||
Local Phone Number | 851-1473 | ||
Entity Tax Identification Number | 33-0282651 | ||
Title of 12(b) Security | Common Stock, Par Value $0.0001 Per Share | ||
Trading Symbol | CRVL | ||
Security Exchange Name | NASDAQ | ||
Entity Interactive Data Current | Yes | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference | Information required by Items 10 through 14 of Part III of this Form 10-K, to the extent not set forth herein, is incorporated herein by reference to portions of the registrant’s definitive proxy statement for the registrant’s 2020 Annual Meeting of Stockholders, which will be filed with the Securities and Exchange Commission not later than 120 days after the end of the fiscal year ended March 31, 2020. Except with respect to the information specifically incorporated by reference in this Form 10-K, the registrant’s definitive proxy statement is not deemed to be filed as a part of this Form 10-K. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Mar. 31, 2020 | Mar. 31, 2019 |
Current Assets | ||
Cash and cash equivalents | $ 83,223,000 | $ 91,713,000 |
Customer deposits | 48,991,000 | 45,268,000 |
Accounts receivable (less allowance for doubtful accounts of $5,133,000 at March 31, 2020 and $5,508,000 at March 31, 2019) | 65,767,000 | 71,336,000 |
Prepaid expenses and income taxes | 11,010,000 | 7,176,000 |
Total current assets | 208,991,000 | 215,493,000 |
Property and equipment, net | 75,900,000 | 61,980,000 |
Goodwill | 36,814,000 | 36,814,000 |
Other intangible assets, net | 2,540,000 | 2,975,000 |
Right-of-use asset, net | 90,666,000 | 0 |
Other assets | 1,349,000 | 756,000 |
Total assets | 416,260,000 | 318,018,000 |
Current Liabilities | ||
Accounts and income taxes payable | 16,363,000 | 11,478,000 |
Accrued liabilities | 117,326,000 | 105,441,000 |
Total current liabilities | 133,689,000 | 116,919,000 |
Deferred income taxes, net | 7,764,000 | 6,294,000 |
Long-term operating lease liabilities | 85,096,000 | 0 |
Total liabilities | 226,549,000 | 123,213,000 |
Commitments and contingencies (Notes 6, 7, 10, 11 and 13) | 0 | 0 |
Stockholders' Equity | ||
Common stock, $.0001 par value: 120,000,000 shares authorized at March 31, 2020 and 2019; 54,254,557 shares issued (17,968,966 shares outstanding, net of treasury shares) and 54,021,032 shares issued (18,557,794 shares outstanding, net of treasury shares) at March 31, 2020 and March 31, 2019, respectively | 3,000 | 3,000 |
Paid-in-capital | 168,935,000 | 155,798,000 |
Treasury Stock, at cost (36,285,591 and 35,463,238 shares at March 31, 2020 and 2019, respectively) | (531,764,000) | (466,156,000) |
Retained earnings | 552,537,000 | 505,160,000 |
Total stockholders' equity | 189,711,000 | 194,805,000 |
Total liabilities and stockholders' equity | $ 416,260,000 | $ 318,018,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Mar. 31, 2020 | Mar. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful debts, accounts receivable | $ 5,133,000 | $ 5,508,000 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 120,000,000 | 120,000,000 |
Common stock, shares issued | 54,254,557 | 54,021,032 |
Common stock, shares outstanding | 17,968,966 | 18,557,794 |
Treasury stock, shares | 36,285,591 | 35,463,238 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | |||
Revenues | $ 592,225,000 | $ 595,740,000 | $ 558,350,000 |
Cost of revenues | 466,304,000 | 470,931,000 | 451,097,000 |
Gross profit | 125,921,000 | 124,809,000 | 107,253,000 |
General and administrative | 65,210,000 | 63,296,000 | 59,350,000 |
Income before income taxes | 60,711,000 | 61,513,000 | 47,903,000 |
Income tax provision | 13,334,000 | 14,810,000 | 12,208,000 |
Net income | $ 47,377,000 | $ 46,703,000 | $ 35,695,000 |
Net income per share: | |||
Basic | $ 2.59 | $ 2.48 | $ 1.90 |
Diluted | $ 2.55 | $ 2.46 | $ 1.87 |
Weighted average shares outstanding: | |||
Basic | 18,326,000 | 18,794,000 | 18,825,000 |
Diluted | 18,602,000 | 19,008,000 | 19,042,000 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Total | Common Stock [Member] | Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] |
Beginning balance at Mar. 31, 2017 | $ 138,646,000 | $ 3,000 | $ 135,683,000 | $ (419,802,000) | $ 422,762,000 |
Beginning balance, shares at Mar. 31, 2017 | 53,569,067 | (34,631,834) | |||
Stock issued under employee stock purchase plan | 458,000 | $ 0 | 458,000 | $ 0 | 0 |
Stock issued under employee stock purchase plan, shares | 8,976 | ||||
Stock issued under stock option plan, net of shares repurchased | 3,426,000 | $ 0 | 3,426,000 | 0 | 0 |
Stock issued under stock option plan, net of shares repurchased, shares | 215,943 | ||||
Stock-based compensation expense | 3,164,000 | $ 0 | 3,164,000 | 0 | 0 |
Purchase of treasury stock | $ (11,187,000) | 0 | 0 | $ (11,187,000) | 0 |
Purchase of treasury stock, shares | (249,245) | (249,245) | |||
Adjustment to deferred income taxes for prior year's stock options | $ 974,000 | 0 | 974,000 | $ 0 | 0 |
Net income | 35,695,000 | 0 | 0 | 0 | 35,695,000 |
Ending balance at Mar. 31, 2018 | 171,176,000 | $ 3,000 | 143,705,000 | $ (430,989,000) | 458,457,000 |
Ending balance, shares at Mar. 31, 2018 | 53,793,986 | (34,881,079) | |||
Stock issued under employee stock purchase plan | 503,000 | $ 0 | 503,000 | $ 0 | 0 |
Stock issued under employee stock purchase plan, shares | 8,271 | ||||
Stock issued under stock option plan, net of shares repurchased | 7,241,000 | $ 0 | 7,241,000 | 0 | 0 |
Stock issued under stock option plan, net of shares repurchased, shares | 218,775 | ||||
Stock-based compensation expense | 4,349,000 | $ 0 | 4,349,000 | 0 | 0 |
Purchase of treasury stock | $ (35,167,000) | 0 | 0 | $ (35,167,000) | 0 |
Purchase of treasury stock, shares | (582,159) | (582,159) | |||
Net income | $ 46,703,000 | 0 | 0 | $ 0 | 46,703,000 |
Ending balance at Mar. 31, 2019 | 194,805,000 | $ 3,000 | 155,798,000 | $ (466,156,000) | 505,160,000 |
Ending balance, shares at Mar. 31, 2019 | 54,021,032 | (35,463,238) | |||
Stock issued under employee stock purchase plan | $ 505,000 | $ 0 | 505,000 | $ 0 | 0 |
Stock issued under employee stock purchase plan, shares | 2,486,565 | 8,451 | |||
Stock issued under stock option plan, net of shares repurchased | $ 8,147,000 | $ 0 | 8,147,000 | 0 | 0 |
Stock issued under stock option plan, net of shares repurchased, shares | 225,074 | ||||
Stock-based compensation expense | 4,485,000 | $ 0 | 4,485,000 | 0 | 0 |
Purchase of treasury stock | $ (65,608,000) | 0 | 0 | $ (65,608,000) | 0 |
Purchase of treasury stock, shares | (822,353) | (822,353) | |||
Net income | $ 47,377,000 | 0 | 0 | $ 0 | 47,377,000 |
Ending balance at Mar. 31, 2020 | $ 189,711,000 | $ 3,000 | $ 168,935,000 | $ (531,764,000) | $ 552,537,000 |
Ending balance, shares at Mar. 31, 2020 | 54,254,557 | (36,285,591) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 47,377,000 | $ 46,703,000 | $ 35,695,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 22,516,000 | 22,984,000 | 21,775,000 |
Loss on write down or disposal of property, capitalized software or investment | 149,000 | 306,000 | 1,199,000 |
Stock compensation expense | 4,485,000 | 4,349,000 | 3,164,000 |
Provision for doubtful accounts | 1,606,000 | 1,875,000 | 2,559,000 |
Deferred income taxes | 1,470,000 | 1,456,000 | (874,000) |
Changes in operating assets and liabilities: | |||
Accounts receivable | 3,964,000 | (8,271,000) | (4,658,000) |
Customer deposits | (3,723,000) | (9,772,000) | (3,025,000) |
Prepaid expenses and income taxes | (3,834,000) | (66,000) | (2,166,000) |
Other assets | (595,000) | 145,000 | 545,000 |
Accounts and income taxes payable | 1,095,000 | (1,975,000) | (3,130,000) |
Accrued liabilities | 11,885,000 | 20,905,000 | 11,068,000 |
Operating lease liabilities | (5,569,000) | 0 | 0 |
Net cash provided by operating activities | 80,826,000 | 78,639,000 | 62,152,000 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Purchases of property and equipment | (32,360,000) | (15,274,000) | (27,689,000) |
Net cash used in investing activities | (32,360,000) | (15,274,000) | (27,689,000) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Exercise of employee stock purchase options | 505,000 | 503,000 | 458,000 |
Exercise of common stock options | 8,147,000 | 7,241,000 | 3,426,000 |
Purchase of treasury stock | (65,608,000) | (35,167,000) | (11,187,000) |
Net cash used in financing activities | (56,956,000) | (27,423,000) | (7,303,000) |
Net (decrease) increase in cash and cash equivalents | (8,490,000) | 35,942,000 | 27,160,000 |
Cash and cash equivalents at beginning of year | 91,713,000 | 55,771,000 | 28,611,000 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 83,223,000 | 91,713,000 | 55,771,000 |
Supplemental cash flow information | |||
Income taxes paid | 15,077,000 | 12,854,000 | 16,229,000 |
Accrual of software license purchase | $ 3,790,000 | $ 0 | $ 1,746,000 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Mar. 31, 2020 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Schedule II — Valuation and Qualifying Accounts Balance at Beginning of Year Additions Charged to Cost and Expenses Deductions Balance at End of Year Allowance for doubtful accounts: Fiscal Year Ended March 31, 2020: $ 5,508,000 $ 1,606,000 $ (1,981,000 ) $ 5,133,000 Fiscal Year Ended March 31, 2019: 4,551,000 1,875,000 (918,000 ) 5,508,000 Fiscal Year Ended March 31, 2018: 3,001,000 2,559,000 (1,009,000 ) 4,551,000 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1 — Summary of Significant Accounting Policies Organization: CorVel Corporation (“CorVel” or “the Company”), incorporated in Delaware in 1987, is an independent nationwide provider of medical cost containment and managed care services designed to address the escalating medical costs of workers’ compensation benefits, automobile insurance claims, and group health insurance benefits. The Company’s services are provided to insurance companies, TPAs, governmental entities, and self-administered employers to assist them in managing the medical costs and monitoring the quality of care associated with healthcare claims. Basis of Presentation: The consolidated financial statements include the accounts of CorVel and its wholly-owned subsidiaries. Significant intercompany accounts and transactions have been eliminated in consolidation. Certain prior year amounts have been reclassified to conform to fiscal 2020 presentation. These changes had no impact on previously-reported results of operations or shareholders’ equity. The Company evaluated all subsequent events and transactions through the date of this filing. Use of Estimates: The preparation of financial statements in compliance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the accompanying consolidated financial statements. Actual results could differ from those estimates. Significant estimates include the values assigned to intangible assets, capitalized software development, the allowance for doubtful accounts, accrual for income taxes, share-based payments related to performance-based awards, loss contingencies, estimated lives of claims for claims administration revenue recognition, estimates used in stock options valuations, and accrual for self-insurance reserves. Cash and Cash Equivalents: Cash and cash equivalents consist of short-term, interest-bearing highly-liquid investment-grade securities with maturities of 90 days or less when purchased. The carrying amounts of the Company’s financial instruments approximate their fair values at March 31, 2020 and 2019 due to the short-term nature of those instruments. Customer deposits represent cash that is expected to be returned or applied towards payment within one year through the Company’s provider reimbursement services. Fair Value of Financial Instruments: The Company applies ASC 820, “Fair Value Measurements and Disclosures,” which defines fair value, establishes a framework for measuring fair value, and provides for disclosures about fair value measurements, with respect to fair value measurements of (i) nonfinancial assets and liabilities that are recognized or disclosed at fair value in the Company’s consolidated financial statements on a recurring basis (at least annually) and (ii) all financial assets and liabilities. ASC 820 prioritizes the inputs used in measuring fair value into the following hierarchy: Level 1 Quoted market prices in active markets for identical assets or liabilities; Level 2 Observable inputs other than those included in Level 1 (for example, quoted prices for similar assets in active markets or quoted prices for identical assets in inactive markets); and Level 3 Unobservable inputs reflecting management’s own assumptions about the inputs used in estimating the value of the asset. The carrying amount of the Company’s financial instruments (i.e. cash and cash equivalents, accounts receivable, accounts payable, etc.) are all Level 1, and the Company believes their respective carrying values approximates their fair values at March 31, 2020 and 2019 due to the short-term nature of those instruments. The Company has no Level 2 or Level 3 assets or liabilities. Investment in Private Equity: The Company has made an investment of $2,250,000 into a private equity limited partnership that invests in start-up companies primarily in the data analytics industry. The Company accounts for the investment using the cost minus impairment method, plus or minus any changes resulting from observable price changes in orderly transactions. The investment is recorded in other assets on the accompanying consolidated balance sheets. It is not practicable to estimate the fair value of the investment due to the fact that the investment is in a diversified portfolio of companies whose shares are not traded in public markets. Revenue Recognition: The Company adopted ASC 606 using the modified retrospective method for those contracts which were not substantially completed as of the transition date, which was April 1, 2018. The reported results for the fiscal years ended March 31, 2020 and 2019 reflect the application of the guidance of ASC 606. Revenue is recognized when control of the promised services is transferred to the Company’s customers in an amount that reflects the consideration expected to be entitled to in exchange for those services. As the Company completes its performance obligations which are identified in Note 2, it has an unconditional right to consideration as outlined in the Company’s contracts. Generally, the Company’s accounts receivable are expected to be collected in 30 days in accordance with the underlying payment terms. For many of the Company’s services, the Company typically has one performance obligation; however, it also provides the customer with an option to acquire additional services. The Company offers multiple services under its patient management and network solutions service lines. The Company typically provides a menu of offerings from which the customer may choose to purchase. The price of each service is separate and distinct and provides a separate and distinct value to the customer. Pricing is generally consistent for each service irrespective of the other services or quantities requested by the customer. In transactions related to third-party service revenue, which includes pharmacy, directed care services and other services provided by the Company’s integrated network solutions services, the Company is considered the principal, as it directs the third party, controls the specified service, performs program utilization review, directs payment to the provider, accepts the financial risk of loss associated with services rendered and combines the services provided into an integrated solution, as specified within the Company’s customer contracts. The Company has the ability to influence contractual fees with customers and possesses the financial risk of loss in certain contractual obligations. These factors indicate the Company is the principal and, as such, it is required to recognize revenue gross and service partner vendor fees in the cost of revenue in the Company’s consolidated income statements. Accounts Receivable: The majority of the Company’s accounts receivable are due from companies in the property and casualty insurance industries, self-insured employers and governmental entities. Credit is extended based on evaluation of a customer’s financial condition and, generally, collateral is not required. Accounts receivable are generally due within 30 days and are stated at amounts due from customers net of an allowance for doubtful accounts. Those accounts outstanding longer than the contractual payment terms are considered past due. The Company determines its allowance by considering a number of factors, including the length of time trade accounts receivable are past due, the Company’s previous loss history, the customer’s current ability to pay its obligation to the Company, and the condition of the general economy and the industry as a whole. The Company writes off accounts receivable against the reserve when they become uncollectible. Accounts receivable includes $19,692,000, and $18,434,000 of unbilled receivables at March 31, 2020 and 2019, respectively. Unbilled receivables represent the revenue for work performed which has not yet been invoiced to the customer. Unbilled receivables are generally invoiced within one year. Concentrations of Credit Risk: Substantially all of the Company’s customers are payors of workers’ compensation benefits and property and casualty insurance, which include insurance companies, third party administrators, self-insured employers and government entities. Receivables are generally due within 30 days. Credit losses consistently have been within management’s expectations. Virtually all of the Company’s cash is invested at financial institutions in amounts which exceed the FDIC insurance levels. No customer accounted for 10% or more of revenue for either fiscal 2020, 2019 or 2018. No customer accounted for 10% or more of accounts receivable at either March 31, 2020 or 2019. Property and Equipment: Additions to property and equipment are recorded at cost. The Company provides for depreciation on property and equipment using the straight-line method by charges to operations in amounts that allocate the cost of depreciable assets over their estimated lives as follows: Asset Classification Building Building Improvements Land Improvements Estimated Useful Life 40 years 20 years 20 years Leasehold Improvements Shorter of 5 years or the life of lease Furniture and Equipment 5 to 7 years Computer Hardware 2 to 5 years Computer Software 3 to 5 years The Company accounts for internally-developed software costs in accordance with ASC 350-40, “Internal Use Software”. Capitalized software development costs, intended for internal use, totaled $27,859,000 (net of $109,749,000 in accumulated amortization) and $27,552,000 (net of $99,045,000 in accumulated amortization), as of March 31, 2020 and 2019, respectively. These costs are included in computer software in property and equipment and are amortized over a period of five years. Long-Lived Assets: The carrying amount of all long-lived assets is evaluated periodically to determine if adjustment to the depreciation and amortization period or to the unamortized balance is warranted. Such evaluation is based principally on the expected utilization of the long-lived assets and the projected, undiscounted cash flows of the operations in which the long-lived assets are deployed. Goodwill and Indefinite Lived Long-Lived Assets: The Company accounts for its business combinations in accordance with the ASC 805-10 through ASC 805-50, “Business Combinations,” which (i) requires that the purchase method of accounting be applied to all business combinations and (ii) addresses the criteria for initial recognition of intangible assets and goodwill. In accordance with ASC 350-10 through ASC 350-30, goodwill and other intangible assets with indefinite lives are not amortized but are tested for impairment annually, or more frequently if circumstances indicate the possibility of impairment. If the carrying value of goodwill or an intangible asset exceeds its fair value, an impairment loss will be recognized. Based on the Company’s tests and reviews, no impairment of its goodwill, intangible assets or other long-lived assets existed at March 31, 2020. However, future events or changes in current circumstances could affect the recoverability of the carrying value of goodwill and long-lived assets. Goodwill amounted to $36,814,000 (net of accumulated amortization of $2,069,000) at March 31, 2020 and at March 31, 2019. Cost of Revenues: Cost of services consists primarily of the compensation and fringe benefits of field personnel, including managers, medical bill analysts, field case managers, telephonic case managers, systems support, administrative support, account managers and account executives, and related facility costs including rent, telephone and office supplies. Historically, the costs associated with these additional personnel and facilities have been the most significant factor driving increases in the Company’s cost of services. Income Taxes: The Company provides for income taxes in accordance with provisions specified in ASC 740, “Accounting for Income Taxes”. Accordingly, deferred income tax assets and liabilities are computed for differences between the financial statement and tax bases of assets and liabilities. These differences will result in taxable or deductible amounts in the future, based on tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences become deductible. In making an assessment regarding the probability of realizing a benefit from these deductible differences, management considers the Company’s current and past performance, the market environment in which the Company operates, tax-planning strategies and the length of carry-forward periods for loss carry-forwards, if any. Valuation allowances are established when necessary to reduce deferred tax assets to amounts that are more likely than not to be realized. Further, the Company accrues for income tax issues not yet resolved with federal, state and local tax authorities, when it appears more likely than not that a tax liability has been incurred. Share-Based Compensation: The Company accounts for share-based compensation in accordance with the provisions of ASC Topic 718 “Compensation – Stock Compensation”. Under ASC 718, share-based compensation cost is measured at the grant date, based on the calculated fair value of the award, and is recognized as an expense over the employee’s requisite service period (generally the vesting period of the equity grant). The Company issues performance-based stock options which vest only upon the Company’s achievement of certain earnings per share targets on a calendar year basis, as determined by the Company’s Board of Directors. These options were valued in the same manner as the time-based options. However, the Company only recognizes stock compensation expense to the extent that the targets are determined to be probable of being achieved, which triggers the vesting of the performance options. Accrual for Self-insurance Costs: The Company self-insures for the group medical costs and workers’ compensation costs of its employees. Management believes that the self-insurance reserves are appropriate; however, actual claims costs may differ from the original estimates requiring adjustments to the reserves. The Company determines its estimated self-insurance reserves based upon historical trends along with outstanding claims information provided by its claims paying agents. Earnings per Share: Earnings per common share-basic is based on the weighted average number of common shares outstanding during the period. Earnings per common shares-diluted is based on the weighted average number of common shares and common share equivalents outstanding during the period. In calculating earnings per share, earnings are the same for the basic and diluted calculations. Weighted average shares outstanding is greater for diluted earnings per share due to the effect of stock options. The difference between the basic weighted average shares and the diluted weighted average shares for each of the fiscal years ended March 31, 2020, 2019 and 2018 is as follows: Fiscal 2020 Fiscal 2019 Fiscal 2018 Basic weighted average shares 18,326,000 18,794,000 18,825,000 Treasury stock impact of stock options 276,000 214,000 217,000 Diluted weighted average shares 18,602,000 19,008,000 19,042,000 Recently Issued Accounting Standards In June 2016, the FASB issued ASU 2016-13 regarding ASC Topic 326, “Measurement of Credit Losses on Financial Instruments”. The pronouncement changes the impairment model for most financial assets and will require the use of an "expected loss" model for instruments measured at amortized cost. Under this model, entities will be required to estimate the lifetime expected credit loss on such instruments and record an allowance to offset the amortized cost basis of the financial asset, resulting in a net presentation of the amount expected to be collected on the financial asset. Subsequently, the FASB issued an amendment to clarify the implementation dates and items that fall within the scope of this pronouncement. This standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The adoption of this guidance will not have a material impact on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-04 regarding ASC Topic 350, “Simplifying the Test for Goodwill Impairment”. The pronouncement simplifies the accounting for goodwill impairments by eliminating step two from the goodwill impairment test. Under this guidance, if the carrying amount of a reporting unit exceeds its estimated fair value, an impairment charge shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. This standard is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. The adoption of this guidance will not have a material impact on the Company’s consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes”. The pronouncement simplifies the accounting for income taxes by removing certain exceptions to the general principles in ASC Topic 740, “Income Taxes”. The pronouncement also improves consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. This standard is effective for fiscal years beginning after December 15, 2020, with early adoption permitted. The Company is still evaluating the impact this guidance will have on its consolidated financial statements. Guidance Adopted In February 2016, the FASB issued ASU No. 2016-02, “Leases”, which sets out the principles for the recognition, measurement, presentation, and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases. This classification will determine whether the lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for using an approach that is similar to the existing guidance for operating leases. The standard is to be applied using a modified retrospective transition method. The Company has adopted this standard as of April 1, 2019. The adoption of this standard did not have a material impact on retained earnings on the consolidated balance sheet and did not have a material impact on the consolidated statements of income. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which allowed the Company to carry forward the historical assessments of whether contracts are or contain leases, lease classification, and initial direct costs. The Company implemented internal controls and key system functionality to enable the preparation of financial information on adoption. Refer to Note 9 of the accompanying consolidated financial statements for a description of the impact of this adopted guidance. On May 28, 2014, the FASB issued ASU 2014-09 regarding ASC Topic 606, “Revenue from Contracts with Customers” (“ASC 606”). This standard provides principles for recognizing revenue for the transfer of promised goods or services to customers with the consideration to which the entity expects to be entitled in exchange for those goods or services. In July 2015, the FASB approved a one-year delay of the effective date of this new revenue recognition standard. The Company has adopted this standard as of April 1, 2018. Refer to Note 2 of the accompanying consolidated financial statements for a description of the impact of the adopted guidance. In January 2016, the FASB issued ASU 2016-01 regarding Subtopic 825-10, “Financials Instruments — Overall: Recognition and Measurements of Financial Assets and Financial Liabilities”. The standard addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. It requires that most equity investments be measured at fair value, with subsequent changes in fair value recognized in net income. The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The Company adopted this guidance prospectively on April 1, 2018. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows”, which reduces diversity in the practice of how certain transactions are classified in the statement of cash flows. The new guidance is effective for annual reporting periods beginning after December 15, 2017, with early adoption permitted. The Company adopted this guidance prospectively on April 1, 2018. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Mar. 31, 2020 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Note 2 – Revenue Recognition The Company adopted ASC 606 using the modified retrospective method for those contracts which were not substantially completed as of the transition date, which was April 1, 2018. The reported results for the fiscal years ended March 31, 2020 and March 31, 2019 reflect the application of the guidance of ASC 606, while the reports results for the fiscal year ended March 31, 2018 reflect the application of ASC 605. There was no material impact to any of the line items within the Company’s Consolidated Statements of Income or Consolidated Balance Sheets as a result of applying ASC 606 for the fiscal year ended March 31, 2019. Revenue from Contracts with Customers Revenue is recognized when control of the promised services is transferred to the Company’s customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. As the Company completes its performance obligations which are identified below, it has an unconditional right to consideration as outlined in the Company’s contracts. Generally, the Company’s accounts receivable are expected to be collected in 30 days in accordance with the underlying payment terms. The Company generates revenue through its patient management and network solutions service lines. The Company operates in one reportable operating segment, managed care. Patient Management Service Line The patient management service line provides services primarily related to workers’ compensation claims management and case management. This service line also includes additional services such as accident and health claims programs. Each claim referred by the customer is considered an additional optional purchase of claims management services under the agreement with the customer. The transaction price is readily available from the contract and is fixed for each service. Revenue is recognized over time as services are provided as the performance obligations are satisfied through the effort expended to research, investigate, evaluate, document, and report the claim and control of these services is transferred to the customer. Revenue is recognized based on historical claim closure rates and claim type applied utilizing a portfolio approach based on time elapsed for these claims, generally between three and fifteen months. The Company believes this approach reasonably reflects the transfer of the claims management services to its customer. The Company’s obligation to manage claims and cases under the patient management service line can range from less than one year to multi-year contracts. They are generally one year under the terms of the contract; however, many of these contracts contain auto-renewal provisions and the Company’s customer relationships can span multiple years. Under certain claims management agreements, the Company receives consideration from a customer at contract inception prior to transferring services to the customer, however, the Company would begin performing services immediately. The period between a customer’s payment of consideration and the completion of the promised services is generally less than one year. There is no difference between the amount of promised consideration and the cash selling price of the promised services. The fee is billed upfront by the Company in order to provide customers with simplified and predictable ways of purchasing the Company’s services. The patient management service line also offers the services of case managers who provide administration services by proactively managing medical treatment for claimants while facilitating an understanding of and participation in their rehabilitation process. Revenue for case management services is recognized over time as the performance obligations are satisfied through the effort expended to manage the medical treatment for claimants and control of these services is transferred to the customer. Case management services are generally billed based on time incurred, are considered variable consideration, and revenue is recognized at the amount in which the Company has the right to invoice for services performed. The Company believes this approach reasonably reflects the transfer of the case management service to the customer. Network Solutions Service Line The network solutions service line consists primarily of medical bill review and third-party services. Medical bill review services provide an analysis of medical charges for customers’ claims to identify opportunities for savings. Medical bill review services revenues are recognized at a point in time when control of the service is transferred to the customer. Revenue is recognized based upon the transfer of the results of the medical bill review service to the customer as this is the most accurate depiction of the transfer of the service