ý | 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 |
Indiana | 47-4850538 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
4151 East 96th Street Indianapolis, IN | 46240 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | ¨ | Accelerated Filer | ý | |
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | ¨ |
Page | ||
Part I. Financial Information | ||
Item 1. | Condensed Consolidated Financial Statements (unaudited): | |
Condensed Consolidated Statements of Operations for the Three Months Ended June 30, 2016 and 2015 | ||
Condensed Consolidated Balance Sheets as of June 30, 2016 and March 31, 2016 | ||
Condensed Consolidated Statements of Cash Flows for the Three Months Ended June 30, 2016 and 2015 | ||
Condensed Consolidated Statement of Stockholders’ Equity for the Three Months Ended June 30, 2016 | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Part II. Other Information | ||
Item 1. | ||
Item 1A. | ||
Item 6. | ||
Part I. | Financial Information |
ITEM 1. | Condensed Consolidated Financial Statements |
Three Months Ended | |||||||
June 30, 2016 | June 30, 2015 | ||||||
(In thousands, except share and per share data) | |||||||
Net sales | $ | 423,572 | $ | 441,063 | |||
Cost of goods sold | 292,063 | 306,706 | |||||
Gross profit | 131,509 | 134,357 | |||||
Selling, general and administrative expenses | 108,109 | 111,104 | |||||
Net advertising expense | 22,869 | 23,054 | |||||
Depreciation and amortization expense | 6,978 | 8,369 | |||||
Loss from operations | (6,447 | ) | (8,170 | ) | |||
Other expense (income): | |||||||
Interest expense | 785 | 590 | |||||
Interest income | (5 | ) | (5 | ) | |||
Total other expense | 780 | 585 | |||||
Loss before income taxes | (7,227 | ) | (8,755 | ) | |||
Income taxes | — | — | |||||
Net loss | $ | (7,227 | ) | $ | (8,755 | ) | |
Net loss per share | |||||||
Basic and diluted | $ | (0.26 | ) | $ | (0.32 | ) | |
Weighted average shares outstanding-basic and diluted | 27,741,261 | 27,680,209 |
June 30, 2016 | March 31, 2016 | ||||||
(In thousands, except share data) | |||||||
Assets | |||||||
Current assets: | |||||||
Cash | $ | 1,214 | $ | 3,703 | |||
Accounts receivable—trade, less allowances of $3 and $5 as of June 30, 2016 and March 31, 2016, respectively | 17,131 | 11,106 | |||||
Accounts receivable—other | 18,672 | 14,937 | |||||
Merchandise inventories, net | 292,025 | 256,559 | |||||
Prepaid expenses and other current assets | 10,021 | 6,333 | |||||
Income tax receivable | 1,107 | 1,130 | |||||
Total current assets | 340,170 | 293,768 | |||||
Net property and equipment | 85,236 | 87,472 | |||||
Deferred financing costs, net | 2,432 | 1,257 | |||||
Other assets | 3,239 | 2,855 | |||||
Total long-term assets | 90,907 | 91,584 | |||||
Total assets | $ | 431,077 | $ | 385,352 | |||
Liabilities and Stockholders’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 145,383 | $ | 107,474 | |||
Line of credit | — | — | |||||
Customer deposits | 54,682 | 43,235 | |||||
Accrued liabilities | 49,466 | 43,370 | |||||
Total current liabilities | 249,531 | 194,079 | |||||
Long-term liabilities: | |||||||
Deferred rent | 56,598 | 59,101 | |||||
Other long-term liabilities | 10,381 | 10,818 | |||||
Total long-term liabilities | 66,979 | 69,919 | |||||
Total liabilities | 316,510 | 263,998 | |||||
Stockholders’ equity: | |||||||
Preferred stock, par value $.0001; 10,000,000 shares authorized; no shares issued and outstanding as of June 30, 2016 and March 31, 2016, respectively | — | — | |||||
Common stock, par value $.0001; 150,000,000 shares authorized; 41,291,415 and 41,204,660 shares issued; and 27,794,733 and 27,707,978 outstanding as of June 30, 2016 and March 31, 2016, respectively | 4 | 4 | |||||
Additional paid-in capital | 304,765 | 304,325 | |||||
Accumulated deficit | (39,974 | ) | (32,747 | ) | |||
Common stock held in treasury at cost 13,496,682, shares as of June 30, 2016 and March 31, 2016 | (150,228 | ) | (150,228 | ) | |||
Total stockholders’ equity | 114,567 | 121,354 | |||||
Total liabilities and stockholders’ equity | $ | 431,077 | $ | 385,352 |
Three Months Ended | |||||||
June 30, 2016 | June 30, 2015 | ||||||
(In thousands) | |||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (7,227 | ) | $ | (8,755 | ) | |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||
Depreciation and amortization | 6,978 | 8,369 | |||||
Amortization of deferred financing costs | 135 | 135 | |||||
Stock-based compensation | 440 | 898 | |||||
Loss on early extinguishment of debt | 126 | — | |||||
Gain on sales of property and equipment | (63 | ) | (78 | ) | |||
Tenant allowances received from landlords | — | 580 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable—trade | (6,025 | ) | (5,277 | ) | |||
Accounts receivable—other | (3,735 | ) | 46 | ||||
Merchandise inventories | (35,466 | ) | (67,082 | ) | |||
Income tax receivable | 23 | (19 | ) | ||||
Prepaid expenses and other assets | (4,004 | ) | (3,645 | ) | |||
Accounts payable | 44,905 | 55,081 | |||||
Customer deposits | 11,447 | 995 | |||||
Accrued liabilities | 6,096 | 5,438 | |||||
Deferred rent | (2,503 | ) | (1,848 | ) | |||
Other long-term liabilities | (370 | ) | (1,072 | ) | |||
Net cash provided by (used in) operating activities | 10,757 | (16,234 | ) | ||||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (3,910 | ) | (4,304 | ) | |||
Proceeds from sales of property and equipment | 4 | 11 | |||||
Purchases of corporate-owned life insurance | (68 | ) | (73 | ) | |||
Net cash used in investing activities | (3,974 | ) | (4,366 | ) | |||
Cash flows from financing activities: | |||||||
Net repayments on inventory financing facility | (7,836 | ) | (59 | ) | |||
Payment of financing costs | (1,436 | ) | — | ||||
Net cash used in financing activities | (9,272 | ) | (59 | ) | |||
Net decrease in cash and cash equivalents | (2,489 | ) | (20,659 | ) | |||
Cash and cash equivalents | |||||||
