Form 10-K | ||
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE | ||
SECURITIES EXCHANGE ACT OF 1934 | ||
For the Fiscal Year Ended April 3, 2016 | ||
Commission File No. 0-7647 | ||
Minnesota | 41-0771293 | |
(State of Incorporation) | (I.R.S. Employer Identification No.) | |
2381 Rosegate, Roseville, Minnesota | 55113 | |
(Address of Principal Executive Offices) | (Zip Code) |
Securities registered pursuant to Section 12(b) of the Act: | Common Stock, par value $.05 per share | |||
Name of exchange on which registered: | NASDAQ Global Market | |||
Securities registered pursuant to Section 12(g) of the Act: | None | |||
Large accelerated filer | ¨ | Non-accelerated filer | ¨ | Accelerated filer | þ | Smaller reporting company | o |
Page | ||
PART I | ||
ITEM 1. | ||
ITEM 1A. | ||
ITEM 1B. | ||
ITEM 2. | ||
ITEM 3. | ||
ITEM 4. | ||
PART II | ||
ITEM 5. | ||
ITEM 6. | ||
ITEM 7. | ||
ITEM 7A. | ||
ITEM 8. | ||
ITEM 9. | ||
ITEM 9A. | ||
ITEM 9B. | ||
PART III | ||
ITEM 10. | ||
ITEM 11. | ||
ITEM 12. | ||
ITEM 13. | ||
ITEM 14. | ||
PART IV | ||
ITEM 15. |
• | Receives, stores and distributes various chemicals in bulk quantities, including liquid caustic soda, sulfuric acid, hydrochloric acid, phosphoric acid, potassium hydroxide and aqua ammonia; |
• | Manufactures sodium hypochlorite (bleach), agricultural products and certain food-grade products, including liquid phosphates, lactates and other blended products; |
• | Repackages water treatment chemicals for our Water Treatment Group and bulk industrial chemicals to sell in smaller quantities to our customers; |
• | Performs custom blending of chemicals according to customer formulas and specifications; and |
• | Performs contract and private label bleach packaging. |
• | requirements for the reformulation of certain or all products to meet new standards, |
• | the recall or discontinuance of certain or all products, |
• | additional record-keeping requirements, |
• | expanded documentation of the properties of certain or all products, |
• | expanded or different labeling, |
• | adverse event tracking and reporting, and |
• | additional scientific substantiation. |
Group | Location | Approx. Square Feet | ||
Industrial | Camanche, IA | 95,000 | ||
Centralia, IL (1) | 77,000 | |||
Dupo, IL (2) | 64,000 | |||
Minneapolis, MN (3) | 9,000 | |||
St. Paul, MN (4) | 32,000 | |||
Rosemount, MN (5) | 63,000 | |||
St Louis, MO | 6,000 | |||
Water Treatment | Ft. Smith, AR (6) | 17,000 | ||
Apopka, FL (6) | 32,100 | |||
Big Pine Key, FL (6) | 4,200 | |||
Hollywood, FL (6) | 5,400 | |||
LaBelle, FL (6) | 8,200 | |||
Monticello, FL (6) | 5,000 | |||
Starke, FL (6) | 4,000 | |||
Webster, FL (6) | 6,500 | |||
Swainsboro, GA | 57,000 | |||
Eldridge, IA | 6,000 | |||
Slater, IA | 12,000 | |||
Centralia, IL | 39,000 | |||
Havana, IL | 16,000 | |||
Peotone, IL (6) | 18,000 | |||
Muncie, IN | 12,000 | |||
Garnett, KS | 18,000 | |||
Frankfort, KY | 20,000 | |||
Columbia, MO (6) | 14,000 | |||
Billings, MT | 9,000 | |||
Fargo, ND | 20,000 | |||
Washburn, ND | 14,000 | |||
Lincoln, NE (6) | 16,000 | |||
Tulsa, OK | 7,300 | |||
Sioux Falls, SD | 27,000 | |||
Rapid City, SD | 9,000 | |||
Fond du Lac, WI | 24,000 | |||
Superior, WI | 17,000 | |||
Industrial and Water Treatment | St. Paul, MN (7) | 59,000 | ||
Memphis, TN | 41,000 | |||
Health and Nutrition | Fullerton, CA (8) | 55,800 | ||
Florida, NY (9) | 107,000 |
(1) | This facility includes 10 acres of land located in Centralia, Illinois owned by the Company. The facility includes manufacturing capacity and primarily serves our food-grade products and agriculture businesses. |
(2) | The land for this manufacturing and packaging facility is leased from a third party, with the lease expiring in May 2023. |
(3) | This facility is leased from a third party and is warehouse space. |
(4) | Our terminal operations, located at two sites on opposite sides of the Mississippi River, are made up of three buildings, outside storage tanks for the storage of liquid bulk chemicals, including caustic soda, as well as numerous smaller tanks for storing and mixing chemicals. The land is leased from the Port Authority of the City of St. Paul, Minnesota. One of the applicable leases runs through 2034, while the other one runs through 2018. We are in negotiations to extend the lease that runs through 2018 lease for a period of 15-20 years. |
(5) | This facility includes 28 acres of land owned by the Company. This manufacturing facility was constructed by us and has outside storage tanks for the storage of bulk chemicals, as well as numerous smaller tanks for storing and mixing chemicals. |
(6) | This facility is leased from a third party and is warehouse space. |
(7) | Our Red Rock facility, which consists of a 59,000 square-foot building located on approximately 10 acres of land, has outside storage capacity for liquid bulk chemicals, as well as numerous smaller tanks for storing and mixing chemicals. The land is leased from the Port Authority of the City of St. Paul, Minnesota and the lease runs until 2029. |
(8) | This is a leased facility comprising administrative offices and a distribution facility. The lease runs through January 2021. |
(9) | This is comprised of a 79,000 square foot manufacturing plant which sits on approximately 16 acres, as well as a leased 28,000 square foot warehouse located in close proximity. |
Quarterly Stock Data | High | Low | |||||||
Fiscal 2016 | |||||||||
4th Quarter | $ | 37.63 | $ | 30.53 | |||||
3rd Quarter | 43.17 | 34.74 | |||||||
2nd Quarter | 44.00 | 33.94 | |||||||
1st Quarter | 43.75 | 37.45 | |||||||
Fiscal 2015 | |||||||||
4th Quarter | $ | 44.30 | $ | 36.93 | |||||
3rd Quarter | 45.13 | 33.22 | |||||||
2nd Quarter | 38.00 | 34.00 | |||||||
1st Quarter | 37.75 | 32.98 |
Cash Dividends | Declared | Paid | |||||||
Fiscal 2017 | |||||||||
1st Quarter | — | $ | 0.40 | ||||||
Fiscal 2016 | |||||||||
4th Quarter | $ | 0.40 | — | ||||||
3rd Quarter | — | $ | 0.40 | ||||||
2nd Quarter | $ | 0.40 | — | ||||||
1st Quarter | — | $ | 0.38 | ||||||
Fiscal 2015 | |||||||||
4th Quarter | $ | 0.38 | — | ||||||
3rd Quarter | — | $ | 0.38 | ||||||
2nd Quarter | $ | 0.38 | — | ||||||
1st Quarter | — | $ | 0.36 |
Fiscal Years | |||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||||
Sales | $ | 413,976 | $ | 364,023 | $ | 348,263 | $ | 350,387 | $ | 343,834 | |||||||||||
Gross profit | 80,257 | 65,791 | 61,600 | 56,936 | 65,868 | ||||||||||||||||
Net Income (1) | 18,143 | 19,214 | 18,094 | 17,108 | 21,628 | ||||||||||||||||
Basic earnings per common share | 1.72 | 1.82 | 1.72 | 1.64 | 2.09 | ||||||||||||||||
Diluted earnings per common share | 1.72 | 1.81 | 1.71 | 1.62 | 2.08 | ||||||||||||||||
Cash dividends declared per common share | 0.80 | 0.76 | 0.72 | 0.68 | 0.64 | ||||||||||||||||
Cash dividends paid per common share | 0.78 | 0.74 | 0.70 | 0.66 | 0.62 | ||||||||||||||||
Total assets | $ | 436,491 | $ | 248,462 | $ | 237,193 | $ | 222,148 | $ | 204,081 |
• | Sales of $414.0 million, a 13.7% increase from fiscal 2015; |
• | Gross profit of $80.3 million, an increase of $14.5 million, or 22.0%, from fiscal 2015; and |
• | Net cash provided by operating activities of $36.3 million. |
Fiscal 2016 | Fiscal 2015 | Fiscal 2014 | |||||||
Sales | 100.0 | % | 100.0 | % | 100.0 | % | |||
Cost of sales | (80.6 | )% | (81.9 | )% | (82.3 | )% | |||
Gross profit | 19.4 | % | 18.1 | % | 17.7 | % | |||
Selling, general and administrative expenses | (11.9 | )% | (9.7 | )% | (9.6 | )% | |||
Operating income | 7.5 | % | 8.4 | % | 8.1 | % | |||
Interest (expense) income, net | (0.2 | )% | — | % | — | % | |||
Income before income taxes | 7.3 | % | 8.4 | % | 8.1 | % | |||
Income tax provision | (3.0 | )% | (3.1 | )% | (2.9 | )% | |||
Net income | 4.4 | % | 5.3 | % | 5.2 | % |
Payments Due by Period | ||||||||||||||||||||||||||||
Contractual Obligation | 2017 | 2018 | 2019 | 2020 | 2021 | More than 5 Years | Total | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Senior secured term loan (1) | $ | 5,625 | $ | 8,125 | $ | 10,000 | $ | 10,000 | $ | 65,000 | $ | — | $ | 98,750 | ||||||||||||||
Senior secured revolver (2) | $ | — | $ | — | $ | — | $ | — | $ | 31,000 | $ | — | $ | 31,000 | ||||||||||||||
Operating lease obligations | $ | 2,750 | $ | 2,553 | $ | 2,250 | $ | 2,059 | $ | 1,833 | $ | 3,596 | $ | 15,041 | ||||||||||||||
Pension withdrawal liability (3) | $ | 467 | $ | 467 | $ | 467 | $ | 467 | $ | 467 | $ | 5,840 | $ | 8,175 |
(1) | Represents principal payments only. See Note 6 of our consolidated Financial Statements for further information. |
(2) | Represents balance outstanding as of April 3, 2016, and assumes such amount remains outstanding until its maturity date. See Note 6 of our consolidated Financial Statements for further information. |
(3) | This relates to our withdrawal from a multiemployer pension plan. Payments on this obligation began in fiscal 2014 and will continue through 2034. |
April 3, 2016 | March 29, 2015 | |||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 20,014 | $ | 18,639 | ||||
Investments available-for-sale | — | 14,485 | ||||||
Trade receivables, less allowance for doubtful accounts of $602 for 2016 and $445 for 2015 | 59,271 | 40,355 | ||||||
Inventories | 47,719 | 37,028 | ||||||
Income taxes receivable | 6,062 | 732 | ||||||
Prepaid expenses and other current assets | 4,222 | 3,101 | ||||||
Total current assets | 137,288 | 114,340 | ||||||
PROPERTY, PLANT, AND EQUIPMENT: | ||||||||
Land | 9,085 | 8,038 | ||||||
Buildings and improvements | 84,391 | 73,095 | ||||||
Machinery and equipment | 75,132 | 60,077 | ||||||
Transportation equipment | 22,442 | 19,596 | ||||||
Office furniture and equipment including computer systems | 13,798 | 11,966 | ||||||
204,848 | 172,772 | |||||||
Less accumulated depreciation | 88,527 | 79,042 | ||||||
Net property, plant, and equipment | 116,321 | 93,730 | ||||||
OTHER ASSETS: | ||||||||
Goodwill | 97,724 | 11,750 | ||||||
Intangible assets, less accumulated amortization of $6,370 for 2016 and $3,933 for 2015 | 82,934 | 11,154 | ||||||
Long-term investments | — | 17,249 | ||||||
Other | 2,224 | 239 | ||||||
Total other assets | 182,882 | 40,392 | ||||||
Total assets | $ | 436,491 | $ | 248,462 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Accounts payable — trade | $ | 30,121 | $ | 20,083 | ||||
Dividends payable | 4,226 | 4,038 | ||||||
Accrued payroll and employee benefits | 8,787 | 6,122 | ||||||
Current portion of long-term debt | 5,489 | — | ||||||
Deferred income taxes | — | 2,698 | ||||||
Due to sellers of acquired business | 6,829 | — | ||||||
Container deposits | 1,081 | 1,008 | ||||||
Other current liabilities | 3,232 | 2,394 | ||||||
Total current liabilities | 59,765 | 36,343 | ||||||
LONG-TERM DEBT, LESS CURRENT PORTION | 123,616 | — | ||||||
PENSION WITHDRAWAL LIABILITY | 6,282 | 6,589 | ||||||
OTHER LONG-TERM LIABILITIES | 3,611 | 1,588 | ||||||
DEFERRED INCOME TAXES | 42,242 | 9,978 | ||||||
Total liabilities | 235,516 | 54,498 | ||||||
COMMITMENTS AND CONTINGENCIES | — | — | ||||||
SHAREHOLDERS’ EQUITY: | ||||||||
Common stock; authorized: 30,000,000 shares of $0.05 par value; 10,512,471 and 10,564,949 shares issued and outstanding for 2016 and 2015, respectively | 526 | 528 | ||||||
Additional paid-in capital | 48,189 | 50,901 | ||||||
Retained earnings | 152,265 | 142,567 | ||||||
Accumulated other comprehensive loss | (5 | ) | (32 | ) | ||||
Total shareholders’ equity | 200,975 | 193,964 | ||||||
Total liabilities and shareholders’ equity | $ | 436,491 | $ | 248,462 |
Fiscal Year Ended | ||||||||||||
April 3, 2016 | March 29, 2015 | March 30, 2014 | ||||||||||
Sales | $ | 413,976 | $ | 364,023 | $ | 348,263 | ||||||
Cost of sales | (333,719 | ) | (298,232 | ) | (286,663 | ) | ||||||
Gross profit | 80,257 | 65,791 | 61,600 | |||||||||
Selling, general and administrative expenses | (49,086 | ) | (35,375 | ) | (33,510 | ) | ||||||
Operating income | 31,171 | 30,416 | 28,090 | |||||||||
Interest (expense) income, net | (805 | ) | 38 | (29 | ) | |||||||
Income before income taxes | 30,366 | 30,454 | 28,061 | |||||||||
Income tax provision | (12,223 | ) | (11,240 | ) | (9,967 | ) | ||||||
Net income | $ | 18,143 | $ | 19,214 | $ | 18,094 | ||||||
Weighted average number of shares outstanding-basic | 10,524,730 | 10,568,582 | 10,544,467 | |||||||||
Weighted average number of shares outstanding-diluted | 10,578,042 | 10,633,554 | 10,599,755 | |||||||||
Basic earnings per share | $ | 1.72 | $ | 1.82 | $ | 1.72 | ||||||
Diluted earnings per share | $ | 1.72 | $ | 1.81 | $ | 1.71 | ||||||
Cash dividends declared per common share | $ | 0.80 | $ | 0.76 | $ | 0.72 |
(In thousands) | |||||||||||
April 3, 2016 | March 29, 2015 | March 30, 2014 | |||||||||
Net income | $ | 18,143 | $ | 19,214 | $ | 18,094 | |||||
Other comprehensive income (loss), net of tax: | |||||||||||
Unrealized gain (loss) on available-for-sale investments | 25 | 11 | (47 | ) | |||||||
Unrealized gain on post-retirement liability | 2 | 1 | 109 | ||||||||
Total other comprehensive income | 27 | 12 | 62 | ||||||||
Total comprehensive income | $ | 18,170 | $ | 19,226 | $ | 18,156 |
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Shareholders’ Equity | |||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||
BALANCE — March 31, 2013 | 10,495,427 | $ | 525 | $ | 48,779 | $ | 120,974 | $ | (106 | ) | $ | 170,172 | |||||||||||
Cash dividends declared | (7,641 | ) | (7,641 | ) | |||||||||||||||||||
Share-based compensation expense | 1,322 | 1,322 | |||||||||||||||||||||
Tax benefit on share-based compensation plans | (214 | ) | (214 | ) | |||||||||||||||||||
Vesting of restricted stock | 41,906 | 2 | (2 | ) | — | ||||||||||||||||||
Shares surrendered for payroll taxes | (12,480 | ) | (1 | ) | (484 | ) | (485 | ) | |||||||||||||||
Stock options exercised | 9,333 | 1 | 185 | 186 | |||||||||||||||||||
ESPP shares issued | 28,214 | 1 | 916 | 917 | |||||||||||||||||||
Other comprehensive income, net of tax | 62 | 62 | |||||||||||||||||||||
Net income | 18,094 | 18,094 | |||||||||||||||||||||
BALANCE — March 30, 2014 | 10,562,400 | $ | 528 | $ | 50,502 | $ | 131,427 | $ | (44 | ) | $ | 182,413 | |||||||||||
Cash dividends declared | (8,074 | ) | (8,074 | ) | |||||||||||||||||||
Share-based compensation expense | 1,631 | 1,631 | |||||||||||||||||||||
Tax benefit on share-based compensation plans | 92 | 92 | |||||||||||||||||||||
Vesting of restricted stock | 29,355 | 1 | (1 | ) | — | ||||||||||||||||||