to the customer. Medical bill review revenues are variable, generally based on performance metrics set forth in the underlying contracts. Each period, the Company bases its estimates on a contract-by-contract basis. The Company makes its best estimate of amounts the Company has earned and expects to be collected using historical averages and other factors to project such revenues. Variable consideration is recognized when the Company concludes that it is probable that a significant revenue reversal will not occur in future periods. Third-party services revenue includes pharmacy, directed care services and other services, and includes amounts received from customers compensating the Company for certain third-party costs associated with providing its integrated network solutions services. The Company is considered the principal in these transactions as it directs the third party, controls the specified service, performs program utilization review, directs payment to the provider, accepts the financial risk of loss associated with services rendered and combines the services provided into an integrated solution, as specified within the Company’s customer contracts. The Company has the ability to influence contractual fees with customers and possesses the financial risk of loss in certain contractual obligations. These factors indicate the Company is the principal and, as such, it is required to recognize revenue gross and service partner vendor fees in the operating expense in the Company’s consolidated statements of income. The following table presents revenues disaggregated by service line for the fiscal years ended March 31, 2020 and 2019: 2020 2019 Patient management services $ 386,814,000 $ 368,198,000 Network solutions services 205,411,000 227,542,000 Total services $ 592,225,000 $ 595,740,000 Arrangements with Multiple Performance Obligations For many of the Company’s services, the Company typically has one performance obligation; however, the Company also provides the customer with an option to acquire additional services. The Company offers multiple services under its patient management and network solutions service lines. The Company typically provides a menu of offerings from which the customer may choose to purchase. The price of each service is separate and distinct and provides a separate and distinct value to the customer. Pricing is generally consistent for each service irrespective of the other services or quantities requested by the customer. Contract Balances The timing of revenue recognition, billings and cash collections results in billed accounts receivables, unbilled receivables, and contract liabilities (reported as deferred revenues) on the Company’s consolidated balance sheets. Unbilled receivables are due to the Company unconditionally for services already rendered except for physical invoicing and the passage of time. Invoicing requirements vary by customer contract but substantially all unbilled revenues are billed within one year. March 31, 2020 March 31, 2019 Billed receivables $ 51,208,000 $ 58,410,000 Allowance for doubtful accounts (5,133,000 ) (5,508,000 ) Unbilled receivables 19,692,000 18,434,000 Accounts receivable, net $ 65,767,000 $ 71,336,000 When the Company receives consideration from a customer prior to transferring services to the customer under the terms of certain claims management agreements, it records deferred revenues on the Company’s consolidated balance sheets, which represents a contract liability. Certain services, such as claims management, are provided under fixed-fee service agreements and require the Company to manage claims over a contract period, typically for one year with the option for auto renewal, with the fixed fee renewing on the anniversary date of such contracts. The Company recognizes deferred revenues as revenues when it performs services and transfers control of the services to the customer and satisfies the performance obligation which it determines utilizing a portfolio approach. For all fixed fee service agreements, revenues are recognized over the expected service periods by type of claim. The table below presents the deferred revenues balance and the significant activity affecting deferred revenues during the fiscal year ended March 31, 2020: March 31, 2020 Beginning balance at April 1, 2019 (Note 5) $ 16,900,000 Additions 29,281,000 Revenue recognized from beginning of period (8,482,000 ) Revenue recognized from additions (20,054,000 ) Ending balance at March 31, 2020 (Note 5) $ 17,645,000 Remaining Performance Obligations As of March 31, 2020, the Company had $17.6 million of remaining performance obligations related to claims and non-claims services for which the price is fixed. Remaining performance obligations consist of deferred revenues. The Company expects to recognize approximately 97% of its remaining performance obligations as revenues within one year and the remaining balance thereafter. See the discussion below regarding the practical expedients elected for the disclosure of remaining performance obligations. Costs to Obtain a Contract The Company has an internal sales force compensation program where remuneration is based solely on the revenues recognized in the period and does not represent an incremental cost to the Company which provides a future benefit expected to be longer than one year and would meet the criteria to be capitalized and presented as unbilled receivables on the Company’s consolidated balance sheets. Practical Expedients Elected As a practical expedient, the Company does not adjust the consideration in a contract for the effects of a significant financing component. It expects, at contract inception, that the period between a customer’s payment of consideration and the transfer of promised services to the customer will be one year or less. For patient management services that are billed on a time-and-expense incurred or per unit basis and for which revenue is recognized over time, the Company recognizes revenue at the amount to which it has the right to invoice for services performed. The Company does not disclose the value of remaining performance obligations for (i) contracts for which it recognizes revenue at the amount to which it has the right to invoice for services performed, and (ii) contracts with variable consideration allocated entirely to a single performance obligation. |
Stock Options and Stock-Based C
Stock Options and Stock-Based Compensation | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Options and Stock-Based Compensation | Note 3 — Stock Options and Stock-Based Compensation Under the Company’s Restated Omnibus Incentive Plan (formerly the Restated 1988 Executive Stock Option Plan) (“the Plan”) as in effect at March 31, 2020, options exercisable for up to 19,865,000 shares of the Company’s common stock may be granted over the life of the Plan to key employees, non-employee directors, and consultants at exercise prices not less than the fair market value of the common stock on the date of grant. Options granted under the Plan are non-statutory stock options and generally vest 25% one year from the date of grant, with the remaining 75% vesting ratably each month for the next 36 months. The options granted to employees and the Company’s Board of Directors expire at the end of five years and ten years from date of grant, respectively. All options granted in fiscal 2020 and 2019 were granted with an exercise price equal to the fair value of the Company’s common stock on the grant date. The Company records compensation expense for employee stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes option-pricing model with the assumptions included in the table below. The Company uses historical data, among other factors, to estimate the expected volatility, the expected dividend yield, and the expected option life. Upon adoption of ASU 2016-09, the Company accounts for forfeitures as they occur, rather than estimate expected forfeitures. The risk-free rate is based on the interest rate paid on a U.S. Treasury issue with a term similar to the estimated life of the option. The fair value of each grant is estimated on the date of grant using the Black-Scholes option-pricing model. The following weighted average assumptions were used for the fiscal years ended March 31, 2020, 2019 and 2018: Fiscal 2020 Fiscal 2019 Fiscal 2018 Expected volatility 33 % 34 % 40 % Risk free interest rate 1.42% to 2.33% 2.46% to 2.96% 1.88% to 2.56% Dividend yield 0.0 % 0.0 % 0.0 % Weighted average option life 4.4 to 4.5 years 4.4 to 4.5 years 4.4 to 4.5 years For the fiscal years ended March 31, 2020, 2019 and 2018, the Company recorded share-based compensation expense of $4,485,000, $4,349,000, and $3,164,000, respectively. The table below shows the amounts recognized in the financial statements for the fiscal years ended March 31, 2020, 2019 and 2018. Fiscal 2020 Fiscal 2019 Fiscal 2018 Cost of revenue $ 2,028,000 $ 1,896,000 $ 1,749,000 General and administrative 2,457,000 2,453,000 1,415,000 Total cost of stock-based compensation included in income before income taxes 4,485,000 4,349,000 3,164,000 Amount of income tax benefit recognized 985,000 1,048,000 1,105,000 Amount charged to net income $ 3,500,000 $ 3,301,000 $ 2,059,000 Effect on basic earnings per share $ 0.19 $ 0.18 $ 0.11 Effect on diluted earnings per share $ 0.19 $ 0.17 $ 0.11 The following table summarizes information for all stock options for the fiscal years March 31, 2020, 2019 and 2018: Fiscal 2020 Fiscal 2019 Fiscal 2018 Options outstanding – beginning of fiscal year 1,058,411 1,064,439 1,143,928 Options granted 271,575 290,300 334,200 Options exercised (235,932 ) (250,604 ) (314,846 ) Options cancelled/forfeited (64,951 ) (45,724 ) (98,843 ) Options outstanding – end of fiscal year 1,029,103 1,058,411 1,064,439 During the fiscal year, weighted average exercise price of: Options granted $ 79.49 $ 57.27 $ 52.57 Options exercised $ 38.34 $ 36.44 $ 27.59 Options cancelled/forfeited $ 59.87 $ 36.71 $ 35.59 At the end of fiscal year: Price range of outstanding options $20.08-$88.22 $12.71-$62.31 $12.71-$57.75 Weighted average exercise price per share $ 54.87 $ 45.17 $ 39.45 Options available for future grants 316,691 523,415 260,961 Exercisable options 468,107 440,386 445,387 The following table summarizes the status of stock options outstanding and exercisable at March 31, 2020: Range of Exercise Prices Number of Outstanding Options Weighted Average Remaining Contractual Life Outstanding Options – Weighted Average Exercise Price Exercisable Options – Number of Exercisable Options Exercisable Options – Weighted Average Exercise Price $20.08 to $43.32 264,782 2.19 $ 31.41 247,798 $ 30.91 $43.33 to $57.75 363,979 2.91 52.58 185,609 51.83 $57.76 to $77.93 323,392 4.04 68.83 34,700 59.89 $77.94 to $88.22 76,950 5.50 87.76 — — Total 1,029,103 3.28 $ 54.87 468,107 $ 41.35 The following table summarizes the status of all outstanding options at March 31, 2020, and changes during the fiscal year then ended: Number of Options Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value as of March 31, 2020 Options outstanding, March 31, 2019 1,058,411 $ 45.17 Granted 271,575 79.49 Exercised (235,932 ) 38.34 Cancelled – forfeited (60,466 ) 61.23 Cancelled – expired (4,485 ) 41.63 Options outstanding, March 31, 2020 1,029,103 $ 54.87 3.28 $ 7,345,665 Options vested and expected to vest 877,664 $ 48.41 2.91 $ 4,465,053 Ending exercisable 468,107 $ 41.35 2.42 $ 6,589,011 The weighted average fair value of options granted during fiscal 2020, 2019 and 2018 was $22.99, $19.83, and $19.24, respectively. The total intrinsic value of options exercised during fiscal years 2020, 2019 and 2018 was $10,281,000, $5,817,000, and $7,780,000 respectively. Included in the above-noted stock option grants and stock compensation expense are performance-based stock options which vest only upon the Company’s achievement of certain earnings per share targets on a calendar year basis, as determined by the Company’s Board of Directors. These options were valued in the same manner as the time-based options. However, the Company only recognizes stock compensation expense to the extent that the targets are determined to be probable of being achieved, which triggers the vesting of the performance options. During the fiscal years ended March 31, 2020, 2019 and 2018, the Company recognized stock compensation expense for performance-based options in the amount of $1,625,000, $1,631,000, and $649,000, respectively. The Company received $8,147,000, $7,241,000, and $3,426,000 of cash receipts from the exercise of stock options during fiscal 2020, 2019 and 2018, respectively. As of March 31, 2020, $6,054,000 of total unrecognized compensation costs related to stock options is expected to be recognized over a weighted average period of 3 years. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Mar. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | Note 4 — Property and Equipment Property and equipment, net consisted of the following at March 31, 2020 and 2019: 2020 2019 Computer software $ 150,780,000 $ 152,885,000 Office equipment and computers 66,398,000 68,006,000 Land, building and improvements 11,048,000 5,843,000 Leasehold improvements 14,962,000 13,539,000 243,188,000 240,273,000 Less: accumulated depreciation and amortization (167,288,000 ) (178,293,000 ) $ 75,900,000 $ 61,980,000 Depreciation expense totaled $22,081,000, $22,544,000 and $21,338,000 for the fiscal years ended March 31, 2020, 2019 and 2018, respectively. During fiscal 2020, the Company has occupied the building that was purchased in fiscal 2018. |
Accounts and Income Taxes Payab
Accounts and Income Taxes Payable and Accrued Liabilities | 12 Months Ended |
Mar. 31, 2020 | |
Payables And Accruals [Abstract] | |
Accounts and Income Taxes Payable and Accrued Liabilities | Note 5 — Accounts and Income Taxes Payable and Accrued Liabilities Accounts and income taxes payable consisted of the following at March 31, 2020 and 2019: 2020 2019 Accounts payable $ 15,145,000 $ 9,925,000 Uncertain tax positions 1,218,000 1,553,000 $ 16,363,000 $ 11,478,000 Accrued liabilities consisted of the following at March 31, 2020 and 2019: 2020 2019 Payroll, payroll taxes and employee benefits $ 26,024,000 $ 23,647,000 Customer deposits 48,991,000 45,268,000 Accrued professional service fees 5,919,000 8,377,000 Self-insurance accruals 3,248,000 3,523,000 Deferred revenue 17,645,000 16,900,000 Operating lease liabilities 13,223,000 5,708,000 Other 2,276,000 2,018,000 $ 117,326,000 $ 105,441,000 |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 6 — Income Taxes The income tax provision consisted of the following for the fiscal years ended March 31, 2020, 2019 and 2018: 2020 2019 2018 Current — Federal $ 9,212,000 $ 10,233,000 $ 11,177,000 Current — State 2,652,000 3,121,000 1,905,000 Subtotal 11,864,000 13,354,000 13,082,000 Deferred — Federal 1,418,000 941,000 (955,000 ) Deferred — State 52,000 515,000 81,000 Subtotal 1,470,000 1,456,000 (874,000 ) $ 13,334,000 $ 14,810,000 $ 12,208,000 The following is a reconciliation of the income tax provision from the statutory federal income tax rate to the effective rate for the fiscal years ended March 31, 2020, 2019 and 2018: 2020 2019 2018 Income taxes at federal statutory rate $ 12,749,000 $ 12,918,000 $ 15,112,000 State income taxes, net of federal benefit 2,243,000 2,848,000 1,645,000 Uncertain tax positions (263,000 ) (175,000 ) (464,000 ) Permanent items and tax credits (1,632,000 ) (666,000 ) (1,364,000 ) Adjustments to returns as filed 110,000 131,000 138,000 Valuation allowance 127,000 317,000 236,000 Impact of tax reform — (563,000 ) (3,095,000 ) $ 13,334,000 $ 14,810,000 $ 12,208,000 Deferred tax assets and liabilities at March 31, 2020 and 2019 are, as follows: 2020 2019 Deferred tax assets: Accrued liabilities not currently deductible $ 5,640,000 $ 6,277,000 Allowance for doubtful accounts 1,293,000 1,422,000 Stock-based compensation 2,058,000 1,833,000 Accrued rent — 1,474,000 Deferred lease liability 24,765,000 — Other 938,000 1,123,000 Deferred tax assets 34,694,000 12,129,000 Deferred tax liabilities: Excess of book over tax basis of fixed assets (13,024,000 ) (10,836,000 ) Intangible assets (4,507,000 ) (4,438,000 ) Right-of-use asset (22,837,000 ) — Accrued revenue (1,143,000 ) (2,354,000 ) Other (267,000 ) (242,000 ) Total deferred tax liabilities (41,778,000 ) (17,870,000 ) Valuation allowance (680,000 ) (553,000 ) Deferred tax liabilities (42,458,000 ) (18,423,000 ) Net deferred tax liability $ (7,764,000 ) $ (6,294,000 ) Prepaid expenses and income taxes include $3,870,000 and $1,160,000 at March 31, 2020 and 2019, respectively. Accounts and income taxes payable include $0 at March 31, 2020 and $73,000 for March 31, 2019, for income taxes due in the first quarter of the following fiscal year. A reconciliation of the financial statement recognition and measurement of uncertain tax positions during the current fiscal year is as follows: Balance as of March 31, 2019 $ 1,264,000 Additions based on tax positions related to the current year 62,000 Additions for tax positions of prior years 30,000 Reductions for tax positions related to the current year — Reductions for tax positions of prior years (344,000 ) Balance as of March 31, 2020 $ 1,012,000 The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. During the fiscal years ended March 31, 2020, 2019 and 2018, the Company recognized approximately $(10,000), $22,000 and $(53,000) in interest and penalties, respectively. As of March 31, 2020, 2019 and 2018, accrued interest and penalties related to uncertain tax positions were $206,000, $216,000 and $194,000, respectively. The tax fiscal years from 2016-2019 remain open to examination by the major taxing jurisdictions to which the Company is subject. On December 22, 2017, the Tax Cuts and Jobs Act was enacted into law. Among numerous provisions included in the new law was the reduction of the corporate federal income tax rate from 35% to 21% effective January 1, 2018. The Company continues to analyze and assess the impact of the Tax Cuts and Jobs Act and believes certain aspects of its impact on the Company’s business may not be fully known for some time. The final impact may differ, possibly materially, due to, among other things, changes in interpretations, assumptions made by the Company, the issuance of federal tax regulations and guidance, and actions the Company may take as a result of the Tax Cuts and Jobs Act. In the absence of guidance on various uncertainties and ambiguities in the application of certain provisions of the Tax Cuts and Jobs Act, the Company is using what it believes are reasonable interpretations and assumptions in applying the Tax Cuts and Jobs Act, but it is possible that the U.S. Department of Treasury could issue subsequent rules and regulations, or the Internal Revenue Service could issue subsequent guidance or take positions on audit, that differ from the Company’s prior interpretations and assumptions, which could have a material, adverse effect on the Company’s cash, tax assets and liabilities, results of operations, and financial condition. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted into law. The Company does not intend to apply for governmental loans from the CARES Act or any other governmental programs to support the Company’s operations. The Company is taking advantage of certain aspects of the CARES Act such as the deferral of payroll tax deposits and continuing to evaluate the other provisions of the CARES Act. |