Beginning of period | 3,703 | 30,401 | |||||
End of period | $ | 1,214 | $ | 9,742 | |||
Supplemental disclosure of cash flow information: | |||||||
Interest paid | $ | 647 | $ | 459 | |||
Income taxes (received) paid | $ | (23 | ) | $ | 19 | ||
Capital expenditures included in accounts payable | $ | 2,105 | $ | 1,352 |
Common Shares Outstanding | Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Common Stock Held in Treasury | Total Stockholders’ Equity | ||||||||||||||||||||
Balance at March 31, 2016 | 27,707,978 | $ | — | $ | 4 | $ | 304,325 | $ | (32,747 | ) | $ | (150,228 | ) | $ | 121,354 | |||||||||||
Net loss | — | — | — | — | (7,227 | ) | — | (7,227 | ) | |||||||||||||||||
Vesting of RSUs, net of tax withholdings | 86,755 | — | — | — | — | — | — | |||||||||||||||||||
Stock compensation expense | — | — | — | 440 | — | — | 440 | |||||||||||||||||||
Balance at June 30, 2016 | 27,794,733 | $ | — | $ | 4 | $ | 304,765 | $ | (39,974 | ) | $ | (150,228 | ) | $ | 114,567 |
(1) | Summary of Significant Accounting Policies |
(2) | Fair Value Measurements |
(3) | Property and Equipment |
June 30, 2016 | March 31, 2016 | ||||||
Machinery and equipment | $ | 23,697 | $ | 23,700 | |||
Store fixtures and furniture | 150,950 | 150,390 | |||||
Vehicles | 1,789 | 1,757 | |||||
Signs | 11,942 | 11,959 | |||||
Leasehold improvements | 104,234 | 103,908 | |||||
Construction in progress | 3,071 | 1,792 | |||||
295,683 | 293,506 | ||||||
Less accumulated depreciation and amortization | (210,447 | ) | (206,034 | ) | |||
Net property and equipment | $ | 85,236 | $ | 87,472 |
(4) | Net Loss per Share |
Three Months Ended | |||||||
June 30, 2016 | June 30, 2015 | ||||||
Net loss (A) | $ | (7,227 | ) | $ | (8,755 | ) | |
Weighted average outstanding shares of common stock (B) | 27,741,261 | 27,680,209 | |||||
Common stock and potential dilutive common shares (C) | 27,741,261 | 27,680,209 | |||||
Net loss per share: | |||||||
Basic (A/B) | $ | (0.26 | ) | $ | (0.32 | ) | |
Diluted (A/C) | $ | (0.26 | ) | $ | (0.32 | ) |
(5) | Inventories |
June 30, 2016 | March 31, 2016 | ||||||
Appliances | $ | 157,013 | $ | 126,025 | |||
Consumer electronics | 114,488 | 109,418 | |||||
Home products | 20,524 | 21,116 | |||||
Net merchandise inventory | $ | 292,025 | $ | 256,559 |
(6) | Debt |
June 30, 2016 | March 31, 2016 | ||||||
Line of credit | $ | — | $ | — |
(7) | Stock-based Compensation |
Number of Options Outstanding | Weighted Average Exercise Price per Share | |||||
Outstanding at March 31, 2016 | 2,827,168 | $ | 11.86 | |||
Granted | — | — | ||||
Exercised | — | — | ||||
Forfeited | (38,720 | ) | 7.12 | |||
Expired | (814,633 | ) | 13.20 | |||
Outstanding at June 30, 2016 | 1,973,815 | $ | 11.40 |
Shares | Weighted Average Grant-Date Fair Value | |||||
Nonvested at March 31, 2016 | 370,383 | $ | 4.83 | |||
Granted | 877,832 | 1.62 | ||||
Vested | (107,138 | ) | 5.53 | |||
Forfeited | (44,254 | ) | 2.36 | |||
Nonvested at June 30, 2016 | 1,096,823 | $ | 2.29 |
(8) | Contingencies |
ITEM 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
• | Overview |
• | Critical Accounting Polices |
• | Results of Operations |
• | Liquidity and Capital Resources |
• | Contractual Obligations |
• | Growth in real disposable personal income is projected to moderate to 2.9% in 2016 as compared with 3.4% growth in 2015, based on the March 2016 Blue Chip Economic Indicators®. * |
• | The average unemployment rate for 2016 is forecasted to decline to 4.7%, according to the March 2016 Blue Chip Economic Indicators, which would be an improvement from the 5.3% average in 2015. The unemployment rate should continue to trend lower as the job market continues to expand at a moderate pace. |
• | Evidence suggests that home prices will continue to increase. In 2015, home price appreciation increased 5.7% which was consistent with the 2014 increase, according to the Federal Housing Finance Agency index. Economists generally expect the rate of home price growth to moderate to 5% in 2016. |
• | Housing turnover increased an estimated 7.4% in 2015 after a 2.6% decrease in 2014, according to The National Association of Realtors and U.S. Census Bureau. |
Three Months Ended | |||||||
June 30, | |||||||
(unaudited) | 2016 | 2015 | |||||
Net sales | $ | 423,572 | $ | 441,063 | |||
Net sales % decrease | (4.0 | )% | (6.6 | )% | |||
Comparable store sales % decrease (1) | (3.9 | )% | (6.3 | )% | |||
Gross profit as a % of net sales | 31.0 | % | 30.5 | % | |||
SG&A as a % of net sales | 25.5 | % | 25.2 | % | |||
Net advertising expense as a % of net sales | 5.4 | % | 5.2 | % | |||
Depreciation and amortization expense as a % of net sales | 1.6 | % | 1.9 | % | |||
Loss from operations as a % of net sales | (1.5 | )% | (1.9 | )% | |||
Net interest expense as a % of net sales | 0.2 | % | 0.1 | % | |||
Net loss | $ | (7,227 | ) | $ | (8,755 | ) | |
Net loss per diluted share | $ | (0.26 | ) | $ | (0.32 | ) | |
Weighted average shares outstanding—diluted | 27,741,261 | 27,680,209 | |||||
Number of stores open at the end of period | 226 | 227 |
(1) | Comprised of net sales at stores in operation for at least 14 full months, including remodeled and relocated stores, as well as net sales for our e-commerce site. |
Net Sales Mix Summary | Comparable Store Sales Summary | ||||||||||
Three Months Ended June 30, | Three Months Ended June 30, | ||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||
Appliances | 64 | % | 59 | % | 3.7 | % | (2.2 | )% | |||
Consumer electronics (1) | 30 | % | 35 | % | (17.4 | )% | (14.8 | )% | |||
Home products (2) | 6 | % | 6 | % | 0.3 | % | 12.1 | % | |||
Total | 100 | % | 100 | % | (3.9 | )% | (6.3 | )% |
(1) | Primarily consists of televisions, audio, personal electronics, computers and tablets, and accessories. |
(2) | Primarily consists of furniture and mattresses. |
Three Months Ended | |||||||
June 30, 2016 | June 30, 2015 | ||||||
