Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | MOTORCAR PARTS AMERICA INC | |
Entity Central Index Key | 918,251 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 18,809,102 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q2 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Mar. 31, 2017 |
Current assets: | ||||
Cash and cash equivalents | $ 6,175,000 | $ 13,049,000 | ||
Short-term investments | 3,230,000 | 2,828,000 | ||
Accounts receivable - net | 56,085,000 | 63,174,000 | ||
Inventory - net | 188,287,000 | 161,210,000 | ||
Inventory unreturned | 9,100,000 | 7,508,000 | ||
Contract assets (see Note 8) | 24,272,000 | 23,206,000 | ||
Income tax receivable | 11,572,000 | 7,972,000 | ||
Prepaid expenses and other current assets | 10,200,000 | 8,608,000 | ||
Total current assets | 308,921,000 | 287,555,000 | ||
Plant and equipment - net | 30,512,000 | 28,322,000 | ||
Long-term deferred income taxes | 7,345,000 | 6,698,000 | ||
Long-term contract assets (see Note 8) | 230,438,000 | 222,731,000 | ||
Goodwill | 2,551,000 | 2,551,000 | $ 2,551,000 | $ 2,551,000 |
Intangible assets - net | 3,380,000 | 3,766,000 | ||
Other assets | 866,000 | 804,000 | ||
TOTAL ASSETS | 584,013,000 | 552,427,000 | ||
Current liabilities: | ||||
Accounts payable | 92,663,000 | 73,273,000 | ||
Accrued liabilities | 10,622,000 | 12,048,000 | ||
Customer finished goods returns accrual | 19,961,000 | 17,805,000 | ||
Contract liabilities (see Note 11) | 31,488,000 | 32,603,000 | ||
Revolving loan | 52,906,000 | 54,000,000 | ||
Other current liabilities | 4,970,000 | 4,471,000 | ||
Current portion of term loan | 3,685,000 | 3,068,000 | ||
Total current liabilities | 216,295,000 | 197,268,000 | ||
Term loan, less current portion | 26,032,000 | 13,913,000 | ||
Long-term contract liabilities (see Note 11) | 52,535,000 | 48,183,000 | ||
Long-term deferred income taxes | 211,000 | 226,000 | ||
Other liabilities | 6,776,000 | 5,957,000 | ||
Total liabilities | 301,849,000 | 265,547,000 | ||
Commitments and contingencies | ||||
Shareholders' equity: | ||||
Preferred stock | 0 | 0 | ||
Common stock; par value $.01 per share, 50,000,000 shares authorized; 18,799,477 and 18,893,102 shares issued and outstanding at September 30, 2018 and March 31, 2018, respectively | 188,000 | 189,000 | ||
Additional paid-in capital | 211,593,000 | 213,609,000 | ||
Retained earnings | 77,274,000 | 78,510,000 | ||
Accumulated other comprehensive loss | (6,891,000) | (5,428,000) | ||
Total shareholders' equity | 282,164,000 | 286,880,000 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 584,013,000 | 552,427,000 | ||
Series A Junior Participating Preferred Stock [Member] | ||||
Shareholders' equity: | ||||
Preferred stock | $ 0 | $ 0 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2018 | Mar. 31, 2018 |
Shareholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, issued (in shares) | 18,799,477 | 18,893,102 |
Common stock, outstanding (in shares) | 18,799,477 | 18,893,102 |
Series A Junior Participating Preferred Stock [Member] | ||
Shareholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 20,000 | 20,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Consolidated Statements of Operations (Unaudited) [Abstract] | |||||
Net sales | $ 127,939,000 | $ 110,261,000 | $ 94,695,000 | $ 219,607,000 | $ 204,956,000 |
Cost of goods sold | 102,228,000 | 84,234,000 | 68,843,000 | 177,544,000 | 153,077,000 |
Gross profit | 25,711,000 | 26,027,000 | 25,852,000 | 42,063,000 | 51,879,000 |
Operating expenses: | |||||
General and administrative | 8,997,000 | 8,615,000 | 5,888,000 | 21,088,000 | 14,503,000 |
Sales and marketing | 4,537,000 | 3,457,000 | 3,394,000 | 8,929,000 | 6,851,000 |
Research and development | 1,784,000 | 1,240,000 | 1,002,000 | 3,520,000 | 2,242,000 |
Total operating expenses | 15,318,000 | 13,312,000 | 10,284,000 | 33,537,000 | 23,596,000 |
Operating income | 10,393,000 | 12,715,000 | 15,568,000 | 8,526,000 | 28,283,000 |
Interest expense, net | 5,699,000 | 3,522,000 | 3,314,000 | 10,774,000 | 6,836,000 |
Income before income tax expense (benefit) | 4,694,000 | 9,193,000 | 12,254,000 | (2,248,000) | 21,447,000 |
Income tax expense (benefit) | 1,181,000 | 3,598,000 | 4,434,000 | (266,000) | 8,032,000 |
Net income (loss) | $ 3,513,000 | $ 5,595,000 | $ 7,820,000 | $ (1,982,000) | $ 13,415,000 |
Basic net income (loss) per share (in dollars per share) | $ 0.19 | $ 0.30 | $ 0.42 | $ (0.10) | $ 0.72 |
Diluted net income (loss) per share (in dollars per share) | $ 0.18 | $ 0.29 | $ 0.40 | $ (0.10) | $ 0.69 |
Weighted average number of shares outstanding: | |||||
Basic (in shares) | 18,878,674 | 18,718,709 | 18,887,214 | 18,687,179 | |
Diluted (in shares) | 19,319,465 | 19,356,809 | 18,887,214 | 19,371,144 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) [Abstract] | ||||
Net income (loss) | $ 3,513,000 | $ 5,595,000 | $ (1,982,000) | $ 13,415,000 |
Other comprehensive (loss) income, net of tax: | ||||
Unrealized gain on short-term investments (net of tax of $0, $40,000, $0 and $78,000) | 0 | 60,000 | 0 | 116,000 |
Foreign currency translation (loss) gain | (2,000) | 608,000 | (717,000) | 837,000 |
Total other comprehensive (loss) gain, net of tax | (2,000) | 668,000 | (717,000) | 953,000 |
Comprehensive income (loss) | $ 3,511,000 | $ 6,263,000 | $ (2,699,000) | $ 14,368,000 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (Parenthetical) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Other comprehensive (loss) income, net of tax: | ||||
Unrealized gain on short-term investments, tax | $ 0 | $ 40,000 | $ 0 | $ 78,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||||||
Net (loss) income | $ 3,513,000 | $ 5,595,000 | $ 7,820,000 | $ (1,982,000) | $ 13,415,000 | |
Adjustments to reconcile net (loss) income to net cash used in operating activities: | ||||||
Depreciation | 2,834,000 | 1,828,000 | ||||
Amortization of intangible assets | 192,000 | 180,000 | 384,000 | 325,000 | ||
Amortization and write-off of debt issuance costs | 647,000 | 426,000 | ||||
Amortization of interest on contract liabilities, net | 513,000 | 269,000 | ||||
Gain due to change in fair value of the warrant liability | 0 | (2,313,000) | ||||
Gain on short-term investments | (111,000) | (180,000) | 0 | |||
Net provision for inventory reserves | 5,285,000 | 3,258,000 | ||||
Net provision for customer payment discrepancies | 274,000 | 604,000 | ||||
Net provision for (recovery of) doubtful accounts | 206,000 | (2,000) | ||||
Deferred income taxes | 209,000 | (667,000) | (207,000) | |||
Share-based compensation expense | 2,121,000 | 1,744,000 | ||||
Loss on disposal of plant and equipment | 11,000 | 7,000 | ||||
Changes in operating assets and liabilities, net of effects of acquisitions: | ||||||
Accounts receivable | 9,333,000 | 6,598,000 | 2,819,000 | |||
Inventory | (18,494,000) | (32,380,000) | (28,552,000) | |||
Inventory unreturned | (1,592,000) | (123,000) | ||||
Income tax receivable | (3,595,000) | (3,985,000) | ||||
Prepaid expenses and other current assets | (658,000) | (2,645,000) | ||||
Other assets | (1,000) | (79,000) | (20,000) | |||
Accounts payable and accrued liabilities | 17,840,000 | (3,764,000) | ||||
Customer finished goods returns accrual | 2,156,000 | (4,246,000) | ||||
Contract assets, net | 1,726,000 | (8,773,000) | 6,882,000 | |||
Contract liabilities, net | 3,172,000 | 2,724,000 | 5,837,000 | |||
Other liabilities | 1,904,000 | 295,000 | ||||
Net cash used in operating activities | (644,000) | (6,409,000) | (8,148,000) | |||
Cash flows from investing activities: | ||||||
Purchase of plant and equipment | (5,259,000) | (2,460,000) | ||||
Purchase of business, net of cash acquired | 0 | (4,974,000) | ||||
Change in short-term investments | (222,000) | (226,000) | ||||
Net cash used in investing activities | (5,481,000) | (7,660,000) | ||||
Cash flows from financing activities: | ||||||
Borrowings under revolving loan | 35,200,000 | 52,000,000 | ||||
Repayments of revolving loan | (36,294,000) | (27,000,000) | ||||
Borrowings under term loan | 13,594,000 | 0 | ||||
Repayments of term loan | (782,000) | (1,563,000) | ||||
Payments for debt issuance costs | (1,757,000) | (443,000) | ||||
Payments on capital lease obligations | (711,000) | (392,000) | ||||
Exercise of stock options | 244,000 | 295,000 | ||||
Cash used to net share settle equity awards | (320,000) | (594,000) | ||||
Settlement of warrant | 0 | 4,000,000 | ||||
Repurchase of common stock, including fees | (4,062,000) | (4,476,000) | ||||
Net cash provided by financing activities | 5,112,000 | 21,827,000 | ||||
Effect of exchange rate changes on cash and cash equivalents | (96,000) | 42,000 | ||||
Net (decrease) increase in cash and cash equivalents | (6,874,000) | 6,061,000 | ||||
Cash and cash equivalents - Beginning of period | $ 9,029,000 | 13,049,000 | 9,029,000 | $ 9,029,000 | ||
Cash and cash equivalents - End of period | $ 6,175,000 | $ 15,090,000 | 6,175,000 | 15,090,000 | $ 13,049,000 | |
Cash paid during the period for: | ||||||
Interest, net | 9,534,000 | 6,121,000 | ||||
Income taxes, net of refunds | 3,263,000 | 11,672,000 | ||||
Non-cash investing and financing activities: | ||||||
Plant and equipment acquired under capital lease | $ 0 | $ 498,000 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Sep. 30, 2018 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended September 30, 2018 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2019. This report should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the fiscal year ended March 31, 2018, which are included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on June 14, 2018. The accompanying consolidated financial statements have been prepared on a consistent basis with, and there have been no material changes to, except as noted below, the accounting policies described in Note 2, Summary of Significant Accounting Policies, to the consolidated financial statements that are presented in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2018. |
Company Background and Organiza
Company Background and Organization | 6 Months Ended |
Sep. 30, 2018 | |
Company Background and Organization [Abstract] | |
Company Background and Organization | 1. Company Background and Organization Motorcar Parts of America, Inc. and its subsidiaries (the “Company”, or “MPA”) is a leading manufacturer, remanufacturer, and distributor of aftermarket automotive and light truck applications. The Company also, to a lesser extent, is a manufacturer, remanufacturer, and distributor of heavy duty truck and industrial and agricultural application parts. These replacement parts are sold for use on vehicles after initial vehicle purchase. These automotive parts are sold to automotive retail chain stores and warehouse distributors throughout North America and to major automobile manufacturers for both their aftermarket programs and warranty replacement programs (“OES”). The Company’s products include systems for alternators, starters, belt-start generators (stop start and hybrid technology), and electric power trains for electric vehicles The Company obtains used automotive parts, commonly known as Used Cores, primarily from its customers under the Company’s core exchange program. It also purchases Used Cores from vendors (core brokers). The customers grant credit to the consumer when the used part is returned to them, and the Company in turn provides a credit to the customers upon return to the Company. These Used Cores are an essential raw material needed for the remanufacturing operations. The Company has remanufacturing, warehousing and shipping/receiving operations for automotive parts in North America and Asia. In addition, the Company utilizes various third party warehouse distribution centers in North America. Pursuant to the guidance provided under the Financial Accounting Standards Board (“FASB”) ASC for segment reporting, the Company has identified its chief executive officer as chief operating decision maker (“CODM”), has reviewed the documents used by the CODM, and understands how such documents are used by the CODM to make financial and operating decisions. has determined through this review process that it has one reportable segment for purposes of recording and reporting its financial results. |
Impact on Previously Issued Fin
Impact on Previously Issued Financial Statements for the Correction of an Error | 6 Months Ended |
Sep. 30, 2018 | |
Impact on Previously Issued Financial Statements for the Correction of an Error [Abstract] | |
Impact on Previously Issued Financial Statements for the Correction of an Error | 2. Impact on Previously Issued Financial Statements for the Correction of an Error Revision of Prior Period Financial Statements During the second quarter ended September 30, 2018, the Company identified and corrected immaterial errors that affected previously issued consolidated financial statements. These errors primarily related to historical misapplication of GAAP related to the timing of recognizing certain expenses incurred in connection with allowances paid for core inventory purchase obligations at the start of a new business relationship. The Company previously recorded the difference between the acquisition price of Remanufactured Cores purchased from customers generally in connection with new business, and the related inventory cost as a sales allowance reducing revenue when the purchases were made. These sales allowances are now recorded as an asset and recognized as a reduction of revenue through the later of the date at which related revenue is recognized or the date at which the sales incentive is offered (as further described under the caption “Contract Assets” in Note 4). The Company also corrected errors resulting from differences between the original cost estimate and the actual cost of the Remanufactured Cores held at customers’ locations. The Company also corrected other immaterial errors, which primarily relate to bonus accruals and core inventory, and recorded certain adjustments to income taxes, including reflecting the tax effect of the aforementioned adjustments. In addition, the Company reclassified certain customer contract related prepayments from prepaid expenses and other current assets and other assets to contract assets related to the adoption of ASC 606 on April 1, 2018 (see Note 4). As of June 30, 2018, the cumulative error for all periods previously reported was an understatement of net income of $2,938,000. The Company assessed the materiality, both quantitatively and qualitatively, in accordance with the SEC’s Staff Accounting Bulletin (“SAB”) No. 99 and SAB No. 108, and concluded that these errors were not material to any of its previously issued financial statements. However, the Company determined that the cumulative correction of these errors would have had a material effect on the financial results for the three and six months ended September 30, 2018. Accordingly, in order to correctly present the errors noted above, previously issued financial statements have been revised and are presented as “As Revised” in the tables presented in the following footnotes. In addition, upon the adoption of ASC 606 on April 1, 2018, the Company adjusted its revised consolidated financial statements and related footnotes for the years ended March 31, 2018, and 2017 and applicable interim periods within the fiscal year ended March 31, 2018. These consolidated financial statements and tables are presented as “As Adjusted”. The effect of the above corrections on the consolidated statement of operations for the fiscal year ended March 31, 2018 is as follows: Year Ended March 31, 2018 Revised Consolidated Statement of Operations Amounts: As Previously Reported Adjustment As Revised Net sales $ 428,072,000 $ (1,081,000 ) $ 426,991,000 Cost of goods sold 322,199,000 (1,750,000 ) 320,449,000 Gross profit 105,873,000 669,000 106,542,000 Operating expenses: General and administrative 35,527,000 (50,000 ) 35,477,000 Sales and marketing 15,030,000 - 15,030,000 Research and development 5,692,000 - 5,692,000 Total operating expenses 56,249,000 (50,000 ) 56,199,000 Operating income 49,624,000 719,000 50,343,000 Interest expense, net 15,445,000 - 15,445,000 Income before income tax expense (benefit) 34,179,000 719,000 34,898,000 Income tax expense (benefit) 17,863,000 (1,791,000 ) 16,072,000 Net income $ 16,316,000 $ 2,510,000 $ 18,826,000 Basic net income per share $ 0.87 $ 0.13 $ 1.00 Diluted net income per share $ 0.84 $ 0.13 $ 0.96 The effect of the above corrections on the consolidated statement of operations for the fiscal year ended March 31, 2017 is as follows: Year Ended March 31, 2017 Revised Consolidated Statement of Operations Amounts: As Previously Reported Adjustment As Revised Net sales $ 421,253,000 $ 1,629,000 $ 422,882,000 Cost of goods sold 306,207,000 (281,000 ) 305,926,000 Gross profit 115,046,000 1,910,000 116,956,000 Operating expenses: General and administrative 31,124,000 1,000 31,125,000 Sales and marketing 12,126,000 - 12,126,000 Research and development 3,824,000 - 3,824,000 Total operating expenses 47,074,000 1,000 47,075,000 Operating income 67,972,000 1,909,000 69,881,000 Interest expense, net 13,094,000 - 13,094,000 Income before income tax expense 54,878,000 1,909,000 56,787,000 Income tax expense 17,305,000 706,000 18,011,000 Net income $ 37,573,000 $ 1,203,000 $ 38,776,000 Basic net income per share $ 2.02 $ 0.06 $ 2.08 Diluted net income per share $ 1.93 $ 0.06 $ 2.00 The effect of the above corrections on the consolidated statement of operations for the fiscal year ended March 31, 2016 is as follows: Year Ended March 31, 2016 Revised Consolidated Statement of Operations Amounts: As Previously Reported Adjustment As Revised Net sales $ 368,970,000 $ 700,000 $ 369,670,000 Cost of goods sold 268,046,000 402,000 268,448,000 Gross profit 100,924,000 298,000 101,222,000 Operating expenses: General and administrative 49,665,000 298,000 49,963,000 Sales and marketing 9,965,000 - 9,965,000 Research and development 3,008,000 - 3,008,000 Total operating expenses 62,638,000 298,000 62,936,000 Operating income 38,286,000 - 38,286,000 Interest expense, net 16,244,000 - 16,244,000 Income before income tax expense 22,042,000 - 22,042,000 Income tax expense 11,479,000 294,000 11,773,000 Net income $ 10,563,000 $ (294,000 ) $ 10,269,000 Basic net income per share $ 0.58 $ (0.02 ) $ 0.56 Diluted net income per share $ 0.55 $ (0.02 ) $ 0.54 The effect of the above corrections on the consolidated statement of comprehensive income for the fiscal year ended March 31, 2018 is as follows: Year Ended March 31, 2018 Revised Consolidated Statement of Comprehensive Income Amounts: As Previously Reported Adjustment As Revised Net income $ 16,316,000 $ 2,510,000 $ 18,826,000 Comprehensive income $ 18,329,000 $ 2,510,000 $ 20,839,000 The effect of the above corrections on the consolidated statement of comprehensive income for the fiscal year ended March 31, 2017 is as follows: Year Ended March 31, 2017 Revised Consolidated Statement of Comprehensive Income Amounts: As Previously Reported Adjustment As Revised Net income $ 37,573,000 $ 1,203,000 $ 38,776,000 Comprehensive income $ 34,984,000 $ 1,203,000 $ 36,187,000 The effect of the above corrections on the consolidated statement of comprehensive income for the fiscal year ended March 31, 2016 is as follows: Year Ended March 31, 2016 Revised Consolidated Statement of Comprehensive Income Amounts: As Previously Reported Adjustment As Revised Net income $ 10,563,000 $ (294,000 ) $ 10,269,000 Comprehensive income $ 8,229,000 $ (294,000 ) $ 7,935,000 The effect of the above corrections on the consolidated balance sheet at March 31, 2018 is as follows: March 31, 2018 Revised Consolidated Balance Sheet Amounts: As Previously Reported Adjustment As Revised ASSETS Income tax receivable $ 7,796,000 $ 176,000 $ 7,972,000 Prepaid expenses and other current assets 11,491,000 3,613,000 15,104,000 Long-term core inventory — net 301,656,000 (3,362,000 ) 298,294,000 Long-term deferred income taxes 10,556,000 (3,619,000 ) 6,937,000 Other assets 7,392,000 14,603,000 21,995,000 TOTAL ASSETS $ 494,497,000 $ 11,411,000 $ 505,908,000 LIABILITIES AND SHAREHOLDERS’ EQUITY Accrued liabilities $ 11,799,000 $ 249,000 $ 12,048,000 TOTAL LIABILITIES $ 219,521,000 $ 249,000 $ 219,770,000 Retained earnings $ 66,606,000 $ 11,162,000 $ 77,768,000 TOTAL SHAREHOLDERS’ EQUITY $ 274,976,000 $ 11,162,000 $ 286,138,000 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 494,497,000 $ 11,411,000 $ 505,908,000 The effect of the above corrections on the consolidated balance sheet at March 31, 2017 is as follows: March 31, 2017 Revised Consolidated Balance Sheet Amounts: As Previously Reported Adjustment As Revised ASSETS Prepaid expenses and other current assets $ 9,848,000 $ 3,240,000 $ 13,088,000 Long-term core inventory — net 262,922,000 (4,501,000 ) 258,421,000 Long-term deferred income taxes 13,546,000 (5,179,000 ) 8,367,000 Other assets 6,990,000 15,391,000 22,381,000 TOTAL ASSETS $ 436,139,000 $ 8,951,000 $ 445,090,000 LIABILITIES AND SHAREHOLDERS’ EQUITY Accrued liabilities $ 10,077,000 $ 299,000 $ 10,376,000 TOTAL LIABILITIES $ 187,458,000 $ 299,000 $ 187,757,000 Retained earnings $ 50,290,000 $ 8,652,000 $ 58,942,000 TOTAL SHAREHOLDERS’ EQUITY $ 248,681,000 $ 8,652,000 $ 257,333,000 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 436,139,000 $ 8,951,000 $ 445,090,000 The effect of the above corrections on the consolidated statement of shareholders’ equity for the fiscal year ended March 31, 2018 is as follows: Year Ended March 31, 2018 Revised Consolidated Statement of Shareholders’ Equity Amounts: As Previously Reported Adjustment As Revised Retained earnings at March 31, 2017 $ 50,290,000 $ 8,652,000 $ 58,942,000 Net income 16,316,000 2,510,000 18,826,000 Retained earnings at March 31, 2018 $ 66,606,000 $ 11,162,000 $ 77,768,000 The effect of the above corrections on the consolidated statement of shareholders’ equity for the fiscal year ended March 31, 2017 is as follows: Year Ended March 31, 2017 Revised Consolidated Statement of Shareholders’ Equity Amounts: As Previously Reported Adjustment As Revised Retained earnings at March 31, 2016 $ 11,825,000 $ 7,449,000 $ 19,274,000 Cumulative effect adjustment 892,000 - 892,000 Net income 37,573,000 1,203,000 38,776,000 Retained earnings at March 31, 2017 $ 50,290,000 $ 8,652,000 $ 58,942,000 The effect of the above corrections on the consolidated statement of shareholders’ equity for the fiscal year ended March 31, 2016 is as follows: Year Ended March 31, 2016 Revised Consolidated Statement of Shareholders’ Equity Amounts: As Previously Reported Adjustment As Revised Retained earnings at March 31, 2015 $ 1,262,000 $ - $ 1,262,000 Cumulative effect adjustment of error corrections - 7,743,000 7,743,000 Net income (loss) 10,563,000 (294,000 ) 10,269,000 Retained earnings at March 31, 2016 $ 11,825,000 $ 7,449,000 $ 19,274,000 The effect of the above corrections on the consolidated statement of cash flows for the fiscal year ended March 31, 2018 is as follows: Year Ended March 31, 2018 Revised Consolidated Statement of Cash Flow from Operating Activities Amounts: As Previously Reported Adjustment As Revised Net income $ 16,316,000 $ 2,510,000 $ 18,826,000 Deferred income taxes 3,055,000 (1,560,000 ) 1,495,000 Income tax receivable (6,081,000 ) (231,000 ) (6,312,000 ) Prepaid expenses and other current assets (2,507,000 ) (318,000 ) (2,825,000 ) Other assets (384,000 ) 788,000 404,000 Accounts payable and accrued liabilities (11,621,000 ) (50,000 ) (11,671,000 ) Long-term core inventory (45,839,000 ) (1,139,000 ) (46,978,000 ) Net cash used in operating activities $ (13,944,000 ) $ - $ (13,944,000 ) The effect of the above corrections on the consolidated statement of cash flows for the fiscal year ended March 31, 2017 is as follows: Year Ended March 31, 2017 Revised Consolidated Statement of Cash Flow from Operating Activities Amounts: As Previously Reported Adjustment As Revised Net income $ 37,573,000 $ 1,203,000 $ 38,776,000 Deferred income taxes 6,510,000 355,000 6,865,000 Prepaid expenses and other current assets (4,333,000 ) (549,000 ) (4,882,000 ) Other assets (3,339,000 ) (1,025,000 ) (4,364,000 ) Accounts payable and accrued liabilities 12,446,000 1,000 12,447,000 Long-term core inventory (24,964,000 ) (281,000 ) (25,245,000 ) Other liabilities (1,344,000 ) 296,000 (1,048,000 ) Net cash used in operating activities $ (5,269,000 ) $ - $ (5,269,000 ) The effect of the above corrections on the consolidated statement of cash flows for the fiscal year ended March 31, 2016 is as follows Year Ended March 31, 2016 Revised Consolidated Statement of Cash Flow from Operating Activities Amounts: As Previously Reported Adjustment As Revised Net income $ 10,563,000 $ (294,000 ) $ 10,269,000 Deferred income taxes (3,781,000 ) 590,000 (3,191,000 ) Prepaid expenses and other current assets 2,765,000 618,000 3,383,000 Other assets (477,000 ) (1,318,000 ) (1,795,000 ) Accounts payable and accrued liabilities 6,620,000 298,000 6,918,000 Long-term core inventory (53,408,000 ) 402,000 (53,006,000 ) Other liabilities 1,673,000 (296,000 ) 1,377,000 Net cash used in operating activities $ 15,334,000 $ - $ 15,334,000 The effect of the above corrections on the consolidated statement of operations for the three months ended June 30, 2017 is as follows: Three Months Ended June 30, 2017 Revised Consolidated Statement of Operations Amounts: As Previously Reported Adjustment As Revised Net sales $ 95,063,000 $ (824,000 ) $ 94,239,000 Cost of goods sold 69,224,000 - 69,224,000 Gross profit 25,839,000 (824,000 ) 25,015,000 Operating expenses: General and administrative 6,187,000 (299,000 ) 5,888,000 Sales and marketing 3,394,000 - 3,394,000 Research and development 1,002,000 - 1,002,000 Total operating expenses 10,583,000 (299,000 ) 10,284,000 Operating income 15,256,000 (525,000 ) 14,731,000 Interest expense, net 3,314,000 - 3,314,000 Income (loss) before income tax expense (benefit) 11,942,000 (525,000 ) 11,417,000 Income tax expense (benefit) 4,316,000 (194,000 ) 4,122,000 Net income (loss) $ 7,626,000 $ (331,000 ) $ 7,295,000 Basic net income (loss) per share $ 0.41 $ (0.02 ) $ 0.39 Diluted net income (loss) per share $ 0.39 $ (0.02 ) $ 0.38 The effect of the above corrections on the consolidated statement of operations for the three and six months ended September 30, 2017 is as follows: Three Months Ended September 30, 2017 Six Months Ended September 30, 2017 Revised