Employee Stock Purchase Plan
Employee Stock Purchase Plan | 12 Months Ended |
Mar. 31, 2020 | |
Text Block [Abstract] | |
Employee Stock Purchase Plan | Note 7 — Employee Stock Purchase Plan The Company maintains an Employee Stock Purchase Plan (as amended, “ESPP”) which allows employees of the Company and its subsidiaries to purchase shares of common stock on the last day of two six-month purchase periods (i.e. March 31 and September 30) at a purchase price which is 95% of the closing sale price of shares as quoted on NASDAQ on the last day of such purchase period. Employees are allowed to contribute up to 20% of their gross pay. A maximum of 2,850,000 shares has been authorized for issuance under the ESPP. As of March 31, 2020, 2,486,565 shares had been issued pursuant to the ESPP. Summarized ESPP information is as follows: 2020 2019 2018 Employee contributions $ 505,000 $ 503,000 $ 458,000 Shares acquired 8,451 8,271 8,976 Average purchase price $ 59.70 $ 59.55 $ 49.78 |
Treasury Stock
Treasury Stock | 12 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Treasury Stock | Note 8 — Treasury Stock During each of the three fiscal years ended March 31, 2020, the Company continued to repurchase shares of its common stock under a program originally approved by the Company’s Board of Directors in 1996. The total number of shares of common stock authorized to be repurchased over the life of the program is 37,000,000 shares of common stock. On March 21, 2020, the Company temporarily suspended its stock repurchase program in order to provide the Company maximum flexibility to focus on serving its customers as it navigates through the COVID-19 pandemic. The Company has lifted this temporary suspension and expects to resume its stock repurchase program in the June 2020 quarter. Purchases may be made from time to time depending on market conditions and other relevant factors. The share repurchases for the fiscal years ended March 31, 2020, 2019 and 2018 and cumulatively since inception of the authorization, are as follows: 2020 2019 2018 Cumulative Shares repurchased 822,353 582,159 249,245 36,285,591 Cost $ 65,608,000 $ 35,167,000 $ 11,187,000 $ 531,763,000 Average price $ 79.78 $ 60.41 $ 44.88 $ 14.65 |
Leases
Leases | 12 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | Note 9 – Leases The Company determines if an arrangement is, or contains, a lease at contract inception. These lease agreements have remaining lease terms of 1 to 15 years. The Company recognizes a right-of-use (“ROU”) asset and a lease liability at the lease commencement date. The lease liability is initially measured at the present value of the unpaid lease payments as of the lease commencement date. Key estimates and judgments include how the Company determines (1) the discount rate it uses to discount the unpaid lease payments to present value, (2) the lease term, and (3) lease payments. ASC 842 requires a lessee to discount its unpaid lease payments using the interest rate implicit in the lease or, if that rate cannot be readily determined, its incremental borrowing rate. Generally, the Company cannot determine the interest rate implicit in the lease because it does not have access to the lessor's estimated residual value or the amount of the lessor's deferred initial direct costs. Therefore, the Company generally uses its incremental borrowing rate as the discount rate for the lease. The Company's incremental borrowing rate for a lease is the rate of interest it would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. Because the Company does not generally borrow on a collateralized basis, it uses quoted interest rates obtained from financial institutions as an input to derive an appropriate incremental borrowing rate, adjusted for the amount of the lease payments, the lease term, and the effect on that rate of designating specific collateral with a value equal to the unpaid lease payments for that lease. The Company’s lease agreements may include options to extend the lease following the initial term. In most instances, the Company has determined that it is reasonably certain to exercise the option to renew; accordingly, these options are considered in determining the initial lease term. The Company has elected the practical expedient of hindsight in determining the option to renew. For lease agreements entered into or reassessed after the adoption of ASC 842, the Company has elected the practical expedient to account for the lease and non-lease components as a single lease component. Therefore, for those leases, the lease payments used to measure the lease liability include all of the fixed consideration in the contract. Variable lease payments associated with the Company’s leases are recognized upon occurrence of the event, activity, or circumstance in the lease agreement on which those payments are assessed. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. The components of lease expenses are as follows: March 31, 2020 Operating lease expense $ 14,992,000 Short-term lease expense 323,000 Variable lease expense 124,000 Total lease expenses $ 15,439,000 The following table presents the lease related assets and liabilities recorded on the Company’s consolidated balance sheets related to its operating leases: March 31, 2020 Right-of-use asset, net $ 90,666,000 Short-term lease liability $ 13,223,000 Long-term lease liability 85,096,000 Total lease liabilities $ 98,319,000 Weighted average remaining lease term 8.27 years Weighted average discount rate 4.0 % Supplemental cash flow information related to operating leases for fiscal year ended March 31, 2020 were as follows: Cash paid for amounts included in the measurement of operating lease liabilities $ 14,992,000 Operating lease liabilities arising from obtaining ROU assets $ 110,606,000 Reductions to ROU assets resulting from reductions to operating lease liabilities $ 8,354,000 As of March 31, 2020, maturities of operating lease liabilities for each of the next five years and thereafter are as follows: 2021 $ 14,971,000 2022 14,282,000 2023 14,361,000 2024 12,924,000 2025 12,360,000 Thereafter 47,908,000 Total lease payments 116,806,000 Less interest (18,487,000 ) Total lease liabilities $ 98,319,000 As of March 31, 2020, the Company has approximately $4.4 million of additional operating lease commitments that have not yet commenced. These leases commence in 2020 and have lease terms between 2 years and 11 years. |
Contingencies and Legal Proceed
Contingencies and Legal Proceedings | 12 Months Ended |
Mar. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingencies and Legal Proceedings | Note 10 — Contingencies and Legal Proceedings The Company is involved in litigation arising in the ordinary course of business. Management believes that resolution of these matters will not result in any payment that, in the aggregate, would be material to the consolidated financial position or results of operations of the Company. |
Retirement Savings Plan
Retirement Savings Plan | 12 Months Ended |
Mar. 31, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement Savings Plan | Note 11 — Retirement Savings Plan The Company maintains a retirement savings plan for its employees, which is a qualified plan under Section 401(k) of the Internal Revenue Code. Full-time employees that meet certain requirements are eligible to participate in the plan. Employer contributions are made annually, primarily at the discretion of the Company’s Board of Directors. Contributions of $829,000, $777,000 and $557,000 were charged to operations for the fiscal years ended March 31, 2020, 2019 and 2018, respectively. |
Shareholder Rights Plan
Shareholder Rights Plan | 12 Months Ended |
Mar. 31, 2020 | |
Text Block [Abstract] | |
Shareholder Rights Plan | Note 12 — Shareholder Rights Plan During fiscal 1997, the Company’s Board of Directors approved the adoption of its Shareholder Rights Plan. The Shareholder Rights Plan provides for a dividend distribution to the Company’s shareholders of one preferred stock purchase right for each outstanding share of the Company’s common stock held by such shareholder (as used in this Note 12, the “right” or the “rights”), only in the event of certain takeover-related events. In April 2002, the Company’s Board of Directors approved an amendment to the Shareholder Rights Plan to extend the expiration date of the rights to February 10, 2012, set the exercise price of each right at $118, and enable Fidelity Management & Research Company and its affiliates to purchase up to 18% of the shares of common stock of the Company without triggering the rights, with the limitations under the Shareholder Rights Plan remaining in effect for all other stockholders of the Company. In November 2008, the Company’s Board of Directors approved an amendment to the Shareholder Rights Plan to extend the expiration date of the rights to February 10, 2022, remove the ability of Fidelity Management & Research Company and its affiliates to purchase up to 18% of the shares of common stock of the Company without triggering the rights, substitute Computershare Trust Company, N.A. as the rights agent and effect certain technical changes to the Shareholder Rights Plan. Generally, the Shareholder Rights Plan provides that if a person or group acquires 15% or more of the Company’s common stock without the approval of the Company’s Board of Directors, subject to certain exceptions, the holders of the rights, other than the acquiring person or group, would, under certain circumstances, have the right to purchase additional shares of the Company’s common stock having a market value equal to two times the then-current exercise price of the right. In addition, if the Company is thereafter merged into another entity, or if 50% or more of the Company’s consolidated assets or earning power are sold, then the right would entitle its holder to buy common shares of the acquiring entity having a market value equal to two times the then-current exercise price of the right. The Company’s Board of Directors may exchange or redeem the rights under certain conditions. |
Line of Credit
Line of Credit | 12 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Line of Credit | Note 13 — Line of Credit The Company’s revolving credit facility expired in September 2019, and the Company chose not to renew its line of credit agreement with a financial institution. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 14 — Segment Reporting The Company derives the majority of its revenues from providing patient management and network solutions services to payors of workers’ compensation benefits, automobile insurance claims and group health insurance benefits. Patient management services include claims administration, utilization review, medical case management, and vocational rehabilitation. Network solutions services include fee schedule auditing, hospital bill auditing, coordination of independent medical examinations, diagnostic imaging review services and preferred provider referral services. The percentages of revenues attributable to patient management and network solutions services for the fiscal years ended March 31, 2020, 2019 and 2018 are listed below. 2020 2019 2018 Patient management services 65.3 % 61.8 % 56.7 % Network solutions services 34.7 % 38.2 % 43.3 % 100.0 % 100.0 % 100.0 % The Company’s management is structured geographically with regional vice presidents who are responsible for all services provided by the Company in his or her particular region and responsible for the operating results of the Company in multiple states. These regional vice presidents have area and district managers who are also responsible for all services provided by the Company in their given area and district. Under ASC 280-10, two or more operating segments may be aggregated into a single operating segment for financial reporting purposes if aggregation is consistent with the objective and basic principles, if the segments have similar economic characteristics, and if the segments are similar in each of the following areas: (i) the nature of products and services, (ii) the nature of the production processes, (iii) the type or class of customer for their products and services, and (iv) the methods used to distribute their products or provide their services. The Company believes each of the Company’s regions meet these criteria as they provide similar managed care services to similar customers using similar methods of production and distribution. All of the Company’s regions perform both patient management and network solutions services. Because the Company believes it meets each of the criteria set forth above and each of the Company’s regions has similar economic characteristics, the Company aggregates its results of operations in one reportable operating segment. |
Other Intangible Assets
Other Intangible Assets | 12 Months Ended |
Mar. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets | Note 15 — Other Intangible Assets Other intangible assets consisted of the following at March 31, 2020: Item Life Cost Fiscal 2020 Amortization Expense Accumulated Amortization at March 31, 2020 Cost, Net of Accumulated Amortization at March 31, 2020 Covenant Not to Compete 5 years $ 775,000 $ — $ 775,000 $ — Customer Relationships 18-20 years 7,922,000 421,000 5,414,000 2,508,000 Third Party Administrator Licenses 15 years 204,000 14,000 172,000 32,000 Total $ 8,901,000 $ 435,000 $ 6,361,000 $ 2,540,000 Other intangible assets consisted of the following at March 31, 2019: Item Life Cost Fiscal 2019 Amortization Expense Accumulated Amortization at March 31, 2019 Cost, Net of Accumulated Amortization at March 31, 2019 Covenant Not to Compete 5 years $ 775,000 $ — $ 775,000 $ — Customer Relationships 18-20 years 7,922,000 426,000 4,993,000 2,929,000 Third Party Administrator Licenses 15 years 204,000 14,000 158,000 46,000 Total $ 8,901,000 $ 440,000 $ 5,926,000 $ 2,975,000 Amortization expense is expected to be $435,000 in fiscal 2021, $434,000 in fiscal 2022, $425,000 in fiscal 2023, $423,000 in fiscal 2024, $384,000 in fiscal 2025, and $439,000 thereafter. |
Quarterly Results (Unaudited)
Quarterly Results (Unaudited) | 12 Months Ended |