Net cash provided by (used in) operating activities | $ | 10,757 | $ | (16,234 | ) | ||
Net cash used in investing activities | (3,974 | ) | (4,366 | ) | |||
Net cash used in financing activities | (9,272 | ) | (59 | ) |
ITEM 3. | Quantitative and Qualitative Disclosures about Market Risk |
ITEM 4. | Controls and Procedures |
Part II. | Other Information |
ITEM 1. | Legal Proceedings |
ITEM 1A. | Risk Factors |
ITEM 6. | Exhibits |
31.1 | Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
31.2 | Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
32.1* | Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
32.2* | Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
101 | The following materials from hhgregg, Inc.’s Form 10-Q for the quarterly period ended June 30, 2016, formatted in an XBRL Interactive Data File: (i) Condensed Consolidated Statements of Operations-unaudited; (ii) Condensed Consolidated Balance Sheets-unaudited; (iii) Condensed Consolidated Statements of Cash Flows-unaudited; (iv) Condensed Consolidated Statement of Stockholders’ Equity-unaudited; and (v) Notes to Condensed Consolidated Financial Statements-unaudited. |
* | This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filings under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date hereof and irrespective of any general incorporation language in any filings. |
HHGREGG, INC. | ||
By: | /s/ Robert J. Riesbeck | |
Robert J. Riesbeck President and Chief Executive Officer and Chief Financial Officer (Principal Executive and Financial Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of hhgregg, 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 officer(s) 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. |
By: | /s/ Robert J. Riesbeck | |
Robert J. Riesbeck President and Chief Executive Officer and Chief Financial Officer (Principal Executive and Financial Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of hhgregg, 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 officer(s) 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. |
By: | /s/ Kevin J. Kovacs | ||
Kevin J. Kovacs Vice President, Controller |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
By: | /s/ Robert J. Riesbeck | ||
Robert J. Riesbeck President and Chief Executive Officer and Chief Financial Officer (Principal Executive and Financial Officer) |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
By: | /s/ Kevin J. Kovacs | ||
Kevin J. Kovacs Vice President, Controller |
Document and Entity Information - shares |
3 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Aug. 01, 2016 |
|
Document Documentand Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | HGG | |
Entity Registrant Name | HHGREGG, INC. | |
Entity Central Index Key | 0001396279 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 27,798,354 |
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Income Statement [Abstract] | ||
Net sales | $ 423,572 | $ 441,063 |
Cost of goods sold | 292,063 | 306,706 |
Gross profit | 131,509 | 134,357 |
Selling, general and administrative expenses | 108,109 | 111,104 |
Net advertising expense | 22,869 | 23,054 |
Depreciation and amortization expense | 6,978 | 8,369 |
Loss from operations | (6,447) | (8,170) |
Other expense (income): | ||
Interest expense | 785 | 590 |
Interest income | (5) | (5) |
Total other expense | 780 | 585 |
Loss before income taxes | (7,227) | (8,755) |
Income taxes | 0 | 0 |
Net loss | $ (7,227) | $ (8,755) |
Net loss per share | ||
Basic (in dollars per share) | $ (0.26) | $ (0.32) |
Diluted (in dollars per share) | $ (0.26) | $ (0.32) |
Weighted average shares outstanding-basic (shares) | 27,741,261 | 27,680,209 |
Weighted average shares outstanding-diluted (shares) | 27,741,261 | 27,680,209 |
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Mar. 31, 2016 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Accounts receivable-trade, allowances | $ 3 | $ 5 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 41,291,415 | 41,204,660 |
Common stock, outstanding | 27,794,733 | 27,707,978 |
Common stock held in treasury at cost, shares | 13,496,682 | 13,496,682 |
Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - 3 months ended Jun. 30, 2016 - USD ($) $ in Thousands |
Total |
Common Stock |
Preferred Stock |
Additional Paid-in Capital |
Accumulated Deficit |
Common Stock Held in Treasury |
---|---|---|---|---|---|---|
Beginning Balance at Mar. 31, 2016 | $ 121,354 | $ 4 | $ 0 | $ 304,325 | $ (32,747) | $ (150,228) |
Beginning Balance (in shares) at Mar. 31, 2016 | 27,707,978 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (7,227) | (7,227) | ||||
Vesting of RSUs, net of tax withholdings (in shares) | 86,755 | |||||
Stock compensation expense | 440 | 440 | ||||
Ending Balance at Jun. 30, 2016 | $ 114,567 | $ 4 | $ 0 | $ 304,765 | $ (39,974) | $ (150,228) |
Ending Balance (in shares) at Jun. 30, 2016 | 27,794,733 |
Summary of Significant Accounting Policies |
3 Months Ended |
---|---|
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Description of Business hhgregg, Inc. (“hhgregg” or the “Company”) is an appliance, electronics and furniture retailer that is committed to providing customers with a truly differentiated purchase experience through superior customer service, knowledgeable sales associates and the highest quality product selections. Founded in 1955, hhgregg is a multi-regional retailer with 226 brick-and-mortar stores in 20 states that also offers market-leading global and local brands at value prices nationwide via hhgregg.com. The Company reports its results as one reportable segment. Interim Financial Information The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). In the opinion of the Company’s management, these unaudited condensed consolidated financial statements reflect all necessary adjustments, which are of a normal recurring nature, for a fair presentation of such data. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such SEC rules and regulations. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of hhgregg and the notes thereto for the fiscal year ended March 31, 2016, included in the Company’s Annual Report on Form 10-K filed with the SEC on May 19, 2016. The consolidated results of operations, financial position and cash flows for interim periods are not necessarily indicative of those to be expected for a full year. The Company has made a number of estimates and assumptions relating to the assets and liabilities and the reporting of sales and expenses to prepare these unaudited condensed consolidated financial statements in conformity with GAAP. Actual results could differ from those estimates. Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of hhgregg and its wholly-owned subsidiary, Gregg Appliances, Inc. (“Gregg Appliances”). Gregg Appliances has a wholly-owned subsidiary, HHG Distributing LLC (“HHG Distributing”), which has no assets or operations. Recently Issued Accounting Pronouncements In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-09, Improvements to Employee Share-Based Payment Accounting, ("ASU 2016-09") which is intended to improve the accounting for share-based payment transactions as part of the FASB’s simplification initiative. The ASU changes certain aspects of the accounting for share-based payment award transactions, including: (1) accounting for income taxes; (2) classification of excess tax benefits on the statement of cash flows; (3) forfeitures; (4) minimum statutory tax withholding requirements; and (5) classification of employee taxes paid on the statement of cash flows when an employer withholds shares for tax-withholding purposes. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, and interim periods within those years with early adoption permitted. The Company is evaluating the effect that ASU No. 2016-09 will have on its consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)" ("ASU No. 2016-02"), which requires an entity that is a lessee to recognize the assets and liabilities arising from leases on the balance sheet. This guidance also requires disclosures about the amount, timing and uncertainty of cash flows arising from leases. This guidance is effective for annual reporting periods beginning after December 15, 2018, and interim periods within those annual periods and early adoption is permitted. The Company is evaluating the effect that ASU No. 2016-02 will have on its consolidated financial statements and related disclosures. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) to clarify the principles used to recognize revenue for all entities. The original standard was to be effective for fiscal years beginning after December 15, 2016; however, in July 2015, the FASB approved a one-year deferral of this standard, with a new effective date for fiscal years beginning after December 15, 2017. While the Company is still in the process of evaluating the impact, if any, the adoption of this guidance will have on its financial position and results of operations, the Company does not currently expect a material impact on its consolidated financial statements. Recently Adopted Accounting Pronouncements In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes, which will require entities to present deferred tax assets ("DTA") and deferred tax liabilities ("DTL") as non-current in a classified balance sheet. The ASU simplified the current guidance, which requires entities to separately present DTAs and DTLs as current and non-current in a classified balance sheet. This standard is effective for annual periods and interim periods within those fiscal years, beginning after December 15, 2016 but permits entities to early adopt at the beginning of any interim or annual period. The Company adopted ASU 2015-17 in the period ending December 31, 2015, prospectively, as it believes the adoption of this standard reduces complexity of its condensed consolidated financial statements as well as enhances the usefulness of the related financial information. Prior periods presented in the condensed consolidated balance sheet are not retrospectively adjusted. In April 2015, the FASB issued an accounting pronouncement, FASB ASU 2015-3, related to the presentation of debt issuance costs (FASB ASC Subtopic 835-30). This standard requires debt issuance costs related to a recognized debt liability to be presented on the balance sheet as a direct deduction from the debt liability rather than as an asset. These costs continue to be amortized to interest expense using the effective interest method. In August 2015, FASB issued ASU 2015-15 Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. These pronouncements were effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015, and retrospective adoption was required. The Company adopted the pronouncements for its fiscal year beginning April 1, 2016 for costs associated with their line of credit facility. The Company's accounting policy for these costs did not change with the adoption of the new pronouncements. The Company defers such costs and present them as an asset on the balance sheet and amortize the costs ratably over the term of the arrangement to interest expense. |
Fair Value Measurements |
3 Months Ended |
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Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The carrying amounts of cash and cash equivalents, accounts receivable—trade, accounts receivable—other, accounts payable and customer deposits approximate fair value because of the short maturity of these instruments. Any outstanding amount on the Company’s line of credit approximates fair value as the interest rate is market based. |
Property and Equipment |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment | Property and Equipment Property and equipment consisted of the following at June 30, 2016 and March 31, 2016 (in thousands):