Shares surrendered for payroll taxes | (7,920 | ) | (295 | ) | (295 | ) | |||||||||||||||||
Stock options exercised | 9,333 | 186 | 186 | ||||||||||||||||||||
ESPP shares issued | 31,383 | 2 | 986 | 988 | |||||||||||||||||||
Shares repurchased | (59,602 | ) | (3 | ) | (2,200 | ) | (2,203 | ) | |||||||||||||||
Other comprehensive income, net of tax | 12 | 12 | |||||||||||||||||||||
Net income | 19,214 | 19,214 | |||||||||||||||||||||
BALANCE — March 29, 2015 | 10,564,949 | $ | 528 | $ | 50,901 | $ | 142,567 | $ | (32 | ) | $ | 193,964 | |||||||||||
Cash dividends declared | (8,445 | ) | (8,445 | ) | |||||||||||||||||||
Share-based compensation expense | 1,706 | 1,706 | |||||||||||||||||||||
Tax benefit on share-based compensation plans | (1 | ) | (1 | ) | |||||||||||||||||||
Vesting of restricted stock | 60,658 | 3 | (3 | ) | — | ||||||||||||||||||
Shares surrendered for payroll taxes | (18,834 | ) | (1 | ) | (698 | ) | (699 | ) | |||||||||||||||
ESPP shares issued | 33,550 | 2 | 1,079 | 1,081 | |||||||||||||||||||
Shares repurchased | (127,852 | ) | (6 | ) | (4,795 | ) | (4,801 | ) | |||||||||||||||
Other comprehensive income, net of tax | 27 | 27 | |||||||||||||||||||||
Net income | 18,143 | 18,143 | |||||||||||||||||||||
BALANCE — April 3, 2016 | 10,512,471 | $ | 526 | $ | 48,189 | $ | 152,265 | $ | (5 | ) | $ | 200,975 |
Fiscal Year Ended | ||||||||||||
April 3, 2016 | March 29, 2015 | March 30, 2014 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||
Net income | $ | 18,143 | $ | 19,214 | $ | 18,094 | ||||||
Reconciliation to cash flows: | ||||||||||||
Depreciation and amortization | 15,511 | 13,015 | 12,605 | |||||||||
Amortization of debt issuance costs | 34 | — | — | |||||||||
Loss on disposal of investments | 104 | — | — | |||||||||
Deferred income taxes | 1,103 | (418 | ) | 2,150 | ||||||||
Share-based compensation expense | 1,706 | 1,631 | 1,322 | |||||||||
(Gain) loss from property disposals | (33 | ) | 45 | 111 | ||||||||
Changes in operating accounts (using) providing cash, net of effects of acquisition: | ||||||||||||
Trade receivables | (2,950 | ) | (1,051 | ) | (1,698 | ) | ||||||
Inventories | (322 | ) | (9,977 | ) | 2,122 | |||||||
Accounts payable | 3,831 | 563 | 335 | |||||||||
Accrued liabilities | 192 | (506 | ) | 141 | ||||||||
Accrued interest | 50 | — | — | |||||||||
Income taxes | (701 | ) | (2,177 | ) | (2 | ) | ||||||
Other | (335 | ) | 325 | (568 | ) | |||||||
Net cash provided by operating activities | 36,333 | 20,664 | 34,612 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||
Additions to property, plant, and equipment | (24,183 | ) | (14,552 | ) | (12,261 | ) | ||||||
Purchases of investments | (6,091 | ) | (15,303 | ) | (25,161 | ) | ||||||
Sale and maturities of investments | 37,763 | 13,280 | 16,612 | |||||||||
Proceeds from property disposals | 358 | 223 | 115 | |||||||||
Acquisitions, net of cash acquired | (159,199 | ) | (10,068 | ) | (2,416 | ) | ||||||
Net cash used in investing activities | (151,352 | ) | (26,420 | ) | (23,111 | ) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||
Cash dividends paid | (8,257 | ) | (7,859 | ) | (7,410 | ) | ||||||
New shares issued | 1,081 | 988 | 917 | |||||||||
Stock options exercised | — | 186 | 186 | |||||||||
Excess tax benefit from share-based compensation | (1 | ) | 92 | 62 | ||||||||
Shares surrendered for payroll taxes | (699 | ) | (295 | ) | (485 | ) | ||||||
Shares repurchased | (4,801 | ) | (2,203 | ) | — | |||||||
Repayment of debt | (1,250 | ) | — | — | ||||||||
Payments for debt issuance costs | (679 | ) | — | — | ||||||||
Proceeds from long-term borrowings | 100,000 | — | — | |||||||||
Proceeds from revolver borrowings | 31,000 | — | — | |||||||||
Net cash provided by (used in) financing activities | 116,394 | (9,091 | ) | (6,730 | ) | |||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 1,375 | (14,847 | ) | 4,771 | ||||||||
CASH AND CASH EQUIVALENTS - beginning of period | 18,639 | 33,486 | 28,715 | |||||||||
CASH AND CASH EQUIVALENTS - end of period | $ | 20,014 | $ | 18,639 | $ | 33,486 | ||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION- | ||||||||||||
Cash paid during the year for income taxes | $ | 11,811 | $ | 13,801 | $ | 7,757 | ||||||
Cash paid for interest | 702 | — | — | |||||||||
Noncash investing activities - Capital expenditures in accounts payable | 1,884 | 1,126 | 699 | |||||||||
Acquisition consideration accrued but not paid | 2,200 | — | — |
April 3, 2016 | March 29, 2015 | March 30, 2014 | |||||||
Weighted average common shares outstanding — basic | 10,524,730 | 10,568,582 | 10,544,467 | ||||||
Dilutive impact of stock performance units, restricted stock, and stock options | 53,312 | 64,972 | 55,288 | ||||||
Weighted average common shares outstanding — diluted | 10,578,042 | 10,633,554 | 10,599,755 |
(In thousands) | Amount | |||
Cash and cash equivalents (a) | $ | 1,502 | ||
Trade receivables | 15,737 | |||
Inventories | 10,207 | |||
Other assets | 900 | |||
Property, plant, and equipment | 10,989 | |||
Intangible assets | 71,459 | |||
Accounts payable | (5,398 | ) | ||
Accrued expenses and other current liabilities (a) | (2,925 | ) | ||
Deferred income taxes | (28,445 | ) | ||
Other non-current liabilities | (79 | ) | ||
Net assets acquired | 73,947 | |||
Goodwill | 84,229 | |||
Total preliminary purchase price | 158,176 | |||
Less acquired cash | (1,502 | ) | ||
Preliminary purchase price, net of cash acquired | $ | 156,674 |
Year Ended | |||||||
(In thousands, except per share data) | April 3, 2016 | March 29, 2015 | |||||
Pro forma net sales | $ | 501,667 | $ | 469,538 | |||
Pro forma net income | 22,952 | 21,352 | |||||
Pro forma basic earnings per share | $ | 2.18 | $ | 2.02 | |||
Pro forma diluted earnings per share | $ | 2.17 | $ | 2.01 |
(In thousands) | Amount | ||
Inventories | $ | 145 | |
Property, plant, and equipment | 78 | ||
Intangible assets | 2,532 | ||
Net assets acquired | 2,755 | ||
Goodwill | 1,745 | ||
Total purchase price | $ | 4,500 |
(In thousands) | Amount | ||
Accounts receivable | $ | 1,358 | |
Inventory | 859 | ||
Other assets | 159 | ||
Property, plant, and equipment | 702 | ||
Intangible assets | 3,509 | ||
Current liabilities | (877 | ) | |
Net assets acquired | 5,710 | ||
Goodwill | 4,358 | ||
Total purchase price | $ | 10,068 |
Description | April 3, 2016 | Level 1 | Level 2 | Level 3 | ||||||||||||
(In thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 20,014 | $ | 20,014 | $ | — | $ | — | ||||||||
Description | March 29, 2015 | Level 1 | Level 2 | Level 3 | ||||||||||||
(In thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 18,639 | $ | 18,639 | $ | — | $ | — | ||||||||
Certificates of deposit | 29,136 | — | 29,136 | — | ||||||||||||
Municipal Bonds | 2,598 | — | 2,598 | — |
2016 | 2015 | |||||||
(In thousands) | ||||||||
Inventory (FIFO basis) | $ | 51,857 | $ | 42,567 | ||||
LIFO reserve | (4,138 | ) | (5,539 | ) | ||||
Net inventory | $ | 47,719 | $ | 37,028 |
(In thousands) | Industrial | Water Treatment | Health and Nutrition | Total | ||||||||
Balance as of March 31, 2014 | $ | 6,495 | $ | 897 | $ | — | $ | 7,392 | ||||
Addition due to acquisition | — | 4,358 | — | 4,358 | ||||||||
Balance as of March 29, 2015 | 6,495 | 5,255 | — | 11,750 | ||||||||
Addition due to acquisition | — | 1,745 | 84,229 | 85,974 | ||||||||
Balance as of April 4, 2016 | $ | 6,495 | $ | 7,000 | $ | 84,229 | $ | 97,724 | ||||
2016 | ||||||||||||
Gross Amount | Accumulated Amortization | Net carrying value | ||||||||||
(In thousands) | ||||||||||||
Finite-life intangible assets: | ||||||||||||
Customer relationships | $ | 78,384 | $ | (3,289 | ) | $ | 75,095 | |||||
Trademarks and trade names | 6,045 | (1,090 | ) | 4,955 | ||||||||
Trade secrets | 962 | (934 | ) | 28 | ||||||||
Carrier relationships | 800 | (568 | ) | 232 | ||||||||
Other finite-life intangible assets | 1,886 | (489 | ) | 1,397 | ||||||||
Total finite-life intangible assets | 88,077 | (6,370 | ) | 81,707 | ||||||||
Indefinite-life intangible assets | 1,227 | — | 1,227 | |||||||||
Total intangible assets, net | $ | 89,304 | $ | (6,370 | ) | $ | 82,934 |
2015 | ||||||||||||
Gross Amount | Accumulated Amortization | Net carrying value | ||||||||||
(In thousands) | ||||||||||||
Finite-life intangible assets: | ||||||||||||
Customer relationships | $ | 9,723 | $ | (1,697 | ) | $ | 8,026 | |||||
Trademarks and trade names | 2,034 | (667 | ) | 1,367 | ||||||||
Trade secrets | 962 | (896 | ) | 66 | ||||||||
Carrier relationships | 800 | (337 | ) | 463 | ||||||||
Other finite-life intangible assets | 341 | (336 | ) | 5 | ||||||||
Total finite-life intangible assets | 13,860 | (3,933 | ) | 9,927 | ||||||||
Indefinite-life intangible assets | 1,227 | — | 1,227 | |||||||||
Total intangible assets, net | $ | 15,087 | $ | (3,933 | ) | $ | 11,154 |
(In thousands) | 2017 | 2018 | 2019 | 2020 | 2021 | |||||||||||||||
Estimated amortization expense | $ | 6,051 | $ | 5,704 | $ | 5,454 | $ | 5,074 | $ | 5,028 |
(In thousands) | April 3, 2016 | |||
Senior secured term loan | $ | 98,750 | ||
Senior secured revolver | 31,000 | |||
Total debt | 129,750 | |||
Less: unamortized debt issuance costs | (645 | ) | ||
Less: current portion of long-term debt, net of current unamortized debt issuance costs | (5,489 | ) | ||
Total long-term debt | $ | 123,616 |
Fiscal year ending | (In thousands) | |||
2017 | $ | 5,625 | ||
2018 | 8,125 | |||
2019 | 10,000 | |||
2020 | 10,000 | |||
2021 | 96,000 | |||
$ | 129,750 |
Shares | Weighted- Average Grant Date Fair Value | ||||||
Outstanding at beginning of year | 53,580 | $ | 37.55 | ||||
Granted | 37,309 | 40.89 | |||||
Vested | (53,580 | ) | 37.55 | ||||
Forfeited or expired | — | — | |||||
Outstanding at end of year | 37,309 | $ | 40.89 |
Shares | Weighted- Average Grant Date Fair Value | ||||||
Outstanding at beginning of year | 7,077 | $ | 34.61 | ||||
Granted | 6,804 | 36.00 | |||||
Vested | (7,077 | ) | 34.61 | ||||
Forfeited or expired | — | — | |||||
Outstanding at end of year | 6,804 | $ | 36.00 |
Benefit Plan | 2016 | 2015 | 2014 | ||||||||||
(In thousands) | |||||||||||||
Non-bargaining unit employee plans: | |||||||||||||
Profit sharing | $ | 1,393 | $ | 1,266 | $ | 1,231 | |||||||
401(K) matching contributions | 1,586 | 1,216 | 980 | ||||||||||
ESOP | 1,393 | 1,266 | 1,231 | ||||||||||
Bargaining unit employee plans | 444 | 450 | 500 | ||||||||||
ESPP - all employees | 274 | 253 | 257 | ||||||||||
Total contribution expense | $ | 5,090 | $ | 4,451 | $ | 4,199 |
(In thousands) | 2017 | 2018 | 2019 | 2020 | 2021 | Thereafter | ||||||||||||||||||
Minimum lease payment | $ | 2,750 | $ | 2,553 | $ | 2,250 | $ | 2,059 | $ | 1,833 | $ | 3,596 |
2016 | 2015 | 2014 | ||||||||||
(In thousands) | ||||||||||||
Minimum rentals | $ | 2,890 | $ | 1,665 | $ | 1,223 | ||||||
Contingent rentals | 21 | 103 | 110 | |||||||||
Total rental expense | $ | 2,911 | $ | 1,768 | $ | 1,333 |
2016 | 2015 | 2014 | ||||||||||
(In thousands) | ||||||||||||
Federal — current | $ | 8,761 | $ | 9,574 | $ | 7,612 | ||||||
State — current | 2,238 | 2,133 | 1,255 | |||||||||
Total current | 10,999 | 11,707 | 8,867 | |||||||||
Federal — deferred | 1,027 | (517 | ) | 676 | ||||||||
State — deferred | 197 | 50 | 424 | |||||||||
Total deferred | 1,224 | (467 | ) | 1,100 | ||||||||
Total provision | $ | 12,223 | $ | 11,240 | $ | 9,967 |
2016 | 2015 | 2014 | |||||||
Statutory federal income tax | 35.0 | % | 35.0 | % | 35.0 | % | |||
State income taxes, net of federal deduction | 5.0 | % | 4.7 | % | 3.2 | % | |||
ESOP dividend deduction on allocated shares | (0.7 | )% | (0.7 | )% | (0.8 | )% | |||
Domestic production deduction | (1.5 | )% | (2.4 | )% | (2.1 | )% | |||
Non-deductible acquisition costs | 1.6 | % | — | % | — | % | |||
Assessment related to state tax audit | 0.6 | % | — | % | — | % | |||
Other — net | 0.2 | % | 0.3 | % | 0.2 | % | |||
Total | 40.2 | % | 36.9 | % | 35.5 | % |
(In thousands) | 2016 | 2015 | ||||||
Deferred tax assets: | ||||||||
Trade receivables | $ | 361 | $ | 178 | ||||
Stock compensation accruals | 620 | 949 | ||||||
Pension withdrawal liability | 2,635 | 2,755 | ||||||
Other | 1,302 | 811 | ||||||
Total deferred tax assets | $ | 4,918 | $ | 4,693 | ||||
Deferred tax liabilities: | ||||||||
Inventories | $ | (2,671 | ) | $ | (3,307 | ) | ||
Prepaid | (975 | ) | (689 | ) | ||||
Excess of tax over book depreciation | (14,439 | ) | (12,699 | ) | ||||
Intangibles | (29,075 | ) | (674 | ) | ||||
Total deferred tax liabilities | $ | (47,160 | ) | $ | (17,369 | ) | ||
Net deferred tax liabilities | $ | (42,242 | ) | $ | (12,676 | ) |
Reportable Segments | Industrial | Water Treatment | Health and Nutrition | Total | ||||||||||||
(In thousands) | ||||||||||||||||
Fiscal Year Ended April 3, 2016: | ||||||||||||||||
Sales | $ | 251,749 | $ | 128,312 | $ | 33,915 | $ | 413,976 | ||||||||
Gross profit | 37,967 | 35,470 | 6,820 | 80,257 | ||||||||||||
Selling, general, and administrative expenses | 22,137 | 19,261 | 7,688 | 49,086 | ||||||||||||
Operating income (loss) | 15,830 | 16,209 | (868 | ) | 31,171 | |||||||||||
Identifiable assets* | $ | 158,015 | $ | 50,013 | $ | 195,939 | $ | 403,967 | ||||||||
Fiscal Year Ended March 29, 2015: | ||||||||||||||||
Sales | $ | 249,066 | $ | 114,957 | $ | — | $ | 364,023 | ||||||||
Gross profit | 33,619 | 32,172 | — | 65,791 | ||||||||||||
Selling, general, and administrative expenses | 19,793 | 15,582 | — | 35,375 | ||||||||||||
Operating income | 13,826 | 16,590 | — | 30,416 | ||||||||||||
Identifiable assets* | $ | 151,157 | $ | 42,860 | $ | — | $ | 194,017 | ||||||||
Fiscal Year Ended March 30, 2014: | ||||||||||||||||
Sales | $ | 244,888 | $ | 103,375 | $ | — | $ | 348,263 | ||||||||
Gross profit | 32,041 | 29,559 | — | 61,600 | ||||||||||||
Selling, general, and administrative expenses | 19,781 | 13,729 | — | 33,510 | ||||||||||||
Operating income | 12,260 | 15,830 | — | 28,090 | ||||||||||||
Identifiable assets* | $ | 141,506 | $ | 29,001 | $ | — | $ | 170,507 |
(In thousands, except per share data) | Fiscal 2016 (1) | |||||||||||||||
First | Second | Third | Fourth | |||||||||||||
Sales | $ | 101,496 | $ | 94,592 | $ | 88,375 | $ | 129,513 | ||||||||
Gross profit | 20,735 | 19,811 | 14,709 | 25,002 | ||||||||||||
Selling, general, and administrative expenses | 9,891 | 10,303 | 12,825 | 16,067 | ||||||||||||
Operating income | 10,844 | 9,508 | 1,884 | 8,935 | ||||||||||||
Net income | $ | 6,791 | $ | 5,678 | $ | 815 | $ | 4,859 | ||||||||
Basic earnings per share | $ | 0.64 | $ | 0.54 | $ | 0.08 | $ | 0.46 | ||||||||