Consolidated Statement of Operations Amounts: As Previously Reported Adjustment As Revised As Previously Reported Adjustment As Revised Net sales $ 111,774,000 $ (921,000 ) $ 110,853,000 $ 206,837,000 $ (1,745,000 ) $ 205,092,000 Cost of goods sold 84,612,000 - 84,612,000 153,836,000 - 153,836,000 Gross profit 27,162,000 (921,000 ) 26,241,000 53,001,000 (1,745,000 ) 51,256,000 Operating expenses: General and administrative 8,615,000 - 8,615,000 14,802,000 (299,000 ) 14,503,000 Sales and marketing 3,457,000 - 3,457,000 6,851,000 - 6,851,000 Research and development 1,240,000 - 1,240,000 2,242,000 - 2,242,000 Total operating expenses 13,312,000 - 13,312,000 23,895,000 (299,000 ) 23,596,000 Operating income (loss) 13,850,000 (921,000 ) 12,929,000 29,106,000 (1,446,000 ) 27,660,000 Interest expense, net 3,522,000 - 3,522,000 6,836,000 - 6,836,000 Income (loss) before income tax expense (benefit) 10,328,000 (921,000 ) 9,407,000 22,270,000 (1,446,000 ) 20,824,000 Income tax expense (benefit) 4,027,000 (343,000 ) 3,684,000 8,343,000 (537,000 ) 7,806,000 Net income (loss) $ 6,301,000 $ (578,000 ) $ 5,723,000 $ 13,927,000 $ (909,000 ) $ 13,018,000 Basic net income (loss) per share $ 0.34 $ (0.03 ) $ 0.31 $ 0.75 $ (0.05 ) $ 0.70 Diluted net income (loss) per share $ 0.33 $ (0.03 ) $ 0.30 $ 0.72 $ (0.05 ) $ 0.67 The effect of the above corrections on the consolidated statement of operations for the three and nine months ended December 31, 2017 is as follows: Three Months Ended December 31, 2017 Nine Months Ended December 31, 2017 Revised Consolidated Statement of Operations Amounts: As Previously Reported Adjustment As Revised As Previously Reported Adjustment As Revised Net sales $ 100,127,000 $ 1,586,000 $ 101,713,000 $ 306,964,000 $ (159,000 ) $ 306,805,000 Cost of goods sold 77,583,000 (1,750,000 ) 75,833,000 231,419,000 (1,750,000 ) 229,669,000 Gross profit 22,544,000 3,336,000 25,880,000 75,545,000 1,591,000 77,136,000 Operating expenses: General and administrative 11,915,000 - 11,915,000 26,717,000 (299,000 ) 26,418,000 Sales and marketing 4,048,000 - 4,048,000 10,899,000 - 10,899,000 Research and development 1,678,000 - 1,678,000 3,920,000 - 3,920,000 Total operating expenses 17,641,000 - 17,641,000 41,536,000 (299,000 ) 41,237,000 Operating income 4,903,000 3,336,000 8,239,000 34,009,000 1,890,000 35,899,000 Interest expense, net 3,953,000 - 3,953,000 10,789,000 - 10,789,000 Income before income tax expense (benefit) 950,000 3,336,000 4,286,000 23,220,000 1,890,000 25,110,000 Income tax expense (benefit) 7,756,000 (820,000 ) 6,936,000 16,099,000 (1,357,000 ) 14,742,000 Net (loss) income $ (6,806,000 ) $ 4,156,000 $ (2,650,000 ) $ 7,121,000 $ 3,247,000 $ 10,368,000 Basic net (loss) income per share $ (0.36 ) $ 0.22 $ (0.14 ) $ 0.38 $ 0.17 $ 0.55 Diluted net (loss) income per share $ (0.36 ) $ 0.22 $ (0.14 ) $ 0.37 $ 0.17 $ 0.53 The effect of the above corrections on the consolidated statement of comprehensive income (loss) for the three months ended June 30, 2017 is as follows Three Months Ended June 30, 2017 Revised Consolidated Statement of Comprehensive Income (Loss) Amounts: As Previously Reported Adjustment As Revised Net income (loss) $ 7,626,000 $ (331,000 ) $ 7,295,000 Comprehensive income (loss) $ 7,911,000 $ (331,000 ) $ 7,580,000 The effect of the above corrections on the consolidated statement of comprehensive income (loss) for the three and six months ended September 30, 2017 is as follows: Three Months Ended September 30, 2017 Six Months Ended September 30, 2017 Revised Consolidated Statement of Comprehensive Income (Loss) Amounts: As Previously Reported Adjustment As Revised As Previously Reported Adjustment As Revised Net income (loss) $ 6,301,000 $ (578,000 ) $ 5,723,000 $ 13,927,000 $ (909,000 ) $ 13,018,000 Comprehensive income (loss) $ 6,969,000 $ (578,000 ) $ 6,391,000 $ 14,880,000 $ (909,000 ) $ 13,971,000 The effect of the above corrections on the consolidated statement of comprehensive (loss) income for the three and nine months ended December 31, 2017 is as follows: Three Months Ended December 31, 2017 Nine Months Ended December 31, 2017 Revised Consolidated Statement of Comprehensive (Loss) Income Amounts: As Previously Reported Adjustment As Revised As Previously Reported Adjustment As Revised Net (loss) income $ (6,806,000 ) $ 4,156,000 $ (2,650,000 ) $ 7,121,000 $ 3,247,000 $ 10,368,000 Comprehensive (loss) income $ (6,476,000 ) $ 4,156,000 $ (2,320,000 ) $ 8,404,000 $ 3,247,000 $ 11,651,000 The effect of the above corrections on the consolidated statement of cash flows for the three months ended June 30, 2017 Three Months Ended June 30, 2017 Revised Consolidated Statement of Cash Flow from Operating Activities Amounts: As Previously Reported Adjustment As Revised Net income (loss) $ 7,626,000 $ (331,000 ) $ 7,295,000 Prepaid expenses and other current assets 421,000 (55,000 ) 366,000 Other assets 608,000 824,000 1,432,000 Accounts payable and accrued liabilities (5,254,000 ) (299,000 ) (5,553,000 ) Other liabilities 2,324,000 (139,000 ) 2,185,000 Net cash used in operating activities $ (644,000 ) $ - $ (644,000 ) The effect of the above corrections on the consolidated statement of cash flows for the six months ended September 30, 2017 is as follows: Six Months Ended September 30, 2017 Revised Consolidated Statement of Cash Flow from Operating Activities Amounts: As Previously Reported Adjustment As Revised Net income (loss) $ 13,927,000 $ (909,000 ) $ 13,018,000 Prepaid expenses and other current assets (6,093,000 ) (537,000 ) (6,630,000 ) Other assets 1,198,000 1,745,000 2,943,000 Accounts payable and accrued liabilities (3,465,000 ) (299,000 ) (3,764,000 ) Net cash used in operating activities $ (8,148,000 ) $ - $ (8,148,000 ) The effect of the above corrections on the consolidated statement of cash flows for the nine months ended December 31, Nine Months Ended December 31, 2017 Revised Consolidated Statement of Cash Flow from Operating Activities Amounts: As Previously Reported Adjustment As Revised Net income $ 7,121,000 $ 3,247,000 $ 10,368,000 Deferred income taxes (909,000 ) (1,805,000 ) (2,714,000 ) Prepaid expenses and other current assets (2,093,000 ) 448,000 (1,645,000 ) Other assets 289,000 (452,000 ) (163,000 ) Accounts payable and accrued liabilities (15,647,000 ) (299,000 ) (15,946,000 ) Long-term core inventory (37,222,000 ) (1,139,000 ) (38,361,000 ) Net cash used in operating activities $ (9,803,000 ) $ - $ (9,803,000 ) The effect of the above corrections on the consolidated statement of operations for the three months ended June 30, 2018 is as follows: Three Months Ended June 30, 2018 Revised Consolidated Statement of Operations Amounts: As Previously Reported Adjustment As Revised Net sales $ 92,565,000 $ (897,000 ) $ 91,668,000 Cost of goods sold 75,314,000 2,000 75,316,000 Gross profit 17,251,000 (899,000 ) 16,352,000 Operating expenses: General and administrative 12,340,000 (249,000 ) 12,091,000 Sales and marketing 4,392,000 - 4,392,000 Research and development 1,736,000 - 1,736,000 Total operating expenses 18,468,000 (249,000 ) 18,219,000 Operating loss (1,217,000 ) (650,000 ) (1,867,000 ) Interest expense, net 5,075,000 - 5,075,000 Loss before income tax benefit (6,292,000 ) (650,000 ) (6,942,000 ) Income tax benefit (1,278,000 ) (169,000 ) (1,447,000 ) Net loss $ (5,014,000 ) $ (481,000 ) $ (5,495,000 ) Basic net loss per share $ (0.27 ) $ (0.03 ) $ (0.29 ) Diluted net loss per share $ (0.27 ) $ (0.03 ) $ (0.29 ) The effect of the above corrections on the consolidated statement of comprehensive loss for the three months ended June 30, 2018 is as follows: Three Months Ended June 30, 2018 Revised Consolidated Statement of Comprehensive Loss Amounts: As Previously Reported Adjustment As Revised Net loss $ (5,014,000 ) $ (481,000 ) $ (5,495,000 ) Comprehensive loss $ (5,729,000 ) $ (481,000 ) $ (6,210,000 ) The effect of the above corrections on the consolidated balance sheet at June 30, 2018 is as follows: June 30, 2018 Restated Consolidated Balance Sheet Amounts: As Previously Reported Adjustment As Revised ASSETS Contract assets $ 16,542,000 $ 7,774,000 $ 24,316,000 Income tax receivable 9,416,000 345,000 9,761,000 Prepaid expenses and other current assets 13,148,000 (2,893,000 ) 10,255,000 Long-term deferred income taxes 10,343,000 (3,619,000 ) 6,724,000 Long-term contract assets 207,792,000 14,670,000 222,462,000 Other assets 6,406,000 (5,596,000 ) 810,000 TOTAL ASSETS $ 549,253,000 $ 10,681,000 $ 559,934,000 LIABILITIES AND SHAREHOLDERS’ EQUITY Retained earnings $ 63,080,000 $ 10,681,000 $ 73,761,000 TOTAL SHAREHOLDERS’ EQUITY $ 270,738,000 $ 10,681,000 $ 281,419,000 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 549,253,000 $ 10,681,000 $ 559,934,000 The effect of the above corrections on the consolidated statement of cash flows for the three months ended June 30, 2018 is as follows: Three Months Ended June 30, 2018 Revised Consolidated Statement of Cash Flow from Operating Activities Amounts: As Previously Reported Adjustment As Revised Net loss $ (5,014,000 ) $ (481,000 ) $ (5,495,000 ) Income tax receivable (1,622,000 ) (169,000 ) (1,791,000 ) Prepaid expenses and other current assets (697,000 ) 10,000 (687,000 ) Other assets 941,000 (992,000 ) (51,000 ) Accounts payable and accrued liabilities 11,117,000 (249,000 ) 10,868,000 Contract assets, net (2,722,000 ) 1,881,000 (841,000 ) Net cash used in operating activities $ (924,000 ) $ - $ (924,000 ) |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Sep. 30, 2018 | |
New Accounting Pronouncements [Abstract] | |
New Accounting Pronouncements | 3. New Accounting Pronouncements New Accounting Pronouncements Recently Adopted Revenue Recognition Effective April 1, 2018, the Company adopted ASC 606 using the full retrospective transition method. Under this method, the Company adjusted its revised consolidated financial statements (see Note 2) for the years ended March 31, 2017 and 2018, and applicable interim periods within the fiscal year ended March 31, 2018, as if ASC 606 had been effective for those periods. Periods prior to the fiscal year ended March 31, 2017 were not adjusted and continue to be reported in accordance with the Company’s historic accounting under Topic 605, Revenue Recognition Financial Instruments In January 2016, the FASB issued guidance that amends the classification and measurement of financial instruments. Changes to the current guidance primarily affect the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, the update clarifies guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. This guidance was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company applied the amendments in the new guidance by means of a cumulative-effect adjustment of $746,000, net of tax, to the opening balance of retained earnings on April 1, 2018. Short-term investments are recorded at fair value with $111,000 and $180,000 of unrealized gain now recorded as a component of general and administrative expense for the three and six months ended September 30, 2018, respectively. Modifications to Share-Based Payment Awards In May 2017, the FASB issued guidance to provide clarity and reduce (i) the diversity in practice and (ii) the cost and complexity when applying the accounting guidance for equity-based compensation to a change to the terms or conditions of a share-based payment award. This update provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. This guidance was effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017 with early adoption permitted. This guidance should be applied prospectively to an award modified on or after that adoption date. The adoption of this guidance on April 1, 2018 did not have any impact on the Company’s consolidated financial statements. Business Combinations In January 2017, the FASB issued guidance which clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The new guidance was effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. . The adoption of this guidance on April 1, 2018 did not have any impact on the Company’s consolidated financial statements. New Accounting Pronouncements Not Yet Adopted Leases In February 2016, the FASB issued new guidance that requires balance sheet recognition of a right-of-use asset and lease liability by lessees for operating leases. There have been further amendments, including practical expedients, issued in January 2018 and July 2018. Goodwill Impairment In January 2017, the FASB issued guidance which simplifies the test for goodwill impairment. This standard eliminates Step 2 from the goodwill impairment test, instead requiring an entity to recognize a goodwill impairment charge for the amount by which the goodwill carrying amount exceeds the reporting unit’s fair value. This guidance is effective for interim and annual goodwill impairment tests in fiscal years beginning after December 15, 2019 with early adoption permitted. This guidance must be applied on a prospective basis. Derivatives and Hedging In August 2017, the FASB issued guidance to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. The amendments in this update also make certain targeted improvements to simplify the application of the hedge accounting guidance in current GAAP. The new guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years; the guidance allows for early adoption in any interim period after issuance of the update. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements. Reporting Comprehensive Income In February 2018, the FASB issued guidance that permits, but does not require, companies to reclassify the stranded tax effects of the Tax Reform Act on items within accumulated other comprehensive income to retained earnings. This guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements. Fair Value Measurements In August 2018, the FASB issued guidance , which changes the disclosure requirements for fair value measurements by removing, adding and modifying certain disclosures. The standard is effective for financial statements issued for fiscal years beginning after December 15, 2019. Early adoption is permitted. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Sep. 30, 2018 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | 4. Revenue Recognition Update to Significant Accounting Policies Revenue Recognition Upon the adoption of ASC 606 effective April 1, 2018, the Company revised its accounting policy on revenue recognition from the policy provided in the Notes to Consolidated Financial Statements included in the Company’s Form 10-K for the year ended March 31, 2018. The revised accounting policy for revenue recognition is provided below. Through the Company’s agreements with customers, the Company now has a single performance obligation, to fulfill customer orders for automotive goods. Revenue is recognized when obligations under the terms of a contract with its customers are satisfied; generally, this occurs with the transfer of control of its manufactured, remanufactured, or distributed products. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services. Revenue is recognized net of all anticipated returns, including Used Core returns under the core exchange program, marketing allowances, volume discounts, and other forms of variable consideration For products shipped free-on-board (“FOB”) shipping point, revenue is recognized on the date of shipment. For products shipped FOB destination, revenues are recognized on the estimated or actual date of delivery. The Company includes shipping and handling charges in the gross invoice price to customers and classify the total amount as revenue. All shipping and handling costs are expensed as incurred and included in cost of sales. The Company now has a single performance obligation; however, the price of a finished remanufactured product sold to customers is generally comprised of separately invoiced amounts for the Remanufactured Core included in the product (“Remanufactured Core value”) and the unit value. The unit value is recorded as revenue based on the Company’s then current price list, net of applicable discounts and allowances. The Remanufactured Core value is recorded as a net revenue based upon the estimate of Used Cores that will not be returned by the customer for credit. This net core revenue estimate is based on contractual arrangements with customers and business practices. A significant portion of the remanufactured automotive parts sold to customers are replaced by similar Used Cores sent back for credit by customers under the core exchange program (as described in further detail below). The number of Used Cores sent back under the core exchange program is generally limited to the number of similar Remanufactured Cores previously shipped to each customer. Revenue Recognition — Core Exchange Program Full price Remanufactured Cores: When remanufactured products are shipped, certain customers are invoiced for the Remanufactured Core portion of the product at the full Remanufactured Core sales price. For these Remanufactured Cores, revenue is only recognized based upon an estimate of the rate at which these customers will pay cash for Remanufactured Cores in lieu of sending back similar Used Cores for credits under the core exchange program. The remainder of the full price Remanufactured Core portion invoiced to these customers is established as a long-term contract liability rather than being recognized as revenue in the period the products are shipped as the Company expects these Remanufactured Cores to be returned for credit under its core exchange program. Nominal price Remanufactured Cores: Certain other customers are invoiced for the Remanufactured Core portion of the product shipped at a nominal (generally $0.01 or less) Remanufactured Core price. For these nominal Remanufactured Cores, revenue is only recognized based upon an estimate of the rate at which these customers will pay cash for Remanufactured Cores in lieu of sending back similar Used Cores for credits under the core exchange program. Revenue amounts are calculated based on contractually agreed upon pricing for these Remanufactured Cores for which the customers are not returning similar Used Cores. The remainder of the nominal price Remanufactured Core portion invoiced to these customers is established as a long-term contract liability rather than being recognized as revenue in the period the products are shipped as the Company expects these Remanufactured Cores to be returned for credit under its core exchange program. Revenue Recognition; General Right of Return Customers are allowed to return goods that their end-user customers have returned to them, whether or not the returned item is defective (warranty returns). In addition, under the terms of certain agreements and industry practice, customers from time to time are allowed stock adjustments when their inventory of certain product lines exceeds the anticipated sales to end-user customers (stock adjustment returns). Customers have various contractual rights for stock adjustment returns, which are typically less than 5% of units sold. In some instances, a higher level of returns is allowed in connection with significant restocking orders. In addition, customers are allowed to return goods that their end-user consumers have returned to them. The aggregate returns are generally limited to less than 20% of unit sales. The allowance for warranty returns is established based on a historical analysis of the level of this type of return as a percentage of total unit sales. Stock adjustment returns do not occur at any specific time during the year, and the expected level of these returns cannot be reasonably estimated based on a historical analysis. The allowance for stock adjustment returns is based on specific customer inventory levels, inventory movements, and information on the estimated timing of stock adjustment returns provided by customers. The return rate for stock adjustments is calculated based on expected returns within the normal operating cycle, which is generally one year. The unit value of the warranty and stock adjustment returns are treated as reductions of revenue based on the estimations made at the time of the sale. The Remanufactured Core value of warranty and stock adjustment returns are provided for as indicated in the paragraph “Revenue Recognition – Core Exchange Program”. Contract Assets Contract assets consists of (i) the core portion of the finished goods shipped to the Company’s customers, (ii) upfront payments to customers in connection with customer contracts, (iii) core premiums paid to customers, and (iv) long-term core inventory deposits. Remanufactured Cores held at customers’ locations as a part of the finished goods sold to the customer are classified as long-term contract assets. These assets are valued at the lower of cost or net realizable value, based on the most recent purchases of inventory on hand. For these Remanufactured Cores, the Company expects the finished good containing the Remanufactured Core to be returned under the Company’s general right of return policy or a similar Used Core to be returned to the Company by the customer, under the Company’s core exchange program in each case, for credit. The Remanufactured Core portion of stock adjustment returns and the Used Cores returned by consumers to the Company’s customers but not yet returned to the Company are classified as short-term contract assets until the Company physically receives them during its normal operating cycle, which is generally one year. Upfront payments to customers represent the marketing allowances, such as sign-on bonuses, slotting fees, and promotional allowances provided by the Company to its customers. These allowances are recognized as an asset and amortized over the appropriate period of time as a reduction of revenue if the Company expects to generate future revenues associated with the upfront payment. If the Company does not expect to generate additional revenue, then the upfront payment is recognized in the consolidated statements of operations when payment occurs as a reduction of revenue. Upfront payments expected to be amortized during the Company’s normal operating cycle, which is generally one year, are classified as short-term contract assets. Core premiums paid to customers represent the difference between the Remanufactured Core acquisition price purchased from customers generally in connection with new business, and the related inventory cost of the core, which is treated as an asset and recognized as a reduction of revenue through the later of the date at which related revenue is recognized or the date at which the sales incentive is offered. T expected to be amortized within the Company’s normal operating cycle, which is generally one year, are classified as short-term contract assets. Long-term core inventory deposits represent the cost of Remanufactured Cores the Company has purchased from customers, which are held by the customers and remain on the customers’ premises. The costs of these Remanufactured Cores were established at the time of the transaction based on the then current cost. The selling value of these Remanufactured Cores was established based on agreed upon amounts with these customers. The Company expects to realize the selling value and the related cost of these Remanufactured Cores should its relationship with a customer end, a possibility that the Company considers remote based on existing long-term customer agreements and historical experience. Contract Liability Contract liability consists of: (i) customer allowances earned, (ii) accrued core payments, and (iii) customer core returns accruals. Customer allowances earned includes all marketing allowances provided to customers. Such allowances include sales incentives and concessions. Voluntary marketing allowances related to a single exchange of product are recorded as a reduction of revenues at the time the related revenues are recorded or when such incentives are offered. Other marketing allowances, which may only be applied against future purchases, are recorded as a reduction to revenues in accordance with a schedule set forth in the relevant contract. Sales incentive amounts are recorded based on the value of the incentive provided. Customer allowances earned are considered to be short-term contract liabilities. Accrued core payments represent the sales price of Remanufactured Cores purchased from customers, generally in connection with new business, which are held by these customers and remain on their premises. The sales price of these Remanufactured Cores will be realized when the Company’s relationship with a customer ends, a possibility that the Company considers remote based on existing long-term customer agreements and historical experience. The payments made to customers for purchases of Remanufactured Cores within the Company’s normal operating cycle, which is generally one year, are considered short-term contract liabilities. Customer core returns accruals represents the full and nominally priced Remanufactured Cores shipped to the Company’s customers. When the Company ships the product, it recognizes an obligation to accept a similar Used Core sent back under the core exchange program based upon the Remanufactured Core price agreed upon by the Company and its customer. The Contract liability related to Used Cores returned by consumers to the Company’s customers but not yet returned to the Company are classified as short-term contract liabilities until the Company physically receives these Used Cores as they are expected to be returned during the Company’s normal operating cycle, which is generally one year. Inventory Inventory is comprised of (i) Used Core and component raw materials, (ii) work-in-process, (iii) remanufactured finished goods, and (iv) purchased finished goods. Inventory is stated at the lower of cost or net realizable value. The cost of inventory is evaluated at least quarterly during the fiscal year and adjusted as necessary to reflect current lower of cost or net realizable value levels. These adjustments are determined for individual items of inventory within each of the classifications of inventory as follows: • Component raw materials are recorded at average cost, which is based on the actual purchase price of raw materials on hand. This average cost is used in the inventory costing process and is the basis for allocation of materials to finished goods during the production process. • Used Core raw materials are recorded at