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Net Loss per Share |
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Loss per Share | Net Loss per Share Net loss per basic and diluted share is calculated based on the weighted-average number of outstanding common shares. When the Company reports net income, the calculation of net income per diluted share excludes shares underlying outstanding stock options and restricted stock units with exercise prices that exceed the average market price of the Company’s common stock for the period and certain options and restricted stock units with unrecognized compensation cost, as the effect would be antidilutive. Potential dilutive common shares are composed of shares of common stock issuable upon the exercise of stock options and vesting of restricted stock units. For the three months ended June 30, 2016 and 2015, the diluted loss per common share calculation represents the weighted average common shares outstanding with no additional dilutive shares as the Company incurred a net loss for the periods and such shares would be antidilutive. The following table presents net loss per basic and diluted share for the three months ended June 30, 2016 and 2015 (in thousands, except share and per share amounts):
Antidilutive shares not included in the net loss per diluted share calculation for the three months ended June 30, 2016 and 2015 were 2,799,221 and 3,537,511, respectively. |
Inventories |
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories Net merchandise inventories consisted of the following at June 30, 2016 and March 31, 2016 (in thousands):
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Debt |
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||
Debt | Debt A summary of debt at June 30, 2016 and March 31, 2016 is as follows (in thousands):
On June 28, 2016, Gregg Appliances entered into Amendments No. 2 & 3 to the Amended and Restated Loan and Security Agreement (the “Amended Facility”) which amended the maximum amount available under the Amended Facility from $400 million to $300 million, comprised of a $20 million first-in last-out revolving tranche ("the FILO") and a $280 million revolver, subject to borrowing base availability, and extended the maturity date from July 29, 2018 to June 28, 2021. Pursuant to the Amended Facility, the first $20 million of borrowings are applied to the FILO, subject to a borrowing base equal to the sum of (i) 5% of the eligible credit card A/R and (ii) 10% of the net orderly liquidation value of eligible inventory, in each case subject to customary reserves and eligibility criteria. Under the FILO, the inventory advance rate is reduced by 0.5% per quarter to 6.0% and will remain at 6.0% unless the fixed charge coverage ratio is less than 1.0x, then it will reduce by 0.5% each quarter to 5.0%. If the fixed charge coverage ratio is less than 1.0x at that time, the inventory advance rate is reduced by 0.25% each quarter. Interest on the borrowings under the FILO are payable at a fluctuating rate based on the bank's prime rate or LIBOR plus an applicable margin based on the average quarterly excess availability. For borrowings greater than $20 million, the borrowing base is equal to the sum of (i) 90% of the amount of eligible commercial and credit card receivables of Gregg Appliances and (ii) 90% of the net recovery percentage multiplied by the value of eligible inventory consistent with the most recent appraisal of such eligible inventory. Interest on borrowings (other than Eurodollar rate borrowings) is payable monthly at a fluctuating rate based on the bank’s prime rate or LIBOR plus an applicable margin based on the average quarterly excess availability. Interest on Eurodollar rate borrowings is payable on the last day of each “interest period” applicable to such borrowing or on the three month anniversary of the beginning of such “interest period” for interest periods greater than three months. The Company pays an unused line fee at the unused line rate which is determined based on the amount of the daily average of the outstanding borrowings for the immediately preceding calendar quarter period (the “Daily Average”). For a Daily Average greater than or equal to 50% of the defined borrowing base, the unused line rate is 0.25%. For a Daily Average less than 50% of the defined borrowing base, the unused line rate is 0.375%. The Amended Facility is guaranteed by Gregg Appliances’ wholly-owned subsidiary, HHG Distributing, which has no assets or operations. The guarantee is full and unconditional, and Gregg Appliances has no other subsidiaries. Under the Amended Facility, Gregg Appliances is not required to comply with any financial maintenance covenant but Gregg Appliances is required to maintain “excess availability” of the greater of (i) 10% of the defined borrowing base or (ii) $15 million. Prior to Amendments No. 2 & 3, Gregg Appliances was not required to comply with any financial maintenance covenant unless “excess availability” was less than the greater of (i) 10.0% of the lesser of (A) the defined borrowing base or (B) the defined maximum credit or (ii) $20.0 million during the continuance of which event Gregg Appliances was subject to compliance with a fixed charge coverage ratio of 1.0 to 1.0. If Gregg Appliances has “excess availability” of less than 15%, 12.5% prior to Amendments No. 2 & 3, of the lesser of (A) the defined borrowing base or (B) the defined maximum credit, it may have, in certain circumstances more specifically described in the Amended Facility, become subject to cash dominion control. The Amended Facility places limitations on the ability of Gregg Appliances to, among other things, incur debt, create other liens on its assets, make investments, sell assets, pay dividends, undertake transactions with affiliates, enter into merger transactions, enter into unrelated businesses, open collateral