Note 8 - Income Taxes

9 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Income Tax Disclosure [Text Block]

Note 8: Income Taxes

For the quarters ended December 31, 2020 and 2019, the Company recorded an income tax provision of approximately $2.1 million and $1.8 million, respectively, and for the nine months ended December 31, 2020 and 2019, the Company recorded an income tax provision of approximately $6.6 million and $5.9 million, respectively. The increase in the income tax provision for the three and nine months ended December 31, 2020 is related to an increase in operating income for both periods compared to the same periods in the prior year. The effective tax rate for the quarter ended December 31, 2020 was approximately 21.6% compared to 21.0% for the quarter ended December 31, 2019, and the effective tax rate for the nine months ended December 31, 2020 was approximately 21.7%, compared to 23.9% for the nine months ended December 31, 2019. The increase to the effective rate for the quarter ended December 31, 2020 was due to a one-time income tax benefit of $194,000 related to the reconciliation of the Company’s tax return for the fiscal year ending March 31, 2020, with the Company receiving a larger one-time income tax benefit in the prior year due to a reduction in the Florida state corporate income tax rate along with receiving a one-time income tax benefit of $93,000 related to the reconciliation of the Company’s tax return for the fiscal year ending March 31, 2019. The decrease to the effective rate for the nine months ended December 31, 2020 can be attributed to the Company receiving a one-time state income tax refund of $285,000 in the June 2020 quarter and a $106,000 income tax benefit related to restricted stock compensation in the September 2020 quarter, compared to a $322,000 income tax charge related to restricted stock compensation, which was recognized in the September 2019 quarter.