☒ |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
54-1817218
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
Large accelerated filer ☐
|
Accelerated filer ☒
|
|
Non-accelerated filer ☐ (Do not check if a smaller reporting company)
|
Smaller reporting company ☐
|
Part I. Financial Information:
|
||
Item 1.
|
||
5
|
||
6
|
||
7
|
||
8
|
||
10
|
||
11
|
||
Item 2.
|
26
|
|
Item 3.
|
42
|
|
Item 4.
|
43
|
|
Part II. Other Information:
|
||
Item 1.
|
43
|
|
Item 1A.
|
44
|
|
Item 2.
|
44
|
|
Item 3.
|
45
|
|
Item 4.
|
45
|
|
Item 5.
|
45
|
|
Item 6.
|
45
|
|
46
|
· |
national and international political instability fostering uncertainty and volatility in the global economy including exposure to fluctuation in foreign currency rates, and downward pressure on prices;
|
· |
significant adverse changes in, reductions in, or loss of our largest customer or one or more of our large customers, or vendors;
|
· |
exposure to changes in, interpretations of, or enforcement trends in legislation and regulatory matters;
|
· |
the creditworthiness of our customers and our ability to reserve adequately for credit losses;
|
· |
reduction of vendor incentives provided to us;
|
· |
we offer a comprehensive set of solutions — integrating information technology (IT) product sales, third-party software assurance and maintenance, our advanced professional and managed services, our proprietary software, and financing, and encounter the following challenges, risks, difficulties and uncertainties:
|
o |
managing a diverse product set of solutions in highly competitive markets with a number of key vendors;
|
o |
increasing the total number of customers utilizing integrated solutions by up-selling within our customer base and gaining new customers;
|
o |
adapting to meet changes in markets and competitive developments;
|
o |
maintaining and increasing advanced professional services by retaining highly skilled personnel and vendor certifications;
|
o |
increasing the total number of customers who utilize our managed services and professional services and continuing to enhance our managed services offerings to remain competitive in the marketplace;
|
o |
maintaining our proprietary software and updating our technology infrastructure to remain competitive in the marketplace; and
|
o |
reliance on third parties to perform some of our service obligations;
|
· |
changes in the IT industry and/or rapid changes in product offerings, including the proliferation of the cloud, infrastructure as a service and software as a service;
|
· |
our dependency on continued innovations in hardware, software, and services offerings by our vendors and our ability to partner with them;
|
· |
future growth rates in our core businesses;
|
· |
failure to comply with public sector contracts or applicable laws;
|
· |
changes to or loss of members of our senior management team and/or failure to successfully implement succession plans;
|
· |
our dependence on key personnel to maintain certain customer relationships, and our ability to hire, train, and retain sufficient qualified personnel;
|
· |
our ability to implement comprehensive plans for the integration of sales forces, cost containment, asset rationalization, systems integration and other key strategies;
|
· |
a possible decrease in the capital spending budgets of our customers or a decrease in purchases from us;
|
· |
our contracts may not be adequate to protect us and our professional and liability insurance policies coverage may be insufficient to cover a claim;
|
· |
disruptions in our IT systems and data and audio communication networks;
|
· |
our ability to secure our customers’ electronic and other confidential information, and remain secure during a cyber-security attack;
|
· |
our ability to raise capital, maintain or increase as needed our lines of credit with vendors or floor planning facility, or obtain debt for our financing transactions or the effect of those changes on our common stock or its holders;
|
· |
our ability to realize our investment in leased equipment;
|
· |
our ability to successfully integrate acquired businesses;
|
· |
the possibility of goodwill impairment charges in the future;
|
· |
our ability to protect our intellectual property rights and successfully defend any challenges to the validity of our patents or allegations that we are infringing upon any third party patents, and the costs associated with those actions, and, when appropriate, license required technology; and
|
· |
significant changes in accounting standards including changes to the financial reporting of leases which could impact the demand for our leasing services, or misclassification of products and services we sell resulting in the misapplication of revenue recognition policies.
|
As of
December 31, 2016
|
As of
March 31, 2016
|
|||||||
ASSETS
|
(in thousands, except per share data)
|
|||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
69,677
|
$
|
94,766
|
||||
Accounts receivable—trade, net
|
297,460
|
234,628
|
||||||
Accounts receivable—other, net
|
34,183
|
41,771
|
||||||
Inventories—net
|
111,076
|
33,343
|
||||||
Financing receivables—net, current
|
65,945
|
56,448
|
||||||
Deferred costs
|
6,418
|
6,371
|
||||||
Other current assets
|
4,035
|
10,649
|
||||||
Total current assets
|
588,794
|
477,976
|
||||||
Financing receivables and operating leases—net
|
74,490
|
75,906
|
||||||
Property, equipment and other assets
|
11,704
|
8,644
|
||||||
Goodwill and other intangible assets—net
|
61,690
|
54,154
|
||||||
TOTAL ASSETS
|
$
|
736,678
|
$
|
616,680
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
LIABILITIES
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$
|
121,562
|
$
|
76,780
|
||||
Accounts payable—floor plan
|
120,854
|
121,893
|
||||||
Salaries and commissions payable
|
17,412
|
14,981
|
||||||
Deferred revenue
|
63,665
|
18,344
|
||||||
Recourse notes payable—current
|
1,605
|
2,288
|
||||||
Non-recourse notes payable—current
|
41,785
|
26,042
|
||||||
Other current liabilities
|
15,842
|
13,118
|
||||||
Total current liabilities
|
382,725
|
273,446
|
||||||
Recourse notes payable—long term
|
-
|
1,054
|
||||||
Non-recourse notes payable—long term
|
10,608
|
18,038
|
||||||
Deferred tax liability—net
|
3,075
|
3,001
|
||||||
Other liabilities
|
6,475
|
2,263
|
||||||
TOTAL LIABILITIES
|
402,883
|
297,802
|
||||||
COMMITMENTS AND CONTINGENCIES (Note 8)
|
||||||||
STOCKHOLDERS' EQUITY
|
||||||||
Preferred stock, $.01 per share par value; 2,000 shares authorized; none issued or outstanding
|
-
|
-
|
||||||
Common stock, $.01 per share par value; 25,000 shares authorized;13,310 issued and 7,080 outstanding at December 31, 2016 and 13,237 issued and 7,365 outstanding at March 31, 2016
|
133
|
132
|
||||||
Additional paid-in capital
|
122,031
|
117,511
|
||||||
Treasury stock, at cost, 6,230 and 5,872 shares at December 31, 2016 and March 31, 2016, respectively
|
(158,948
|
)
|
(129,518
|
)
|
||||
Retained earnings
|
371,290
|
331,224
|
||||||
Accumulated other comprehensive income—foreign currency translation adjustment
|
(711
|
)
|
(471
|
)
|
||||
Total Stockholders' Equity
|
333,795
|
318,878
|
||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
$
|
736,678
|
$
|
616,680
|
Three Months Ended
December 31,
|
Nine Months Ended December 31,
December 31, |
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
(in thousands, except per share data)
|
||||||||||||||||
Net sales
|
$
|
326,657
|
$
|
298,644
|
$
|
996,622
|
$
|
904,796
|
||||||||
Cost of sales
|
252,871
|
234,584
|
773,239
|
709,685
|
||||||||||||
Gross profit
|
73,786
|
64,060
|
223,383
|
195,111
|
||||||||||||
Professional and other fees
|
1,397
|
1,882
|
4,918
|
4,913
|
||||||||||||
Salaries and benefits
|
42,385
|
37,372
|
124,479
|
108,326
|
||||||||||||
General and administrative expenses
|
6,378
|
5,434
|
20,424
|
17,390
|
||||||||||||
Depreciation and amortization
|
1,910
|
1,331
|
5,408
|
3,739
|
||||||||||||
Interest and financing costs
|
409
|
396
|
1,158
|
1,371
|
||||||||||||
Operating expenses
|
52,479
|
46,415
|
156,387
|
135,739
|
||||||||||||
Operating income
|
21,307
|
17,645
|
66,996
|
59,372
|
||||||||||||
Other income
|
-
|
-
|
380
|
-
|
||||||||||||
Earnings before tax
|
21,307
|
17,645
|
67,376
|
59,372
|
||||||||||||
Provision for income taxes
|
8,687
|
7,348
|
27,310
|
24,582
|
||||||||||||
Net earnings
|
$
|
12,620
|
$
|
10,297
|
$
|
40,066
|
$
|
34,790
|
||||||||
Net earnings per common share—basic
|
$
|
1.83
|
$
|
1.41
|
$
|
5.77
|
$
|
4.79
|
||||||||
Net earnings per common share—diluted
|
$
|
1.81
|
$
|
1.40
|
$
|
5.71
|
$
|
4.74
|
||||||||
Weighted average common shares outstanding—basic
|
6,896
|
7,280
|
6,946
|
7,260
|
||||||||||||
Weighted average common shares outstanding—diluted
|
6,960
|
7,329
|
7,013
|
7,336
|
Three Months Ended
December 31,
|
Nine Months Ended
December 31,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
(amounts in thousands)
|
||||||||||||||||
NET EARNINGS
|
$
|
12,620
|
$
|
10,297
|
$
|
40,066
|
$
|
34,790
|
||||||||
OTHER COMPREHENSIVE INCOME, NET OF TAX:
|
||||||||||||||||
Foreign currency translation adjustments
|
(145
|
)
|
(139
|
)
|
(240
|
)
|
(273
|
)
|
||||||||
Other comprehensive income (loss)
|
(145
|
)
|
(139
|
)
|
(240
|
)
|
(273
|
)
|
||||||||
TOTAL COMPREHENSIVE INCOME
|
$
|
12,475
|
$
|
10,158
|
$
|
39,826
|
$
|
34,517
|
Nine Months Ended December 31,
|
||||||||
2016
|
2015
|
|||||||
(in thousands)
|
||||||||
Cash Flows From Operating Activities:
|
||||||||
Net earnings
|
$
|
40,066
|
$
|
34,790
|
||||
Adjustments to reconcile net earnings to net cash (used in) provided by operating activities:
|
||||||||
Depreciation and amortization
|
8,758
|
13,020
|
||||||
Reserve for credit losses, inventory obsolescence and sales returns
|
926
|
(91
|
)
|
|||||
Share-based compensation expense
|
4,520
|
4,210
|
||||||
Deferred taxes
|
89
|
-
|
||||||
Payments from lessees directly to lenders—operating leases
|
(1,831
|
)
|
(3,587
|
)
|
||||
Gain on disposal of property, equipment and operating lease equipment
|
(3,742
|
)
|
(2,621
|
)
|
||||
Gain on sale of financing receivables
|
(3,968
|
)
|
(5,439
|
)
|
||||
Other
|
227
|
224
|
||||||
Changes in:
|
||||||||
Accounts receivable—trade
|
(57,732
|
)
|
(31,692
|
)
|
||||
Accounts receivable—other
|
(4,232
|
)
|
(1,176
|
)
|
||||
Inventories
|
(77,422
|
)
|
(5,643
|
)
|
||||
Financing receivables—net
|
17,797
|
(10,670
|
)
|
|||||
Deferred costs, other intangible assets and other assets
|
1,838
|
5,888
|
||||||
Accounts payable
|
53,208
|
(5,912
|
)
|
|||||
Salaries and commissions payable, deferred revenue and other liabilities
|
51,200
|
(9,018
|
)
|
|||||
Net provided by (cash used) in operating activities
|
$
|
29,702
|
$
|
(17,717
|
)
|
|||
Cash Flows From Investing Activities:
|
||||||||
Proceeds from sale of property, equipment and operating lease equipment
|
6,380
|
5,349
|
||||||
Purchases of property, equipment and operating lease equipment
|
(7,300
|
)
|
(17,008
|
)
|
||||
Purchases of assets to be leased or financed
|
(5,897
|
)
|
(10,828
|
)
|
||||
Issuance of financing receivables
|
(114,671
|
)
|
(102,612
|
)
|
||||
Repayments of financing receivables
|
44,091
|
49,230
|
||||||
Proceeds from sale of financing receivables
|
39,857
|
48,174
|
||||||
Cash used in acquisitions, net of cash acquired
|
(9,500
|
)
|
(16,649
|
)
|
||||
Net cash used in investing activities
|
$
|
(47,040
|
)
|
$
|
(44,344
|
)
|
Nine Months Ended December 31,
|
||||||||
2016
|
2015
|
|||||||
(in thousands)
|
||||||||
Cash Flows From Financing Activities:
|
||||||||
Borrowings of non-recourse and recourse notes payable
|
34,020
|
$
|
27,865
|
|||||
Repayments of non-recourse and recourse notes payable
|
(5,412
|
)
|
(254
|
)
|
||||
Repurchase of common stock
|
(30,493
|
)
|
(2,475
|
)
|
||||
Dividends paid
|
-
|
(80
|
)
|
|||||
Payments of contingent consideration
|
(718
|
)
|
(1,158
|
)
|
||||
Net borrowings (repayments) on floor plan facility
|
(5,602
|
)
|
28,581
|
|||||
Net cash provided by (used in) financing activities
|
(8,205
|
)
|
52,479
|
|||||
Effect of exchange rate changes on cash
|
454
|
(26
|
)
|
|||||
Net Decrease in Cash and Cash Equivalents
|
(25,089
|
)
|
(9,608
|
)
|
||||
Cash and Cash Equivalents, Beginning of Period
|
94,766
|
76,175
|
||||||
Cash and Cash Equivalents, End of Period
|
$
|
69,677
|
$
|
66,567
|
||||
Supplemental Disclosures of Cash Flow Information:
|
||||||||
Cash paid for interest
|
$
|
38
|
$
|
65
|
||||
Cash paid for income taxes
|
$
|
23,381
|
$
|
26,463
|
||||
Schedule of Non-Cash Investing and Financing Activities:
|
||||||||
Investing Activities
|
||||||||
Proceeds from sale of property, equipment, and operating lease equipment
|
$
|
429
|
$
|
7,993
|
||||
Purchase of property, equipment, and operating lease equipment
|
$
|
(2,442
|
)
|
$
|
(11,985
|
)
|
||
Purchase of assets to be leased or financed
|
$
|
(12,700
|
)
|
$
|
(8,554
|
)
|
||
Issuance of financing receivables
|
$
|
(110,120
|
)
|
$
|
(91,022
|
)
|
||
Repayment of financing receivables
|
$
|
16,454
|
$
|
12,357
|
||||
Proceeds from sale of financing receivables
|
$
|
104,430
|
$
|
75,584
|
||||
Financing Activities
|
||||||||
Borrowing of non-recourse and recourse notes payable
|
$
|
33,651
|
$
|
42,840
|
||||
Repayments of non-recourse and recourse notes payable
|
$
|
(20,438
|
)
|
$
|
(22,292
|
)
|
||
Vesting of share-based compensation
|
$
|
7,982
|
$
|
7,743
|
Common Stock
|
Additional
Paid-In |
Treasury
|
Retained
|
Accumulated
Other
Comprehensive |
||||||||||||||||||||||||
Shares
|
Par Value
|
Capital
|
Stock
|
Earnings
|
Income
|
Total
|
||||||||||||||||||||||
Balance, April 1, 2016
|
7,365
|
$
|
132
|
$
|
117,511
|
$
|
(129,518
|
)
|
$
|
331,224
|
$
|
(471
|
)
|
$
|
318,878
|
|||||||||||||
Issuance of restricted stock awards
|
73
|
1
|
-
|
-
|
-
|
-
|
1
|
|||||||||||||||||||||
Share-based compensation
|
-
|
-
|
4,520
|
-
|
-
|
-
|
4,520
|
|||||||||||||||||||||
Repurchase of common stock
|
(358
|
)
|
-
|
-
|
(29,430
|
)
|
-
|
-
|
(29,430
|
)
|
||||||||||||||||||
Net earnings
|
-
|
-
|
-
|
-
|
40,066
|
-
|
40,066
|
|||||||||||||||||||||
Foreign currency translation adjustment
|
-
|
-
|
-
|
-
|
-
|
(240
|
)
|
(240
|
)
|
|||||||||||||||||||
Balance, December 31, 2016
|
7,080
|
$
|
133
|
$
|
122,031
|
$
|
(158,948
|
)
|
$
|
371,290
|
$
|
(711
|
)
|
$
|
333,795
|
1. |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
2. |
RECENT ACCOUNTING PRONOUNCEMENTS
|
3. |
FINANCING RECEIVABLES AND OPERATING LEASES
|
December 31, 2016
|
Notes
Receivables
|
Lease-Related
Receivables
|
Total Financing
Receivables
|
|||||||||
Minimum payments
|
$
|
53,167
|
$
|
71,343
|
$
|
124,510
|
||||||
Estimated unguaranteed residual value (1)
|
-
|
18,069
|
18,069
|
|||||||||
Initial direct costs, net of amortization (2)
|
465
|
518
|
983
|
|||||||||
Unearned income
|
-
|
(7,017
|
)
|
(7,017
|
)
|
|||||||
Reserve for credit losses (3)
|
(3,508
|
)
|
(778
|
)
|
(4,286
|
)
|
||||||
Total, net
|
$
|
50,124
|
$
|
82,135
|
$
|
132,259
|
||||||
Reported as:
|
||||||||||||
Current
|
$
|
32,269
|
$
|
33,676
|
$
|
65,945
|
||||||
Long-term
|
17,855
|
48,459
|
66,314
|
|||||||||
Total, net
|
$
|
50,124
|
$
|
82,135
|
$
|
132,259
|
(1) |
Includes estimated unguaranteed residual values of $11,932 thousand for direct financing leases, which have been sold and accounted for as sales.
