Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Mar. 27, 2022 | May 20, 2022 | Sep. 26, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Mar. 27, 2022 | ||
Document Transition Report | false | ||
Entity File Number | 001-33938 | ||
Entity Registrant Name | TESSCO Technologies Incorporated | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 52-0729657 | ||
Entity Address, Address Line One | 11126 McCormick Road | ||
Entity Address, City or Town | Hunt Valley | ||
Entity Address, State or Province | MD | ||
Entity Address, Postal Zip Code | 21031 | ||
City Area Code | 410 | ||
Local Phone Number | 229-1000 | ||
Title of 12(b) Security | Common Stock | ||
Trading Symbol | TESS | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 48,160,896 | ||
Entity Common Stock, Shares Outstanding | 9,041,236 | ||
Auditor Name | Ernst & Young LLP | ||
Auditor Location | Baltimore, Maryland | ||
Auditor Firm ID | 42 | ||
Entity Central Index Key | 0000927355 | ||
Current Fiscal Year End Date | --03-27 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Mar. 27, 2022 | Mar. 28, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 1,754,000 | $ 1,110,000 |
Trade accounts receivable, net | 75,546,300 | 70,045,700 |
Product inventory, net | 55,945,300 | 53,060,000 |
Income taxes receivable | 4,293,400 | 10,432,500 |
Prepaid expenses and other current assets | 2,961,700 | 3,980,900 |
Current portion of assets held for sale | 1,196,900 | |
Total current assets | 140,500,700 | 139,826,000 |
Property and equipment, net | 10,835,900 | 12,571,600 |
Intangible assets, net | 30,595,600 | 19,136,500 |
Income taxes receivable, non-current | 3,118,600 | |
Lease asset - right of use | 8,910,400 | 11,285,800 |
Other long-term assets | 8,552,100 | 6,258,000 |
Assets | 202,513,300 | 189,077,900 |
Current liabilities: | ||
Trade accounts payable | 65,254,900 | 59,415,600 |
Payroll, benefits and taxes | 5,230,500 | 6,279,800 |
Income and sales tax liabilities | 1,188,100 | 803,900 |
Accrued expenses and other current liabilities | 1,455,500 | 2,912,300 |
Lease liability, current | 2,566,300 | 2,573,500 |
Current portion of long-term debt | 340,300 | |
Total current liabilities | 76,035,600 | 71,985,100 |
Deferred tax liabilities, net | 145,600 | 26,500 |
Revolving line of credit | 36,914,600 | 30,583,200 |
Non-current lease liability | 6,586,200 | 8,923,500 |
Long-term debt | 6,155,000 | |
Other non-current liabilities | 753,200 | 809,400 |
Total liabilities | 126,590,200 | 112,327,700 |
Shareholders' equity: | ||
Preferred stock, $0.01 par value per share, 500,000 shares authorized and no shares issued and outstanding | ||
Common stock, $0.01 par value per share, 15,000,000 shares authorized, 9,013,449 shares issued and 8,994,249 shares outstanding as of March 27, 2022, and 8,844,083 shares issued and 8,833,833 shares outstanding as of March 28, 2021 | 105,900 | 104,200 |
Additional paid-in capital | 69,166,100 | 67,227,700 |
Treasury stock, at cost, 19,200 shares as of December 26, 2021 and 10,250 shares as of March 28, 2021 | (129,200) | (62,800) |
Retained earnings | 6,780,300 | 9,481,100 |
Total shareholders' equity | 75,923,100 | 76,750,200 |
Total liabilities and shareholders' equity | $ 202,513,300 | $ 189,077,900 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 27, 2022 | Mar. 28, 2021 |
Shareholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 500,000 | 500,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars shares) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 15,000,000 | 15,000,000 |
Common stock, issued (in shares) | 9,013,449 | 8,844,083 |
Common stock, outstanding (in shares) | 8,994,249 | 8,833,833 |
Treasury stock (in shares) | 19,200 | 10,250 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) - USD ($) | 12 Months Ended | ||
Mar. 27, 2022 | Mar. 28, 2021 | Mar. 29, 2020 | |
Consolidated Statements of Income (Loss) | |||
Revenues | $ 417,544,800 | $ 373,340,700 | $ 409,014,400 |
Cost of goods sold | 339,507,900 | 305,625,100 | 329,372,500 |
Gross profit | 78,036,900 | 67,715,600 | 79,641,900 |
Selling, general and administrative expenses | 81,543,400 | 85,507,100 | 92,005,200 |
Goodwill impairment | 9,108,600 | ||
Restructuring charge | 488,000 | ||
Operating income (loss) | (3,506,500) | (17,791,500) | (21,959,900) |
Interest expense, net | 876,900 | 426,300 | 1,116,300 |
Income (loss) from continuing operations before income taxes | (4,383,400) | (18,217,800) | (23,076,200) |
Provision for (benefit from) income taxes | (1,071,300) | (3,844,500) | (7,474,800) |
Net income (loss) from continuing operations | (3,312,100) | (14,373,300) | (15,601,400) |
Income (loss) from discontinued operations, net of taxes | 611,300 | 5,630,400 | (5,967,500) |
Net income (loss) | $ (2,700,800) | $ (8,742,900) | $ (21,568,900) |
Basic (loss) income per share | |||
Continuing operations (in dollars per share) | $ (0.37) | $ (1.65) | $ (1.83) |
Discontinued operations (in dollars per share) | 0.07 | 0.65 | (0.70) |
Consolidated operations (in dollars per share) | (0.30) | (1.01) | (2.53) |
Diluted (loss) income per share | |||
Continuing operations (in dollars per share) | (0.37) | (1.65) | (1.83) |
Discontinued operations (in dollars per share) | 0.07 | 0.65 | (0.70) |
Consolidated operations (in dollars per share) | $ (0.30) | $ (1.01) | $ (2.53) |
Basic weighted-average common shares outstanding (in shares) | 8,927,837 | 8,697,369 | 8,526,965 |
Diluted weighted-average common shares outstanding (in shares) | 8,927,837 | 8,697,369 | 8,526,965 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) | Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Total |
Balance at Mar. 31, 2019 | $ 99,800 | $ 62,666,400 | $ (57,614,100) | $ 103,635,100 | $ 108,787,200 |
Balance (in shares) at Mar. 31, 2019 | 8,468,529 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Proceeds from issuance of stock | $ 700 | 797,300 | 798,000 | ||
Proceeds from issuance of stock (in shares) | 72,430 | ||||
Treasury stock purchases | (882,100) | (882,100) | |||
Treasury stock purchases (in shares) | (55,321) | ||||
Non-cash stock compensation expense | $ 400 | 1,174,200 | 1,174,600 | ||
Non-cash stock compensation expense (in shares) | 43,786 | ||||
Exercise of stock options (in dollars) | $ 500 | 680,600 | 681,100 | ||
Exercise of stock options (in shares) | 48,125 | ||||
Cash dividends paid | (5,287,200) | (5,287,200) | |||
Net income (loss) | (21,568,900) | (21,568,900) | |||
Balance at Mar. 29, 2020 | $ 101,400 | 65,318,500 | (58,496,200) | 76,779,000 | 83,702,700 |
Balance (in shares) at Mar. 29, 2020 | 8,577,549 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Proceeds from issuance of stock | $ 1,300 | 699,700 | 701,000 | ||
Proceeds from issuance of stock (in shares) | 130,907 | ||||
Treasury stock purchases | (121,600) | (121,600) | |||
Treasury stock purchases (in shares) | (23,031) | ||||
Non-cash stock compensation expense | $ 1,500 | 1,209,500 | $ 1,211,000 | ||
Non-cash stock compensation expense (in shares) | 148,408 | ||||
Exercise of stock options (in shares) | 0 | ||||
Retirement of treasury stock | 58,555,000 | (58,555,000) | |||
Net income (loss) | (8,742,900) | $ (8,742,900) | |||
Balance at Mar. 28, 2021 | $ 104,200 | 67,227,700 | (62,800) | 9,481,100 | $ 76,750,200 |
Balance (in shares) at Mar. 28, 2021 | 8,833,833 | 8,833,833 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of common stock for 401k match | $ 700 | 432,100 | $ 432,800 | ||
Issuance of common stock for 401k match (in shares) | 67,556 | ||||
Proceeds from issuance of stock | $ 300 | 157,200 | 157,500 | ||
Proceeds from issuance of stock (in shares) | 30,169 | ||||
Treasury stock purchases | (66,400) | (66,400) | |||
Treasury stock purchases (in shares) | (8,950) | ||||
Non-cash stock compensation expense | $ 700 | 1,338,200 | 1,338,900 | ||
Non-cash stock compensation expense (in shares) | 69,141 | ||||
Exercise of stock options (in dollars) | 10,900 | $ 10,900 | |||
Exercise of stock options (in shares) | 2,500 | 2,500 | |||
Net income (loss) | (2,700,800) | $ (2,700,800) | |||
Balance at Mar. 27, 2022 | $ 105,900 | $ 69,166,100 | $ (129,200) | $ 6,780,300 | $ 75,923,100 |
Balance (in shares) at Mar. 27, 2022 | 8,994,249 | 8,994,249 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Mar. 27, 2022 | Mar. 28, 2021 | Mar. 29, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income (loss) | $ (2,700,800) | $ (8,742,900) | $ (21,568,900) |
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 2,484,900 | 3,744,500 | 4,026,100 |
Goodwill impairment | 11,677,700 | ||
Gain on sale of discontinued operations | (3,020,800) | ||
Non-cash stock-based compensation expense | 1,338,900 | 1,211,000 | 1,174,600 |
Deferred income taxes | 119,100 | 3,032,500 | (2,977,200) |
Change in trade accounts receivable | (5,500,600) | 12,676,000 | 11,097,800 |
Change in product inventory | (1,688,400) | 9,279,900 | 2,697,400 |
Change in prepaid expenses and other current assets | 1,294,200 | 2,678,200 | 92,400 |
Change in income taxes receivable | 3,020,500 | (4,685,800) | (6,237,100) |
Change in other assets and other liabilities | (1,731,000) | (3,304,200) | (251,400) |
Change in trade accounts payable | 2,514,700 | (15,197,600) | 905,300 |
Change in payroll, benefits and taxes | (1,049,300) | 2,021,500 | (1,671,200) |
Change in sales tax liabilities | 384,200 | 353,100 | (298,200) |
Change in accrued expenses and other current liabilities | (982,200) | (729,600) | 2,240,900 |
Net cash provided by (used in) operating activities | (2,495,800) | (684,200) | 908,200 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Capital expenditures | (9,500,800) | (11,855,900) | (6,845,700) |
Proceeds from sale of discontinued operations | 9,201,500 | ||
Net cash provided by (used in) investing activities | (9,500,800) | (2,654,400) | (6,845,700) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Net borrowings (repayments) from revolving line of credit short term | (25,565,300) | 11,185,800 | |
Borrowings from revolving line of credit long term | 266,634,400 | 137,868,500 | |
Repayments to revolving line of credit long term | (260,303,000) | (107,283,900) | |
Payments of debt issuance costs | (224,100) | (698,300) | |
Payments on long term debt | (57,800) | (2,300) | |
Proceeds from debt issuance | 6,500,000 | ||
Proceeds from issuance of stock | 157,500 | 199,200 | 262,400 |
Proceeds from exercise of stock options | 680,600 | ||
Cash dividends paid | (5,287,200) | ||
Purchase of treasury stock and repurchase of stock from employees and directors for minimum tax withholdings | (66,400) | (121,600) | (882,100) |
Net cash provided by (used in) financing activities | 12,640,600 | 4,398,600 | 5,957,200 |
Net increase (decrease) in cash and cash equivalents | 644,000 | 1,060,000 | 19,700 |
CASH AND CASH EQUIVALENTS, beginning of period | 1,110,000 | 50,000 | 30,300 |
CASH AND CASH EQUIVALENTS, end of period | 1,754,000 | 1,110,000 | 50,000 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||
Capital expenditures included in accounts payable | 4,494,900 | $ 1,170,300 | $ 2,492,500 |
Right-of-use asset acquired in exchange for lease liability | $ 247,400 |
Organization
Organization | 12 Months Ended |
Mar. 27, 2022 | |
Organization | |
Organization | Note 1. Organization TESSCO Technologies Incorporated, a Delaware corporation (“Tessco”, “we”, “our”, or the “Company”), architects and delivers innovative product and value chain solutions to support wireless systems. The Company provides marketing and sales services, knowledge and supply chain management, product-solution delivery and control systems utilizing extensive internet and information technology. Approximately 98% of the Company’s sales are made to customers in the United States. The Company takes orders in several ways, including phone, fax, online and through electronic data interchange. Almost all of the Company’s sales are made in United States Dollars. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 27, 2022 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. Fiscal Year The Company's fiscal year is the 52 or 53 weeks ending on the Sunday falling on or between March 26 and April 1 to allow the financial year to better reflect the Company's natural weekly accounting and business cycle. The fiscal years ended March 27, 2022, March 28, 2021 and March 29, 2020 each contained 52 weeks. Reclassifications Certain prior period amounts have been reclassified to conform to current year presentations, including the Change in income taxes receivables on the Company’s Consolidated Statements of Cash Flows. Cash and Cash Equivalents Cash and cash equivalents include cash and highly liquid investments with an original maturity of 90 days or less. Allowance for Doubtful Accounts The Company uses estimates to determine the amount of the allowance for doubtful accounts necessary to reduce accounts receivable to their expected net realizable value. The Company estimates the amount of the required allowance by reviewing the status of past-due receivables and analyzing historical bad debt trends and current economic conditions. Actual collection experience has not varied significantly from estimates, due primarily to consistent credit policies, collection experience, as well as the Company’s stability as it relates to its current customer base. Typical payments from a large majority of commercial customers are due 30 days from the date of the invoice. The Company charges-off receivables deemed to be uncollectible to the allowance for doubtful accounts. Accounts receivable balances are not collateralized by our customers. At March 27, 2022 and March 28, 2021, the allowance for doubtful accounts related to customers in continuing operations was $1,057,800 and $1,584,200, respectively. Product Inventory Product inventory, consisting primarily of finished goods, is stated at the lower of cost or net realizable value, cost being determined on the first-in, first-out (“FIFO”) method and includes certain charges directly and indirectly incurred in bringing product inventories to the point of sale. Inventory is written down for estimated obsolescence equal to the difference between the carrying value of inventory and the estimated net realizable value, based upon specifically known inventory-related risks (such as technological obsolescence and the nature of supplier terms surrounding price protection and product returns), and assumptions about future demand. At March 27, 2022 and March 28, 2021, the Company had a reserve for excess and obsolete inventory of $4,567,700 and $3,359,000, respectively. The increase in the reserve is primarily related to an increase in excess inventory levels. Property and Equipment Property and equipment is stated at cost. Depreciation is recorded using the straight-line method over the estimated useful lives of the assets as follows: Useful lives Information technology equipment 1 - 3 years Furniture, telephone system, equipment and tooling 3 - 10 years Building, building improvements and leasehold improvements 2 - 40 years Leasehold improvements are amortized over the shorter of their useful lives or the remaining lease term. Intangibles The Company capitalizes computer software costs incurred in connection with developing or obtaining computer software for internal use when both the preliminary project stage is completed and when management authorizes and commits to funding the project and it is probable that the project will be completed. Development and acquisition costs are capitalized when the focus of the software project is either to develop new software, to increase the life of existing software or to add significantly to the functionality of existing software. Capitalization ceases when the software project is substantially complete and ready for its intended use. Amortization is recorded using the straight-line method over the estimated useful life which ranges from one Impairment of Long-Lived Assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or group of assets may not be fully recoverable. These events or changes in circumstances may include a significant deterioration of operating results, changes in business plans, or changes in anticipated future cash flows. If an impairment indicator is present, the Company evaluates recoverability by a comparison of the carrying amount of the assets to future undiscounted net cash flows expected to be generated by the assets. Assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of the cash flows generated by other asset groups. If future undiscounted cash flows are less than the carrying value of the asset group, the Company calculates the fair