locations outside of the United States, or enter into consignment agreements or floor plan financing arrangements. The Amended Facility also contains various customary representations and warranties, financial and collateral reporting requirements and other affirmative and negative covenants. Gregg Appliances was in compliance with the restrictions and covenants of the Amended Facility at June 30, 2016. As of June 30, 2016 and March 31, 2016, Gregg Appliances had no borrowings outstanding under the Amended Facility. The total borrowing availability under the Amended Facility was $177.2 million and $139.9 million as of June 30, 2016 and March 31, 2016, respectively. The Company typically borrows based on LIBOR. As of June 30, 2016, the interest rate on the FILO based on LIBOR was 5.4%. The interest rate on the revolver based on LIBOR was 2.44% and 2.15% as of June 30, 2016 and March 31, 2016, respectively. |
Stock-based Compensation |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based Compensation | Stock-based Compensation Stock Options Effective June 20, 2014, the Company adopted an Amendment to the hhgregg, Inc. 2007 Equity Incentive Plan which increased the number of shares of common stock reserved for issuance under the Plan to 9,000,000. The following table summarizes the activity under the Company’s 2007 Equity Incentive Plan for the three months ended June 30, 2016:
During the three months ended June 30, 2016, the Company did not grant options under the 2007 Equity Incentive Plan. Time Vested Restricted Stock Units During the three months ended June 30, 2016, the Company granted 877,832 time vested restricted stock units (“RSUs”) under the 2007 Equity Incentive Plan to certain employees and directors of the Company. The RSUs vest in equal amounts over a three-year period beginning on the first anniversary of the date of grant. Upon vesting, the outstanding number of RSUs will be converted into shares of common stock. RSUs are forfeited if they have not vested before the participant's service to the Company terminates for any reason other than death or total permanent disability or certain other circumstances as described in such participant’s RSU agreement. Upon death or disability, the participant is entitled to receive a portion of the award based upon the period of time lapsed between the date of grant of the RSU and the termination of service as an employee or director. The fair value of RSU awards is based on the Company’s stock price at the close of the market on the date of grant. The weighted average grant date fair value for the RSUs issued during the three months ended June 30, 2016 was $1.62. The following table summarizes RSU vesting activity for the three months ended June 30, 2016:
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Contingencies |
3 Months Ended |
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Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies The Company is engaged in various legal proceedings in the ordinary course of business and has certain unresolved claims pending. The ultimate liability, if any, for the aggregate amounts claimed cannot be determined at this time. However, management believes, based on the examination of these matters and experiences to date, that the ultimate liability, if any, in excess of amounts already provided for in the unaudited condensed consolidated financial statements is not likely to have a material effect on its consolidated financial position, results of operations or cash flows. The Company was the defendant in a class action lawsuit captioned, Dwain Underwood, on behalf of himself and all others similarly situated v. Gregg Appliances, Inc. and hhgregg, Inc., filed in the Superior Court in Marion County, Indiana, where a former employee alleged that the Company breached a contract by failing to correctly calculate his (and other class members) incentive bonus. On July 9, 2014, the judge granted the plaintiff’s motion for class certification, and on July 17, 2015, the judge granted the plaintiff’s motion for summary judgment, although no finding on damages was made. The Company's interlocutory appeal to the Indiana Court of Appeals was accepted on October 23, 2015. On July 22, 2016, the Indiana Court of Appeals reversed the Superior Court's decision for summary judgment and directed that summary judgment be entered in the Company's favor. The plaintiff has 30 days to appeal the decision. The Company believes a loss is not probable, and thus, as of June 30, 2016, a liability has not been recorded for this matter. |
Summary of Significant Accounting Policies (Policies) |
3 Months Ended |
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Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business hhgregg, Inc. (“hhgregg” or the “Company”) is an appliance, electronics and furniture retailer that is committed to providing customers with a truly differentiated purchase experience through superior customer service, knowledgeable sales associates and the highest quality product selections. Founded in 1955, hhgregg is a multi-regional retailer with 226 brick-and-mortar stores in 20 states that also offers market-leading global and local brands at value prices nationwide via hhgregg.com. The Company reports its results as one reportable segment. |
Interim Financial Information | Interim Financial Information The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). In the opinion of the Company’s management, these unaudited condensed consolidated financial statements reflect all necessary adjustments, which are of a normal recurring nature, for a fair presentation of such data. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such SEC rules and regulations. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of hhgregg and the notes thereto for the fiscal year ended March 31, 2016, included in the Company’s Annual Report on Form 10-K filed with the SEC on May 19, 2016. The consolidated results of operations, financial position and cash flows for interim periods are not necessarily indicative of those to be expected for a full year. The Company has made a number of estimates and assumptions relating to the assets and liabilities and the reporting of sales and expenses to prepare these unaudited condensed consolidated financial statements in conformity with GAAP. Actual results could differ from those estimates. |