|
(2) |
Initial direct costs are shown net of amortization of $665 thousand.
|
(3) |
For details on reserve for credit losses, refer to Note 5, “Reserves for Credit Losses.”
|
March 31, 2016
|
Notes
Receivables
|
Lease-Related
Receivables
|
Total Financing
Receivables
|
|||||||||
Minimum payments
|
$
|
44,442
|
$
|
66,303
|
$
|
110,745
|
||||||
Estimated unguaranteed residual value (1)
|
-
|
12,693
|
12,693
|
|||||||||
Initial direct costs, net of amortization (2)
|
312
|
475
|
787
|
|||||||||
Unearned income
|
-
|
(5,543
|
)
|
(5,543
|
)
|
|||||||
Reserve for credit losses (3)
|
(3,381
|
)
|
(685
|
)
|
(4,066
|
)
|
||||||
Total, net
|
$
|
41,373
|
$
|
73,243
|
$
|
114,616
|
||||||
Reported as:
|
||||||||||||
Current
|
$
|
24,962
|
$
|
31,486
|
$
|
56,448
|
||||||
Long-term
|
16,411
|
41,757
|
58,168
|
|||||||||
Total, net
|
$
|
41,373
|
$
|
73,243
|
$
|
114,616
|
(1) |
Includes estimated unguaranteed residual values of $6,722 thousand for direct financing leases which have been sold and accounted for as sales.
|
(2) |
Initial direct costs are shown net of amortization of $612 thousand.
|
(3) |
For details on reserve for credit losses, refer to Note 5, “Reserves for Credit Losses.”
|
December 31,
2016
|
March 31,
2016
|
|||||||
Cost of equipment under operating leases
|
$
|
17,062
|
$
|
36,635
|
||||
Accumulated depreciation
|
(8,886
|
)
|
(18,897
|
)
|
||||
Investment in operating lease equipment—net (1)
|
$
|
8,176
|
$
|
17,738
|
(1) |
These totals include estimated unguaranteed residual values of $928 thousand and $3,417 thousand as of December 31, 2016 and March 31, 2016, respectively.
|
4. |
GOODWILL AND OTHER INTANGIBLE ASSETS
|
December 31, 2016
|
March 31, 2016
|
|||||||||||||||||||||||
Gross
Carrying
Amount
|
Accumulated
Amortization
/ Impairment
Loss
|
Net
Carrying
Amount
|
Gross
Carrying
Amount
|
Accumulated
Amortization
/ Impairment
Loss
|
Net
Carrying
Amount
|
|||||||||||||||||||
Goodwill
|
$
|
58,145
|
$
|
(8,673
|
)
|
$
|
49,472
|
$
|
50,824
|
$
|
(8,673
|
)
|
$
|
42,151
|
||||||||||
Customer relationships & other intangibles
|
22,818
|
(11,640
|
)
|
11,178
|
20,401
|
(9,193
|
)
|
11,208
|
||||||||||||||||
Capitalized software development
|
3,247
|
(2,207
|
)
|
1,040
|
2,709
|
(1,914
|
)
|
795
|
||||||||||||||||
Total
|
$
|
84,210
|
$
|
(22,520
|
)
|
$
|
61,690
|
$
|
73,934
|
$
|
(19,780
|
)
|
$
|
54,154
|
5. |
RESERVES FOR CREDIT LOSSES
|
Accounts
Receivable
|
Notes
Receivable
|
Lease-Related
Receivables
|
Total
|
|||||||||||||
Balance April 1, 2016
|
$
|
1,127
|
$
|
3,381
|
$
|
685
|
$
|
5,193
|
||||||||
Provision for credit losses
|
229
|
139
|
93
|
461
|
||||||||||||
Write-offs and other
|
(32
|
)
|
(12
|
)
|
-
|
(44
|
)
|
|||||||||
Balance December 31, 2016
|
$
|
1,324
|
$
|
3,508
|
$
|
778
|
$
|
5,610
|
||||||||
Accounts
Receivable
|
Notes
Receivable
|
Lease-Related
Receivables
|
Total
|
|||||||||||||
Balance April 1, 2015
|
$
|
1,169
|
$
|
3,573
|
$
|
881
|
$
|
5,623
|
||||||||
Provision for credit losses
|
12
|
7
|
(50
|
)
|
(31
|
)
|
||||||||||
Write-offs and other
|
(119
|
)
|
-
|
-
|
(119
|
)
|
||||||||||
Balance December 31, 2015
|
$
|
1,062
|
$
|
3,580
|
$
|
831
|
$
|
5,473
|
December 31, 2016
|
March 31, 2016
|
|||||||||||||||
Notes
Receivable
|
Lease-
Related
Receivables
|
Notes
Receivable
|
Lease-
Related
Receivables
|
|||||||||||||
Reserves for credit losses:
|
||||||||||||||||
Ending balance: collectively evaluated for impairment
|
$
|
406
|
$
|
655
|
$
|
279
|
$
|
562
|
||||||||
Ending balance: individually evaluated for impairment
|
3,102
|
123
|
3,102
|
123
|
||||||||||||
Ending balance
|
$
|
3,508
|
$
|
778
|
$
|
3,381
|
$
|
685
|
||||||||
Minimum payments:
|
||||||||||||||||
Ending balance: collectively evaluated for impairment
|
$
|
50,016
|
$
|
71,201
|
$
|
41,340
|
$
|
66,161
|
||||||||
Ending balance: individually evaluated for impairment
|
3,151
|
142
|
3,102
|
142
|
||||||||||||
Ending balance
|
$
|
53,167
|
$
|
71,343
|
$
|
44,442
|
$
|
66,303
|
31-60
Days
Past
Due
|
61-90
Days
Past
Due
|
Greater
than 90
Days
Past
Due
|
Total
Past
Due
|
Current
|
Unbilled
Minimum
Lease
Payments
|
Total
Minimum
Lease
Payments
|
Unearned
Income
|
Non-
Recourse
Notes
Payable
|
Net
Credit
Exposure
|
|||||||||||||||||||||||||||||||
December 31, 2016
|
||||||||||||||||||||||||||||||||||||||||
High CQR
|
$
|
163
|
$
|
49
|
$
|
98
|
$
|
310
|
$
|
137
|
$
|
45,570
|
$
|
46,017
|
$
|
(3,466
|
)
|
$
|
(21,532
|
)
|
$
|
21,019
|
||||||||||||||||||
Average CQR
|
44
|
25
|
96
|
165
|
43
|
24,976
|
25,184
|
(1,667
|
)
|
(12,684
|
)
|
10,833
|
||||||||||||||||||||||||||||
Low CQR
|
-
|
-
|
142
|
142
|
-
|
-
|
142
|
(19
|
)
|
-
|
123
|
|||||||||||||||||||||||||||||
Total
|
$
|
207
|
$
|
74
|
$
|
336
|
$
|
617
|
$
|
180
|
$
|
70,546
|
$
|
71,343
|
$
|
(5,152
|
)
|
$
|
(34,216
|
)
|
$
|
31,975
|
||||||||||||||||||
March 31, 2016
|
||||||||||||||||||||||||||||||||||||||||
High CQR
|
$
|
575
|
$
|
52
|
$
|
94
|
$
|
721
|
$
|
984
|
$
|
46,157
|
$
|
47,862
|
$
|
(2,705
|
)
|
$
|
(22,914
|
)
|
$
|
22,243
|
||||||||||||||||||
Average CQR
|
15
|
17
|
78
|
110
|
159
|
18,030
|
18,299
|
(1,387
|
)
|
(8,714
|
)
|
8,198
|
||||||||||||||||||||||||||||
Low CQR
|
-
|
-
|
142
|
142
|
-
|
-
|
142
|
(19
|
)
|
-
|
123
|
|||||||||||||||||||||||||||||
Total
|
$
|
590
|
$
|
69
|
$
|
314
|
$
|
973
|
$
|
1,143
|
$
|
64,187
|
$
|
66,303
|
$
|
(4,111
|
)
|
$
|
(31,628
|
)
|
$
|
30,564
|
31-60
Days
Past
Due
|
61-90
Days
Past
Due
|
Greater
than 90
Days
Past Due
|
Total
Past
Due
|
Current
|
Unbilled
Notes
Receivable
|
Total
Notes
Receivable
|
Non-
Recourse
Notes
Payable
|
Net
Credit
Exposure
|
||||||||||||||||||||||||||||
December 31, 2016
|
||||||||||||||||||||||||||||||||||||
High CQR
|
$
|
1,369
|
$
|
312
|
$
|
827
|
$
|
2,508
|
$
|
1,244
|
$
|
28,206
|
$
|
31,958
|
$
|
(15,330
|
)
|
$
|
16,628
|
|||||||||||||||||
Average CQR
|
157
|
10
|
-
|
167
|
920
|
16,971
|
18,058
|
(12,640
|
)
|
5,418
|
||||||||||||||||||||||||||
Low CQR
|
-
|
-
|
3,151
|
3,151
|
-
|
-
|
3,151
|
-
|
3,151
|
|||||||||||||||||||||||||||
Total
|
$
|
1,526
|
$
|
322
|
$
|
3,978
|
$
|
5,826
|
$
|
2,164
|
$
|
45,177
|
$
|
53,167
|
$
|
(27,970
|
)
|
$
|
25,197
|
|||||||||||||||||
March 31, 2016
|
||||||||||||||||||||||||||||||||||||
High CQR
|
$
|
399
|
$
|
305
|
$
|
2,168
|
$
|
2,872
|
$
|
301
|
$
|
24,092
|
$
|
27,265
|
$
|
(11,644
|
)
|
$
|
15,621
|
|||||||||||||||||
Average CQR
|
-
|
-
|
-
|
-
|
202
|
13,873
|
14,075
|
(9,942
|
)
|
4,133
|
||||||||||||||||||||||||||
Low CQR
|
-
|
-
|
3,102
|
3,102
|
-
|
-
|
3,102
|
-
|
3,102
|
|||||||||||||||||||||||||||
Total
|
$
|
399
|
$
|
305
|
$
|
5,270
|
$
|
5,974
|
$
|
503
|
$
|
37,965
|
$
|
44,442
|
$
|
(21,586
|
)
|
$
|
22,856
|
|||||||||||||||||
6.
|
PROPERTY, EQUIPMENT, OTHER ASSETS AND LIABILITIES
|
December 31,
2016
|
March 31,
2016
|
|||||||
Other current assets:
|
||||||||
Deposits & funds held in escrow
|
$
|
485
|
$
|
3,116
|
||||
Prepaid assets
|
2,773
|
6,683
|
||||||
Other
|
777
|
850
|
||||||
Total other current assets
|
$
|
4,035
|
$
|
10,649
|
||||
Other assets:
|
||||||||
Deferred costs
|
$
|
2,979
|
$
|
1,831
|
||||
Property and equipment, net
|
6,945
|
6,266
|
||||||
Other
|
1,780
|
547
|
||||||
Total other assets - long term
|
$
|
11,704
|
$
|
8,644
|
||||
December 31,
2016 |
March 31,
2016 |
|||||||
Other current liabilities:
|
||||||||
Accrued expenses
|
$
|
6,969
|
$
|
7,109
|
||||
Accrued income taxes payable
|
1,093
|
-
|
||||||
Other
|
7,780
|
6,009
|
||||||
Total other current liabilities
|
$
|
15,842
|
$
|
13,118
|
||||
Other liabilities:
|
||||||||
Deferred revenue
|
$
|
3,599
|
$
|
1,866
|
||||
Other
|
2,876
|
397
|
||||||
Total other liabilities - long term
|
$
|
6,475
|
$
|
2,263
|
7. |
NOTES PAYABLE AND CREDIT FACILITY
|
December 31,
2016 |
March 31,
2016 |
|||||||
Recourse notes payable with interest rates ranging from 2.75% and 4.13% at December 31, 2016 and ranging from 2.70% and 4.13%at March 31, 2016.
|
||||||||
Current
|
$
|
1,605
|
$
|
2,288
|
||||
Long-term
|
-
|
1,054
|
||||||
Total recourse notes payable
|
$
|
1,605
|
$
|
3,342
|
||||
Non-recourse notes payable secured by financing receivables and investments in operating leases with interest rates ranging from 2.0% to 7.50% at December 31, 2016 and ranging from 1.70% to 8.50% as of March 31, 2016.