value of the asset group. If the assets are impaired, the impairment recognized is measured by the amount by which the carrying amount exceeds the fair value of the assets. Fair value is generally determined by estimates of discounted cash flows. The discount rate used in any estimate of discounted cash flows would be the rate required for a similar investment of like risk. There were no impairment charges of long-lived assets in fiscal years 2022, 2021, or 2020. Indefinite-Lived Intangible Assets The indefinite-lived intangible asset impairment test involves an initial qualitative analysis to determine if it is more likely than not that an intangible asset’s fair value is less than its carrying amount. If qualitative factors suggest a possible impairment, the Company then determines the fair value of the intangible asset. If the fair value of the intangible asset is less than its carrying value, an impairment loss is recognized for an amount equal to the difference. The intangible asset is then carried at its new fair value. We measure the fair value of our indefinite-lived intangible asset using the “relief from royalty” method. Significant estimates in this approach include projected revenues and royalty and discount rates. The estimates of discounted cash flows will likely change over time as impairment tests are performed. Based on the Company’s quantitative impairment tests performed, the Company recognized an $11.7 million impairment loss on goodwill in fiscal year 2020, of which $9.1 million related to continuing operations and $2.6 million related to discontinued operations. The Company did not recognize an impairment loss on goodwill or other indefinite-lived intangible assets in fiscal years 2022 or 2021. The methods of assessing fair value for indefinite-lived assets require significant judgments to be made by management, including future revenues, expenses, cash flows and discount rates. Changes in such estimates or the application of alternative assumptions could produce significantly different results. Other Long-Term Assets Other long-term assets consist of capitalized implementation costs of hosting arrangements, cash surrender value of life insurance policies related to a Supplemental Executive Retirement Plan (see Note 14), and deferred debt financing costs. Capitalized implementation costs of hosting arrangements that are accounted for as service contracts, which relate to our SAP ERP implementation, were $5.7 million and $3.1 million as of March 27, 2022 and March 28, 2021, respectively. Revenue Recognition We account for revenue in accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers In most cases, shipments are made using freight on board (“FOB”) shipping terms. FOB destination terms are used for a portion of sales, and revenue for these sales is recorded when the product is received by the customer. Prices are always fixed at the time of sale. Historically, there have not been any material concessions provided to or by customers, future discounts provided by the Company, or other incentives subsequent to a sale. We recognize revenues from sales transactions containing sales returns provisions at the time of the sale. The potential for customer returns are considered a component of variable consideration under ASC 606 and it is therefore considered when estimating the transaction price for a sale. We use the most likely amount method to determine the amount of expected returns. The amount of expected returns is recognized as a refund liability, representing the obligation to return the customer’s consideration. The return asset is measured at the former carrying amount of the inventory, less any expected costs to recover the goods, which is included in prepaid expenses and other current assets on the accompanying Consolidated Balance Sheets. Customers Our current and potential customers are continuing to look for ways to reduce their inventories and lower their total costs, including distribution, order taking and fulfillment costs, while still providing their customers excellent service. Some of these companies have turned to us to implement supply chain solutions, including purchasing inventory, assisting in demand forecasting, configuring, packaging, kitting and delivering products and managing customer and supplier relations, from order taking through cash collections. In performing these solutions, we assume varying levels of involvement in the transactions and varying levels of credit and inventory risk. As our offerings continually evolve to meet the needs of our customers, the Company constantly evaluates its revenue accounting based on the guidance set forth in accounting standards generally accepted in the United States. When applying this guidance in accordance with ASC 606, the Company looks at the following indicators: whether we are the primary obligor in the transaction; whether we have general inventory risk; whether we have latitude in establishing price; whether the customer holds us responsible for the acceptability of the product; whether the product returns are handled by us; and whether obligations exists between the other parties and our customer. Each of the Company’s customer relationships is independently evaluated based on the above guidance and revenues are recorded on the appropriate basis. Based on a review of the factors above, in the majority of the Company’s sales relationships, the Company has concluded that it is the principal in the transaction and records revenues based upon the gross amounts earned and booked. However, the Company does have relationships where it is not the principal and records revenues on a net fee basis, regardless of amounts billed (less than 1% of total revenues for fiscal year 2022). Other than sales relating to the Company’s private brands, we offer no product warranties in excess of original equipment manufacturers’ warranties. Warranty expense was immaterial for fiscal years 2022, 2021, and 2020. Supplier Programs Funds received from suppliers for product rebates and marketing/promotion are recorded as a reduction in cost of goods sold in accordance with ASC 705-20, Cost of Sales and Services - Accounting for Consideration Received from a Vendor Shipping and Handling Costs Shipping costs incurred to ship products from our distribution centers to our customers’ sites are included in selling, general and administrative expenses in the Consolidated Statements of Income (Loss) and totaled $13,249,600 $10,036,100, and $10,222,800 for fiscal years 2022, 2021, and 2020, respectively. Stock Compensation Awards The Company records stock compensation expense for awards in accordance with ASC 718, Compensation – Stock Compensation Income Taxes The Company accounts for income taxes under the asset and liability method in accordance with ASC 740, Income Taxes The Company’s accounting policy with respect to interest and penalties related to tax uncertainties is to classify these amounts as part of the provision for income taxes. In accordance with ASC 740, no provision for tax uncertainties was determined to be necessary as of March 27, 2022, March 28, 2021 and March 29, 2020. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company reviews and evaluates its estimates and assumptions, including but not limited to, those that relate to tax reserves, stock-based compensation, accounts receivable reserves, inventory reserves and future cash flows associated with impairment testing for long-lived assets. Actual results could significantly differ from those estimates. Recently issued accounting pronouncements not yet adopted: In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses rather than incurred losses to estimate credit losses on certain types of financial instruments, including trade receivables. This may result in the earlier recognition of allowances for losses. This ASU is effective for periods beginning after December 15, 2022. The Company is currently evaluating the impact the adoption of this new standard will have on its Consolidated Financial Statements and will adopt the standard on the first day of the Company’s 2024 fiscal year. Recently issued accounting pronouncements adopted: In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in ASC 740 related to the approach for intraperiod tax allocation, and the methodology for calculating income taxes in an interim period. This ASU was effective for periods beginning after December 15, 2020. The Company adopted this standard on the first day of the 2022 fiscal year on a prospective basis. The standard did not have a material impact on the financial statements. . |
Property and Equipment
Property and Equipment | 12 Months Ended |
Mar. 27, 2022 | |
Property and Equipment | |
Property and Equipment | Note 3. Property and Equipment All of the Company’s property and equipment is located in the United States and is summarized as follows: 2022 2021 Land $ 4,740,800 $ 4,740,800 Building, building improvements and leasehold improvements 21,136,800 21,265,400 Information technology equipment 4,598,100 5,003,000 Furniture, telephone system, equipment and tooling 8,630,700 8,910,500 39,106,400 39,919,700 Less accumulated depreciation (28,270,500) (27,348,100) Property and equipment, net $ 10,835,900 $ 12,571,600 Depreciation expense related to property and equipment was $1,562,700, $1,667,500, and $1,683,000 for fiscal years 2022, 2021 and 2020, respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Mar. 27, 2022 | |
Goodwill and Other Intangible Assets | |
Intangible Assets | Note 4. Goodwill and Other Intangible Assets Due to lower than expected results and a significant reduction in market capitalization (due to reduced stock price), we performed a quantitative impairment test for goodwill during the third and fourth quarters of fiscal year 2020. Based on the quantitative tests we did in fiscal year 2020, we recorded $9.1 million of non-cash goodwill impairment loss related to continuing operations and $2.6 million of impairment loss related to discontinued operations. There was no goodwill carrying amount at any time during fiscal year 2021 or 2022. Intangibles, net on our Consolidated Balance Sheets as of March 27, 2022 and March 28, 2021, consists of capitalized software for internal use, indefinite-lived intangible assets, and an immaterial amount of costs capitalized for software costs to be sold. Capitalized software for internal use, net of accumulated amortization, which primarily related to our SAP ERP implementation as of March 27, 2022 and March 28, 2021, was $29,463,100 and $18,341,100, respectively. The Company continues to capitalize costs related to the SAP implementation and will begin to amortize those costs after the project has been completed and placed in-service, which is expected to occur during fiscal 2023. The useful life for costs associated with the SAP implementation will be amortized over a 7-year At March 27, 2022, estimated future annual amortization expense for intangible assets for the next five years is: 2023 $ 3,854,400 2024 5,117,100 2025 4,847,300 2026 4,657,800 2027 4,643,900 $ 23,120,500 |
Accrued expenses and other curr
Accrued expenses and other current liabilities | 12 Months Ended |
Mar. 27, 2022 | |
Accrued expenses and other current liabilities | |
Accrued expenses and other current liabilities | Note 5. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following: March 27, 2022 March 28, 2021 Allowances for product returns $ 545,900 $ 1,967,300 Other accrued expenses 909,600 945,000 Total accrued expenses and other current liabilities $ 1,455,500 $ 2,912,300 The amount of expected returns is recognized as a refund liability within the Accrued expenses and other current liabilities line item in the Consolidated Balance Sheets. This liability represents the obligation to return customer consideration. The value of the expected goods to be returned by customers is recognized as a return asset within the Prepaid expenses and other current assets line item of the Consolidated Balance Sheets. The return asset value is initially measured at the former carrying amount in inventory, less any expected costs to recover the goods. The Company expects products returned by customers to be in new and salable condition, as required by our standard terms and conditions, and therefore impairment of the return asset is unlikely. Changes to the return liability are recorded as revenue adjustments and changes to the return asset are recorded to cost of goods sold. As of March 27, 2022, the return asset and return liability amounts were $0.4 million and $0.5 million, respectively. As of March 28, 2021, the return asset and return liability amounts were $1.0 million and $2.0 million, respectively. The decrease in the return asset and return liability amounts in fiscal 2022 compared to fiscal 2021 is related to the exit from our Retail business, as further discussed in Note 20. |
Borrowings Under Revolving Cred
Borrowings Under Revolving Credit Facility | 12 Months Ended |
Mar. 27, 2022 | |
Borrowings Under Revolving Credit Facility | |
Borrowings Under Revolving Credit Facility | Note 6. Borrowings Under Revolving Credit Facility On October 29, 2020, the Company entered into a Credit Agreement (the “Credit Agreement”) among the Company, the Company’s primary operating subsidiaries as co-borrowers, the Lender(s) party thereto from time to time, and Wells Fargo Bank, National Association (“Wells”), as Administrative Agent, swingline lender and an issuing bank. Terms used, but not defined, in this and the following eleven (11) paragraphs have the meanings set forth in the Credit Agreement or the related Guaranty and Security Agreement. This facility replaced a previously existing credit facility among the Company and certain subsidiaries, the lenders party thereto (which included Wells) and Truist Bank (successor by merger to SunTrust Bank), as administrative agent. The Credit Agreement provides for a senior secured asset based revolving credit facility of up to $75 million (the “2020 Revolving Credit Facility”), which matures on April 29, 2024. The 2020 Revolving Credit Facility includes a $5.0 million letter of credit sublimit and provides for the issuance of Swingline Loans. The applicable Credit Agreement also includes a provision permitting the Company, subject to certain conditions, to increase the aggregate amount of the commitments under the 2020 Revolving Credit Facility to an aggregate commitment amount of up to $125 million with optional additional commitments from then existing Lenders or new commitments from additional lenders, although no Lender is obligated to increase its commitment. Availability is determined in accordance with the Borrowing Base, which is generally 85% of Eligible Accounts minus plus plus minus Borrowings initially accrue (or accrued) interest from the applicable borrowing date: (A) if a LIBOR Rate Loan, at a per annum rate equal to the LIBOR Rate plus plus The Company is required to pay a monthly Unused Line Fee on the average daily unused portion of the 2020 Revolving Credit Facility, at a per annum rate equal to 0.25%. The Credit Agreement contains one financial covenant, a Fixed Charge Coverage Ratio, which is tested only if Excess Availability (generally, borrowing availability less the aggregate of trade payables and book overdrafts, each in excess of historical amounts) is less than the greater of (a) 16.7% of the maximum amount of the Credit Facility (at closing, $12,525,000) and (b) $12,500,000. In addition, the Credit Agreement contains provisions that could limit our ability to engage in specified transactions or activities, including (but not limited to) investments and acquisitions, sales of assets, payment of dividends, issuance of additional debt and other matters. Borrowings under the 2020 Revolving Credit Facility were initially used to pay all indebtedness outstanding under the previously existing credit facility among the Company and certain subsidiaries, the lenders party thereto and Truist Bank, as administrative agent, and may be used for working capital and other general corporate purposes, and as further provided in, and subject to the applicable terms of, the Credit Agreement. As of March 27, 2022, borrowings under the secured 2020 Revolving Credit Facility totaled $36.9 million and, therefore, the Company had $43.1 million available for borrowing, subject to the Borrowing Base limitation and compliance with the other applicable terms referenced above. The 2020 Revolving Credit Facility has no lockbox arrangement associated with it, and therefore the outstanding balance is classified as a long-term