average historical purchase prices determined based on actual purchases of inventory on hand. The purchase price for core buy-backs made from the Company’s customers are deemed the same as the purchase price of Used Cores for which sufficient recent purchases have occurred. The average purchase prices of Used Cores for more recent automobile models are retained as the cost for these Used Cores in subsequent periods even as the source of these Used Cores shifts to the core exchange program. The Company purchases Used Cores from core brokers to supplement its yield rates and the under return by consumers. In the absence of sufficient recent purchases, the Company uses the net selling price its customers have agreed to pay for Used Cores that are not returned to the Company under the Company’s core exchange program to assess whether Used Core cost exceeds Used Core net realizable value • Work-in-process is in various stages of production and is valued at the average cost of materials issued to open work orders. Historically, work-in-process inventory has not been material compared to the total inventory balance. • The cost of remanufactured finished goods includes the average cost of Used Core and component raw materials and allocations of labor and variable and fixed overhead costs. The allocations of labor and variable and fixed overhead costs are determined based on the average actual use of the production facilities over the prior twelve months which approximates normal capacity. This method prevents the distortion in allocated labor and overhead costs that would occur during short periods of abnormally low or high production. In addition, the Company excludes certain unallocated overhead such as severance costs, duplicative facility overhead costs, start-up costs, training, and spoilage from the calculation and expenses these unallocated overhead as period costs. The cost of purchased finished goods inventory approximates average historical purchase prices paid, and an allocation of fixed overhead costs. The Company records an allowance for potentially excess and obsolete inventory based upon recent sales history, the quantity of inventory on-hand, and a forecast of potential use of the inventory. The Company periodically reviews inventory to identify excess quantities and part numbers that are experiencing a reduction in demand. Any part numbers with quantities identified during this process are reserved for at rates based upon management’s judgment, historical rates, and consideration of possible scrap and liquidation values which may be as high as 100% of cost if no liquidation market exists for the part. The Company had recorded reserves for excess and obsolete inventory of $10,027,000 at September 30, 2018 and $6,682,000 at March 31, 2018. The quantity thresholds and reserve rates are subjective and based on management’s judgment and knowledge of current and projected industry demand. The reserve estimates may, therefore, be revised if there are changes in the overall market for the Company’s products or market changes that in management’s judgment, impact its ability to sell or liquidate potentially excess or obsolete inventory. The Company records vendor discounts as a reduction of inventories that are recognized as a reduction to cost of sales as the inventories are sold. Inventory Unreturned Inventory unreturned represents the Company’s estimate, based on historical data and prospective information provided directly by the customer, of finished goods shipped to customers that the Company expects to be returned, under its general right of return policy, after the balance sheet date. Inventory unreturned includes only the added unit value of a finished good. The return rate is calculated based on expected returns within the normal operating cycle, which is generally one year. As such, the related amounts are classified in current assets. Inventory unreturned is valued in the same manner as the Company’s finished goods inventory. Impact of the Adoption of the New Accounting Standard As a result of the adoption of ASC 606 and the resultant changes in Company policy noted above, the effect of the adoption on the consolidated statements of operations was an increase to the Company’s revised retained earnings as of April 1, 2016 by approximately $345,000, net of tax. The effects of adoption were also a decrease to revised revenues for the year ended March 31, 2017 of $824,000 and an increase to revised revenues for the year ended March 31, 2018 of $557,000. The revenue changes were accompanied by related changes to cost of goods sold - a decrease to revised cost of goods sold for the year ended March 31, 2017 of $758,000, and an increase to revised cost of goods sold for the year ended March 31, 2018 of $66,000. The primary result of the adoption effects upon the financial statement was due to an acceleration of revenue recognition for Remanufactured Cores not expected to be returned to the Company upon the initial recognition of revenue. Prior to adopting ASC 606, the Company had delayed recognizing revenue for sales of cores not expected to be replaced by a similar Used Core sent back under the core exchange program until it believed all of the following criteria were met: · The Company has a signed agreement with the customer covering the nominally priced Remanufactured Cores not expected to be replaced by a similar Used Core sent back under the core exchange program. This agreement must specify the number of Remanufactured Cores its customer will pay cash for in lieu of sending back a similar Used Core and the basis on which the nominally priced Remanufactured Cores are to be valued (normally the average price per Remanufactured Core stipulated in the agreement). · The contractual date for reconciling the Company’s records and customer’s records of the number of nominally priced Remanufactured Cores not expected to be replaced by a similar Used Core sent back under the core exchange program must be in the current or a prior period. · The reconciliation of the nominally priced Remanufactured Cores must be completed and agreed to by the customer. · The amount must be billed to the customer. In order to properly determine the transaction price related to the Company’s sales contracts, the Company has also analyzed its various forms of consideration paid to its customers, including upfront payments for future contracts. Based on the analysis performed, the Company identified no changes to its legacy accounting practices as a result of the adoption of ASC 606 to account for upfront payments to the Company’s customers. Accordingly, if the Company expects to generate future revenues associated with an upfront payment, then an asset is recognized and amortized over the appropriate period of time as a reduction of revenue. If the Company does not expect to generate additional revenue, then the upfront payment is recognized in the consolidated statements of operations when payment occurs as a reduction of revenue. Similarly, the Company has analyzed discounts and promotions offered to customers. In reviewing these discounts, the Company assessed whether any discounts were offered incremental to the range of discounts typically given for its goods to specific customer classes. In performing this analysis, the Company determined that there are no incremental discounts offered to customers and as such, its discounts do not represent a material right to the Company’s customers. As such, the Company will account for these discounts as variable consideration, as a reduction of revenue in the consolidated statements of operations when the product the discount is applicable to is sold. The adoption of the new revenue recognition standard impacted the revised consolidated statement of operations for the three months ended June 30, 2017 as follows: Three Months Ended June 30, 2017 As Revised Adoption of ASC 606 As Adjusted Net sales $ 94,239,000 $ 456,000 $ 94,695,000 Cost of goods sold 69,224,000 (381,000 ) 68,843,000 Gross profit 25,015,000 837,000 25,852,000 Operating expenses: General and administrative 5,888,000 - 5,888,000 Sales and marketing 3,394,000 - 3,394,000 Research and development 1,002,000 - 1,002,000 Total operating expenses 10,284,000 - 10,284,000 Operating income 14,731,000 837,000 15,568,000 Interest expense, net 3,314,000 - 3,314,000 Income before income tax expense 11,417,000 837,000 12,254,000 Income tax expense 4,122,000 312,000 4,434,000 Net income $ 7,295,000 $ 525,000 $ 7,820,000 Basic net income per share $ 0.39 $ 0.03 $ 0.42 Diluted net income per share $ 0.38 $ 0.03 $ 0.40 The adoption of the new revenue recognition standard impacted the revised consolidated statements of operations for the three and six months ended September 30, 2017 as follows: Three Months Ended September 30, 2017 Six Months Ended September 30, 2017 As Revised Adoption of ASC 606 As Adjusted As Revised Adoption of ASC 606 As Adjusted Net sales $ 110,853,000 $ (592,000 ) $ 110,261,000 $ 205,092,000 $ (136,000 ) $ 204,956,000 Cost of goods sold 84,612,000 (378,000 ) 84,234,000 153,836,000 (759,000 ) 153,077,000 Gross profit 26,241,000 (214,000 ) 26,027,000 51,256,000 623,000 51,879,000 Operating expenses: General and administrative 8,615,000 - 8,615,000 14,503,000 - 14,503,000 Sales and marketing 3,457,000 - 3,457,000 6,851,000 - 6,851,000 Research and development 1,240,000 - 1,240,000 2,242,000 - 2,242,000 Total operating expenses 13,312,000 - 13,312,000 23,596,000 - 23,596,000 Operating income (loss) 12,929,000 (214,000 ) 12,715,000 27,660,000 623,000 28,283,000 Interest expense, net 3,522,000 - 3,522,000 6,836,000 - 6,836,000 Income (loss) before income tax expense (benefit) 9,407,000 (214,000 ) 9,193,000 20,824,000 623,000 21,447,000 Income tax expense (benefit) 3,684,000 (86,000 ) 3,598,000 7,806,000 226,000 8,032,000 Net income (loss) $ 5,723,000 $ (128,000 ) $ 5,595,000 $ 13,018,000 $ 397,000 $ 13,415,000 Basic net income (loss) per share $ 0.31 $ (0.01 ) $ 0.30 $ 0.70 $ 0.02 $ 0.72 Diluted net income (loss) per share $ 0.30 $ (0.01 ) $ 0.29 $ 0.67 $ 0.02 $ 0.69 Also, as a result of the adoption of ASC 606 and the resultant changes in Company policy noted above, the effect of the adoption on the consolidated balance sheets was to create contract asset and contract liability accounts to reflect those balance sheet items being impacted by the new revenue recognition requirements. The main drivers of the reclassifications were (i) the need to accommodate the aggregation of Remanufactured Core and Unit portion of the product sales under one single performance obligation and (ii) the creation of contract asset and contract liability accounts to appropriately segregate those balance sheet items related to the ongoing transactions under the Company’s customer contracts. Detailed impacts on specific consolidated balance sheet account can be found in the individual footnotes covering the separate line items on the face of the consolidated balance sheet. The adoption of the new revenue recognition standard impacted the revised consolidated balance sheet at March 31, 2018 as follows: March 31, 2018 As Revised Adoption of ASC 606 As Adjusted ASSETS Current assets: Cash and cash equivalents $ 13,049,000 $ - $ 13,049,000 Short-term investments 2,828,000 - 2,828,000 Accounts receivable — net 15,738,000 47,436,000 63,174,000 Inventory— net 76,275,000 84,935,000 161,210,000 Inventory unreturned 7,508,000 - 7,508,000 Contract assets - 23,206,000 23,206,000 Income tax receivable 7,972,000 - 7,972,000 Prepaid expenses and other current assets 15,104,000 (6,496,000 ) 8,608,000 Total current assets 138,474,000 149,081,000 287,555,000 Plant and equipment — net 28,322,000 - 28,322,000 Long-term core inventory — net 298,294,000 (298,294,000 ) - Long-term core inventory deposits 5,569,000 (5,569,000 ) - Long-term deferred income taxes 6,937,000 (239,000 ) 6,698,000 Long-term contract assets - 222,731,000 222,731,000 Goodwill 2,551,000 - 2,551,000 Intangible assets — net 3,766,000 - 3,766,000 Other assets 21,995,000 (21,191,000 ) 804,000 TOTAL ASSETS $ 505,908,000 $ 46,519,000 $ 552,427,000 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 73,273,000 $ - $ 73,273,000 Accrued liabilities 12,048,000 - 12,048,000 Customer finished goods returns accrual 17,805,000 - 17,805,000 Accrued core payment 16,536,000 (16,536,000 ) - Contract liabilities - 32,603,000 32,603,000 Revolving loan 54,000,000 - 54,000,000 Other current liabilities 4,471,000 - 4,471,000 Current portion of term loan 3,068,000 - 3,068,000 Total current liabilities 181,201,000 16,067,000 197,268,000 Term loan, less current portion 13,913,000 - 13,913,000 Long-term accrued core payment 18,473,000 (18,473,000 ) - Long-term deferred income taxes 226,000 - 226,000 Long-term contract liabilities - 48,183,000 48,183,000 Other liabilities 5,957,000 - 5,957,000 Total liabilities 219,770,000 45,777,000 265,547,000 Commitments and contingencies Shareholders’ equity: Preferred stock; par value $.01 per share, 5,000,000 shares authorized; none issued - - - Series A junior participating preferred stock; par value $.01 per share, 20,000 shares authorized; none issued - - - Common stock; par value $.01 per share, 50,000,000 shares authorized; 18,893,102 shares issued and outstanding at March 31, 2018 189,000 - 189,000 Additional paid-in capital 213,609,000 - 213,609,000 Retained earnings 77,768,000 742,000 78,510,000 Accumulated other comprehensive loss (5,428,000 ) - (5,428,000 ) Total shareholders’ equity 286,138,000 742,000 286,880,000 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 505,908,000 $ 46,519,000 $ 552,427,000 The adoption of the new revenue recognition standard impacted the revised statement of cash flows for the three months ended June 30, 2017 as follows: Three Months Ended June 30, 2017 Cash flows from operating activities: As Revised Adoption of ASC 606 As Adjusted Net income $ 7,295,000 $ 525,000 $ 7,820,000 Deferred income taxes (103,000 ) 312,000 209,000 Accounts receivable 16,038,000 (6,705,000 ) 9,333,000 Inventory (14,942,000 ) (3,552,000 ) (18,494,000 ) Other assets 1,432,000 (1,433,000 ) (1,000 ) Long-term core inventory (2,878,000 ) 2,878,000 - Contract assets, net - 1,726,000 1,726,000 Contract liabilities, net - 3,172,000 3,172,000 Accrued core payments (3,077,000 ) 3,077,000 - Net cash used in operating activities (644,000 ) - (644,000 ) The adoption of the new revenue recognition standard impacted the revised statement of cash flows for the six months ended September 30, 2017 as follows: Six Months Ended September 30, 2017 Cash flows from operating activities: As Revised Adoption of ASC 606 As Adjusted Net income $ 13,018,000 $ 397,000 $ 13,415,000 Deferred income taxes (433,000 ) 226,000 (207,000 ) Accounts receivable 14,683,000 (11,864,000 ) 2,819,000 Inventory (18,718,000 ) (9,834,000 ) (28,552,000 ) Other assets 2,943,000 (2,963,000 ) (20,000 ) Long-term core inventory (5,155,000 ) 5,155,000 - Contract assets, net - 6,882,000 6,882,000 Contract liabilities, net - 5,837,000 5,837,000 Accrued core payments (6,164,000 ) 6,164,000 - Net cash used in operating activities $ (8,148,000 ) $ - $ (8,148,000 ) |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets [Abstract] | |
Goodwill and Intangible Assets | 5. Goodwill and Intangible Assets Goodwill The following summarizes the changes in the Company’s goodwill: Six Months Ended September 30, 2018 2017 Balance at beginning of period $ 2,551,000 $ 2,551,000 Goodwill acquired - - Translation adjustment - - Impairment - - Balance at end of period $ 2,551,000 $ 2,551,000 Intangible Assets The following is a summary of acquired intangible assets subject to amortization: September 30, 2018 March 31, 2018 Weighted Average Amortization Period Gross Carrying Value Accumulated Amortization Gross Carrying Value Accumulated Intangible assets subject to amortization Trademarks 9 years $ 885,000 $ 392,000 $ 885,000 $ 316,000 Customer relationships 13 years 5,900,000 3,195,000 5,900,000 2,937,000 Developed technology 3 years 299,000 117,000 301,000 67,000 Total $ 7,084,000 $ 3,704,000 $ 7,086,000 $ 3,320,000 Amortization expense for acquired intangible assets is as follows: Three Months Ended September 30, Six Months Ended September 30, 2018 2017 2018 2017 Amortization expense $ 192,000 $ 180,000 $ 384,000 $ 325,000 The estimated future amortization expense for acquired intangible assets is as follows: Year Ending March 31, 2019 - remaining six months $ 385,000 2020 710,000 2021 613,000 2022 580,000 2023 580,000 Thereafter 512,000 Total $ 3,380,000 |
Accounts Receivable - Net
Accounts Receivable - Net | 6 Months Ended |
Sep. 30, 2018 | |
Accounts Receivable - Net [Abstract] | |
Accounts Receivable - Net | 6. Accounts Receivable — Net The adoption of the new revenue recognition standard (see Note 4) impacted the previously reported accounts receivable—net, at March 31, 2018 as follows: March 31, 2018 As Previously Reported Adoption of ASC 606 As Adjusted Accounts receivable — trade $ 83,700,000 $ - $ 83,700,000 Allowance for bad debts (4,142,000 ) - (4,142,000 ) Customer allowances earned (11,370,000 ) 11,370,000 (1 ) - Customer payment discrepancies (1,110,000 ) - (1,110,000 ) Customer returns RGA issued (15,274,000 ) - (15,274,000 ) Customer core returns accruals (36,066,000 ) 36,066,000 (2 ) - Less: total accounts receivable offset accounts (67,962,000 ) 47,436,000 (20,526,000 ) Total accounts receivable — net $ 15,738,000 $ 47,436,000 $ 63,174,000 (1) Customer allowances earned have been reclassified to contract liabilities in the consolidated balance sheet at March 31, 2018. (2) Customer core returns accruals of $4,697,000 have been reclassified to contract liabilities and customer core returns accruals of $31,369,000 have been reclassified to long-term contract liabilities in the consolidated balance sheet at March 31, 2018. Accounts receivable — net includes offset accounts related to customer payment discrepancies, returned goods authorizations (“RGA”) issued for in-transit unit returns, and potential bad debts. Accounts receivable — net is comprised of the following: September 30, 2018 March 31, 2018 Accounts receivable — trade $ 77,686,000 $ 83,700,000 Allowance for bad debts (4,348,000 ) (4,142,000 ) Customer payment discrepancies (827,000 ) (1,110,000 ) Customer returns RGA issued (16,426,000 ) (15,274,000 ) Less: total accounts receivable offset accounts (21,601,000 ) (20,526,000 ) Total accounts receivable — net $ 56,085,000 $ 63,174,000 Warranty Returns The Company allows its customers to return goods that their customers have returned to them, whether or not the returned item is defective (“warranty returns”). The Company accrues an estimate of its exposure to warranty returns based on a historical analysis of the level of this type of return as a percentage of total unit sales. Amounts charged to expense for these warranty returns are considered in arriving at the Company’s net sales. At September 30, 2018 and March 31, 2018, the Company’s total warranty return accrual was $16,410,000 and $16,646,000, respectively, of which $6,390,000 and $7,204,000, respectively, was included in the customer returns RGA issued balance in the above table for expected credits to be issued against accounts receivable and $10,020,000 and $9,442,000, respectively, was included in the customer finished goods returns accrual in the consolidated balance sheets for estimated future warranty returns. The following summarizes the changes in the Company’s warranty return accrual: Three Months Ended September 30, Six Months Ended September 30, 2018 2017 2018 2017 Balance at beginning of period $ 14,543,000 $ 12,849,000 $ 16,646,000 $ 14,286,000 Charged to expense/additions 30,860,000 29,359,000 54,753,000 51,565,000 Amounts processed (28,993,000 ) (27,409,000 ) (54,989,000 ) (51,052,000 ) Balance at end of period $ 16,410,000 $ 14,799,000 $ 16,410,000 $ 14,799,000 |
Inventory
Inventory | 6 Months Ended |
Sep. 30, 2018 | |
Inventory [Abstract] | |
Inventory | 7. Inventory The adoption of the new revenue recognition standard (see Note 4) impacted the revised inventory at March 31, 2018 as follows: March 31, 2018 Adoption of As Revised ASC 606 As Adjusted Inventory Raw materials $ 25,805,000 $ 51,330,000 (1 ) $ 77,135,000 Work-in-process 635,000 1,948,000 (1 ) 2,583,000 Finished goods 53,973,000 34,201,000 (2 ) 88,174,000 80,413,000 87,479,000 167,892,000 Less allowance for excess and obsolete inventory (4,138,000 ) (2,544,000 ) (3 ) (6,682,000 ) Total $ 76,275,000 $ 84,935,000 $ 161,210,000 Inventory unreturned $ 7,508,000 $ - $ 7,508,000 Long-term core inventory Used cores held at the Company’s facilities $ 53,278,000 $ (53,278,000 ) (1 ) $ - Used cores expected to be returned by customers 12,970,000 (12,970,000 ) (4 ) - Remanufactured cores held in finished goods 34,201,000 (34,201,000 ) (2 ) - Remanufactured cores held at customers’ locations 200,389,000 (200,389,000 ) (5 ) - 300,838,000 (300,838,000 ) - Less allowance for excess and obsolete inventory (2,544,000 ) 2,544,000 (3 ) - Total $ 298,294,000 $ (298,294,000 ) $ - Long-term core inventory deposits $ 5,569,000 $ (5,569,000 ) (6 ) $ - (1) Used cores held at the Company’s facilities of $53,278,000 have been reclassified to raw materials and work-in-process in the consolidated balance sheet at March 31, 2018. (2) Remanufactured Cores held in finished goods of $34,201,000 have been reclassified to finished goods in the consolidated balance sheet at March 31, 2018. (3) The allowance for excess and obsolete inventory related to Used cores held at the Company’s facilities of $2,544,000, which was previously included in long-term core inventory, has been reclassified to inventory—net in the consolidated balance sheet at March 31, 2018. (4) Used cores expected to be returned by customers of $12,970,000 have been reclassified to contract assets in the consolidated balance sheet at March 31, 2018. (5) Remanufactured cores held at customers’ locations of $200,389,000 have been reclassified to current and long-term contract assets in the consolidated balance sheet at March 31, 2018. (6) Long-term core inventory deposits of $5,569,000 have been reclassified to long-term contract assets in the consolidated balance sheet at March 31, 2018. Inventory–net is comprised of the following: September 30, 2018 March 31, 2018 Inventory - net Raw materials $ 89,919,000 $ 77,135,000 Work-in-process 3,811,000 2,583,000 Finished goods 104,584,000 88,174,000 198,314,000 167,892,000 Less allowance for excess and obsolete inventory (10,027,000 ) (6,682,000 ) Total inventory - net $ 188,287,000 $ 161,210,000 Inventory unreturned $ 9,100,000 $ 7,508,000 |
Contract Assets
Contract Assets | 6 Months Ended |
Sep. 30, 2018 | |
Contract Assets [Abstract] | |
Contract Assets | 8. Contract Assets Contract assets (see Note 4) are comprised of the following: September 30, 2018 March 31, 2018 Short-term contract assets (As Adjusted) Cores expected to be returned by customers $ 16,775,000 $ 15,614,000 Upfront payments to customers 3,441,000 3,979,000 Core premiums paid to customers 4,056,000 3,613,000 $ 24,272,000 $ 23,206,000 Long-term contract assets Remanufactured cores held at customers' locations $ 204,692,000 $ 197,067,000 Upfront payments to customers 4,050,000 5,492,000 Core premiums paid to customers 16,127,000 14,603,000 Long-term core inventory deposits 5,569,000 5,569,000 $ 230,438,000 $ 222,731,000 Total contract assets $ 254,710,000 $ 245,937,000 |
Significant Customer and Other
Significant Customer and Other Information | 6 Months Ended |
Sep. 30, 2018 | |
Significant Customer and Other Information [Abstract] | |
Significant Customer and Other Information | 9. Significant Customer and Other Information Significant Customer Concentrations The Company’s largest customers accounted for the following total percentage of net sales: Three Months Ended September 30, Six Months Ended September 30, 2018 2017 2018 2017 Net sales (As Adjusted) (As Adjusted) Customer A 39 % 47 % 38 % 44 % Customer B 26 % 26 % 24 % 26 % Customer C 20 % 13 % 22 % 15 % The Company’s largest customers accounted for the following total percentage of accounts receivable – trade: September 30, 2018 March 31, 2018 Accounts receivable - trade Customer A 31 % 36 % Customer B 23 % 16 % Customer C 12 % 22 % Geographic and Product Information The Company’s products are predominantly sold in the U.S. and accounted for the following total percentage of net sales: Three Months Ended September 30, Six Months Ended September 30, 2018 2017 2018 2017 (As Adjusted) (As Adjusted) Rotating electrical products 80 % 76 % 79 % 77 % Wheel hub products 14 % 18 % 16 % 18 % Brake master cylinders products 2 % 3 % 2 % 3 % Other products 4 % 3 % 3 % 2 % 100 % 100 % 100 % 100 % Significant Supplier Concentrations The Company had no suppliers that accounted for more than 10% of inventory purchases for the three and six months ended September 30, 2018 and 2017. |
Debt
Debt | 6 Months Ended |
Sep. 30, 2018 | |
Debt [Abstract] | |