|
||||||||
Current
|
$
|
41,785
|
$
|
26,042
|
||||
Long-term
|
10,608
|
18,038
|
||||||
Total non-recourse notes payable
|
$
|
52,393
|
$
|
44,080
|
8. |
COMMITMENTS AND CONTINGENCIES
|
9. |
EARNINGS PER SHARE
|
Three Months Ended
December 31, |
Nine Months Ended
December 31,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
Net earnings attributable to common shareholders - basic and diluted
|
$
|
12,620
|
$
|
10,297
|
$
|
40,066
|
$
|
34,790
|
||||||||
Basic and diluted common shares outstanding:
|
||||||||||||||||
Weighted average common shares outstanding — basic
|
6,896
|
7,280
|
6,946
|
7,260
|
||||||||||||
Effect of dilutive shares
|
64
|
49
|
67
|
76
|
||||||||||||
Weighted average shares common outstanding — diluted
|
6,960
|
7,329
|
7,013
|
7,336
|
||||||||||||
Earnings per common share - basic
|
$
|
1.83
|
$
|
1.41
|
$
|
5.77
|
$
|
4.79
|
||||||||
Earnings per common share - diluted
|
$
|
1.81
|
$
|
1.40
|
$
|
5.71
|
$
|
4.74
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
Earnings per common share:
|
||||||||||||||||
Basic — pro forma
|
$
|
0.92
|
$
|
0.71
|
$
|
2.88
|
$
|
2.40
|
||||||||
Diluted — pro forma
|
$
|
0.91
|
$
|
0.70
|
$
|
2.86
|
$
|
2.37
|
||||||||
Weighted average common shares outstanding:
|
||||||||||||||||
Basic — pro forma
|
13,791
|
14,561
|
13,891
|
14,519
|
||||||||||||
Diluted — pro forma
|
13,920
|
14,659
|
14,026
|
14,672
|
10. |
STOCKHOLDERS’ EQUITY
|
11. |
SHARE-BASED COMPENSATION
|
Number of
Shares
|
Weighted
Average Grant-
date Fair Value
|
|||||||
Nonvested April 1, 2016
|
203,828
|
$
|
72.33
|
|||||
Granted
|
72,961
|
$
|
86.24
|
|||||
Vested
|
(90,356
|
)
|
$
|
65.99
|
||||
Forfeited
|
(349
|
)
|
$
|
76.87
|
||||
Nonvested December 31, 2016
|
186,084
|
$
|
80.86
|
12. |
INCOME TAXES
|
13. |
FAIR VALUE OF FINANCIAL INSTRUMENTS
|
Fair Value Measurement Using
|
||||||||||||||||
Recorded
Amount
|
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
|
Significant
Other
Observable
Inputs (Level 2)
|
Significant
Unobservable
Inputs
(Level 3) |
|||||||||||||
December 31.2016
|
||||||||||||||||
Assets:
|
||||||||||||||||
Money market funds
|
$
|
29,851
|
$
|
29,851
|
$
|
-
|
$
|
-
|
||||||||
Liabilities:
|
||||||||||||||||
Contingent consideration
|
$
|
554
|
$
|
-
|
$
|
-
|
$
|
554
|
||||||||
March 31, 2016
|
||||||||||||||||
Assets:
|
||||||||||||||||
Money market funds
|
$
|
39,509
|
$
|
39,509
|
$
|
-
|
$
|
-
|
||||||||
Liabilities:
|
||||||||||||||||
Contingent consideration
|
$
|
1,041
|
$
|
-
|
$
|
-
|
$
|
1,041
|
14. |
SEGMENT REPORTING
|
|
Three Months Ended
|
|||||||||||||||||||||||
|
December 31, 2016
|
December 31, 2015
|
||||||||||||||||||||||
|
Technology
|
Financing
|
Total
|
Technology
|
Financing
|
Total
|
||||||||||||||||||
|
||||||||||||||||||||||||
Sales of product and services
|
$
|
317,391
|
$
|
-
|
$
|
317,391
|
$
|
287,859
|
$
|
-
|
$
|
287,859
|
||||||||||||
Financing revenue
|
-
|
8,190
|
8,190
|
-
|
9,289
|
9,289
|
||||||||||||||||||
Fee and other income
|
915
|
161
|
1,076
|
1,506
|
(10
|
)
|
1,496
|
|||||||||||||||||
Net sales
|
318,306
|
8,351
|
326,657
|
289,365
|
9,279
|
298,644
|
||||||||||||||||||
|
||||||||||||||||||||||||
Cost of sales, product and services
|
251,729
|
-
|
251,729
|
231,503
|
-
|
231,503
|
||||||||||||||||||
Direct lease costs
|
-
|
1,142
|
1,142
|
-
|
3,081
|
3,081
|
||||||||||||||||||
Cost of sales
|
251,729
|
1,142
|
252,871
|
231,503
|
3,081
|
234,584
|
||||||||||||||||||
|
||||||||||||||||||||||||
Professional and other fees
|
1,216
|
181
|
1,397
|
1,608
|
274
|
1,882
|
||||||||||||||||||
Salaries and benefits
|
40,155
|
2,230
|
42,385
|
35,043
|
2,329
|
37,372
|
||||||||||||||||||
General and administrative expenses
|
6,409
|
(31
|
)
|
6,378
|
5,203
|
231
|
5,434
|
|||||||||||||||||
Depreciation and amortization
|
1,908
|
2
|
1,910
|
1,327
|
4
|
1,331
|
||||||||||||||||||
Interest and financing costs
|
-
|
409
|
409
|
10
|
386
|
396
|
||||||||||||||||||
Operating expenses
|
49,688
|
2,791
|
52,479
|
43,191
|
3,224
|
46,415
|
||||||||||||||||||
|
||||||||||||||||||||||||
Operating income
|
$
|
16,889
|
$
|
4,418
|
$
|
21,307
|
$
|
14,671
|
$
|
2,974
|
$
|
17,645
|
||||||||||||
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
Selected Financial Data - Statement of Cash Flow
|
||||||||||||||||||||||||
Depreciation and amortization
|
$
|
1,941
|
$
|
985
|
$
|
2,926
|
$
|
1,365
|
$
|
3,152
|
$
|
4,517
|
||||||||||||
Purchases of property, equipment and operating lease equipment
|
$
|
849
|
$
|
3,282
|
$
|
4,131
|
$
|
506
|
$
|
884
|
$
|
1,390
|
||||||||||||
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
Selected Financial Data - Balance Sheet
|
||||||||||||||||||||||||
Total assets
|
$
|
546,728
|
$
|
189,950
|
$
|
736,678
|
$
|
401,422
|
$
|
229,012
|
$
|
630,434
|
|
Nine Months Ended
|
|||||||||||||||||||||||
|
December 31, 2016
|
December 31, 2015
|
||||||||||||||||||||||
Statement of Operations
|
Technology
|
Financing
|
Total
|
Technology
|
Financing
|
Total
|
||||||||||||||||||
|
||||||||||||||||||||||||
Sales of product and services
|
$
|
968,799
|
$
|
-
|
$
|
968,799
|
$
|
871,814
|
$
|
-
|
$
|
871,814
|
||||||||||||
Financing revenue
|
-
|
23,899
|
23,899
|
-
|
27,914
|
27,914
|
||||||||||||||||||
Fee and other income
|
3,679
|
245
|
3,924
|
5,038
|
30
|
5,068
|
||||||||||||||||||
Net sales
|
972,478
|
24,144
|
996,622
|
876,852
|
27,944
|
904,796
|
||||||||||||||||||
|
||||||||||||||||||||||||
Cost of sales, product and services
|
769,780
|
-
|
769,780
|
700,429
|
-
|
700,429
|
||||||||||||||||||
Direct lease costs
|
-
|
3,459
|
3,459
|
-
|
9,256
|
9,256
|
||||||||||||||||||
Cost of sales
|
769,780
|
3,459
|
773,239
|
700,429
|
9,256
|
709,685
|
||||||||||||||||||
|
||||||||||||||||||||||||
Professional and other fees
|
4,138
|
780
|
4,918
|
4,175
|
738
|
4,913
|
||||||||||||||||||
Salaries and benefits
|
117,822
|
6,657
|
124,479
|
101,471
|
6,855
|
108,326
|
||||||||||||||||||
General and administrative expenses
|
19,335
|
1,089
|
20,424
|
16,653
|
737
|
17,390
|
||||||||||||||||||
Depreciation and amortization
|
5,400
|
8
|
5,408
|
3,728
|
11
|
3,739
|
||||||||||||||||||
Interest and financing costs
|
-
|
1,158
|
1,158
|
51
|
1,320
|
1,371
|
||||||||||||||||||
Operating expenses
|
146,695
|
9,692
|
156,387
|
126,078
|
9,661
|
135,739
|
||||||||||||||||||
|
||||||||||||||||||||||||
Operating income
|
$
|
56,003
|
$
|
10,993
|
$
|
66,996
|
$
|
50,345
|
$
|
9,027
|
$
|
59,372
|
||||||||||||
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
Selected Financial Data - Statement of Cash Flow
|
||||||||||||||||||||||||
Depreciation and amortization
|
$
|
5,494
|
$
|
3,264
|
$
|
8,758
|
$
|
3,831
|
$
|
9,189
|
$
|
13,020
|
||||||||||||
Purchases of property, equipment and operating lease equipment
|
$
|
2,413
|
$
|
4,887
|
$
|
7,300
|
$
|
1,700
|
$
|
15,308
|
$
|
17,008
|
||||||||||||
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
Selected Financial Data - Balance Sheet
|
||||||||||||||||||||||||
Total assets
|
$
|
546,728
|
$
|
189,950
|
$
|
736,678
|
$
|
401,422
|
$
|
229,012
|
$
|
630,434
|
15. |
BUSINESS COMBINATIONS
|
Acquisition
Date Amount
|
||||
Accounts receivable and other current assets
|
$
|
7,501
|
||
Property and equipment
|
1,045
|
|||
Identified intangible assets
|
3,340
|
|||
Accounts payable and other current liabilities
|
(6,411
|
)
|
||
Total identifiable net assets
|
5,475
|
|||
Goodwill
|
7,614
|
|||
Total purchase consideration
|
$
|
13,089
|
|
Acquisition
Date Amount
|
|||
Accounts receivable—trade, net
|
$
|
8,457
|
||
Property and equipment
|
81
|
|||
Identified intangible assets
|
8,710
|
|||
Accounts payable and other current liabilities
|
(8,641
|
)
|
||
Deferred tax liability
|
(89
|
)
|
||
Total identifiable net assets
|
8,518
|
|||
Goodwill
|
8,131
|
|||
Total purchase consideration
|
$
|
16,649
|
Estimated
Useful Lives
(in years) |
Acquisition
Date Amount |
|||||||
Intangible assets—customer relationships
|
7
|
$
|
7,680
|
|||||
Intangible assets—trade names
|
10
|
520
|
||||||
Intangible assets—backlog
|
1
|
510
|
||||||
Total identified intangible assets
|
$
|
8,710
|
Three Months Ended
December 31,
|
Nine Months Ended
December 31,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
Sales of products and services
|
$
|
317,391
|
$
|
287,859
|
$
|
968,799
|
$
|
871,814
|
||||||||
Adjusted gross billings of product and services (1)
|
$
|
432,407
|
$
|
393,922
|
$
|
1,317,188
|
$
|
1,157,327
|
||||||||
Gross margin
|
22.6
|
%
|
21.5
|
%
|
22.4
|
%
|
21.6
|
%
|
||||||||
Gross margin, product and services
|
20.7
|
%
|
19.6
|
%
|
20.5
|
%
|
19.7
|
%
|
||||||||
Operating income margin
|
6.5
|
%
|
5.9
|
%
|
6.7
|
%
|
6.6
|
%
|
||||||||
Net earnings
|
$
|
12,620
|
$
|
10,297
|
$
|
40,066
|
$
|
34,790
|
||||||||
Net earnings per common share - diluted
|
$
|
1.81
|
$
|
1.40
|
$
|
5.71
|
$
|
4.74
|
||||||||
Non-GAAP: Net earnings (2)
|
$
|
13,294
|
$
|
10,694
|
$
|
41,383
|
$
|
35,840
|
||||||||
Non-GAAP: Net earnings per common share - diluted (2)
|
$
|
1.91
|
$
|
1.46
|
$
|
5.90
|
$
|
4.89
|
||||||||
Adjusted EBITDA (3)
|
$
|
23,217
|
$
|
18,976
|
$
|
72,404
|
$
|
63,111
|
||||||||
Adjusted EBITDA margin (3)
|
7.1
|
%
|
6.4
|
%
|
7.3
|
%
|
7.0
|
%
|
||||||||
Purchases of property and equipment used internally
|
$
|
849
|
$
|
506
|
$
|
2,413
|
$
|
1,700
|
||||||||
Purchases of equipment under operating leases
|
3,282
|
884
|
4,887
|
15,308
|
||||||||||||
Total capital expenditures
|
$
|
4,131
|
$
|
1,390
|
$
|
7,300
|
$
|
17,008
|
(1) |
We define Adjusted gross billings of product and services as our sales of product and services calculated in accordance with GAAP, adjusted to exclude the costs incurred related to sales of third party software assurance, subscription licenses, maintenance and services. We have provided below a reconciliation of Adjusted gross billings of product and services to Sales of product and services, which is the most directly comparable financial measure to this non-GAAP financial measure.
|
Three Months Ended December 31,
|
Nine Months Ended December 31,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
Sales of products and services
|
$
|
317,391
|
$
|
287,859
|
$
|
968,799
|
$
|
871,814
|
||||||||
Costs incurred related to sales of third party services
|
115,016
|
106,063
|
348,389
|
285,513
|
||||||||||||
Adjusted gross billings of product and services
|
$
|
432,407
|
$
|
393,922
|
$
|
1,317,188
|
$
|
1,157,327
|
(2) |
Non-GAAP net earnings per common share are based on net earnings calculated in accordance with GAAP, adjusted to exclude other income and acquisition related amortization expense, and related effects on income tax. Non-GAAP provision for income taxes is calculated based on the effective tax rate for the non-GAAP adjustments for the three and nine months ended December 31, 2016. For comparative purposes, the non-GAAP provision for income tax for the nine months ended December 31, 2016, excludes the tax benefit of the $0.5 million associated with the adoption in the quarter ended June 30, 2016 of the stock compensation accounting standard. There was no adjustment for this tax benefit in the quarter ended December 31, 2016. We use Non-GAAP net earnings per common share as a supplemental measure of our performance to gain insight into our operating performance. We believe that the exclusion of other income and acquisition related amortization expense in calculating Non-GAAP net earnings per common share provides management and investors a useful measure for period-to-period comparisons of our core business and operating results by excluding items that are not comparable across reporting periods. Accordingly, we believe that non-GAAP net earnings per common share provide useful information to investors and others in understanding and evaluating our operating results. However, our use of Non-GAAP net earnings per common share as an analytical tool has limitations, and you should not consider them in isolation or as substitutes for analysis of our financial results as reported under GAAP. In addition, other companies, including companies in our industry, might calculate Non-GAAP net earnings per common share or similarly titled measures differently, which may reduce their usefulness as comparative measures.
|
Three Months Ended
December 31,
|
Nine Months Ended
December 31,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
GAAP: Earnings before tax
|
$
|
21,307
|
$
|
17,645
|
$
|
67,376
|
$
|
59,372
|
||||||||
Less: Other income
|
-
|
-
|
(380
|
)
|
-
|
|||||||||||
Plus: Acquisition related amortization expense
|
1,035
|
680
|
3,098
|
1,793
|
||||||||||||
Non-GAAP: Earnings before provision for income taxes
|
22,342
|
18,325
|
70,094
|
61,165
|
||||||||||||
Non-GAAP: Provision for income taxes
|
9,048
|
7,631
|
28,711
|
25,325
|
||||||||||||
Non-GAAP: Net earnings
|
$
|
13,294
|
$
|
10,694
|
$
|
41,383
|
$
|
35,840
|
||||||||
GAAP: Net earnings per common share - diluted
|
$
|
1.81
|
$
|
1.40
|
$
|
5.71
|
$
|
4.74
|
||||||||
Non-GAAP: Net earnings per common share - diluted
|
$
|
1.91
|
$
|
1.46
|
$
|
5.90
|
$
|
4.89
|
(3) |
We define Adjusted EBITDA as net earnings calculated in accordance with GAAP, adjusted for the following: interest expense, depreciation and amortization, provision for income taxes, and other income. Segment Adjusted EBITDA is defined as operating income calculated in accordance with GAAP, adjusted for interest expense, and depreciation and amortization. We consider the interest on notes payable from our financing segment and depreciation expense presented within cost of sales, which includes depreciation on assets financed as operating leases, to be operating expenses. As such, they are not included in the amounts added back to net earnings in the Adjusted EBITDA calculation. We provide below a reconciliation of Adjusted EBITDA to net earnings, which is the most directly comparable financial measure to this non-GAAP financial measure. Adjusted EBITDA margin is our calculation of Adjusted EBITDA divided by net sales.
|
Three Months Ended
December 31,
|
Nine Months Ended
December 31,
|
|||||||||||||||
Consolidated
|
2016
|
2015
|
2016
|
2015
|
||||||||||||
Net earnings
|
$
|
12,620
|
$
|
10,297
|
$
|
40,066
|
$
|
34,790
|
||||||||
Provision for income taxes
|
8,687
|
7,348
|
27,310
|
24,582
|
||||||||||||
Depreciation and amortization
|
1,910
|
1,331
|
5,408
|
3,739
|
||||||||||||
Less: Other income
|
-
|
-
|
(380
|
)
|
-
|
|||||||||||
Adjusted EBITDA
|
$
|
23,217
|
$
|
18,976
|
$
|
72,404
|
$
|
63,111
|
||||||||
Technology Segment
|
||||||||||||||||
Operating income
|
$
|
16,889
|
$
|
14,671
|
$
|
56,003
|
$
|
50,345
|
||||||||
Plus: Depreciation and amortization
|
1,908
|
1,327
|
5,400
|
3,728
|
||||||||||||
Adjusted EBITDA
|
$
|
18,797
|
$
|
15,998
|
$
|
61,403
|
$
|
54,073
|
||||||||
Financing Segment
|
||||||||||||||||
Operating income
|
$
|
4,418
|
$
|
2,974
|
$
|
10,993
|
$
|
9,027
|
||||||||
Plus: Depreciation and amortization
|
2
|
4
|
8
|
11
|
||||||||||||
Adjusted EBITDA
|
$
|
4,420
|
$
|
2,978
|
$
|
11,001
|
$
|
9,038
|
· |
Portfolio income: Interest income from financing receivables and rents due under operating leases;
|
· |
Transactional gains: Net gains or losses on the sale of financial assets; and
|
· |
Post-contract earnings: Month-to-month rents; early termination, prepayment, make-whole, or buyout fees; and net gains on the sale of off-lease (used) equipment.