liability on the Consolidated Balance Sheet as of March 27, 2022. Accordingly, borrowings from and repayments to the Company’s current line of credit are reflected on a gross basis in the cash flows from financing activities in the Consolidated Statements of Cash Flows. The Company is required to make certain prepayments under the 2020 Revolving Credit Facility under certain circumstances, including from net cash proceeds from certain asset dispositions in excess of certain thresholds. The Credit Agreement contains representations, warranties and affirmative covenants. The Credit Agreement also contains negative covenants and restrictions on, among other things: (i) Indebtedness, (ii) liens, (iii) fundamental changes, (iv) disposition of assets, (v) restricted payments (including certain restrictions on redemptions and dividends), (vi) investments and (vii) transactions with affiliates. The Credit Agreement also contains events of default, such as payment defaults, cross-defaults to other material indebtedness, misrepresentations, bankruptcy and insolvency, the occurrence of a Change of Control and the failure to observe the negative covenants and other covenants contained in the Credit Agreement and the other loan documents. Pursuant to a related Guaranty and Security Agreement, by and among the Company, the other borrowers under the Credit Agreement and other operating subsidiaries of the Company (collectively, the “Loan Parties”), and Wells, as Administrative Agent, the Obligations, which include the obligations under the Credit Agreement, are guaranteed by the Loan Parties, and secured by continuing first priority security interests in the Company’s and the other Loan Parties’ (including both borrowers and guarantors) Accounts, Books, Chattel Paper, Deposit Accounts, General Intangibles, Inventory, Negotiable Collateral, Supporting Obligations, Money, Cash Equivalents or other assets that come into the possession, custody or control of the Agent or any Lender, and related assets, and the proceeds and products of any of the foregoing (the “Collateral”). The security interests in the Collateral are in favor of the Administrative Agent, for the benefit of the Lenders party to the Credit Agreement from time to time and any other holders of the Obligations. The Obligations secured also include certain other obligations of the Loan Parties to the Lenders and their affiliates arising from time to time, relating to swaps, hedges and cash management and other bank products. The 2020 Revolving Credit Facility also restricts our ability to pay dividends and to repurchase our shares. Assuming that no default exists, we may redeem or repurchase up to $2,000,000 of our shares in any twelve On March 27, 2022, the interest rate applicable to borrowings under the 2020 Revolving Credit Facility was 2.70%. The weighted average interest rate on borrowings under the Company’s Revolving Credit Facility during fiscal year 2022 was 2.63%. Under certain circumstances, the Applicable Rate is subject to change at the Lenders’ option from the Eurodollar Rate plus the Applicable Margin to the Base Rate plus the Applicable Margin. Interest expense on the 2020 Revolving Credit Facility in the aggregate for fiscal year 2022 totaled $624,900, net of capitalized interest of $680,000. Average borrowings under the facilities totaled $46,748,300 and the maximum borrowing during fiscal year 2022 was $57,717,700. In addition to the interest charged on borrowings, the Company continues to be subject to a 0.25% fee on the unused portion of the 2020 Revolving Credit Facility. Amendment No. 1 Pursuant to Amendment No. 1 to Credit Agreement dated July 12, 2021 (“Amendment No. 1”), between Tessco and Wells, Wells agreed to a 25 basis point reduction in certain otherwise applicable rates and fees over an agreed period, as set forth in the Amendment No. 1. Amendment No. 1 also included certain changes related to the transition away from the use of LIBOR as a rate option and is expected to simplify day-to-day management of the 2020 Revolving Credit Facility. Following an Event of Default, the Lenders’ may at their option increase the applicable per annum rate to a rate equal to two percentage points above the otherwise applicable rate and with certain events of default, such increase is automatic. In addition, the 25 basis point reduction, insofar as then otherwise available under Amendment No. 1, will terminate, and at the written election of the Agent or the Required Lenders at any time while an Event of Default exists, the Company will no longer have the option to request that revolving loans be based on the LIBOR Rate. Amendment No. 2 In anticipation of TESSCO Reno Holding LLC (“Reno Holding”) entering into the Real Estate Note of Reno Holding (the “Note”), as discussed further in Note 7, the Company, TESSCO Inc. and our other operating subsidiaries, and Wells, entered into Amendment No. 2 to Credit Agreement and Consent dated December 29, 2021 (“Amendment No. 2”). Pursuant to Amendment No. 2, and subject to its terms and conditions, among other things, Wells consented to the Note, without requiring that Reno Holding become a borrower or guarantor under the Credit Agreement. Amendment No. 3 On January 5, 2022, at the Company’s request, the Company and its operating subsidiaries, and Wells, entered into Amendment No. 3 to Credit Agreement and Amendment No. 1 to Guaranty and Security Agreement (“Amendment No. 3”), subject to the terms and conditions of which Wells agreed to increase the Commitment under the 2020 Revolving Credit Facility from $75 million to $80 million. Among the terms and conditions, the Company agreed to revert to the interest rate margins originally provided for under the terms of the 2020 Revolving Credit Facility (and which had previously been modified pursuant to Amendment No. 1 to Credit Agreement), as well as change to the methodology for determining the Applicable Margin, and agreed to a $10 million Availability Block for a one year period, but was relieved of any Fixed Charge Coverage Ratio testing for the same one year period without regard to the amount of Excess Availability during that period. Following this one-year period, a $15 million Excess Availability requirement will be imposed unless a Fixed Charge Coverage Ratio of 1:1 is achieved. As a result, and assuming the Company is otherwise in compliance with the terms of the 2020 Revolving Credit Agreement, as amended, and has sufficient Borrowing Base assets, the amount available for borrowing under the 2020 Revolving Credit Facility, without having to meet any Fixed Charge Coverage Ratio, is increased from approximately $62.5 million to $70 million for calendar year 2022. |
Debt
Debt | 12 Months Ended |
Mar. 27, 2022 | |
Debt | |
Debt | Note 7. Debt On December 30, 2021, Reno Holding, an indirect wholly owned subsidiary and now owner of the Company’s approximately 115,000 square foot operating facility located in Reno, Nevada (the “Reno Facility”), borrowed an aggregate sum of $6.5 million from Symetra Life Insurance Company (“Symetra”). The indebtedness is evidenced by the Note that provides for monthly payments of $47,858, bears interest at a fixed rate of 3.38% per annum for the first 5 years, is subject to adjustment after 5 years and again after 10 years, and matures in approximately 15 years. The Note and related obligations are secured by a Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing (the “Deed of Trust”) on the Reno Facility. The net proceeds from this borrowing transaction (the “Symetra Loan”) have since been applied to repayment of a portion of the revolving balance under the Company’s 2020 Revolving Credit Facility. An additional $250,000 is to be advanced under the Symetra Loan after roof and possible related repairs to the Reno Facility are satisfactorily completed. The Symetra Loan is limited recourse to the Reno Facility, with typical exceptions in which case it is recourse to Reno Holding, a special purpose entity formed by the Company to own the Reno Facility and related assets. The principal maturities of debt outstanding at March 27, 2022, were as follows: 2023 $ 353,500 2024 365,700 2025 378,200 2026 391,200 2027 404,600 Thereafter 4,799,000 Total $ 6,692,200 |
Leases
Leases | 12 Months Ended |
Mar. 27, 2022 | |
Leases | |
Leases | Note 8. Leases The Company is committed to making rental payments under non-cancelable operating leases covering various facilities and equipment. Our leases have remaining lease terms of 1 to 5 years, some of which include options to extend the leases for up to 5 years. Rent expense for fiscal years 2022, 2021 and 2020 totaled $2,848,400, $3,453,500, and $3,046,000, respectively. When measuring the lease liability, the Company uses the rate implicit in the lease and if that rate cannot be readily determined, the Company’s incremental borrowing rate based on terms of the lease. The Company leases office space in Timonium, Maryland, where the Company’s sales, marketing and administrative offices are located. This space is nearby to the Company’s Global Logistics Center in Hunt Valley, Maryland. The Agreement of Lease expires on December 31, 2025. Monthly rent payments range from $205,100 to $220,800 through the remaining lease term. The Company also leases office and warehouse space in Hunt Valley, Maryland, adjacent to the Company’s Global Logistics Center, expiring on July 31, 2023. The Company has an ongoing annual option to terminate the lease. The monthly rental fee ranges from $41,800 to $43,000 through the remaining lease term. Additional sales and marketing offices were previously located in additional leased office space in San Antonio, Texas. This lease expired on October 31, 2021 and was not renewed. The following maturity analysis presents minimum expected operating lease payments at March 27, 2022: 2023 3,076,200 2024 2,778,100 2025 2,662,300 2026 2,040,000 2027 30,600 Thereafter — Total 10,587,200 Less: present value discount (1,434,700) Present value of lease liabilities $ 9,152,500 Weighted-average discount rate: 3.8% Weighted-average remaining lease term 3.6 years |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 27, 2022 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 9. Commitments and Contingencies Lawsuits and claims are filed against the Company from time to time in the ordinary course of business. The Company does not believe that any lawsuits or claims pending against the Company, individually or in the aggregate, are material, or will have a material adverse effect on the Company’s financial condition or results of operations. In addition, from time to time, the Company is also subject to review from federal and state taxing authorities in order to validate the amounts of income, sales and/or use taxes which have been claimed and remitted. As the Company is routinely audited by state taxing authorities, the Company has estimated exposure and established reserves for its estimated sales tax audit liability. |
Business Segments
Business Segments | 12 Months Ended |
Mar. 27, 2022 | |
Business Segments | |
Business Segments | Note 10. Business Segments The Company has two reportable segments, Carrier and Commercial, which are identified based on the information reviewed by the Chief Operating Decision Maker (“CODM”) and are consistent with how the business is managed. The Company previously operated as one reportable segment in fiscal 2021 and identified a change to our segments in the fourth quarter of fiscal 2022 as a result of changes in organizational structure. Carrier is generally comprised of customers responsible for building and maintaining the infrastructure system and provide airtime service to individual subscribers and Commercial includes value-added resellers, the government channel and private system operator markets. Ventev ® Segment information for the fiscal years ended 2022, 2021 and 2020 has been restated to reflect the change in segments during fiscal 2022 and is as follows (in thousands): Year Ended March 27, 2022 March 28, 2021 March 29, 2020 Revenues Carrier $ 180,740 $ 149,825 $ 156,395 Commercial 236,805 223,516 252,619 Total revenues $ 417,545 $ 373,341 $ 409,014 Gross Profit Carrier $ 20,985 $ 16,585 $ 18,699 Commercial 57,052 51,131 60,943 Total gross profit $ 78,037 $ 67,716 $ 79,642 Total Assets 2022 2021 Carrier $ 38,705 $ 29,829 Commercial 36,797 33,355 Corporate 127,012 125,893 Total Assets $ 202,513 $ 189,078 The CODM reviews segment results using Gross profit as the segment measure of profit or loss and the Company does not allocate expenses below Gross profit to the segments. |
Stock Buyback
Stock Buyback | 12 Months Ended |
Mar. 27, 2022 | |
Stock Buyback | |
Stock Buyback | Note 11. Stock Buyback The Company withholds shares of common stock from its employees and directors, at their request, equal to the minimum federal and state tax withholdings related to vested performance stock units, stock option exercises and vested restricted stock awards. For fiscal years 2022, 2021, and 2020 the total value of shares withheld for taxes was $66,400, $121,500, and $201,000, respectively. |
Retirement of Treasury Stock
Retirement of Treasury Stock | 12 Months Ended |
Mar. 27, 2022 | |
Retirement of Treasury Stock | |
Retirement of Treasury Stock | Note 12. Retirement of Treasury Stock On July 2, 2020, the Board of Directors adopted resolutions providing for the retirement of the Company’s then accumulated treasury stock, and for a corresponding reduction in capital. Immediately prior to the retirement, the Company held 5,789,600 shares of issued but not outstanding common stock as treasury stock, at a cost of $58,555,000. Upon retirement, the cost of the treasury stock was netted against retained earnings, and the number of authorized and unissued shares of common stock correspondingly increased by 5,789,600 shares. The total number of authorized shares of common stock remains unchanged at 15,000,000. There has been no change to the total stockholders’ equity as a result of such resolutions. |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 27, 2022 | |
Income Taxes | |
Income Taxes | Note 13. Income Taxes A reconciliation of the difference between the provision for income taxes computed at statutory rates and the provision for income taxes from continuing operations provided in the Consolidated Statements of Income (Loss) is as follows: 2022 2021 2020 Statutory federal rate 21.0 % 21.0 % 21.0 % State taxes, net of federal benefit 0.7 3.4 1.8 Non-deductible expenses (2.0) (1.2) (0.7) Change in valuation allowance 5.2 (7.6) (2.9) Rate change for loss carrybacks 0.0 6.2 12.5 Other (0.4) (0.7) 0.7 Effective rate 24.5 % 21.1 % 32.4 % The provision for income taxes from continuing operations was comprised of the following: 2022 2021 2020 Federal: Current $ (1,229,200) $ (4,263,700) $ (4,008,000) Deferred 126,500 (48,200) (2,642,800) State: Current 38,500 16,700 (411,000) Deferred (7,100) 450,700 (413,000) Benefit from income taxes $ (1,071,300) $ (3,844,500) $ (7,474,800) Total net deferred tax assets (liabilities) as of March 27, 2022 and March 28, 2021, and the sources of the differences between financial accounting and tax basis of the Company's assets and liabilities which give rise to the deferred tax assets, are as follows: 2022 2021 Deferred tax assets: Deferred compensation $ 202,000 $ 163,600 Accrued vacation 145,700 362,600 Deferred rent 2,100,400 2,638,100 Allowance for doubtful accounts 246,200 357,300 Inventory reserves 1,042,800 766,300 Sales tax reserves 127,600 104,500 Sales return assets 125,300 451,400 Net operating loss 1,969,800 518,500 Business interest limitation carryforward 555,300 383,800 Other assets 1,486,300 925,900 8,001,400 6,672,000 Valuation allowance (2,543,600) (2,866,800) Total deferred tax assets 5,457,800 3,805,200 Deferred tax liabilities: Depreciation and amortization (2,784,600) (214,600) Sales return liabilities (90,000) (224,100) Lease right of use (2,035,500) (2,589,600) Prepaid expenses and other liabilities (693,300) (803,400) Total deferred tax liabilities (5,603,400) (3,831,700) Net deferred tax (liability) assets $ (145,600) $ (26,500) The valuation allowance recorded by the Company as of March 27, 2022 and March 28, 2021 resulted from the uncertainties of the future realization of federal and state deferred tax assets. The Company will continue to assess and evaluate strategies that will enable the deferred tax asset, or portion thereof, to be realized, and will reduce the valuation allowance appropriately as such time when it is determined that the “more likely than not” criteria is satisfied. As of March 27, 2022, the Company had net operating loss carryforwards of $94,258,300 which will generally begin to expire in fiscal year 2030 through fiscal year 2040. Federal and certain state net operating loss carryovers do not expire. As of March 27, 2022 and March 28, 2021, the Company had no unrecognized tax benefits. The Company’s accounting policy with respect to interest and penalties related to tax uncertainties is to classify these amounts as part of the provision for income taxes. The total amount of interest and penalties related to tax uncertainties recognized in the Consolidated Statements of Income (Loss) was $0 for fiscal years 2022, 2021 and 2020. The cumulative amount included in the Consolidated Balance Sheets as of March 27, 2022 and March 28, 2021 was $0. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law making several changes to the Internal Revenue Code. The changes include but are not limited to: increasing the limitation on the amount of deductible business interest expense, allowing companies to carryback certain net operating losses to the preceding five years, and increasing the amount of net operating loss carryforwards that corporations can use to offset taxable income. These special provisions were applicable to fiscal years 2020 and 2021 while net operating losses generated in fiscal 2022 cannot be carried back. The Company files income tax returns in U.S. federal, state and local jurisdictions. Tax returns for fiscal years 2016 through 2022 remain open to examination by U.S. federal, state and local tax authorities. Federal and state net operating losses generated to date are subject to adjustment for state income tax purposes. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Mar. 27, 2022 | |