Debt | 10. Debt The Company was party to a $145,000,000 senior secured financing, (as amended from time to time, the “Credit Facility”) with a syndicate of lenders, and PNC Bank, National Association, as administrative agent, consisting of (i) a $120,000,000 revolving loan facility, subject to borrowing base restrictions and a $15,000,000 sublimit for letters of credit (the “Revolving Facility”) and (ii) a $25,000,000 term loan facility (the “Term Loans”). The loans under the Credit Facility were scheduled to mature on June 3, 2020. In connection with the Credit Facility, the lenders were granted a security interest in substantially all of the assets of the Company. The Credit Facility permitted the payment of up to $15,000,000 of dividends per calendar year, subject to a minimum availability threshold and pro forma compliance with financial covenants. The Term Loans required quarterly principal payments of $781,250. The interest rate on the Company’s Term Loans and Revolving Facility was 4.42% and 4.52%, respectively, as of March 31, 2018. In June 2018, the Company entered into an amendment and restatement of the Credit Facility (as so amended and restated, the “Amended Credit Facility”) with a syndicate of lenders, and PNC Bank, National Association, as administrative agent, consisting of (i) a $200,000,000 revolving loan facility, subject to borrowing base restrictions, a $20,000,000 sublimit for borrowings by Canadian borrowers, and a $15,000,000 sublimit for letters of credit (the “Amended Revolving Facility”) and (ii) a $30,000,000 term loan facility (the “Amended Term Loans”). The loans under the Amended Credit Facility mature on June 5, 2023. The Amended Credit Facility permits the payment of up to $20,000,000 of dividends per fiscal year, subject to a minimum availability threshold and pro forma compliance with financial covenants. In connection with the Amended Credit Facility, the lenders were granted a security interest in substantially all of the assets of the Company. The Company wrote-off $303,000 of previously capitalized debt issuance costs and capitalized $1,757,000 of new debt issuance costs in connection with the Amended Credit Facility. The Amended Term Loans required quarterly principal payments of $937,500 beginning October 1, 2018. The Amended Credit Facility bears interest at rates equal to either LIBOR plus a margin of 2.25%, 2.50% or 2.75% or a reference rate plus a margin of 1.25%, 1.50% or 1.75%, in each case depending on the senior leverage ratio as of the applicable measurement date. There is also a facility fee of 0.375% to 0.50%, depending on the senior leverage ratio as of the applicable measurement date. The interest rate on the Company’s Amended Term Loans and Amended Revolving Facility was 4.58% and 4.66%, respectively, as of September 30, 2018. On November 14, 2018, the Company entered into the First Amendment to the Amended Credit Facility (the “First Amendment”). The First Amendment, among other things, extended the due date for the quarterly financial statements required to be delivered under the Amended Credit Facility for the quarter ended September 30, 2018. The Amended Credit Facility, among other things, requires the Company to maintain certain financial covenants including a maximum senior leverage ratio and a minimum fixed charge coverage ratio. The Company was in compliance with all financial covenants pursuant to the First Amendment as of September 30, 2018. In addition to other covenants, the Amended Credit Facility places limits on the Company’s ability to incur liens, incur additional indebtedness, make loans and investments, engage in mergers and acquisitions, engage in asset sales, redeem or repurchase capital stock, alter the business conducted by the Company and its subsidiaries, transact with affiliates, prepay, redeem or purchase subordinated debt, and amend or otherwise alter debt agreements. The following summarizes information about the Company’s term loans at: September 30, 2018 March 31, 2018 Principal amount of term loan $ 30,000,000 $ 17,188,000 Unamortized financing fees (283,000 ) (207,000 ) Net carrying amount of term loan 29,717,000 16,981,000 Less current portion of term loan (3,685,000 ) (3,068,000 ) Long-term portion of term loan $ 26,032,000 $ 13,913,000 Future repayments of the Company’s Amended Term Loans are as follows: Year Ending March 31, 2019 - remaining six months 1,875,000 2020 3,750,000 2021 3,750,000 2022 3,750,000 2023 3,750,000 Thereafter 13,125,000 Total payments $ 30,000,000 The Company had $52,906,000 and $54,000,000 outstanding under the revolving facility at September 30, 2018 and March 31, 2018, respectively. In addition, $734,000 was reserved for letters of credit at September 30, 2018. At September 30, 2018, after certain adjustments, $141,367,000 was available under the Amended Revolving Facility. |
Contract Liabilities
Contract Liabilities | 6 Months Ended |
Sep. 30, 2018 | |
Contract Liabilities [Abstract] | |
Contract Liabilities | 11. Contract Liabilities Contract liabilities (see Note 4) are comprised of the following: September 30, 2018 March 31, 2018 Short-term contract liabilities Customer allowances earned $ 11,381,000 $ 11,370,000 Customer core returns accruals 4,743,000 4,697,000 Accrued core payment, net 15,364,000 16,536,000 $ 31,488,000 $ 32,603,000 Long-term contract liabilities Customer core returns accruals $ 34,000,000 $ 29,710,000 Accrued core payment, net 18,535,000 18,473,000 $ 52,535,000 $ 48,183,000 Total contract liabilities $ 84,023,000 $ 80,786,000 |
Accounts Receivable Discount Pr
Accounts Receivable Discount Programs | 6 Months Ended |
Sep. 30, 2018 | |
Accounts Receivable Discount Programs [Abstract] | |
Accounts Receivable Discount Programs | 12. Accounts Receivable Discount Programs The Company uses receivable discount programs with certain customers and their respective banks. Under these programs, the Company may sell those customers’ receivables to those banks at a discount to be agreed upon at the time the receivables are sold. These discount arrangements allow the Company to accelerate receipt of payment on customers’ receivables. The following is a summary of the Company’s accounts receivable discount programs: Six Months Ended September 30, 2018 2017 Receivables discounted $ 191,849,000 $ 175,209,000 Weighted average days 338 341 Annualized weighted average discount rate 4.1 % 3.1 % Amount of discount as interest expense $ 7,441,000 $ 5,090,000 |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 6 Months Ended |
Sep. 30, 2018 | |
Net Income (Loss) Per Share [Abstract] | |
Net Income (Loss) Per Share | 13. Net Income (Loss) Per Share Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per share includes the effect, if any, from the potential exercise or conversion of securities, such as stock options and warrants, which would result in the issuance of incremental shares of common stock. The following presents a reconciliation of basic and diluted net income (loss) per share: Three Months Ended September 30, Six Months Ended September 30, 2018 2017 2018 2017 (As Adjusted) (As Adjusted) Net income (loss) $ 3,513,000 $ 5,595,000 $ (1,982,000 ) $ 13,415,000 Basic shares 18,878,674 18,718,709 18,887,214 18,687,179 Effect of potentially dilutive securities 440,791 638,100 - 683,965 Diluted shares 19,319,465 19,356,809 18,887,214 19,371,144 Net income (loss) per share: Basic net income (loss) per share $ 0.19 $ 0.30 $ (0.10 ) $ 0.72 Diluted net income (loss) per share $ 0.18 $ 0.29 $ (0.10 ) $ 0.69 Potential common shares that would have the effect of increasing diluted net income per share or decreasing diluted net loss per share are considered to be anti-dilutive and as such, these shares are not included in calculating diluted net income (loss) per share. For the three months ended September 30, 2018 and 2017, there were 746,094 and 455,339, respectively, of potential common shares not included in the calculation of diluted net income per share because their effect was anti-dilutive. For the six months ended September 30, 2018 and 2017, there were 1,504,794 and 292,239, respectively, of potential common shares not included in the calculation of diluted net income (loss) per share because their effect was anti-dilutive. |
Income Taxes
Income Taxes | 6 Months Ended |
Sep. 30, 2018 | |
Income Taxes [Abstract] | |
Income Taxes | 14. Income Taxes The Company recorded income tax expense for the three months ended September 30, 2018 and 2017, of $1,181,000, or an effective tax rate of 25.2%, and The Company recorded an income tax benefit of $266,000, or an effective tax rate of 11.8%, for the six months ended September 30, 2018 compared to income tax expense which changed various corporate income tax provisions within the existing Internal Revenue Code U.S. GAAP requires that the impact of tax legislation be recognized in the period in which the law was enacted. As a result, the Company recorded provisional amounts due to the revaluation of deferred tax assets and liabilities and the transition tax on deemed repatriation of accumulated foreign income during fiscal 2018. Both of these tax charges represent provisional amounts and the Company’s current best estimates. Any adjustments recorded to the provisional amounts will be included as an adjustment to tax expense. The provisional amounts incorporate assumptions made based upon the Company’s current interpretation of the Tax Reform Act and may change as the Company receives additional clarification and implementation guidance. The Company remains subject to examination for the fiscal years ended March 31, 2018, 2017, 2016, and 2015. The Company believes no significant changes in the unrecognized tax benefits will occur within the next 12 months. |
Financial Risk Management and D
Financial Risk Management and Derivatives | 6 Months Ended |
Sep. 30, 2018 | |
Financial Risk Management and Derivatives [Abstract] | |
Financial Risk Management and Derivatives | 15. Financial Risk Management and Derivatives Purchases and expenses denominated in currencies other than the U.S. dollar, which are primarily related to the Company’s facilities overseas, expose the Company to market risk from material movements in foreign exchange rates between the U.S. dollar and the foreign currencies. The Company’s primary risk exposure is from fluctuations in the value of the Mexican peso and to a lesser extent the Chinese yuan. To mitigate these risks, the Company enters into forward foreign currency exchange contracts to exchange U.S. dollars for these foreign currencies. The extent to which forward foreign currency exchange contracts are used is modified periodically in response to the Company’s estimate of market conditions and the terms and length of anticipated requirements. The Company enters into forward foreign currency exchange contracts in order to reduce the impact of foreign currency fluctuations and not to engage in currency speculation. The use of derivative financial instruments allows the Company to reduce its exposure to the risk that the eventual cash outflow resulting from funding the expenses of the foreign operations will be materially affected by changes in exchange rates between the U.S. dollar and the foreign currencies. The Company does not hold or issue financial instruments for trading purposes. The forward foreign currency exchange contracts are designated for forecasted expenditure requirements to fund foreign operations. The Company had forward foreign currency exchange contracts with a U.S. dollar equivalent notional value of $30,599,000 and $31,304,000 at September 30, 2018 and March 31, 2018, respectively. These contracts generally have a term of one year or less, at rates agreed at the inception of the contracts. The counterparty to this derivative transaction is a major financial institution with investment grade credit rating; however, the Company is exposed to credit risk with this institution. The credit risk is limited to the potential unrealized gains (which offset currency fluctuations adverse to the Company) in any such contract should this counterparty fail to perform as contracted. Any changes in the fair values of forward foreign currency exchange contracts are reflected in current period earnings and accounted for as an increase or offset to general and administrative expenses. The following shows the effect of the Company’s derivative instruments on its consolidated statements of operations: Gain (Loss) Recognized within General and Administrative Expenses Derivatives Not Designated as Three Months Ended September 30, Six Months Ended September 30, Hedging Instruments 2018 2017 2018 2017 Forward foreign currency exchange contracts $ 1,898,000 $ (330,000 ) $ (768,000 ) $ 722,000 The fair value of the forward foreign currency exchange contracts of $411,000 and $1,179,000 are included in prepaid and other current assets in the consolidated balance sheets at September 30, 2018 and March 31, 2018, respectively. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Sep. 30, 2018 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 16. Fair Value Measurements The following summarizes the Company’s financial assets and liabilities measured at fair value, by level within the fair value hierarchy: September 30, 2018 March 31, 2018 Fair Value Measurements Using Inputs Considered as Fair Value Measurements Using Inputs Considered as Fair Value Level 1 Level 2 Level 3 Fair Value Level 1 Level 2 Level 3 Assets Short-term investments Mutual funds $ 3,230,000 $ 3,230,000 - - $ 2,828,000 $ 2,828,000 - - Prepaid expenses and other current assets Forward foreign currency exchange contracts 411,000 - $ 411,000 - 1,179,000 - $ 1,179,000 - Liabilities Other current liabilities Deferred compensation 3,230,000 3,230,000 - - 2,828,000 2,828,000 - - Short-term Investments and Deferred Compensation The Company’s short-term investments, which fund its deferred compensation liabilities, consist of investments in mutual funds. These investments are classified as Level 1 as the shares of these mutual funds trade with sufficient frequency and volume to enable the Company to obtain pricing information on an ongoing basis. Forward Foreign Currency Exchange Contracts The forward foreign currency exchange contracts are primarily measured based on the foreign currency spot and forward rates quoted by the banks or foreign currency dealers. During the three months ended September 30, 2018 and 2017, a gain of $1,898,000 and a loss of $330,000, respectively, was recorded in general and administrative expenses due to the change in the value of the forward foreign currency exchange contracts. During the six months ended September 30, 2018 and 2017, a loss of $768,000 and a gain of $722,000, respectively, was recorded in general and administrative expenses due to the change in the value of the forward foreign currency exchange contracts. During the six months ended September 30, 2018, the Company had no significant measurements of assets or liabilities at fair value on a nonrecurring basis subsequent to their initial recognition. The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their fair value due to the short-term nature of these instruments. The carrying amounts of the revolving loan, term loan and other long-term liabilities approximate their fair value based on the variable nature of interest rates and current rates for instruments with similar characteristics. |
Share-based Payments
Share-based Payments | 6 Months Ended |
Sep. 30, 2018 | |
Share-based Payments [Abstract] | |
Share-based Payments | 17. Share-based Payments Stock Options The Company granted options to purchase 245,400 and 163,100 shares of common stock during the six months ended September 30, 2018 and 2017, respectively. The cost associated with stock options is estimated using the Black-Scholes option-pricing model. This model requires the input of subjective assumptions including the expected volatility of the underlying stock and the expected holding period of the option. These subjective assumptions are based on both historical and other information. Changes in the values assumed and used in the model can materially affect the estimate of fair value. The following assumptions were used to derive the weighted average fair value of the stock options granted: Six Months Ended September 30, 2018 2017 Weighted average risk free interest rate 2.82 % 1.90 % Weighted average expected holding period (years) 5.94 5.82 Weighted average expected volatility 43.98 % 47.36 % Weighted average expected dividend yield - - Weighted average fair value of options granted $ 8.71 $ 12.69 The following is a summary of stock option transactions: Number of Shares Weighted Average Exercise Price Outstanding at March 31, 2018 1,143,298 $ 16.97 Granted 245,400 $ 19.02 Exercised (39,032 ) $ 6.24 Forfeited (9,700 ) $ 26.43 Outstanding at September 30, 2018 1,339,966 $ 17.59 At September 30, 2018, options to purchase 418,539 shares of common stock were unvested at the weighted average exercise price of $22.66. At September 30, 2018, there was $3,721,000 of total unrecognized compensation expense related to unvested stock option awards. The compensation expense is expected to be recognized over a weighted average vesting period of approximately 2.1 years. Restricted Stock Units (“RSUs”) During the six months ended September 30, 2018 and 2017, the Company granted 78,400 and 60,000 shares of RSUs, respectively, with an estimated grant date fair value of $1,490,000 and $1,644,000, respectively, which was based on the closing market price on the grant date. The following is a summary of non-vested RSUs: Number of Shares Weighted Average Grant Date Fair Value Outstanding at March 31, 2018 133,828 $ 28.37 Granted 78,400 $ 19.00 Vested (45,966 ) $ 28.77 Forfeited (1,434 ) $ 28.37 Outstanding at September 30, 2018 164,828 $ 23.80 At September 30, 2018, there was $3,111,000 of unrecognized compensation expense related to these awards, which will be recognized over the remaining vesting period of approximately 2.1 years. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 18 Accumulated Other Comprehensive Income (Loss) The following summarizes changes in accumulated other comprehensive income (loss): Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 Unrealized Gain on Short-Term Investments Foreign Currency Translation Total Unrealized Gain (Loss) on Short-Term Investments Foreign Currency Translation Total Balance at June 30, 2018 and 2017 $ - $ (6,889,000 ) $ (6,889,000 ) $ 584,000 $ (7,740,000 ) $ (7,156,000 ) Other comprehensive income (loss), net of tax - (2,000 ) (2,000 ) 60,000 608,000 668,000 Amounts reclassified from accumulated other comprehensive loss, net of tax - - - - - - Balance at September 30, 2018 and 2017 $ - $ (6,891,000 ) $ (6,891,000 ) $ 644,000 $ (7,132,000 ) $ (6,488,000 ) Six Months Ended September 30, 2018 Six Months Ended September 30, 2017 Unrealized Gain on Short-Term Investments Foreign Currency Translation Total Unrealized Gain on Short-Term Investments Foreign Currency Translation Total Balance at March 31, 2018 and 2017 $ 746,000 $ (6,174,000 ) $ (5,428,000 ) $ 528,000 $ (7,969,000 ) $ (7,441,000 ) Cumulative-effect adjustment [see Note 2] (746,000 ) - (746,000 ) - - - Balance at April 1, 2018 and 2017 $ - $ (6,174,000 ) $ (6,174,000 ) $ 528,000 $ (7,969,000 ) $ (7,441,000 ) Other comprehensive (loss) income, net of tax - (717,000 ) (717,000 ) 116,000 837,000 953,000 Amounts reclassified from accumulated other comprehensive loss, net of tax - - - - - - Balance at September 30, 2018 and 2017 $ - $ (6,891,000 ) $ (6,891,000 ) $ 644,000 $ (7,132,000 ) $ (6,488,000 ) |
Share Repurchase Program
Share Repurchase Program | 6 Months Ended |
Sep. 30, 2018 | |
Share Repurchase Program [Abstract] | |
Share Repurchase Program | 19. Share Repurchase Program As of September 30, 2018, the Company’s board of directors had approved a stock repurchase program of up to $37,000,000 of its common stock. As of September 30, 2018, $15,692,000 of the $37,000,000 had been utilized and $21,308,000 remained available to repurchase shares under the authorized share repurchase program, subject to the limit in the Amended Credit Facility. The Company retired the 675,561 shares repurchased under this program through September 30, 2018. The Company’s share repurchase program does not obligate it to acquire any specific number of shares and shares may be repurchased in privately negotiated and/or open market transactions. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 20. Subsequent Events Acquisition On December 21, 2018, the Company completed the acquisition of Mechanical Power Conversion LLC, a privately held company operating as E&M Power and engaged in the design and manufacture of advanced power emulators (AC and DC) and custom power electronic products, based in Binghamton, New York. The assets and results of operations were not significant to the Company’s consolidated financial position or results of operations, and thus pro forma information is not presented. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Sep. 30, 2018 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended September 30, 2018 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2019. This report should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the fiscal year ended March 31, 2018, which are included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on June 14, 2018. The accompanying consolidated financial statements have been prepared on a consistent basis with, and there have been no material changes to, except as noted below, the accounting policies described in Note 2, Summary of Significant Accounting Policies, to the consolidated financial statements that are presented in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2018. |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 6 Months Ended |
Sep. 30, 2018 | |
New Accounting Pronouncements [Abstract] | |
New Accounting Pronouncements Recently Adopted | New Accounting Pronouncements Recently Adopted Revenue Recognition Effective April 1, 2018, the Company adopted ASC 606 using the full retrospective transition method. Under this method, the Company adjusted its revised consolidated financial statements (see Note 2) for the years ended March 31, 2017 and 2018, and applicable interim periods within the fiscal year ended March 31, 2018, as if ASC 606 had been effective for those periods. Periods prior to the fiscal year ended March 31, 2017 were not adjusted and continue to be reported in accordance with the Company’s historic accounting under Topic 605, Revenue Recognition Financial Instruments In January 2016, the FASB issued guidance that amends the classification and measurement of financial instruments. Changes to the current guidance primarily affect the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, the update clarifies guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. This guidance was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company applied the amendments in the new guidance by means of a cumulative-effect adjustment of $746,000, net of tax, to the opening balance of retained earnings on April 1, 2018. Short-term investments are recorded at fair value with $111,000 and $180,000 of unrealized gain now recorded as a component of general and administrative expense for the three and six months ended September 30, 2018, respectively. Modifications to Share-Based Payment Awards In May 2017, the FASB issued guidance to provide clarity and reduce (i) the diversity in practice and (ii) the cost and complexity when applying the accounting guidance for equity-based compensation to a change to the terms or conditions of a share-based payment award. This update provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. This guidance was effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017 with early adoption permitted. This guidance should be applied prospectively to an award modified on or after that adoption date. The adoption of this guidance on April 1, 2018 did not have any impact on the Company’s consolidated financial statements. Business Combinations In January 2017, the FASB issued guidance which clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The new guidance was effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. . The adoption of this guidance on April 1, 2018 did not have any impact on the Company’s consolidated financial statements. |
New Accounting Pronouncements Not Yet Adopted | New Accounting Pronouncements Not Yet Adopted Leases In February 2016, the FASB issued new guidance that requires balance sheet recognition of a right-of-use asset and lease liability by lessees for operating leases. There have been further amendments, including practical expedients, issued in January 2018 and July 2018. Goodwill Impairment In January 2017, the FASB issued guidance which simplifies the test for goodwill impairment. This standard eliminates Step 2 from the goodwill impairment test, instead requiring an entity to recognize a goodwill impairment charge for the amount by which the goodwill carrying amount exceeds the reporting unit’s fair value. This guidance is effective for interim and annual goodwill impairment tests in fiscal years beginning after December 15, 2019 with early adoption permitted. This guidance must be applied on a prospective basis. Derivatives and Hedging In August 2017, the FASB issued guidance to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. The amendments in this update also make certain targeted improvements to simplify the application of the hedge accounting guidance in current GAAP. The new guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years; the guidance allows for early adoption in any interim period after issuance of the update. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements. Reporting Comprehensive Income In February 2018, the FASB issued guidance that permits, but does not require, companies to reclassify the stranded tax effects of the Tax Reform Act on items within accumulated other comprehensive income to retained earnings. This guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements. Fair Value Measurements In August 2018, the FASB issued guidance , which changes the disclosure requirements for fair value measurements by removing, adding and modifying certain disclosures. The standard is effective for financial statements issued for fiscal years beginning after December 15, 2019. Early adoption is permitted. |
Impact on Previously Issued F_2
Impact on Previously Issued Financial Statements for the Correction of an Error (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Impact on Previously Issued Financial Statements for the Correction of an Error [Abstract] | |