Mar. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results (Unaudited) | Note 16 — Quarterly Results (Unaudited) The following is a summary of unaudited quarterly results of operations for each of the quarters in the fiscal years ended March 31, 2020 and 2019: Revenues Gross Profit Net Income Net Income per Basic Common Share Net Income per Diluted Common Share Fiscal Year Ended March 31, 2020: First Quarter $ 150,139,000 $ 33,134,000 $ 13,407,000 $ 0.72 $ 0.71 Second Quarter 146,970,000 32,843,000 12,871,000 0.70 0.69 Third Quarter 148,092,000 29,253,000 9,352,000 0.51 0.50 Fourth Quarter 147,024,000 30,691,000 11,747,000 0.65 0.64 Fiscal Year Ended March 31, 2019: First Quarter $ 150,398,000 $ 31,353,000 $ 11,778,000 $ 0.62 $ 0.62 Second Quarter 148,176,000 31,490,000 12,789,000 0.68 0.67 Third Quarter 146,082,000 29,354,000 10,298,000 0.55 0.54 Fourth Quarter 151,084,000 32,612,000 11,838,000 0.64 0.63 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Organization | Organization: CorVel Corporation (“CorVel” or “the Company”), incorporated in Delaware in 1987, is an independent nationwide provider of medical cost containment and managed care services designed to address the escalating medical costs of workers’ compensation benefits, automobile insurance claims, and group health insurance benefits. The Company’s services are provided to insurance companies, TPAs, governmental entities, and self-administered employers to assist them in managing the medical costs and monitoring the quality of care associated with healthcare claims. |
Basis of Presentation | Basis of Presentation: The consolidated financial statements include the accounts of CorVel and its wholly-owned subsidiaries. Significant intercompany accounts and transactions have been eliminated in consolidation. Certain prior year amounts have been reclassified to conform to fiscal 2020 presentation. These changes had no impact on previously-reported results of operations or shareholders’ equity. The Company evaluated all subsequent events and transactions through the date of this filing. |
Use of Estimates | Use of Estimates: The preparation of financial statements in compliance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the accompanying consolidated financial statements. Actual results could differ from those estimates. Significant estimates include the values assigned to intangible assets, capitalized software development, the allowance for doubtful accounts, accrual for income taxes, share-based payments related to performance-based awards, loss contingencies, estimated lives of claims for claims administration revenue recognition, estimates used in stock options valuations, and accrual for self-insurance reserves. |
Cash and Cash Equivalents | Cash and Cash Equivalents: Cash and cash equivalents consist of short-term, interest-bearing highly-liquid investment-grade securities with maturities of 90 days or less when purchased. The carrying amounts of the Company’s financial instruments approximate their fair values at March 31, 2020 and 2019 due to the short-term nature of those instruments. Customer deposits represent cash that is expected to be returned or applied towards payment within one year through the Company’s provider reimbursement services. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments: The Company applies ASC 820, “Fair Value Measurements and Disclosures,” which defines fair value, establishes a framework for measuring fair value, and provides for disclosures about fair value measurements, with respect to fair value measurements of (i) nonfinancial assets and liabilities that are recognized or disclosed at fair value in the Company’s consolidated financial statements on a recurring basis (at least annually) and (ii) all financial assets and liabilities. ASC 820 prioritizes the inputs used in measuring fair value into the following hierarchy: Level 1 Quoted market prices in active markets for identical assets or liabilities; Level 2 Observable inputs other than those included in Level 1 (for example, quoted prices for similar assets in active markets or quoted prices for identical assets in inactive markets); and Level 3 Unobservable inputs reflecting management’s own assumptions about the inputs used in estimating the value of the asset. The carrying amount of the Company’s financial instruments (i.e. cash and cash equivalents, accounts receivable, accounts payable, etc.) are all Level 1, and the Company believes their respective carrying values approximates their fair values at March 31, 2020 and 2019 due to the short-term nature of those instruments. The Company has no Level 2 or Level 3 assets or liabilities. |
Investment in Private Equity | Investment in Private Equity: The Company has made an investment of $2,250,000 into a private equity limited partnership that invests in start-up companies primarily in the data analytics industry. The Company accounts for the investment using the cost minus impairment method, plus or minus any changes resulting from observable price changes in orderly transactions. The investment is recorded in other assets on the accompanying consolidated balance sheets. It is not practicable to estimate the fair value of the investment due to the fact that the investment is in a diversified portfolio of companies whose shares are not traded in public markets. |
Revenue Recognition | Revenue Recognition: The Company adopted ASC 606 using the modified retrospective method for those contracts which were not substantially completed as of the transition date, which was April 1, 2018. The reported results for the fiscal years ended March 31, 2020 and 2019 reflect the application of the guidance of ASC 606. Revenue is recognized when control of the promised services is transferred to the Company’s customers in an amount that reflects the consideration expected to be entitled to in exchange for those services. As the Company completes its performance obligations which are identified in Note 2, it has an unconditional right to consideration as outlined in the Company’s contracts. Generally, the Company’s accounts receivable are expected to be collected in 30 days in accordance with the underlying payment terms. For many of the Company’s services, the Company typically has one performance obligation; however, it also provides the customer with an option to acquire additional services. The Company offers multiple services under its patient management and network solutions service lines. The Company typically provides a menu of offerings from which the customer may choose to purchase. The price of each service is separate and distinct and provides a separate and distinct value to the customer. Pricing is generally consistent for each service irrespective of the other services or quantities requested by the customer. In transactions related to third-party service revenue, which includes pharmacy, directed care services and other services provided by the Company’s integrated network solutions services, the Company is considered the principal, as it directs the third party, controls the specified service, performs program utilization review, directs payment to the provider, accepts the financial risk of loss associated with services rendered and combines the services provided into an integrated solution, as specified within the Company’s customer contracts. The Company has the ability to influence contractual fees with customers and possesses the financial risk of loss in certain contractual obligations. These factors indicate the Company is the principal and, as such, it is required to recognize revenue gross and service partner vendor fees in the cost of revenue in the Company’s consolidated income statements. |
Accounts Receivable | Accounts Receivable: The majority of the Company’s accounts receivable are due from companies in the property and casualty insurance industries, self-insured employers and governmental entities. Credit is extended based on evaluation of a customer’s financial condition and, generally, collateral is not required. Accounts receivable are generally due within 30 days and are stated at amounts due from customers net of an allowance for doubtful accounts. Those accounts outstanding longer than the contractual payment terms are considered past due. The Company determines its allowance by considering a number of factors, including the length of time trade accounts receivable are past due, the Company’s previous loss history, the customer’s current ability to pay its obligation to the Company, and the condition of the general economy and the industry as a whole. The Company writes off accounts receivable against the reserve when they become uncollectible. Accounts receivable includes $19,692,000, and $18,434,000 of unbilled receivables at March 31, 2020 and 2019, respectively. Unbilled receivables represent the revenue for work performed which has not yet been invoiced to the customer. Unbilled receivables are generally invoiced within one year. |
Concentrations of Credit Risk | Concentrations of Credit Risk: Substantially all of the Company’s customers are payors of workers’ compensation benefits and property and casualty insurance, which include insurance companies, third party administrators, self-insured employers and government entities. Receivables are generally due within 30 days. Credit losses consistently have been within management’s expectations. Virtually all of the Company’s cash is invested at financial institutions in amounts which exceed the FDIC insurance levels. No customer accounted for 10% or more of revenue for either fiscal 2020, 2019 or 2018. No customer accounted for 10% or more of accounts receivable at either March 31, 2020 or 2019. |
Property and Equipment | Property and Equipment: Additions to property and equipment are recorded at cost. The Company provides for depreciation on property and equipment using the straight-line method by charges to operations in amounts that allocate the cost of depreciable assets over their estimated lives as follows: Asset Classification Building Building Improvements Land Improvements Estimated Useful Life 40 years 20 years 20 years Leasehold Improvements Shorter of 5 years or the life of lease Furniture and Equipment 5 to 7 years Computer Hardware 2 to 5 years Computer Software 3 to 5 years The Company accounts for internally-developed software costs in accordance with ASC 350-40, “Internal Use Software”. Capitalized software development costs, intended for internal use, totaled $27,859,000 (net of $109,749,000 in accumulated amortization) and $27,552,000 (net of $99,045,000 in accumulated amortization), as of March 31, 2020 and 2019, respectively. These costs are included in computer software in property and equipment and are amortized over a period of five years. |
Long-Lived Assets | Long-Lived Assets: The carrying amount of all long-lived assets is evaluated periodically to determine if adjustment to the depreciation and amortization period or to the unamortized balance is warranted. Such evaluation is based principally on the expected utilization of the long-lived assets and the projected, undiscounted cash flows of the operations in which the long-lived assets are deployed. |
Goodwill and Long-Lived Assets | Goodwill and Indefinite Lived Long-Lived Assets: The Company accounts for its business combinations in accordance with the ASC 805-10 through ASC 805-50, “Business Combinations,” which (i) requires that the purchase method of accounting be applied to all business combinations and (ii) addresses the criteria for initial recognition of intangible assets and goodwill. In accordance with ASC 350-10 through ASC 350-30, goodwill and other intangible assets with indefinite lives are not amortized but are tested for impairment annually, or more frequently if circumstances indicate the possibility of impairment. If the carrying value of goodwill or an intangible asset exceeds its fair value, an impairment loss will be recognized. Based on the Company’s tests and reviews, no impairment of its goodwill, intangible assets or other long-lived assets existed at March 31, 2020. However, future events or changes in current circumstances could affect the recoverability of the carrying value of goodwill and long-lived assets. Goodwill amounted to $36,814,000 (net of accumulated amortization of $2,069,000) at March 31, 2020 and at March 31, 2019. |
Cost of Revenues | Cost of Revenues: Cost of services consists primarily of the compensation and fringe benefits of field personnel, including managers, medical bill analysts, field case managers, telephonic case managers, systems support, administrative support, account managers and account executives, and related facility costs including rent, telephone and office supplies. Historically, the costs associated with these additional personnel and facilities have been the most significant factor driving increases in the Company’s cost of services. |
Income Taxes | Income Taxes: The Company provides for income taxes in accordance with provisions specified in ASC 740, “Accounting for Income Taxes”. Accordingly, deferred income tax assets and liabilities are computed for differences between the financial statement and tax bases of assets and liabilities. These differences will result in taxable or deductible amounts in the future, based on tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences become deductible. In making an assessment regarding the probability of realizing a benefit from these deductible differences, management considers the Company’s current and past performance, the market environment in which the Company operates, tax-planning strategies and the length of carry-forward periods for loss carry-forwards, if any. Valuation allowances are established when necessary to reduce deferred tax assets to amounts that are more likely than not to be realized. Further, the Company accrues for income tax issues not yet resolved with federal, state and local tax authorities, when it appears more likely than not that a tax liability has been incurred. |
Share-Based Compensation | Share-Based Compensation: The Company accounts for share-based compensation in accordance with the provisions of ASC Topic 718 “Compensation – Stock Compensation”. Under ASC 718, share-based compensation cost is measured at the grant date, based on the calculated fair value of the award, and is recognized as an expense over the employee’s requisite service period (generally the vesting period of the equity grant). The Company issues performance-based stock options which vest only upon the Company’s achievement of certain earnings per share targets on a calendar year basis, as determined by the Company’s Board of Directors. These options were valued in the same manner as the time-based options. However, the Company only recognizes stock compensation expense to the extent that the targets are determined to be probable of being achieved, which triggers the vesting of the performance options. |
Accrual for Self-insurance Costs | Accrual for Self-insurance Costs: The Company self-insures for the group medical costs and workers’ compensation costs of its employees. Management believes that the self-insurance reserves are appropriate; however, actual claims costs may differ from the original estimates requiring adjustments to the reserves. The Company determines its estimated self-insurance reserves based upon historical trends along with outstanding claims information provided by its claims paying agents. |