Retirement Plans | |
Retirement Plans | Note 14. Retirement Plans The Company has a 401(k) plan that covers all eligible employees. Contributions to the plan can be made by employees and the Company may make matching contributions at its discretion. Company contributions are made in cash and Company stock. Expense related to this matching contribution was $700,500, $806,000, and $937,500 during fiscal years 2022, 2021, and 2020, respectively. As of March 27, 2022, plan assets included 264,600 shares of common stock of the Company. The Company maintains a Supplemental Executive Retirement Plan for Robert B. Barnhill, Jr., the Company’s founder and former CEO and Chairman of the Board. This plan is funded through life insurance policies for which the Company is the sole beneficiary. The cash surrender value of the life insurance policies and the net present value of the benefit obligation of approximately $2,652,700 and $753,200, respectively, as of March 27, 2022 March 28, 2021 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Mar. 27, 2022 | |
Earnings Per Share | |
Earnings Per Share | Note 15. Earnings Per Share The Company presents the computation of earnings per share (“EPS”) on a basic and diluted basis. Basic EPS is computed by dividing net income by the weighted average number of shares outstanding during the reported period. Diluted earnings per share are computed similarly to basic earnings per share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential additional common shares that were dilutive had been issued. Shares of common stock are excluded from the calculation if they are determined to be anti-dilutive. In fiscal years 2022 and 2021, the Company had a net loss from continuing operations and accordingly recorded EPS by using only basic shares outstanding. The following table presents the calculation of basic and diluted earnings per common share from continuing operations: Amounts in thousands, except per share amounts Amounts in thousands, except per share amounts 2022 2021 2020 Earnings per share from continuing operations – Basic: Net loss $ (3,312) $ (14,373) $ (15,601) Less: Distributed and undistributed earnings allocated to nonvested stock — — — Earnings available (loss attributable) to common shareholders – Basic $ (3,312) $ (14,373) $ (15,601) Weighted average common shares outstanding – Basic 8,928 8,697 8,527 Earnings (loss) per common share from continuing operations – Basic $ (0.37) $ (1.65) $ (1.83) Earnings per share – Diluted: Net income (loss) $ (3,312) $ (14,373) $ (15,601) Less: Distributed and undistributed earnings allocated to nonvested stock — — — Earnings available (loss attributable) to common shareholders – Diluted $ (3,312) $ (14,373) $ (15,601) Weighted average common shares outstanding – Basic 8,928 8,697 8,527 Effect of dilutive options — — — Weighted average common shares outstanding – Diluted 8,928 8,697 8,527 Loss per common share from continuing operations – Diluted $ (0.37) $ (1.65) $ (1.83) Anti-dilutive equity awards not included above 813 755 852 At March 27, 2022, March 28, 2021 and March 29, 2020, stock options with respect to 933,000, 925,000 and 862,000 shares of common stock were outstanding, respectively. The anti-dilutive stock options outstanding at March 27, 2022, March 28, 2021 and March 29, 2020 total 813,000, 755,000 and 852,000, respectively. There were no anti-dilutive Performance Stock Units (“PSUs”) or Restricted Stock Units (“RSUs”) outstanding as of March 27, 2022, March 28, 2021, and March 29, 2020. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Mar. 27, 2022 | |
Stock-Based Compensation | |
Stock-Based Compensation | Note 16. Stock-Based Compensation The Company’s selling, general and administrative expenses for the fiscal years ended March 27, 2022, March 28, 2021, and March 29, 2020 includes $1,338,900, $1,211,000, and $1,174,600, respectively, of stock compensation expense. Provision for income taxes for the fiscal years ended March 27, 2022, March 28, 2021, and March 29, 2020 includes $365,500, $255,600, and $386,100, respectively, of income tax benefits related to our stock-based compensation arrangements. Stock compensation expense is primarily related to our PSUs, RSUs, and Stock Options, granted or outstanding under the Company’s Third Amended and Restated Stock and Incentive Plan (the “1994 Plan”) and 2019 Stock and Incentive Plan (the “2019 Plan” and together with the 1994 Plan, the “Plans”), which was approved at the Annual Meeting of Shareholders held on July 25, 2019. No additional awards may be granted under the 1994 Plan, although awards outstanding under the 1994 Plan remain outstanding and governed by its terms. As of March 27, 2022, 344,371 shares were available for issue in respect of future awards under the 2019 Plan. Performance Stock Units: The following table summarizes the activity under the Company’s PSU program for fiscal years 2022, 2021 and 2020: 2022 2021 2020 Weighted Weighted Weighted Average Fair Average Fair Average Fair Shares Value at Grant Shares Value at Grant Shares Value at Grant Unvested shares available for issue under outstanding PSUs, beginning of period 13,552 $ 14.57 68,355 $ 15.00 98,306 $ 14.55 PSUs Granted 96,603 7.32 — — 51,616 15.93 PSUs Vested (7,930) 13.89 (21,690) 14.21 (29,036) 14.09 PSUs Forfeited/Cancelled (2,186) 13.79 (33,113) 15.69 (52,532) 9.82 Unvested shares available for issue under outstanding PSUs, end of period 100,039 $ 10.44 13,552 $ 14.57 68,355 $ 15.00 As of March 27, 2022, the remaining unrecognized compensation cost related to PSUs earned was immaterial as the fiscal year 2022 PSUs will vest on or about May 15, 2022. Total fair value of shares vested during fiscal years 2022, 2021 and 2020 was $57,900, $103,300 and $780,400, respectively. The PSUs canceled during fiscal year 2022 primarily related to the fiscal year 2018 and 2019 PSU issuances. The PSUs were canceled due to the employee leaving the Company prior to vesting. Per the provisions of the 2019 Plan, the shares related to these forfeited and canceled PSUs were added back to the 2019 Plan and became available for future issuance under the 2019 Plan. The remaining 100,039 shares covered by PSUs outstanding at the end of fiscal year 2022 were earned based on fiscal years 2022, 2021 and 2020 performance, but were not yet vested as of March 27, 2022. Assuming the respective participants remain employed by, or affiliated with the Company, these shares will vest on or about May 15, 2022. Restricted Stock/Restricted Stock Units: On May 10, 2019, the Compensation Committee, with the concurrence of the full Board of Directors, granted an aggregate of 21,000 RSU, ratably to the then six non-employee directors, including the then Chairman of the Board of the Company. These RSU awards provide for the issuance of shares of the Company’s common stock in four equal installments beginning on May 10, 2020, and continuing on the same date in 2021, 2022 and 2023, provided that the director remains associated with the Company on each such date (or meets other criteria as prescribed in the applicable award agreement). On May 15, 2020, July 24, 2020, and November 12, 2020, the Compensation Committee, with the concurrence of the full Board of Directors, granted an aggregate of 30,000 RSU awards to the then non-employee directors of the Company. These RSU awards provide for the issuance of shares of the Company’s common stock in accordance with a vesting schedule. These awards provide for vesting and that shares will be issued 25% on or about each of May 1 of 2021, 2022, 2023 and 2024, provided that the participant remains associated with the Company (or meets other criteria as prescribed in the agreement) on each such date. Unrecognized compensation costs related to these awards are expected to be recognized ratably over a remaining period of approximately one year . In addition, and also on May 15, 2020 and July 24, 2020, the Compensation Committee, with the concurrence of the full Board of Directors, granted an aggregate of 72,202 shares of restricted stock to non-employee directors of the Company, of which 56,805 were earned and vested, in lieu of their annual cash retainer for fiscal 2021. The amount of shares issued was the cash equivalent of the required retainers on the approval date. Changes in the composition of the Board during fiscal year 2022, in connection with or occurring during the term of a consent solicitation initiated by certain of our stockholders during the year resulted in the accelerated vesting of 30,000 of the current and prior year RSUs discussed in the previous two paragraphs and the issuance of a corresponding number of shares of Common Stock to departing directors. On April 29, 2021, the Compensation Committee, with the concurrence of the full Board of Directors, granted an aggregate of 12,000 RSU awards to the then current non-employee directors of the Company. These awards provide for the issuance of shares of the Company’s common stock in accordance with a vesting schedule. These awards will vest and shares will be issued 25% on or about each of April 29 of 2022, 2023, 2024 and 2025, provided that the participant remains associated with the Company (or meets other criteria as prescribed in the agreement) on each such date. Unrecognized compensation costs related to these awards are expected to be recognized ratably over a remaining period of approximately three years . Also on April 29, 2021, the Compensation Committee, with the concurrence of the full Board of Directors, granted an aggregate of 22,252 shares of restricted stock to non-employee directors of the Company in lieu of their annual cash retainer for fiscal 2022. The amount of shares issued was the cash equivalent of the required retainers on the approval date. These awards provide for the issuance of shares of the Company’s common stock subject to a risk of forfeiture that will lapse in whole or in part on July 1, 2022, generally depending on the length of continued service of the recipient on the Board for fiscal 2022. Dividends accruing in respect of the shares of restricted stock, if any, will accrue but will not be paid until July 1, 2022 and only in respect of those shares for which the risk of forfeiture has then lapsed. Unrecognized compensation costs related to these awards are expected to be recognized ratably over a remaining period of approximately one year . On May 25, 2021 and August 1, 2021, the Compensation Committee, with the concurrence of the full Board of Directors, granted an aggregate of 24,761 RSU awards to non-employee directors of the Company. These awards were awarded in lieu of the directors’ receiving estimated cash payments that would otherwise be received for attendance at Board and Committee meetings during fiscal 2022 and provide for the vesting and issuance of shares of the Company’s common stock to the non-employee director on May 25, 2022, provided that the director remains associated with the Company (or meets service and other criteria as prescribed in the agreement) on that date. As of March 27, 2022, the remaining unrecognized compensation cost, related to RSUs earned under all of the grants included above, was immaterial. PSUs, RSUs and restricted stock awards are expensed based on the grant date fair value, calculated as the closing price of Tessco common stock as reported by Nasdaq on the date of grant minus, in the case of PSUs and RSUs, the present value of dividends expected to be paid on the common stock before the award vests, because dividends or dividend-equivalent amounts do not accrue and are not paid on unvested PSUs and RSUs. The Company accounts for forfeitures as they occur rather than estimate expected forfeitures. To the extent that forfeitures occur, stock-based compensation related to the restricted awards may be different from the Company’s expectations. Stock Options: The grant date value of the Company’s stock options has been determined using the Black-Scholes-Merton pricing model, based upon facts and assumptions existing at the date of grant. Expected stock price volatility is based on historical stock price changes over the expected term of the option. The expected term of the awards is based on the Company’s consideration of the contractual term of the stock option, as well as historical employment experience post-vesting. Stock options granted have exercise prices equal to the market price of the Company’s stock on the grant date. The stock options vest 25% after one year and then 1/36 per month for the following three years . During fiscal 2022, stock options for 183,500 shares were forfeited due to employee departures and option term expiration. The weighted-average remaining contractual term of options exercisable as of March 27, 2022, was 2.8 years. The value of each option at the date of grant is amortized as compensation expense over the service period. This occurs without regard to subsequent changes in stock price, volatility or interest rates over time, provided the option remains outstanding. The following tables summarize the pertinent information for outstanding options. 2022 2021 Weighted Weighted Average Fair Average Fair Shares Value at Grant Shares Value at Grant Unvested options, beginning of period 383,670 $ 1.47 465,374 2.38 Options Granted 194,500 3.62 240,000 2.05 Options Forfeited/Cancelled, net of vested options (83,500) 5.64 (127,625) 3.13 Options Vested (145,293) 2.20 (194,079) 3.28 Unvested options, end of period 349,377 2.83 383,670 1.47 March 27, 2022 Grant Fiscal Year Options Granted Option Exercise Price Options Outstanding Options Exercisable 2022 194,500 $ 7.22 174,500 - 2021 240,000 $ 4.70 110,000 48,854 2020 405,000 $ 13.54 307,000 194,018 2019 66,500 $ 16.31 18,000 17,250 2018 230,000 $ 15.12 60,000 60,000 2017 410,000 $ 12.57 263,958 263,958 2016 100,000 $ 22.42 - - Total 933,458 584,081 Grant Fiscal Year Expected Stock Price Volatility Risk-Free Interest Rate Expected Dividend Yield Average Expected Term Resulting Black Scholes Value 2022 50.94 % 1.93 % 0.00 % 6.0 $ 3.62 2021 46.82 % 1.17 % 0.00 % 4.0 $ 2.05 2020 35.88 % 2.00 % 5.82 % 4.0 $ 2.53 As of March 27, 2022, there was approximately $0.8 million of total unrecognized compensation costs related to these awards. Unrecognized compensation costs related to these awards are expected to be recognized ratably over a period of approximately four years . 2,500 options were exercised during fiscal 2022 with a total value of $10,900 and the weighted average exercise price of these shares was $4.36 . No options were exercised during fiscal 2021. The aggregate intrinsic value of stock options outstanding and stock options currently exercisable as of March 27, 2022 , was $0 . Team Member Stock Purchase Plan: The Company has a Team Member Stock Purchase Plan that permits eligible employees to purchase up to an aggregate of 450,000 shares of the Company's common stock at 85% of the lower of the market price on the first day of a six-month period or the market price on the last day of that same six-month period. Expenses incurred for the Team Member Stock Purchase Plan during the fiscal years ended March 27, 2022, March 28, 2021, and March 29, 2020 were $54,400 , $61,500 , and $78,400 , respectively. During the fiscal years ended March 27, 2022, March 28, 2021, and March 29, 2020, 30,169 , 40,493 , and 34,829 shares were sold to employees under this plan, having a weighted average market value of $5.21 , $4.92 and $7.51 , respectively. |