Effect of Corrections on Consolidated Statements | The effect of the above corrections on the consolidated statement of operations for the fiscal year ended March 31, 2018 is as follows: Year Ended March 31, 2018 Revised Consolidated Statement of Operations Amounts: As Previously Reported Adjustment As Revised Net sales $ 428,072,000 $ (1,081,000 ) $ 426,991,000 Cost of goods sold 322,199,000 (1,750,000 ) 320,449,000 Gross profit 105,873,000 669,000 106,542,000 Operating expenses: General and administrative 35,527,000 (50,000 ) 35,477,000 Sales and marketing 15,030,000 - 15,030,000 Research and development 5,692,000 - 5,692,000 Total operating expenses 56,249,000 (50,000 ) 56,199,000 Operating income 49,624,000 719,000 50,343,000 Interest expense, net 15,445,000 - 15,445,000 Income before income tax expense (benefit) 34,179,000 719,000 34,898,000 Income tax expense (benefit) 17,863,000 (1,791,000 ) 16,072,000 Net income $ 16,316,000 $ 2,510,000 $ 18,826,000 Basic net income per share $ 0.87 $ 0.13 $ 1.00 Diluted net income per share $ 0.84 $ 0.13 $ 0.96 The effect of the above corrections on the consolidated statement of operations for the fiscal year ended March 31, 2017 is as follows: Year Ended March 31, 2017 Revised Consolidated Statement of Operations Amounts: As Previously Reported Adjustment As Revised Net sales $ 421,253,000 $ 1,629,000 $ 422,882,000 Cost of goods sold 306,207,000 (281,000 ) 305,926,000 Gross profit 115,046,000 1,910,000 116,956,000 Operating expenses: General and administrative 31,124,000 1,000 31,125,000 Sales and marketing 12,126,000 - 12,126,000 Research and development 3,824,000 - 3,824,000 Total operating expenses 47,074,000 1,000 47,075,000 Operating income 67,972,000 1,909,000 69,881,000 Interest expense, net 13,094,000 - 13,094,000 Income before income tax expense 54,878,000 1,909,000 56,787,000 Income tax expense 17,305,000 706,000 18,011,000 Net income $ 37,573,000 $ 1,203,000 $ 38,776,000 Basic net income per share $ 2.02 $ 0.06 $ 2.08 Diluted net income per share $ 1.93 $ 0.06 $ 2.00 The effect of the above corrections on the consolidated statement of operations for the fiscal year ended March 31, 2016 is as follows: Year Ended March 31, 2016 Revised Consolidated Statement of Operations Amounts: As Previously Reported Adjustment As Revised Net sales $ 368,970,000 $ 700,000 $ 369,670,000 Cost of goods sold 268,046,000 402,000 268,448,000 Gross profit 100,924,000 298,000 101,222,000 Operating expenses: General and administrative 49,665,000 298,000 49,963,000 Sales and marketing 9,965,000 - 9,965,000 Research and development 3,008,000 - 3,008,000 Total operating expenses 62,638,000 298,000 62,936,000 Operating income 38,286,000 - 38,286,000 Interest expense, net 16,244,000 - 16,244,000 Income before income tax expense 22,042,000 - 22,042,000 Income tax expense 11,479,000 294,000 11,773,000 Net income $ 10,563,000 $ (294,000 ) $ 10,269,000 Basic net income per share $ 0.58 $ (0.02 ) $ 0.56 Diluted net income per share $ 0.55 $ (0.02 ) $ 0.54 The effect of the above corrections on the consolidated statement of comprehensive income for the fiscal year ended March 31, 2018 is as follows: Year Ended March 31, 2018 Revised Consolidated Statement of Comprehensive Income Amounts: As Previously Reported Adjustment As Revised Net income $ 16,316,000 $ 2,510,000 $ 18,826,000 Comprehensive income $ 18,329,000 $ 2,510,000 $ 20,839,000 The effect of the above corrections on the consolidated statement of comprehensive income for the fiscal year ended March 31, 2017 is as follows: Year Ended March 31, 2017 Revised Consolidated Statement of Comprehensive Income Amounts: As Previously Reported Adjustment As Revised Net income $ 37,573,000 $ 1,203,000 $ 38,776,000 Comprehensive income $ 34,984,000 $ 1,203,000 $ 36,187,000 The effect of the above corrections on the consolidated statement of comprehensive income for the fiscal year ended March 31, 2016 is as follows: Year Ended March 31, 2016 Revised Consolidated Statement of Comprehensive Income Amounts: As Previously Reported Adjustment As Revised Net income $ 10,563,000 $ (294,000 ) $ 10,269,000 Comprehensive income $ 8,229,000 $ (294,000 ) $ 7,935,000 The effect of the above corrections on the consolidated balance sheet at March 31, 2018 is as follows: March 31, 2018 Revised Consolidated Balance Sheet Amounts: As Previously Reported Adjustment As Revised ASSETS Income tax receivable $ 7,796,000 $ 176,000 $ 7,972,000 Prepaid expenses and other current assets 11,491,000 3,613,000 15,104,000 Long-term core inventory — net 301,656,000 (3,362,000 ) 298,294,000 Long-term deferred income taxes 10,556,000 (3,619,000 ) 6,937,000 Other assets 7,392,000 14,603,000 21,995,000 TOTAL ASSETS $ 494,497,000 $ 11,411,000 $ 505,908,000 LIABILITIES AND SHAREHOLDERS’ EQUITY Accrued liabilities $ 11,799,000 $ 249,000 $ 12,048,000 TOTAL LIABILITIES $ 219,521,000 $ 249,000 $ 219,770,000 Retained earnings $ 66,606,000 $ 11,162,000 $ 77,768,000 TOTAL SHAREHOLDERS’ EQUITY $ 274,976,000 $ 11,162,000 $ 286,138,000 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 494,497,000 $ 11,411,000 $ 505,908,000 The effect of the above corrections on the consolidated balance sheet at March 31, 2017 is as follows: March 31, 2017 Revised Consolidated Balance Sheet Amounts: As Previously Reported Adjustment As Revised ASSETS Prepaid expenses and other current assets $ 9,848,000 $ 3,240,000 $ 13,088,000 Long-term core inventory — net 262,922,000 (4,501,000 ) 258,421,000 Long-term deferred income taxes 13,546,000 (5,179,000 ) 8,367,000 Other assets 6,990,000 15,391,000 22,381,000 TOTAL ASSETS $ 436,139,000 $ 8,951,000 $ 445,090,000 LIABILITIES AND SHAREHOLDERS’ EQUITY Accrued liabilities $ 10,077,000 $ 299,000 $ 10,376,000 TOTAL LIABILITIES $ 187,458,000 $ 299,000 $ 187,757,000 Retained earnings $ 50,290,000 $ 8,652,000 $ 58,942,000 TOTAL SHAREHOLDERS’ EQUITY $ 248,681,000 $ 8,652,000 $ 257,333,000 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 436,139,000 $ 8,951,000 $ 445,090,000 The effect of the above corrections on the consolidated statement of shareholders’ equity for the fiscal year ended March 31, 2018 is as follows: Year Ended March 31, 2018 Revised Consolidated Statement of Shareholders’ Equity Amounts: As Previously Reported Adjustment As Revised Retained earnings at March 31, 2017 $ 50,290,000 $ 8,652,000 $ 58,942,000 Net income 16,316,000 2,510,000 18,826,000 Retained earnings at March 31, 2018 $ 66,606,000 $ 11,162,000 $ 77,768,000 The effect of the above corrections on the consolidated statement of shareholders’ equity for the fiscal year ended March 31, 2017 is as follows: Year Ended March 31, 2017 Revised Consolidated Statement of Shareholders’ Equity Amounts: As Previously Reported Adjustment As Revised Retained earnings at March 31, 2016 $ 11,825,000 $ 7,449,000 $ 19,274,000 Cumulative effect adjustment 892,000 - 892,000 Net income 37,573,000 1,203,000 38,776,000 Retained earnings at March 31, 2017 $ 50,290,000 $ 8,652,000 $ 58,942,000 The effect of the above corrections on the consolidated statement of shareholders’ equity for the fiscal year ended March 31, 2016 is as follows: Year Ended March 31, 2016 Revised Consolidated Statement of Shareholders’ Equity Amounts: As Previously Reported Adjustment As Revised Retained earnings at March 31, 2015 $ 1,262,000 $ - $ 1,262,000 Cumulative effect adjustment of error corrections - 7,743,000 7,743,000 Net income (loss) 10,563,000 (294,000 ) 10,269,000 Retained earnings at March 31, 2016 $ 11,825,000 $ 7,449,000 $ 19,274,000 The effect of the above corrections on the consolidated statement of cash flows for the fiscal year ended March 31, 2018 is as follows: Year Ended March 31, 2018 Revised Consolidated Statement of Cash Flow from Operating Activities Amounts: As Previously Reported Adjustment As Revised Net income $ 16,316,000 $ 2,510,000 $ 18,826,000 Deferred income taxes 3,055,000 (1,560,000 ) 1,495,000 Income tax receivable (6,081,000 ) (231,000 ) (6,312,000 ) Prepaid expenses and other current assets (2,507,000 ) (318,000 ) (2,825,000 ) Other assets (384,000 ) 788,000 404,000 Accounts payable and accrued liabilities (11,621,000 ) (50,000 ) (11,671,000 ) Long-term core inventory (45,839,000 ) (1,139,000 ) (46,978,000 ) Net cash used in operating activities $ (13,944,000 ) $ - $ (13,944,000 ) The effect of the above corrections on the consolidated statement of cash flows for the fiscal year ended March 31, 2017 is as follows: Year Ended March 31, 2017 Revised Consolidated Statement of Cash Flow from Operating Activities Amounts: As Previously Reported Adjustment As Revised Net income $ 37,573,000 $ 1,203,000 $ 38,776,000 Deferred income taxes 6,510,000 355,000 6,865,000 Prepaid expenses and other current assets (4,333,000 ) (549,000 ) (4,882,000 ) Other assets (3,339,000 ) (1,025,000 ) (4,364,000 ) Accounts payable and accrued liabilities 12,446,000 1,000 12,447,000 Long-term core inventory (24,964,000 ) (281,000 ) (25,245,000 ) Other liabilities (1,344,000 ) 296,000 (1,048,000 ) Net cash used in operating activities $ (5,269,000 ) $ - $ (5,269,000 ) The effect of the above corrections on the consolidated statement of cash flows for the fiscal year ended March 31, 2016 is as follows Year Ended March 31, 2016 Revised Consolidated Statement of Cash Flow from Operating Activities Amounts: As Previously Reported Adjustment As Revised Net income $ 10,563,000 $ (294,000 ) $ 10,269,000 Deferred income taxes (3,781,000 ) 590,000 (3,191,000 ) Prepaid expenses and other current assets 2,765,000 618,000 3,383,000 Other assets (477,000 ) (1,318,000 ) (1,795,000 ) Accounts payable and accrued liabilities 6,620,000 298,000 6,918,000 Long-term core inventory (53,408,000 ) 402,000 (53,006,000 ) Other liabilities 1,673,000 (296,000 ) 1,377,000 Net cash used in operating activities $ 15,334,000 $ - $ 15,334,000 The effect of the above corrections on the consolidated statement of operations for the three months ended June 30, 2017 is as follows: Three Months Ended June 30, 2017 Revised Consolidated Statement of Operations Amounts: As Previously Reported Adjustment As Revised Net sales $ 95,063,000 $ (824,000 ) $ 94,239,000 Cost of goods sold 69,224,000 - 69,224,000 Gross profit 25,839,000 (824,000 ) 25,015,000 Operating expenses: General and administrative 6,187,000 (299,000 ) 5,888,000 Sales and marketing 3,394,000 - 3,394,000 Research and development 1,002,000 - 1,002,000 Total operating expenses 10,583,000 (299,000 ) 10,284,000 Operating income 15,256,000 (525,000 ) 14,731,000 Interest expense, net 3,314,000 - 3,314,000 Income (loss) before income tax expense (benefit) 11,942,000 (525,000 ) 11,417,000 Income tax expense (benefit) 4,316,000 (194,000 ) 4,122,000 Net income (loss) $ 7,626,000 $ (331,000 ) $ 7,295,000 Basic net income (loss) per share $ 0.41 $ (0.02 ) $ 0.39 Diluted net income (loss) per share $ 0.39 $ (0.02 ) $ 0.38 The effect of the above corrections on the consolidated statement of operations for the three and six months ended September 30, 2017 is as follows: Three Months Ended September 30, 2017 Six Months Ended September 30, 2017 Revised Consolidated Statement of Operations Amounts: As Previously Reported Adjustment As Revised As Previously Reported Adjustment As Revised Net sales $ 111,774,000 $ (921,000 ) $ 110,853,000 $ 206,837,000 $ (1,745,000 ) $ 205,092,000 Cost of goods sold 84,612,000 - 84,612,000 153,836,000 - 153,836,000 Gross profit 27,162,000 (921,000 ) 26,241,000 53,001,000 (1,745,000 ) 51,256,000 Operating expenses: General and administrative 8,615,000 - 8,615,000 14,802,000 (299,000 ) 14,503,000 Sales and marketing 3,457,000 - 3,457,000 6,851,000 - 6,851,000 Research and development 1,240,000 - 1,240,000 2,242,000 - 2,242,000 Total operating expenses 13,312,000 - 13,312,000 23,895,000 (299,000 ) 23,596,000 Operating income (loss) 13,850,000 (921,000 ) 12,929,000 29,106,000 (1,446,000 ) 27,660,000 Interest expense, net 3,522,000 - 3,522,000 6,836,000 - 6,836,000 Income (loss) before income tax expense (benefit) 10,328,000 (921,000 ) 9,407,000 22,270,000 (1,446,000 ) 20,824,000 Income tax expense (benefit) 4,027,000 (343,000 ) 3,684,000 8,343,000 (537,000 ) 7,806,000 Net income (loss) $ 6,301,000 $ (578,000 ) $ 5,723,000 $ 13,927,000 $ (909,000 ) $ 13,018,000 Basic net income (loss) per share $ 0.34 $ (0.03 ) $ 0.31 $ 0.75 $ (0.05 ) $ 0.70 Diluted net income (loss) per share $ 0.33 $ (0.03 ) $ 0.30 $ 0.72 $ (0.05 ) $ 0.67 The effect of the above corrections on the consolidated statement of operations for the three and nine months ended December 31, 2017 is as follows: Three Months Ended December 31, 2017 Nine Months Ended December 31, 2017 Revised Consolidated Statement of Operations Amounts: As Previously Reported Adjustment As Revised As Previously Reported Adjustment As Revised Net sales $ 100,127,000 $ 1,586,000 $ 101,713,000 $ 306,964,000 $ (159,000 ) $ 306,805,000 Cost of goods sold 77,583,000 (1,750,000 ) 75,833,000 231,419,000 (1,750,000 ) 229,669,000 Gross profit 22,544,000 3,336,000 25,880,000 75,545,000 1,591,000 77,136,000 Operating expenses: General and administrative 11,915,000 - 11,915,000 26,717,000 (299,000 ) 26,418,000 Sales and marketing 4,048,000 - 4,048,000 10,899,000 - 10,899,000 Research and development 1,678,000 - 1,678,000 3,920,000 - 3,920,000 Total operating expenses 17,641,000 - 17,641,000 41,536,000 (299,000 ) 41,237,000 Operating income 4,903,000 3,336,000 8,239,000 34,009,000 1,890,000 35,899,000 Interest expense, net 3,953,000 - 3,953,000 10,789,000 - 10,789,000 Income before income tax expense (benefit) 950,000 3,336,000 4,286,000 23,220,000 1,890,000 25,110,000 Income tax expense (benefit) 7,756,000 (820,000 ) 6,936,000 16,099,000 (1,357,000 ) 14,742,000 Net (loss) income $ (6,806,000 ) $ 4,156,000 $ (2,650,000 ) $ 7,121,000 $ 3,247,000 $ 10,368,000 Basic net (loss) income per share $ (0.36 ) $ 0.22 $ (0.14 ) $ 0.38 $ 0.17 $ 0.55 Diluted net (loss) income per share $ (0.36 ) $ 0.22 $ (0.14 ) $ 0.37 $ 0.17 $ 0.53 The effect of the above corrections on the consolidated statement of comprehensive income (loss) for the three months ended June 30, 2017 is as follows Three Months Ended June 30, 2017 Revised Consolidated Statement of Comprehensive Income (Loss) Amounts: As Previously Reported Adjustment As Revised Net income (loss) $ 7,626,000 $ (331,000 ) $ 7,295,000 Comprehensive income (loss) $ 7,911,000 $ (331,000 ) $ 7,580,000 The effect of the above corrections on the consolidated statement of comprehensive income (loss) for the three and six months ended September 30, 2017 is as follows: Three Months Ended September 30, 2017 Six Months Ended September 30, 2017 Revised Consolidated Statement of Comprehensive Income (Loss) Amounts: As Previously Reported Adjustment As Revised As Previously Reported Adjustment As Revised Net income (loss) $ 6,301,000 $ (578,000 ) $ 5,723,000 $ 13,927,000 $ (909,000 ) $ 13,018,000 Comprehensive income (loss) $ 6,969,000 $ (578,000 ) $ 6,391,000 $ 14,880,000 $ (909,000 ) $ 13,971,000 The effect of the above corrections on the consolidated statement of comprehensive (loss) income for the three and nine months ended December 31, 2017 is as follows: Three Months Ended December 31, 2017 Nine Months Ended December 31, 2017 Revised Consolidated Statement of Comprehensive (Loss) Income Amounts: As Previously Reported Adjustment As Revised As Previously Reported Adjustment As Revised Net (loss) income $ (6,806,000 ) $ 4,156,000 $ (2,650,000 ) $ 7,121,000 $ 3,247,000 $ 10,368,000 Comprehensive (loss) income $ (6,476,000 ) $ 4,156,000 $ (2,320,000 ) $ 8,404,000 $ 3,247,000 $ 11,651,000 The effect of the above corrections on the consolidated statement of cash flows for the three months ended June 30, 2017 Three Months Ended June 30, 2017 Revised Consolidated Statement of Cash Flow from Operating Activities Amounts: As Previously Reported Adjustment As Revised Net income (loss) $ 7,626,000 $ (331,000 ) $ 7,295,000 Prepaid expenses and other current assets 421,000 (55,000 ) 366,000 Other assets 608,000 824,000 1,432,000 Accounts payable and accrued liabilities (5,254,000 ) (299,000 ) (5,553,000 ) Other liabilities 2,324,000 (139,000 ) 2,185,000 Net cash used in operating activities $ (644,000 ) $ - $ (644,000 ) The effect of the above corrections on the consolidated statement of cash flows for the six months ended September 30, 2017 is as follows: Six Months Ended September 30, 2017 Revised Consolidated Statement of Cash Flow from Operating Activities Amounts: As Previously Reported Adjustment As Revised Net income (loss) $ 13,927,000 $ (909,000 ) $ 13,018,000 Prepaid expenses and other current assets (6,093,000 ) (537,000 ) (6,630,000 ) Other assets 1,198,000 1,745,000 2,943,000 Accounts payable and accrued liabilities (3,465,000 ) (299,000 ) (3,764,000 ) Net cash used in operating activities $ (8,148,000 ) $ - $ (8,148,000 ) The effect of the above corrections on the consolidated statement of cash flows for the nine months ended December 31, Nine Months Ended December 31, 2017 Revised Consolidated Statement of Cash Flow from Operating Activities Amounts: As Previously Reported Adjustment As Revised Net income $ 7,121,000 $ 3,247,000 $ 10,368,000 Deferred income taxes (909,000 ) (1,805,000 ) (2,714,000 ) Prepaid expenses and other current assets (2,093,000 ) 448,000 (1,645,000 ) Other assets 289,000 (452,000 ) (163,000 ) Accounts payable and accrued liabilities (15,647,000 ) (299,000 ) (15,946,000 ) Long-term core inventory (37,222,000 ) (1,139,000 ) (38,361,000 ) Net cash used in operating activities $ (9,803,000 ) $ - $ (9,803,000 ) The effect of the above corrections on the consolidated statement of operations for the three months ended June 30, 2018 is as follows: Three Months Ended June 30, 2018 Revised Consolidated Statement of Operations Amounts: As Previously Reported Adjustment As Revised Net sales $ 92,565,000 $ (897,000 ) $ 91,668,000 Cost of goods sold 75,314,000 2,000 75,316,000 Gross profit 17,251,000 (899,000 ) 16,352,000 Operating expenses: General and administrative 12,340,000 (249,000 ) 12,091,000 Sales and marketing 4,392,000 - 4,392,000 Research and development 1,736,000 - 1,736,000 Total operating expenses 18,468,000 (249,000 ) 18,219,000 Operating loss (1,217,000 ) (650,000 ) (1,867,000 ) Interest expense, net 5,075,000 - 5,075,000 Loss before income tax benefit (6,292,000 ) (650,000 ) (6,942,000 ) Income tax benefit (1,278,000 ) (169,000 ) (1,447,000 ) Net loss $ (5,014,000 ) $ (481,000 ) $ (5,495,000 ) Basic net loss per share $ (0.27 ) $ (0.03 ) $ (0.29 ) Diluted net loss per share $ (0.27 ) $ (0.03 ) $ (0.29 ) The effect of the above corrections on the consolidated statement of comprehensive loss for the three months ended June 30, 2018 is as follows: Three Months Ended June 30, 2018 Revised Consolidated Statement of Comprehensive Loss Amounts: As Previously Reported Adjustment As Revised Net loss $ (5,014,000 ) $ (481,000 ) $ (5,495,000 ) Comprehensive loss $ (5,729,000 ) $ (481,000 ) $ (6,210,000 ) The effect of the above corrections on the consolidated balance sheet at June 30, 2018 is as follows: June 30, 2018 Restated Consolidated Balance Sheet Amounts: As Previously Reported Adjustment As Revised ASSETS Contract assets $ 16,542,000 $ 7,774,000 $ 24,316,000 Income tax receivable 9,416,000 345,000 9,761,000 Prepaid expenses and other current assets 13,148,000 (2,893,000 ) 10,255,000 Long-term deferred income taxes 10,343,000 (3,619,000 ) 6,724,000 Long-term contract assets 207,792,000 14,670,000 222,462,000 Other assets 6,406,000 (5,596,000 ) 810,000 TOTAL ASSETS $ 549,253,000 $ 10,681,000 $ 559,934,000 LIABILITIES AND SHAREHOLDERS’ EQUITY Retained earnings $ 63,080,000 $ 10,681,000 $ 73,761,000 TOTAL SHAREHOLDERS’ EQUITY $ 270,738,000 $ 10,681,000 $ 281,419,000 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 549,253,000 $ 10,681,000 $ 559,934,000 The effect of the above corrections on the consolidated statement of cash flows for the three months ended June 30, 2018 is as follows: Three Months Ended June 30, 2018 Revised Consolidated Statement of Cash Flow from Operating Activities Amounts: As Previously Reported Adjustment As Revised Net loss $ (5,014,000 ) $ (481,000 ) $ (5,495,000 ) Income tax receivable (1,622,000 ) (169,000 ) (1,791,000 ) Prepaid expenses and other current assets (697,000 ) 10,000 (687,000 ) Other assets 941,000 (992,000 ) (51,000 ) Accounts payable and accrued liabilities 11,117,000 (249,000 ) 10,868,000 Contract assets, net (2,722,000 ) 1,881,000 (841,000 ) Net cash used in operating activities $ (924,000 ) $ - $ (924,000 ) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Revenue Recognition [Abstract] | |
Impact of New Revenue Recognition Standard on Revised Financial Statements | The adoption of the new revenue recognition standard impacted the revised consolidated statement of operations for the three months ended June 30, 2017 as follows: Three Months Ended June 30, 2017 As Revised Adoption of ASC 606 As Adjusted Net sales $ 94,239,000 $ 456,000 $ 94,695,000 Cost of goods sold 69,224,000 (381,000 ) 68,843,000 Gross profit 25,015,000 837,000 25,852,000 Operating expenses: General and administrative 5,888,000 - 5,888,000 Sales and marketing 3,394,000 - 3,394,000 Research and development 1,002,000 - 1,002,000 Total operating expenses 10,284,000 - 10,284,000 Operating income 14,731,000 837,000 15,568,000 Interest expense, net 3,314,000 - 3,314,000 Income before income tax expense 11,417,000 837,000 12,254,000 Income tax expense 4,122,000 312,000 4,434,000 Net income $ 7,295,000 $ 525,000 $ 7,820,000 Basic net income per share $ 0.39 $ 0.03 $ 0.42 Diluted net income per share $ 0.38 $ 0.03 $ 0.40 The adoption of the new revenue recognition standard impacted the revised consolidated statements of operations for the three and six months ended September 30, 2017 as follows: Three Months Ended September 30, 2017 Six Months Ended September 30, 2017 As Revised Adoption of ASC 606 As Adjusted As Revised Adoption of ASC 606 As Adjusted Net sales $ 110,853,000 $ (592,000 ) $ 110,261,000 $ 205,092,000 $ (136,000 ) $ 204,956,000 Cost of goods sold 84,612,000 (378,000 ) 84,234,000 153,836,000 (759,000 ) 153,077,000 Gross profit 26,241,000 (214,000 ) 26,027,000 51,256,000 623,000 51,879,000 Operating expenses: General and administrative 8,615,000 - 8,615,000 14,503,000 - 14,503,000 Sales and marketing 3,457,000 - 3,457,000 6,851,000 - 6,851,000 Research and development 1,240,000 - 1,240,000 2,242,000 - 2,242,000 Total operating expenses 13,312,000 - 13,312,000 23,596,000 - 23,596,000 Operating income (loss) 12,929,000 (214,000 ) 12,715,000 27,660,000 623,000 28,283,000 Interest expense, net 3,522,000 - 3,522,000 6,836,000 - 6,836,000 Income (loss) before income tax expense (benefit) 9,407,000 (214,000 ) 9,193,000 20,824,000 623,000 21,447,000 Income tax expense (benefit) 3,684,000 (86,000 ) 3,598,000 7,806,000 226,000 8,032,000 Net income (loss) $ 5,723,000 $ (128,000 ) $ 5,595,000 $ 13,018,000 $ 397,000 $ 13,415,000 Basic net income (loss) per share $ 0.31 $ (0.01 ) $ 0.30 $ 0.70 $ 0.02 $ 0.72 Diluted net income (loss) per share $ 0.30 $ (0.01 ) $ 0.29 $ 0.67 $ 0.02 $ 0.69 The adoption of the new revenue recognition standard impacted the revised consolidated balance sheet at March 31, 2018 as follows: March 31, 2018 As Revised Adoption of ASC 606 As Adjusted ASSETS Current assets: Cash and cash equivalents $ 13,049,000 $ - $ 13,049,000 Short-term investments 2,828,000 - 2,828,000 Accounts receivable — net 15,738,000 47,436,000 63,174,000 Inventory— net 76,275,000 84,935,000 161,210,000 Inventory unreturned 7,508,000 - 7,508,000 Contract assets - 23,206,000 23,206,000 Income tax receivable 7,972,000 - 7,972,000 Prepaid expenses and other current assets 15,104,000 (6,496,000 ) 8,608,000 Total current assets 138,474,000 149,081,000 287,555,000 Plant and equipment — net 28,322,000 - 28,322,000 Long-term core inventory — net 298,294,000 (298,294,000 ) - Long-term core inventory deposits 5,569,000 (5,569,000 ) - Long-term deferred income taxes 6,937,000 (239,000 ) 6,698,000 Long-term contract assets - 222,731,000 222,731,000 Goodwill 2,551,000 - 2,551,000 Intangible assets — net 3,766,000 - 3,766,000 Other assets 21,995,000 (21,191,000 ) 804,000 TOTAL ASSETS $ 505,908,000 $ 46,519,000 $ 552,427,000 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 73,273,000 $ - $ 73,273,000 Accrued liabilities 12,048,000 - 12,048,000 Customer finished goods returns accrual 17,805,000 - 17,805,000 Accrued core payment 16,536,000 (16,536,000 ) - Contract liabilities - 32,603,000 32,603,000 Revolving loan 54,000,000 - 54,000,000 Other current liabilities 4,471,000 - 4,471,000 Current portion of term loan 3,068,000 - 3,068,000 Total current liabilities 181,201,000 16,067,000 197,268,000 Term loan, less current portion 13,913,000 - 13,913,000 Long-term accrued core payment 18,473,000 (18,473,000 ) - Long-term deferred income taxes 226,000 - 226,000 Long-term contract liabilities - 48,183,000 48,183,000 Other liabilities 5,957,000 - 5,957,000 Total liabilities 219,770,000 45,777,000 265,547,000 Commitments and contingencies Shareholders’ equity: Preferred stock; par value $.01 per share, 5,000,000 shares authorized; none issued - - - Series A junior participating preferred stock; par value $.01 per share, 20,000 shares authorized; none issued - - - Common stock; par value $.01 per share, 50,000,000 shares authorized; 18,893,102 shares issued and outstanding at March 31, 2018 189,000 - 189,000 Additional paid-in capital 213,609,000 - 213,609,000 Retained earnings 77,768,000 742,000 78,510,000 Accumulated other comprehensive loss (5,428,000 ) - (5,428,000 ) Total shareholders’ equity 286,138,000 742,000 286,880,000 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 505,908,000 $ 46,519,000 $ 552,427,000 The adoption of the new revenue recognition standard impacted the revised statement of cash flows for the three months ended June 30, 2017 as follows: Three Months Ended June 30, 2017 Cash flows from operating activities: As Revised Adoption of ASC 606 As Adjusted Net income $ 7,295,000 $ 525,000 $ 7,820,000 Deferred income taxes (103,000 ) 312,000 209,000 Accounts receivable 16,038,000 (6,705,000 ) 9,333,000 Inventory (14,942,000 ) (3,552,000 ) (18,494,000 ) Other assets 1,432,000 (1,433,000 ) (1,000 ) Long-term core inventory (2,878,000 ) 2,878,000 - Contract assets, net - 1,726,000 1,726,000 Contract liabilities, net - 3,172,000 3,172,000 Accrued core payments (3,077,000 ) 3,077,000 - Net cash used in operating activities (644,000 ) - (644,000 ) The adoption of the new revenue recognition standard impacted the revised statement of cash flows for the six months ended September 30, 2017 as follows: Six Months Ended September 30, 2017 Cash flows from operating activities: As Revised Adoption of ASC 606 As Adjusted Net income $ 13,018,000 $ 397,000 $ 13,415,000 Deferred income taxes (433,000 ) 226,000 (207,000 ) Accounts receivable 14,683,000 (11,864,000 ) 2,819,000 Inventory (18,718,000 ) (9,834,000 ) (28,552,000 ) Other assets 2,943,000 (2,963,000 ) (20,000 ) Long-term core inventory (5,155,000 ) 5,155,000 - Contract assets, net - 6,882,000 6,882,000 Contract liabilities, net - 5,837,000 5,837,000 Accrued core payments (6,164,000 ) 6,164,000 - Net cash used in operating activities $ (8,148,000 ) $ - $ (8,148,000 ) |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets [Abstract] | |
Change in Goodwill | The following summarizes the changes in the Company’s goodwill: Six Months Ended September 30, 2018 2017 Balance at beginning of period $ 2,551,000 $ 2,551,000 Goodwill acquired - - Translation adjustment - - Impairment - - Balance at end of period $ 2,551,000 $ 2,551,000 |