|
Three Months Ended December 31,
|
Nine Months Ended December 31,
|
|||||||||||||||||||||||||||||||
2016
|
2015
|
Change
|
2016
|
2015
|
Change
|
|||||||||||||||||||||||||||
Sales of product and services
|
$
|
317,391
|
$
|
287,859
|
$
|
29,532
|
10.3
|
%
|
$
|
968,799
|
$
|
871,814
|
$
|
96,985
|
11.1
|
%
|
||||||||||||||||
Fee and other income
|
915
|
1,506
|
(591
|
)
|
(39.2
|
%)
|
3,679
|
5,038
|
(1,359
|
)
|
(27.0
|
%)
|
||||||||||||||||||||
Net sales
|
318,306
|
289,365
|
28,941
|
10.0
|
%
|
972,478
|
876,852
|
95,626
|
10.9
|
%
|
||||||||||||||||||||||
Cost of sales, product and services
|
251,729
|
231,503
|
20,226
|
8.7
|
%
|
769,780
|
700,429
|
69,351
|
9.9
|
%
|
||||||||||||||||||||||
Gross profit
|
66,577
|
57,862
|
8,715
|
15.1
|
%
|
202,698
|
176,423
|
26,275
|
14.9
|
%
|
||||||||||||||||||||||
Professional and other fees
|
1,216
|
1,608
|
(392
|
)
|
(24.4
|
%)
|
4,138
|
4,175
|
(37
|
)
|
(0.9
|
%)
|
||||||||||||||||||||
Salaries and benefits
|
40,155
|
35,043
|
5,112
|
14.6
|
%
|
117,822
|
101,471
|
16,351
|
16.1
|
%
|
||||||||||||||||||||||
General and administrative
|
6,409
|
5,203
|
1,206
|
23.2
|
%
|
19,335
|
16,653
|
2,682
|
16.1
|
%
|
||||||||||||||||||||||
Depreciation and amortization
|
1,908
|
1,327
|
581
|
43.8
|
%
|
5,400
|
3,728
|
1,672
|
44.8
|
%
|
||||||||||||||||||||||
Interest and financing costs
|
-
|
10
|
(10
|
)
|
(100.0
|
%)
|
-
|
51
|
(51
|
)
|
(100.0
|
%)
|
||||||||||||||||||||
Operating expenses
|
49,688
|
43,191
|
6,497
|
15.0
|
%
|
146,695
|
126,078
|
20,617
|
16.4
|
%
|
||||||||||||||||||||||
Operating income
|
$
|
16,889
|
$
|
14,671
|
$
|
2,218
|
15.1
|
%
|
$
|
56,003
|
$
|
50,345
|
$
|
5,658
|
11.2
|
%
|
||||||||||||||||
Adjusted EBITDA
|
$
|
18,797
|
$
|
15,998
|
$
|
2,799
|
17.5
|
%
|
$
|
61,403
|
$
|
54,073
|
$
|
7,330
|
13.6
|
%
|
Quarter Ended
|
Sequential
|
Year over Year
|
|||||||
December 31, 2016
|
(12.1
|
%)
|
10.3
|
%
|
|||||
September 30, 2016
|
24.5
|
%
|
11.4
|
%
|
|||||
June 30, 2016
|
(0.5
|
%)
|
11.7
|
%
|
|||||
March 31, 2016
|
1.3
|
%
|
13.3
|
%
|
|||||
December 31, 2015
|
(11.2
|
%)
|
(2.6
|
%)
|
|||||
September 30, 2015
|
24.9
|
%
|
13.1
|
%
|
Twelve Months Ended December 31,
|
||||||||||||
2016
|
2015
|
Change
|
||||||||||
Revenue by customer end market:
|
||||||||||||
SLED
|
21
|
%
|
23
|
%
|
(2
|
%)
|
||||||
Technology
|
22
|
%
|
23
|
%
|
(1
|
%)
|
||||||
Telecom, Media & Entertainment
|
16
|
%
|
14
|
%
|
2
|
%
|
||||||
Healthcare
|
11
|
%
|
10
|
%
|
1
|
%
|
||||||
Financial Services
|
12
|
%
|
12
|
%
|
-
|
|||||||
Other
|
18
|
%
|
18
|
%
|
-
|
|
||||||
Total
|
100
|
%
|
100
|
%
|
||||||||
Revenue by vendor:
|
||||||||||||
Cisco Systems
|
49
|
%
|
49
|
%
|
-
|
|||||||
HP Inc. & HPE
|
6
|
%
|
7
|
%
|
(1
|
%)
|
||||||
NetApp
|
5
|
%
|
6
|
%
|
(1
|
%)
|
||||||
Sub-total
|
60
|
%
|
62
|
%
|
(2
|
%)
|
||||||
Other
|
40
|
%
|
38
|
%
|
2
|
%
|
||||||
Total
|
100
|
%
|
100
|
%
|
Three Months Ended December 31,
|
Nine Months Ended December 31,
|
|||||||||||||||||||||||||||||||
2016
|
2015
|
Change
|
2016
|
2015
|
Change
|
|||||||||||||||||||||||||||
Financing revenue
|
$
|
8,190
|
$
|
9,289
|
$
|
(1,099
|
)
|
(11.8
|
%)
|
$
|
23,899
|
$
|
27,914
|
$
|
(4,015
|
)
|
(14.4
|
%)
|
||||||||||||||
Fee and other income
|
161
|
(10
|
)
|
171
|
1710.0
|
%
|
245
|
30
|
215
|
716.7
|
%
|
|||||||||||||||||||||
Net sales
|
8,351
|
9,279
|
(928
|
)
|
(10.0
|
%)
|
24,144
|
27,944
|
(3,800
|
)
|
(13.6
|
%)
|
||||||||||||||||||||
Direct lease costs
|
1,142
|
3,081
|
(1,939
|
)
|
(62.9
|
%)
|
3,459
|
9,256
|
(5,797
|
)
|
(62.6
|
%)
|
||||||||||||||||||||
Gross profit
|
7,209
|
6,198
|
1,011
|
16.3
|
%
|
20,685
|
18,688
|
1,997
|
10.7
|
%
|
||||||||||||||||||||||
Professional and other fees
|
181
|
274
|
(93
|
)
|
(33.9
|
%)
|
780
|
738
|
42
|
5.7
|
%
|
|||||||||||||||||||||
Salaries and benefits
|
2,230
|
2,329
|
(99
|
)
|
(4.3
|
%)
|
6,657
|
6,855
|
(198
|
)
|
(2.9
|
%)
|
||||||||||||||||||||
General and administrative
|
(31
|
)
|
231
|
(262
|
)
|
(113.4
|
%)
|
1,089
|
737
|
352
|
47.8
|
%
|
||||||||||||||||||||
Depreciation and amortization
|
2
|
4
|
(2
|
)
|
(50.0
|
%)
|
8
|
11
|
(3
|
)
|
(27.3
|
%)
|
||||||||||||||||||||
Interest and financing costs
|
409
|
386
|
23
|
6.0
|
%
|
1,158
|
1,320
|
(162
|
)
|
(12.3
|
%)
|
|||||||||||||||||||||
Operating expenses
|
2,791
|
3,224
|
(433
|
)
|
(13.4
|
%)
|
9,692
|
9,661
|
31
|
0.3
|
%
|
|||||||||||||||||||||
Operating income
|
$
|
4,418
|
$
|
2,974
|
$
|
1,444
|
48.6
|
%
|
$
|
10,993
|
$
|
9,027
|
$
|
1,966
|
21.8
|
%
|
||||||||||||||||
Adjusted EBITDA
|
$
|
4,420
|
$
|
2,978
|
$
|
1,442
|
48.4
|
%
|
$
|
11,001
|
$
|
9,038
|
$
|
1,963
|
21.7
|
%
|
Nine Months Ended December 31,
|
||||||||
2016
|
2015
|
|||||||
Net provided by (cash used) in operating activities
|
$
|
29,702
|
$
|
(17,717
|
)
|
|||
Net cash used in investing activities
|
(47,040
|
)
|
(44,344
|
)
|
||||
Net cash provided by (used in) financing activities
|
(8,205
|
)
|
52,479
|
|||||
Effect of exchange rate changes on cash
|
454
|
(26
|
)
|
|||||
Net decrease in cash and cash equivalents
|
$
|
(25,089
|
)
|
$
|
(9,608
|
)
|
As of December 31,
|
||||||||
2016
|
2015
|
|||||||
Days sales outstanding (1)
|
52
|
56
|
||||||
Days inventory outstanding (2)
|
23
|
6
|
||||||
Days payable outstanding (3)
|
(48
|
)
|
(42
|
)
|
||||
Cash conversion cycle
|
27
|
20
|
(1) |
Represents the rolling three-month average of the balance of trade accounts receivable-trade, net for our Technology segment at the end of the period divided by Adjusted gross billings of product and services for the same three-month period.
|
(2) |
Represents the rolling three-month average of the balance of inventory, net for our Technology segment at the end of the period divided by Cost of adjusted gross billings of product and services for the same three-month period.
|
(3) |
Represents the rolling three-month average of the combined balance of accounts payable-trade and accounts payable-floor plan for our Technology segment at the end of the period divided by Cost of adjusted gross billings of product and services for the same three-month period.
|
Maximum Credit Limit
at December 31, 2016 |
Balance as of
December 30, 2016
|
Maximum Credit Limit
at March 31, 2016 |
Balance as of
March 31, 2016
|
|||||||||||
$
|
250,000
|
$
|
120,854
|
$
|
250,000
|
$
|
121,893
|
Period
|
Total
number of
shares
purchased
(1)
|
Average
price paid
per share
|
Total number of
shares
purchased as
part of publicly
announced plans
or programs
|
Maximum number (or
approximate dollar
value) of shares that
may yet be purchased
under the plans or
programs
|
||||||||||||||||
April 1, 2016 through April 30, 2016
|
113,035
|
$
|
80.70
|
113,035
|
270,663
|
(2
|
)
|
|||||||||||||
May 1, 2016 through May 31, 2016
|
78,659
|
$
|
81.59
|
78,659
|
192,004
|
(3
|
)
|
|||||||||||||
June 1, 2016 through June 30, 2016
|
64,834
|
$
|
84.78
|
35,098
|
156,906
|
(4
|
)
|
|||||||||||||
July 1, 2016 through July 31, 2016
|
83,510
|
$
|
82.47
|
83,510
|
73,396
|
(5
|
)
|
|||||||||||||
August 1, 2016 through August 16, 2016
|
18,179
|
$
|
82.88
|
18,179
|
55,217
|
(6
|
)
|
|||||||||||||
August 19, 2016 through August 31, 2016
|
-
|
$
|
-
|
-
|
500,000
|
(7
|
)
|
|||||||||||||
September 1, 2016 through September 30, 2016
|
-
|
$
|
-
|
-
|
500,000
|
(8
|
)
|
|||||||||||||
October 1, 2016 through October 31, 2016
|
-
|
$
|
-
|
-
|
500,000
|
(9
|
)
|
|||||||||||||
November 1, 2016 through November 30, 2016
|
-
|
$
|
-
|
-
|
500,000
|
(10
|
)
|
|||||||||||||
December 1, 2016 through December 31, 2016
|
-
|
$
|
-
|
-
|
500,000
|
(11
|
)
|
(1) |
All shares acquired were in open-market purchases, except for 29,736 shares, which were repurchased in June 2016 to satisfy tax withholding obligations that arose due to the vesting of shares of restricted stock.
|
(2) |
The share purchase authorization in place for the month ended April 30, 2016 had purchase limitations on the number of shares of up to 500,000 shares. As of April 30, 2016, the remaining authorized shares to be purchased were 270,663.
|
(3) |
The share purchase authorization in place for the month ended May 31, 2016 had purchase limitations on the number of shares of up to 500,000 shares. As of May 31, 2016, the remaining authorized shares to be purchased were 192,004.
|
(4) |
The share purchase authorization in place for the month ended June 30, 2016 had purchase limitations on the number of shares of up to 500,000 shares. As of June 30, 2016, the remaining authorized shares to be purchased were 156,906.
|
(5) |
The share purchase authorization in place for the month ended July 31, 2016 had purchase limitations on the number of shares of up to 500,000 shares. As of July 31, 2016, the remaining authorized shares to be purchased were 73,396.
|
(6) |
As of August 16, 2016 the authorization under the then existing share purchase plan expired.
|
(7) |
On August 9, 2016, the board of directors authorized the company to repurchase up to 500,000 shares of its outstanding common stock commencing on August 19, 2016 through August 18, 2017. As of August 31, 2016, the remaining authorized shares to be purchased were 500,000.
|
(8) |
The share purchase authorization in place for the month ended September 30, 2016 had purchase limitations on the number of shares of up to 500,000 shares. As of September 30, 2016, the remaining authorized shares to be purchased were 500,000.
|
(9) |
The share purchase authorization in place for the month ended October 31, 2016 had purchase limitations on the number of shares of up to 500,000 shares. As of October 31, 2016, the remaining authorized shares to be purchased were 500,000.
|
(10) |
The share purchase authorization in place for the month ended November 30, 2016 had purchase limitations on the number of shares of up to 500,000 shares. As of November 30, 2016, the remaining authorized shares to be purchased were 500,000.
|
(11) |
The share purchase authorization in place for the month ended December 31, 2016 had purchase limitations on the number of shares of up to 500,000 shares. As of December 31, 2016, the remaining authorized shares to be purchased were 500,000.
|
Certification of the Chief Executive Officer of ePlus inc. pursuant to the Securities Exchange Act Rules 13a-14(a) and 15d-14(a).
|
|
|
|
Certification of the Chief Financial Officer of ePlus inc. pursuant to the Securities Exchange Act Rules 13a-14(a) and 15d-14(a).
|
|
|
|
Certification of the Chief Executive Officer and Chief Financial Officer of ePlus inc. pursuant to 18 U.S.C. § 1350.
|
|
|
|
101.INS
|
XBRL Instance Document
|
|
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
|
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
ePlus inc.
|
||
Date: February 2, 2017
|
/s/ MARK P. MARRON
|
|
By: Mark P. Marron,
|
||
Chief Executive Officer and
President
|
||
(Principal Executive Officer)
|
||
Date: February 2, 2017
|
/s/ ELAINE D. MARION
|
|
By: Elaine D. Marion
|
||
Chief Financial Officer
|
||
(Principal Financial Officer)
|
1. |
I have reviewed this quarterly report on Form 10-Q of ePlus inc.;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4. |
The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15 (f)) for the registrant and have:
|
a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c) |
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d) |
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5. |
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
/s/ MARK P. MARRON
|
|
Mark P. Marron
|
|
Chief Executive Officer and President
|
|
(Principal Executive Officer)
|
1. |
I have reviewed this quarterly report on Form 10-Q of ePlus inc.;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4. |
The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15 (f)) for the registrant and have:
|
a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c) |
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d) |
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5. |
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
/s/ ELAINE D. MARION
|
|
Elaine D. Marion
|
|
Chief Financial Officer
|
|
(Principal Financial Officer)
|
a) |
the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
b) |
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of ePlus inc.