Fair Value Disclosure
Fair Value Disclosure | 12 Months Ended |
Mar. 27, 2022 | |
Fair Value Disclosure | |
Fair Value Disclosure | Note 17. Fair Value Disclosure Assets and liabilities carried at fair value are classified and disclosed in one of the following three categories: ● Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. ● Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets, and quoted prices for identical or similar assets or liabilities in markets that are not active. ● Level 3: Unobservable inputs for the asset or liability that reflect the reporting entity’s own assumptions about the inputs used in pricing the asset or liability. As of March 27, 2022 and March 28, 2021, the Company had no assets or liabilities recorded at fair value. The carrying amounts of cash and cash equivalents, trade accounts receivable, product inventory, trade accounts payable, accrued expenses, revolving credit facility, life insurance policies and other current liabilities approximate their fair values as of March 27, 2022 and March 28, 2021 due to their short-term nature. The carrying amount of our Symetra Loan approximates the fair value due to the loan being entered into during the fourth quarter of fiscal 2022. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Mar. 27, 2022 | |
Supplemental Cash Flow Information | |
Supplemental Cash Flow Information | Note 18. Supplemental Cash Flow Information For fiscal year 2022, the Company had a net tax refund of $4,247,900 million. Cash paid for income taxes net of refunds, for fiscal years 2021 and 2020 totaled $21,000 and $1,515,300, respectively. Cash paid for interest during fiscal years 2022, 2021 and 2020 totaled $1,355,100, $952,700 and $1,106,300, respectively. Interest capitalized during fiscal years 2022, 2021 and 2020 was $680,000, $450,200 and $87,700, respectively. |
Concentration of Risk Related t
Concentration of Risk Related to Continuing Operations | 12 Months Ended |
Mar. 27, 2022 | |
Concentration of Risk Related to Continuing Operations | |
Concentration of Risk | Note 19. Concentration of Risk Related to Continuing Operations Sales to customers and purchases from suppliers are largely governed by individual sales or purchase orders, so there is no guarantee of future business. In some cases, the Company has more formal agreements with significant customers or suppliers, but they are largely administrative in nature and are terminable by either party upon several months or otherwise short notice and they typically contain no obligation to make purchases from Tessco. In the event a significant customer decides to make its purchases from another source, experiences a significant change in demand internally or from its own customer base, becomes financially unstable, or is acquired by another company, the Company’s ability to generate revenues from these customers may be significantly affected, resulting in an adverse effect on its financial position and results of operations. The Company is dependent on third-party equipment manufacturers, distributors and dealers for most of its supply of wireless communications equipment. For fiscal years 2022, 2021 and 2020, sales of products purchased from the Company's top ten suppliers accounted for 54%, 53%, and 54% of total revenues, respectively. Products purchased from the Company’s largest supplier related to continuing operations accounted for approximately 29%, 29% and 30% of total revenues in fiscal years 2022, 2021 and 2020, respectively. The Company is dependent on the ability of its suppliers to provide products on a timely basis and on favorable pricing terms. The Company believes that alternative sources of supply are available for many of the product types it carries, but not for all products offered by the Company. The loss of certain principal suppliers, including the suppliers referenced above, or of other suppliers whose products may be difficult to source on comparable terms elsewhere, would have a material adverse effect on the Company. As noted, the Company's future results could also be negatively impacted by the loss of certain customers, and/or supplier relationships. For fiscal years 2022, 2021 and 2020, sales of products to the Company's top ten customer relationships accounted for 35%, 34% and 34% of total revenues, respectively. No customer accounted for more than 10% of total revenues in fiscal year 2022. There was one customer that accounted for 11% and 15% of total revenues in fiscal years 2021 and 2020, respectively. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Mar. 27, 2022 | |
Discontinued Operations | |
Discontinued Operations | Note 20. Discontinued Operations On December 2, 2020, the Company sold most of its Retail inventory and certain other Retail-related assets to Voice Comm. In addition, we assigned or licensed Ventev ® ® ® A pre-tax gain on disposal of $3.0 million was recorded in the fiscal quarter ended December 27, 2020, which is included in Income (loss) from discontinued operations, net of taxes in the Consolidated Statements of Income (Loss). The accompanying Consolidated Financial Statements for all periods presented reflect the results of the Retail segment as a discontinued operation. The following table presents the financial results of the Retail segment for the fiscal years ended March 27, 2022 March 28, 2021 March 29, 2020 Fiscal Years Ended March 27, 2022 March 28, 2021 March 29, 2020 Revenues $ 3,117,300 $ 86,728,300 $ 131,283,900 Cost of goods sold 2,090,700 74,238,800 119,102,800 Gross profit 1,026,600 12,489,500 12,181,100 Selling, general and administrative expenses 448,600 7,652,100 15,809,500 Goodwill impairment — — 2,569,100 Income (loss) from operations 578,000 4,837,400 (6,197,500) Gain on disposal — 3,020,800 — Income (loss) from operations before income taxes 578,000 7,858,200 (6,197,500) Provision for (benefit from) income taxes (33,300) 2,227,800 (230,000) Net income (loss) attributable to discontinued operations $ 611,300 $ 5,630,400 $ (5,967,500) The financial results reflected above may not fully represent our former Retail segment stand-alone operating net profit, as the results reported within Income (loss) from discontinued operations, net of taxes, include only certain costs that are directly attributable to this former segment and exclude certain corporate overhead and operational costs that may have been previously allocated for each period. The following table summarizes the major classes of assets attributable to discontinued operations that are included in the Current portion of assets held for sale in the Company’s Consolidated Balance Sheets as of March 27, 2022 and March 28, 2021: March 27, March 28, 2022 2021 ASSETS Product inventory, net $ — $ 1,196,900 Current portion of assets held for sale $ — $ 1,196,900 Discontinued operations related to this Retail sale in future years will primarily include: ● Revenues related to royalty income and purchase price adjustments ● Changes in allowance for bad debts related to Retail accounts receivable and amounts owed to the Company by its former Retail vendors ● Minor operating expenses related to above items In our Consolidated Statements of Cash Flows, the cash flows from discontinued operations are not separately classified. Cash provided by operating activities from discontinued operations during fiscal 2022, 2021 and 2020 was $4.2 million, $13.2 million and $11.3 million, respectively. Cash provided by investing activities from discontinued operations during fiscal 2022, 2021 and 2020 was $0, $9.2 million, $0 million, respectively. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Mar. 27, 2022 | |
Schedule II - Valuation and Qualifying Accounts | |
Schedule II - Valuation and Qualifying Accounts | Schedule II: Valuation and Qualifying Accounts For the fiscal years ended: 2022 2021 2020 Allowance for doubtful accounts: Balance, beginning of period $ 1,584,200 $ 3,288,800 $ 2,137,900 Provision for bad debts and other adjustments 349,000 (971,600) 2,100,400 Write-offs (831,300) (733,000) (949,500) Balance, end of period $ 1,101,900 $ 1,584,200 $ 3,288,800 2022 2021 2020 Inventory Reserve: Balance, beginning of period $ 3,359,100 $ 9,666,100 $ 5,870,600 Inventory reserve expense 3,250,777 146,600 11,801,500 Write-offs and other adjustments (2,042,200) (6,453,600) (8,006,000) Balance, end of period $ 4,567,677 $ 3,359,100 $ 9,666,100 2022 2021 2020 Allowance for deferred tax asset: Balance, beginning of period $ 2,866,800 $ 2,047,300 $ 141,600 Income tax expense (benefit) (323,200) 819,500 1,905,700 Write-offs and other adjustments — — — Balance, end of period $ 2,543,600 $ 2,866,800 $ 2,047,300 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 27, 2022 | |
Summary of Significant Accounting Policies | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. |
Fiscal Year | Fiscal Year The Company's fiscal year is the 52 or 53 weeks ending on the Sunday falling on or between March 26 and April 1 to allow the financial year to better reflect the Company's natural weekly accounting and business cycle. The fiscal years ended March 27, 2022, March 28, 2021 and March 29, 2020 each contained 52 weeks. |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform to current year presentations, including the Change in income taxes receivables on the Company’s Consolidated Statements of Cash Flows. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash and highly liquid investments with an original maturity of 90 days or less. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company uses estimates to determine the amount of the allowance for doubtful accounts necessary to reduce accounts receivable to their expected net realizable value. The Company estimates the amount of the required allowance by reviewing the status of past-due receivables and analyzing historical bad debt trends and current economic conditions. Actual collection experience has not varied significantly from estimates, due primarily to consistent credit policies, collection experience, as well as the Company’s stability as it relates to its current customer base. Typical payments from a large majority of commercial customers are due 30 days from the date of the invoice. The Company charges-off receivables deemed to be uncollectible to the allowance for doubtful accounts. Accounts receivable balances are not collateralized by our customers. At March 27, 2022 and March 28, 2021, the allowance for doubtful accounts related to customers in continuing operations was $1,057,800 and $1,584,200, respectively. |
Product Inventory | Product Inventory Product inventory, consisting primarily of finished goods, is stated at the lower of cost or net realizable value, cost being determined on the first-in, first-out (“FIFO”) method and includes certain charges directly and indirectly incurred in bringing product inventories to the point of sale. Inventory is written down for estimated obsolescence equal to the difference between the carrying value of inventory and the estimated net realizable value, based upon specifically known inventory-related risks (such as technological obsolescence and the nature of supplier terms surrounding price protection and product returns), and assumptions about future demand. At March 27, 2022 and March 28, 2021, the Company had a reserve for excess and obsolete inventory of $4,567,700 and $3,359,000, respectively. The increase in the reserve is primarily related to an increase in excess inventory levels. |
Property and Equipment | Property and Equipment Property and equipment is stated at cost. Depreciation is recorded using the straight-line method over the estimated useful lives of the assets as follows: Useful lives Information technology equipment 1 - 3 years Furniture, telephone system, equipment and tooling 3 - 10 years Building, building improvements and leasehold improvements 2 - 40 years Leasehold improvements are amortized over the shorter of their useful lives or the remaining lease term. |
Intangibles | Intangibles The Company capitalizes computer software costs incurred in connection with developing or obtaining computer software for internal use when both the preliminary project stage is completed and when management authorizes and commits to funding the project and it is probable that the project will be completed. Development and acquisition costs are capitalized when the focus of the software project is either to develop new software, to increase the life of existing software or to add significantly to the functionality of existing software. Capitalization ceases when the software project is substantially complete and ready for its intended use. Amortization is recorded using the straight-line method over the estimated useful life which ranges from one |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or group of assets may not be fully recoverable. These events or changes in circumstances may include a significant deterioration of operating results, changes in business plans, or changes in anticipated future cash flows. If an impairment indicator is present, the Company evaluates recoverability by a comparison of the carrying amount of the assets to future undiscounted net cash flows expected to be generated by the assets. Assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of the cash flows generated by other asset groups. If future undiscounted cash flows are less than the carrying value of the asset group, the Company calculates the fair value of the asset group. If the assets are impaired, the impairment recognized is measured by the amount by which the carrying amount exceeds the fair value of the assets. Fair value is generally determined by estimates of discounted cash flows. The discount rate used in any estimate of discounted cash flows would be the rate required for a similar investment of like risk. There were no impairment charges of long-lived assets in fiscal years 2022, 2021, or 2020. |
Indefinite-Lived Intangible Assets | Indefinite-Lived Intangible Assets The indefinite-lived intangible asset impairment test involves an initial qualitative analysis to determine if it is more likely than not that an intangible asset’s fair value is less than its carrying amount. If qualitative factors suggest a possible impairment, the Company then determines the fair value of the intangible asset. If the fair value of the intangible asset is less than its carrying value, an impairment loss is recognized for an amount equal to the difference. The intangible asset is then carried at its new fair value. We measure the fair value of our indefinite-lived intangible asset using the “relief from royalty” method. Significant estimates in this approach include projected revenues and royalty and discount rates. The estimates of discounted cash flows will likely change over time as impairment tests are performed. Based on the Company’s quantitative impairment tests performed, the Company recognized an $11.7 million impairment loss on goodwill in fiscal year 2020, of which $9.1 million related to continuing operations and $2.6 million related to discontinued operations. The Company did not recognize an impairment loss on goodwill or other indefinite-lived intangible assets in fiscal years 2022 or 2021. The methods of assessing fair value for indefinite-lived assets require significant judgments to be made by management, including future revenues, expenses, cash flows and discount rates. Changes in such estimates or the application of alternative assumptions could produce significantly different results. |
Other Long-Term Assets | Other Long-Term Assets Other long-term assets consist of capitalized implementation costs of hosting arrangements, cash surrender value of life insurance policies related to a Supplemental Executive Retirement Plan (see Note 14), and deferred debt financing costs. Capitalized implementation costs of hosting arrangements that are accounted for as service contracts, which relate to our SAP ERP implementation, were $5.7 million and $3.1 million as of March 27, 2022 and March 28, 2021, respectively. |