Diluted earnings per share | $ | 0.64 | $ | 0.54 | $ | 0.08 | $ | 0.46 | ||||||||
Fiscal 2015 | ||||||||||||||||
First | Second | Third | Fourth | |||||||||||||
Sales | $ | 98,036 | $ | 88,881 | $ | 83,825 | $ | 93,281 | ||||||||
Gross profit | 18,496 | 18,122 | 13,642 | 15,531 | ||||||||||||
Selling, general, and administrative expenses | 8,875 | 8,271 | 8,697 | 9,532 | ||||||||||||
Operating income | 9,621 | 9,851 | 4,945 | 5,999 | ||||||||||||
Net income | $ | 6,021 | $ | 6,147 | $ | 3,146 | $ | 3,900 | ||||||||
Basic earnings per share | $ | 0.57 | $ | 0.58 | $ | 0.30 | $ | 0.37 | ||||||||
Diluted earnings per share | $ | 0.57 | $ | 0.58 | $ | 0.30 | $ | 0.37 |
/s/ Patrick H. Hawkins | /s/ Kathleen P. Pepski | |||
Patrick H. Hawkins | Kathleen P. Pepski | |||
Chief Executive Officer and President | Vice President, Chief Financial Officer, and Treasurer | |||
June 2, 2016 | June 2, 2016 |
Name | Age | Office | ||
Patrick H. Hawkins | 45 | Chief Executive Officer and President | ||
Kathleen P. Pepski | 61 | Vice President, Chief Financial Officer, and Treasurer | ||
Richard G. Erstad | 52 | Vice President, General Counsel and Secretary | ||
Olivier A. Guiot | 39 | President — Stauber Performance Ingredients | ||
Thomas J. Keller | 56 | Vice President — Water Treatment Group | ||
Steven D. Matthews II | 45 | Vice President — Operations | ||
Theresa R. Moran | 53 | Vice President — Quality and Support | ||
John R. Sevenich | 58 | Vice President — Industrial Group |
(a)(1) | FINANCIAL STATEMENTS OF THE COMPANY | |
The following financial statements of Hawkins, Inc. are filed as part of this Annual Report on Form 10-K: | ||
Report of Independent Registered Public Accounting Firm. | ||
Consolidated Balance Sheets at April 3, 2016 and March 29, 2015. | ||
Consolidated Statements of Income for the fiscal years ended April 3, 2016, March 29, 2015 and March 30, 2014. | ||
Consolidated Statements of Comprehensive Income for the fiscal years ended April 3, 2016, March 29, 2015 and March 30, 2014. | ||
Consolidated Statements of Shareholders’ Equity for the fiscal years ended April 3, 2016, March 29, 2015 and March 30, 2014. | ||
Consolidated Statements of Cash Flows for the fiscal years ended April 3, 2016, March 29, 2015 and March 30, 2014. | ||
Notes to Consolidated Financial Statements. | ||
(a)(2) | FINANCIAL STATEMENT SCHEDULES OF THE COMPANY | |
The additional financial data listed below is included as a schedule to this Annual Report on Form 10-K and should be read in conjunction with the financial statements presented in Part II, Item 8. Schedules not included with this additional financial data have been omitted because they are not required or the required information is included in the financial statements or the notes. | ||
The following financial statement schedule for the fiscal years 2016, 2015 and 2014. | ||
Schedule II — Valuation and Qualifying Accounts. | ||
(a)(3) | EXHIBITS | |
The exhibits of this Annual Report on Form 10-K included herein are set forth on the attached Exhibit Index. |
HAWKINS, INC. | |||||
Date: | June 2, 2016 | By | /s/ Patrick H. Hawkins | ||
Patrick H. Hawkins, Chief Executive Officer and President |
/s/ Patrick H. Hawkins | Date: | June 2, 2016 | |
Patrick H. Hawkins, Chief Executive Officer and President (Principal Executive Officer) and Director | |||
/s/ Kathleen P. Pepski | Date: | June 2, 2016 | |
Kathleen P. Pepski, Vice President, Chief Financial Officer, and Treasurer (Principal Financial Officer and Principal Accounting Officer) | |||
/s/ John S. McKeon | Date: | June 2, 2016 | |
John S. McKeon, Director, Chairman of the Board | |||
/s/ Daniel J. Stauber | Date: | June 2, 2016 | |
Daniel J. Stauber, Director | |||
/s/ Duane M. Jergenson | Date: | June 2, 2016 | |
Duane M. Jergenson, Director | |||
/s/ Daryl I. Skaar | Date: | June 2, 2016 | |
Daryl I. Skaar, Director | |||
/s/ James A. Faulconbridge | Date: | June 2, 2016 | |
James A. Faulconbridge, Director | |||
/s/ James T. Thompson | Date: | June 2, 2016 | |
James T. Thompson, Director | |||
/s/ Jeffrey L. Wright | Date: | June 2, 2016 | |
Jeffrey L. Wright, Director | |||
/s/ Mary J. Schumacher | Date: | June 2, 2016 | |
Mary J. Schumacher, Director | |||
Additions | ||||||||||||||||||||
Description | Balance at Beginning of Year | Charged to Costs and Expenses | Charged to Other Accounts | Deductions Write-Offs | Balance at End of Year | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Reserve deducted from asset to which it applies: | ||||||||||||||||||||
Year Ended April 3, 2016: | ||||||||||||||||||||
Allowance for doubtful accounts | $ | 445 | $ | 272 | $ | — | $ | 115 | $ | 602 | ||||||||||
Year Ended March 29, 2015: | ||||||||||||||||||||
Allowance for doubtful accounts | $ | 477 | $ | (32 | ) | $ | — | $ | — | $ | 445 | |||||||||
Year Ended March 30, 2014: | ||||||||||||||||||||
Allowance for doubtful accounts | $ | 469 | $ | 44 | $ | — | $ | 36 | $ | 477 |
Exhibit | Description | Method of Filing | |||
2.1 | Stock Purchase Agreement, dated November 23, 2015, by and among the Company, SPH Holdings, Inc., the stockholders of SPH Holdings, Inc. listed therein, and ICV Manager, LLC. (1) | Incorporated by Reference | |||
3.1 | Amended and Second Restated Articles of Incorporation.(2) | Incorporated by Reference | |||
3.2 | Amended and Restated By-Laws.(3) | Incorporated by Reference | |||
10.1* | Hawkins, Inc. 2004 Omnibus Stock Plan.(4) | Incorporated by Reference | |||
10.2* | Form of Non-Statutory Stock Option Agreement under the Company’s 2004 Omnibus Stock Plan.(5) | Incorporated by Reference | |||
10.3* | Hawkins, Inc. 2010 Omnibus Incentive Plan.(6) | Incorporated by Reference | |||
10.4* | Form of Performance-Based Unit Award Notice and Restricted Stock Agreement under the Company’s 2010 Omnibus Incentive Plan.(7) | Incorporated by Reference | |||
10.5* | Form of Restricted Stock Agreement under the Company’s 2010 Omnibus Incentive Plan.(8) | Incorporated by Reference | |||
10.6* | Hawkins, Inc. Executive Severance Plan.(9) | Incorporated by Reference | |||
10.7 | Commitment Letter, dated November 23, 2015, by and among the Company, U.S.Bank National Association, and JP Morgan Chase Bank, N.A. (10) | Incorporated by Reference | |||
10.8 | Credit Agreement dated as of December 23, 2015 among the Company, U.S. Bank National Association, and certain financial institutions.(11) | Incorporated by Reference | |||
21 | Subsidiaries of the registrant | Filed Electronically | |||
23.1 | Consent of Independent Registered Public Accounting Firm. | Filed Electronically | |||
31.1 | Certification by Chief Executive Officer pursuant to Rule 13a-14(a) of the Exchange Act. | Filed Electronically | |||
31.2 | Certification by Chief Financial Officer pursuant to Rule 13a-14(a) of the Exchange Act. | Filed Electronically | |||
32.1 | Section 1350 Certification by Chief Executive Officer. | Filed Electronically | |||
32.2 | Section 1350 Certification by Chief Financial Officer. | Filed Electronically | |||
101 | Financial statements from the Annual Report on Form 10-K of Hawkins, Inc. for the period ended April 3, 2016, filed with the SEC on June 2, 2016, formatted in Extensible Business Reporting Language (XBRL); (i) the Consolidated Balance Sheets at April 3, 2016 and March 29, 2015, (ii) the Consolidated Statements of Income for the fiscal years ended April 3, 2016, March 29, 2015 and March 30, 2014 (iii) the Consolidated Statements of Comprehensive Income (Loss) for the fiscal years ended April 3, 2016, March 29, 2015 and March 30, 2014 (iv) the Consolidated Statements of Shareholders’ Equity for the fiscal years ended April 3, 2016, March 29, 2015 and March 30, 2014 (v) Consolidated Statements of Cash Flows for the fiscal years ended April 3, 2016, March 29, 2015 and March 30, 2014 (iv) Notes to Consolidated Financial Statements. | Filed Electronically |
* | Management contract or compensation plan or arrangement required to be filed as an exhibit to this Annual Report on Form 10-K. |
(1) | Incorporated by reference to Exhibit 2.1 on the Company’s Current Report on Form 8-K dated November 23, 2015. |
(2) | Incorporated by reference to Exhibit 3.1 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2010. |
(3) | Incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K dated October 28, 2009 and filed November 3, 2009. |
(4) | Incorporated by reference to Appendix B to the Company’s Proxy Statement for the 2004 Annual Meeting of Shareholders filed July 23, 2004. |
(5) | Incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2008. |
(6) | Incorporated by reference to Exhibit 10.1 to the Company’s Registration Statement on Form S-8 filed June 6, 2011 (file no. 333-174735). |
(7) | Incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2010. |
(8) | Incorporated by reference to Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2010. |
(9) | Incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended July 3, 2011. |
(10) | Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated November 23, 2015 |
(11) | Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated December 23, 2015. |
1. | I have reviewed this annual report on Form 10-K of Hawkins, 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 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 we 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 the 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. |
5. | The registrant’s other certifying officer 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/ Patrick H. Hawkins | |
Patrick H. Hawkins | |
Chief Executive Officer and President |
1. | I have reviewed this annual report on Form 10-K of Hawkins, 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 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 we 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 the 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. |
5. | The registrant’s other certifying officer 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/ Kathleen P. Pepski | |
Kathleen P. Pepski | |
Vice President, Chief Financial Officer, and Treasurer |
/s/ Patrick H. Hawkins |
Patrick H. Hawkins |
Chief Executive Officer and President |
June 2, 2016 |
/s/ Kathleen P. Pepski |
Kathleen P. Pepski |
Vice President, Chief Financial Officer, and Treasurer |
June 2, 2016 |
B:U^SA_P *$M;JQLHI/A'\1]&T/4/BCX@\&>.])T7Q?IO[0]AJ4OBG1+J[
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M3\0^=_8OE?V3>>9M_M+?M\IL[-WR[O[N[Y=V,\9KI1_PDW_4#ZG_ *"?J?\
M/\J .AHKG_\ BIO^H'_Y4Z/^*F_Z@?\ Y4Z .@HKG_\ BIO^H'_Y4Z/^*F_Z
M@?\ Y4Z .@HKG_\ BIO^H'_Y4Z/^*F_Z@?\ Y4Z .@HKG_\ BIO^H'_Y4Z/^
M*F_Z@?\ Y4Z +.O_ /(#UG_L%:E_Z13TGA[_ ) .B_\ 8)TW_P!(;>L/7/\
MA)/[&U;?_8>S^S-0W8_M/.W['-NQVSC.,\4FA?\ "2?V+I'E_P!B;/[+T_9G
M^T]VW['!MW8XSMQG'% ':T5S_P#Q4W_4#_\ *G1_Q4W_ % __*G0!T%%<_\
M\5-_U __ "IT?\5-_P!0/_RIT =!17/_ /%3?]0/_P J='_%3?\ 4#_\J= '
M045S_P#Q4W_4#_\ *G1_Q4W_ % __*G0!OGI^*_S% O
M7"Z7IP#B_P!&PP%G P!OPP! R P!QU Z5NZ_P#\@/6?^P5J7_I%/2>'O^0#
MHO\ V"=-_P#2&WH A_M75/\ H7+[_P #]%_^6%']JZI_T+E]_P"!^B__ "PK
M>HH P?[5U3_H7+[_ ,#]%_\ EA1_:NJ?]"Y??^!^B_\ RPK>HH P?[5U3_H7
M+[_P/T7_ .6%']JZI_T+E]_X'Z+_ /+"MZB@#!_M75/^A &/A_
MH_AV[EUJXFO?$7BR[B$5]XMU^2.\UJ:,Y+VEF4CBM-$TO<3LTG1;:QL%"H9(
MII093W=%%?+XK%XG&UG7Q5:=:JXQ@I3>D*<%:%*E!)0I4:=I4:484J4$H4
MX1BDE^[9%P]DO#.7PRO(IR8G+<97KSK4L_S;!4Y
I4JY1A_ !\%?VC_VXC_:?[5[:U^SG^S)>E9]+_8Y\">+0
MGQ-^)FF-\D9_:S^+_A"]46.CZC;[Y+_]G_X.:S'X>,5S_9GQ"^)'CJV^T^'X
M/T=\(>#O"?P_\,:'X*\"^&M!\&^#_#.G6VC^'/"OA;2+#0/#N@:39H([33-&
MT72K>UT[3+"VC 2&TL[:&&,#A,DD]'P!Z < #] /T KS;7/B+#'J5SX9\&Z
M9+XT\66Y$=Y8V%PEMHOA]VY63Q7XB=9;/1QM#N-.A2^UVX51]FTIU82+XL%C
M\WFL-A:$(8>@G5]A1:H8'"4](2Q&)K5IJG36L85,;C:[G+W(3KM*$5[O$'$V
M1<*82GC,[QRPWUJO'"8'#4J.(Q^:YMCI0G4IY=DV48"CB1]]SX
\\,?LKF_;2/B9\:-.MG6ZM=>_:BUK2KE9?#
M/A2Y*17EM\"O#VH*\D97_A8FL7#VSZ-46N_M&>,/V@7N?V?_ /@FW9^&K3P9
MX16X\&>._P!JR/PX(OV>?A,NC/%IDG@+X)7.GQVNB_%WXCZ-"DL-U8> X=1\
M"^!&@M]-UOQ'I^N3_9=-^GPN"P^72DW]5Q^9TDI5JE9PK9)DE[
#[WQSX^U#4K+0[.YL;&.#0O#/BGQMXDU;4]3N5M=.
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M?'X!BU&34?&!L;+5KS0M'L;[5[O1=&U*[DLM/UCQ&^GV\]KX
MMZQX*TOXBW4_[#=CHFDZEXPM=+CT*UN_$Z?"?X@7'AY;R:VGOM.\,3M,D,T^
MGQWOZZ[5QC:,#H,# SUX]Z7_ #_G\A0!^9?P_P#A5I7_ UWIWQ=_9X\'_&W
MX,Z9JFO?%S_AKS2?&&B>._!/PB^,ESJVG7\'A;7]+\#^.KDZ%KGQ7M?B39:-
MXET3XO\ PLT>"QO_ (
Document and Entity Information - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Apr. 03, 2016 |
May. 27, 2016 |
Sep. 27, 2015 |
|
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Period End Date | Apr. 03, 2016 | ||
Entity Registrant Name | HAWKINS INC | ||
Entity Central Index Key | 0000046250 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2016 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --04-03 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 361.3 | ||
Entity Common Stock, Shares Outstanding | 10,565,434 |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Apr. 03, 2016 |
Mar. 29, 2015 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 602 | $ 445 |
Intangible assets, accumulated amortization | $ 6,370 | $ 3,933 |
Common stock, shares authorized (shares) | 30,000,000 | 30,000,000 |
Common stock, par value (usd per share) | $ 0.05 | $ 0.05 |
Common stock, shares issued (shares) | 10,512,471 | 10,564,949 |
Common stock, shares outstanding (shares) | 10,512,471 | 10,564,949 |
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Apr. 03, 2016 |
Mar. 29, 2015 |
Mar. 30, 2014 |
|
Sales | $ 413,976 | $ 364,023 | $ 348,263 |
Cost of sales | (333,719) | (298,232) | (286,663) |
Gross profit | 80,257 | 65,791 | 61,600 |
Selling, general and administrative expenses | (49,086) | (35,375) | (33,510) |
Operating income | 31,171 | 30,416 | 28,090 |
Interest (expense) income, net | (805) | 38 | (29) |
Income before income taxes | 30,366 | 30,454 | 28,061 |
Income tax provision | 12,223 | 11,240 | 9,967 |
Net income | $ 18,143 | $ 19,214 | $ 18,094 |
Weighted average number of shares outstanding-basic | 10,524,730 | 10,568,582 | 10,544,467 |
Weighted average number of shares outstanding-diluted | 10,578,042 | 10,633,554 | 10,599,755 |
Basic earnings per share: | |||
Basic earnings per share | $ 1.72 | $ 1.82 | $ 1.72 |
Diluted earnings per share | |||
Diluted earnings per share | 1.72 | 1.81 | 1.71 |
Cash dividends declared per common share | $ 0.8 | $ 0.76 | $ 0.72 |
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Apr. 03, 2016 |
Mar. 29, 2015 |
Mar. 30, 2014 |
|
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 18,143 | $ 19,214 | $ 18,094 |