|
/s/ MARK P. MARRON
|
|
Mark P. Marron, Chief Executive Officer
and President
|
|
(Principal Executive Officer)
|
|
/s/ ELAINE D. MARION
|
|
Elaine D. Marion, Chief Financial Officer
|
|
(Principal Financial Officer)
|
Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Jan. 31, 2017 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | EPLUS INC | |
Entity Central Index Key | 0001022408 | |
Current Fiscal Year End Date | --03-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 7,080,655 | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2016 |
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands |
Dec. 31, 2016 |
Mar. 31, 2016 |
---|---|---|
STOCKHOLDERS' EQUITY | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 2,000 | 2,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 25,000 | 25,000 |
Common stock, shares issued (in shares) | 13,310 | 13,237 |
Common stock, shares outstanding (in shares) | 7,080 | 7,365 |
Treasury stock, shares (in shares) | 6,230 | 5,872 |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | ||||
Net sales | $ 326,657 | $ 298,644 | $ 996,622 | $ 904,796 |
Cost of sales | 252,871 | 234,584 | 773,239 | 709,685 |
Gross profit | 73,786 | 64,060 | 223,383 | 195,111 |
Professional and other fees | 1,397 | 1,882 | 4,918 | 4,913 |
Salaries and benefits | 42,385 | 37,372 | 124,479 | 108,326 |
General and administrative expenses | 6,378 | 5,434 | 20,424 | 17,390 |
Depreciation and amortization | 1,910 | 1,331 | 5,408 | 3,739 |
Interest and financing costs | 409 | 396 | 1,158 | 1,371 |
Operating expenses | 52,479 | 46,415 | 156,387 | 135,739 |
Operating income | 21,307 | 17,645 | 66,996 | 59,372 |
Other income | 0 | 0 | 380 | 0 |
Earnings before tax | 21,307 | 17,645 | 67,376 | 59,372 |
Provision for income taxes | 8,687 | 7,348 | 27,310 | 24,582 |
Net earnings | $ 12,620 | $ 10,297 | $ 40,066 | $ 34,790 |
Net earnings per common share-basic (in dollars per share) | $ 1.83 | $ 1.41 | $ 5.77 | $ 4.79 |
Net earnings per common share-diluted (in dollars per share) | $ 1.81 | $ 1.40 | $ 5.71 | $ 4.74 |
Weighted average common shares outstanding-basic (in shares) | 6,896 | 7,280 | 6,946 | 7,260 |
Weighted average common shares outstanding-diluted (in shares) | 6,960 | 7,329 | 7,013 | 7,336 |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ||||
NET EARNINGS | $ 12,620 | $ 10,297 | $ 40,066 | $ 34,790 |
OTHER COMPREHENSIVE INCOME, NET OF TAX: | ||||
Foreign currency translation adjustments | (145) | (139) | (240) | (273) |
Other comprehensive income (loss) | (145) | (139) | (240) | (273) |
TOTAL COMPREHENSIVE INCOME | $ 12,475 | $ 10,158 | $ 39,826 | $ 34,517 |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - 9 months ended Dec. 31, 2016 - USD ($) shares in Thousands, $ in Thousands |
Common Stock [Member] |
Additional Paid-in Capital [Member] |
Treasury Stock [Member] |
Retained Earnings [Member] |
Accumulated Other Comprehensive Income [Member] |
Total |
---|---|---|---|---|---|---|
Balance at Mar. 31, 2016 | $ 132 | $ 117,511 | $ (129,518) | $ 331,224 | $ (471) | $ 318,878 |
Balance (in shares) at Mar. 31, 2016 | 7,365 | 7,365 | ||||
Issuance of restricted stock awards | $ 1 | 0 | 0 | 0 | 0 | $ 1 |
Issuance of restricted stock awards (in shares) | 73 | |||||
Share-based compensation | $ 0 | 4,520 | 0 | 0 | 0 | 4,520 |
Share-based compensation (in shares) | 0 | |||||
Repurchase of common stock | $ 0 | 0 | (29,430) | 0 | 0 | (29,430) |
Repurchase of common stock (in shares) | (358) | |||||
Net earnings | $ 0 | 0 | 0 | 40,066 | 0 | 40,066 |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 | (240) | (240) |
Balance at Dec. 31, 2016 | $ 133 | $ 122,031 | $ (158,948) | $ 371,290 | $ (711) | $ 333,795 |
Balance (in shares) at Dec. 31, 2016 | 7,080 | 7,080 |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
9 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 | |||
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
DESCRIPTION OF BUSINESS — Our company was founded in 1990 and is a Delaware corporation. ePlus inc. is sometimes referred to in this Quarterly Report on Form 10-Q as "we," "our," "us," "ourselves," or "ePlus." ePlus inc. is a holding company that through its subsidiaries provides information technology solutions which enable organizations to optimize their IT environment and supply chain processes. We also provide consulting, professional and managed services and complete lifecycle management services including flexible financing solutions. We focus on middle market and large enterprises in North America and the United Kingdom. BASIS OF PRESENTATION — The consolidated financial statements include the accounts of ePlus inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The accounts of businesses acquired are included in the consolidated financial statements from the dates of acquisition. INTERIM FINANCIAL STATEMENTS — The unaudited condensed consolidated financial statements for the three and nine months ended December 31, 2016 and 2015 were prepared by us, without audit, and include all normal and recurring adjustments that, in the opinion of management, are necessary for a fair presentation of our financial position, results of operations, changes in comprehensive income and cash flows for such periods. Operating results for the three and nine months ended December 31, 2016 and 2015 are not necessarily indicative of results that may be expected for any other interim period or for the full fiscal year ending March 31, 2017 or any other future period. These unaudited condensed consolidated financial statements do not include all disclosures required by the accounting principles generally accepted in the United States (“U.S. GAAP”) for annual financial statements. Our audited consolidated financial statements are contained in our annual report on Form 10-K for the year ended March 31, 2016 (“2016 Financial Statements”), which should be read in conjunction with these interim condensed consolidated financial statements. USE OF ESTIMATES — The preparation of financial statements in conformity with U. S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Estimates are used when accounting for items and matters including, but not limited to, revenue recognition, residual values, vendor consideration, lease classification, goodwill and intangible assets, reserves for credit losses, inventory obsolescence, and the recognition and measurement of income tax assets and other provisions and contingencies. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ from these estimates. The notes to the consolidated financial statements contained in the 2016 Financial Statements include additional discussion of the significant accounting policies and estimates used in the preparation of our consolidated financial statements. There have been no material changes to our significant accounting policies and estimates during the nine months ended December 31, 2016. DEFERRED COSTS AND DEFERRED REVENUES — Deferred costs include internal and third party costs associated with deferred revenue arrangements. Deferred revenue includes payments received from customers in advance of delivering equipment and software or performing professional, managed and hosting services and amounts deferred when any of the other revenue recognition criteria have not been met. At December 31, 2016, total deferred costs and revenues were $9.4 million and $67.3 million, respectively, compared to $8.2 million and $20.2 million, respectively, as of March 31, 2016. The increase in deferred revenue is primarily due to prepayments by a customer for equipment that we expect to deliver in the next three to six months. CONCENTRATIONS OF RISK — A substantial portion of our sales of product and services are from sales of Cisco Systems, Hewlett Packard Enterprise (“HPE”), and NetApp products, which represented approximately 45%, 6% and 6% and 49%, 6% and 5%, respectively, for the three and nine months ended December 31, 2016. Sales of Cisco Systems, Hewlett Packard (“HP”), and NetApp products represented approximately 48%, 6%, and 7%, and 49%, 8%, and 5%, respectively, for the three and nine months ended December 31, 2015. Any changes in our vendors’ ability to provide products or incentive programs could have a material adverse effect on our business, results of operations and financial condition. |
RECENT ACCOUNTING PRONOUNCEMENTS |
9 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 | |||
RECENTLY ACCOUNTING PRONOUNCEMENTS [Abstract] | |||
RECENT ACCOUNTING PRONOUNCEMENTS |
RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS — In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Stock Compensation. This update simplifies several aspects of the accounting for share-based payment transactions. As permitted, we elected to early adopt this update during the quarter ended June 30, 2016. The amendments requiring recognition of excess tax benefits and deficiencies in the income statement have been applied prospectively resulting in a benefit in the nine months ended December 31, 2016 of $0.5 million, or $0.07 per share. We elected to apply the amendments related to the presentation of excess tax benefits on the statement of cash flows using a retrospective transition method, and as a result, $1.2 million of excess tax benefits related to share-based awards which were previously classified as cash flows from financing activities in the nine months ended December 31, 2015 have been reclassified as cash flows from operating activities. As part of adopting this update, we additionally elected as an accounting policy to account for forfeitures of share-based awards when they occur. As we had previously estimated the forfeiture rate to be zero, there is no cumulative-effect adjustment to retained earnings as a result of our election. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED — In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which will supersede all current U.S. GAAP on this topic. The FASB subsequently issued ASU 2016-08, Principal versus Agent Considerations, ASU 2016-10, Identifying Performance Obligations and Licensing, ASU 2016-12, Narrow-Scope Improvements and Practical Expedients, and ASU 2016-20, Technical Corrections and Improvements to Topic 606, in March 2016, April 2016, May 2016, and December 2016 respectively, to amend the guidance in ASU 2014-09. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, to defer the effective date of ASU 2014-09 by one year. Including the one-year deferral, these updates become effective for us in our quarter ending June 30, 2018, and early adoption is permitted for us in our quarter ending June 30, 2017. The update can be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. We are currently evaluating the impact of this update on our financial statements and have not yet selected our planned transition approach. In February 2016, the FASB issued ASU 2016-02, Leases, which will supersede the current U.S. GAAP on this topic. The core principle of this update is that a lessee should recognize the assets and liabilities that arise from leases. This update requires adoption under the modified retrospective approach and becomes effective for us in our quarter ending June 30, 2019. Early adoption is permitted. We are currently evaluating the impact of this update on our financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments- Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments in this update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This update requires adoption under a modified retrospective approach and becomes effective for us in our quarter ending June 30, 2020. Early adoption is permitted beginning in our quarter ending June 30, 2019. We are currently evaluating the impact of this update on our financial statements. |
FINANCING RECEIVABLES AND OPERATING LEASES |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FINANCING RECEIVABLES AND OPERATING LEASES [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FINANCING RECEIVABLES AND OPERATING LEASES |
Our financing receivables and operating leases consist of assets that we finance for our customers, which we manage as a portfolio of investments. Equipment financed for our customers is accounted for as investments in direct financing, sales-type or operating leases in accordance with Accounting Standards Codification (“ASC”) Topic 840, Leases. We also finance third-party software, maintenance, and services for our customers, which are classified as notes receivables. Our notes receivables are interest bearing and are often due over a period of time that corresponds with the terms of the leased products. FINANCING RECEIVABLES—NET Our financing receivables, net consist of the following (in thousands):
OPERATING LEASES—NET Operating leases—net represents leases that do not qualify as direct financing leases. The components of the operating leases—net are as follows (in thousands):
TRANSFERS OF FINANCIAL ASSETS We enter into arrangements to transfer the contractual payments due under financing receivables and operating lease agreements, which are accounted for as sales or secured borrowings in accordance with Codification Topic 860, Transfers and Servicing. For transfers accounted for as a secured borrowing, the corresponding investments serve as collateral for non-recourse notes payable. As of December 31, 2016 and March 31, 2016 we had financing receivables of $54.9 million and $36.1 million, respectively, and operating leases of $6.7 million and $13.9 million, respectively, which were collateral for non-recourse notes payable. See Note 7, "Notes Payable and Credit Facility." For transfers accounted for as sales, we derecognize the carrying value of the asset transferred and recognize a net gain or loss on the sale, which are presented within net sales in the consolidated statement of operations. During the three months ended December 31, 2016 and 2015, we recognized net gains of $0.9 million and $1.4 million, respectively, and total proceeds from these sales were $55.8 million and $54.1 million, respectively. During the nine months ended December 31, 2016 and 2015, we recognized net gains of $4.1 million and $5.4 million, respectively. The total proceeds from these sales were $185.4 million and $162.7 million for the nine months ended December 31, 2016 and 2015, respectively. For certain assignments of financial assets, we retain a servicing obligation. For assignments accounted for as sales, we allocate a portion of the proceeds to deferred revenues, which is recognized as we perform the services. In a limited number of such sales, we indemnified the assignee in the event that the lessee elected to early terminate the lease. As of December 31, 2016, our maximum potential future payments related to such guarantees is $1.2 million. We believe the possibility of making any payments to be remote. |
GOODWILL AND OTHER INTANGIBLE ASSETS |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS |
Our goodwill and other intangible assets consist of the following (in thousands):
GOODWILL Goodwill represents the premium paid over the fair value of the net tangible and intangible assets that are individually identified and separately recognized in business combinations. All of our goodwill as of December 31, 2016 and March 31, 2016 is related to our technology reportable segment, which we also determined to be one reporting unit. Goodwill increased by $7.3 million from March 31, 2016 to December 31, 2016 due to the addition of $7.6 million from our acquisition of certain assets and assumption of certain liabilities of the IT Services equipment and integration business of Consolidated Communications Holdings, Inc. (“Consolidated IT Services”) in December, 2016, partially offset by $0.3 million due to foreign currency translation. See Note 15, “Business Combinations” for additional information. We performed our annual test for impairment for fiscal year 2017 as of October 1, 2016. We elected to bypass the qualitative assessment of goodwill and estimate the fair value of our reporting units. The fair value of our technology reporting unit substantially exceeded its carrying value as of October 1, 2016. Our conclusions would not be impacted by a ten percent change in our estimate of the fair value of the reporting unit. We performed our annual test for impairment for fiscal year 2016 as of October 1, 2015. We performed a qualitative assessment for goodwill and concluded that the fair value of our reporting units, more likely than not, exceeded their respective carrying values as of October 1, 2015. OTHER INTANGIBLE ASSETS Customer relationships and capitalized software development costs are amortized over an estimated useful life, which is generally between 3 to 7 years. Trade names and trademarks are amortized over an estimated useful life of 10 years. Total amortization expense for other intangible assets was $1.1 million and $0.8 million for the three months and $3.4 million and $2.1 million for the nine months ended December 31, 2016 and 2015, respectively. |
RESERVES FOR CREDIT LOSSES |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RESERVES FOR CREDIT LOSSES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RESERVES FOR CREDIT LOSSES |
Activity in our reserves for credit losses for the nine months ended December 31, 2016 and 2015 were as follows (in thousands):
Our reserves for credit losses and minimum payments associated with our notes receivables and lease-related receivables disaggregated on the basis of our impairment method were as follows (in thousands):
As of December 31, 2016 and March 31, 2016 we had a balance outstanding of $3.2 million for a customer in bankruptcy which is in a non-accrual status. We place receivables on non-accrual status when events, such as a customer’s declaring bankruptcy, occur that indicate a receivable will not be collectable. We charge off uncollectable financing receivables when we stop pursuing collection. The age of the recorded minimum lease payments and net credit exposure associated with our investment in direct financing and sales-type leases that are past due disaggregated based on our internally assigned credit quality rating (“CQR”) were as follows as of December 31, 2016 and March 31, 2016 (in thousands):
The age of the recorded notes receivable balance disaggregated based on our internally assigned CQR were as follows as December 31, 2016 and March 31, 2016 (in thousands):
We estimate losses on our net credit exposure to be between 0% - 5% for customers with highest CQR, as these customers are investment grade or the equivalent of investment grade. We estimate losses on our net credit exposure to be between 2% - 15% for customers with average CQR, and between 15% - 100% for customers with low CQR, which includes customers in bankruptcy. |
PROPERTY, EQUIPMENT, OTHER ASSETS AND LIABILITIES |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PROPERTY, EQUIPMENT, OTHER ASSETS AND LIABILITIES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PROPERTY, EQUIPMENT, OTHER ASSETS AND LIABILITIES |
Our property, equipment, other assets and liabilities consist of the following (in thousands):
|
NOTES PAYABLE AND CREDIT FACILITY |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE AND CREDIT FACILITY [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE AND CREDIT FACILITY |
Non-recourse and recourse obligations consist of the following (in thousands):