Revenue Recognition and Supplier Programs | Revenue Recognition We account for revenue in accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers In most cases, shipments are made using freight on board (“FOB”) shipping terms. FOB destination terms are used for a portion of sales, and revenue for these sales is recorded when the product is received by the customer. Prices are always fixed at the time of sale. Historically, there have not been any material concessions provided to or by customers, future discounts provided by the Company, or other incentives subsequent to a sale. We recognize revenues from sales transactions containing sales returns provisions at the time of the sale. The potential for customer returns are considered a component of variable consideration under ASC 606 and it is therefore considered when estimating the transaction price for a sale. We use the most likely amount method to determine the amount of expected returns. The amount of expected returns is recognized as a refund liability, representing the obligation to return the customer’s consideration. The return asset is measured at the former carrying amount of the inventory, less any expected costs to recover the goods, which is included in prepaid expenses and other current assets on the accompanying Consolidated Balance Sheets. Customers Our current and potential customers are continuing to look for ways to reduce their inventories and lower their total costs, including distribution, order taking and fulfillment costs, while still providing their customers excellent service. Some of these companies have turned to us to implement supply chain solutions, including purchasing inventory, assisting in demand forecasting, configuring, packaging, kitting and delivering products and managing customer and supplier relations, from order taking through cash collections. In performing these solutions, we assume varying levels of involvement in the transactions and varying levels of credit and inventory risk. As our offerings continually evolve to meet the needs of our customers, the Company constantly evaluates its revenue accounting based on the guidance set forth in accounting standards generally accepted in the United States. When applying this guidance in accordance with ASC 606, the Company looks at the following indicators: whether we are the primary obligor in the transaction; whether we have general inventory risk; whether we have latitude in establishing price; whether the customer holds us responsible for the acceptability of the product; whether the product returns are handled by us; and whether obligations exists between the other parties and our customer. Each of the Company’s customer relationships is independently evaluated based on the above guidance and revenues are recorded on the appropriate basis. Based on a review of the factors above, in the majority of the Company’s sales relationships, the Company has concluded that it is the principal in the transaction and records revenues based upon the gross amounts earned and booked. However, the Company does have relationships where it is not the principal and records revenues on a net fee basis, regardless of amounts billed (less than 1% of total revenues for fiscal year 2022). Other than sales relating to the Company’s private brands, we offer no product warranties in excess of original equipment manufacturers’ warranties. Warranty expense was immaterial for fiscal years 2022, 2021, and 2020. Supplier Programs Funds received from suppliers for product rebates and marketing/promotion are recorded as a reduction in cost of goods sold in accordance with ASC 705-20, Cost of Sales and Services - Accounting for Consideration Received from a Vendor |
Shipping and Handling Costs | Shipping and Handling Costs Shipping costs incurred to ship products from our distribution centers to our customers’ sites are included in selling, general and administrative expenses in the Consolidated Statements of Income (Loss) and totaled $13,249,600 $10,036,100, and $10,222,800 for fiscal years 2022, 2021, and 2020, respectively. |
Stock Compensation Awards | Stock Compensation Awards The Company records stock compensation expense for awards in accordance with ASC 718, Compensation – Stock Compensation |
Income Taxes | Income Taxes The Company accounts for income taxes under the asset and liability method in accordance with ASC 740, Income Taxes The Company’s accounting policy with respect to interest and penalties related to tax uncertainties is to classify these amounts as part of the provision for income taxes. In accordance with ASC 740, no provision for tax uncertainties was determined to be necessary as of March 27, 2022, March 28, 2021 and March 29, 2020. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company reviews and evaluates its estimates and assumptions, including but not limited to, those that relate to tax reserves, stock-based compensation, accounts receivable reserves, inventory reserves and future cash flows associated with impairment testing for long-lived assets. Actual results could significantly differ from those estimates. |
Recently Issued Accounting Pronouncements | Recently issued accounting pronouncements not yet adopted: In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses rather than incurred losses to estimate credit losses on certain types of financial instruments, including trade receivables. This may result in the earlier recognition of allowances for losses. This ASU is effective for periods beginning after December 15, 2022. The Company is currently evaluating the impact the adoption of this new standard will have on its Consolidated Financial Statements and will adopt the standard on the first day of the Company’s 2024 fiscal year. Recently issued accounting pronouncements adopted: In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in ASC 740 related to the approach for intraperiod tax allocation, and the methodology for calculating income taxes in an interim period. This ASU was effective for periods beginning after December 15, 2020. The Company adopted this standard on the first day of the 2022 fiscal year on a prospective basis. The standard did not have a material impact on the financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 27, 2022 | |
Summary of Significant Accounting Policies | |
Property and Equipment Useful Life | Useful lives Information technology equipment 1 - 3 years Furniture, telephone system, equipment and tooling 3 - 10 years Building, building improvements and leasehold improvements 2 - 40 years |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Mar. 27, 2022 | |
Property and Equipment | |
Property and Equipment | 2022 2021 Land $ 4,740,800 $ 4,740,800 Building, building improvements and leasehold improvements 21,136,800 21,265,400 Information technology equipment 4,598,100 5,003,000 Furniture, telephone system, equipment and tooling 8,630,700 8,910,500 39,106,400 39,919,700 Less accumulated depreciation (28,270,500) (27,348,100) Property and equipment, net $ 10,835,900 $ 12,571,600 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Mar. 27, 2022 | |
Goodwill and Other Intangible Assets | |
Schedule of future annual amortization expense for intangible assets | At March 27, 2022, estimated future annual amortization expense for intangible assets for the next five years is: 2023 $ 3,854,400 2024 5,117,100 2025 4,847,300 2026 4,657,800 2027 4,643,900 $ 23,120,500 |
Accrued expenses and other cu_2
Accrued expenses and other current liabilities (Tables) | 12 Months Ended |
Mar. 27, 2022 | |
Accrued expenses and other current liabilities | |
Accrued Expenses and Other Current Liabilities | March 27, 2022 March 28, 2021 Allowances for product returns $ 545,900 $ 1,967,300 Other accrued expenses 909,600 945,000 Total accrued expenses and other current liabilities $ 1,455,500 $ 2,912,300 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Mar. 27, 2022 | |
Debt | |
Schedule of principal maturities of debt outstanding | The principal maturities of debt outstanding at March 27, 2022, were as follows: 2023 $ 353,500 2024 365,700 2025 378,200 2026 391,200 2027 404,600 Thereafter 4,799,000 Total $ 6,692,200 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Mar. 27, 2022 | |
Leases | |
Schedule of maturities of lease liabilities | The following maturity analysis presents minimum expected operating lease payments at March 27, 2022: 2023 3,076,200 2024 2,778,100 2025 2,662,300 2026 2,040,000 2027 30,600 Thereafter — Total 10,587,200 Less: present value discount (1,434,700) Present value of lease liabilities $ 9,152,500 Weighted-average discount rate: 3.8% Weighted-average remaining lease term 3.6 years |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Mar. 27, 2022 | |
Business Segments | |
Schedule of Revenue and Gross Profit by Market | Segment information for the fiscal years ended 2022, 2021 and 2020 has been restated to reflect the change in segments during fiscal 2022 and is as follows (in thousands): Year Ended March 27, 2022 March 28, 2021 March 29, 2020 Revenues Carrier $ 180,740 $ 149,825 $ 156,395 Commercial 236,805 223,516 252,619 Total revenues $ 417,545 $ 373,341 $ 409,014 Gross Profit Carrier $ 20,985 $ 16,585 $ 18,699 Commercial 57,052 51,131 60,943 Total gross profit $ 78,037 $ 67,716 $ 79,642 Total Assets 2022 2021 Carrier $ 38,705 $ 29,829 Commercial 36,797 33,355 Corporate 127,012 125,893 Total Assets $ 202,513 $ 189,078 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 27, 2022 | |
Income Taxes | |
Effective Income Tax Rate Reconciliation | 2022 2021 2020 Statutory federal rate 21.0 % 21.0 % 21.0 % State taxes, net of federal benefit 0.7 3.4 1.8 Non-deductible expenses (2.0) (1.2) (0.7) Change in valuation allowance 5.2 (7.6) (2.9) Rate change for loss carrybacks 0.0 6.2 12.5 Other (0.4) (0.7) 0.7 Effective rate 24.5 % 21.1 % 32.4 % |
Provision for Income Taxes | 2022 2021 2020 Federal: Current $ (1,229,200) $ (4,263,700) $ (4,008,000) Deferred 126,500 (48,200) (2,642,800) State: Current 38,500 16,700 (411,000) Deferred (7,100) 450,700 (413,000) Benefit from income taxes $ (1,071,300) $ (3,844,500) $ (7,474,800) |
Deferred Tax Assets and Liabilities | 2022 2021 Deferred tax assets: Deferred compensation $ 202,000 $ 163,600 Accrued vacation 145,700 362,600 Deferred rent 2,100,400 2,638,100 Allowance for doubtful accounts 246,200 357,300 Inventory reserves 1,042,800 766,300 Sales tax reserves 127,600 104,500 Sales return assets 125,300 451,400 Net operating loss 1,969,800 518,500 Business interest limitation carryforward 555,300 383,800 Other assets 1,486,300 925,900 8,001,400 6,672,000 Valuation allowance (2,543,600) (2,866,800) Total deferred tax assets 5,457,800 3,805,200 Deferred tax liabilities: Depreciation and amortization (2,784,600) (214,600) Sales return liabilities (90,000) (224,100) Lease right of use (2,035,500) (2,589,600) Prepaid expenses and other liabilities (693,300) (803,400) Total deferred tax liabilities (5,603,400) (3,831,700) Net deferred tax (liability) assets $ (145,600) $ (26,500) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Mar. 27, 2022 | |
Earnings Per Share | |
Calculation of Basic and Diluted Earnings Per Common Share | Amounts in thousands, except per share amounts Amounts in thousands, except per share amounts 2022 2021 2020 Earnings per share from continuing operations – Basic: Net loss $ (3,312) $ (14,373) $ (15,601) Less: Distributed and undistributed earnings allocated to nonvested stock — — — Earnings available (loss attributable) to common shareholders – Basic $ (3,312) $ (14,373) $ (15,601) Weighted average common shares outstanding – Basic 8,928 8,697 8,527 Earnings (loss) per common share from continuing operations – Basic $ (0.37) $ (1.65) $ (1.83) Earnings per share – Diluted: Net income (loss) $ (3,312) $ (14,373) $ (15,601) Less: Distributed and undistributed earnings allocated to nonvested stock — — — Earnings available (loss attributable) to common shareholders – Diluted $ (3,312) $ (14,373) $ (15,601) Weighted average common shares outstanding – Basic 8,928 8,697 8,527 Effect of dilutive options — — — Weighted average common shares outstanding – Diluted 8,928 8,697 8,527 Loss per common share from continuing operations – Diluted $ (0.37) $ (1.65) $ (1.83) Anti-dilutive equity awards not included above 813 755 852 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Mar. 27, 2022 | |
Stock-Based Compensation | |
Schedule of Performance Stock Unit activity | 2022 2021 2020 Weighted Weighted Weighted Average Fair Average Fair Average Fair Shares Value at Grant Shares Value at Grant Shares Value at Grant Unvested shares available for issue under outstanding PSUs, beginning of period 13,552 $ 14.57 68,355 $ 15.00 98,306 $ 14.55 PSUs Granted 96,603 7.32 — — 51,616 15.93 PSUs Vested (7,930) 13.89 (21,690) 14.21 (29,036) 14.09 PSUs Forfeited/Cancelled (2,186) 13.79 (33,113) 15.69 (52,532) 9.82 Unvested shares available for issue under outstanding PSUs, end of period 100,039 $ 10.44 13,552 $ 14.57 68,355 $ 15.00 |
Schedule of Stock Options | 2022 2021 Weighted Weighted Average Fair Average Fair Shares Value at Grant Shares Value at Grant Unvested options, beginning of period 383,670 $ 1.47 465,374 2.38 Options Granted 194,500 3.62 240,000 2.05 Options Forfeited/Cancelled, net of vested options (83,500) 5.64 (127,625) 3.13 Options Vested (145,293) 2.20 (194,079) 3.28 Unvested options, end of period 349,377 2.83 383,670 1.47 March 27, 2022 Grant Fiscal Year Options Granted Option Exercise Price Options Outstanding Options Exercisable 2022 194,500 $ 7.22 174,500 - 2021 240,000 $ 4.70 110,000 48,854 2020 405,000 $ 13.54 307,000 194,018 2019 66,500 $ 16.31 18,000 17,250 2018 230,000 $ 15.12 60,000 60,000 2017 410,000 $ 12.57 263,958 263,958 2016 100,000 $ 22.42 - - Total 933,458 584,081 |
Schedule of assumptions of Black-Scholes-Merton option pricing model | Grant Fiscal Year Expected Stock Price Volatility Risk-Free Interest Rate Expected Dividend Yield Average Expected Term Resulting Black Scholes Value 2022 50.94 % 1.93 % 0.00 % 6.0 $ 3.62 2021 46.82 % 1.17 % 0.00 % 4.0 $ 2.05 2020 35.88 % 2.00 % 5.82 % 4.0 $ 2.53 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Mar. 27, 2022 | |
Discontinued Operations | |
Summary of financial results of the retail segment discontinued operations | Fiscal Years Ended March 27, 2022 March 28, 2021 March 29, 2020 Revenues $ 3,117,300 $ 86,728,300 $ 131,283,900 Cost of goods sold 2,090,700 74,238,800 119,102,800 Gross profit 1,026,600 12,489,500 12,181,100 Selling, general and administrative expenses 448,600 7,652,100 15,809,500 Goodwill impairment — — 2,569,100 Income (loss) from operations 578,000 4,837,400 (6,197,500) Gain on disposal — 3,020,800 — Income (loss) from operations before income taxes 578,000 7,858,200 (6,197,500) Provision for (benefit from) income taxes (33,300) 2,227,800 (230,000) Net income (loss) attributable to discontinued operations $ 611,300 $ 5,630,400 $ (5,967,500) March 27, March 28, 2022 2021 ASSETS Product inventory, net $ — $ 1,196,900 Current portion of assets held for sale $ — $ 1,196,900 |
Organization (Details)
Organization (Details) | 12 Months Ended |
Mar. 27, 2022 | |
US | Geographic Concentration Risk | Revenue | |
Concentration Risk | |
Concentration risk (as a percent) | 98.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - FY, Allowance for Doubtful Accounts and Inventory (Details) - USD ($) | 12 Months Ended | ||
Mar. 27, 2022 | Mar. 28, 2021 | Mar. 29, 2020 | |
Fiscal Year | |||
Fiscal year duration | 364 days | 364 days | 364 days |
Allowance for Doubtful Accounts | |||
Payment period from large majority of commercial customers | 30 days | ||
Allowance for doubtful accounts | $ 1,057,800 | $ 1,584,200 | |
Product Inventory | |||
Reserves for excess or obsolescence inventory | $ 4,567,700 | $ 3,359,000 | |
Minimum | |||
Fiscal Year | |||
Fiscal year duration | 364 days | ||
Maximum | |||
Fiscal Year | |||
Fiscal year duration | 371 days |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Property and Equipment (Details) | 12 Months Ended |
Mar. 27, 2022 | |
Minimum | Information technology equipment | |
Property and Equipment | |
Useful Lives | 1 year |
Minimum | Furniture, telephone system, equipment and tooling | |
Property and Equipment | |
Useful Lives | 3 years |
Minimum | Building, building improvements and leasehold improvements | |
Property and Equipment | |
Useful Lives | 2 years |
Maximum | Information technology equipment | |
Property and Equipment | |
Useful Lives | 3 years |
Maximum | Furniture, telephone system, equipment and tooling | |