Intangible Assets Subject to Amortization | The following is a summary of acquired intangible assets subject to amortization: September 30, 2018 March 31, 2018 Weighted Average Amortization Period Gross Carrying Value Accumulated Amortization Gross Carrying Value Accumulated Intangible assets subject to amortization Trademarks 9 years $ 885,000 $ 392,000 $ 885,000 $ 316,000 Customer relationships 13 years 5,900,000 3,195,000 5,900,000 2,937,000 Developed technology 3 years 299,000 117,000 301,000 67,000 Total $ 7,084,000 $ 3,704,000 $ 7,086,000 $ 3,320,000 |
Amortization Expense for Acquired Intangible Assets | Amortization expense for acquired intangible assets is as follows: Three Months Ended September 30, Six Months Ended September 30, 2018 2017 2018 2017 Amortization expense $ 192,000 $ 180,000 $ 384,000 $ 325,000 |
Estimated Future Amortization Expense for Intangible Assets | The estimated future amortization expense for acquired intangible assets is as follows: Year Ending March 31, 2019 - remaining six months $ 385,000 2020 710,000 2021 613,000 2022 580,000 2023 580,000 Thereafter 512,000 Total $ 3,380,000 |
Accounts Receivable - Net (Tabl
Accounts Receivable - Net (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Accounts Receivable - Net [Abstract] | |
Impact of Adoption of New Revenue Recognition Standard on Accounts Receivable | The adoption of the new revenue recognition standard (see Note 4) impacted the previously reported accounts receivable—net, at March 31, 2018 as follows: March 31, 2018 As Previously Reported Adoption of ASC 606 As Adjusted Accounts receivable — trade $ 83,700,000 $ - $ 83,700,000 Allowance for bad debts (4,142,000 ) - (4,142,000 ) Customer allowances earned (11,370,000 ) 11,370,000 (1 ) - Customer payment discrepancies (1,110,000 ) - (1,110,000 ) Customer returns RGA issued (15,274,000 ) - (15,274,000 ) Customer core returns accruals (36,066,000 ) 36,066,000 (2 ) - Less: total accounts receivable offset accounts (67,962,000 ) 47,436,000 (20,526,000 ) Total accounts receivable — net $ 15,738,000 $ 47,436,000 $ 63,174,000 (1) Customer allowances earned have been reclassified to contract liabilities in the consolidated balance sheet at March 31, 2018. (2) Customer core returns accruals of $4,697,000 have been reclassified to contract liabilities and customer core returns accruals of $31,369,000 have been reclassified to long-term contract liabilities in the consolidated balance sheet at March 31, 2018. |
Accounts Receivable | Accounts receivable — net is comprised of the following: September 30, 2018 March 31, 2018 Accounts receivable — trade $ 77,686,000 $ 83,700,000 Allowance for bad debts (4,348,000 ) (4,142,000 ) Customer payment discrepancies (827,000 ) (1,110,000 ) Customer returns RGA issued (16,426,000 ) (15,274,000 ) Less: total accounts receivable offset accounts (21,601,000 ) (20,526,000 ) Total accounts receivable — net $ 56,085,000 $ 63,174,000 |
Change in Warranty Return Accrual | The following summarizes the changes in the Company’s warranty return accrual: Three Months Ended September 30, Six Months Ended September 30, 2018 2017 2018 2017 Balance at beginning of period $ 14,543,000 $ 12,849,000 $ 16,646,000 $ 14,286,000 Charged to expense/additions 30,860,000 29,359,000 54,753,000 51,565,000 Amounts processed (28,993,000 ) (27,409,000 ) (54,989,000 ) (51,052,000 ) Balance at end of period $ 16,410,000 $ 14,799,000 $ 16,410,000 $ 14,799,000 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Inventory [Abstract] | |
Impact of Adoption of New Revenue Recognition Standard on Inventory | The adoption of the new revenue recognition standard (see Note 4) impacted the revised inventory at March 31, 2018 as follows: March 31, 2018 Adoption of As Revised ASC 606 As Adjusted Inventory Raw materials $ 25,805,000 $ 51,330,000 (1 ) $ 77,135,000 Work-in-process 635,000 1,948,000 (1 ) 2,583,000 Finished goods 53,973,000 34,201,000 (2 ) 88,174,000 80,413,000 87,479,000 167,892,000 Less allowance for excess and obsolete inventory (4,138,000 ) (2,544,000 ) (3 ) (6,682,000 ) Total $ 76,275,000 $ 84,935,000 $ 161,210,000 Inventory unreturned $ 7,508,000 $ - $ 7,508,000 Long-term core inventory Used cores held at the Company’s facilities $ 53,278,000 $ (53,278,000 ) (1 ) $ - Used cores expected to be returned by customers 12,970,000 (12,970,000 ) (4 ) - Remanufactured cores held in finished goods 34,201,000 (34,201,000 ) (2 ) - Remanufactured cores held at customers’ locations 200,389,000 (200,389,000 ) (5 ) - 300,838,000 (300,838,000 ) - Less allowance for excess and obsolete inventory (2,544,000 ) 2,544,000 (3 ) - Total $ 298,294,000 $ (298,294,000 ) $ - Long-term core inventory deposits $ 5,569,000 $ (5,569,000 ) (6 ) $ - (1) Used cores held at the Company’s facilities of $53,278,000 have been reclassified to raw materials and work-in-process in the consolidated balance sheet at March 31, 2018. (2) Remanufactured Cores held in finished goods of $34,201,000 have been reclassified to finished goods in the consolidated balance sheet at March 31, 2018. (3) The allowance for excess and obsolete inventory related to Used cores held at the Company’s facilities of $2,544,000, which was previously included in long-term core inventory, has been reclassified to inventory—net in the consolidated balance sheet at March 31, 2018. (4) Used cores expected to be returned by customers of $12,970,000 have been reclassified to contract assets in the consolidated balance sheet at March 31, 2018. (5) Remanufactured cores held at customers’ locations of $200,389,000 have been reclassified to current and long-term contract assets in the consolidated balance sheet at March 31, 2018. (6) Long-term core inventory deposits of $5,569,000 have been reclassified to long-term contract assets in the consolidated balance sheet at March 31, 2018. |
Inventory Net | Inventory–net is comprised of the following: September 30, 2018 March 31, 2018 Inventory - net Raw materials $ 89,919,000 $ 77,135,000 Work-in-process 3,811,000 2,583,000 Finished goods 104,584,000 88,174,000 198,314,000 167,892,000 Less allowance for excess and obsolete inventory (10,027,000 ) (6,682,000 ) Total inventory - net $ 188,287,000 $ 161,210,000 Inventory unreturned $ 9,100,000 $ 7,508,000 |
Contract Assets (Tables)
Contract Assets (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Contract Assets [Abstract] | |
Contract Assets | Contract assets (see Note 4) are comprised of the following: September 30, 2018 March 31, 2018 Short-term contract assets (As Adjusted) Cores expected to be returned by customers $ 16,775,000 $ 15,614,000 Upfront payments to customers 3,441,000 3,979,000 Core premiums paid to customers 4,056,000 3,613,000 $ 24,272,000 $ 23,206,000 Long-term contract assets Remanufactured cores held at customers' locations $ 204,692,000 $ 197,067,000 Upfront payments to customers 4,050,000 5,492,000 Core premiums paid to customers 16,127,000 14,603,000 Long-term core inventory deposits 5,569,000 5,569,000 $ 230,438,000 $ 222,731,000 Total contract assets $ 254,710,000 $ 245,937,000 |
Significant Customer and Othe_2
Significant Customer and Other Information (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Significant Customer and Other Information [Abstract] | |
Concentrations of Risk | Significant Customer Concentrations The Company’s largest customers accounted for the following total percentage of net sales: Three Months Ended September 30, Six Months Ended September 30, 2018 2017 2018 2017 Net sales (As Adjusted) (As Adjusted) Customer A 39 % 47 % 38 % 44 % Customer B 26 % 26 % 24 % 26 % Customer C 20 % 13 % 22 % 15 % The Company’s largest customers accounted for the following total percentage of accounts receivable – trade: September 30, 2018 March 31, 2018 Accounts receivable - trade Customer A 31 % 36 % Customer B 23 % 16 % Customer C 12 % 22 % Geographic and Product Information The Company’s products are predominantly sold in the U.S. and accounted for the following total percentage of net sales: Three Months Ended September 30, Six Months Ended September 30, 2018 2017 2018 2017 (As Adjusted) (As Adjusted) Rotating electrical products 80 % 76 % 79 % 77 % Wheel hub products 14 % 18 % 16 % 18 % Brake master cylinders products 2 % 3 % 2 % 3 % Other products 4 % 3 % 3 % 2 % 100 % 100 % 100 % 100 % |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Debt [Abstract] | |
Information About the Term Loan | The following summarizes information about the Company’s term loans at: September 30, 2018 March 31, 2018 Principal amount of term loan $ 30,000,000 $ 17,188,000 Unamortized financing fees (283,000 ) (207,000 ) Net carrying amount of term loan 29,717,000 16,981,000 Less current portion of term loan (3,685,000 ) (3,068,000 ) Long-term portion of term loan $ 26,032,000 $ 13,913,000 |
Future Repayments of the Amended Term Loan, by Fiscal Year | Future repayments of the Company’s Amended Term Loans are as follows: Year Ending March 31, 2019 - remaining six months 1,875,000 2020 3,750,000 2021 3,750,000 2022 3,750,000 2023 3,750,000 Thereafter 13,125,000 Total payments $ 30,000,000 |
Contract Liabilities (Tables)
Contract Liabilities (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Contract Liabilities [Abstract] | |
Contract Liabilities | Contract liabilities (see Note 4) are comprised of the following: September 30, 2018 March 31, 2018 Short-term contract liabilities Customer allowances earned $ 11,381,000 $ 11,370,000 Customer core returns accruals 4,743,000 4,697,000 Accrued core payment, net 15,364,000 16,536,000 $ 31,488,000 $ 32,603,000 Long-term contract liabilities Customer core returns accruals $ 34,000,000 $ 29,710,000 Accrued core payment, net 18,535,000 18,473,000 $ 52,535,000 $ 48,183,000 Total contract liabilities $ 84,023,000 $ 80,786,000 |
Accounts Receivable Discount _2
Accounts Receivable Discount Programs (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Accounts Receivable Discount Programs [Abstract] | |
Accounts Receivable Discount Programs | The following is a summary of the Company’s accounts receivable discount programs: Six Months Ended September 30, 2018 2017 Receivables discounted $ 191,849,000 $ 175,209,000 Weighted average days 338 341 Annualized weighted average discount rate 4.1 % 3.1 % Amount of discount as interest expense $ 7,441,000 $ 5,090,000 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Net Income (Loss) Per Share [Abstract] | |
Reconciliation of Basic and Diluted Net Income (Loss) per Share | The following presents a reconciliation of basic and diluted net income (loss) per share: Three Months Ended September 30, Six Months Ended September 30, 2018 2017 2018 2017 (As Adjusted) (As Adjusted) Net income (loss) $ 3,513,000 $ 5,595,000 $ (1,982,000 ) $ 13,415,000 Basic shares 18,878,674 18,718,709 18,887,214 18,687,179 Effect of potentially dilutive securities 440,791 638,100 - 683,965 Diluted shares 19,319,465 19,356,809 18,887,214 19,371,144 Net income (loss) per share: Basic net income (loss) per share $ 0.19 $ 0.30 $ (0.10 ) $ 0.72 Diluted net income (loss) per share $ 0.18 $ 0.29 $ (0.10 ) $ 0.69 |
Financial Risk Management and_2
Financial Risk Management and Derivatives (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Financial Risk Management and Derivatives [Abstract] | |
Derivative Instruments on Consolidated Statements of Operations | The following shows the effect of the Company’s derivative instruments on its consolidated statements of operations: Gain (Loss) Recognized within General and Administrative Expenses Derivatives Not Designated as Three Months Ended September 30, Six Months Ended September 30, Hedging Instruments 2018 2017 2018 2017 Forward foreign currency exchange contracts $ 1,898,000 $ (330,000 ) $ (768,000 ) $ 722,000 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Fair Value Measurements [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value Recurring Basis | The following summarizes the Company’s financial assets and liabilities measured at fair value, by level within the fair value hierarchy: September 30, 2018 March 31, 2018 Fair Value Measurements Using Inputs Considered as Fair Value Measurements Using Inputs Considered as Fair Value Level 1 Level 2 Level 3 Fair Value Level 1 Level 2 Level 3 Assets Short-term investments Mutual funds $ 3,230,000 $ 3,230,000 - - $ 2,828,000 $ 2,828,000 - - Prepaid expenses and other current assets Forward foreign currency exchange contracts 411,000 - $ 411,000 - 1,179,000 - $ 1,179,000 - Liabilities Other current liabilities Deferred compensation 3,230,000 3,230,000 - - 2,828,000 2,828,000 - - |
Share-based Payments (Tables)
Share-based Payments (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Share-based Payments [Abstract] | |
Black-Scholes Option Pricing Model Assumptions used to Derive Weighted Average Fair Value of Stock Options Granted | The following assumptions were used to derive the weighted average fair value of the stock options granted: Six Months Ended September 30, 2018 2017 Weighted average risk free interest rate 2.82 % 1.90 % Weighted average expected holding period (years) 5.94 5.82 Weighted average expected volatility 43.98 % 47.36 % Weighted average expected dividend yield - - Weighted average fair value of options granted $ 8.71 $ 12.69 |
Stock Option Transactions | The following is a summary of stock option transactions: Number of Shares Weighted Average Exercise Price Outstanding at March 31, 2018 1,143,298 $ 16.97 Granted 245,400 $ 19.02 Exercised (39,032 ) $ 6.24 Forfeited (9,700 ) $ 26.43 Outstanding at September 30, 2018 1,339,966 $ 17.59 |
Restricted Stock Units Activity | The following is a summary of non-vested RSUs: Number of Shares Weighted Average Grant Date Fair Value Outstanding at March 31, 2018 133,828 $ 28.37 Granted 78,400 $ 19.00 Vested (45,966 ) $ 28.77 Forfeited (1,434 ) $ 28.37 Outstanding at September 30, 2018 164,828 $ 23.80 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | The following summarizes changes in accumulated other comprehensive income (loss): Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 Unrealized Gain on Short-Term Investments Foreign Currency Translation Total Unrealized Gain (Loss) on Short-Term Investments Foreign Currency Translation Total Balance at June 30, 2018 and 2017 $ - $ (6,889,000 ) $ (6,889,000 ) $ 584,000 $ (7,740,000 ) $ (7,156,000 ) Other comprehensive income (loss), net of tax - (2,000 ) (2,000 ) 60,000 608,000 668,000 Amounts reclassified from accumulated other comprehensive loss, net of tax - - - - - - Balance at September 30, 2018 and 2017 $ - $ (6,891,000 ) $ (6,891,000 ) $ 644,000 $ (7,132,000 ) $ (6,488,000 ) Six Months Ended September 30, 2018 Six Months Ended September 30, 2017 Unrealized Gain on Short-Term Investments Foreign Currency Translation Total Unrealized Gain on Short-Term Investments Foreign Currency Translation Total Balance at March 31, 2018 and 2017 $ 746,000 $ (6,174,000 ) $ (5,428,000 ) $ 528,000 $ (7,969,000 ) $ (7,441,000 ) Cumulative-effect adjustment [see Note 2] (746,000 ) - (746,000 ) - - - Balance at April 1, 2018 and 2017 $ - $ (6,174,000 ) $ (6,174,000 ) $ 528,000 $ (7,969,000 ) $ (7,441,000 ) Other comprehensive (loss) income, net of tax - (717,000 ) (717,000 ) 116,000 837,000 953,000 Amounts reclassified from accumulated other comprehensive loss, net of tax - - - - - - Balance at September 30, 2018 and 2017 $ - $ (6,891,000 ) $ (6,891,000 ) $ 644,000 $ (7,132,000 ) $ (6,488,000 ) |
Company Background and Organi_2
Company Background and Organization (Details) | 6 Months Ended |
Sep. 30, 2018Segment | |
Company Background and Organization [Abstract] | |
Number of reportable segments | 1 |
Impact on Previously Issued F_3
Impact on Previously Issued Financial Statements for the Correction of an Error, Revised Consolidated Statement of Operations (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Consolidated Statement of Operations [Abstract] | |||||||||||
Net sales | $ 127,939,000 | $ 110,261,000 | $ 94,695,000 | $ 219,607,000 | $ 204,956,000 | ||||||
Cost of goods sold | 102,228,000 | 84,234,000 | 68,843,000 | 177,544,000 | 153,077,000 | ||||||
Gross profit | 25,711,000 | 26,027,000 | 25,852,000 | 42,063,000 | 51,879,000 | ||||||
Operating expenses [Abstract] | |||||||||||
General and administrative | 8,997,000 | 8,615,000 | 5,888,000 | 21,088,000 | 14,503,000 | ||||||
Sales and marketing | 4,537,000 | 3,457,000 | 3,394,000 | 8,929,000 | 6,851,000 | ||||||
Research and development | 1,784,000 | 1,240,000 | 1,002,000 | 3,520,000 | 2,242,000 | ||||||
Total operating expenses | 15,318,000 | 13,312,000 | 10,284,000 | 33,537,000 | 23,596,000 | ||||||
Operating income | 10,393,000 | 12,715,000 | 15,568,000 | 8,526,000 | 28,283,000 | ||||||
Interest expense, net | 5,699,000 | 3,522,000 | 3,314,000 | 10,774,000 | 6,836,000 | ||||||
Income before income tax expense (benefit) | 4,694,000 | 9,193,000 | 12,254,000 | (2,248,000) | 21,447,000 | ||||||
Income tax expense (benefit) | 1,181,000 | 3,598,000 | 4,434,000 | (266,000) | 8,032,000 | ||||||
Net income (loss) | $ 3,513,000 | $ 5,595,000 | $ 7,820,000 | $ (1,982,000) | $ 13,415,000 | ||||||
Basic net income (loss) per share (in dollars per share) | $ 0.19 | $ 0.30 | $ 0.42 | $ (0.10) | $ 0.72 | ||||||
Diluted net income (loss) per share (in dollars per share) | $ 0.18 | $ 0.29 | $ 0.40 | $ (0.10) | $ 0.69 | ||||||
Historical Misapplication of GAAP Related to Timing of Recognizing Certain Expenses Incurred in Connection with New Business [Member] | |||||||||||
Quantifying Prior Year Misstatements Corrected in Current Year Financial Statements [Abstract] | |||||||||||
Cumulative understatement of net income | $ 2,938,000 | ||||||||||
Consolidated Statement of Operations [Abstract] | |||||||||||
Net sales | 91,668,000 | $ 101,713,000 | $ 110,853,000 | $ 94,239,000 | $ 205,092,000 | $ 306,805,000 | $ 426,991,000 | $ 422,882,000 | $ 369,670,000 | ||
Cost of goods sold | 75,316,000 | 75,833,000 | 84,612,000 | 69,224,000 | 153,836,000 | 229,669,000 | 320,449,000 | 305,926,000 | 268,448,000 | ||
Gross profit | 16,352,000 | 25,880,000 | 26,241,000 | 25,015,000 | 51,256,000 | 77,136,000 | 106,542,000 | 116,956,000 | 101,222,000 | ||
Operating expenses [Abstract] | |||||||||||
General and administrative | 12,091,000 | 11,915,000 | 8,615,000 | 5,888,000 | 14,503,000 | 26,418,000 | 35,477,000 | 31,125,000 | 49,963,000 | ||
Sales and marketing | 4,392,000 | 4,048,000 | 3,457,000 | 3,394,000 | 6,851,000 | 10,899,000 | 15,030,000 | 12,126,000 | 9,965,000 | ||
Research and development | 1,736,000 | 1,678,000 | 1,240,000 | 1,002,000 | 2,242,000 | 3,920,000 | 5,692,000 | 3,824,000 | 3,008,000 | ||
Total operating expenses | 18,219,000 | 17,641,000 | 13,312,000 | 10,284,000 | 23,596,000 | 41,237,000 | 56,199,000 | 47,075,000 | 62,936,000 | ||
Operating income | (1,867,000) | 8,239,000 | 12,929,000 | 14,731,000 | 27,660,000 | 35,899,000 | 50,343,000 | 69,881,000 | 38,286,000 | ||
Interest expense, net | 5,075,000 | 3,953,000 | 3,522,000 | 3,314,000 | 6,836,000 | 10,789,000 | 15,445,000 | 13,094,000 | 16,244,000 | ||
Income before income tax expense (benefit) | (6,942,000) | 4,286,000 | 9,407,000 | 11,417,000 | 20,824,000 | 25,110,000 | 34,898,000 | 56,787,000 | 22,042,000 | ||
Income tax expense (benefit) | (1,447,000) | 6,936,000 | 3,684,000 | 4,122,000 | 7,806,000 | 14,742,000 | 16,072,000 | 18,011,000 | 11,773,000 | ||
Net income (loss) | $ (5,495,000) | $ (2,650,000) | $ 5,723,000 | $ 7,295,000 | $ 13,018,000 | $ 10,368,000 | $ 18,826,000 | $ 38,776,000 | $ 10,269,000 | ||
Basic net income (loss) per share (in dollars per share) | $ (0.29) | $ (0.14) | $ 0.31 | $ 0.39 | $ 0.70 | $ 0.55 | $ 1 | $ 2.08 | $ 0.56 | ||
Diluted net income (loss) per share (in dollars per share) | $ (0.29) | $ (0.14) | $ 0.30 | $ 0.38 | $ 0.67 | $ 0.53 | $ 0.96 | $ 2 | $ 0.54 | ||
Historical Misapplication of GAAP Related to Timing of Recognizing Certain Expenses Incurred in Connection with New Business [Member] | As Previously Reported [Member] | |||||||||||
Consolidated Statement of Operations [Abstract] | |||||||||||
Net sales | $ 92,565,000 | $ 100,127,000 | $ 111,774,000 | $ 95,063,000 | $ 206,837,000 | $ 306,964,000 | $ 428,072,000 | $ 421,253,000 | $ 368,970,000 | ||
Cost of goods sold | 75,314,000 | 77,583,000 | 84,612,000 | 69,224,000 | 153,836,000 | 231,419,000 | 322,199,000 | 306,207,000 | 268,046,000 | ||
Gross profit | 17,251,000 | 22,544,000 | 27,162,000 | 25,839,000 | 53,001,000 | 75,545,000 | 105,873,000 | 115,046,000 | 100,924,000 | ||
Operating expenses [Abstract] | |||||||||||
General and administrative | 12,340,000 | 11,915,000 | 8,615,000 | 6,187,000 | 14,802,000 | 26,717,000 | 35,527,000 | 31,124,000 | 49,665,000 | ||
Sales and marketing | 4,392,000 | 4,048,000 | 3,457,000 | 3,394,000 | 6,851,000 | 10,899,000 | 15,030,000 | 12,126,000 | 9,965,000 | ||
Research and development | 1,736,000 | 1,678,000 | 1,240,000 | 1,002,000 | 2,242,000 | 3,920,000 | 5,692,000 | 3,824,000 | 3,008,000 | ||
Total operating expenses | 18,468,000 | 17,641,000 | 13,312,000 | 10,583,000 | 23,895,000 | 41,536,000 | 56,249,000 | 47,074,000 | 62,638,000 | ||
Operating income | (1,217,000) | 4,903,000 | 13,850,000 | 15,256,000 | 29,106,000 | 34,009,000 | 49,624,000 | 67,972,000 | 38,286,000 | ||
Interest expense, net | 5,075,000 | 3,953,000 | 3,522,000 | 3,314,000 | 6,836,000 | 10,789,000 | 15,445,000 | 13,094,000 | 16,244,000 | ||
Income before income tax expense (benefit) | (6,292,000) | 950,000 | 10,328,000 | 11,942,000 | 22,270,000 | 23,220,000 | 34,179,000 | 54,878,000 | 22,042,000 | ||
Income tax expense (benefit) | (1,278,000) | 7,756,000 | 4,027,000 | 4,316,000 | 8,343,000 | 16,099,000 | 17,863,000 | 17,305,000 | 11,479,000 | ||
Net income (loss) | $ (5,014,000) | $ (6,806,000) | $ 6,301,000 | $ 7,626,000 | $ 13,927,000 | $ 7,121,000 | $ 16,316,000 | $ 37,573,000 | $ 10,563,000 | ||
Basic net income (loss) per share (in dollars per share) | $ (0.27) | $ (0.36) | $ 0.34 | $ 0.41 | $ 0.75 | $ 0.38 | $ 0.87 | $ 2.02 | $ 0.58 | ||
Diluted net income (loss) per share (in dollars per share) | $ (0.27) | $ (0.36) | $ 0.33 | $ 0.39 | $ 0.72 | $ 0.37 | $ 0.84 | $ 1.93 | $ 0.55 | ||
Historical Misapplication of GAAP Related to Timing of Recognizing Certain Expenses Incurred in Connection with New Business [Member] | Adjustment [Member] | |||||||||||
Consolidated Statement of Operations [Abstract] | |||||||||||
Net sales | $ (897,000) | $ 1,586,000 | $ (921,000) | $ (824,000) | $ (1,745,000) | $ (159,000) | $ (1,081,000) | $ 1,629,000 | $ 700,000 | ||
Cost of goods sold | 2,000 | (1,750,000) | 0 | 0 | 0 | (1,750,000) | (1,750,000) | (281,000) | 402,000 | ||
Gross profit | (899,000) | 3,336,000 | (921,000) | (824,000) | (1,745,000) | 1,591,000 | 669,000 | 1,910,000 | 298,000 | ||
Operating expenses [Abstract] | |||||||||||
General and administrative | (249,000) | 0 | 0 | (299,000) | (299,000) | (299,000) | (50,000) | 1,000 | 298,000 | ||
Sales and marketing | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||
Research and development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||
Total operating expenses | (249,000) | 0 | 0 | (299,000) | (299,000) | (299,000) | (50,000) | 1,000 | 298,000 | ||
Operating income | (650,000) | 3,336,000 | (921,000) | (525,000) | (1,446,000) | 1,890,000 | 719,000 | 1,909,000 | 0 | ||
Interest expense, net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||
Income before income tax expense (benefit) | (650,000) | 3,336,000 | (921,000) | (525,000) | (1,446,000) | 1,890,000 | 719,000 | 1,909,000 | 0 | ||
Income tax expense (benefit) | (169,000) | (820,000) | (343,000) | (194,000) | (537,000) | (1,357,000) | (1,791,000) | 706,000 | 294,000 | ||
Net income (loss) | $ (481,000) | $ 4,156,000 | $ (578,000) | $ (331,000) | $ (909,000) | $ 3,247,000 | $ 2,510,000 | $ 1,203,000 | $ (294,000) | ||
Basic net income (loss) per share (in dollars per share) | $ (0.03) | $ 0.22 | $ (0.03) | $ (0.02) | $ (0.05) | $ 0.17 | $ 0.13 | $ 0.06 | $ (0.02) | ||
Diluted net income (loss) per share (in dollars per share) | $ (0.03) | $ 0.22 | $ (0.03) | $ (0.02) | $ (0.05) | $ 0.17 | $ 0.13 | $ 0.06 | $ (0.02) |
Impact on Previously Issued F_4
Impact on Previously Issued Financial Statements for the Correction of an Error, Revised Consolidated Statement of Comprehensive Income (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Consolidated Statement of Comprehensive Income [Abstract] | |||||||||||
Net income (loss) | $ 3,513,000 | $ 5,595,000 | $ 7,820,000 | $ (1,982,000) | $ 13,415,000 | ||||||
Comprehensive income (loss) | $ 3,511,000 | 6,263,000 | $ (2,699,000) | 14,368,000 | |||||||
Historical Misapplication of GAAP Related to Timing of Recognizing Certain Expenses Incurred in Connection with New Business [Member] | |||||||||||
Consolidated Statement of Comprehensive Income [Abstract] | |||||||||||
Net income (loss) | $ (5,495,000) | $ (2,650,000) | 5,723,000 | 7,295,000 | 13,018,000 | $ 10,368,000 | $ 18,826,000 | $ 38,776,000 | $ 10,269,000 | ||
Comprehensive income (loss) | (6,210,000) | (2,320,000) | 6,391,000 | 7,580,000 | 13,971,000 | 11,651,000 | 20,839,000 | 36,187,000 | 7,935,000 | ||
Historical Misapplication of GAAP Related to Timing of Recognizing Certain Expenses Incurred in Connection with New Business [Member] | As Previously Reported [Member] | |||||||||||
Consolidated Statement of Comprehensive Income [Abstract] | |||||||||||
Net income (loss) | (5,014,000) | (6,806,000) | 6,301,000 | 7,626,000 | 13,927,000 | 7,121,000 | 16,316,000 | 37,573,000 | 10,563,000 | ||
Comprehensive income (loss) | (5,729,000) | (6,476,000) | 6,969,000 | 7,911,000 | 14,880,000 | 8,404,000 | 18,329,000 | 34,984,000 | 8,229,000 | ||
Historical Misapplication of GAAP Related to Timing of Recognizing Certain Expenses Incurred in Connection with New Business [Member] | Adjustment [Member] | |||||||||||
Consolidated Statement of Comprehensive Income [Abstract] | |||||||||||
Net income (loss) | (481,000) | 4,156,000 | (578,000) | (331,000) | (909,000) | 3,247,000 | 2,510,000 | 1,203,000 | (294,000) | ||
Comprehensive income (loss) | $ (481,000) | $ 4,156,000 | $ (578,000) | $ (331,000) | $ (909,000) | $ 3,247,000 | $ 2,510,000 | $ 1,203,000 | $ (294,000) |
Impact on Previously Issued F_5
Impact on Previously Issued Financial Statements for the Correction of an Error, Revised Consolidated Balance Sheet (Details) - USD ($) | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 |
ASSETS [Abstract] | ||||||
Contract assets | $ 24,272,000 | $ 23,206,000 | ||||
Income tax receivable | 11,572,000 | 7,972,000 | ||||
Prepaid expenses and other current assets | 10,200,000 | 8,608,000 | ||||