Unrealized gain (loss) on available-for-sale investments | 25 | 11 | (47) |
Unrealized gain on post-retirement liability | 2 | 1 | 109 |
Total other comprehensive income | 27 | 12 | 62 |
Total comprehensive income | $ 18,170 | $ 19,226 | $ 18,156 |
Nature of Business and Significant Accounting Policies |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 03, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nature of Business and Significant Accounting Policies | Nature of Business and Significant Accounting Policies Nature of Business - We have three reportable segments: Industrial, Water Treatment and Health and Nutrition. The Industrial Group specializes in providing industrial chemicals, products and services to industries such as agriculture, chemical processing, electronics, energy, food, pharmaceutical, plating and power generation. This group also manufactures and sells certain food-grade products, including liquid phosphates, lactates and other blended products. The Water Treatment Group specializes in providing chemicals, equipment and solutions for potable water, municipal and industrial wastewater, industrial process water and non-residential swimming pool water. This group has the resources and flexibility to treat systems ranging in size from a single small well to a multi-million-gallon-per-day facility. We established the Health and Nutrition segment of our business in December 2015 through our acquisition of Stauber Performance Ingredients (“Stauber”). Our Health and Nutrition Group specializes in providing ingredient distribution, processing and formulation solutions to manufacturers of nutraceutical, functional food and beverage, personal care, dietary supplement and other nutritional food and health and wellness products. This group offers a diverse product portfolio including minerals, botanicals and herbs, vitamins and amino acids, excipients, joint products, sweeteners and enzymes. Fiscal Year - Our fiscal year is a 52 or 53-week year ending on the Sunday closest to March 31. Our fiscal year ended April 3, 2016 (“fiscal 2016”) was 53 weeks. Our fiscal year ended March 29, 2015 (“fiscal 2015”) and March 30, 2014 (“fiscal 2014”) were 52 weeks. The fiscal year ending April 2, 2017 (“fiscal 2017”) will also be 52 weeks. Principles of Consolidation - The consolidated financial statements include the accounts of Hawkins, Inc. and its wholly-owned subsidiaries. All intercompany transactions and accounts have been eliminated. Estimates - The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. Revenue Recognition - We recognize revenue when there is evidence that the customer has agreed to purchase the product, the price and terms of the sale are fixed, the product has shipped and title has passed to our customer, performance has occurred, and collection of the receivable is reasonably assured. Shipping and Handling - All shipping and handling amounts billed to customers are included in revenues. Costs incurred related to the shipping and the handling of products are included in cost of sales. Fair Value Measurements - The financial assets and liabilities that are re-measured and reported at fair value for each reporting period include marketable securities, as well as contingent consideration payable in fiscal 2015 related to the acquisition of Advance Chemical Solutions, Inc. (“ACS”). There are no fair value measurements with respect to nonfinancial assets or liabilities that are recognized or disclosed at fair value in our consolidated financial statements on a recurring basis. Assets and liabilities measured at fair value are classified using the following hierarchy, which is based upon the transparency of inputs to the valuation as of the measurement date: Level 1: Valuation is based on observable inputs such as quoted market prices (unadjusted) for identical assets or liabilities in active markets. Level 2: Valuation is based on inputs such as quoted market prices for similar assets or liabilities in active markets or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3: Valuation is based upon other unobservable inputs that are significant to the fair value measurement. In making fair value measurements, observable market data must be used when available. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. Cash Equivalents - Cash equivalents include all liquid debt instruments (primarily cash funds and money market accounts) purchased with an original maturity of three months or less. The balances maintained at financial institutions may, at times, exceed federally insured limits. Investments - Available-for-sale securities consist of certificates of deposit (“CD’s”) and municipal bonds and are valued at current market value, with the resulting unrealized gains and losses excluded from earnings and reported, net of tax, as a separate component of shareholders’ equity until realized. Any impairment loss to reduce an investment’s carrying amount to its fair market value is recognized in income when a decline in the fair market value of an individual security below its cost or carrying value is determined to be other than temporary. As of April 3, 2016, we did not own any available-for-sale securities. Trade Receivables and Concentrations of Credit Risk - Financial instruments, which potentially subject us to a concentration of credit risk, principally consist of trade receivables. We sell our principal products to a large number of customers in many different industries. There are no concentrations of credit risk with a single customer from a particular service or geographic area that would significantly impact us in the near term. To reduce credit risk, we routinely assess the financial strength of our customers. We record an allowance for doubtful accounts to reduce our receivables to an amount we estimate is collectible from our customers. Estimates used in determining the allowance for doubtful accounts are based on historical collection experience, current trends, aging of accounts receivable and periodic evaluations of our customers’ financial condition. Our cash balances are held at two separate financial institutions where the cash balances may exceed federally insured limits. The institutions are two of the largest commercial banking institutions in the country and both have maintained strong credit ratings. Inventories - Inventories, consisting primarily of finished goods, are primarily valued at the lower of cost or net realizable value, with cost for approximately 70% of our inventory determined using the last-in, first-out (“LIFO”) method. Cost for the other 30% of our total inventory is determined using the first-in, first-out (“FIFO”) method. Property, Plant and Equipment - Property is stated at cost and depreciated or amortized over the lives of the assets, using the straight-line method. Estimated lives are: 10 to 40 years for buildings and improvements; 3 to 20 years for machinery and equipment; and 3 to 10 years for transportation equipment and office furniture and equipment including computer systems. Leasehold improvements are depreciated over the lesser of their estimated useful lives or the remaining lease term. Significant improvements that add to productive capacity or extend the lives of properties are capitalized. Costs for repairs and maintenance are charged to expense as incurred. When property is retired or otherwise disposed of, the cost and related accumulated depreciation or amortization are removed from the accounts and any related gains or losses are included in income. We review the recoverability of long-lived assets to be held and used, such as property, plant and equipment, when events or changes in circumstances occur that indicate the carrying value of the asset group may not be recoverable, such as prolonged industry downturn or significant reductions in projected future cash flows. The assessment of possible impairment is based on our ability to recover the carrying value of the asset group from the expected future pre-tax cash flows (undiscounted) of the related operations. If these cash flows are less than the carrying value of such asset group, an impairment loss would be measured by the amount the carrying value exceeds the fair value of the long-lived asset group. The measurement of impairment requires us to estimate future cash flows and the fair value of long-lived assets. No long-lived assets were determined to be impaired during fiscal years 2016, 2015 or 2014. Goodwill and Identifiable Intangible Assets - Goodwill represents the excess of the cost of acquired businesses over the fair value of identifiable tangible net assets and identifiable intangible assets purchased. Goodwill is tested at least annually for impairment, and is tested for impairment more frequently if events or changes in circumstances indicate that the asset might be impaired. As of January 1, 2016, the company performed an analysis of qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform a two-step goodwill impairment test. Based on management’s analysis of qualitative factors, we determined that it was not necessary to perform a two-step goodwill impairment test for any reporting unit. Our primary identifiable intangible assets include customer lists, trade secrets, non-competition agreements, trademarks and trade names acquired in previous business acquisitions. Identifiable intangible assets with finite lives are amortized whereas identifiable intangible assets with indefinite lives are not amortized. The values assigned to the intangible assets with finite lives are being amortized on average over approximately 14 years. Identifiable intangible assets that are subject to amortization are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Identifiable intangible assets not subject to amortization are tested for impairment annually or more frequently if events warrant. The impairment test consists of a qualitative assessment to determine whether it is more likely than not that the asset is impaired. Based on management’s analysis of qualitative factors, we determined that it was not necessary to perform a quantitative impairment test for fiscal 2016. Impairment assessments were also completed in the fourth quarters of fiscal 2015 and 2014, which resulted in no impairment charges for either of these fiscal years. Income Taxes - In the preparation of our consolidated financial statements, the calculation of income taxes by management is based upon the estimated effective rate applicable to operating results for the full fiscal year. This includes estimating the current tax liability as well as assessing differences resulting from different treatment of items for tax and book accounting purposes. Differences that are temporary in nature result in deferred tax assets and liabilities, which are recorded on the consolidated balance sheet, while differences that are permanent in nature impact the income tax expense recorded on the income statement and impact the effective tax rate for the fiscal year. The deferred tax assets and liabilities are analyzed regularly and management assesses the likelihood that deferred tax assets will be recovered from future taxable income. We record any interest and penalties related to income taxes as income tax expense in the consolidated statements of income. The effect of income tax positions are recognized only if those positions are more likely than not of being sustained. Changes in recognition or measurement are made as facts and circumstances change. See note 11 for further information regarding the recording of a liability and offsetting receivable regarding an uncertain tax position taken by Stauber prior to its acquisition by us. Stock-Based Compensation - We account for stock-based compensation on a fair value basis. The estimated grant date fair value of each stock-based award is recognized in expense over the requisite service period (generally the vesting period). Non-vested share awards are recorded as expense over the requisite service periods based on the market value on the date of grant. Earnings Per Share - Basic earnings per share (“EPS”) are computed by dividing net income by the weighted-average number of common shares outstanding. Diluted EPS are computed by dividing net income by the weighted-average number of common shares outstanding including the incremental shares assumed to be issued upon the exercise of stock options and the incremental shares assumed to be issued as performance units and restricted stock. Basic and diluted EPS were calculated using the following:
There were no shares or stock options excluded from the calculation of weighted average common shares for diluted EPS for fiscal 2016, 2015 or 2014. Derivative Instruments and Hedging Activities - We do not have any freestanding or embedded derivatives and it is our practice to not enter into contracts that contain them. Recently Issued Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09 which provides accounting guidance intended to improve the accounting for share-based payment transactions. This guidance outlines new provisions intended to simplify various aspects related to accounting for share-based payments and their presentation in the financial statements and will be effective for years beginning after December 15, 2016 (our fiscal year ending April 1, 2018) and interim periods within those years. We are currently evaluating the impact of this accounting pronouncement on our results of operations and financial position. In March 2016, the FASB issued ASU 2016-02 which provides new accounting guidance requiring lessees to recognize most leases as assets and liabilities on the balance sheet. This guidance will be effective for interim periods beginning after December 15, 2018 (our fiscal year ended March 30, 2020). We are currently evaluating the impact of this accounting pronouncement on our results of operations and financial position. In January 2016, the FASB issued ASU 2016-01 which provides guidance that addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. This guidance will be effective for annual reporting periods beginning after December 15, 2017 (our fiscal year ending March 31, 2019), and interim periods within those annual periods. Early adoption is not permitted. We are currently evaluating the impact that this guidance will have on our results of operations and financial position. In September 2015, the FASB issued ASU 2015-16 which eliminates the requirement for an acquirer to retrospectively adjust the financial statements for measurement-period adjustments that occur in periods after a business combination is consummated. The new guidance is effective for fiscal years beginning after December 15, 2015 (our fiscal year ending April 2, 2017), and interim periods within those years. We do not expect adoption of this accounting pronouncement to have a significant impact on our consolidated financial statements or results of operations. In July 2015, the FASB issued ASU 2015-11 which requires company to change the measurement principal for inventory measured using the FIFO or average cost method from the lower of cost or market to the lower of cost and net realizable value. Treatment of inventory valued under the last-in, first-out (“LIFO”) method is unchanged by this guidance. The new guidance will be applied prospectively and will be effective for fiscal years beginning after December 15, 2016 (our fiscal year ending April 1, 2018), and interim periods within those years. We are currently evaluating the impact of this accounting pronouncement on our results of operations and financial position. In May 2014, the FASB issued ASU 2014-09 which provides new accounting requirements for recognition of revenue from contracts with customers. The requirements of the new standard will be effective for annual reporting periods beginning after December 15, 2017 (our fiscal year ending March 31, 2019), and interim periods within those annual periods. We are currently evaluating the impact of this accounting pronouncement on our results of operations and financial position. Recently Adopted Accounting Pronouncements In April 2015, the FASB issued ASU 2015-03 which simplifies the presentation of debt issuance costs. The new guidance requires debt issuance costs related to a recognized debt liability to be presented as a direct deduction from the debt liability on the balance sheet. The guidance is effective for fiscal years beginning after December 15, 2015, with early adoption permitted. We elected to early adopt this guidance in our third quarter of fiscal 2016. In November 2015, the FASB issued ASU 2015-17 requiring entities with a classified balance sheet to present all deferred tax assets and liabilities as non-current. The new guidance is effective for fiscal years beginning after December 15, 2016 with early adoption permitted. We elected to early adopt this guidance prospectively effective December 28, 2016, the beginning of our fourth quarter of fiscal 2016. Accordingly, all of our deferred tax assets and liabilities have been presented as long-term liabilities on the April 3, 2016 consolidated balance sheet. |
Business Combinations |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 03, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination Disclosure [Text Block] | Business Combinations Acquisition of Stauber Performance Ingredients: On December 23, 2015, we acquired Stauber for $157.0 million on a cash-free, debt-free basis subject to a customary working capital adjustment. The total consideration for the acquisition was $158.2 million ($156.7 million net of cash acquired). We paid $156.0 million in cash at closing and paid an additional $2.2 million in early fiscal 2017 based upon closing cash, debt and working capital balances. The purchase was funded with $131.0 million of proceeds from the credit facility described more fully in Note 6 as well as cash on hand. Stauber operates out of facilities in New York and California and blends and distributes specialty products and ingredients to the nutritional, food, pharmaceutical, cosmetic and pet care industries. The acquisition expands our portfolio of value-added specialty products within new markets. Stauber had revenues of approximately $118.0 million for the twelve months ended December 23, 2015, the date of the acquisition. The results of operations since the acquisition date, and the assets, including the goodwill associated with the acquisition, are included in our newly formed Health and Nutrition operating segment. Direct acquisition costs of $3.3 million, consisting mainly of professional and consulting fees, were expensed as incurred during the year ended April 3, 2016, and are classified as selling, general, and administrative expenses in our consolidated statement of income, and are reported in our Health and Nutrition segment. The acquisition was accounted for under the acquisition method of accounting. Accordingly, the cost to acquire Stauber was allocated to the underlying net assets in proportion to estimates of their respective fair values. The fair value of acquired property, plant and equipment of $11.0 million was valued using a cost approach with consideration given to the continuation of the property in the current operation at the present locations. The fair value of acquired identifiable intangible assets is $71.5 million. The acquired intangible assets, all of which are finite-lived, have a weighted average useful life of 16.3 years and are being amortized on a straight-line basis. The intangible assets include customer relationships of $66.0 million (17 years life), trade name of $4.0 million (10 years life), non-competition agreements of $1.3 million (3.3 years weighted average life) and order backlog of $0.1 million. The fair value of acquired identifiable intangible assets was determined using the income approach. In performing these valuations, the key underlying probability-adjusted assumptions of the discounted cash flows were projected revenues, gross margin expectations and operating cost estimates. The valuations were based on the information that was available as of the acquisition date and the expectations and assumptions that have been deemed reasonable by management. There are inherent uncertainties and management judgment required in these determinations. The fair value measurements of the assets acquired were based on valuations involving significant unobservable inputs, or Level 3 in the fair value hierarchy. None of the intangible assets are expected to be deductible for income tax purposes. As a result, a $28.6 million deferred tax liability was recorded on the opening balance sheet for the amount of non-deductible amortization expense. The purchase price of Stauber exceeded the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed by $84.2 million. Cash flows used to determine the purchase price included strategic and synergistic benefits (investment value) specific to Hawkins, which resulted in a purchase price in excess of the fair value of identifiable net assets. The purchase price also included the fair values of other assets that were not identifiable, not separately recognizable under accounting rules (e.g., assembled workforce) or of immaterial value in addition to a going-concern element that represents our ability to earn a higher rate of return on the group of assets than would be expected on the separate assets as determined during the valuation process. None of the goodwill is expected to be deductible for income tax purposes. The allocation of the purchase price to trade receivables, income taxes and goodwill is subject to change within the measurement period (up to one year from the acquisition date). The fair value of trade receivables is open pending the collection of certain uncollected balances. Any adjustment to the preliminary allocation of fair value of trade receivables will result in an adjustment to goodwill. Income taxes and related accounts are open pending the finalization of Stauber’s December 23, 2015 tax returns. Any adjustment to the income tax balances recorded will result in an adjustment to the amount recorded as a payable to the prior owners and/or goodwill. The following table summarizes the fair value measurement of the assets acquired and liabilities assumed as of the acquisition date:
(a) In addition to these balances, $7.3 million of cash and current accrued liabilities were recorded that relate to stock and other acquisition-related compensation payments, which were recorded by Stauber as of the acquisition date but were paid subsequent to the acquisition date. Note: Included in our consolidated balance sheet is an income tax receivable of $4.6 million related to pre-acquisition income taxes, with an offsetting liability payable to the prior owners as these amounts will be paid to them upon receipt. The following pro forma information has been prepared as if the Stauber acquisition and the borrowing to finance the acquisition had occurred as of the beginning of the fiscal years presented. The unaudited pro forma information is not necessarily indicative of what our consolidated results of operations actually would have been had the acquisition occurred at the beginning of each fiscal year, nor is it indicative of our future operational results.
The unaudited pro forma financial information above is adjusted to reflect the following: (a) interest expense, including amortization of debt issuance costs, related to the $131.0 million of debt used to fund the acquisition; (b) amortization expense related to the $71.5 million of identifiable intangible assets recognized in conjunction with the acquisition; (c) elimination of amortization of intangibles and interest expense previously reflected on Stauber’s financial statements; (d) elimination of stock and other acquisition-related compensation recorded by Stauber, and transaction-related expenses recorded by us; and (e) recording income taxes at an estimated combined federal and state statutory rate of approximately 38% on these pre-tax adjustments. Acquisition of Davis Supply, Inc.: On September 18, 2015, we acquired substantially all of the assets of Davis Supply, Inc. (“Davis”) under the terms of an asset purchase agreement with Davis and its shareholders. We paid $4.5 million cash at closing, using available cash on hand to fund the acquisition. Davis was a water treatment chemical distribution company operating in Florida with revenues of approximately $5.0 million in calendar year 2014. We have integrated this business into our existing Florida locations. The results of operations after the date of acquisition and the acquired assets are included in our Water Treatment Segment. Costs associated with this transaction were not material and were expensed as incurred. The acquisition has been accounted for under the acquisition method of accounting, under which the total purchase price is allocated to the net tangible and intangible assets of Davis acquired based on their estimated fair values. We estimated the fair values of the assets acquired and liabilities assumed using a discounted cash flow analysis (income approach). The following table summarizes the allocation of the purchase price to the fair values assigned to the assets acquired and liabilities assumed as of the acquisition date:
Intangible assets recognized in connection with this acquisition consist of $2.4 million related to customer relationships to be amortized over 20 years, and $0.1 million related to a non-compete agreement to be amortized over five years. The goodwill recognized as a result of this acquisition is primarily attributable to strategic and synergistic benefits, as well as the assembled workforce. Such goodwill is expected to be deductible for tax purposes. Acquisition of The Dumont Company, Inc.: On October 20, 2014, we acquired substantially all of the assets of The Dumont Company, Inc. (“Dumont”) under the terms of an asset purchase agreement with Dumont and its shareholders. We paid $10.1 million in cash including a working capital adjustment, using available cash on hand to fund the acquisition. Dumont was a water treatment chemical distribution company with revenues of approximately $14.0 million in calendar year 2013. Through this acquisition we added seven operating locations across Florida. The results of operations since the acquisition date, and the assets, including the goodwill associated with this acquisition, are included in our Water Treatment segment. Costs associated with this transaction were not material to our company and were expensed as incurred. The acquisition has been accounted for under the acquisition method of accounting, under which the total purchase price is allocated to the net tangible and intangible assets of Dumont acquired in connection with the acquisition based on their estimated fair values. We estimated the fair values of the assets acquired and liabilities assumed using a discounted cash flow analysis (income approach). The following table summarizes the preliminary allocation of the purchase price to the fair values assigned to the assets acquired and liabilities assumed at the date of the Dumont acquisition:
Intangible assets recognized in connection with this acquisition consist of $2.8 million related to customer relationships to be amortized over 20 years and $0.7 million related to a trade name to be amortized over four years. The goodwill recognized as a result of this acquisition is primarily attributable to strategic and synergistic benefits, as well as the assembled workforce. Such goodwill is expected to be deductible for tax purposes. Acquisition of Advance Chemical Solutions, Inc.: On October 1, 2013, we acquired substantially all of the assets of ACS. We paid $2.9 million in cash, including $0.5 million of contingent consideration based on the achievement of certain financial performance targets. The ACS acquisition was accounted for under the acquisition method of accounting, under which the total estimated purchase price is allocated to the net tangible and intangible assets acquired based on their estimated fair values. We estimated the fair values of the assets acquired and liabilities assumed to be $2.8 million using a discounted cash flow analysis (income approach). ACS had revenues of approximately $4.0 million for the 12 months ended September 30, 2013. The results of its operations since the acquisition date, and the assets, are included in our Water Treatment segment. |
Cash and Cash Equivalents and Investments |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 03, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents and Investments | Cash and Cash Equivalents and Investments The following table presents information about our financial assets that are measured at fair value on a recurring basis as of April 3, 2016 and March 29, 2015, and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value.