Principal and interest payments on non-recourse notes payable are generally due monthly in amounts that are approximately equal to the total payments due from the customer under the leases or notes receivable that collateralize the notes payable. The weighted average interest rate for our non-recourse notes payable was 3.38% and 3.13%, as of December 31, 2016 and March 31, 2016, respectively. The weighted average interest rate for our recourse notes payable was 3.24%, as of December 31, 2016 and March 31, 2016. Under recourse financing, in the event of a default by a customer, the lender has recourse to the customer, the assets serving as collateral, and us. Under non-recourse financing, in the event of a default by a customer, the lender generally only has recourse against the customer, and the assets serving as collateral, but not against us. Our technology segment, through our subsidiary ePlus Technology, inc., finances its operations with funds generated from operations, and with a credit facility with Wells Fargo Commercial Distribution Finance, LLC or (“WFCDF”). This facility provides short-term capital for our technology segment. There are two components of the WFCDF credit facility: (1) a floor plan component, and (2) an accounts receivable component. Under the floor plan component, we had outstanding balances of $120.9 million and $121.9 million as of December 31, 2016 and March 31, 2016, respectively. Under the accounts receivable component, we had no outstanding balances as of December 31, 2016 and March 31, 2016. As of December 31, 2016, the facility agreement had an aggregate limit of the two components of $250 million, and the accounts receivable component had a sub-limit of $30 million, which bears interest assessed at a rate of the One Month LIBOR plus two and one half percent. The credit facility has full recourse to ePlus Technology, inc. and is secured by a blanket lien against all its assets, such as receivables and inventory. Availability under the facility may be limited by the asset value of equipment we purchase or accounts receivable, and may be further limited by certain covenants and terms and conditions of the facility. These covenants include but are not limited to a minimum excess availability of the facility and minimum earnings before interest, taxes, depreciation and amortization (“EBITDA”) of ePlus Technology, inc. We were in compliance with these covenants as of December 31, 2016. In addition, the facility restricts the ability of ePlus Technology, inc. to transfer funds to its affiliates in the form of dividends, loans or advances with certain exceptions for dividends to ePlus inc. The facility also requires that financial statements of ePlus Technology, inc. be provided within 45 days of each quarter and 90 days of each fiscal year end and also includes that other operational reports be provided on a regular basis. Either party may terminate with 90 days’ advance notice. We are not, and do not believe that we are reasonably likely to be, in breach of the WFCDF credit facility. In addition, we do not believe that the covenants of the WFCDF credit facility materially limit our ability to undertake financing. In this regard, the covenants apply only to our subsidiary, ePlus Technology, inc. This credit facility is secured by the assets of only ePlus Technology, inc. and the guaranty as described below. The facility provided by WFCDF requires a guaranty of $10.5 million by ePlus inc. The guaranty requires ePlus inc. to deliver its annual audited financial statements by certain dates. We have delivered the annual audited financial statements for the year ended March 31, 2016, as required. The loss of the WFCDF credit facility could have a material adverse effect on our future results as we currently rely on this facility and its components for daily working capital and liquidity for our technology segment and as an operational function of our accounts payable process. Fair Value As of December 31, 2016 and March 31, 2016, the fair value of our long-term recourse and non-recourse notes payable approximated their carrying value. |
COMMITMENTS AND CONTINGENCIES |
9 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 | |||
COMMITMENTS AND CONTINGENCIES [Abstract] | |||
COMMITMENTS AND CONTINGENCIES |
Legal Proceedings We are not currently a party to any legal proceedings with loss contingencies that are expected to be material. From time to time, we may be or have been a plaintiff, or may be or have been named as a defendant, in legal actions arising from our normal business activities, none of which has had a material effect on our business, results of operations or financial condition. Legal proceedings which may arise in the ordinary course of business including preference payment claims asserted in customer bankruptcy proceedings, tax audits, claims of alleged infringement of patents, trademarks, copyrights and other intellectual property rights, claims of alleged non-compliance with contract provisions, employment-related claims, claims by competitors, vendors or customers, claims related to alleged violations of laws and regulations, and claims relating to alleged security or privacy breaches. We attempt to ameliorate the effect of potential litigation through insurance coverage and contractual protections such as rights to indemnifications and limitations of liability. We do not expect that the outcome in any of these matters, individually or collectively, will have a material adverse effect on our financial condition or results of operations, however, litigation is inherently unpredictable. Therefore, judgments could be rendered or settlements entered that could adversely affect our results of operations or cash flows in a particular period. We provide for costs related to contingencies when a loss is probable and the amount is reasonably determinable. During the nine months ended December 31, 2016, we received $380 thousand related to the dynamic random access memory (“DRAM”) class action lawsuit, which claimed that manufacturers fixed the price for DRAM, which was included within other income on our unaudited consolidated statement of operations. Contingencies Related to Third-Party Review From time to time, we are subject to potential claims and assessments from third parties. We are also subject to various governmental, customer and partner audits. We continually assess whether or not such claims have merit and warrant accrual. Where appropriate, we accrue estimates of anticipated liabilities in our consolidated financial statements. Such estimates are subject to change and may affect our results of operations and our cash flows. |
EARNINGS PER SHARE |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE |
Basic earnings per share is calculated by dividing net earnings available to common shareholders by the basic weighted average number of shares of common stock outstanding during each period. Diluted earnings per share is calculated by dividing net earnings available to common shareholders by the basic weighted average number of shares of common stock outstanding plus common stock equivalents during each period. The following table provides a reconciliation of the numerators and denominators used to calculate basic and diluted net income per common share as disclosed on our consolidated statements of operations for the three and nine months ended December 31, 2016 and 2015 (in thousands, except per share data):
Stock Split On February 2, 2017, our Board of Directors declared a two-for-one stock split effected in the form of a stock dividend. The share distribution will occur March 31, 2017. All references made to share or per share amounts in the accompanying unaudited condensed consolidated financial statements and applicable disclosures are presented on a pre-split basis. As a result of the stock split, all historical per share data and number of shares outstanding presented in future financial statements will be retroactively adjusted. The following table provides pro forma earnings per share, giving retroactive effect to the stock split (in thousands, except per share data):
|
STOCKHOLDERS' EQUITY |
9 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 | |||
STOCKHOLDERS' EQUITY [Abstract] | |||
STOCKHOLDERS' EQUITY |
On August 18, 2016, our board of directors authorized the Company to repurchase up to 500,000 shares of its outstanding common stock over a 12-month period beginning on August 19, 2016 through August 18, 2017. The plan authorized purchases to be made from time to time in the open market, or in privately negotiated transactions, subject to availability. Any repurchased shares will have the status of treasury shares and may be used, when needed, for general corporate purposes. During the nine months ended December 31, 2016, we purchased 328,481 shares of our outstanding common stock at an average cost of $81.62 per share for a total purchase price of $26.8 million under the share repurchase plan. We also purchased 29,736 shares of common stock at a value of $2.6 million to satisfy tax withholding obligations relating to the vesting of employees’ restricted stock. During the nine months ended December 31, 2015, we did not purchase any shares of our outstanding common stock under the share repurchase plan; however, we did purchase 30,447 shares of common stock at a value of $2.5 million to satisfy tax withholding obligations relating to the vesting of employees’ restricted stock. Since the inception of our initial repurchase program on September 20, 2001 to December 31, 2016, we have repurchased approximately 6.0 million shares of our outstanding common stock at an average cost of $24.44 per share for a total purchase price of $147.3 million. |
SHARE-BASED COMPENSATION |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHARE-BASED COMPENSATION [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHARE-BASED COMPENSATION |
Share-Based Plans As of December 31, 2016, we had share-based awards outstanding under the following plans: (1) the 2008 Non-Employee Director Long-Term Incentive Plan (“2008 Director LTIP”), and (2) the 2012 Employee Long-Term Incentive Plan ("2012 Employee LTIP"). Both of the share-based plans define fair market value as the previous trading day's closing price when the grant date falls on a date the stock was not traded. Restricted Stock Activity For the nine months ended December 31, 2016, we granted 5,692 restricted shares under the 2008 Director LTIP, and 67,269 restricted shares under the 2012 Employee LTIP. For the nine months ended December 31, 2015, we granted 6,383 restricted shares under the 2008 Director LTIP, and 118,974 restricted shares under the 2012 Employee LTIP. A summary of the restricted shares is as follows:
Upon each vesting period of the restricted stock awards, employees are subject to minimum tax withholding obligations. Under the 2012 Employee LTIP, we may purchase a sufficient number of shares due to the participant to satisfy their minimum tax withholding on employee stock awards. For the nine months ended December 31, 2016, the Company had withheld 29,736 shares of common stock at a value of $2.6 million, which was included in treasury stock. Compensation Expense We recognize compensation cost for awards of restricted stock with graded vesting on a straight line basis over the requisite service period. There are no additional conditions for vesting other than service conditions. During each of the three months ended December 31, 2016 and 2015, we recognized $1.5 million of total share-based compensation expense. During the nine months ended December 31, 2016 and 2015, we recognized $4.5 million and $4.2 million, respectively, of total share-based compensation expense. Unrecognized compensation expense related to non-vested restricted stock was $11.8 million as of December 31, 2016, which will be fully recognized over the next forty-two (42) months. We also provide our employees with a contributory 401(k) plan. Employer contribution percentages are determined by us and are discretionary each year. The employer contributions vest pro-ratably over a four-year service period by the employees, after which all employer contributions will be fully vested. For the three months ended December 31, 2016 and 2015 our estimated contribution expense for the plan were $0.5 million and $0.4 million, respectively. For the nine months ended December 31, 2016 and 2015, our estimated contribution expense for the plan was $1.2 million and $1.1 million, respectively. |
INCOME TAXES |
9 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 | |||
INCOME TAXES [Abstract] | |||
INCOME TAXES |
We account for our tax positions in accordance with Codification Topic 740, Income Taxes. Under the guidance, we evaluate uncertain tax positions based on the two-step approach. The first step is to evaluate each uncertain tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained in an audit, including resolution of related appeals or litigation processes, if any. For tax positions that are not likely of being sustained upon audit, the second step requires us to estimate and measure the tax benefit as the largest amount that is more than 50 percent likely of being realized upon ultimate settlement. We recognize interest and penalties for uncertain tax positions. As of December 31, 2016 our gross liability related to uncertain tax positions was $72 thousand. At December 31, 2016 if the unrecognized tax benefits of $72 thousand were to be recognized, including the effect of interest, penalties and federal tax benefit, the impact would be $106 thousand. We also recognize accrued interest and penalties related to unrecognized tax benefits as a component of tax expense. We did not recognize any additional penalties in the three and nine month periods ended December 31, 2016. We had $51 thousand and $47 thousand accrued for the payment of interest at December 31, 2016 and 2015, respectively. As permitted by the recently issued ASU 2016-09, Stock Compensation, we elected to early adopt this update during the quarter ended June 30, 2016. The amendments requiring recognition of excess tax benefits and deficiencies in the income statement have been applied prospectively resulting in a benefit in the nine months ended December 31, 2016 of $0.5 million. |
FAIR VALUE OF FINANCIAL INSTRUMENTS |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS |
We account for the fair values of our assets and liabilities in accordance with ASC Topic 820, Fair Value Measurement and Disclosure. The following table summarizes the fair value hierarchy of our financial instruments as of December 31, 2016 and March 31, 2016 (in thousands):
We recorded no adjustments that increased the fair value of our liability for contingent consideration for the three months ended December 31, 2016. For the nine months December 31, 2016, we recorded adjustments that increased the fair value of our liability for contingent consideration by $232 thousand; and such adjustments were presented within general and administrative expenses in our unaudited condensed consolidated statement of operations. During the three months and nine months ended December 31, 2016, we paid $0.7 million to satisfy the current obligations of the contingent consideration arrangement. For the three and nine months ended December 31, 2015, we recorded adjustments that increased the fair value of our liability for contingent consideration by $3 thousand and $318 thousand, respectively. During the three months and nine months ended December 31, 2015, we paid $1.2 million to satisfy the current obligations of the contingent consideration arrangement. |
SEGMENT REPORTING |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT REPORTING [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT REPORTING |
Our operations are conducted through two operating segments that are also both reportable segments. Our technology segment includes sales of information technology products, third-party software, third-party maintenance, advanced professional and managed services and our proprietary software to commercial enterprises, state and local governments, and government contractors. Our financing segment consists of the financing of IT equipment, software and related services to commercial enterprises, state and local governments, and government contractors. We measure the performance of the segments based on operating income. Our reportable segment information was as follows (in thousands):
The total of the reportable segments’ measure of profit or loss excludes other income of $380 thousand for the nine months ended December 31, 2016, which is included in the consolidated earnings before tax but is not allocated to the segments. On July 25, 2016, the Company announced its appointment of a new Chief Executive Officer and President effective August 1, 2016. We are currently evaluating the impact of this change to the determination of our reportable segments. |
BUSINESS COMBINATIONS |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BUSINESS COMBINATIONS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BUSINESS COMBINATIONS |
Consolidated IT Services acquisition On December 6, 2016, our subsidiary ePlus Technology, inc., acquired certain assets and assumed certain liabilities of Consolidated IT Services. Consolidated IT Services business provides data center, unified communications, networking, and security solutions to a diverse set of domestic and international customers including commercial, enterprise, and state, local, and education (SLED) organizations in the upper Midwest. The primary reasons for this acquisition are that Consolidated IT Services expands our reach to the upper Midwest, a new geography for ePlus, and enables us to market our advanced technology solutions to their long-standing client base. The total purchase price is $13.1 million including $9.5 million paid in cash at closing and $4.0 million that will be paid in cash in equal quarterly installments over 2 years, less $0.4 million that we believe is due back to us as part of the final working capital adjustment. Our preliminary allocation of the purchase consideration to the assets acquired and liabilities assumed is presented below (in thousands):
As stated above, our allocation of the purchase consideration is preliminary and subject to revision as additional information related to the fair value of assets and liabilities becomes available. The identified intangible assets of $3.3 million consist entirely of customer relationships with an estimated useful life of 7 years. We recognized goodwill related to this transaction of $7.6 million, which was assigned to our technology reporting unit. The goodwill recognized in the acquisition is attributable to the acquired assembled workforce and expected synergies, none of which qualify for recognition as a separate intangible asset. The total amount of goodwill is expected to be deductible for tax purposes. The amount of revenues and earnings of the acquiree since the acquisition date are not material. Likewise, the impact to the revenue and earnings of the combined entity for the current reporting period through the acquisition date had the acquisition date been April 1, 2016, is not material. IGX acquisition On December 4, 2015, our subsidiary ePlus Technology, inc., acquired certain assets and assumed certain liabilities of IGX Acquisition Global, LLC (“IGX Acquisition”), and IGX Support, LLC, including IGX Acquisition’s wholly-owned subsidiary, IGXGlobal UK Limited (collectively, “IGX”), which provide advanced security solutions, secured networking products and related professional services to a diverse set of domestic and international customers including commercial, enterprise, and state and local government and education (“SLED”) organizations. IGX is headquartered near Hartford, CT and has a sales presence in New York and Boston as well as an operating branch in London that serves its United Kingdom (“UK”) and global customers. IGXGlobal UK Limited is a private limited company, registered in England and Wales. The total purchase price, net of cash acquired, was $16.6 million paid in cash. The allocation of the purchase consideration to the assets acquired and liabilities assumed is presented below (in thousands):
The identified intangible assets consist of the following:
We recognized goodwill related to this transaction of $8.1 million, which was assigned to our technology reporting unit. The goodwill recognized in the acquisition is attributable to the acquired assembled workforce, an entry into the UK and European markets and expected synergies, none of which qualify for recognition as a separate intangible asset. The total amount of goodwill that is expected to be deductible for tax purposes is $5.8 million. The impact to our revenues and net earnings from this acquisition is not material. |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