Long-term core inventory - net | 0 | |||||
Long-term deferred income taxes | 7,345,000 | 6,698,000 | ||||
Long-term contract assets | 230,438,000 | 222,731,000 | ||||
Other assets | 866,000 | 804,000 | ||||
TOTAL ASSETS | 584,013,000 | 552,427,000 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY [Abstract] | ||||||
Accrued liabilities | 10,622,000 | 12,048,000 | ||||
TOTAL LIABILITIES | 301,849,000 | 265,547,000 | ||||
Retained earnings | 77,274,000 | 78,510,000 | ||||
TOTAL SHAREHOLDERS' EQUITY | 282,164,000 | 286,880,000 | ||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 584,013,000 | 552,427,000 | ||||
Historical Misapplication of GAAP Related to Timing of Recognizing Certain Expenses Incurred in Connection with New Business [Member] | ||||||
ASSETS [Abstract] | ||||||
Contract assets | $ 24,316,000 | |||||
Income tax receivable | 9,761,000 | 7,972,000 | ||||
Prepaid expenses and other current assets | 10,255,000 | 15,104,000 | $ 13,088,000 | |||
Long-term core inventory - net | 298,294,000 | 258,421,000 | ||||
Long-term deferred income taxes | 6,724,000 | 6,937,000 | 8,367,000 | |||
Long-term contract assets | 222,462,000 | |||||
Other assets | 810,000 | 21,995,000 | 22,381,000 | |||
TOTAL ASSETS | 559,934,000 | 505,908,000 | 445,090,000 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY [Abstract] | ||||||
Accrued liabilities | 12,048,000 | 10,376,000 | ||||
TOTAL LIABILITIES | 219,770,000 | 187,757,000 | ||||
Retained earnings | 73,761,000 | 77,768,000 | 58,942,000 | $ 19,274,000 | $ 1,262,000 | |
TOTAL SHAREHOLDERS' EQUITY | 281,419,000 | 286,138,000 | 257,333,000 | |||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 559,934,000 | 505,908,000 | 445,090,000 | |||
Historical Misapplication of GAAP Related to Timing of Recognizing Certain Expenses Incurred in Connection with New Business [Member] | As Previously Reported [Member] | ||||||
ASSETS [Abstract] | ||||||
Contract assets | 16,542,000 | |||||
Income tax receivable | 9,416,000 | 7,796,000 | ||||
Prepaid expenses and other current assets | 13,148,000 | 11,491,000 | 9,848,000 | |||
Long-term core inventory - net | 301,656,000 | 262,922,000 | ||||
Long-term deferred income taxes | 10,343,000 | 10,556,000 | 13,546,000 | |||
Long-term contract assets | 207,792,000 | |||||
Other assets | 6,406,000 | 7,392,000 | 6,990,000 | |||
TOTAL ASSETS | 549,253,000 | 494,497,000 | 436,139,000 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY [Abstract] | ||||||
Accrued liabilities | 11,799,000 | 10,077,000 | ||||
TOTAL LIABILITIES | 219,521,000 | 187,458,000 | ||||
Retained earnings | 63,080,000 | 66,606,000 | 50,290,000 | 11,825,000 | 1,262,000 | |
TOTAL SHAREHOLDERS' EQUITY | 270,738,000 | 274,976,000 | 248,681,000 | |||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 549,253,000 | 494,497,000 | 436,139,000 | |||
Historical Misapplication of GAAP Related to Timing of Recognizing Certain Expenses Incurred in Connection with New Business [Member] | Adjustment [Member] | ||||||
ASSETS [Abstract] | ||||||
Contract assets | 7,774,000 | |||||
Income tax receivable | 345,000 | 176,000 | ||||
Prepaid expenses and other current assets | (2,893,000) | 3,613,000 | 3,240,000 | |||
Long-term core inventory - net | (3,362,000) | (4,501,000) | ||||
Long-term deferred income taxes | (3,619,000) | (3,619,000) | (5,179,000) | |||
Long-term contract assets | 14,670,000 | |||||
Other assets | (5,596,000) | 14,603,000 | 15,391,000 | |||
TOTAL ASSETS | 10,681,000 | 11,411,000 | 8,951,000 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY [Abstract] | ||||||
Accrued liabilities | 249,000 | 299,000 | ||||
TOTAL LIABILITIES | 249,000 | 299,000 | ||||
Retained earnings | 10,681,000 | 11,162,000 | 8,652,000 | $ 7,449,000 | $ 0 | |
TOTAL SHAREHOLDERS' EQUITY | 10,681,000 | 11,162,000 | 8,652,000 | |||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 10,681,000 | $ 11,411,000 | $ 8,951,000 |
Impact on Previously Issued F_6
Impact on Previously Issued Financial Statements for the Correction of an Error, Revised Consolidated Statement of Shareholders' Equity (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Consolidated Statement of Shareholders' Equity [Abstract] | |||||||||||
Balance at beginning of period | $ 78,510,000 | $ 78,510,000 | |||||||||
Net income (loss) | $ 3,513,000 | $ 5,595,000 | $ 7,820,000 | (1,982,000) | $ 13,415,000 | ||||||
Balance at end of period | 77,274,000 | 77,274,000 | $ 78,510,000 | ||||||||
Historical Misapplication of GAAP Related to Timing of Recognizing Certain Expenses Incurred in Connection with New Business [Member] | |||||||||||
Consolidated Statement of Shareholders' Equity [Abstract] | |||||||||||
Balance at beginning of period | 73,761,000 | 77,768,000 | 58,942,000 | 77,768,000 | 58,942,000 | $ 58,942,000 | 58,942,000 | $ 19,274,000 | $ 1,262,000 | ||
Cumulative effect adjustment | 892,000 | ||||||||||
Cumulative effect adjustment of error corrections | 7,743,000 | ||||||||||
Net income (loss) | (5,495,000) | $ (2,650,000) | 5,723,000 | 7,295,000 | 13,018,000 | 10,368,000 | 18,826,000 | 38,776,000 | 10,269,000 | ||
Balance at end of period | 73,761,000 | 77,768,000 | 58,942,000 | 19,274,000 | |||||||
Historical Misapplication of GAAP Related to Timing of Recognizing Certain Expenses Incurred in Connection with New Business [Member] | As Previously Reported [Member] | |||||||||||
Consolidated Statement of Shareholders' Equity [Abstract] | |||||||||||
Balance at beginning of period | 63,080,000 | 66,606,000 | 50,290,000 | 66,606,000 | 50,290,000 | 50,290,000 | 50,290,000 | 11,825,000 | 1,262,000 | ||
Cumulative effect adjustment | 892,000 | ||||||||||
Cumulative effect adjustment of error corrections | 0 | ||||||||||
Net income (loss) | (5,014,000) | (6,806,000) | 6,301,000 | 7,626,000 | 13,927,000 | 7,121,000 | 16,316,000 | 37,573,000 | 10,563,000 | ||
Balance at end of period | 63,080,000 | 66,606,000 | 50,290,000 | 11,825,000 | |||||||
Historical Misapplication of GAAP Related to Timing of Recognizing Certain Expenses Incurred in Connection with New Business [Member] | Adjustment [Member] | |||||||||||
Consolidated Statement of Shareholders' Equity [Abstract] | |||||||||||
Balance at beginning of period | $ 10,681,000 | 11,162,000 | 8,652,000 | $ 11,162,000 | 8,652,000 | 8,652,000 | 8,652,000 | 7,449,000 | 0 | ||
Cumulative effect adjustment | 0 | ||||||||||
Cumulative effect adjustment of error corrections | 7,743,000 | ||||||||||
Net income (loss) | (481,000) | $ 4,156,000 | $ (578,000) | $ (331,000) | $ (909,000) | $ 3,247,000 | 2,510,000 | 1,203,000 | (294,000) | ||
Balance at end of period | $ 10,681,000 | $ 11,162,000 | $ 8,652,000 | $ 7,449,000 |
Impact on Previously Issued F_7
Impact on Previously Issued Financial Statements for the Correction of an Error, Revised Consolidated Statement of Cash Flow from Operating Activities (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Consolidated Statement of Cash Flow from Operating Activities [Abstract] | |||||||||||
Net income (loss) | $ 3,513,000 | $ 5,595,000 | $ 7,820,000 | $ (1,982,000) | $ 13,415,000 | ||||||
Deferred income taxes | 209,000 | (667,000) | (207,000) | ||||||||
Income tax receivable | (3,595,000) | (3,985,000) | |||||||||
Prepaid expenses and other current assets | (658,000) | (2,645,000) | |||||||||
Other assets | (1,000) | (79,000) | (20,000) | ||||||||
Accounts payable and accrued liabilities | 17,840,000 | (3,764,000) | |||||||||
Long-term core inventory | 0 | 0 | |||||||||
Contract assets, net | 1,726,000 | (8,773,000) | 6,882,000 | ||||||||
Other liabilities | 1,904,000 | 295,000 | |||||||||
Net cash used in operating activities | (644,000) | $ (6,409,000) | (8,148,000) | ||||||||
Historical Misapplication of GAAP Related to Timing of Recognizing Certain Expenses Incurred in Connection with New Business [Member] | |||||||||||
Consolidated Statement of Cash Flow from Operating Activities [Abstract] | |||||||||||
Net income (loss) | $ (5,495,000) | $ (2,650,000) | 5,723,000 | 7,295,000 | 13,018,000 | $ 10,368,000 | $ 18,826,000 | $ 38,776,000 | $ 10,269,000 | ||
Deferred income taxes | (2,714,000) | 1,495,000 | 6,865,000 | (3,191,000) | |||||||
Income tax receivable | (1,791,000) | (6,312,000) | |||||||||
Prepaid expenses and other current assets | (687,000) | 366,000 | (6,630,000) | (1,645,000) | (2,825,000) | (4,882,000) | 3,383,000 | ||||
Other assets | (51,000) | 1,432,000 | 2,943,000 | (163,000) | 404,000 | (4,364,000) | (1,795,000) | ||||
Accounts payable and accrued liabilities | 10,868,000 | (5,553,000) | (3,764,000) | (15,946,000) | (11,671,000) | 12,447,000 | 6,918,000 | ||||
Long-term core inventory | (38,361,000) | (46,978,000) | (25,245,000) | (53,006,000) | |||||||
Contract assets, net | (841,000) | ||||||||||
Other liabilities | 2,185,000 | (1,048,000) | 1,377,000 | ||||||||
Net cash used in operating activities | (924,000) | (644,000) | (8,148,000) | (9,803,000) | (13,944,000) | (5,269,000) | 15,334,000 | ||||
Historical Misapplication of GAAP Related to Timing of Recognizing Certain Expenses Incurred in Connection with New Business [Member] | As Previously Reported [Member] | |||||||||||
Consolidated Statement of Cash Flow from Operating Activities [Abstract] | |||||||||||
Net income (loss) | (5,014,000) | (6,806,000) | 6,301,000 | 7,626,000 | 13,927,000 | 7,121,000 | 16,316,000 | 37,573,000 | 10,563,000 | ||
Deferred income taxes | (909,000) | 3,055,000 | 6,510,000 | (3,781,000) | |||||||
Income tax receivable | (1,622,000) | (6,081,000) | |||||||||
Prepaid expenses and other current assets | (697,000) | 421,000 | (6,093,000) | (2,093,000) | (2,507,000) | (4,333,000) | 2,765,000 | ||||
Other assets | 941,000 | 608,000 | 1,198,000 | 289,000 | (384,000) | (3,339,000) | (477,000) | ||||
Accounts payable and accrued liabilities | 11,117,000 | (5,254,000) | (3,465,000) | (15,647,000) | (11,621,000) | 12,446,000 | 6,620,000 | ||||
Long-term core inventory | (37,222,000) | (45,839,000) | (24,964,000) | (53,408,000) | |||||||
Contract assets, net | (2,722,000) | ||||||||||
Other liabilities | 2,324,000 | (1,344,000) | 1,673,000 | ||||||||
Net cash used in operating activities | (924,000) | (644,000) | (8,148,000) | (9,803,000) | (13,944,000) | (5,269,000) | 15,334,000 | ||||
Historical Misapplication of GAAP Related to Timing of Recognizing Certain Expenses Incurred in Connection with New Business [Member] | Adjustment [Member] | |||||||||||
Consolidated Statement of Cash Flow from Operating Activities [Abstract] | |||||||||||
Net income (loss) | (481,000) | $ 4,156,000 | $ (578,000) | (331,000) | (909,000) | 3,247,000 | 2,510,000 | 1,203,000 | (294,000) | ||
Deferred income taxes | (1,805,000) | (1,560,000) | 355,000 | 590,000 | |||||||
Income tax receivable | (169,000) | (231,000) | |||||||||
Prepaid expenses and other current assets | 10,000 | (55,000) | (537,000) | 448,000 | (318,000) | (549,000) | 618,000 | ||||
Other assets | (992,000) | 824,000 | 1,745,000 | (452,000) | 788,000 | (1,025,000) | (1,318,000) | ||||
Accounts payable and accrued liabilities | (249,000) | (299,000) | (299,000) | (299,000) | (50,000) | 1,000 | 298,000 | ||||
Long-term core inventory | (1,139,000) | (1,139,000) | (281,000) | 402,000 | |||||||
Contract assets, net | 1,881,000 | ||||||||||
Other liabilities | (139,000) | 296,000 | (296,000) | ||||||||
Net cash used in operating activities | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
New Accounting Pronouncements_2
New Accounting Pronouncements (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Mar. 31, 2018 | |
New Accounting Pronouncements Recently Adopted [Abstract] | ||||
Gain on short-term investments | $ 111,000 | $ 180,000 | $ 0 | |
Retained Earnings [Member] | ||||
New Accounting Pronouncements Recently Adopted [Abstract] | ||||
Cumulative-effect adjustment | $ 746,000 |
Revenue Recognition, Adoption o
Revenue Recognition, Adoption of ASC Topic 606 (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Sep. 30, 2018USD ($)$ / Core | Sep. 30, 2017USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | ||
Revenue Recognition [Abstract] | |||||||||
Percentage of possible scrap and liquidation value of part | 100.00% | ||||||||
Reserves for excess and obsolete inventory | $ 10,027,000 | $ 10,027,000 | $ 6,682,000 | ||||||
Retained earnings | 77,274,000 | 77,274,000 | 78,510,000 | ||||||
Revenues | 127,939,000 | $ 110,261,000 | $ 94,695,000 | 219,607,000 | $ 204,956,000 | ||||
Cost of goods sold | $ 102,228,000 | 84,234,000 | 68,843,000 | $ 177,544,000 | 153,077,000 | ||||
Minimum [Member] | |||||||||
Revenue Recognition [Abstract] | |||||||||
Amortization period for core premiums | 6 years | ||||||||
Maximum [Member] | |||||||||
Revenue Recognition [Abstract] | |||||||||
Remanufactured cores nominal price (in dollars per core) | $ / Core | 0.01 | ||||||||
Percentage of stock adjustment returns | 5.00% | ||||||||
Percentage of aggregate returns | 20.00% | ||||||||
Amortization period for core premiums | 8 years | ||||||||
Adoption of ASC 606 [Member] | ASC 606 [Member] | |||||||||
Revenue Recognition [Abstract] | |||||||||
Reserves for excess and obsolete inventory | [1] | 2,544,000 | |||||||
Retained earnings | 742,000 | $ 345,000 | |||||||
Revenues | (592,000) | 456,000 | (136,000) | 557,000 | $ (824,000) | ||||
Cost of goods sold | $ (378,000) | $ (381,000) | $ (759,000) | $ 66,000 | $ (758,000) | ||||
[1] | The allowance for excess and obsolete inventory of $2,544,000 previously included in long-term core inventory has been reclassified to inventory-net in the consolidated balance sheet at March 31, 2018. |
Revenue Recognition, Consolidat
Revenue Recognition, Consolidated Statement of Operations (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Consolidated Statement of Operations [Abstract] | |||||||
Net sales | $ 127,939,000 | $ 110,261,000 | $ 94,695,000 | $ 219,607,000 | $ 204,956,000 | ||
Cost of goods sold | 102,228,000 | 84,234,000 | 68,843,000 | 177,544,000 | 153,077,000 | ||
Gross profit | 25,711,000 | 26,027,000 | 25,852,000 | 42,063,000 | 51,879,000 | ||
Operating expenses [Abstract] | |||||||
General and administrative | 8,997,000 | 8,615,000 | 5,888,000 | 21,088,000 | 14,503,000 | ||
Sales and marketing | 4,537,000 | 3,457,000 | 3,394,000 | 8,929,000 | 6,851,000 | ||
Research and development | 1,784,000 | 1,240,000 | 1,002,000 | 3,520,000 | 2,242,000 | ||
Total operating expenses | 15,318,000 | 13,312,000 | 10,284,000 | 33,537,000 | 23,596,000 | ||
Operating income | 10,393,000 | 12,715,000 | 15,568,000 | 8,526,000 | 28,283,000 | ||
Interest expense, net | 5,699,000 | 3,522,000 | 3,314,000 | 10,774,000 | 6,836,000 | ||
Income before income tax expense (benefit) | 4,694,000 | 9,193,000 | 12,254,000 | (2,248,000) | 21,447,000 | ||
Income tax expense (benefit) | 1,181,000 | 3,598,000 | 4,434,000 | (266,000) | 8,032,000 | ||
Net income (loss) | $ 3,513,000 | $ 5,595,000 | $ 7,820,000 | $ (1,982,000) | $ 13,415,000 | ||
Basic net income (loss) per share (in dollars per share) | $ 0.19 | $ 0.30 | $ 0.42 | $ (0.10) | $ 0.72 | ||
Diluted net income (loss) per share (in dollars per share) | $ 0.18 | $ 0.29 | $ 0.40 | $ (0.10) | $ 0.69 | ||
As Revised [Member] | ASC 606 [Member] | |||||||
Consolidated Statement of Operations [Abstract] | |||||||
Net sales | $ 110,853,000 | $ 94,239,000 | $ 205,092,000 | ||||
Cost of goods sold | 84,612,000 | 69,224,000 | 153,836,000 | ||||
Gross profit | 26,241,000 | 25,015,000 | 51,256,000 | ||||
Operating expenses [Abstract] | |||||||
General and administrative | 8,615,000 | 5,888,000 | 14,503,000 | ||||
Sales and marketing | 3,457,000 | 3,394,000 | 6,851,000 | ||||
Research and development | 1,240,000 | 1,002,000 | 2,242,000 | ||||
Total operating expenses | 13,312,000 | 10,284,000 | 23,596,000 | ||||
Operating income | 12,929,000 | 14,731,000 | 27,660,000 | ||||
Interest expense, net | 3,522,000 | 3,314,000 | 6,836,000 | ||||
Income before income tax expense (benefit) | 9,407,000 | 11,417,000 | 20,824,000 | ||||
Income tax expense (benefit) | 3,684,000 | 4,122,000 | 7,806,000 | ||||
Net income (loss) | $ 5,723,000 | $ 7,295,000 | $ 13,018,000 | ||||
Basic net income (loss) per share (in dollars per share) | $ 0.31 | $ 0.39 | $ 0.70 | ||||
Diluted net income (loss) per share (in dollars per share) | $ 0.30 | $ 0.38 | $ 0.67 | ||||
Adoption of ASC 606 [Member] | ASC 606 [Member] | |||||||
Consolidated Statement of Operations [Abstract] | |||||||
Net sales | $ (592,000) | $ 456,000 | $ (136,000) | $ 557,000 | $ (824,000) | ||
Cost of goods sold | (378,000) | (381,000) | (759,000) | $ 66,000 | $ (758,000) | ||
Gross profit | (214,000) | 837,000 | 623,000 | ||||
Operating expenses [Abstract] | |||||||
General and administrative | 0 | 0 | 0 | ||||
Sales and marketing | 0 | 0 | 0 | ||||
Research and development | 0 | 0 | 0 | ||||
Total operating expenses | 0 | 0 | 0 | ||||
Operating income | (214,000) | 837,000 | 623,000 | ||||
Interest expense, net | 0 | 0 | 0 | ||||
Income before income tax expense (benefit) | (214,000) | 837,000 | 623,000 | ||||
Income tax expense (benefit) | (86,000) | 312,000 | 226,000 | ||||
Net income (loss) | $ (128,000) | $ 525,000 | $ 397,000 | ||||
Basic net income (loss) per share (in dollars per share) | $ (0.01) | $ 0.03 | $ 0.02 | ||||
Diluted net income (loss) per share (in dollars per share) | $ (0.01) | $ 0.03 | $ 0.02 |
Revenue Recognition, Consolid_2
Revenue Recognition, Consolidated Balance Sheet (Details) - USD ($) | Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Mar. 31, 2017 | Mar. 31, 2016 | |
Current assets [Abstract] | ||||||
Cash and cash equivalents | $ 6,175,000 | $ 13,049,000 | ||||
Short-term investments | 3,230,000 | 2,828,000 | ||||
Accounts receivable - net | 56,085,000 | 63,174,000 | ||||
Inventory - net | 188,287,000 | 161,210,000 | ||||
Inventory unreturned | 9,100,000 | 7,508,000 | ||||
Contract assets | 24,272,000 | 23,206,000 | ||||
Income tax receivable | 11,572,000 | 7,972,000 | ||||
Prepaid expenses and other current assets | 10,200,000 | 8,608,000 | ||||
Total current assets | 308,921,000 | 287,555,000 | ||||
Plant and equipment - net | 30,512,000 | 28,322,000 | ||||
Long-term core inventory - net | 0 | |||||
Long-term core inventory deposits | 0 | |||||
Long-term deferred income taxes | 7,345,000 | 6,698,000 | ||||
Long-term contract assets | 230,438,000 | 222,731,000 | ||||
Goodwill | 2,551,000 | 2,551,000 | $ 2,551,000 | $ 2,551,000 | ||
Intangible assets - net | 3,380,000 | 3,766,000 | ||||
Other assets | 866,000 | 804,000 | ||||
TOTAL ASSETS | 584,013,000 | 552,427,000 | ||||
Current liabilities [Abstract] | ||||||
Accounts payable | 92,663,000 | 73,273,000 | ||||
Accrued liabilities | 10,622,000 | 12,048,000 | ||||
Customer finished goods returns accrual | 19,961,000 | 17,805,000 | ||||
Accrued core payment | 0 | |||||
Contract liabilities | 31,488,000 | 32,603,000 | ||||
Revolving loan | 52,906,000 | 54,000,000 | ||||
Other current liabilities | 4,970,000 | 4,471,000 | ||||
Current portion of term loan | 3,685,000 | 3,068,000 | ||||
Total current liabilities | 216,295,000 | 197,268,000 | ||||
Term loan, less current portion | 26,032,000 | 13,913,000 | ||||
Long-term accrued core payment | 0 | |||||
Long-term deferred income taxes | 211,000 | 226,000 | ||||
Long-term contract liabilities | 52,535,000 | 48,183,000 | ||||
Other liabilities | 6,776,000 | 5,957,000 | ||||
Total liabilities | 301,849,000 | 265,547,000 | ||||
Commitments and contingencies | ||||||
Shareholders' equity [Abstract] | ||||||
Preferred stock | 0 | 0 | ||||
Common stock; par value $.01 per share, 50,000,000 shares authorized; 18,893,102 shares issued and outstanding at March 31, 2018 | 188,000 | 189,000 | ||||
Additional paid-in capital | 211,593,000 | 213,609,000 | ||||
Retained earnings | 77,274,000 | 78,510,000 | ||||
Accumulated other comprehensive loss | (6,891,000) | (5,428,000) | ||||
Total shareholders' equity | 282,164,000 | 286,880,000 | ||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 584,013,000 | $ 552,427,000 | ||||
Balance Sheet Parenthetical Information [Abstract] | ||||||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||||
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 | ||||
Preferred stock, issued (in shares) | 0 | 0 | ||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||||
Common stock, authorized (in shares) | 50,000,000 | 50,000,000 | ||||
Common stock, issued (in shares) | 18,799,477 | 18,893,102 | ||||
Common stock, outstanding (in shares) | 18,799,477 | 18,893,102 | ||||
Series A Junior Participating Preferred Stock [Member] | ||||||
Shareholders' equity [Abstract] | ||||||
Preferred stock | $ 0 | $ 0 | ||||
Balance Sheet Parenthetical Information [Abstract] | ||||||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||||
Preferred stock, authorized (in shares) | 20,000 | 20,000 | ||||
Preferred stock, issued (in shares) | 0 | 0 | ||||
As Revised [Member] | ASC 606 [Member] | ||||||
Current assets [Abstract] | ||||||
Cash and cash equivalents | $ 13,049,000 | |||||
Short-term investments | 2,828,000 | |||||
Accounts receivable - net | 15,738,000 | |||||
Inventory - net | 76,275,000 | |||||
Inventory unreturned | 7,508,000 | |||||
Contract assets | 0 | |||||
Income tax receivable | 7,972,000 | |||||
Prepaid expenses and other current assets | 15,104,000 | |||||
Total current assets | 138,474,000 | |||||
Plant and equipment - net | 28,322,000 | |||||
Long-term core inventory - net | 298,294,000 | |||||
Long-term core inventory deposits | 5,569,000 | |||||
Long-term deferred income taxes | 6,937,000 | |||||
Long-term contract assets | 0 | |||||
Goodwill | 2,551,000 | |||||
Intangible assets - net | 3,766,000 | |||||
Other assets | 21,995,000 | |||||
TOTAL ASSETS | 505,908,000 | |||||
Current liabilities [Abstract] | ||||||
Accounts payable | 73,273,000 | |||||
Accrued liabilities | 12,048,000 | |||||
Customer finished goods returns accrual | 17,805,000 | |||||
Accrued core payment | 16,536,000 | |||||
Contract liabilities | 0 | |||||
Revolving loan | 54,000,000 | |||||
Other current liabilities | 4,471,000 | |||||
Current portion of term loan | 3,068,000 | |||||
Total current liabilities | 181,201,000 | |||||
Term loan, less current portion | 13,913,000 | |||||
Long-term accrued core payment | 18,473,000 | |||||
Long-term deferred income taxes | 226,000 | |||||
Long-term contract liabilities | 0 | |||||
Other liabilities | 5,957,000 | |||||
Total liabilities | 219,770,000 | |||||
Commitments and contingencies | ||||||
Shareholders' equity [Abstract] | ||||||
Preferred stock | 0 | |||||
Common stock; par value $.01 per share, 50,000,000 shares authorized; 18,893,102 shares issued and outstanding at March 31, 2018 | 189,000 | |||||
Additional paid-in capital | 213,609,000 | |||||
Retained earnings | 77,768,000 | |||||
Accumulated other comprehensive loss | (5,428,000) | |||||
Total shareholders' equity | 286,138,000 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 505,908,000 | |||||
As Revised [Member] | ASC 606 [Member] | Series A Junior Participating Preferred Stock [Member] | ||||||
Shareholders' equity [Abstract] | ||||||
Preferred stock | 0 | |||||
Adoption of ASC 606 [Member] | ASC 606 [Member] | ||||||
Current assets [Abstract] | ||||||
Cash and cash equivalents | 0 | |||||
Short-term investments | 0 | |||||
Accounts receivable - net | 47,436,000 | |||||
Inventory - net | 84,935,000 | |||||
Inventory unreturned | 0 | |||||
Contract assets | 23,206,000 | |||||
Income tax receivable | 0 | |||||
Prepaid expenses and other current assets | (6,496,000) | |||||
Total current assets | 149,081,000 | |||||
Plant and equipment - net | 0 | |||||
Long-term core inventory - net | (298,294,000) | |||||
Long-term core inventory deposits | [1] | (5,569,000) | ||||
Long-term deferred income taxes | (239,000) | |||||
Long-term contract assets | 222,731,000 | |||||
Goodwill | 0 | |||||
Intangible assets - net | 0 | |||||
Other assets | (21,191,000) | |||||
TOTAL ASSETS | 46,519,000 | |||||
Current liabilities [Abstract] | ||||||
Accounts payable | 0 | |||||
Accrued liabilities | 0 | |||||
Customer finished goods returns accrual | 0 | |||||
Accrued core payment | (16,536,000) | |||||
Contract liabilities | 32,603,000 | |||||
Revolving loan | 0 | |||||
Other current liabilities | 0 | |||||
Current portion of term loan | 0 | |||||
Total current liabilities | 16,067,000 | |||||
Term loan, less current portion | 0 | |||||
Long-term accrued core payment | (18,473,000) | |||||
Long-term deferred income taxes | 0 | |||||
Long-term contract liabilities | 48,183,000 | |||||
Other liabilities | 0 | |||||
Total liabilities | 45,777,000 | |||||
Commitments and contingencies | ||||||
Shareholders' equity [Abstract] | ||||||
Preferred stock | 0 | |||||
Common stock; par value $.01 per share, 50,000,000 shares authorized; 18,893,102 shares issued and outstanding at March 31, 2018 | 0 | |||||
Additional paid-in capital | 0 | |||||
Retained earnings | 742,000 | $ 345,000 | ||||
Accumulated other comprehensive loss | 0 | |||||
Total shareholders' equity | 742,000 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 46,519,000 | |||||
Adoption of ASC 606 [Member] | ASC 606 [Member] | Series A Junior Participating Preferred Stock [Member] | ||||||
Shareholders' equity [Abstract] | ||||||
Preferred stock | $ 0 | |||||
[1] | Long-term core inventory deposits of $5,569,000 have been reclassified to long-term contract assets in the consolidated balance sheet at March 31, 2018. |
Revenue Recognition, Statement
Revenue Recognition, Statement of Cash Flows (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities [Abstract] | |||||
Net income | $ 3,513,000 | $ 5,595,000 | $ 7,820,000 | $ (1,982,000) | $ 13,415,000 |
Deferred income taxes | 209,000 | (667,000) | (207,000) | ||
Accounts receivable | 9,333,000 | 6,598,000 | 2,819,000 | ||
Inventory | (18,494,000) | (32,380,000) | (28,552,000) | ||
Other assets | (1,000) | (79,000) | (20,000) | ||
Long-term core inventory | 0 | 0 | |||
Contract assets, net | 1,726,000 | (8,773,000) | 6,882,000 | ||
Contract liabilities, net | 3,172,000 | 2,724,000 | 5,837,000 | ||
Accrued core payments | 0 | 0 | |||
Net cash used in operating activities | (644,000) | $ (6,409,000) | (8,148,000) | ||
As Revised [Member] | ASC 606 [Member] | |||||
Cash flows from operating activities [Abstract] | |||||
Net income | 5,723,000 | 7,295,000 | 13,018,000 | ||
Deferred income taxes | (103,000) | (433,000) | |||
Accounts receivable | 16,038,000 | 14,683,000 | |||
Inventory | (14,942,000) | (18,718,000) | |||
Other assets | 1,432,000 | 2,943,000 | |||
Long-term core inventory | (2,878,000) | (5,155,000) | |||