Earnings per Share | Earnings per Share: Earnings per common share-basic is based on the weighted average number of common shares outstanding during the period. Earnings per common shares-diluted is based on the weighted average number of common shares and common share equivalents outstanding during the period. In calculating earnings per share, earnings are the same for the basic and diluted calculations. Weighted average shares outstanding is greater for diluted earnings per share due to the effect of stock options. The difference between the basic weighted average shares and the diluted weighted average shares for each of the fiscal years ended March 31, 2020, 2019 and 2018 is as follows: Fiscal 2020 Fiscal 2019 Fiscal 2018 Basic weighted average shares 18,326,000 18,794,000 18,825,000 Treasury stock impact of stock options 276,000 214,000 217,000 Diluted weighted average shares 18,602,000 19,008,000 19,042,000 |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In June 2016, the FASB issued ASU 2016-13 regarding ASC Topic 326, “Measurement of Credit Losses on Financial Instruments”. The pronouncement changes the impairment model for most financial assets and will require the use of an "expected loss" model for instruments measured at amortized cost. Under this model, entities will be required to estimate the lifetime expected credit loss on such instruments and record an allowance to offset the amortized cost basis of the financial asset, resulting in a net presentation of the amount expected to be collected on the financial asset. Subsequently, the FASB issued an amendment to clarify the implementation dates and items that fall within the scope of this pronouncement. This standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The adoption of this guidance will not have a material impact on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-04 regarding ASC Topic 350, “Simplifying the Test for Goodwill Impairment”. The pronouncement simplifies the accounting for goodwill impairments by eliminating step two from the goodwill impairment test. Under this guidance, if the carrying amount of a reporting unit exceeds its estimated fair value, an impairment charge shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. This standard is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. The adoption of this guidance will not have a material impact on the Company’s consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes”. The pronouncement simplifies the accounting for income taxes by removing certain exceptions to the general principles in ASC Topic 740, “Income Taxes”. The pronouncement also improves consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. This standard is effective for fiscal years beginning after December 15, 2020, with early adoption permitted. The Company is still evaluating the impact this guidance will have on its consolidated financial statements. Guidance Adopted In February 2016, the FASB issued ASU No. 2016-02, “Leases”, which sets out the principles for the recognition, measurement, presentation, and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases. This classification will determine whether the lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for using an approach that is similar to the existing guidance for operating leases. The standard is to be applied using a modified retrospective transition method. The Company has adopted this standard as of April 1, 2019. The adoption of this standard did not have a material impact on retained earnings on the consolidated balance sheet and did not have a material impact on the consolidated statements of income. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which allowed the Company to carry forward the historical assessments of whether contracts are or contain leases, lease classification, and initial direct costs. The Company implemented internal controls and key system functionality to enable the preparation of financial information on adoption. Refer to Note 9 of the accompanying consolidated financial statements for a description of the impact of this adopted guidance. On May 28, 2014, the FASB issued ASU 2014-09 regarding ASC Topic 606, “Revenue from Contracts with Customers” (“ASC 606”). This standard provides principles for recognizing revenue for the transfer of promised goods or services to customers with the consideration to which the entity expects to be entitled in exchange for those goods or services. In July 2015, the FASB approved a one-year delay of the effective date of this new revenue recognition standard. The Company has adopted this standard as of April 1, 2018. Refer to Note 2 of the accompanying consolidated financial statements for a description of the impact of the adopted guidance. In January 2016, the FASB issued ASU 2016-01 regarding Subtopic 825-10, “Financials Instruments — Overall: Recognition and Measurements of Financial Assets and Financial Liabilities”. The standard addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. It requires that most equity investments be measured at fair value, with subsequent changes in fair value recognized in net income. The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The Company adopted this guidance prospectively on April 1, 2018. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows”, which reduces diversity in the practice of how certain transactions are classified in the statement of cash flows. The new guidance is effective for annual reporting periods beginning after December 15, 2017, with early adoption permitted. The Company adopted this guidance prospectively on April 1, 2018. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Economic Useful Lives of Property and Equipment | The Company provides for depreciation on property and equipment using the straight-line method by charges to operations in amounts that allocate the cost of depreciable assets over their estimated lives as follows: Asset Classification Building Building Improvements Land Improvements Estimated Useful Life 40 years 20 years 20 years Leasehold Improvements Shorter of 5 years or the life of lease Furniture and Equipment 5 to 7 years Computer Hardware 2 to 5 years Computer Software 3 to 5 years |
Schedule of Earnings Per Share Basic and Diluted | The difference between the basic weighted average shares and the diluted weighted average shares for each of the fiscal years ended March 31, 2020, 2019 and 2018 is as follows: Fiscal 2020 Fiscal 2019 Fiscal 2018 Basic weighted average shares 18,326,000 18,794,000 18,825,000 Treasury stock impact of stock options 276,000 214,000 217,000 Diluted weighted average shares 18,602,000 19,008,000 19,042,000 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Revenue Recognition [Abstract] | |
Schedule of Disaggregated Revenue by Service Line | The following table presents revenues disaggregated by service line for the fiscal years ended March 31, 2020 and 2019: 2020 2019 Patient management services $ 386,814,000 $ 368,198,000 Network solutions services 205,411,000 227,542,000 Total services $ 592,225,000 $ 595,740,000 |
Schedule of Accounts Receivable, Net | March 31, 2020 March 31, 2019 Billed receivables $ 51,208,000 $ 58,410,000 Allowance for doubtful accounts (5,133,000 ) (5,508,000 ) Unbilled receivables 19,692,000 18,434,000 Accounts receivable, net $ 65,767,000 $ 71,336,000 |
Schedule of Deferred Revenues Balance as of Transition Date and Significant Activity Affecting Deferred Revenues | The table below presents the deferred revenues balance and the significant activity affecting deferred revenues during the fiscal year ended March 31, 2020: March 31, 2020 Beginning balance at April 1, 2019 (Note 5) $ 16,900,000 Additions 29,281,000 Revenue recognized from beginning of period (8,482,000 ) Revenue recognized from additions (20,054,000 ) Ending balance at March 31, 2020 (Note 5) $ 17,645,000 |
Stock Options and Stock-Based_2
Stock Options and Stock-Based Compensation (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Weighted Average Assumptions | The following weighted average assumptions were used for the fiscal years ended March 31, 2020, 2019 and 2018: Fiscal 2020 Fiscal 2019 Fiscal 2018 Expected volatility 33 % 34 % 40 % Risk free interest rate 1.42% to 2.33% 2.46% to 2.96% 1.88% to 2.56% Dividend yield 0.0 % 0.0 % 0.0 % Weighted average option life 4.4 to 4.5 years 4.4 to 4.5 years 4.4 to 4.5 years |
Stock Compensation Expense for Time Based Options and Performance Based Options | The table below shows the amounts recognized in the financial statements for the fiscal years ended March 31, 2020, 2019 and 2018. Fiscal 2020 Fiscal 2019 Fiscal 2018 Cost of revenue $ 2,028,000 $ 1,896,000 $ 1,749,000 General and administrative 2,457,000 2,453,000 1,415,000 Total cost of stock-based compensation included in income before income taxes 4,485,000 4,349,000 3,164,000 Amount of income tax benefit recognized 985,000 1,048,000 1,105,000 Amount charged to net income $ 3,500,000 $ 3,301,000 $ 2,059,000 Effect on basic earnings per share $ 0.19 $ 0.18 $ 0.11 Effect on diluted earnings per share $ 0.19 $ 0.17 $ 0.11 |
Stock Options | The following table summarizes information for all stock options for the fiscal years March 31, 2020, 2019 and 2018: Fiscal 2020 Fiscal 2019 Fiscal 2018 Options outstanding – beginning of fiscal year 1,058,411 1,064,439 1,143,928 Options granted 271,575 290,300 334,200 Options exercised (235,932 ) (250,604 ) (314,846 ) Options cancelled/forfeited (64,951 ) (45,724 ) (98,843 ) Options outstanding – end of fiscal year 1,029,103 1,058,411 1,064,439 During the fiscal year, weighted average exercise price of: Options granted $ 79.49 $ 57.27 $ 52.57 Options exercised $ 38.34 $ 36.44 $ 27.59 Options cancelled/forfeited $ 59.87 $ 36.71 $ 35.59 At the end of fiscal year: Price range of outstanding options $20.08-$88.22 $12.71-$62.31 $12.71-$57.75 Weighted average exercise price per share $ 54.87 $ 45.17 $ 39.45 Options available for future grants 316,691 523,415 260,961 Exercisable options 468,107 440,386 445,387 |
Stock Options Outstanding and Exercisable | The following table summarizes the status of stock options outstanding and exercisable at March 31, 2020: Range of Exercise Prices Number of Outstanding Options Weighted Average Remaining Contractual Life Outstanding Options – Weighted Average Exercise Price Exercisable Options – Number of Exercisable Options Exercisable Options – Weighted Average Exercise Price $20.08 to $43.32 264,782 2.19 $ 31.41 247,798 $ 30.91 $43.33 to $57.75 363,979 2.91 52.58 185,609 51.83 $57.76 to $77.93 323,392 4.04 68.83 34,700 59.89 $77.94 to $88.22 76,950 5.50 87.76 — — Total 1,029,103 3.28 $ 54.87 468,107 $ 41.35 |
Outstanding Options | The following table summarizes the status of all outstanding options at March 31, 2020, and changes during the fiscal year then ended: Number of Options Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value as of March 31, 2020 Options outstanding, March 31, 2019 1,058,411 $ 45.17 Granted 271,575 79.49 Exercised (235,932 ) 38.34 Cancelled – forfeited (60,466 ) 61.23 Cancelled – expired (4,485 ) 41.63 Options outstanding, March 31, 2020 1,029,103 $ 54.87 3.28 $ 7,345,665 Options vested and expected to vest 877,664 $ 48.41 2.91 $ 4,465,053 Ending exercisable 468,107 $ 41.35 2.42 $ 6,589,011 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | Property and equipment, net consisted of the following at March 31, 2020 and 2019: 2020 2019 Computer software $ 150,780,000 $ 152,885,000 Office equipment and computers 66,398,000 68,006,000 Land, building and improvements 11,048,000 5,843,000 Leasehold improvements 14,962,000 13,539,000 243,188,000 240,273,000 Less: accumulated depreciation and amortization (167,288,000 ) (178,293,000 ) $ 75,900,000 $ 61,980,000 |
Accounts and Income Taxes Pay_2
Accounts and Income Taxes Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Payables And Accruals [Abstract] | |
Accounts and Income Taxes Payable, Accrued Liabilities | Accounts and income taxes payable consisted of the following at March 31, 2020 and 2019: 2020 2019 Accounts payable $ 15,145,000 $ 9,925,000 Uncertain tax positions 1,218,000 1,553,000 $ 16,363,000 $ 11,478,000 Accrued liabilities consisted of the following at March 31, 2020 and 2019: 2020 2019 Payroll, payroll taxes and employee benefits $ 26,024,000 $ 23,647,000 Customer deposits 48,991,000 45,268,000 Accrued professional service fees 5,919,000 8,377,000 Self-insurance accruals 3,248,000 3,523,000 Deferred revenue 17,645,000 16,900,000 Operating lease liabilities 13,223,000 5,708,000 Other 2,276,000 2,018,000 $ 117,326,000 $ 105,441,000 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Summary of Income Tax Provision | The income tax provision consisted of the following for the fiscal years ended March 31, 2020, 2019 and 2018: 2020 2019 2018 Current — Federal $ 9,212,000 $ 10,233,000 $ 11,177,000 Current — State 2,652,000 3,121,000 1,905,000 Subtotal 11,864,000 13,354,000 13,082,000 Deferred — Federal 1,418,000 941,000 (955,000 ) Deferred — State 52,000 515,000 81,000 Subtotal 1,470,000 1,456,000 (874,000 ) $ 13,334,000 $ 14,810,000 $ 12,208,000 |
Summary of Reconciliation Income Tax Provision from the Statutory Federal Income Tax Rate | The following is a reconciliation of the income tax provision from the statutory federal income tax rate to the effective rate for the fiscal years ended March 31, 2020, 2019 and 2018: 2020 2019 2018 Income taxes at federal statutory rate $ 12,749,000 $ 12,918,000 $ 15,112,000 State income taxes, net of federal benefit 2,243,000 2,848,000 1,645,000 Uncertain tax positions (263,000 ) (175,000 ) (464,000 ) Permanent items and tax credits (1,632,000 ) (666,000 ) (1,364,000 ) Adjustments to returns as filed 110,000 131,000 138,000 Valuation allowance 127,000 317,000 236,000 Impact of tax reform — (563,000 ) (3,095,000 ) $ 13,334,000 $ 14,810,000 $ 12,208,000 |
Summary of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities at March 31, 2020 and 2019 are, as follows: 2020 2019 Deferred tax assets: Accrued liabilities not currently deductible $ 5,640,000 $ 6,277,000 Allowance for doubtful accounts 1,293,000 1,422,000 Stock-based compensation 2,058,000 1,833,000 Accrued rent — 1,474,000 Deferred lease liability 24,765,000 — Other 938,000 1,123,000 Deferred tax assets 34,694,000 12,129,000 Deferred tax liabilities: Excess of book over tax basis of fixed assets (13,024,000 ) (10,836,000 ) Intangible assets (4,507,000 ) (4,438,000 ) Right-of-use asset (22,837,000 ) — Accrued revenue (1,143,000 ) (2,354,000 ) Other (267,000 ) (242,000 ) Total deferred tax liabilities (41,778,000 ) (17,870,000 ) Valuation allowance (680,000 ) (553,000 ) Deferred tax liabilities (42,458,000 ) (18,423,000 ) Net deferred tax liability $ (7,764,000 ) $ (6,294,000 ) |
Reconciliation of the Financial Statement Recognition and Measurement of Uncertain Tax Positions During the Current Fiscal Year | A reconciliation of the financial statement recognition and measurement of uncertain tax positions during the current fiscal year is as follows: Balance as of March 31, 2019 $ 1,264,000 Additions based on tax positions related to the current year 62,000 Additions for tax positions of prior years 30,000 Reductions for tax positions related to the current year — Reductions for tax positions of prior years (344,000 ) Balance as of March 31, 2020 $ 1,012,000 |
Employee Stock Purchase Plan (T
Employee Stock Purchase Plan (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Text Block [Abstract] | |
Summary of Employee Stock Purchase Plan | Summarized ESPP information is as follows: 2020 2019 2018 Employee contributions $ 505,000 $ 503,000 $ 458,000 Shares acquired 8,451 8,271 8,976 Average purchase price $ 59.70 $ 59.55 $ 49.78 |
Treasury Stock (Tables)
Treasury Stock (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Summary of Share Repurchases and Cumulatively Since Inception of Authorization | The share repurchases for the fiscal years ended March 31, 2020, 2019 and 2018 and cumulatively since inception of the authorization, are as follows: 2020 2019 2018 Cumulative Shares repurchased 822,353 582,159 249,245 36,285,591 Cost $ 65,608,000 $ 35,167,000 $ 11,187,000 $ 531,763,000 Average price $ 79.78 $ 60.41 $ 44.88 $ 14.65 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Summary of Components of Lease Expenses | The components of lease expenses are as follows: March 31, 2020 Operating lease expense $ 14,992,000 Short-term lease expense 323,000 Variable lease expense 124,000 Total lease expenses $ 15,439,000 |
Summary of Lease Related Assets and Liabilities Recorded in Balance Sheet Related to Operating Leases | The following table presents the lease related assets and liabilities recorded on the Company’s consolidated balance sheets related to its operating leases: March 31, 2020 Right-of-use asset, net $ 90,666,000 Short-term lease liability $ 13,223,000 Long-term lease liability 85,096,000 Total lease liabilities $ 98,319,000 Weighted average remaining lease term 8.27 years Weighted average discount rate 4.0 % |
Schedule of Supplemental Cash Flow Information Related to Operating Leases | Supplemental cash flow information related to operating leases for fiscal year ended March 31, 2020 were as follows: Cash paid for amounts included in the measurement of operating lease liabilities $ 14,992,000 Operating lease liabilities arising from obtaining ROU assets $ 110,606,000 Reductions to ROU assets resulting from reductions to operating lease liabilities $ 8,354,000 |
Summary of Maturities of Operating Lease Liabilities | As of March 31, 2020, maturities of operating lease liabilities for each of the next five years and thereafter are as follows: 2021 $ 14,971,000 2022 14,282,000 2023 14,361,000 2024 12,924,000 2025 12,360,000 Thereafter 47,908,000 Total lease payments 116,806,000 Less interest (18,487,000 ) Total lease liabilities $ 98,319,000 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Percentages of Revenues Attributable to Patient Management and Network Solutions Services | The percentages of revenues attributable to patient management and network solutions services for the fiscal years ended March 31, 2020, 2019 and 2018 are listed below. 2020 2019 2018 Patient management services 65.3 % 61.8 % 56.7 % Network solutions services 34.7 % 38.2 % 43.3 % 100.0 % 100.0 % 100.0 % |
Other Intangible Assets (Tables