9 Months Ended |
---|---|
Dec. 31, 2016 | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION — The consolidated financial statements include the accounts of ePlus inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The accounts of businesses acquired are included in the consolidated financial statements from the dates of acquisition. |
INTERIM FINANCIAL STATEMENTS | INTERIM FINANCIAL STATEMENTS — The unaudited condensed consolidated financial statements for the three and nine months ended December 31, 2016 and 2015 were prepared by us, without audit, and include all normal and recurring adjustments that, in the opinion of management, are necessary for a fair presentation of our financial position, results of operations, changes in comprehensive income and cash flows for such periods. Operating results for the three and nine months ended December 31, 2016 and 2015 are not necessarily indicative of results that may be expected for any other interim period or for the full fiscal year ending March 31, 2017 or any other future period. These unaudited condensed consolidated financial statements do not include all disclosures required by the accounting principles generally accepted in the United States (“U.S. GAAP”) for annual financial statements. Our audited consolidated financial statements are contained in our annual report on Form 10-K for the year ended March 31, 2016 (“2016 Financial Statements”), which should be read in conjunction with these interim condensed consolidated financial statements. |
USE OF ESTIMATES | USE OF ESTIMATES — The preparation of financial statements in conformity with U. S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Estimates are used when accounting for items and matters including, but not limited to, revenue recognition, residual values, vendor consideration, lease classification, goodwill and intangible assets, reserves for credit losses, inventory obsolescence, and the recognition and measurement of income tax assets and other provisions and contingencies. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ from these estimates. The notes to the consolidated financial statements contained in the 2016 Financial Statements include additional discussion of the significant accounting policies and estimates used in the preparation of our consolidated financial statements. There have been no material changes to our significant accounting policies and estimates during the nine months ended December 31, 2016. |
DEFERRED COSTS AND DEFERRED REVENUES | DEFERRED COSTS AND DEFERRED REVENUES — Deferred costs include internal and third party costs associated with deferred revenue arrangements. Deferred revenue includes payments received from customers in advance of delivering equipment and software or performing professional, managed and hosting services and amounts deferred when any of the other revenue recognition criteria have not been met. At December 31, 2016, total deferred costs and revenues were $9.4 million and $67.3 million, respectively, compared to $8.2 million and $20.2 million, respectively, as of March 31, 2016. The increase in deferred revenue is primarily due to prepayments by a customer for equipment that we expect to deliver in the next three to six months. |
CONCENTRATIONS OF RISK | CONCENTRATIONS OF RISK — A substantial portion of our sales of product and services are from sales of Cisco Systems, Hewlett Packard Enterprise (“HPE”), and NetApp products, which represented approximately 45%, 6% and 6% and 49%, 6% and 5%, respectively, for the three and nine months ended December 31, 2016. Sales of Cisco Systems, Hewlett Packard (“HP”), and NetApp products represented approximately 48%, 6%, and 7%, and 49%, 8%, and 5%, respectively, for the three and nine months ended December 31, 2015. Any changes in our vendors’ ability to provide products or incentive programs could have a material adverse effect on our business, results of operations and financial condition. |
RECENT ACCOUNTING PRONOUNCEMENTS (Policies) |
9 Months Ended |
---|---|
Dec. 31, 2016 | |
RECENTLY ACCOUNTING PRONOUNCEMENTS [Abstract] | |
RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS | RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS — In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Stock Compensation. This update simplifies several aspects of the accounting for share-based payment transactions. As permitted, we elected to early adopt this update during the quarter ended June 30, 2016. The amendments requiring recognition of excess tax benefits and deficiencies in the income statement have been applied prospectively resulting in a benefit in the nine months ended December 31, 2016 of $0.5 million, or $0.07 per share. We elected to apply the amendments related to the presentation of excess tax benefits on the statement of cash flows using a retrospective transition method, and as a result, $1.2 million of excess tax benefits related to share-based awards which were previously classified as cash flows from financing activities in the nine months ended December 31, 2015 have been reclassified as cash flows from operating activities. As part of adopting this update, we additionally elected as an accounting policy to account for forfeitures of share-based awards when they occur. As we had previously estimated the forfeiture rate to be zero, there is no cumulative-effect adjustment to retained earnings as a result of our election. |
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED | RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED — In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which will supersede all current U.S. GAAP on this topic. The FASB subsequently issued ASU 2016-08, Principal versus Agent Considerations, ASU 2016-10, Identifying Performance Obligations and Licensing, ASU 2016-12, Narrow-Scope Improvements and Practical Expedients, and ASU 2016-20, Technical Corrections and Improvements to Topic 606, in March 2016, April 2016, May 2016, and December 2016 respectively, to amend the guidance in ASU 2014-09. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, to defer the effective date of ASU 2014-09 by one year. Including the one-year deferral, these updates become effective for us in our quarter ending June 30, 2018, and early adoption is permitted for us in our quarter ending June 30, 2017. The update can be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. We are currently evaluating the impact of this update on our financial statements and have not yet selected our planned transition approach. In February 2016, the FASB issued ASU 2016-02, Leases, which will supersede the current U.S. GAAP on this topic. The core principle of this update is that a lessee should recognize the assets and liabilities that arise from leases. This update requires adoption under the modified retrospective approach and becomes effective for us in our quarter ending June 30, 2019. Early adoption is permitted. We are currently evaluating the impact of this update on our financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments- Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments in this update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This update requires adoption under a modified retrospective approach and becomes effective for us in our quarter ending June 30, 2020. Early adoption is permitted beginning in our quarter ending June 30, 2019. We are currently evaluating the impact of this update on our financial statements. |
FINANCING RECEIVABLES AND OPERATING LEASES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FINANCING RECEIVABLES AND OPERATING LEASES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Notes Receivable Net and Investments in Leases | Our financing receivables, net consist of the following (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in Operating Lease Equipment - Net | The components of the operating leases—net are as follows (in thousands):
|
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Goodwill and Other Intangible Assets | Our goodwill and other intangible assets consist of the following (in thousands):
|
RESERVES FOR CREDIT LOSSES (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RESERVES FOR CREDIT LOSSES [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Activity in Reserves for Credit Losses | Activity in our reserves for credit losses for the nine months ended December 31, 2016 and 2015 were as follows (in thousands):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reserve for Credit Losses and Minimum Lease Payments Associated with Notes Receivable and Investment in Direct Financing and Sales-type Lease Balances Disaggregated on the Basis of Impairment Method | Our reserves for credit losses and minimum payments associated with our notes receivables and lease-related receivables disaggregated on the basis of our impairment method were as follows (in thousands):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Age of the Recorded Notes Receivable Balance Disaggregated Based on Internally Assigned CQR | The age of the recorded minimum lease payments and net credit exposure associated with our investment in direct financing and sales-type leases that are past due disaggregated based on our internally assigned credit quality rating (“CQR”) were as follows as of December 31, 2016 and March 31, 2016 (in thousands):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Disaggregated Based on Internally Assigned CQR | The age of the recorded notes receivable balance disaggregated based on our internally assigned CQR were as follows as December 31, 2016 and March 31, 2016 (in thousands):
|
PROPERTY, EQUIPMENT, OTHER ASSETS AND LIABILITIES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PROPERTY, EQUIPMENT, OTHER ASSETS AND LIABILITIES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Equipment, Other Assets and Liabilities | Our property, equipment, other assets and liabilities consist of the following (in thousands):
|
NOTES PAYABLE AND CREDIT FACILITY (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE AND CREDIT FACILITY [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-recourse and Recourse Obligations | Non-recourse and recourse obligations consist of the following (in thousands):
|
EARNINGS PER SHARE (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Numerators and Denominators Used to Calculate Basic and Diluted Earnings per Common Share | The following table provides a reconciliation of the numerators and denominators used to calculate basic and diluted net income per common share as disclosed on our consolidated statements of operations for the three and nine months ended December 31, 2016 and 2015 (in thousands, except per share data):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pro forma Earnings Per Share | The following table provides pro forma earnings per share, giving retroactive effect to the stock split (in thousands, except per share data):
|
SHARE-BASED COMPENSATION (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHARE-BASED COMPENSATION [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Restricted Shares | A summary of the restricted shares is as follows:
|
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Hierarchy of Financial Instruments | The following table summarizes the fair value hierarchy of our financial instruments as of December 31, 2016 and March 31, 2016 (in thousands):
|
SEGMENT REPORTING (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT REPORTING [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Information, by Reportable Segment |
|
BUSINESS COMBINATIONS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Identified Intangible Assets | The identified intangible assets consist of the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated IT Services [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed |
|
||||||||||||||||||||||||||||||||||||||||||||||||||
IGX Acquisition [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed | The allocation of the purchase consideration to the assets acquired and liabilities assumed is presented below (in thousands):
|
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Mar. 31, 2016 |
|
DEFERRED COSTS AND DEFERRED REVENUES [Abstract] | |||||
Deferred costs | $ 9.4 | $ 9.4 | $ 8.2 | ||
Deferred revenue | $ 67.3 | $ 67.3 | $ 20.2 | ||
Sales Revenue, Goods and Services [Member] | Cisco [Member] | |||||
CONCENTRATION OF RISK [Abstract] | |||||
Percentage of concentration risk | 45.00% | 48.00% | 49.00% | 49.00% | |
Sales Revenue, Goods and Services [Member] | Hewlett Packard [Member] | |||||
CONCENTRATION OF RISK [Abstract] | |||||
Percentage of concentration risk | 6.00% | 6.00% | 6.00% | 8.00% | |
Sales Revenue, Goods and Services [Member] | NetApp [Member] | |||||
CONCENTRATION OF RISK [Abstract] | |||||
Percentage of concentration risk | 6.00% | 7.00% | 5.00% | 5.00% |
RECENT ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Excess tax benefits and deficiencies | $ 8,687 | $ 7,348 | $ 27,310 | $ 24,582 |
New Accounting Pronouncement, Early Adoption, Effect [Member] | Restatement Adjustment [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Excess tax benefits and deficiencies | $ (500) | $ (500) | ||
Excess tax benefits and deficiencies (in dollars per share) | $ (0.07) | |||
Excess tax benefits related to share-based awards | $ 1,200 |
FINANCING RECEIVABLES AND OPERATING LEASES (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Mar. 31, 2016 |
Mar. 31, 2015 |
|||||||||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||||||||||||||
Reserve for credit losses | $ (5,610) | $ (5,473) | $ (5,610) | $ (5,473) | $ (5,193) | $ (5,623) | ||||||||||||||||
Reported as [Abstract] | ||||||||||||||||||||||
Current | 65,945 | 65,945 | 56,448 | |||||||||||||||||||
Estimated unguaranteed residual values for direct financing lease | 11,932 | 11,932 | 6,722 | |||||||||||||||||||
Accumulated amortization of initial direct cost | 665 | 665 | 612 | |||||||||||||||||||
Collateral for non-recourse notes payable - Finance receivables | 54,900 | 54,900 | 36,100 | |||||||||||||||||||
Collateral for non-recourse notes payable - Operating leases | 6,700 | 6,700 | 13,900 | |||||||||||||||||||
Gain on sale of financing receivables | 900 | 1,400 | 4,100 | 5,400 | ||||||||||||||||||
Proceeds from sale of financing receivables | 55,800 | 54,100 | 185,400 | 162,700 | ||||||||||||||||||
Investment in operating lease equipment - net [Abstract] | ||||||||||||||||||||||
Cost of equipment under operating lease | 17,062 | 17,062 | 36,635 | |||||||||||||||||||
Accumulated depreciation | (8,886) | (8,886) | (18,897) | |||||||||||||||||||
Investment in operating lease equipment - net | [1] | 8,176 | 8,176 | 17,738 | ||||||||||||||||||
Unguaranteed residual value of operating lease equipment net | 928 | 928 | 3,417 | |||||||||||||||||||
Maximum potential future payments related guarantees | 1,200 | 1,200 | ||||||||||||||||||||
Notes Receivables [Member] | ||||||||||||||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||||||||||||||
Minimum payments | 53,167 | 53,167 | 44,442 | |||||||||||||||||||
Estimated unguaranteed residual value | 0 | [2] | 0 | [2] | 0 | [3] | ||||||||||||||||
Initial direct costs, net of amortization | 465 | [4] | 465 | [4] | 312 | [5] | ||||||||||||||||
Unearned income | 0 | 0 | 0 | |||||||||||||||||||
Reserve for credit losses | (3,508) | [6] | (3,580) | (3,508) | [6] | (3,580) | (3,381) | [6] | (3,573) | |||||||||||||
Total, net | 50,124 | 50,124 | 41,373 | |||||||||||||||||||
Reported as [Abstract] | ||||||||||||||||||||||
Current | 32,269 | 32,269 | 24,962 | |||||||||||||||||||
Long-term | 17,855 | 17,855 | 16,411 | |||||||||||||||||||
Total, net | 50,124 | 50,124 | 41,373 | |||||||||||||||||||
Lease-Related Receivables [Member] | ||||||||||||||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||||||||||||||
Minimum payments | 71,343 | 71,343 | 66,303 | |||||||||||||||||||
Estimated unguaranteed residual value | 18,069 | [2] | 18,069 | [2] | 12,693 | [3] | ||||||||||||||||
Initial direct costs, net of amortization | 518 | [4] | 518 | [4] | 475 | [5] | ||||||||||||||||
Unearned income | (7,017) | (7,017) | (5,543) | |||||||||||||||||||
Reserve for credit losses | (778) | [6] | $ (831) | (778) | [6] | $ (831) | (685) | [6] | $ (881) | |||||||||||||
Total, net | 82,135 | 82,135 | 73,243 | |||||||||||||||||||
Reported as [Abstract] | ||||||||||||||||||||||
Current | 33,676 | 33,676 | 31,486 | |||||||||||||||||||
Long-term | 48,459 | 48,459 | 41,757 | |||||||||||||||||||
Total, net | 82,135 | 82,135 | 73,243 | |||||||||||||||||||
Financing Receivables [Member] | ||||||||||||||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||||||||||||||
Minimum payments | 124,510 | 124,510 | 110,745 | |||||||||||||||||||
Estimated unguaranteed residual value | 18,069 | [2] | 18,069 | [2] | 12,693 | [3] | ||||||||||||||||
Initial direct costs, net of amortization | 983 | [4] | 983 | [4] | 787 | [5] | ||||||||||||||||
Unearned income | (7,017) | (7,017) | (5,543) | |||||||||||||||||||
Reserve for credit losses | [6] | (4,286) | (4,286) | (4,066) | ||||||||||||||||||
Total, net | 132,259 | 132,259 | 114,616 | |||||||||||||||||||
Reported as [Abstract] | ||||||||||||||||||||||
Current | 65,945 | 65,945 | 56,448 | |||||||||||||||||||
Long-term | 66,314 | 66,314 | 58,168 | |||||||||||||||||||
Total, net | $ 132,259 | $ 132,259 | $ 114,616 | |||||||||||||||||||
|
RESERVES FOR CREDIT LOSSES, CQR (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Mar. 31, 2016 |
---|---|---|
Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | $ 617 | $ 973 |
Current | 180 | 1,143 |
Unbilled Minimum Lease Payments | 70,546 | 64,187 |
Total Minimum Lease Payments | 71,343 | 66,303 |
Unearned income | (5,152) | (4,111) |
Non-Recourse Notes Payable | (34,216) | (31,628) |
Net Credit Exposure | 31,975 | 30,564 |
Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 5,826 | 5,974 |
Current | 2,164 | 503 |
Unbilled Minimum Lease Payments | 45,177 | 37,965 |
Total Minimum Lease Payments | 53,167 | 44,442 |
Non-Recourse Notes Payable | (27,970) | (21,586) |
Net Credit Exposure | $ 25,197 | 22,856 |
High CQR [Member] | Minimum [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Losses on net credit exposure | 0.00% | |
High CQR [Member] | Maximum [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Losses on net credit exposure | 5.00% | |
High CQR [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | $ 310 | 721 |
Current | 137 | 984 |
Unbilled Minimum Lease Payments | 45,570 | 46,157 |
Total Minimum Lease Payments | 46,017 | 47,862 |
Unearned income | (3,466) | (2,705) |
Non-Recourse Notes Payable | (21,532) | (22,914) |
Net Credit Exposure | 21,019 | 22,243 |
High CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 2,508 | 2,872 |
Current | 1,244 | 301 |
Unbilled Minimum Lease Payments | 28,206 | 24,092 |
Total Minimum Lease Payments | 31,958 | 27,265 |
Non-Recourse Notes Payable | (15,330) | (11,644) |
Net Credit Exposure | $ 16,628 | 15,621 |
Average CQR [Member] | Minimum [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Losses on net credit exposure | 2.00% | |
Average CQR [Member] | Maximum [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Losses on net credit exposure | 15.00% | |
Average CQR [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | $ 165 | 110 |
Current | 43 | 159 |
Unbilled Minimum Lease Payments | 24,976 | 18,030 |
Total Minimum Lease Payments | 25,184 | 18,299 |
Unearned income | (1,667) | (1,387) |
Non-Recourse Notes Payable | (12,684) | (8,714) |
Net Credit Exposure | 10,833 | 8,198 |
Average CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 167 | 0 |
Current | 920 | 202 |
Unbilled Minimum Lease Payments | 16,971 | 13,873 |
Total Minimum Lease Payments | 18,058 | 14,075 |
Non-Recourse Notes Payable | (12,640) | (9,942) |