Property and Equipment | |
Useful Lives | 10 years |
Maximum | Building, building improvements and leasehold improvements | |
Property and Equipment | |
Useful Lives | 40 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Intangibles (Details) - USD ($) | 12 Months Ended | ||
Mar. 27, 2022 | Mar. 28, 2021 | Mar. 29, 2020 | |
Impairment of Long-Lived Assets | |||
Impairment charges | $ 0 | $ 0 | $ 0 |
Computer software, excluding ERP | Minimum | |||
Intangibles and Other Long-Lived Assets | |||
Useful life | 1 year | ||
Computer software, excluding ERP | Maximum | |||
Intangibles and Other Long-Lived Assets | |||
Useful life | 3 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Indefinite-Lived Intangible Assets and Other Long-Lived Assets (Details) - USD ($) | 12 Months Ended | ||
Mar. 27, 2022 | Mar. 28, 2021 | Mar. 29, 2020 | |
Summary of Significant Accounting Policies | |||
Goodwill impairment, Continuing operations and discontinued operations | $ 11,677,700 | ||
Goodwill impairment, Continuing operations | 9,108,600 | ||
Goodwill impairment, Discontinued operations | $ 2,600,000 | ||
Impairment loss on goodwill or other indefinite lived intangible assets | $ 0 | $ 0 | |
Other Long-Term Assets | |||
Capitalized implementation costs | $ 5,700,000 | $ 3,100,000 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Revenue Recognition, Expenses and Shipping and Handling Costs (Details) - USD ($) | 12 Months Ended | ||
Mar. 27, 2022 | Mar. 28, 2021 | Mar. 29, 2020 | |
Revenue Recognition | |||
Accounts receivable, typical payment terms | 30 days | ||
Shipping and Handling Costs | |||
Shipping and handling costs | $ 13,249,600 | $ 10,036,100 | $ 10,222,800 |
Income Taxes | |||
Provision for tax uncertainties | $ 0 | $ 0 | $ 0 |
Maximum | |||
Revenue Recognition | |||
Revenue recorded on net fee basis (as a percent) | 1.00% |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | 12 Months Ended | ||
Mar. 27, 2022 | Mar. 28, 2021 | Mar. 29, 2020 | |
Property and Equipment | |||
Property and equipment, gross | $ 39,106,400 | $ 39,919,700 | |
Less accumulated depreciation | (28,270,500) | (27,348,100) | |
Property and equipment, net | 10,835,900 | 12,571,600 | |
Depreciation | 1,562,700 | 1,667,500 | $ 1,683,000 |
Land | |||
Property and Equipment | |||
Property and equipment, gross | 4,740,800 | 4,740,800 | |
Building, building improvements and leasehold improvements | |||
Property and Equipment | |||
Property and equipment, gross | 21,136,800 | 21,265,400 | |
Information technology equipment | |||
Property and Equipment | |||
Property and equipment, gross | 4,598,100 | 5,003,000 | |
Furniture, telephone system, equipment and tooling | |||
Property and Equipment | |||
Property and equipment, gross | $ 8,630,700 | $ 8,910,500 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Description (Details) - USD ($) | 12 Months Ended | ||
Mar. 27, 2022 | Mar. 28, 2021 | Mar. 29, 2020 | |
Goodwill and Other Intangible Assets | |||
Goodwill impairment, Continuing operations | $ 9,108,600 | ||
Goodwill impairment, Discontinued operations | 2,600,000 | ||
Goodwill | $ 0 | $ 0 | |
Capitalized computer software | 29,463,100 | 18,341,100 | |
Indefinite lived intangible assets | 795,400 | 795,400 | |
Computer software | |||
Goodwill and Other Intangible Assets | |||
Amortization expense | $ 920,000 | $ 2,077,000 | $ 1,954,700 |
Computer software, ERP | |||
Goodwill and Other Intangible Assets | |||
Amortization period | 7 years |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Amortization (Details) | Mar. 27, 2022USD ($) |
Future annual amortization expense for intangible assets | |
2023 | $ 3,854,400 |
2024 | 5,117,100 |
2025 | 4,847,300 |
2026 | 4,657,800 |
2027 | 4,643,900 |
Amortization expense for next five years | $ 23,120,500 |
Accrued expenses and other cu_3
Accrued expenses and other current liabilities - (Details) - USD ($) | Mar. 27, 2022 | Mar. 28, 2021 |
Accrued expenses and other current liabilities | ||
Allowances for product returns | $ 545,900 | $ 1,967,300 |
Other accrued expenses | 909,600 | 945,000 |
Total accrued expenses and other current liabilities | 1,455,500 | 2,912,300 |
Return asset | 400,000 | 1,000,000 |
Return liability | $ 545,900 | $ 1,967,300 |
Borrowings Under Revolving Cr_2
Borrowings Under Revolving Credit Facility - Credit Agreements (Details) | Jan. 05, 2022USD ($) | Jul. 12, 2021 | Oct. 29, 2020USD ($)item | Mar. 27, 2022USD ($) |
Credit Facility | ||||
Average borrowings during period, Credit facility | $ 46,748,300 | |||
Maximum borrowings during period, Credit facility | $ 57,717,700 | |||
2020 Revolving Credit Facility | ||||
Credit Facility | ||||
Maximum borrowing capacity | $ 80,000,000 | $ 75,000,000 | ||
Maximum aggregate commitment amount | $ 125,000,000 | |||
Borrowing base as a percent of eligible accounts | 85.00% | |||
Fixed charge coverage ratio | 1 | |||
Fee on unused portion of revolving credit facility (as a percent) | 0.25% | 0.25% | ||
Number of financial covenants | item | 1 | |||
Percentage of maximum amount of credit facility | 16.70% | |||
Debt instrument, excess availability amount | $ 12,525,000 | |||
Debt instrument, excess availability, threshold amount | $ 15,000,000 | 12,500,000 | ||
Outstanding balance | $ 36,900,000 | |||
Available borrowing capacity | 43,100,000 | |||
Maximum amount of shares that may be repurchased in twelve consecutive month period in connection with payment of tax withholding obligations under equity compensation plans | $ 2,000,000 | |||
Consecutive period for limit on share repurchase amount | 12 months | |||
Minimum average excess availability threshold required for paying dividends | $ 20,000,000 | |||
Period for determining average excess availability threshold required for paying dividend | 30 days | |||
Minimum daily excess availability threshold required for paying dividends | $ 13,280,000 | |||
Interest rate (as a percent) | 2.70% | |||
Weighted average interest rate during the period (as a percent) | 2.63% | |||
Interest expense | $ 624,900 | |||
Capitalized interest | $ 680,000 | |||
Reduction in applicable rates and fees | 0.0025 | |||
Increase of applicable rate upon event of default (as a percent) | 2.00% | |||
Amount of Availability Block | $ 10,000,000 | |||
Period of Availability Block | 1 year | |||
Period over which entity may be relieved of any Fixed Charge Coverage Ratio testing without regard to the amount of Excess Availability | 1 year | |||
Maximum borrowing availability without maintaining fixed charge coverage ratio | $ 70,000,000 | $ 62,500,000 | ||
2020 Revolving Credit Facility | Minimum | ||||
Credit Facility | ||||
Inventory age | 180 days | |||
2020 Revolving Credit Facility | Maximum | ||||
Credit Facility | ||||
Inventory age | 181 days | |||
Amount included in formula to determine borrowing base | $ 4,000,000 | |||
2020 Revolving Credit Facility | LIBOR | ||||
Credit Facility | ||||
Interest rate spread on variable rate basis (as a percent) | 2.25% | |||
Floor percentage | 0.25% | |||
2020 Revolving Credit Facility | LIBOR | Debt Instrument Covenant, If Fixed Coverage Ratio is Less Than 1.10 | ||||
Credit Facility | ||||
Fixed charge coverage ratio | 1.10 | |||
Interest rate spread on variable rate basis (as a percent) | 2.25% | |||
2020 Revolving Credit Facility | LIBOR | Debt Instrument Covenant, If Fixed Coverage Ratio is Greater Than Or Equal To 1.10 | ||||
Credit Facility | ||||
Fixed charge coverage ratio | 1.10 | |||
Interest rate spread on variable rate basis (as a percent) | 2.00% | |||
2020 Revolving Credit Facility | Base rate | ||||
Credit Facility | ||||
Interest rate spread on variable rate basis (as a percent) | 1.25% | |||
2020 Revolving Credit Facility | Base rate | Debt Instrument Covenant, If Fixed Coverage Ratio is Less Than 1.10 | ||||
Credit Facility | ||||
Fixed charge coverage ratio | 1.10 | |||
Interest rate spread on variable rate basis (as a percent) | 1.25% | |||
2020 Revolving Credit Facility | Base rate | Debt Instrument Covenant, If Fixed Coverage Ratio is Greater Than Or Equal To 1.10 | ||||
Credit Facility | ||||
Fixed charge coverage ratio | 1.10 | |||
Interest rate spread on variable rate basis (as a percent) | 1.00% | |||
2020 Revolving Credit Facility | Letter of Credit | ||||
Credit Facility | ||||
Maximum borrowing capacity | $ 5,000,000 |
Debt - Terms (Details)
Debt - Terms (Details) ft² in Thousands | Dec. 30, 2021USD ($)ft² |
Debt instrument | |
Area of operating facility owned (in square feet) | ft² | 115 |
Symetra Loan | |
Debt instrument | |
Aggregate sum borrowed | $ 6,500,000 |
Frequency of periodic payment | monthly |
Monthly payment | $ 47,858 |
Fixed interest rate (as a percent) | 3.38% |
First interest period | 5 years |
Interest rate adjustment period, one | 5 years |
Interest rate adjustment period, two | 10 years |
Debt instrument term | 15 years |
Potential additional amount to be advanced | $ 250,000 |
Debt - Maturities (Details)
Debt - Maturities (Details) - Debt, excluding revolving line of credit | Mar. 27, 2022USD ($) |
Maturities of debt | |
2023 | $ 353,500 |
2024 | 365,700 |
2025 | 378,200 |
2026 | 391,200 |
2027 | 404,600 |
Thereafter | 4,799,000 |
Total | $ 6,692,200 |
Leases - Office space (Details)
Leases - Office space (Details) - USD ($) | 12 Months Ended | ||
Mar. 27, 2022 | Mar. 28, 2021 | Mar. 29, 2020 | |
Leases | |||
Rent expense | $ 2,848,400 | $ 3,453,500 | $ 3,046,000 |
Minimum | |||
Leases | |||
Lease term | 1 year | ||
Maximum | |||
Leases | |||
Lease term | 5 years | ||
Leased office space, Timonium, Maryland | Minimum | |||
Leases | |||
Base rental rate per month | $ 205,100 | ||
Leased office space, Timonium, Maryland | Maximum | |||
Leases | |||
Base rental rate per month | 220,800 | ||
Leased office space, Hunt Valley, Maryland | Minimum | |||
Leases | |||
Base rental rate per month | 41,800 | ||
Leased office space, Hunt Valley, Maryland | Maximum | |||
Leases | |||
Base rental rate per month | $ 43,000 |
Leases - Quantitative informati
Leases - Quantitative information (Details) | Mar. 27, 2022USD ($) |
Schedule of minimum expected operating lease payments | |
2023 | $ 3,076,200 |
2024 | 2,778,100 |
2025 | 2,662,300 |
2026 | 2,040,000 |
2027 | 30,600 |
Total | 10,587,200 |
Less: present value discount | (1,434,700) |
Present value of lease liabilities | $ 9,152,500 |
Weighted-average discount rate: | 3.80% |
Weighted-average remaining lease term | 3 years 7 months 6 days |
Business Segments - Segment Act
Business Segments - Segment Activity (Details) | 12 Months Ended | ||
Mar. 27, 2022USD ($)itemsegment | Mar. 28, 2021USD ($)segment | Mar. 29, 2020USD ($) | |
Segments | |||
Number of reportable segments | segment | 2 | 1 | |
Market unit activity | |||
Revenues | $ 417,544,800 | $ 373,340,700 | $ 409,014,400 |
Gross Profit | 78,036,900 | 67,715,600 | 79,641,900 |
Assets | $ 202,513,300 | 189,077,900 | |
Minimum | |||
Segments | |||
Number manufacturers of products for which the Company is a distributor. | item | 300 | ||
Corporate | |||
Market unit activity | |||
Assets | $ 127,012,000 | 125,893,000 | |
Carrier Segment | |||
Market unit activity | |||
Revenues | 180,740,000 | 149,825,000 | 156,395,000 |
Gross Profit | 20,985,000 | 16,585,000 | 18,699,000 |
Carrier Segment | Segments | |||
Market unit activity | |||
Assets | 38,705,000 | 29,829,000 | |
Commercial Segment | |||
Market unit activity | |||
Revenues | 236,805,000 | 223,516,000 | 252,619,000 |
Gross Profit | 57,052,000 | 51,131,000 | $ 60,943,000 |
Commercial Segment | Segments | |||
Market unit activity | |||
Assets | $ 36,797,000 | $ 33,355,000 |
Stock Buyback (Details)
Stock Buyback (Details) - USD ($) | 12 Months Ended | ||
Mar. 27, 2022 | Mar. 28, 2021 | Mar. 29, 2020 | |
Stock Buyback | |||
Tax withholding for share based compensation | $ 66,400 | $ 121,500 | $ 201,000 |
Retirement of Treasury Stock (D
Retirement of Treasury Stock (Details) - USD ($) | Jul. 02, 2020 | Mar. 27, 2022 | Mar. 28, 2021 | Jun. 28, 2020 |
Treasury stock (in shares) | 19,200 | 10,250 | 5,789,600 | |
Treasury stock at cost | $ 129,200 | $ 62,800 | $ 58,555,000 | |
Increase in unissued shares upon retirement | 5,789,600 | |||
Common stock, authorized (in shares) | 15,000,000 | 15,000,000 | 15,000,000 | |
Treasury Stock Retirement Resolutions 2020 | ||||
Change to total stockholders' equity | $ 0 |
Income Taxes - Reconciliation (
Income Taxes - Reconciliation (Details) | 12 Months Ended | ||
Mar. 27, 2022 | Mar. 28, 2021 | Mar. 29, 2020 | |
Effective income tax rate reconciliation | |||
Statutory federal rate (as a percent) | 21.00% | 21.00% | 21.00% |
State taxes, net of federal benefit (as a percent) | 0.70% | 3.40% | 1.80% |
Non-deductible expenses (as a percent) | (2.00%) | (1.20%) | (0.70%) |
Change in valuation allowance (as a percent) | 5.20% | (7.60%) | (2.90%) |
Rate change for loss carrybacks | 0.00% | 6.20% | 12.50% |
Other (as a percent) | (0.40%) | (0.70%) | 0.70% |
Effective rate (as a percent) | 24.50% | 21.10% | 32.40% |
Income Taxes - Provision for Co
Income Taxes - Provision for Continuing Operations (Details) - USD ($) | 12 Months Ended | ||
Mar. 27, 2022 | Mar. 28, 2021 | Mar. 29, 2020 | |
Federal | |||
Current | $ (1,229,200) | $ (4,263,700) | $ (4,008,000) |
Deferred | 126,500 | (48,200) | (2,642,800) |
State | |||
Current | 38,500 | 16,700 | (411,000) |
Deferred | (7,100) | 450,700 | (413,000) |
Benefit from income taxes | $ (1,071,300) | $ (3,844,500) | $ (7,474,800) |
Income Taxes - Deferred Taxes (
Income Taxes - Deferred Taxes (Details) - USD ($) | Mar. 27, 2022 | Mar. 28, 2021 |
Deferred tax assets : | ||
Deferred compensation | $ 202,000 | $ 163,600 |
Accrued vacation | 145,700 | 362,600 |
Deferred rent | 2,100,400 | 2,638,100 |
Allowance for doubtful accounts | 246,200 | 357,300 |
Inventory reserves | 1,042,800 | 766,300 |
Sales tax reserves | 127,600 | 104,500 |
Sales return assets | 125,300 | 451,400 |
Net operating loss | 1,969,800 | 518,500 |
Business interest limitation carryforward | 555,300 | 383,800 |
Other assets | 1,486,300 | 925,900 |
Total gross deferred tax assets | 8,001,400 | 6,672,000 |
Valuation allowance | (2,543,600) | (2,866,800) |
Total deferred tax assets | 5,457,800 | 3,805,200 |
Deferred tax liabilities : | ||
Depreciation and amortization | (2,784,600) | (214,600) |
Sales return liabilities | (90,000) | (224,100) |
Lease right of use | (2,035,500) | (2,589,600) |
Prepaid expenses and other liabilities | (693,300) | (803,400) |
Total deferred tax liabilities | (5,603,400) | (3,831,700) |
Net Deferred Tax Liabilities | (145,600) | $ (26,500) |
Net operating loss carryforwards, Subject to expiration | $ 94,258,300 |
Income Taxes - Unrecognized tax
Income Taxes - Unrecognized tax benefits (Details) - USD ($) | 12 Months Ended | ||
Mar. 27, 2022 | Mar. 28, 2021 | Mar. 29, 2020 | |
Income Taxes | |||
Unrecognized tax benefits | $ 0 | $ 0 | |
Amount of interest and penalties expense (benefit) related to tax uncertainties recognized, net of federal expense/benefit | 0 | 0 | $ 0 |
Cumulative amount of interest and penalties related to tax uncertainties | $ 0 | $ 0 |
Retirement Plans - 401(k) (Deta
Retirement Plans - 401(k) (Details) - USD ($) | 12 Months Ended | ||
Mar. 27, 2022 | Mar. 28, 2021 | Mar. 29, 2020 | |
Retirement Plans | |||
Defined contribution plan expense | $ 700,500 | $ 806,000 | $ 937,500 |
Common stock shares included in plan assets (in shares) | 264,600 |
Retirement Plans - Supplemental
Retirement Plans - Supplemental Plan (Details) - USD ($) | 12 Months Ended | |
Mar. 27, 2022 | Mar. 28, 2021 | |
Defined Benefit Plan | ||
Plan type | us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember | us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember |
Other long-term assets | ||
Defined Benefit Plan | ||
Cash surrender value of life insurance policy | $ 2,652,700 | $ 2,680,700 |
Other long-term liabilities | ||
Defined Benefit Plan | ||
Net present value of benefit obligation | $ 753,200 | $ 809,400 |
Earnings Per Share - Continuing
Earnings Per Share - Continuing Operations (Details) - USD ($) | 12 Months Ended | ||
Mar. 27, 2022 | Mar. 28, 2021 | Mar. 29, 2020 | |
Earnings per share from continuing operations - Basic: | |||
Net loss | $ (3,312,100) | $ (14,373,300) | $ (15,601,400) |
Earnings available (loss attributable) to common shareholders - Basic | $ (3,312,000) | $ (14,373,000) | $ (15,601,000) |
Weighted average common shares outstanding - Basic (in shares) | 8,927,837 | 8,697,369 | 8,526,965 |
Earnings (loss) per common share from continuing operations - Basic (in dollars per share) | $ (0.37) | $ (1.65) | $ (1.83) |
Diluted (loss) income per share | |||
Net loss | $ (3,312,100) | $ (14,373,300) | $ (15,601,400) |