Other Intangible Assets (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets | Other intangible assets consisted of the following at March 31, 2020: Item Life Cost Fiscal 2020 Amortization Expense Accumulated Amortization at March 31, 2020 Cost, Net of Accumulated Amortization at March 31, 2020 Covenant Not to Compete 5 years $ 775,000 $ — $ 775,000 $ — Customer Relationships 18-20 years 7,922,000 421,000 5,414,000 2,508,000 Third Party Administrator Licenses 15 years 204,000 14,000 172,000 32,000 Total $ 8,901,000 $ 435,000 $ 6,361,000 $ 2,540,000 Other intangible assets consisted of the following at March 31, 2019: Item Life Cost Fiscal 2019 Amortization Expense Accumulated Amortization at March 31, 2019 Cost, Net of Accumulated Amortization at March 31, 2019 Covenant Not to Compete 5 years $ 775,000 $ — $ 775,000 $ — Customer Relationships 18-20 years 7,922,000 426,000 4,993,000 2,929,000 Third Party Administrator Licenses 15 years 204,000 14,000 158,000 46,000 Total $ 8,901,000 $ 440,000 $ 5,926,000 $ 2,975,000 |
Quarterly Results (Unaudited) (
Quarterly Results (Unaudited) (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Unaudited Quarterly Results of Operations | The following is a summary of unaudited quarterly results of operations for each of the quarters in the fiscal years ended March 31, 2020 and 2019: Revenues Gross Profit Net Income Net Income per Basic Common Share Net Income per Diluted Common Share Fiscal Year Ended March 31, 2020: First Quarter $ 150,139,000 $ 33,134,000 $ 13,407,000 $ 0.72 $ 0.71 Second Quarter 146,970,000 32,843,000 12,871,000 0.70 0.69 Third Quarter 148,092,000 29,253,000 9,352,000 0.51 0.50 Fourth Quarter 147,024,000 30,691,000 11,747,000 0.65 0.64 Fiscal Year Ended March 31, 2019: First Quarter $ 150,398,000 $ 31,353,000 $ 11,778,000 $ 0.62 $ 0.62 Second Quarter 148,176,000 31,490,000 12,789,000 0.68 0.67 Third Quarter 146,082,000 29,354,000 10,298,000 0.55 0.54 Fourth Quarter 151,084,000 32,612,000 11,838,000 0.64 0.63 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Detail) - Allowance for Doubtful Accounts [Member] - USD ($) | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | $ 5,508,000 | $ 4,551,000 | $ 3,001,000 |
Additions Charged to Cost and Expenses | 1,606,000 | 1,875,000 | 2,559,000 |
Deductions | (1,981,000) | (918,000) | (1,009,000) |
Balance at End of Year | $ 5,133,000 | $ 5,508,000 | $ 4,551,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||
Mar. 31, 2020USD ($)PerformanceObligationCustomer | Mar. 31, 2019USD ($)Customer | Mar. 31, 2018Customer | |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Maturities of short term investment interest-bearing securities | 90 days | ||
Accounts receivable due period | 30 days | ||
Revenue recognition, number of performance obligation | PerformanceObligation | 1 | ||
Unbilled account receivables | $ 19,692,000 | $ 18,434,000 | |
Capitalized software development costs | 27,859,000 | 27,552,000 | |
Accumulated amortization of software development costs | 109,749,000 | 99,045,000 | |
Impairment of goodwill, intangible assets or other long-lived assets | 0 | ||
Goodwill | 36,814,000 | 36,814,000 | |
Accumulated amortization of goodwill | $ 2,069,000 | $ 2,069,000 | |
Computer Software Property and Equipment [Member] | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Amortization period of computer software | 5 years | ||
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Maximum customer risk percentage | 10.00% | 10.00% | 10.00% |
Number of customer | Customer | 0 | 0 | 0 |
Credit Concentration Risk [Member] | Accounts Receivable [Member] | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Maximum customer risk percentage | 10.00% | 10.00% | |
Number of customer | Customer | 0 | 0 | |
Private Equity Funds [Member] | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Investment | $ 2,250,000 | ||
Fair Value, Inputs, Level 2 [Member] | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Transfer of assets | 0 | ||
Transfer of liabilities | 0 | ||
Fair Value, Inputs, Level 3 [Member] | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Transfer of assets | 0 | ||
Transfer of liabilities | $ 0 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Estimated Economic Useful Lives of Property and Equipment (Detail) | 12 Months Ended |
Mar. 31, 2020 | |
Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property and equipment | 40 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property and equipment | Shorter of 5 years or the life of lease |
Building Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property and equipment | 20 years |
Furniture and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property and equipment | 5 years |
Furniture and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property and equipment | 7 years |
Land Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property and equipment | 20 years |
Computer Hardware [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property and equipment | 2 years |
Computer Hardware [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property and equipment | 5 years |
Computer Software Property and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property and equipment | 3 years |
Computer Software Property and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property and equipment | 5 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Earnings Per Share Basic and Diluted (Detail) - shares | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |||
Basic weighted average shares | 18,326,000 | 18,794,000 | 18,825,000 |
Treasury stock impact of stock options | 276,000 | 214,000 | 217,000 |
Diluted weighted average shares | 18,602,000 | 19,008,000 | 19,042,000 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) $ in Millions | 12 Months Ended |
Mar. 31, 2020USD ($)PerformanceObligationSegment | |
Disaggregation Of Revenue [Line Items] | |
Accounts receivable due period | 30 days |
Number of reportable segments | Segment | 1 |
Revenue recognition, number of performance obligation | PerformanceObligation | 1 |
Latest duration of unbilled revenue, billing | 1 year |
Revenue, remaining performance obligation, amount | $ | $ 17.6 |
Revenue, remaining performance obligation, percentage | 97.00% |
Revenue, remaining performance obligation, expected timing of satisfaction, explanation | The Company expects to recognize approximately 97% of its remaining performance obligations as revenues within one year and the remaining balance thereafter. |
Capitalized contract cost, judgment | The Company has an internal sales force compensation program where remuneration is based solely on the revenues recognized in the period and does not represent an incremental cost to the Company which provides a future benefit expected to be longer than one year and would meet the criteria to be capitalized and presented as unbilled receivables on the Company’s consolidated balance sheets. |
Period between consideration received and service rendered | one year or less |
Patient Management Services [Member] | |
Disaggregation Of Revenue [Line Items] | |
Contract with customer, performance obligation, description | The Company’s obligation to manage claims and cases under the patient management service line can range from less than one year to multi-year contracts. They are generally one year under the terms of the contract; however, many of these contracts contain auto-renewal provisions and the Company’s customer relationships can span multiple years. Under certain claims management agreements, the Company receives consideration from a customer at contract inception prior to transferring services to the customer, however, the Company would begin performing services immediately. The period between a customer’s payment of consideration and the completion of the promised services is generally less than one year. There is no difference between the amount of promised consideration and the cash selling price of the promised services. The fee is billed upfront by the Company in order to provide customers with simplified and predictable ways of purchasing the Company’s services. |
Patient Management Services [Member] | Minimum [Member] | |
Disaggregation Of Revenue [Line Items] | |
Revenue recognition, time elapsed for claims | 3 months |
Patient Management Services [Member] | Maximum [Member] | |
Disaggregation Of Revenue [Line Items] | |
Revenue recognition, time elapsed for claims | 15 months |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Revenues Disaggregated by Service Line (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
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, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | |||||||||||
Total services | $ 147,024,000 | $ 148,092,000 | $ 146,970,000 | $ 150,139,000 | $ 151,084,000 | $ 146,082,000 | $ 148,176,000 | $ 150,398,000 | $ 592,225,000 | $ 595,740,000 | $ 558,350,000 |
Patient Management Services [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total services | 386,814,000 | 368,198,000 | |||||||||
Network Solutions Services [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total services | $ 205,411,000 | $ 227,542,000 |
Revenue Recognition - Schedul_2
Revenue Recognition - Schedule of Accounts Receivable, Net (Detail) - USD ($) | Mar. 31, 2020 | Mar. 31, 2019 |
Accounts Receivable Net Current [Abstract] | ||
Billed receivables | $ 51,208,000 | $ 58,410,000 |
Allowance for doubtful accounts | (5,133,000) | (5,508,000) |
Unbilled account receivables | 19,692,000 | 18,434,000 |
Accounts receivable, net | $ 65,767,000 | $ 71,336,000 |
Revenue Recognition - Schedul_3
Revenue Recognition - Schedule of Deferred Revenues Balance as of Transition Date and Significant Activity Affecting Deferred Revenues (Detail) | 12 Months Ended |
Mar. 31, 2020USD ($) | |
Change In Contract With Customer Liability [Abstract] | |
Beginning balance at April 1, 2019 (Note 5) | $ 16,900,000 |
Additions | 29,281,000 |
Revenue recognized from beginning of period | (8,482,000) |
Revenue recognized from additions | (20,054,000) |
Ending balance at March 31, 2020 (Note 5) | $ 17,645,000 |
Revenue Recognition - Additio_2
Revenue Recognition - Additional Information (Detail1) | Mar. 31, 2020 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-04-01 | |
Disaggregation Of Revenue [Line Items] | |
Revenue, remaining performance obligation, expected recognition as revenue, period | 1 year |
Stock Options and Stock-Based_3
Stock Options and Stock-Based Compensation - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non-statutory stock options expiration period | 5 years | ||
Weighted-average grant-date fair value of options granted | $ 22.99 | $ 19.83 | $ 19.24 |
Total intrinsic value of options exercised | $ 10,281,000 | $ 5,817,000 | $ 7,780,000 |
Cash received from exercise of stock options | 8,147,000 | 7,241,000 | 3,426,000 |
Unrecognized compensation costs related to stock options | $ 6,054,000 | ||
Weighted average period to recognized compensation cost | 3 years | ||
Time Based Options and Performance Based Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 4,485,000 | 4,349,000 | 3,164,000 |
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 1,625,000 | $ 1,631,000 | $ 649,000 |
Director [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non-statutory stock options expiration period | 10 years | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock grants | 19,865,000 | ||
Non-statutory stock options vesting period | 36 months | ||
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non-statutory stock options vesting period | 1 year | ||
Share-based Compensation Award, Tranche One [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting Percentage | 25.00% | ||
Share-based Compensation Award, Tranche Two [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting Percentage | 75.00% |
Stock Options and Stock-Based_4
Stock Options and Stock-Based Compensation - Weighted Average Assumptions (Detail) | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 33.00% | 34.00% | 40.00% |
Risk free interest rate, Minimum | 1.42% | 2.46% | 1.88% |
Risk free interest rate, Maximum | 2.33% | 2.96% | 2.56% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average option life | 4 years 4 months 24 days | 4 years 4 months 24 days | 4 years 4 months 24 days |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average option life | 4 years 6 months | 4 years 6 months | 4 years 6 months |
Stock Options and Stock-Based_5
Stock Options and Stock-Based Compensation - Stock Compensation Expense for Time Based Options and Performance Based Options (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
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, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||||
Effect on basic earnings per share | $ 0.65 | $ 0.51 | $ 0.70 | $ 0.72 | $ 0.64 | $ 0.55 | $ 0.68 | $ 0.62 | $ 2.59 | $ 2.48 | $ 1.90 |
Effect on diluted earnings per share | $ 0.64 | $ 0.50 | $ 0.69 | $ 0.71 | $ 0.63 | $ 0.54 | $ 0.67 | $ 0.62 | $ 2.55 | $ 2.46 | $ 1.87 |
Time Based Options and Performance Based Options [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||||
Total cost of stock-based compensation included in income before income taxes | $ 4,485,000 | $ 4,349,000 | $ 3,164,000 | ||||||||
Amount of income tax benefit recognized | 985,000 | 1,048,000 | 1,105,000 | ||||||||
Amount charged to net income | $ 3,500,000 | $ 3,301,000 | $ 2,059,000 | ||||||||
Effect on basic earnings per share | $ 0.19 | $ 0.18 | $ 0.11 | ||||||||
Effect on diluted earnings per share | $ 0.19 | $ 0.17 | $ 0.11 | ||||||||
Time Based Options and Performance Based Options [Member] | Cost of Revenue [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||||
Total cost of stock-based compensation included in income before income taxes | $ 2,028,000 | $ 1,896,000 | $ 1,749,000 | ||||||||
Time Based Options and Performance Based Options [Member] | General and Administrative [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||||
Total cost of stock-based compensation included in income before income taxes | $ 2,457,000 | $ 2,453,000 | $ 1,415,000 |
Stock Options and Stock-Based_6
Stock Options and Stock-Based Compensation - Stock Options (Detail) - $ / shares | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options outstanding, beginning balance, Shares | 1,058,411 | 1,064,439 | 1,143,928 |
Options granted, Shares | 271,575 | 290,300 | 334,200 |
Options exercised, Shares | (235,932) | (250,604) | (314,846) |
Options cancelled/forfeited, Shares | (64,951) | (45,724) | (98,843) |
Options outstanding, ending balance, Shares | 1,029,103 | 1,058,411 | 1,064,439 |
Options granted, weighted average exercise price | $ 79.49 | $ 57.27 | $ 52.57 |
Options exercised, weighted average exercise price | 38.34 | 36.44 | 27.59 |
Options cancelled/forfeited, weighted average exercise price | 59.87 | 36.71 | 35.59 |
Weighted average exercise price per share | $ 54.87 | $ 45.17 | $ 39.45 |
Options available for future grants | 316,691 | 523,415 | 260,961 |
Exercisable options | 468,107 | 440,386 | 445,387 |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Price range of outstanding options | $ 20.08 | $ 12.71 | $ 12.71 |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Price range of outstanding options | $ 88.22 | $ 62.31 | $ 57.75 |
Stock Options and Stock-Based_7
Stock Options and Stock-Based Compensation - Stock Options Outstanding and Exercisable (Detail) - $ / shares | 12 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Number of Outstanding Options | 1,029,103 | 1,058,411 | 1,064,439 | 1,143,928 |
Weighted Average Remaining Contractual Life | 3 years 3 months 10 days | |||
Outstanding Options – Weighted Average Exercise Price | $ 54.87 | $ 45.17 | $ 39.45 | |
Exercisable Options – Number of Exercisable Options | 468,107 | |||
Exercisable Options – Weighted Average Exercise Price | $ 41.35 | |||
Range of Exercise Price, $20.08 to $43.32 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Price, lower limit | 20.08 | |||
Range of Exercise Price, upper limit | $ 43.32 | |||
Number of Outstanding Options | 264,782 | |||
Weighted Average Remaining Contractual Life | 2 years 2 months 8 days | |||
Outstanding Options – Weighted Average Exercise Price | $ 31.41 | |||
Exercisable Options – Number of Exercisable Options | 247,798 | |||
Exercisable Options – Weighted Average Exercise Price | $ 30.91 | |||
Range of Exercise Price, $43.33 to $57.75 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Price, lower limit | 43.33 | |||
Range of Exercise Price, upper limit | $ 57.75 | |||
Number of Outstanding Options | 363,979 | |||
Weighted Average Remaining Contractual Life | 2 years 10 months 28 days | |||
Outstanding Options – Weighted Average Exercise Price | $ 52.58 | |||
Exercisable Options – Number of Exercisable Options | 185,609 | |||
Exercisable Options – Weighted Average Exercise Price | $ 51.83 | |||
Range of Exercise Price, $57.76 to $77.93 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Price, lower limit | 57.76 | |||
Range of Exercise Price, upper limit | $ 77.93 | |||
Number of Outstanding Options | 323,392 | |||
Weighted Average Remaining Contractual Life | 4 years 14 days | |||
Outstanding Options – Weighted Average Exercise Price | $ 68.83 | |||
Exercisable Options – Number of Exercisable Options | 34,700 | |||
Exercisable Options – Weighted Average Exercise Price | $ 59.89 | |||
Range of Exercise Price, $77.94 to $88.22 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Price, lower limit | 77.94 | |||