As of March 29, 2015, our financial assets that were measured at fair value on a recurring basis were CD’s and municipal bonds, with maturities ranging from three months to three years, which fall within valuation technique Level 2. The CD’s and municipal bonds were classified as investments in current assets and noncurrent assets on the consolidated balance sheets. The carrying value of cash and cash equivalents accounts approximates fair value, as maturities are three months or less. During the fiscal year ended April 3, 2016, we sold all available-for-sale securities to partially fund the purchase of Stauber as discussed in Note 2. Realized gains and losses were not material for fiscal 2016, 2015 or 2014. |
Inventories |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 03, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories Inventories at April 3, 2016 and March 29, 2015 consisted of the following:
The FIFO value of inventories accounted for under the LIFO method was $36.5 million at April 3, 2016 and $39.0 million at March 29, 2015. The remainder of the inventory was valued and accounted for under the FIFO method. We decreased the LIFO reserve by $1.4 million in fiscal 2016 due primarily to lower levels of certain inventory on hand at the end of the year, as well as lower commodity costs as compared to the previous year, and increased the reserve $0.4 million in fiscal 2015 due primarily to higher levels of inventory at the end of that year. |
Goodwill and Intangible Assets |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 03, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets | Goodwill and Other Identifiable Intangible Assets The changes in the carrying amount of goodwill for each of our three reportable segments were as follows:
As of April 3, 2016, goodwill amounted to $97.7 million, an increase of $86.0 million from the balance at March 29, 2015. The increase in goodwill relates to the Stauber and Davis acquisitions discussed more fully in Note 2. The following is a summary of our intangible assets as of April 3, 2016 and March 29, 2015:
Intangible asset amortization expense was $2.4 million during fiscal 2016, $0.9 million during fiscal 2015, and $0.7 million during fiscal 2014. The estimated future amortization expense for identifiable intangible assets during the next five years is as follows:
|
Debt |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 03, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Note 6 – Debt On December 23, 2015, in connection with the Stauber acquisition described more fully in Note 2, we entered into a credit agreement (the “Credit Agreement”) with U.S. Bank National Association (“U.S. Bank”), as Lead Arranger, and Sole Bookrunner, and other lenders from time to time party thereto (collectively, the “Lenders”), whereby U.S. Bank is also serving as Administrative Agent. The Credit Agreement provides us with senior secured credit facilities (the “Credit Facility”) totaling $165.0 million, consisting of a $100.0 million senior secured term loan credit facility (the “Term Loan Facility”) and a $65.0 million senior secured revolving loan credit facility (the “Revolving Loan Facility”). The Revolving Loan Facility includes a letter of credit subfacility in the amount of $5.0 million and a swingline subfacility in the amount of $8.0 million. The Term Loan facility requires mandatory quarterly repayments as outlined in the table below with the remainder of the loan due at maturity. The Credit Facility is scheduled to terminate on December 23, 2020. The Credit Facility is secured by substantially all of our personal property assets and those of our subsidiaries. Borrowings under the Credit Facility bear interest at a rate per annum equal to one of the following, plus, in both cases, an applicable margin based upon our leverage ratio: (a) LIBOR for an interest period of one, two, three or six months as selected by us, reset at the end of the selected interest period, or (b) a base rate determined by reference to the highest of (1) U. S. Bank’s prime rate, (2) the Federal Funds Effective Rate plus 0.5%, or (3) one-month LIBOR for U.S. dollars plus 1.0%. The LIBOR margin is 1.125%, 1.25% or 1.5%, depending on our leverage ratio. The base rate margin is 0.125%, 0.25% or 0.5%, depending on our leverage ratio. At April 3, 2016, the effective interest rate on our borrowings was approximately 1.9%. We used $131.0 million of the proceeds from the Credit Facility to fund our acquisition of Stauber. We may use the remaining $34.0 million for working capital, capital expenditures, restricted payments and acquisitions permitted under the Credit Facility, and other general corporate purposes. In addition to paying interest on the outstanding principal under the Credit Facility, we are required to pay a commitment fee on the unutilized commitments thereunder. The commitment fee is 0.25% to 0.3%, depending on our leverage ratio. Debt issuance costs of $0.7 million paid to the lenders are reflected as a reduction of debt and are being amortized on a straight line basis over the term of the credit facility. During the fiscal year ended April 3, 2016, less than $0.1 million of debt issuance costs were expensed. As of April 3, 2016, $0.6 million of debt issuance costs were reflected as a reduction of debt on our balance sheet. The Credit Agreement requires us to maintain (a) a minimum fixed charge coverage ratio of 1.15 to 1.00 and (b) a maximum total cash flow leverage ratio of 3.0 to 1.0. The Credit Agreement also contains other customary affirmative and negative covenants, including covenants that restrict our ability to incur additional indebtedness, dispose of significant assets, make certain investments, including any acquisitions other than permitted acquisitions, make certain payments, enter into sale and leaseback transactions, grant liens on our assets or enter into rate management transactions, subject to certain limitations. We will be permitted to make distributions, pay dividends and repurchase shares so long as no default or event of default exists or would exist as a result thereof. As of April 3, 2016, we were in compliance with all required covenants. Debt at April 3, 2016 consisted of the following:
Scheduled annual maturities of debt as of April 3, 2016 are as follows:
We had no debt as of March 29, 2015. |
Share Based Compensation |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 03, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation | Share-Based Compensation Performance-Based Restricted Stock Units. Our Board of Directors has approved a performance-based equity compensation arrangement for our executive officers. This performance-based arrangement provides for the grant of performance-based restricted stock units that represent a possible future issuance of restricted shares of our common stock based on our pre-tax income target for the applicable fiscal year. The actual number of restricted shares to be issued to each executive officer will be determined when our final financial information becomes available after the applicable fiscal year and will be between zero shares and 44,447 shares in the aggregate for fiscal 2016. The restricted shares issued will fully vest two years after the last day of the fiscal year on which the performance is based. We are recording the compensation expense for the outstanding performance share units and then-converted restricted stock over the life of the awards. The following table represents the restricted stock activity for fiscal 2016:
The weighted average grant date fair value of restricted shares issued in fiscal 2016, 2015 and 2014 was $40.89, $34.45, and $40.25, respectively. We recorded compensation expense on performance-based restricted stock of approximately $1.2 million for fiscal 2016, $1.1 million for fiscal 2015 and $0.8 million for fiscal 2014, substantially all of which was recorded in selling, general and administrative (“SG&A”) expense in the Consolidated Statements of Income. The total fair value of performance-based restricted stock units vested in fiscal 2016 was $2.0 million compared to $0.8 million in fiscal 2015 and $1.3 million in fiscal 2014. Until the performance-based restricted stock units result in the issuance of restricted stock, the amount of expense recorded each period is dependent upon our estimate of the number of shares that will ultimately be issued and our then current common stock price. Upon issuance of restricted stock, we record compensation expense over the remaining vesting period using the award date closing price. Unrecognized compensation expense related to non-vested restricted stock and non-vested restricted share units as of April 3, 2016 was $1.2 million and is expected to be recognized over a weighted average period of 1.4 years. The benefits of tax deductions that vary from the recognized compensation costs from share-based compensation are recorded as a change in additional paid-in capital rather than a deduction of taxes paid. The amount of excess tax benefit (expense) recognized and recorded in additional paid-in capital resulting from share-based compensation cost was nominal in fiscal 2016, $1.0 million in fiscal 2015 and $(0.2) million in 2014. Restricted Stock Awards. As part of their retainer, our non-employee directors receive restricted stock for their Board services. The restricted stock awards are expensed over the requisite vesting period, which begins on the date of issuance and ends on the date of the next Annual Meeting of Shareholders, based on the market value on the date of grant. The following table represents the Board’s restricted stock activity for fiscal 2016:
Annual expense related to the value of restricted stock was $0.2 million for each of fiscal 2016, 2015 and 2014, all of which was recorded in SG&A expense in the Consolidated Statements of Income. Unrecognized compensation expense related to non-vested restricted stock awards as of April 3, 2016 was $0.1 million and is expected to be recognized over a weighted average period of 0.3 years. Stock Option Awards. Our Board of Directors (the “Board”) previously approved a long-term incentive equity compensation arrangement for our executive officers that provided for the grant of non-qualified stock options that vested at the end of a three-year period, although no stock options have been granted under this arrangement since the fiscal year ended March 28, 2010. During fiscal 2015, 9,333 options were exercised with an exercise price of $19.90. As of April 3, 2016 we had no stock options outstanding. No expense was recorded in fiscal 2016, 2015 or 2014 related to the value of stock options. |
Share Repurchase Program |
12 Months Ended |
---|---|
Apr. 03, 2016 | |
Share Repurchase Program [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Share Repurchase Program On May 29, 2014, our Board authorized a share repurchase program of up to 300,000 shares of our outstanding common shares. Under the program, we are authorized to repurchase shares for cash on the open market or in privately negotiated transactions subject to applicable securities laws and regulations. Upon repurchase of the shares, we reduce our common stock for the par value of the shares with the excess applied against additional paid-in capital. We repurchased 127,852 of common stock at an aggregate purchase price of $4.8 million during fiscal 2016, and 59,602 shares of common stock at an aggregate purchase price of $2.2 million during fiscal 2015. As of April 3, 2016, the number of shares available to be purchased under the share repurchase program was 112,546. |
Profit Sharing, Employee Stock Ownership, Employee Stock Purchase and Pension Plans |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 29, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Profit Sharing, Employee Stock Ownership Plan, Employee Stock Purchase Plan and Defined Contribution Pension Plan Contribution Expense | Profit Sharing, Employee Stock Ownership, Employee Stock Purchase and Pension Plans Company sponsored plans. The majority of our non-bargaining unit employees are eligible to participate in a company-sponsored profit sharing plan. Contributions are made at our discretion subject to a maximum amount allowed under the Internal Revenue Code. The profit sharing plan contribution level for each employee depends upon date of hire, with those employees hired after April 1, 2012 eligible to receive a contribution that is 50% of the contribution made for employees hired on or before April 1, 2012. Our contribution to the profit sharing plan for fiscal 2016, fiscal 2015 and fiscal 2014 was 5% of each employee’s eligible compensation for employees hired on or before April 1, 2012. In addition to the discretionary employer contribution described above, the profit sharing plan includes a 401(k) plan that allows employees to contribute pre-tax earnings up to the maximum amount allowed under the Internal Revenue Code, with an employer match of up to 5% of the employee’s eligible compensation. We have an employee stock ownership plan (“ESOP”) covering the majority of our non-bargaining unit employees. Contributions are made at our discretion subject to a maximum amount allowed under the Internal Revenue Code. The ESOP contribution level for each employee depends upon date of hire, with those employees hired after April 1, 2012 eligible to receive a contribution that is 50% of the contribution made for employees hired on or before April 1, 2012. Our contribution to the ESOP for fiscal 2016, fiscal 2015 and fiscal 2014 was 5% of each employee’s eligible compensation for employees hired on or before April 1, 2012. As described in Note 2, we acquired Stauber on December 23, 2015. Concurrent with the acquisition, Stauber’s existing company sponsored plans were terminated. Effective January 1, 2016, Stauber employees became eligible for the 401(k) component of the profit sharing plan described above, including the employer match component We have an employee stock purchase plan (“ESPP”) covering substantially all of our employees. The ESPP allows employees to purchase newly-issued shares of the Company’s common stock at a discount from market. The number of new shares issued under the ESPP was 33,550 in fiscal 2016, 31,383 in fiscal 2015 and 28,214 in fiscal 2014. In March 2013, concurrent with our withdrawal from a multiemployer pension plan described below, we established a retirement plan and ESOP for our collective bargaining unit employees. Each of these plans is subject to a maximum amount allowed under the Internal Revenue Code. The retirement plan provides for a contribution of 5% of each employee’s eligible wages annually for employees who were eligible to enter the plan on March 1, 2013 and a contribution of 2.5% of each employee’s eligible wages annually for employees who entered the plan subsequent to March 1, 2013. Additionally, the retirement plan includes a 401(k) plan that will allow employees to contribute pre-tax earnings up to the maximum amount allowed under the Internal Revenue Code, with an employer match of up to 5% of the employee’s eligible compensation. The ESOP provides for contributions of 5% of each employee’s eligible wages annually for employees who were eligible to enter the plan on March 1, 2013, and a contribution of 2.5% of each employee’s eligible wages annually for employees who enter the plan subsequent to March 1, 2013. The following represents the contribution expense for the company sponsored profit sharing, ESOP, ESPP and 401(k) plans for fiscal 2016, 2015 and 2014:
Multiemployer pension plan. In fiscal 2013, we concluded negotiations with two collective bargaining units to discontinue our participation in the Central States, Southeast and Southwest Areas Pension Fund (“CSS” or “the plan”), a collectively bargained multiemployer pension plan. Payment of our share of the unfunded vested benefit liability will be made over 20 years and is subject to a cap. At the end of the 20-year period we will have no further liability, even if our share of the unfunded vested benefit liability has not yet been paid in full. The cash payments to be made total approximately $9.3 million, or $467,000 per year. Our payments began in fiscal 2014. |
Commitments and Contingencies |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 03, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies Leases — We have various operating leases for buildings and land on which some of our operations are located as well as trucks utilized for deliveries in certain branches. Future minimum lease payments due under operating leases with an initial term of one year or more at April 3, 2016 are as follows:
Total rental expense for fiscal years 2016, 2015 and 2014 was as follows:
Litigation - As of April 3, 2016 there were no material pending legal proceedings, other than ordinary routine litigation incidental to the business, to which we or any of our subsidiaries are a party or of which any of our property is the subject. Legal fees associated with such matters are expensed as incurred. Asset Retirement Obligations - We have three leases of land which contain terms that state that at the end of the lease term, we have a specified amount of time to remove the property and buildings. These leases expire in 2018, 2023 and 2034. At that time, anything that remains on the land becomes the property of the lessor, and the lessor has the option to either maintain the property or remove the property at our expense. We are currently negotiating an extension for a period of 15-20 years for the lease which expires in 2018. We have not been able to reasonably estimate the fair value of the asset retirement obligations, primarily due to the combination of the following factors: The leases do not expire in the near future; we have a history of extending the leases with the lessors and currently intend to do so at expiration of the lease periods; the lessors do not have a history of terminating leases with their tenants; and because it is more likely than not that the buildings will have value at the end of the lease life and therefore, may not be removed by either the lessee or the lessor. Therefore, in accordance with accounting guidance related to asset retirement and environmental obligations, we have not recorded an asset retirement obligation as of April 3, 2016. We will continue to monitor the factors surrounding the requirement to record an asset retirement obligation and will recognize the fair value of a liability in the period in which it is incurred and a reasonable estimate can be made. |
Income Taxes |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 03, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes The provisions for income taxes for fiscal 2016, 2015 and 2014 were as follows:
Reconciliations of the provisions for income taxes, based on income from continuing operations, to the applicable federal statutory income tax rate of 35% are listed below.