Principles of Consolidation | Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of hhgregg and its wholly-owned subsidiary, Gregg Appliances, Inc. (“Gregg Appliances”). Gregg Appliances has a wholly-owned subsidiary, HHG Distributing LLC (“HHG Distributing”), which has no assets or operations. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-09, Improvements to Employee Share-Based Payment Accounting, ("ASU 2016-09") which is intended to improve the accounting for share-based payment transactions as part of the FASB’s simplification initiative. The ASU changes certain aspects of the accounting for share-based payment award transactions, including: (1) accounting for income taxes; (2) classification of excess tax benefits on the statement of cash flows; (3) forfeitures; (4) minimum statutory tax withholding requirements; and (5) classification of employee taxes paid on the statement of cash flows when an employer withholds shares for tax-withholding purposes. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, and interim periods within those years with early adoption permitted. The Company is evaluating the effect that ASU No. 2016-09 will have on its consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)" ("ASU No. 2016-02"), which requires an entity that is a lessee to recognize the assets and liabilities arising from leases on the balance sheet. This guidance also requires disclosures about the amount, timing and uncertainty of cash flows arising from leases. This guidance is effective for annual reporting periods beginning after December 15, 2018, and interim periods within those annual periods and early adoption is permitted. The Company is evaluating the effect that ASU No. 2016-02 will have on its consolidated financial statements and related disclosures. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) to clarify the principles used to recognize revenue for all entities. The original standard was to be effective for fiscal years beginning after December 15, 2016; however, in July 2015, the FASB approved a one-year deferral of this standard, with a new effective date for fiscal years beginning after December 15, 2017. While the Company is still in the process of evaluating the impact, if any, the adoption of this guidance will have on its financial position and results of operations, the Company does not currently expect a material impact on its consolidated financial statements. Recently Adopted Accounting Pronouncements In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes, which will require entities to present deferred tax assets ("DTA") and deferred tax liabilities ("DTL") as non-current in a classified balance sheet. The ASU simplified the current guidance, which requires entities to separately present DTAs and DTLs as current and non-current in a classified balance sheet. This standard is effective for annual periods and interim periods within those fiscal years, beginning after December 15, 2016 but permits entities to early adopt at the beginning of any interim or annual period. The Company adopted ASU 2015-17 in the period ending December 31, 2015, prospectively, as it believes the adoption of this standard reduces complexity of its condensed consolidated financial statements as well as enhances the usefulness of the related financial information. Prior periods presented in the condensed consolidated balance sheet are not retrospectively adjusted. In April 2015, the FASB issued an accounting pronouncement, FASB ASU 2015-3, related to the presentation of debt issuance costs (FASB ASC Subtopic 835-30). This standard requires debt issuance costs related to a recognized debt liability to be presented on the balance sheet as a direct deduction from the debt liability rather than as an asset. These costs continue to be amortized to interest expense using the effective interest method. In August 2015, FASB issued ASU 2015-15 Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. These pronouncements were effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015, and retrospective adoption was required. The Company adopted the pronouncements for its fiscal year beginning April 1, 2016 for costs associated with their line of credit facility. The Company's accounting policy for these costs did not change with the adoption of the new pronouncements. The Company defers such costs and present them as an asset on the balance sheet and amortize the costs ratably over the term of the arrangement to interest expense. |
Property and Equipment (Tables) |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment | Property and equipment consisted of the following at June 30, 2016 and March 31, 2016 (in thousands):
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Net Loss per Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income Loss Per Basic and Diluted Share | The following table presents net loss per basic and diluted share for the three months ended June 30, 2016 and 2015 (in thousands, except share and per share amounts):
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Inventories (Tables) |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Merchandise Inventories | Net merchandise inventories consisted of the following at June 30, 2016 and March 31, 2016 (in thousands):
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Debt (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||