Range of Exercise Price, upper limit | $ 88.22 | |||
Number of Outstanding Options | 76,950 | |||
Weighted Average Remaining Contractual Life | 5 years 6 months | |||
Outstanding Options – Weighted Average Exercise Price | $ 87.76 | |||
Exercisable Options – Number of Exercisable Options | 0 | |||
Exercisable Options – Weighted Average Exercise Price | $ 0 |
Stock Options and Stock-Based_8
Stock Options and Stock-Based Compensation - Outstanding Options (Detail) - USD ($) | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Options outstanding, beginning balance, Shares | 1,058,411 | 1,064,439 | 1,143,928 |
Granted, Number of Options | 271,575 | 290,300 | 334,200 |
Exercised, Number of Options | (235,932) | (250,604) | (314,846) |
Cancelled - forfeited, Number of Options | (60,466) | ||
Cancelled - expired, Number of Options | (4,485) | ||
Options outstanding, ending balance, Shares | 1,029,103 | 1,058,411 | 1,064,439 |
Options vested and expected to vest, Number of Options | 877,664 | ||
Ending exercisable, Number of Options | 468,107 | ||
Options outstanding, beginning balance, Weighted Average Exercise Price | $ 45.17 | $ 39.45 | |
Granted, Weighted Average Exercise Price per Share | 79.49 | 57.27 | $ 52.57 |
Exercised, Weighted Average Exercise Price per Share | 38.34 | 36.44 | 27.59 |
Cancelled - forfeited, Weighted Average Exercise Price per Share | 61.23 | ||
Cancelled - expired, Weighted Average Exercise Price per Share | 41.63 | ||
Options outstanding, ending balance, Weighted Average Exercise Price | 54.87 | $ 45.17 | $ 39.45 |
Options vested and expected to vest, Weighted Average Exercise Price per Share | 48.41 | ||
Ending exercisable, Weighted Average Exercise Price per Share | $ 41.35 | ||
Option outstanding, Weighted Average Remaining Contractual Life (Years) | 3 years 3 months 10 days | ||
Options vested and expected to vest, Weighted Average Remaining Contractual Life (Years) | 2 years 10 months 28 days | ||
Ending exercisable, Weighted Average Remaining Contractual Life (Years) | 2 years 5 months 1 day | ||
Option outstanding, Aggregate Intrinsic Value | $ 7,345,665 | ||
Options vested and expected to vest, Aggregate Intrinsic Value | 4,465,053 | ||
Ending exercisable, Aggregate Intrinsic Value | $ 6,589,011 |
Property and Equipment - Proper
Property and Equipment - Property and Equipment, Net (Detail) - USD ($) | Mar. 31, 2020 | Mar. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 243,188,000 | $ 240,273,000 |
Less: accumulated depreciation and amortization | (167,288,000) | (178,293,000) |
Property and equipment, net | 75,900,000 | 61,980,000 |
Computer Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 150,780,000 | 152,885,000 |
Office Equipment And Computers [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 66,398,000 | 68,006,000 |
Land, Building And Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 11,048,000 | 5,843,000 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 14,962,000 | $ 13,539,000 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense | $ 22,081,000 | $ 22,544,000 | $ 21,338,000 |
Accounts and Income Taxes Pay_3
Accounts and Income Taxes Payable and Accrued Liabilities - Accounts and Income Taxes Payable (Detail) - USD ($) | Mar. 31, 2020 | Mar. 31, 2019 |
Payables And Accruals [Abstract] | ||
Accounts payable | $ 15,145,000 | $ 9,925,000 |
Uncertain tax positions | 1,218,000 | 1,553,000 |
Total accounts and taxes payable | $ 16,363,000 | $ 11,478,000 |
Accounts and Income Taxes Pay_4
Accounts and Income Taxes Payable and Accrued Liabilities - Accrued Liabilities (Detail) - USD ($) | Mar. 31, 2020 | Mar. 31, 2019 |
Payables And Accruals [Abstract] | ||
Payroll, payroll taxes and employee benefits | $ 26,024,000 | $ 23,647,000 |
Customer deposits | 48,991,000 | 45,268,000 |
Accrued professional service fees | 5,919,000 | 8,377,000 |
Self-insurance accruals | 3,248,000 | 3,523,000 |
Deferred revenue | 17,645,000 | 16,900,000 |
Operating lease liabilities | 13,223,000 | 5,708,000 |
Other | 2,276,000 | 2,018,000 |
Total accrued liabilities | $ 117,326,000 | $ 105,441,000 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Provision (Detail) - USD ($) | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Current — Federal | $ 9,212,000 | $ 10,233,000 | $ 11,177,000 |
Current — State | 2,652,000 | 3,121,000 | 1,905,000 |
Subtotal | 11,864,000 | 13,354,000 | 13,082,000 |
Deferred — Federal | 1,418,000 | 941,000 | (955,000) |
Deferred — State | 52,000 | 515,000 | 81,000 |
Subtotal | 1,470,000 | 1,456,000 | (874,000) |
Total | $ 13,334,000 | $ 14,810,000 | $ 12,208,000 |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation Income Tax Provision from the Statutory Federal Income Tax Rate (Detail) - USD ($) | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Income taxes at federal statutory rate | $ 12,749,000 | $ 12,918,000 | $ 15,112,000 |
State income taxes, net of federal benefit | 2,243,000 | 2,848,000 | 1,645,000 |
Uncertain tax positions | (263,000) | (175,000) | (464,000) |
Permanent items and tax credits | (1,632,000) | (666,000) | (1,364,000) |
Adjustments to returns as filed | 110,000 | 131,000 | 138,000 |
Valuation allowance | 127,000 | 317,000 | 236,000 |
Impact of tax reform | 0 | (563,000) | (3,095,000) |
Total | $ 13,334,000 | $ 14,810,000 | $ 12,208,000 |
Income Taxes - Summary of Defer
Income Taxes - Summary of Deferred Tax Assets and Liabilities (Detail) - USD ($) | Mar. 31, 2020 | Mar. 31, 2019 |
Deferred tax assets: | ||
Accrued liabilities not currently deductible | $ 5,640,000 | $ 6,277,000 |
Allowance for doubtful accounts | 1,293,000 | 1,422,000 |
Stock-based compensation | 2,058,000 | 1,833,000 |
Accrued rent | 0 | 1,474,000 |
Deferred lease liability | 24,765,000 | 0 |
Other | 938,000 | 1,123,000 |
Deferred tax assets | 34,694,000 | 12,129,000 |
Deferred tax liabilities: | ||
Excess of book over tax basis of fixed assets | (13,024,000) | (10,836,000) |
Intangible assets | (4,507,000) | (4,438,000) |
Right-of-use asset | (22,837,000) | 0 |
Accrued revenue | (1,143,000) | (2,354,000) |
Other | (267,000) | (242,000) |
Total deferred tax liabilities | (41,778,000) | (17,870,000) |
Valuation allowance | (680,000) | (553,000) |
Deferred tax liabilities | (42,458,000) | (18,423,000) |
Net deferred tax liability | $ (7,764,000) | $ (6,294,000) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2017 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Line Items] | |||||
Prepaid expenses and income taxes | $ 3,870,000 | $ 1,160,000 | |||
Income taxes due included in accounts and income taxes payable | 0 | 73,000 | |||
Recognizes interest and penalties related to uncertain tax positions | (10,000) | 22,000 | $ (53,000) | ||
Accrued interest and penalties related to uncertain tax positions | $ 206,000 | $ 216,000 | $ 194,000 | ||
Reduction of corporate federal income tax rate | 35.00% | 21.00% | |||
Newly enacted corporate federal income tax rate | 21.00% | ||||
Earliest Tax Year [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Tax fiscal years open to examination | 2016 | ||||
Latest Tax Year [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Tax fiscal years open to examination | 2019 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the Financial Statement Recognition and Measurement of Uncertain Tax Positions During the Current Fiscal Year (Detail) | 12 Months Ended |
Mar. 31, 2020USD ($) | |
Income Tax Disclosure [Abstract] | |
Balance as of March 31, 2019 | $ 1,264,000 |
Additions based on tax positions related to the current year | 62,000 |
Additions for tax positions of prior years | 30,000 |
Reductions for tax positions related to the current year | 0 |
Reductions for tax positions of prior years | (344,000) |
Balance as of March 31, 2020 | $ 1,012,000 |
Employee Stock Purchase Plan -
Employee Stock Purchase Plan - Additional Information (Detail) - shares | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Employee Stock Purchase Plan [Line Items] | |||
Percentage of employees contribution of their gross pay | 20.00% | ||
Stock issued under employee stock purchase plan, shares | 2,486,565 | ||
Employee Stock Purchase Plan [Member] | |||
Employee Stock Purchase Plan [Line Items] | |||
Percentage as purchase price of closing sale price of shares | 95.00% | ||
Maximum shares authorized for issuance under the ESPP | 2,850,000 | ||
Stock issued under employee stock purchase plan, shares | 8,451 | 8,271 | 8,976 |
Employee Stock Purchase Plan _2
Employee Stock Purchase Plan - Summary of Employee Stock Purchase Plan (Detail) - USD ($) | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Employee Stock Purchase Plan [Line Items] | |||
Employee contributions | $ 505,000 | $ 503,000 | $ 458,000 |
Shares acquired | 2,486,565 | ||
Employee Stock Purchase Plan [Member] | |||
Employee Stock Purchase Plan [Line Items] | |||
Shares acquired | 8,451 | 8,271 | 8,976 |
Average purchase price | $ 59.70 | $ 59.55 | $ 49.78 |
Treasury Stock - Additional Inf
Treasury Stock - Additional Information (Detail) | Mar. 31, 2020shares |
Equity [Abstract] | |
Number of shares of common stock authorized to repurchase | 37,000,000 |
Treasury Stock - Summary of Sha
Treasury Stock - Summary of Share Repurchases and Cumulatively Since Inception of Authorization (Detail) - USD ($) | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Equity [Abstract] | |||
Shares repurchased | 822,353 | 582,159 | 249,245 |
Cost | $ 65,608,000 | $ 35,167,000 | $ 11,187,000 |
Average price | $ 79.78 | $ 60.41 | $ 44.88 |
Shares repurchased, Cumulative | 36,285,591 | ||
Cost, Cumulative | $ 531,763,000 | ||
Average price, Cumulative | $ 14.65 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Millions | 12 Months Ended |
Mar. 31, 2020USD ($) | |
Lessee Lease Description [Line Items] | |
Additional operating lease commitments not yet commenced | $ 4.4 |
Minimum [Member] | |
Lessee Lease Description [Line Items] | |
Remaining lease term | 1 year |
Operating lease commitments not yet commenced, lease term | 2 years |
Maximum [Member] | |
Lessee Lease Description [Line Items] | |
Remaining lease term | 15 years |
Operating lease commitments not yet commenced, lease term | 11 years |
Leases - Summary of Components
Leases - Summary of Components of Lease Expenses (Details) | 12 Months Ended |
Mar. 31, 2020USD ($) | |
Leases [Abstract] | |
Operating lease expense | $ 14,992,000 |
Short-term lease expense | 323,000 |
Variable lease expense | 124,000 |
Total lease expenses | $ 15,439,000 |
Leases - Summary of Lease Relat
Leases - Summary of Lease Related Assets and Liabilities Recorded in Balance Sheet Related to Operating Leases (Details) - USD ($) | Mar. 31, 2020 | Mar. 31, 2019 |
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Right-of-use asset, net | $ 90,666,000 | $ 0 |
Long-term operating lease liabilities | 85,096,000 | $ 0 |
Total lease liabilities | $ 98,319,000 | |
Weighted average remaining lease term | 8 years 3 months 7 days | |
Weighted average discount rate | 4.00% | |
Accrued Liabilities [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Short-term lease liability | $ 13,223,000 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information Related to Operating Leases (Detail) | 12 Months Ended |
Mar. 31, 2020USD ($) | |
Leases [Abstract] | |
Cash paid for amounts included in the measurement of operating lease liabilities | $ 14,992,000 |
Operating lease liabilities arising from obtaining ROU assets | 110,606,000 |
Reductions to ROU assets resulting from reductions to operating lease liabilities | $ 8,354,000 |
Leases - Summary of Maturities
Leases - Summary of Maturities of Operating Lease Liabilities (Details) | Mar. 31, 2020USD ($) |
Operating Lease Liabilities Payments Due [Abstract] | |
2021 | $ 14,971,000 |
2022 | 14,282,000 |
2023 | 14,361,000 |
2024 | 12,924,000 |
2025 | 12,360,000 |
Thereafter | 47,908,000 |
Total lease payments | 116,806,000 |
Less interest | (18,487,000) |
Total lease liabilities | $ 98,319,000 |
Retirement Savings Plan - Addit
Retirement Savings Plan - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |||
Employer contribution | $ 829,000 | $ 777,000 | $ 557,000 |
Shareholder Rights Plan - Addit
Shareholder Rights Plan - Additional Information (Detail) - $ / shares | 1 Months Ended | 12 Months Ended |
Nov. 30, 2008 | Mar. 31, 2020 | |
Equity [Abstract] | ||
Dividend distribution ratio of preferred share purchase right for outstanding share of common stock | 100.00% | |
Shareholder rights exercise price | $ 118 | |
Shareholder rights expiration date | Feb. 10, 2022 | |
Shareholder Rights Plan, description of acquired entity | Shareholder Rights Plan provides that if a person or group acquires 15% or more of the Company’s common stock | |
Shareholder Rights Plan, percentage of acquired entity | 15.00% | |
Shareholder Rights Plan, description of merged entity | Company is thereafter merged into another entity, or if 50% or more of the Company’s consolidated assets or earning power are sold, then the right would entitle its holder to buy common shares of the acquiring entity having a market value equal to two times the then-current exercise price of the right. | |
Shareholder Rights Plan, percentage of merged entity | 50.00% |
Line of Credit - Additional Inf
Line of Credit - Additional Information (Detail) | 12 Months Ended |
Mar. 31, 2020 | |
Revolving Credit Facility | |
Line of Credit Facility [Line Items] | |
Revolving credit agreement expiration period | Sep. 30, 2019 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Percentages of Revenues Attributable to Patient Management and Network Solutions Services (Detail) - Product Concentration Risk [Member] - Sales Revenue, Services, Net [Member] | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue, Major Customer [Line Items] | |||
Percentage of revenues | 100.00% | 100.00% | 100.00% |
Patient Management Services [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of revenues | 65.30% | 61.80% | 56.70% |
Network Solutions Services [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of revenues | 34.70% | 38.20% | 43.30% |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 12 Months Ended |
Mar. 31, 2020Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |
Other Intangible Assets - Other
Other Intangible Assets - Other Intangible Assets (Detail) - USD ($) | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Finite Lived Intangible Assets [Line Items] | ||
Cost | $ 8,901,000 | $ 8,901,000 |
Amortization Expense | 435,000 | 440,000 |
Accumulated Amortization | 6,361,000 | 5,926,000 |
Cost, Net of Accumulated Amortization | $ 2,540,000 | $ 2,975,000 |
Covenant Not to Compete [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Life | 5 years | 5 years |
Cost | $ 775,000 | $ 775,000 |
Amortization Expense | 0 | 0 |
Accumulated Amortization | 775,000 | 775,000 |
Cost, Net of Accumulated Amortization | 0 | 0 |
Customer Relationships [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Cost | 7,922,000 | 7,922,000 |
Amortization Expense | 421,000 | 426,000 |
Accumulated Amortization | 5,414,000 | 4,993,000 |
Cost, Net of Accumulated Amortization | $ 2,508,000 | $ 2,929,000 |
Customer Relationships [Member] | Minimum [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Life | 18 years | 18 years |
Customer Relationships [Member] | Maximum [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Life | 20 years | 20 years |
Third Party Administrator Licenses [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Life | 15 years | 15 years |
Cost | $ 204,000 | $ 204,000 |
Amortization Expense | 14,000 | 14,000 |
Accumulated Amortization | 172,000 | 158,000 |
Cost, Net of Accumulated Amortization | $ 32,000 | $ 46,000 |
Other Intangible Assets - Addit
Other Intangible Assets - Additional Information (Detail) | Mar. 31, 2020USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2021 | $ 435,000 |
2022 | 434,000 |
2023 | 425,000 |
2024 | 423,000 |
2025 | 384,000 |
Thereafter | $ 439,000 |
Quarterly Results (Unaudited) -
Quarterly Results (Unaudited) - Summary of Unaudited Quarterly Results of Operations (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
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, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 147,024,000 | $ 148,092,000 | $ 146,970,000 | $ 150,139,000 | $ 151,084,000 | $ 146,082,000 | $ 148,176,000 | $ 150,398,000 | $ 592,225,000 | $ 595,740,000 | $ 558,350,000 |
Gross Profit | 30,691,000 | 29,253,000 | 32,843,000 | 33,134,000 | 32,612,000 | 29,354,000 | 31,490,000 | 31,353,000 | 125,921,000 | 124,809,000 | 107,253,000 |
Net income | $ 11,747,000 | $ 9,352,000 | $ 12,871,000 | $ 13,407,000 | $ 11,838,000 | $ 10,298,000 | $ 12,789,000 | $ 11,778,000 | $ 47,377,000 | $ 46,703,000 | $ 35,695,000 |
Net Income per Basic Common Share | $ 0.65 | $ 0.51 | $ 0.70 | $ 0.72 | $ 0.64 | $ 0.55 | $ 0.68 | $ 0.62 | $ 2.59 | $ 2.48 | $ 1.90 |
Net Income per Diluted Common Share | $ 0.64 | $ 0.50 | $ 0.69 | $ 0.71 | $ 0.63 | $ 0.54 | $ 0.67 | $ 0.62 | $ 2.55 | $ 2.46 | $ 1.87 |