Contract assets, net | 0 | 0 | |||
Contract liabilities, net | 0 | 0 | |||
Accrued core payments | (3,077,000) | (6,164,000) | |||
Net cash used in operating activities | (644,000) | (8,148,000) | |||
Adoption of ASC 606 [Member] | ASC 606 [Member] | |||||
Cash flows from operating activities [Abstract] | |||||
Net income | $ (128,000) | 525,000 | 397,000 | ||
Deferred income taxes | 312,000 | 226,000 | |||
Accounts receivable | (6,705,000) | (11,864,000) | |||
Inventory | (3,552,000) | (9,834,000) | |||
Other assets | (1,433,000) | (2,963,000) | |||
Long-term core inventory | 2,878,000 | 5,155,000 | |||
Contract assets, net | 1,726,000 | 6,882,000 | |||
Contract liabilities, net | 3,172,000 | 5,837,000 | |||
Accrued core payments | 3,077,000 | 6,164,000 | |||
Net cash used in operating activities | $ 0 | $ 0 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Goodwill (Details) - USD ($) | 6 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Goodwill [Roll Forward] | ||
Balance at beginning of period | $ 2,551,000 | $ 2,551,000 |
Goodwill acquired | 0 | 0 |
Translation adjustment | 0 | 0 |
Impairment | 0 | 0 |
Balance at end of period | $ 2,551,000 | $ 2,551,000 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Intangible Assets Subject to Amortization (Details) - USD ($) | 6 Months Ended | |
Sep. 30, 2018 | Mar. 31, 2018 | |
Intangible assets subject to amortization [Abstract] | ||
Gross Carrying Value | $ 7,084,000 | $ 7,086,000 |
Accumulated Amortization | $ 3,704,000 | 3,320,000 |
Trademarks [Member] | ||
Intangible assets subject to amortization [Abstract] | ||
Weighted Average Amortization Period | 9 years | |
Gross Carrying Value | $ 885,000 | 885,000 |
Accumulated Amortization | $ 392,000 | 316,000 |
Customer Relationships [Member] | ||
Intangible assets subject to amortization [Abstract] | ||
Weighted Average Amortization Period | 13 years | |
Gross Carrying Value | $ 5,900,000 | 5,900,000 |
Accumulated Amortization | $ 3,195,000 | 2,937,000 |
Developed Technology [Member] | ||
Intangible assets subject to amortization [Abstract] | ||
Weighted Average Amortization Period | 3 years | |
Gross Carrying Value | $ 299,000 | 301,000 |
Accumulated Amortization | $ 117,000 | $ 67,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Amortization Expense (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Amortization expense for acquired intangible assets [Abstract] | ||||
Amortization expense | $ 192,000 | $ 180,000 | $ 384,000 | $ 325,000 |
Estimated future amortization expense for intangible assets subject to amortization [Abstract] | ||||
2019 - remaining six months | 385,000 | 385,000 | ||
2,020 | 710,000 | 710,000 | ||
2,021 | 613,000 | 613,000 | ||
2,022 | 580,000 | 580,000 | ||
2,023 | 580,000 | 580,000 | ||
Thereafter | 512,000 | 512,000 | ||
Total | $ 3,380,000 | $ 3,380,000 |
Accounts Receivable - Net (Deta
Accounts Receivable - Net (Details) - USD ($) | Sep. 30, 2018 | Mar. 31, 2018 | |
Accounts Receivable, Net [Abstract] | |||
Accounts receivable - trade | $ 77,686,000 | $ 83,700,000 | |
Allowance for bad debts | (4,348,000) | (4,142,000) | |
Customer allowances earned | 0 | ||
Customer payment discrepancies | (827,000) | (1,110,000) | |
Customer returns RGA issued | (16,426,000) | (15,274,000) | |
Customer core returns accruals | 0 | ||
Less: total accounts receivable offset accounts | (21,601,000) | (20,526,000) | |
Total accounts receivable - net | $ 56,085,000 | 63,174,000 | |
As Previously Reported [Member] | ASC 606 [Member] | |||
Accounts Receivable, Net [Abstract] | |||
Accounts receivable - trade | 83,700,000 | ||
Allowance for bad debts | (4,142,000) | ||
Customer allowances earned | (11,370,000) | ||
Customer payment discrepancies | (1,110,000) | ||
Customer returns RGA issued | (15,274,000) | ||
Customer core returns accruals | (36,066,000) | ||
Less: total accounts receivable offset accounts | (67,962,000) | ||
Total accounts receivable - net | 15,738,000 | ||
Adoption of ASC 2014-09 [Member] | ASC 606 [Member] | |||
Accounts Receivable, Net [Abstract] | |||
Accounts receivable - trade | 0 | ||
Allowance for bad debts | 0 | ||
Customer allowances earned | [1] | 11,370,000 | |
Customer payment discrepancies | 0 | ||
Customer returns RGA issued | 0 | ||
Customer core returns accruals | [2] | 36,066,000 | |
Less: total accounts receivable offset accounts | 47,436,000 | ||
Total accounts receivable - net | 47,436,000 | ||
Contract liabilities | 4,697,000 | ||
Long-term contract liabilities | $ 31,369,000 | ||
[1] | Customer allowances earned have been reclassified to contract liabilities in the consolidated balance sheet at March 31, 2018. | ||
[2] | Customer core returns accruals of $4,697,000 have been reclassified to contract liabilities and customer core returns accruals of $31,369,000 have been reclassified to long-term contract liabilities in the consolidated balance sheet at March 31, 2018. |
Accounts Receivable - Net, Warr
Accounts Receivable - Net, Warranty Returns (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Mar. 31, 2018 | |
Warranty Returns [Abstract] | |||||
Warranty accrual included in customer returns RGA issued | $ 6,390,000 | $ 6,390,000 | $ 7,204,000 | ||
Warranty accrual included in customer finished goods returns accrual | 10,020,000 | 10,020,000 | $ 9,442,000 | ||
Change in warranty return accrual [Roll Forward] | |||||
Balance at beginning of period | 14,543,000 | $ 12,849,000 | 16,646,000 | $ 14,286,000 | |
Charged to expense/additions | 30,860,000 | 29,359,000 | 54,753,000 | 51,565,000 | |
Amounts processed | (28,993,000) | (27,409,000) | (54,989,000) | (51,052,000) | |
Balance at end of period | $ 16,410,000 | $ 14,799,000 | $ 16,410,000 | $ 14,799,000 |
Inventory (Details)
Inventory (Details) - USD ($) | Sep. 30, 2018 | Mar. 31, 2018 | |
Inventory [Abstract] | |||
Raw materials | $ 89,919,000 | $ 77,135,000 | |
Work-in-process | 3,811,000 | 2,583,000 | |
Finished goods | 104,584,000 | 88,174,000 | |
Inventory, gross | 198,314,000 | 167,892,000 | |
Less allowance for excess and obsolete inventory | (10,027,000) | (6,682,000) | |
Total inventory - net | 188,287,000 | 161,210,000 | |
Inventory unreturned | $ 9,100,000 | 7,508,000 | |
Long-term core inventory [Abstract] | |||
Used cores held at the Company's facilities | 0 | ||
Used cores expected to be returned by customers | 0 | ||
Remanufactured cores held in finished goods | 0 | ||
Remanufactured cores held at customers' locations | 0 | ||
Long-term core inventory - gross | 0 | ||
Less allowance for excess and obsolete inventory | 0 | ||
Total | 0 | ||
Long-term core inventory deposits | 0 | ||
As Revised [Member] | ASC 606 [Member] | |||
Inventory [Abstract] | |||
Raw materials | 25,805,000 | ||
Work-in-process | 635,000 | ||
Finished goods | 53,973,000 | ||
Inventory, gross | 80,413,000 | ||
Less allowance for excess and obsolete inventory | (4,138,000) | ||
Total inventory - net | 76,275,000 | ||
Inventory unreturned | 7,508,000 | ||
Long-term core inventory [Abstract] | |||
Used cores held at the Company's facilities | 53,278,000 | ||
Used cores expected to be returned by customers | 12,970,000 | ||
Remanufactured cores held in finished goods | 34,201,000 | ||
Remanufactured cores held at customers' locations | 200,389,000 | ||
Long-term core inventory - gross | 300,838,000 | ||
Less allowance for excess and obsolete inventory | (2,544,000) | ||
Total | 298,294,000 | ||
Long-term core inventory deposits | 5,569,000 | ||
Adoption of ASC 2014-09 [Member] | ASC 606 [Member] | |||
Inventory [Abstract] | |||
Raw materials | [1] | 51,330,000 | |
Work-in-process | [1] | 1,948,000 | |
Finished goods | [2] | 34,201,000 | |
Inventory, gross | 87,479,000 | ||
Less allowance for excess and obsolete inventory | [3] | (2,544,000) | |
Total inventory - net | 84,935,000 | ||
Inventory unreturned | 0 | ||
Long-term core inventory [Abstract] | |||
Used cores held at the Company's facilities | [1] | (53,278,000) | |
Used cores expected to be returned by customers | [4] | (12,970,000) | |
Remanufactured cores held in finished goods | [2] | (34,201,000) | |
Remanufactured cores held at customers' locations | [5] | (200,389,000) | |
Long-term core inventory - gross | (300,838,000) | ||
Less allowance for excess and obsolete inventory | [3] | 2,544,000 | |
Total | (298,294,000) | ||
Long-term core inventory deposits | [6] | $ (5,569,000) | |
[1] | Used cores held at the Company's facilities of $53,278,000 have been reclassified to raw materials and work-in-process in the consolidated balance sheet at March 31, 2018. | ||
[2] | Remanufactured Cores held in finished goods of $34,201,000 have been reclassified to finished goods in the consolidated balance sheet at March 31, 2018. | ||
[3] | The allowance for excess and obsolete inventory of $2,544,000 previously included in long-term core inventory has been reclassified to inventory-net in the consolidated balance sheet at March 31, 2018. | ||
[4] | Used cores expected to be returned by customers of $12,970,000 have been reclassified to contract assets in the consolidated balance sheet at March 31, 2018. | ||
[5] | Remanufactured cores held at customers' locations of $200,389,000 have been reclassified to current and long-term contract assets in the consolidated balance sheet at March 31, 2018. | ||
[6] | Long-term core inventory deposits of $5,569,000 have been reclassified to long-term contract assets in the consolidated balance sheet at March 31, 2018. |
Contract Assets (Details)
Contract Assets (Details) - USD ($) | Sep. 30, 2018 | Mar. 31, 2018 |
Short-term contract assets [Abstract] | ||
Cores expected to be returned by customers | $ 16,775,000 | $ 15,614,000 |
Upfront payments to customers | 3,441,000 | 3,979,000 |
Core premiums paid to customers | 4,056,000 | 3,613,000 |
Total short-term contract assets | 24,272,000 | 23,206,000 |
Long-term contract assets [Abstract] | ||
Remanufactured cores held at customers' locations | 204,692,000 | 197,067,000 |
Upfront payments to customers | 4,050,000 | 5,492,000 |
Core premiums paid to customers | 16,127,000 | 14,603,000 |
Long-term core inventory deposits | 5,569,000 | 5,569,000 |
Total long-term contract assets | 230,438,000 | 222,731,000 |
Total contract assets | $ 254,710,000 | $ 245,937,000 |
Significant Customer and Othe_3
Significant Customer and Other Information (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Mar. 31, 2018 | |
Sales [Member] | |||||
Concentration Risk [Abstract] | |||||
Concentration risk percentage | 100.00% | 100.00% | 100.00% | 100.00% | |
Sales [Member] | Customer A [Member] | |||||
Concentration Risk [Abstract] | |||||
Concentration risk percentage | 39.00% | 47.00% | 38.00% | 44.00% | |
Sales [Member] | Customer B [Member] | |||||
Concentration Risk [Abstract] | |||||
Concentration risk percentage | 26.00% | 26.00% | 24.00% | 26.00% | |
Sales [Member] | Customer C [Member] | |||||
Concentration Risk [Abstract] | |||||
Concentration risk percentage | 20.00% | 13.00% | 22.00% | 15.00% | |
Sales [Member] | Rotating Electrical Products [Member] | |||||
Concentration Risk [Abstract] | |||||
Concentration risk percentage | 80.00% | 76.00% | 79.00% | 77.00% | |
Sales [Member] | Wheel Hub Products [Member] | |||||
Concentration Risk [Abstract] | |||||
Concentration risk percentage | 14.00% | 18.00% | 16.00% | 18.00% | |
Sales [Member] | Brake Master Cylinders Products [Member] | |||||
Concentration Risk [Abstract] | |||||
Concentration risk percentage | 2.00% | 3.00% | 2.00% | 3.00% | |
Sales [Member] | Other Products [Member] | |||||
Concentration Risk [Abstract] | |||||
Concentration risk percentage | 4.00% | 3.00% | 3.00% | 2.00% | |
Accounts Receivable - Trade [Member] | Customer A [Member] | |||||
Concentration Risk [Abstract] | |||||
Concentration risk percentage | 31.00% | 36.00% | |||
Accounts Receivable - Trade [Member] | Customer B [Member] | |||||
Concentration Risk [Abstract] | |||||
Concentration risk percentage | 23.00% | 16.00% | |||
Accounts Receivable - Trade [Member] | Customer C [Member] | |||||
Concentration Risk [Abstract] | |||||
Concentration risk percentage | 12.00% | 22.00% |
Debt, Credit Facility (Details)
Debt, Credit Facility (Details) - Credit Facility [Member] - USD ($) | 1 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Mar. 31, 2018 | |
Credit Facility [Abstract] | ||
Maximum borrowing capacity | $ 145,000,000 | |
Debt instrument, maturity date | Jun. 3, 2020 | |
Write off debt issuance costs | $ 303,000 | |
Maximum [Member] | ||
Credit Facility [Abstract] | ||
Dividend payments, annual maximum amount permitted | $ 15,000,000 | |
Term Loans [Member] | ||
Credit Facility [Abstract] | ||
Maximum borrowing capacity | 25,000,000 | |
Quarterly principal payments | $ 781,250 | |
Interest rate at end of period | 4.42% | |
Revolving Facility [Member] | ||
Credit Facility [Abstract] | ||
Maximum borrowing capacity | $ 120,000,000 | |
Interest rate at end of period | 4.52% | |
Outstanding balance under revolving loan | $ 54,000,000 | |
Revolving Facility [Member] | Letters of Credit [Member] | ||
Credit Facility [Abstract] | ||
Maximum borrowing capacity | $ 15,000,000 |
Debt, Amended Credit Facility a
Debt, Amended Credit Facility and Term Loans (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Mar. 31, 2018 | |
Amended Credit Facility [Abstract] | ||||
Debt issuance costs | $ 1,757,000 | $ 443,000 | ||
Summarized information about the term loan [Abstract] | ||||
Less current portion of term loan | (3,685,000) | $ (3,068,000) | ||
Long-term portion of term loan | 26,032,000 | 13,913,000 | ||
Term Loans [Member] | ||||
Summarized information about the term loan [Abstract] | ||||
Principal amount of term loan | 30,000,000 | 17,188,000 | ||
Unamortized financing fees | (283,000) | (207,000) | ||
Net carrying amount of term loan | 29,717,000 | 16,981,000 | ||
Less current portion of term loan | (3,685,000) | (3,068,000) | ||
Long-term portion of term loan | 26,032,000 | 13,913,000 | ||
Future repayments of the Term Loan, by fiscal year [Abstract] | ||||
2019 - remaining six months | 1,875,000 | |||
2,020 | 3,750,000 | |||
2,021 | 3,750,000 | |||
2,022 | 3,750,000 | |||
2,023 | 3,750,000 | |||
Thereafter | 13,125,000 | |||
Total payments | $ 30,000,000 | $ 17,188,000 | ||
Amended Credit Facility [Member] | ||||
Amended Credit Facility [Abstract] | ||||
Debt instrument, maturity date | Jun. 5, 2023 | |||
Debt issuance costs | $ 1,757,000 | |||
Amended Credit Facility [Member] | Minimum [Member] | ||||
Amended Credit Facility [Abstract] | ||||
Facility fee on total leverage ratio | 0.375% | |||
Amended Credit Facility [Member] | Maximum [Member] | ||||
Amended Credit Facility [Abstract] | ||||
Dividend payments, annual maximum amount permitted | $ 20,000,000 | |||
Facility fee on total leverage ratio | 0.50% | |||
Amended Credit Facility [Member] | LIBOR [Member] | ||||
Amended Credit Facility [Abstract] | ||||
Reference interest rate under option 1, floor | 2.25% | |||
Interest rate over LIBOR rate under option 1 | 2.50% | |||
Interest rate above base rate under option 2 | 2.75% | |||
Amended Credit Facility [Member] | Reference Rate [Member] | ||||
Amended Credit Facility [Abstract] | ||||
Reference interest rate under option 1, floor | 1.25% | |||
Interest rate over LIBOR rate under option 1 | 1.50% | |||
Interest rate above base rate under option 2 | 1.75% | |||
Amended Credit Facility [Member] | Revolving Facility [Member] | ||||
Amended Credit Facility [Abstract] | ||||
Maximum borrowing capacity | 200,000,000 | |||
Interest rate at end of period | 4.66% | |||
Outstanding balance under revolving loan | $ 52,906,000 | |||
Amount available under revolving facility | 141,367,000 | |||
Amended Credit Facility [Member] | Revolving Facility [Member] | Canadian Borrowers [Member] | ||||
Amended Credit Facility [Abstract] | ||||
Maximum borrowing capacity | 20,000,000 | |||
Amended Credit Facility [Member] | Revolving Facility [Member] | Letters of Credit [Member] | ||||
Amended Credit Facility [Abstract] | ||||
Maximum borrowing capacity | 15,000,000 | |||
Outstanding balance under revolving loan | 734,000 | |||
Amended Credit Facility [Member] | Term Loans [Member] | ||||
Amended Credit Facility [Abstract] | ||||
Maximum borrowing capacity | $ 30,000,000 | |||
Quarterly principal payments | $ 937,500 | |||
Interest rate at end of period | 4.58% |
Contract Liabilities (Details)
Contract Liabilities (Details) - USD ($) | Sep. 30, 2018 | Mar. 31, 2018 |
Short-term contract liabilities [Abstract] | ||
Customer allowances earned | $ 11,381,000 | $ 11,370,000 |
Customer core returns accruals | 4,743,000 | 4,697,000 |
Accrued core payment, net | 15,364,000 | 16,536,000 |
Total short-term contract liabilities | 31,488,000 | 32,603,000 |
Long-term contract liabilities [Abstract] | ||
Customer core returns accruals | 34,000,000 | 29,710,000 |
Accrued core payment, net | 18,535,000 | 18,473,000 |
Total long-term contract liabilities | 52,535,000 | 48,183,000 |
Total contract liabilities | $ 84,023,000 | $ 80,786,000 |
Accounts Receivable Discount _3
Accounts Receivable Discount Programs (Details) - USD ($) | 6 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Accounts Receivable Discount Programs [Abstract] | ||
Receivables discounted | $ 191,849,000 | $ 175,209,000 |
Weighted average days | 338 days | 341 days |
Annualized weighted average discount rate | 4.10% | 3.10% |
Amount of discount as interest expense | $ 7,441,000 | $ 5,090,000 |
Net Income (Loss) Per Share (De
Net Income (Loss) Per Share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Reconciliation of basic and diluted net income (loss) per share [Abstract] | |||||
Net income (loss) | $ 3,513,000 | $ 5,595,000 | $ 7,820,000 | $ (1,982,000) | $ 13,415,000 |
Basic shares (in shares) | 18,878,674 | 18,718,709 | 18,887,214 | 18,687,179 | |
Effect of potentially dilutive securities (in shares) | 440,791 | 638,100 | 0 | 683,965 | |
Diluted shares (in shares) | 19,319,465 | 19,356,809 | 18,887,214 | 19,371,144 | |
Net income (loss) per share [Abstract] | |||||
Basic net income (loss) per share (in dollars per share) | $ 0.19 | $ 0.30 | $ 0.42 | $ (0.10) | $ 0.72 |
Diluted net income (loss) per share (in dollars per share) | $ 0.18 | $ 0.29 | $ 0.40 | $ (0.10) | $ 0.69 |
Options [Member] | |||||
Antidilutive Securities [Abstract] | |||||
Antidilutive shares excluded from computation of earnings per share (in shares) | 746,094 | 455,339 | 1,504,794 | 292,239 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Income Taxes [Abstract] | ||||||
Income tax expense (benefit) | $ 1,181,000 | $ 3,598,000 | $ 4,434,000 | $ (266,000) | $ 8,032,000 | |
Effective income tax rate | 25.20% | 39.10% | 11.80% | 37.50% | ||
Corporate tax rate | 21.00% | 35.00% | ||||
Years subject to examination | 2018 2017 2016 2015 |
Financial Risk Management and_3
Financial Risk Management and Derivatives (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Mar. 31, 2018 | |
Foreign Currency Exchange Contracts [Abstract] | |||||
Forward foreign currency exchange contracts included in prepaid and other current assets | $ 411,000 | $ 411,000 | $ 1,179,000 | ||
Forward Foreign Currency Exchange Contracts [Member] | |||||
Foreign Currency Exchange Contracts [Abstract] | |||||
Notional amount of foreign currency derivatives | 30,599,000 | 30,599,000 | $ 31,304,000 | ||
Forward Foreign Currency Exchange Contracts [Member] | General and Administrative Expenses [Member] | |||||
Foreign Currency Exchange Contracts [Abstract] | |||||
Forward foreign currency exchange contracts | $ 1,898,000 | $ (330,000) | $ (768,000) | $ 722,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Mar. 31, 2018 | |
Forward Foreign Currency Exchange Contracts [Member] | |||||
Other current liabilities [Abstract] | |||||
Net gain (loss) on forward foreign currency exchange contracts | $ 1,898,000 | $ (330,000) | $ (768,000) | $ 722,000 | |
Recurring [Member] | |||||
Short-term investments [Abstract] | |||||
Mutual funds | 3,230,000 | 3,230,000 | $ 2,828,000 | ||
Prepaid expenses and other current assets [Abstract] | |||||
Forward foreign currency exchange contracts | 411,000 | 411,000 | 1,179,000 | ||
Other current liabilities [Abstract] | |||||
Deferred compensation | 3,230,000 | 3,230,000 | 2,828,000 | ||
Recurring [Member] | Level 1 [Member] | |||||
Short-term investments [Abstract] | |||||
Mutual funds | 3,230,000 | 3,230,000 | 2,828,000 | ||
Prepaid expenses and other current assets [Abstract] | |||||
Forward foreign currency exchange contracts | 0 | 0 | 0 | ||
Other current liabilities [Abstract] | |||||
Deferred compensation | 3,230,000 | 3,230,000 | 2,828,000 | ||
Recurring [Member] | Level 2 [Member] | |||||
Short-term investments [Abstract] | |||||
Mutual funds | 0 | 0 | 0 | ||
Prepaid expenses and other current assets [Abstract] | |||||
Forward foreign currency exchange contracts | 411,000 | 411,000 | 1,179,000 | ||
Other current liabilities [Abstract] | |||||
Deferred compensation | 0 | 0 | 0 | ||
Recurring [Member] | Level 3 [Member] | |||||
Short-term investments [Abstract] | |||||
Mutual funds | 0 | 0 | 0 | ||
Prepaid expenses and other current assets [Abstract] | |||||
Forward foreign currency exchange contracts | 0 | 0 | 0 | ||
Other current liabilities [Abstract] | |||||
Deferred compensation | $ 0 | $ 0 | $ 0 |
Share-based Payments - Stock Op
Share-based Payments - Stock Options Activity (Details) - Stock Options [Member] - USD ($) | 6 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Black-Scholes option pricing model assumptions used to derive weighted average fair value of stock options granted [Abstract] | ||
Weighted average risk free interest rate | 2.82% | 1.90% |
Weighted average expected holding period | 5 years 11 months 8 days | 5 years 9 months 25 days |
Weighted average expected volatility | 43.98% | 47.36% |
Weighted average expected dividend yield | 0.00% | 0.00% |
Weighted average fair value of options granted (in dollars per share) | $ 8.71 | $ 12.69 |
Number of Shares [Roll Forward] | ||
Outstanding at beginning of period (in shares) | 1,143,298 | |
Granted (in shares) | 245,400 | 163,100 |
Exercised (in shares) | (39,032) | |
Forfeited (in shares) | (9,700) | |
Outstanding at end of period (in shares) | 1,339,966 | |
Weighted Average Exercise Price [Roll Forward] | ||
Outstanding at beginning of period (in dollars per share) | $ 16.97 | |
Granted (in dollars per share) | 19.02 | |
Exercised (in dollars per share) | 6.24 | |
Forfeited (in dollars per share) | 26.43 | |
Outstanding at end of period (in dollars per share) | $ 17.59 | |
Number of stock options unvested (in shares) | 418,539 | |
Weighted average exercise price of stock options unvested (in dollars per share) | $ 22.66 | |
Total unrecognized compensation expense | $ 3,721,000 | |
Weighted average vesting period over which compensation expense is expected to be recognized | 2 years 1 month 6 days |
Share-based Payments - Restrict
Share-based Payments - Restricted Stock Units (Details) - Restricted Stock [Member] - USD ($) | 6 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Number of Shares [Roll Forward] | ||
Non-vested at beginning of period (in shares) | 133,828 | |
Granted (in shares) | 78,400 | 60,000 |
Vested (in shares) | (45,966) | |
Forfeited (in shares) | (1,434) | |
Non-vested at end of period (in shares) | 164,828 | |
Weighted Average Grant Date Fair Value [Roll Forward] | ||
Non-vested at beginning of period (in dollars per share) | $ 28.37 | |
Granted (in dollars per share) | 19 | |
Vested (in dollars per share) | 28.77 | |
Forfeited (in dollars per share) | 28.37 | |
Non-vested at end of period (in dollars per share) | $ 23.80 | |
Estimated fair value of awards granted | $ 1,490,000 | $ 1,644,000 |
Total unrecognized compensation expense | $ 3,111,000 | |
Weighted average vesting period over which compensation expense is expected to be recognized | 2 years 1 month 6 days |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Abstract] | ||||||
Balance at beginning of period | $ 286,880,000 | |||||
Other comprehensive (loss) income, net of tax | $ (2,000) | $ 668,000 | (717,000) | $ 953,000 | ||
Amounts reclassified from accumulated other comprehensive loss, net of tax | 0 | 0 | 0 | 0 | ||
Balance at end of period | 282,164,000 | 282,164,000 | ||||
ASU 2016-01 [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Abstract] | ||||||
Cumulative-effect adjustment | $ (746,000) | $ 0 | ||||
AOCI Attributable to Parent [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Abstract] | ||||||
Balance at beginning of period | (6,889,000) | (7,156,000) | (5,428,000) | (7,441,000) | ||
Adjusted balance at beginning of period | (6,174,000) | (7,441,000) | ||||
Balance at end of period | (6,891,000) | (6,488,000) | (6,891,000) | (6,488,000) | ||
Unrealized Gain on Short-Term Investments [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Abstract] | ||||||
Balance at beginning of period | 0 | 584,000 | 746,000 | 528,000 | ||
Adjusted balance at beginning of period | 0 | 528,000 | ||||
Other comprehensive (loss) income, net of tax | 0 | 60,000 | 0 | 116,000 | ||
Amounts reclassified from accumulated other comprehensive loss, net of tax | 0 | 0 | 0 | 0 | ||
Balance at end of period | 0 | 644,000 | 0 | 644,000 | ||
Unrealized Gain on Short-Term Investments [Member] | ASU 2016-01 [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Abstract] | ||||||
Cumulative-effect adjustment | (746,000) | 0 | ||||
Foreign Currency Translation [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Abstract] | ||||||
Balance at beginning of period | (6,889,000) | (7,740,000) | (6,174,000) | (7,969,000) | ||
Adjusted balance at beginning of period | (6,174,000) | (7,969,000) | ||||
Other comprehensive (loss) income, net of tax | (2,000) | 608,000 | (717,000) | 837,000 | ||
Amounts reclassified from accumulated other comprehensive loss, net of tax | 0 | 0 | 0 | 0 | ||
Balance at end of period | $ (6,891,000) | $ (7,132,000) | $ (6,891,000) | $ (7,132,000) | ||
Foreign Currency Translation [Member] | ASU 2016-01 [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Abstract] | ||||||
Cumulative-effect adjustment | $ 0 | $ 0 |
Share Repurchase Program (Detai
Share Repurchase Program (Details) - Common Stock [Member] | 6 Months Ended |
Sep. 30, 2018USD ($)shares | |
Equity, Class of Treasury Stock [Line Items] | |
Stock repurchase program, approved amount | $ 37,000,000 |
Shares utilized, amount | 15,692,000 |
Shares available for repurchase, amount | $ 21,308,000 |
Shares repurchased and retired (in shares) | shares | 675,561 |