Net Credit Exposure | $ 5,418 | 4,133 |
Low CQR [Member] | Minimum [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Losses on net credit exposure | 15.00% | |
Low CQR [Member] | Maximum [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Losses on net credit exposure | 100.00% | |
Low CQR [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | $ 142 | 142 |
Current | 0 | 0 |
Unbilled Minimum Lease Payments | 0 | 0 |
Total Minimum Lease Payments | 142 | 142 |
Unearned income | (19) | (19) |
Non-Recourse Notes Payable | 0 | 0 |
Net Credit Exposure | 123 | 123 |
Low CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 3,151 | 3,102 |
Current | 0 | 0 |
Unbilled Minimum Lease Payments | 0 | 0 |
Total Minimum Lease Payments | 3,151 | 3,102 |
Non-Recourse Notes Payable | 0 | 0 |
Net Credit Exposure | 3,151 | 3,102 |
31 to 60 Days Past Due [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 207 | 590 |
31 to 60 Days Past Due [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 1,526 | 399 |
31 to 60 Days Past Due [Member] | High CQR [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 163 | 575 |
31 to 60 Days Past Due [Member] | High CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 1,369 | 399 |
31 to 60 Days Past Due [Member] | Average CQR [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 44 | 15 |
31 to 60 Days Past Due [Member] | Average CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 157 | 0 |
31 to 60 Days Past Due [Member] | Low CQR [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 0 | 0 |
31 to 60 Days Past Due [Member] | Low CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 0 | 0 |
61 to 90 Days Past Due [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 74 | 69 |
61 to 90 Days Past Due [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 322 | 305 |
61 to 90 Days Past Due [Member] | High CQR [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 49 | 52 |
61 to 90 Days Past Due [Member] | High CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 312 | 305 |
61 to 90 Days Past Due [Member] | Average CQR [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 25 | 17 |
61 to 90 Days Past Due [Member] | Average CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 10 | 0 |
61 to 90 Days Past Due [Member] | Low CQR [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 0 | 0 |
61 to 90 Days Past Due [Member] | Low CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 0 | 0 |
Greater than 90 Days Past Due [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 336 | 314 |
Greater than 90 Days Past Due [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 3,978 | 5,270 |
Greater than 90 Days Past Due [Member] | High CQR [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 98 | 94 |
Greater than 90 Days Past Due [Member] | High CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 827 | 2,168 |
Greater than 90 Days Past Due [Member] | Average CQR [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 96 | 78 |
Greater than 90 Days Past Due [Member] | Average CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 0 | 0 |
Greater than 90 Days Past Due [Member] | Low CQR [Member] | Investment in Direct Financing and Sales-type Leases that are Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 142 | 142 |
Greater than 90 Days Past Due [Member] | Low CQR [Member] | Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | $ 3,151 | $ 3,102 |
PROPERTY, EQUIPMENT, OTHER ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Mar. 31, 2016 |
---|---|---|
Other current assets [Abstract] | ||
Deposits & funds held in escrow | $ 485 | $ 3,116 |
Prepaid assets | 2,773 | 6,683 |
Other | 777 | 850 |
Total other current assets | 4,035 | 10,649 |
Other assets [Abstract] | ||
Deferred costs | 2,979 | 1,831 |
Property and equipment, net | 6,945 | 6,266 |
Other | 1,780 | 547 |
Total other assets - long term | 11,704 | 8,644 |
Other current liabilities [Abstract] | ||
Accrued expenses | 6,969 | 7,109 |
Accrued income taxes payable | 1,093 | 0 |
Other | 7,780 | 6,009 |
Total other current liabilities | 15,842 | 13,118 |
Other liabilities [Abstract] | ||
Deferred revenue | 3,599 | 1,866 |
Other | 2,876 | 397 |
Total other liabilities - long term | $ 6,475 | $ 2,263 |
NOTES PAYABLE AND CREDIT FACILITY (Details) $ in Thousands |
9 Months Ended | |
---|---|---|
Dec. 31, 2016
USD ($)
Component
|
Mar. 31, 2016
USD ($)
|
|
Recourse Notes Payable [Abstract] | ||
Current | $ 1,605 | $ 2,288 |
Long-term | 0 | 1,054 |
Non-recourse Notes Payable Secured by Financing Receivables and Investments in Operating Leases [Abstract] | ||
Current | 41,785 | 26,042 |
Long-term | 10,608 | 18,038 |
Guarantor obligations for credit facility, maximum | $ 1,200 | |
WFCDF [Member] | ||
Non-recourse Notes Payable Secured by Financing Receivables and Investments in Operating Leases [Abstract] | ||
Number of components under credit facility | Component | 2 | |
Maximum amount can be borrowed under credit facility | $ 250,000 | |
Period of notice required to terminate credit facility at year end | 90 days | |
Period of filing of financial statements for each quarter end | 45 days | |
Guarantor obligations for credit facility, maximum | $ 10,500 | |
WFCDF [Member] | One Month LIBOR [Member] | ||
Non-recourse Notes Payable Secured by Financing Receivables and Investments in Operating Leases [Abstract] | ||
Basis spread on reference rate | 2.50% | |
Account Receivable Component [Member] | WFCDF [Member] | ||
Non-recourse Notes Payable Secured by Financing Receivables and Investments in Operating Leases [Abstract] | ||
Amount outstanding under credit facility | $ 0 | 0 |
Maximum amount can be borrowed under credit facility | 30,000 | |
Floor Plan Component [Member] | WFCDF [Member] | ||
Non-recourse Notes Payable Secured by Financing Receivables and Investments in Operating Leases [Abstract] | ||
Amount outstanding under credit facility | 120,900 | 121,900 |
Recourse Note Payable [Member] | ||
Recourse Notes Payable [Abstract] | ||
Current | 1,605 | 2,288 |
Long-term | 0 | 1,054 |
Total recourse notes payable | $ 1,605 | $ 3,342 |
Non-recourse Notes Payable Secured by Financing Receivables and Investments in Operating Leases [Abstract] | ||
Weighted average interest rate of notes | 3.24% | 3.24% |
Recourse Note Payable [Member] | Minimum [Member] | ||
Non-recourse Notes Payable Secured by Financing Receivables and Investments in Operating Leases [Abstract] | ||
Interest rate of notes | 2.75% | 2.70% |
Recourse Note Payable [Member] | Maximum [Member] | ||
Non-recourse Notes Payable Secured by Financing Receivables and Investments in Operating Leases [Abstract] | ||
Interest rate of notes | 4.13% | 4.13% |
Non-Recourse Note Payable [Member] | ||
Non-recourse Notes Payable Secured by Financing Receivables and Investments in Operating Leases [Abstract] | ||
Current | $ 41,785 | $ 26,042 |
Long-term | 10,608 | 18,038 |
Total non-recourse notes payable | $ 52,393 | $ 44,080 |
Weighted average interest rate of notes | 3.38% | 3.13% |
Non-Recourse Note Payable [Member] | Minimum [Member] | ||
Non-recourse Notes Payable Secured by Financing Receivables and Investments in Operating Leases [Abstract] | ||
Interest rate of notes | 2.00% | 1.70% |
Non-Recourse Note Payable [Member] | Maximum [Member] | ||
Non-recourse Notes Payable Secured by Financing Receivables and Investments in Operating Leases [Abstract] | ||
Interest rate of notes | 7.50% | 8.50% |
COMMITMENTS AND CONTINGENCIES (Details) |
9 Months Ended |
---|---|
Dec. 31, 2016
USD ($)
| |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
Claim settlement received | $ 380,000 |
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Earnings Per Share, Basic and Diluted [Abstract] | ||||
Net earnings attributable to common shareholders - basic and diluted | $ 12,620 | $ 10,297 | $ 40,066 | $ 34,790 |
Basic and diluted common shares outstanding [Abstract] | ||||
Weighted average common shares outstanding-basic (in shares) | 6,896 | 7,280 | 6,946 | 7,260 |
Effect of dilutive shares (in shares) | 64 | 49 | 67 | 76 |
Weighted average shares common outstanding-diluted (in shares) | 6,960 | 7,329 | 7,013 | 7,336 |
Earnings per common share - basic (in dollars per share) | $ 1.83 | $ 1.41 | $ 5.77 | $ 4.79 |
Earnings per common share - diluted (in dollars per share) | 1.81 | 1.40 | 5.71 | 4.74 |
Earnings Per Share, Pro Forma [Abstract] | ||||
Basic - pro forma | 0.92 | 0.71 | 2.88 | 2.40 |
Diluted - pro forma | $ 0.91 | $ 0.70 | $ 2.86 | $ 2.37 |
Weighted Average Common Shares Outstanding - Pro Forma: | ||||
Basic - pro forma | 13,791 | 14,561 | 13,891 | 14,519 |
Diluted - pro forma | 13,920 | 14,659 | 14,026 | 14,672 |
STOCKHOLDERS' EQUITY (Details) - USD ($) $ / shares in Units, $ in Millions |
9 Months Ended | 180 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2016 |
Aug. 18, 2016 |
|
STOCKHOLDERS' EQUITY [Abstract] | ||||
Authorized number of shares under stock repurchase program (in shares) | 500,000 | |||
Common stock repurchased during the period (in shares) | 328,481 | 6,000,000 | ||
Average cost of share repurchased (in dollars per share) | $ 81.62 | $ 24.44 | ||
Common stock repurchased during the period | $ 26.8 | $ 147.3 | ||
Shares repurchased to satisfy tax withholding obligation (in shares) | 29,736 | 30,447 | ||
Value of Shares repurchased to satisfy tax withholding obligation | $ 2.6 | $ 2.5 |
SHARE-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Additional Disclosures [Abstract] | ||||
Vested share-based awards withheld to satisfy income tax obligations (in shares) | 29,736 | 30,447 | ||
Vested share-based awards withheld to satisfy income tax obligations | $ 2,600 | $ 2,500 | ||
Compensation Expense [Abstract] | ||||
Share-based compensation expense | $ 1,500 | $ 1,500 | $ 4,520 | 4,210 |
401 (k) Profit Sharing Plan [Abstract] | ||||
Period over which employer contribution is vested | 4 years | |||
Contribution to profit sharing plan | $ 500 | $ 400 | $ 1,200 | $ 1,100 |
Restricted Stock [Member] | ||||
Number of Shares [Rollforward] | ||||
Nonvested at beginning of period (in shares) | 203,828 | |||
Granted (in shares) | 72,961 | |||
Vested (in shares) | (90,356) | |||
Forfeited (in shares) | (349) | |||
Nonvested at end of period (in shares) | 186,084 | 186,084 | ||
Weighted Average Grant-date Fair Value [Rollforward] | ||||
Nonvested at beginning of period(in dollars per share) | $ 72.33 | |||
Granted (in dollars per share) | 86.24 | |||
Vested (in dollars per share) | 65.99 | |||
Forfeited (in dollars per share) | 76.87 | |||
Nonvested at end of period (in dollars per share) | $ 80.86 | $ 80.86 | ||
Compensation Expense [Abstract] | ||||
Unrecognized compensation expense | $ 11,800 | $ 11,800 | ||
Unrecognized compensation expense, period for recognition | 42 months | |||
2008 Director LTIP [Member] | Restricted Stock [Member] | ||||
Number of Shares [Rollforward] | ||||
Granted (in shares) | 5,692 | 6,383 | ||
2012 Employee LTIP [Member] | Restricted Stock [Member] | ||||
Number of Shares [Rollforward] | ||||
Granted (in shares) | 67,269 | 118,974 | ||
Additional Disclosures [Abstract] | ||||
Vested share-based awards withheld to satisfy income tax obligations (in shares) | 29,736 | |||
Vested share-based awards withheld to satisfy income tax obligations | $ 2,600 |
INCOME TAXES (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
INCOME TAXES [Abstract] | ||||
Gross liability related to uncertain tax positions | $ 72 | $ 72 | ||
Impact of recognizing the unrecognized tax benefit | 106 | 106 | ||
Accrued interest on income taxes | 51 | $ 47 | 51 | $ 47 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Excess tax benefits and deficiencies | 8,687 | $ 7,348 | 27,310 | $ 24,582 |
New Accounting Pronouncement, Early Adoption, Effect [Member] | Restatement Adjustment [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Excess tax benefits and deficiencies | $ (500) | $ (500) |
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Mar. 31, 2016 |
|
Assets [Abstract] | |||||
Money market funds | $ 29,851 | $ 29,851 | $ 39,509 | ||
Liabilities [Abstract] | |||||
Contingent consideration | 554 | 554 | 1,041 | ||
Adjustment to fair value of contingent consideration | 0 | $ 3 | 232 | $ 318 | |
Payments of contingent consideration | 700 | $ 1,200 | 700 | $ 1,200 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||||
Assets [Abstract] | |||||
Money market funds | 29,851 | 29,851 | 39,509 | ||
Liabilities [Abstract] | |||||
Contingent consideration | 0 | 0 | 0 | ||
Significant Other Observable Inputs (Level 2) [Member] | |||||
Assets [Abstract] | |||||
Money market funds | 0 | 0 | 0 | ||
Liabilities [Abstract] | |||||
Contingent consideration | 0 | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) [Member] | |||||
Assets [Abstract] | |||||
Money market funds | 0 | 0 | 0 | ||
Liabilities [Abstract] | |||||
Contingent consideration | $ 554 | $ 554 | $ 1,041 |
SEGMENT REPORTING (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2016
USD ($)
Segment
|
Dec. 31, 2015
USD ($)
|
Mar. 31, 2016
USD ($)
|
|
SEGMENT REPORTING [Abstract] | |||||
Number of business segments | Segment | 2 | ||||
Segment Reporting Information [Line Items] | |||||
Sales of product and services | $ 317,391 | $ 287,859 | $ 968,799 | $ 871,814 | |
Financing revenue | 8,190 | 9,289 | 23,899 | 27,914 | |
Fee and other income | 1,076 | 1,496 | 3,924 | 5,068 | |
Net sales | 326,657 | 298,644 | 996,622 | 904,796 | |
Cost of sales, product and services | 251,729 | 231,503 | 769,780 | 700,429 | |
Direct lease costs | 1,142 | 3,081 | 3,459 | 9,256 | |
Cost of sales | 252,871 | 234,584 | 773,239 | 709,685 | |
Professional and other fees | 1,397 | 1,882 | 4,918 | 4,913 | |
Salaries and benefits | 42,385 | 37,372 | 124,479 | 108,326 | |
General and administrative expenses | 6,378 | 5,434 | 20,424 | 17,390 | |
Depreciation and amortization | 1,910 | 1,331 | 5,408 | 3,739 | |
Interest and financing costs | 409 | 396 | 1,158 | 1,371 | |
Operating expenses | 52,479 | 46,415 | 156,387 | 135,739 | |
Operating income | 21,307 | 17,645 | 66,996 | 59,372 | |
Selected Financial Data - Statement of Cash Flow [Abstract] | |||||
Depreciation and amortization | 2,926 | 4,517 | 8,758 | 13,020 | |
Purchases of property, equipment and operating lease equipment | 4,131 | 1,390 | 7,300 | 17,008 | |
Selected Financial Data - Balance Sheet [Abstract] | |||||
Total assets | 736,678 | 630,434 | 736,678 | 630,434 | $ 616,680 |
Operating Segments [Member] | Technology [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales of product and services | 317,391 | 287,859 | 968,799 | 871,814 | |
Financing revenue | 0 | 0 | 0 | 0 | |
Fee and other income | 915 | 1,506 | 3,679 | 5,038 | |
Net sales | 318,306 | 289,365 | 972,478 | 876,852 | |
Cost of sales, product and services | 251,729 | 231,503 | 769,780 | 700,429 | |
Direct lease costs | 0 | 0 | 0 | 0 | |
Cost of sales | 251,729 | 231,503 | 769,780 | 700,429 | |
Professional and other fees | 1,216 | 1,608 | 4,138 | 4,175 | |
Salaries and benefits | 40,155 | 35,043 | 117,822 | 101,471 | |
General and administrative expenses | 6,409 | 5,203 | 19,335 | 16,653 | |
Depreciation and amortization | 1,908 | 1,327 | 5,400 | 3,728 | |
Interest and financing costs | 0 | 10 | 0 | 51 | |
Operating expenses | 49,688 | 43,191 | 146,695 | 126,078 | |
Operating income | 16,889 | 14,671 | 56,003 | 50,345 | |
Selected Financial Data - Statement of Cash Flow [Abstract] | |||||
Depreciation and amortization | 1,941 | 1,365 | 5,494 | 3,831 | |
Purchases of property, equipment and operating lease equipment | 849 | 506 | 2,413 | 1,700 | |
Selected Financial Data - Balance Sheet [Abstract] | |||||
Total assets | 546,728 | 401,422 | 546,728 | 401,422 | |
Operating Segments [Member] | Financing [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales of product and services | 0 | 0 | 0 | 0 | |
Financing revenue | 8,190 | 9,289 | 23,899 | 27,914 | |
Fee and other income | 161 | (10) | 245 | 30 | |
Net sales | 8,351 | 9,279 | 24,144 | 27,944 | |
Cost of sales, product and services | 0 | 0 | 0 | 0 | |
Direct lease costs | 1,142 | 3,081 | 3,459 | 9,256 | |
Cost of sales | 1,142 | 3,081 | 3,459 | 9,256 | |
Professional and other fees | 181 | 274 | 780 | 738 | |
Salaries and benefits | 2,230 | 2,329 | 6,657 | 6,855 | |
General and administrative expenses | (31) | 231 | 1,089 | 737 | |
Depreciation and amortization | 2 | 4 | 8 | 11 | |
Interest and financing costs | 409 | 386 | 1,158 | 1,320 | |
Operating expenses | 2,791 | 3,224 | 9,692 | 9,661 | |
Operating income | 4,418 | 2,974 | 10,993 | 9,027 | |
Selected Financial Data - Statement of Cash Flow [Abstract] | |||||
Depreciation and amortization | 985 | 3,152 | 3,264 | 9,189 | |
Purchases of property, equipment and operating lease equipment | 3,282 | 884 | 4,887 | 15,308 | |
Selected Financial Data - Balance Sheet [Abstract] | |||||
Total assets | $ 189,950 | $ 229,012 | $ 189,950 | $ 229,012 |
BUSINESS COMBINATIONS (Details) - USD ($) $ in Thousands |
9 Months Ended | |||
---|---|---|---|---|
Dec. 06, 2016 |
Dec. 04, 2015 |
Dec. 31, 2016 |
Mar. 31, 2016 |
|
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed [Abstract] | ||||
Goodwill | $ 49,472 | $ 42,151 | ||
IGX Acquisition [Member] | ||||
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed [Abstract] | ||||
Accounts receivable - trade, net | $ 8,457 | |||
Property and equipment | 81 | |||
Identified intangible assets | 8,710 | |||
Accounts payable and other current liabilities | (8,641) | |||
Deferred tax liability | (89) | |||
Total identifiable net assets | 8,518 | |||
Goodwill | 8,131 | |||
Total purchase consideration | 16,649 | |||
Schedule of Identified Intangible Assets [Abstract] | ||||
Goodwill expected to be deductible for tax purpose | 5,800 | |||
IGX Acquisition [Member] | Customer Relationships [Member] | ||||
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed [Abstract] | ||||
Identified intangible assets | $ 7,680 | |||
Schedule of Identified Intangible Assets [Abstract] | ||||
Estimated useful lives | 7 years | |||
IGX Acquisition [Member] | Trade Names [Member] | ||||
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed [Abstract] | ||||
Identified intangible assets | $ 520 | |||
Schedule of Identified Intangible Assets [Abstract] | ||||
Estimated useful lives | 10 years | |||
IGX Acquisition [Member] | Backlog [Member] | ||||
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed [Abstract] | ||||
Identified intangible assets | $ 510 | |||
Schedule of Identified Intangible Assets [Abstract] | ||||
Estimated useful lives | 1 year | |||
Consolidated IT Services [Member] | ||||
Allocation of Purchase Price Consideration to Assets Acquired and Liabilities Assumed [Abstract] | ||||
Accounts receivable - trade, net | $ 7,501 | |||
Property and equipment | 1,045 | |||
Identified intangible assets | 3,340 | |||
Accounts payable and other current liabilities | (6,411) | |||
Total identifiable net assets | 5,475 | |||
Goodwill | 7,614 | |||
Total purchase consideration | 13,089 | |||
Schedule of Identified Intangible Assets [Abstract] | ||||
Cash portion of the acquisition | $ 9,500 | $ 4,000 | ||
Contingent consideration payout period | 2 years | |||
Contingent consideration cash periodic payment | $ 400 |
JK MG&:'*G,H.,DK[S+P-ZG\4W^PJ=I_\9M*[0C
M%^/Q96/_&V,\8"K)#8Y0AQ]L,20T/ASO\&RG,9L,;_KY!['E&Y=_ %!+ P04
M " !MD$)*XQBQWK,! #2 P &0 'AL+W=O AT$
MH,1VE@T7<@.[$>IXP\77)G1&&G'-C>F,-+#JAZP5$T#1:2*.F>: .A!F$7+$
MZ.8FZ(.>\,@@8Q3"&VIH:E*)02"AX1#;G+/UW._5V2#$[.;BE,00CYI#*[--
MC%UT3ZT+;YD9O?L01QQJSA9U9$U3<<15YLJ4Q! ?F$-ZWR;F8\%_'J."(1XP
M9PL[TDG'+*PRP08FU':*FHPF+6+;AR8M9S$J&%+58JLZ"K/7,0NK3#CA%&8\
M1 N%^@C),
M4 :X%W./"A"?>
M'3CVI@S.V(IXA^(=>B\%3ZXS=@E$<\QQBN&KF-T2P9!]2<&W4ASY/W"^#=]O
M*MQ'^/X/A3?;!.DF01H)TO^6N!5S^U<2MNJI MO$:7*D-(..D[SR+@-[S^.;
M_ Z?IOU1V*;3CIR-QY>-_:^-\8!2DBL
"
MBR/4,+>/+W0(:BXUN,[!1X0.,*4+:R]$\70V-;C: 2)WC/IT$"G+I)_!#09S
M-]+,Y0JXY &B>;,%C(L>A*K'? 6'4-%HE@?%A^G>K-C@P@>A\B$''JH:D8+[
M=$(4S6?$AN#21T+I8[[$KB?0;6?!F?"%&$$1POU+/[EI[OIN^X=J#T7=1<_&
MNCYQZ.;VQECM/*9W+K*C:_"ODU+O;3\4;MR.7>XXL::9.OCD^C=B]0]02P,$
M% @ ;9!"2@IGJ0Q ! O!8 !D !X;"]W;W)K