The tax effects of items comprising our net deferred tax liability as of April 3, 2016 and March 29, 2015 are as follows:
As of April 3, 2016, the Company has determined that it is more likely than not that the deferred tax assets at April 3, 2016 will be realized either through future taxable income or reversals of taxable temporary differences. As of March 29, 2015, there were no unrecognized tax benefits. During fiscal 2016, we recorded a gross unrecognized tax benefit of $1.9 million in other long-term liabilities on our consolidated balance sheet as a result of uncertain income tax positions taken by Stauber on its tax returns for periods prior to our acquisition. The Stauber acquisition agreement provides the Company with indemnification from the prior owners for any tax liabilities relating to pre-acquisition tax returns. Accordingly, we have also recorded an offsetting, long-term receivable for $1.9 million, and as such any change in the unrecognized tax benefit will not impact our effective tax rate in future periods. As of April 3, 2016, the liability for uncertain tax positions and the corresponding receivable included $0.3 million of interest and penalties. We expect these uncertain income tax amounts to decrease as the applicable examination periods by the relevant taxing authorities expire. We are subject to U.S. federal income tax as well as income tax of multiple state jurisdictions. The tax years prior to our fiscal year ended March 31, 2013 are closed to examination by the Internal Revenue Service, and with few exceptions, state and local income tax jurisdictions. |
Segment Information |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 03, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information We have three reportable segments: Industrial, Water Treatment and Health and Nutrition. Our Health and Nutrition segment was established as a result of our acquisition of Stauber in December 2015. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. Product costs and expenses for each segment are based on actual costs incurred along with cost allocations of shared and centralized functions. We evaluate performance based on profit or loss from operations before income taxes not including nonrecurring gains and losses. Reportable segments are defined primarily by product and type of customer. Segments are responsible for the sales, marketing and development of their products and services. Other than our Health and Nutrition segment, the segments do not have separate accounting, administration, customer service or purchasing functions. There are no intersegment sales and no operating segments have been aggregated. Given the nature of our business, it is not practical to disclose revenues from external customers for each product or each group of similar products. No single customer’s revenues amounted to 10% or more of our total revenue. Sales are primarily within the United States and all assets are located within the United States.
* Unallocated assets, consisting primarily of cash and cash equivalents, investments and prepaid expenses, were $32.8 million at April 3, 2016, $53.7 million at March 29, 2015 and $66.7 million at March 30, 2014. In fiscal 2016, operating profit for the Health and Nutrition segment was negatively impacted by $3.3 million (pre-tax) of non-recurring SG&A expenses directly related to the acquisition by Hawkins. |
Selected Quarterly Financial Data (Unaudited) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 03, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selected Quarterly Financial Data (Unaudited) | Selected Quarterly Financial Data (Unaudited)
(1) The sum of quarterly per share data may not equal the full year due to rounding. Operating income was negatively impacted by non-recurring SG&A expenses directly related to the acquisition of Stauber by Hawkins of $2.7 million (pre-tax) in the third quarter and $0.6 million (pre-tax) in the fourth quarter of fiscal 2016. |
Valuation and Qualifying Accounts (Notes) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 03, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | VALUATION AND QUALIFYING ACCOUNTS FOR THE FISCAL YEARS ENDED APRIL 3, 2016, MARCH 29, 2015, AND MARCH 30, 2014
|
Nature of Business and Significant Accounting Policies (Policies) |
12 Months Ended |
---|---|
Apr. 03, 2016 | |
Accounting Policies [Abstract] | |
Fiscal Year | Our fiscal year is a 52 or 53-week year ending on the Sunday closest to March 31. Our fiscal year ended April 3, 2016 (“fiscal 2016”) was 53 weeks. Our fiscal year ended March 29, 2015 (“fiscal 2015”) and March 30, 2014 (“fiscal 2014”) were 52 weeks. The fiscal year ending April 2, 2017 (“fiscal 2017”) will also be 52 weeks. |
Principles of Consolidation | The consolidated financial statements include the accounts of Hawkins, Inc. and its wholly-owned subsidiaries. All intercompany transactions and accounts have been eliminated. |
Estimates | The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. |
Revenue Recognition | We recognize revenue when there is evidence that the customer has agreed to purchase the product, the price and terms of the sale are fixed, the product has shipped and title has passed to our customer, performance has occurred, and collection of the receivable is reasonably assured. |
Shipping and Handling | All shipping and handling amounts billed to customers are included in revenues. Costs incurred related to the shipping and the handling of products are included in cost of sales. |
Fair Value Measurements | The financial assets and liabilities that are re-measured and reported at fair value for each reporting period include marketable securities, as well as contingent consideration payable in fiscal 2015 related to the acquisition of Advance Chemical Solutions, Inc. (“ACS”). There are no fair value measurements with respect to nonfinancial assets or liabilities that are recognized or disclosed at fair value in our consolidated financial statements on a recurring basis. Assets and liabilities measured at fair value are classified using the following hierarchy, which is based upon the transparency of inputs to the valuation as of the measurement date: Level 1: Valuation is based on observable inputs such as quoted market prices (unadjusted) for identical assets or liabilities in active markets. Level 2: Valuation is based on inputs such as quoted market prices for similar assets or liabilities in active markets or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3: Valuation is based upon other unobservable inputs that are significant to the fair value measurement. In making fair value measurements, observable market data must be used when available. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. |
Cash Equivalents | Cash equivalents include all liquid debt instruments (primarily cash funds and money market accounts) purchased with an original maturity of three months or less. The balances maintained at financial institutions may, at times, exceed federally insured limits. |
Investments | Available-for-sale securities consist of certificates of deposit (“CD’s”) and municipal bonds and are valued at current market value, with the resulting unrealized gains and losses excluded from earnings and reported, net of tax, as a separate component of shareholders’ equity until realized. Any impairment loss to reduce an investment’s carrying amount to its fair market value is recognized in income when a decline in the fair market value of an individual security below its cost or carrying value is determined to be other than temporary. |
Trade Receivables | Financial instruments, which potentially subject us to a concentration of credit risk, principally consist of trade receivables. We sell our principal products to a large number of customers in many different industries. There are no concentrations of credit risk with a single customer from a particular service or geographic area that would significantly impact us in the near term. To reduce credit risk, we routinely assess the financial strength of our customers. We record an allowance for doubtful accounts to reduce our receivables to an amount we estimate is collectible from our customers. Estimates used in determining the allowance for doubtful accounts are based on historical collection experience, current trends, aging of accounts receivable and periodic evaluations of our customers’ financial condition. Our cash balances are held at two separate financial institutions where the cash balances may exceed federally insured limits. The institutions are two of the largest commercial banking institutions in the country and both have maintained strong credit ratings. |
Inventories | Inventories, consisting primarily of finished goods, are primarily valued at the lower of cost or net realizable value, with cost for approximately 70% of our inventory determined using the last-in, first-out (“LIFO”) method. Cost for the other 30% of our total inventory is determined using the first-in, first-out (“FIFO”) method. |
Property, Plant and Equipment | Property is stated at cost and depreciated or amortized over the lives of the assets, using the straight-line method. Estimated lives are: 10 to 40 years for buildings and improvements; 3 to 20 years for machinery and equipment; and 3 to 10 years for transportation equipment and office furniture and equipment including computer systems. Leasehold improvements are depreciated over the lesser of their estimated useful lives or the remaining lease term. Significant improvements that add to productive capacity or extend the lives of properties are capitalized. Costs for repairs and maintenance are charged to expense as incurred. When property is retired or otherwise disposed of, the cost and related accumulated depreciation or amortization are removed from the accounts and any related gains or losses are included in income. We review the recoverability of long-lived assets to be held and used, such as property, plant and equipment, when events or changes in circumstances occur that indicate the carrying value of the asset group may not be recoverable, such as prolonged industry downturn or significant reductions in projected future cash flows. The assessment of possible impairment is based on our ability to recover the carrying value of the asset group from the expected future pre-tax cash flows (undiscounted) of the related operations. If these cash flows are less than the carrying value of such asset group, an impairment loss would be measured by the amount the carrying value exceeds the fair value of the long-lived asset group. The measurement of impairment requires us to estimate future cash flows and the fair value of long-lived assets. No long-lived assets were determined to be impaired during fiscal years 2016, 2015 or 2014. |
Goodwill and Identifiable Intangible Assets | Goodwill represents the excess of the cost of acquired businesses over the fair value of identifiable tangible net assets and identifiable intangible assets purchased. Goodwill is tested at least annually for impairment, and is tested for impairment more frequently if events or changes in circumstances indicate that the asset might be impaired. As of January 1, 2016, the company performed an analysis of qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform a two-step goodwill impairment test. Based on management’s analysis of qualitative factors, we determined that it was not necessary to perform a two-step goodwill impairment test for any reporting unit. Our primary identifiable intangible assets include customer lists, trade secrets, non-competition agreements, trademarks and trade names acquired in previous business acquisitions. Identifiable intangible assets with finite lives are amortized whereas identifiable intangible assets with indefinite lives are not amortized. The values assigned to the intangible assets with finite lives are being amortized on average over approximately 14 years. Identifiable intangible assets that are subject to amortization are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Identifiable intangible assets not subject to amortization are tested for impairment annually or more frequently if events warrant. The impairment test consists of a qualitative assessment to determine whether it is more likely than not that the asset is impaired. Based on management’s analysis of qualitative factors, we determined that it was not necessary to perform a quantitative impairment test for fiscal 2016. Impairment assessments were also completed in the fourth quarters of fiscal 2015 and 2014, which resulted in no impairment charges for either of these fiscal years. |
Income Taxes | In the preparation of our consolidated financial statements, the calculation of income taxes by management is based upon the estimated effective rate applicable to operating results for the full fiscal year. This includes estimating the current tax liability as well as assessing differences resulting from different treatment of items for tax and book accounting purposes. Differences that are temporary in nature result in deferred tax assets and liabilities, which are recorded on the consolidated balance sheet, while differences that are permanent in nature impact the income tax expense recorded on the income statement and impact the effective tax rate for the fiscal year. The deferred tax assets and liabilities are analyzed regularly and management assesses the likelihood that deferred tax assets will be recovered from future taxable income. We record any interest and penalties related to income taxes as income tax expense in the consolidated statements of income. The effect of income tax positions are recognized only if those positions are more likely than not of being sustained. Changes in recognition or measurement are made as facts and circumstances change. See note 11 for further information regarding the recording of a liability and offsetting receivable regarding an uncertain tax position taken by Stauber prior to its acquisition by us. |
Stock-Based Compensation | We account for stock-based compensation on a fair value basis. The estimated grant date fair value of each stock-based award is recognized in expense over the requisite service period (generally the vesting period). Non-vested share awards are recorded as expense over the requisite service periods based on the market value on the date of grant. |
Earnings Per Share | Basic earnings per share (“EPS”) are computed by dividing net income by the weighted-average number of common shares outstanding. Diluted EPS are computed by dividing net income by the weighted-average number of common shares outstanding including the incremental shares assumed to be issued upon the exercise of stock options and the incremental shares assumed to be issued as performance units and restricted stock. |
Derivatives Instruments and Hedging Activities | We do not have any freestanding or embedded derivatives and it is our practice to not enter into contracts that contain them. |
Nature of Business and Significant Accounting Policies (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 03, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of earnings per share, basic and diluted | Basic and diluted EPS were calculated using the following:
|
Business Combinations (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 03, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stauber Preformance Ingredients [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following table summarizes the fair value measurement of the assets acquired and liabilities assumed as of the acquisition date:
(a) In addition to these balances, $7.3 million of cash and current accrued liabilities were recorded that relate to stock and other acquisition-related compensation payments, which were recorded by Stauber as of the acquisition date but were paid subsequent to the acquisition date. Note: Included in our consolidated balance sheet is an income tax receivable of $4.6 million related to pre-acquisition income taxes, with an offsetting liability payable to the prior owners as these amounts will be paid to them upon receipt. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition, Pro Forma Information [Table Text Block] | The following pro forma information has been prepared as if the Stauber acquisition and the borrowing to finance the acquisition had occurred as of the beginning of the fiscal years presented. The unaudited pro forma information is not necessarily indicative of what our consolidated results of operations actually would have been had the acquisition occurred at the beginning of each fiscal year, nor is it indicative of our future operational results.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Davis Supply Inc. [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following table summarizes the allocation of the purchase price to the fair values assigned to the assets acquired and liabilities assumed as of the acquisition date:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Dumont Company, Inc [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following table summarizes the preliminary allocation of the purchase price to the fair values assigned to the assets acquired and liabilities assumed at the date of the Dumont acquisition:
|
Cash and Cash Equivalents and Investments (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 03, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of financial assets and liabilities measured at fair value | The following table presents information about our financial assets that are measured at fair value on a recurring basis as of April 3, 2016 and March 29, 2015, and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale securities |
Inventories (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 03, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Inventories | Inventories at April 3, 2016 and March 29, 2015 consisted of the following:
|
Goodwill and Intangible Assets (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 03, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of goodwill | The changes in the carrying amount of goodwill for each of our three reportable segments were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of intangible assets | The following is a summary of our intangible assets as of April 3, 2016 and March 29, 2015:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of future amortization expense | The estimated future amortization expense for identifiable intangible assets during the next five years is as follows:
|
Debt (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 03, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt Instruments | Debt at April 3, 2016 consisted of the following:
|
|||||||||||||||||||||||||||||||||||||||||||||
Schedule of Maturities of Long-term Debt | Scheduled annual maturities of debt as of April 3, 2016 are as follows:
|
Share Based Compensation (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 03, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performance-Based Restricted Stock [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of performance-based restricted stock units | The following table represents the restricted stock activity for fiscal 2016:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted Stock Awards [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of restricted stock awards | The following table represents the Board’s restricted stock activity for fiscal 2016:
|
Profit Sharing, Employee Stock Ownership, Employee Stock Purchase and Pension Plans (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 03, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of contribution expenses | The following represents the contribution expense for the company sponsored profit sharing, ESOP, ESPP and 401(k) plans for fiscal 2016, 2015 and 2014:
|
Commitments and Contingencies (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 03, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of future minimum rental payments for operating leases | Future minimum lease payments due under operating leases with an initial term of one year or more at April 3, 2016 are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of rent expense | Total rental expense for fiscal years 2016, 2015 and 2014 was as follows:
|
Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 03, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of provisions for income taxes | The provisions for income taxes for fiscal 2016, 2015 and 2014 were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of effective income tax rate reconciliation | Reconciliations of the provisions for income taxes, based on income from continuing operations, to the applicable federal statutory income tax rate of 35% are listed below.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of deferred tax assets and liabilities | The tax effects of items comprising our net deferred tax liability as of April 3, 2016 and March 29, 2015 are as follows:
|
Segment Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 03, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Segment Information | Sales are primarily within the United States and all assets are located within the United States.