Summary of Debt | A summary of debt at June 30, 2016 and March 31, 2016 is as follows (in thousands):
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Stock-based Compensation (Tables) |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Stock Option Plans Activity | The following table summarizes the activity under the Company’s 2007 Equity Incentive Plan for the three months ended June 30, 2016:
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Summary of RSU Vesting Activity | The following table summarizes RSU vesting activity for the three months ended June 30, 2016:
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Summary of Significant Accounting Policies (Details) |
3 Months Ended |
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Jun. 30, 2016
state
Store
Segment
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Accounting Policies [Abstract] | |
Number of stores | Store | 226 |
Number of states | state | 20 |
Number of reportable segments | Segment | 1 |
Property and Equipment (Details) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Mar. 31, 2016 |
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Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | $ 295,683 | $ 293,506 |
Less accumulated depreciation and amortization | (210,447) | (206,034) |
Net property and equipment | 85,236 | 87,472 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | 23,697 | 23,700 |
Store fixtures and furniture | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | 150,950 | 150,390 |
Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | 1,789 | 1,757 |
Signs | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | 11,942 | 11,959 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | 104,234 | 103,908 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | $ 3,071 | $ 1,792 |
Net Loss per Share - Net loss per basic and diluted share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
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Jun. 30, 2016 |
Jun. 30, 2015 |
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Earnings Per Share [Abstract] | ||
Net loss | $ (7,227) | $ (8,755) |
Weighted average outstanding shares of common stock | 27,741,261 | 27,680,209 |
Common stock and potential dilutive common shares | 27,741,261 | 27,680,209 |
Net loss per share: | ||
Basic (in dollars per share) | $ (0.26) | $ (0.32) |
Diluted (in dollars per share) | $ (0.26) | $ (0.32) |
Net Loss per Share - Narrative (Details) - shares |
3 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Earnings Per Share [Abstract] | ||
Antidilutive shares not included in the net income per diluted share calculation, shares | 2,799,221 | 3,537,511 |
Inventories - Net Merchandise Inventories (Details) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Mar. 31, 2016 |
---|---|---|
Schedule of Inventory [Line Items] | ||
Net merchandise inventory | $ 292,025 | $ 256,559 |
Appliances | ||
Schedule of Inventory [Line Items] | ||
Net merchandise inventory | 157,013 | 126,025 |
Consumer electronics | ||
Schedule of Inventory [Line Items] | ||
Net merchandise inventory | 114,488 | 109,418 |
Home products | ||
Schedule of Inventory [Line Items] | ||
Net merchandise inventory | $ 20,524 | $ 21,116 |
Debt - Summary of Debt (Details) - USD ($) |
Jun. 30, 2016 |
Mar. 31, 2016 |
---|---|---|
Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Line of Credit | $ 0 | $ 0 |
Stock-based Compensation - Summary of Stock Option Plans Activity (Details) - Stock Options |
3 Months Ended |
---|---|
Jun. 30, 2016
$ / shares
shares
| |
Number of Options Outstanding, shares | |
Beginning Balance, shares | shares | 2,827,168 |
Granted, shares | shares | 0 |
Exercised, shares | shares | 0 |
Forfeited, shares | shares | (38,720) |
Expired, shares | shares | (814,633) |
Ending Balance, shares | shares | 1,973,815 |
Weighted Average Exercise Price per Share (dollars per share) | |
Beginning Balance (dollars per share) | $ / shares | $ 11.86 |
Granted (dollars per share) | $ / shares | 0.00 |
Exercised (dollars per share) | $ / shares | 0.00 |
Forfeited (dollars per share) | $ / shares | 7.12 |
Expired (dollars per share) | $ / shares | 13.20 |
Ending Balance (dollars per share) | $ / shares | $ 11.40 |
Stock-based Compensation - Narrative (Details) - Equity Incentive Plan 2007 - $ / shares |
3 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Jun. 20, 2014 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares of common stock reserved for issuance | 9,000,000 | |
Time Vested Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted, shares | 877,832 | |
Restricted stock units, vesting term (in years) | 3 years | |
Restricted stock units, weighted average grant date fair value (dollars per share) | $ 1.62 |
Stock-based Compensation - Summary of RSU Vesting Activity (Details) - Restricted Stock Units (RSUs) |
3 Months Ended |
---|---|
Jun. 30, 2016
$ / shares
shares
| |
Shares | |
Beginning Balance, shares | shares | 370,383 |
Granted, shares | shares | 877,832 |
Vested, shares | shares | (107,138) |
Forfeited, shares | shares | (44,254) |
Ending Balance, shares | shares | 1,096,823 |
Weighted Average Grant-Date Fair Value (dollars per share) | |
Beginning Balance (dollars per share) | $ / shares | $ 4.83 |
Granted (dollars per share) | $ / shares | 1.62 |
Vested (dollars per share) | $ / shares | 5.53 |
Forfeited (dollars per share) | $ / shares | 2.36 |
Ending Balance (dollars per share) | $ / shares | $ 2.29 |
Contingencies - Narrative (Details) - Dwain Underwood, on behalf of himself and all others similarly situated v. Gregg Appliances, Inc. and hhgregg, Inc. - USD ($) |
Jul. 22, 2016 |
Jun. 30, 2016 |
---|---|---|
Pending Litigation | ||
Loss Contingencies [Line Items] | ||
Potential liability | $ 0 | |
Subsequent Event | Settled Litigation | ||
Loss Contingencies [Line Items] | ||
Period of appeal | 30 days |
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