Earnings available (loss attributable) to common shareholders - Diluted | $ (3,312,000) | $ (14,373,000) | $ (15,601,000) |
Weighted average common shares outstanding - Basic (in shares) | 8,927,837 | 8,697,369 | 8,526,965 |
Weighted average common shares outstanding - Diluted (in shares) | 8,927,837 | 8,697,369 | 8,526,965 |
Loss per common share from continuing operations - Diluted (in dollars per share) | $ (0.37) | $ (1.65) | $ (1.83) |
Options outstanding (in shares) | 933,458 | ||
Anti-dilutive equity awards (in shares) | 813,000 | 755,000 | 852,000 |
Stock Options | |||
Diluted (loss) income per share | |||
Options outstanding (in shares) | 933,000 | 925,000 | 862,000 |
Anti-dilutive equity awards (in shares) | 813,000 | 755,000 | 852,000 |
Performance Stock Units | |||
Diluted (loss) income per share | |||
Anti-dilutive equity awards (in shares) | 0 | 0 | 0 |
RSUs | |||
Diluted (loss) income per share | |||
Anti-dilutive equity awards (in shares) | 0 | 0 | 0 |
Stock-Based Compensation - Plan
Stock-Based Compensation - Plan (Details) - USD ($) | 12 Months Ended | ||
Mar. 27, 2022 | Mar. 28, 2021 | Mar. 29, 2020 | |
Stock-based compensation | |||
Income tax benefit from share-based compensation (in dollars) | $ 365,500 | $ 255,600 | $ 386,100 |
Number of shares available for grant (in shares) | 344,371 | ||
Options Granted (in shares) | 194,500 | 240,000 | |
Performance Stock Units | |||
Stock-based compensation | |||
Cancelled (in shares) | 2,186 | 33,113 | 52,532 |
Granted (in shares) | 96,603 | 51,616 | |
Selling, general and administrative expenses | |||
Stock-based compensation | |||
Stock-based compensation (in dollars) | $ 1,338,900 | $ 1,211,000 | $ 1,174,600 |
Stock-Based Compensation - Perf
Stock-Based Compensation - Performance Stock Units (Details) - Performance Stock Units - USD ($) | 12 Months Ended | ||
Mar. 27, 2022 | Mar. 28, 2021 | Mar. 29, 2020 | |
Stock-based compensation | |||
Measurement period | 1 year | ||
PSU Activity | |||
Unvested shares available for issue under outstanding PSUs, beginning of period (in shares) | 13,552 | 68,355 | 98,306 |
Granted (in shares) | 96,603 | 51,616 | |
Vested (in shares) | (7,930) | (21,690) | (29,036) |
Forfeited/cancelled (in shares) | (2,186) | (33,113) | (52,532) |
Unvested shares available for issue under outstanding PSUs, end of period (in shares) | 100,039 | 13,552 | 68,355 |
Unvested PSUs, Weighted-Average Fair Value at Grant Date (per unit) | |||
Unvested shares available for issue under outstanding PSUs, beginning of period (in dollars per share) | $ 14.57 | $ 15 | $ 14.55 |
Granted (in dollars per share) | 7.32 | 15.93 | |
Vested (in dollars per share) | 13.89 | 14.21 | 14.09 |
Forfeited/cancelled (in dollars per share) | 13.79 | 15.69 | 9.82 |
Unvested shares available for issue under outstanding PSUs, end of period (in dollars per share) | $ 10.44 | $ 14.57 | $ 15 |
Additional stock based compensation information | |||
Total fair value of shares vested during period (in dollars) | $ 57,900 | $ 103,300 | $ 780,400 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock and RSUs (Details) | May 25, 2021shares | Apr. 29, 2021shares | May 10, 2019individualshares | Jul. 24, 2020shares | Nov. 12, 2020shares | Mar. 27, 2022shares |
RSUs | ||||||
Stock-based compensation | ||||||
Number of shares for which vesting was accelerated | 30,000 | |||||
Grant Fiscal Year 2022 | RSUs | ||||||
Stock-based compensation | ||||||
Granted (in shares) | 12,000 | |||||
Annual vesting percentage | 25.00% | |||||
Unrecognized compensation costs, period for recognition | 3 years | |||||
Grant Fiscal Year 2022 | RSUs, In lieu of cash | ||||||
Stock-based compensation | ||||||
Granted (in shares) | 24,761 | |||||
Grant Fiscal Year 2022 | Restricted stock awards, In lieu of cash | ||||||
Stock-based compensation | ||||||
Granted (in shares) | 22,252 | |||||
Unrecognized compensation costs, period for recognition | 1 year | |||||
Grant Fiscal Year 2021 | RSUs | ||||||
Stock-based compensation | ||||||
Granted (in shares) | 30,000 | |||||
Annual vesting percentage | 25.00% | |||||
Unrecognized compensation costs, period for recognition | 1 year | |||||
Grant Fiscal Year 2021 | Restricted stock awards | ||||||
Stock-based compensation | ||||||
Granted (in shares) | 72,202 | |||||
Grant Fiscal Year 2021 | Restricted stock awards, In lieu of cash | ||||||
Stock-based compensation | ||||||
Granted (in shares) | 56,805 | |||||
Grant Fiscal Year 2020 | RSUs | ||||||
Stock-based compensation | ||||||
Granted (in shares) | 21,000 | |||||
Number of individuals that received stock awards | individual | 6 | |||||
Vesting period | 4 years |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Rollforward (Details) - $ / shares | 12 Months Ended | |
Mar. 27, 2022 | Mar. 28, 2021 | |
Stock Options: | ||
Options forfeited due to employee departures and option term expiration (in shares) | 183,500 | |
Weighted-average remaining contractual term | 2 years 9 months 18 days | |
Outstanding Options | ||
Unvested options, beginning of period (in shares) | 383,670 | 465,374 |
Options Granted (in shares) | 194,500 | 240,000 |
Options Forfeited/Cancelled, net of vested options (in shares) | (83,500) | (127,625) |
Options Vested (in shares) | (145,293) | (194,079) |
Unvested options, end of period (in shares) | 349,377 | 383,670 |
Weighted Average Fair Value at Grant Date (per unit) | ||
Unvested options, beginning of period (in dollars per share) | $ 1.47 | $ 2.38 |
Options Granted (in dollars per share) | 3.62 | 2.05 |
Options Forfeited/Cancelled, net of vested options (in dollars per share) | 5.64 | 3.13 |
Options Vested (in dollars per share) | 2.20 | 3.28 |
Unvested options, end of period | $ 2.83 | $ 1.47 |
Stock Options | Tranche one | ||
Stock Options: | ||
Vesting percentage | 25.00% | |
Vesting period | 1 year | |
Stock Options | Tranche two | ||
Stock Options: | ||
Vesting period | 3 years | |
Monthly percentage of vesting of share based compensation | 2.78% |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock Options By Grant Date (Details) - $ / shares | 12 Months Ended | ||||||
Mar. 27, 2022 | Mar. 28, 2021 | Mar. 29, 2020 | Mar. 31, 2019 | Apr. 01, 2018 | Mar. 26, 2017 | Mar. 27, 2016 | |
Outstanding options | |||||||
Options Granted (in shares) | 194,500 | 240,000 | |||||
Options Outstanding (in shares) | 933,458 | ||||||
Options Exercisable (in shares) | 584,081 | ||||||
Grant Fiscal Year 2022 | |||||||
Outstanding options | |||||||
Options Granted (in shares) | 194,500 | ||||||
Option Exercise Price (in dollars per share) | $ 7.22 | ||||||
Options Outstanding (in shares) | 174,500 | ||||||
Grant Fiscal Year 2021 | |||||||
Outstanding options | |||||||
Options Granted (in shares) | 240,000 | ||||||
Option Exercise Price (in dollars per share) | $ 4.70 | ||||||
Options Outstanding (in shares) | 110,000 | ||||||
Options Exercisable (in shares) | 48,854 | ||||||
Grant Fiscal Year 2020 | |||||||
Outstanding options | |||||||
Options Granted (in shares) | 405,000 | ||||||
Option Exercise Price (in dollars per share) | $ 13.54 | ||||||
Options Outstanding (in shares) | 307,000 | ||||||
Options Exercisable (in shares) | 194,018 | ||||||
Grant Fiscal Year 2019 | |||||||
Outstanding options | |||||||
Options Granted (in shares) | 66,500 | ||||||
Option Exercise Price (in dollars per share) | $ 16.31 | ||||||
Options Outstanding (in shares) | 18,000 | ||||||
Options Exercisable (in shares) | 17,250 | ||||||
Grant Fiscal Year 2018 | |||||||
Outstanding options | |||||||
Options Granted (in shares) | 230,000 | ||||||
Option Exercise Price (in dollars per share) | $ 15.12 | ||||||
Options Outstanding (in shares) | 60,000 | ||||||
Options Exercisable (in shares) | 60,000 | ||||||
Grant Fiscal Year 2017 | |||||||
Outstanding options | |||||||
Options Granted (in shares) | 410,000 | ||||||
Option Exercise Price (in dollars per share) | $ 12.57 | ||||||
Options Outstanding (in shares) | 263,958 | ||||||
Options Exercisable (in shares) | 263,958 | ||||||
Grant Fiscal Year 2016 | |||||||
Outstanding options | |||||||
Options Granted (in shares) | 100,000 | ||||||
Option Exercise Price (in dollars per share) | $ 22.42 |
Stock-Based Compensation - St_3
Stock-Based Compensation - Stock Option Valuation Assumptions (Details) - $ / shares | 12 Months Ended | ||
Mar. 27, 2022 | Mar. 28, 2021 | Mar. 29, 2020 | |
Valuation assumptions | |||
Resulting Black Scholes Value (in dollars per share) | $ 3.62 | $ 2.05 | |
Grant Fiscal Year 2022 | Stock Options | |||
Valuation assumptions | |||
Expected Stock Price Volatility (as a percent) | 50.94% | ||
Risk-Free Interest Rate (as a percent) | 1.93% | ||
Expected Dividend Yield (as a percent) | 0.00% | ||
Average Expected Term | 6 years | ||
Resulting Black Scholes Value (in dollars per share) | $ 3.62 | ||
Grant Fiscal Year 2021 | Stock Options | |||
Valuation assumptions | |||
Expected Stock Price Volatility (as a percent) | 46.82% | ||
Risk-Free Interest Rate (as a percent) | 1.17% | ||
Expected Dividend Yield (as a percent) | 0.00% | ||
Average Expected Term | 4 years | ||
Resulting Black Scholes Value (in dollars per share) | $ 2.05 | ||
Grant Fiscal Year 2020 | Stock Options | |||
Valuation assumptions | |||
Expected Stock Price Volatility (as a percent) | 35.88% | ||
Risk-Free Interest Rate (as a percent) | 2.00% | ||
Expected Dividend Yield (as a percent) | 5.82% | ||
Average Expected Term | 4 years | ||
Resulting Black Scholes Value (in dollars per share) | $ 2.53 |
Stock-Based Compensation - St_4
Stock-Based Compensation - Stock Option Grants (Details) - USD ($) | 12 Months Ended | ||
Mar. 27, 2022 | Mar. 28, 2021 | Mar. 29, 2020 | |
Stock-based compensation | |||
Options Exercised (in shares) | 2,500 | 0 | |
Exercise of stock options (in dollars) | $ 10,900 | $ 681,100 | |
Options Exercised, weighted average exercise price (in dollars per share) | $ 4.36 | ||
Options Granted (in shares) | 194,500 | 240,000 | |
Intrinsic value of stock options outstanding (in dollars) | $ 0 | ||
Intrinsic value of stock options currently exercisable (in dollars) | 0 | ||
Stock Options | |||
Stock-based compensation | |||
Unrecognized compensation costs (in dollars) | $ 800,000 | ||
Unrecognized compensation costs, period for recognition | 4 years | ||
Tranche one | Stock Options | |||
Stock-based compensation | |||
Vesting percentage | 25.00% | ||
Vesting period | 1 year | ||
Tranche two | Stock Options | |||
Stock-based compensation | |||
Monthly percentage of vesting of share based compensation | 2.78% | ||
Vesting period | 3 years |
Stock-Based Compensation - St_5
Stock-Based Compensation - Stock Purchase Plan (Details) - Team Member Stock Purchase Plan [Member] - USD ($) | 12 Months Ended | ||
Mar. 27, 2022 | Mar. 28, 2021 | Mar. 29, 2020 | |
Stock-based compensation | |||
Number of shares authorized (in shares) | 450,000 | ||
Purchase price of common stock (as a percent) | 85.00% | ||
Purchase period | 6 months | ||
Stock-based compensation (in dollars) | $ 54,400 | $ 61,500 | $ 78,400 |
Shares sold to employees (in shares) | 30,169 | 40,493 | 34,829 |
Weighted-average market value (in dollars per share) | $ 5.21 | $ 4.92 | $ 7.51 |
Fair Value Disclosure (Details)
Fair Value Disclosure (Details) - Recurring - USD ($) | Mar. 27, 2022 | Mar. 28, 2021 |
Fair Value | ||
Assets, measured at fair value | $ 0 | $ 0 |
Liabilities, measured at fair value | $ 0 | $ 0 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Details) - USD ($) | 12 Months Ended | ||
Mar. 27, 2022 | Mar. 28, 2021 | Mar. 29, 2020 | |
Supplemental Cash Flow Information | |||
(Refunds from) cash paid for income taxes, net | $ (4,247,900) | $ 21,000 | $ 1,515,300 |
Cash paid for interest | 1,355,100 | 952,700 | 1,106,300 |
Interest capitalized | $ 680,000 | $ 450,200 | $ 87,700 |
Concentration of Risk Related_2
Concentration of Risk Related to Continuing Operations (Details) - Revenue | 12 Months Ended | ||
Mar. 27, 2022customeritem | Mar. 28, 2021customeritem | Mar. 29, 2020customeritem | |
Customer Concentration Risk | Top ten customers | |||
Concentration Risk | |||
Number of customers | 10 | 10 | 10 |
Concentration risk (as a percent) | 35.00% | 34.00% | 34.00% |
Customer Concentration Risk | One customer | |||
Concentration Risk | |||
Number of customers | 1 | 1 | |
Concentration risk (as a percent) | 11.00% | 15.00% | |
Supplier Concentration Risk | Top ten suppliers | |||
Concentration Risk | |||
Number of suppliers | item | 10 | 10 | 10 |
Concentration risk (as a percent) | 54.00% | 53.00% | 54.00% |
Supplier Concentration Risk | Largest Supplier | |||
Concentration Risk | |||
Concentration risk (as a percent) | 29.00% | 29.00% | 30.00% |
Discontinued Operations - Gener
Discontinued Operations - General (Details) - Discontinued Operations, Disposed of by Sale - Ventev brand and other retail-related assets $ in Millions | Dec. 02, 2020USD ($) |
Discontinued Operations | |
Cash consideration | $ 9.5 |
Maximum royalty payments receivable | $ 3 |
Royalty payment period | 4 years |
Customer returns resale period | 2 years |
Discontinued Operations - Finan
Discontinued Operations - Financial Results of Retail Segment (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 27, 2020 | Mar. 27, 2022 | Mar. 28, 2021 | Mar. 29, 2020 | |
Discontinued Operations Income Statement Disclosures | ||||
Goodwill impairment | $ 2,600,000 | |||
Gain on disposal | $ 3,020,800 | |||
Net income (loss) attributable to discontinued operations | $ 611,300 | 5,630,400 | (5,967,500) | |
ASSETS | ||||
Current portion of assets held for sale | 1,196,900 | |||
Discontinued Operations, Disposed of by Sale | Ventev brand and other retail-related assets | ||||
Discontinued Operations Income Statement Disclosures | ||||
Revenues | 3,117,300 | 86,728,300 | ||
Cost of goods sold | 2,090,700 | 74,238,800 | ||
Gross profit | 1,026,600 | 12,489,500 | ||
Selling, general and administrative expenses | 448,600 | 7,652,100 | ||
Income from operations | 578,000 | 4,837,400 | ||
Gain on disposal | $ 3,000,000 | 3,020,800 | ||
Income (loss) from operations before income taxes | 578,000 | 7,858,200 | ||
Provision for (benefit from) income taxes | (33,300) | 2,227,800 | ||
Net income (loss) attributable to discontinued operations | $ 611,300 | 5,630,400 | ||
ASSETS | ||||
Product inventory, net | 1,196,900 | |||
Current portion of assets held for sale | $ 1,196,900 | |||
Discontinued Operation, Name of Segment | tess:RetailMarketSegmentMember | tess:RetailMarketSegmentMember | ||
Cash provided by operating activities from discontinued operations | $ 4,200,000 | $ 13,200,000 | ||
Cash provided by investing activities from discontinued operations | $ 0 | $ 9,200,000 | ||
Discontinued Operations, Held-for-sale | Ventev brand and other retail-related assets | ||||
Discontinued Operations Income Statement Disclosures | ||||
Revenues | 131,283,900 | |||
Cost of goods sold | 119,102,800 | |||
Gross profit | 12,181,100 | |||
Selling, general and administrative expenses | 15,809,500 | |||
Goodwill impairment | 2,569,100 | |||
Income from operations | (6,197,500) | |||
Income (loss) from operations before income taxes | (6,197,500) | |||
Provision for (benefit from) income taxes | (230,000) | |||
Net income (loss) attributable to discontinued operations | $ (5,967,500) | |||
ASSETS | ||||
Discontinued Operation, Name of Segment | tess:RetailMarketSegmentMember | |||
Cash provided by operating activities from discontinued operations | $ 11,300,000 | |||
Cash provided by investing activities from discontinued operations | $ 0 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) | 12 Months Ended | ||
Mar. 27, 2022 | Mar. 28, 2021 | Mar. 29, 2020 | |
Allowance for doubtful accounts: | |||
Change in valuation allowances and reserves | |||
Balance, beginning of period | $ 1,584,200 | $ 3,288,800 | $ 2,137,900 |
Provision / expense (benefit) | 349,000 | (971,600) | 2,100,400 |
Write-offs and other adjustments | (831,300) | (733,000) | (949,500) |
Balance, end of period | 1,101,900 | 1,584,200 | 3,288,800 |
Inventory Reserve: | |||
Change in valuation allowances and reserves | |||
Balance, beginning of period | 3,359,100 | 9,666,100 | 5,870,600 |
Provision / expense (benefit) | 3,250,777 | 146,600 | 11,801,500 |
Write-offs and other adjustments | (2,042,200) | (6,453,600) | (8,006,000) |
Balance, end of period | 4,567,677 | 3,359,100 | 9,666,100 |
Allowance for deferred tax asset: | |||
Change in valuation allowances and reserves | |||
Balance, beginning of period | 2,866,800 | 2,047,300 | 141,600 |
Provision / expense (benefit) | (323,200) | 819,500 | 1,905,700 |
Balance, end of period | $ 2,543,600 | $ 2,866,800 | $ 2,047,300 |