* Unallocated assets, consisting primarily of cash and cash equivalents, investments and prepaid expenses, were $32.8 million at April 3, 2016, $53.7 million at March 29, 2015 and $66.7 million at March 30, 2014. |
Selected Quarterly Financial Data (Unaudited) (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 03, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of quarterly financial information (Unaudited) |
(1) The sum of quarterly per share data may not equal the full year due to rounding. |
Nature of Business and Significant Accounting Policies -Textual (Details) |
12 Months Ended | ||
---|---|---|---|
Apr. 03, 2016
Segment
shares
|
Mar. 29, 2015
shares
|
Mar. 30, 2014
shares
|
|
Number of reportable segments (segment) | Segment | 3 | ||
Number of Weeks in Fiscal Year | 371 days | 364 days | 364 days |
Number of days in next fiscal year | 364 days | ||
Percentage of LIFO Inventory | 70.00% | ||
Percentage of FIFO inventory | 30.00% | ||
Weighted-average common shares outstanding-basic (shares) | 10,524,730 | 10,568,582 | 10,544,467 |
Dilutive impact of stock options, performance units, and restricted stock (shares) | 53,312 | 64,972 | 55,288 |
Weighted average common shares outstanding — diluted (shares) | 10,578,042 | 10,633,554 | 10,599,755 |
Weighted average number diluted shares outstanding adjustment | 0 | 0 | 0 |
Maximum [Member] | |||
Number of Weeks in Fiscal Year | 371 days | ||
Minimum [Member] | |||
Number of Weeks in Fiscal Year | 364 days |
Business Combinations-Pro Forma Information (Details) - Stauber Preformance Ingredients [Member] - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | |
---|---|---|
Apr. 03, 2016 |
Mar. 29, 2015 |
|
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Pro forma net sales | $ 501,667 | $ 469,538 |
Pro forma net income | $ 22,952 | $ 21,352 |
Pro forma basic earnings per share | $ 2.18 | $ 2.02 |
Pro forma diluted earnings per share | $ 2.17 | $ 2.01 |
Cash and Cash Equivalents and Investments-Textual (Details) |
12 Months Ended | |
---|---|---|
Apr. 03, 2016 |
Mar. 29, 2015 |
|
Level 2 [Member] | Certificates of deposit [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Maturities Period of Certificates of Deposit and Municipal Bonds, Minimum | 3 months | |
Maturities period of certificates of deposit maximum | 3 years | |
Fair Value, Inputs, Level 1 [Member] | Cash and Cash Equivalents [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Maturity period of cash and cash equivalents, maximum | 3 months |
Inventories (Details) - USD ($) $ in Thousands |
Apr. 03, 2016 |
Mar. 29, 2015 |
---|---|---|
Summary of Inventories | ||
Inventory (FIFO basis) | $ 51,857 | $ 42,567 |
LIFO reserve | (4,138) | (5,539) |
Net inventory | $ 47,719 | $ 37,028 |
Inventories-Textual (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Apr. 03, 2016 |
Mar. 29, 2015 |
|
Inventories (Textual) [Abstract] | ||
Finished goods (LIFO basis) | $ 36.5 | $ 39.0 |
Increase (Decrease) LIFO reserve | $ (1.4) | $ 0.4 |
Goodwill and Intangible Assets-Goodwill Rollforward (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Apr. 03, 2016 |
Mar. 29, 2015 |
|
Goodwill [Line Items] | ||
Goodwill, beginning of period | $ 11,750 | $ 7,392 |
Goodwill, Period Increase (Decrease) | 85,974 | 4,358 |
Goodwill, end of period | 97,724 | 11,750 |
Industrial [Member] | ||
Goodwill [Line Items] | ||
Goodwill, beginning of period | 6,495 | 6,495 |
Goodwill, Period Increase (Decrease) | 0 | 0 |
Goodwill, end of period | 6,495 | 6,495 |
Water Treatment [Member] | ||
Goodwill [Line Items] | ||
Goodwill, beginning of period | 5,255 | 897 |
Goodwill, Period Increase (Decrease) | 1,745 | 4,358 |
Goodwill, end of period | 7,000 | 5,255 |
Health and Nutrition [Member] | ||
Goodwill [Line Items] | ||
Goodwill, beginning of period | 0 | 0 |
Goodwill, Period Increase (Decrease) | 84,229 | 0 |
Goodwill, end of period | $ 84,229 | $ 0 |
Goodwill and Intangible Assets (Details Textual) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Apr. 03, 2016 |
Mar. 29, 2015 |
Mar. 30, 2014 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 97,724 | $ 11,750 | $ 7,392 |
Goodwill, Period Increase (Decrease) | 85,974 | 4,358 | |
Intangible assets amortization expense | $ 2,400 | $ 900 | $ 700 |
Goodwill and Intangible Assets-Future Amortization (Details) $ in Thousands |
Apr. 03, 2016
USD ($)
|
---|---|
Estimated amortization expense [Abstract] | |
2015 | $ 6,051 |
2016 | 5,704 |
2017 | 5,454 |
2018 | 5,074 |
2019 | $ 5,028 |
Share Repurchase Program (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Apr. 03, 2016 |
Mar. 29, 2015 |
|
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 300,000 | |
Stock Repurchased During Period, Value | $ 4.8 | $ 2.2 |
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 112,546 | |
Common Stock [Member] | ||
Stock Repurchased During Period, Shares | 127,852 | 59,602 |
Profit Sharing, Employee Stock Ownership, Employee Stock Purchase and Pension Plans (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Apr. 03, 2016 |
Mar. 29, 2015 |
Mar. 30, 2014 |
|
Defined Contribution Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 1,393 | $ 1,266 | $ 1,231 |
Defined Contribution Plan, Employer Matching Contribution Amount | 1,586 | 1,216 | 980 |
Employee Stock Ownership Plan (ESOP), Compensation Expense | 1,393 | 1,266 | 1,231 |
Employee Stock Purchase Plans (ESPP), Compensation Expense | 274 | 253 | 257 |
Total contribution expense | 5,090 | 4,451 | 4,199 |
Bargaining Unit Employee Plans [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Cost Recognized | $ 444 | $ 450 | $ 500 |
Profit Sharing, Employee Stock Ownership, Employee Stock Purchase and Pension Plans-Multiemployer Pension Plans (Details) $ in Thousands |
12 Months Ended |
---|---|
Apr. 03, 2016
USD ($)
collective_barganing_units
| |
Compensation and Retirement Disclosure [Abstract] | |
Number of Collective Bargaining Agreements | collective_barganing_units | 2 |
Multiemployer pension plan withdrawal aggregate cash payment per year | $ 467 |
Multi Employer Pension Plan Withdrawal Liability Payment Over Period of Years | 20 years |
Multiemployer Pension Plan Withdrawal Aggregate Cash Payment | $ 9,300 |
Commitments and Contingencies-Future minimum operating lease payments (Details) $ in Thousands |
Apr. 03, 2016
USD ($)
|
---|---|
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2017 | $ 2,750 |
2018 | 2,553 |
2019 | 2,250 |
2020 | 2,059 |
2021 | 1,833 |
Thereafter | $ 3,596 |
Commitments and Contingencies-Rent Expense (Details) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Apr. 03, 2016
USD ($)
lease
|
Mar. 29, 2015
USD ($)
|
Mar. 30, 2014
USD ($)
|
|
Loss Contingencies [Line Items] | |||
Minimum rentals | $ 2,890 | $ 1,665 | $ 1,223 |
Contingent rentals | 21 | 103 | 110 |
Total rental expense | $ 2,911 | $ 1,768 | $ 1,333 |
Land [Member] | |||
Loss Contingencies [Line Items] | |||
Number of Leases | lease | 3 |
Income Taxes-Provision of Income Tax (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Apr. 03, 2016 |
Mar. 29, 2015 |
Mar. 30, 2014 |
|
Income Tax Examination [Line Items] | |||
Federal — current | $ 8,761 | $ 9,574 | $ 7,612 |
State — current | 2,238 | 2,133 | 1,255 |
Total current | 10,999 | 11,707 | 8,867 |
Federal — deferred | 1,027 | (517) | 676 |
State — deferred | 197 | 50 | 424 |
Total deferred | 1,224 | (467) | 1,100 |
Total provision | $ 12,223 | $ 11,240 | $ 9,967 |
Income Taxes-Effective Income Tax Rate Reconciliation (Details) |
12 Months Ended | ||
---|---|---|---|
Apr. 03, 2016 |
Mar. 29, 2015 |
Mar. 30, 2014 |
|
Income Tax Disclosure [Abstract] | |||
Statutory federal income tax (percent) | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal deduction (percent) | 5.00% | 4.70% | 3.20% |
ESOP dividend deduction on allocated shares (percent) | (0.70%) | (0.70%) | (0.80%) |
Domestic production deduction (percent) | (1.50%) | (2.40%) | (2.10%) |
Impact of amended tax returns (percent) | 1.60% | (0.00%) | (0.00%) |
Effective Income Tax Rate Reconciliation, Tax Settlement, Other, Percent | (0.60%) | 0.00% | 0.00% |
Other — net (percent) | (0.20%) | (0.30%) | (0.20%) |
Total (percent) | 40.20% | 36.90% | 35.50% |
Income Taxes Income Taxes-Deferred Tax Assets (Details) - USD ($) $ in Thousands |
Apr. 03, 2016 |
Mar. 29, 2015 |
---|---|---|
Deferred tax assets: | ||
Trade receivables | $ 361 | $ 178 |
Stock compensation accruals | 620 | 949 |
Pension withdrawal liability | 2,635 | 2,755 |
Other | 1,302 | 811 |
Total deferred tax assets | 4,918 | 4,693 |
Deferred tax liabilities: | ||
Inventories | (2,671) | (3,307) |
Prepaid | (975) | (689) |
Excess of tax over book depreciation | (14,439) | (12,699) |
Intangibles | (29,075) | (674) |
Total deferred tax liabilities | (47,160) | (17,369) |
Net deferred tax liabilities | $ (42,242) | $ (12,676) |
Income Taxes-Textual (Details) $ in Millions |
12 Months Ended |
---|---|
Apr. 03, 2016
USD ($)
| |
Income Tax Contingency [Line Items] | |
Unrecognized Tax Benefits | $ 1.9 |
Business Combination, Indemnification Assets, Amount as of Acquisition Date | 1.9 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | $ 0.3 |
Segment Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 03, 2016 |
Dec. 27, 2015 |
Sep. 27, 2015 |
Jun. 28, 2015 |
Mar. 29, 2015 |
Dec. 28, 2014 |
Sep. 28, 2014 |
Jun. 29, 2014 |
Apr. 03, 2016 |
Mar. 29, 2015 |
Mar. 30, 2014 |
||||
Summary of Segment Information | ||||||||||||||
Sales | $ 129,513 | $ 88,375 | $ 94,592 | $ 101,496 | $ 93,281 | $ 83,825 | $ 88,881 | $ 98,036 | $ 413,976 | $ 364,023 | $ 348,263 | |||
Gross profit | 25,002 | 14,709 | 19,811 | 20,735 | 15,531 | 13,642 | 18,122 | 18,496 | 80,257 | 65,791 | 61,600 | |||
Selling, general, and administrative expenses | 16,067 | 12,825 | 10,303 | 9,891 | 9,532 | 8,697 | 8,271 | 8,875 | 49,086 | 35,375 | 33,510 | |||
Operating income (loss) | 8,935 | $ 1,884 | $ 9,508 | $ 10,844 | 5,999 | $ 4,945 | $ 9,851 | $ 9,621 | 31,171 | 30,416 | 28,090 | |||
Identifiable assets | [1] | 403,967 | 194,017 | 403,967 | 194,017 | 170,507 | ||||||||
Unallocated Amount to Segment [Member] | ||||||||||||||
Summary of Segment Information | ||||||||||||||
Identifiable assets | 32,800 | 53,700 | 32,800 | 53,700 | 66,700 | |||||||||
Industrial [Member] | ||||||||||||||
Summary of Segment Information | ||||||||||||||
Sales | 251,749 | 249,066 | 244,888 | |||||||||||
Gross profit | 37,967 | 33,619 | 32,041 | |||||||||||
Selling, general, and administrative expenses | 22,137 | 19,793 | 19,781 | |||||||||||
Operating income (loss) | 15,830 | 13,826 | 12,260 | |||||||||||
Identifiable assets | [1] | 158,015 | 151,157 | 158,015 | 151,157 | 141,506 | ||||||||
Water Treatment [Member] | ||||||||||||||
Summary of Segment Information | ||||||||||||||
Sales | 128,312 | 114,957 | 103,375 | |||||||||||
Gross profit | 35,470 | 32,172 | 29,559 | |||||||||||
Selling, general, and administrative expenses | 19,261 | 15,582 | 13,729 | |||||||||||
Operating income (loss) | 16,209 | 16,590 | 15,830 | |||||||||||
Identifiable assets | [1] | 50,013 | 42,860 | 50,013 | 42,860 | 29,001 | ||||||||
Health and Nutrition [Member] | ||||||||||||||
Summary of Segment Information | ||||||||||||||
Sales | 33,915 | 0 | 0 | |||||||||||
Gross profit | 6,820 | 0 | 0 | |||||||||||
Selling, general, and administrative expenses | 7,688 | 0 | 0 | |||||||||||
Operating income (loss) | (868) | 0 | 0 | |||||||||||
Identifiable assets | [1] | $ 195,939 | $ 0 | $ 195,939 | $ 0 | $ 0 | ||||||||
|
Segment Information-Textual (Details) $ in Millions |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Apr. 03, 2016
USD ($)
|
Dec. 27, 2015
USD ($)
|
Apr. 03, 2016
USD ($)
Segment
Customer
|
|
Segment Reporting Information [Line Items] | |||
Number of reportable segments (segment) | Segment | 3 | ||
Number of customers representing 10% or more of revenue (customers) | Customer | 0 | ||
Stauber Preformance Ingredients [Member] | |||
Segment Reporting Information [Line Items] | |||
Business Combination, Acquisition Related Costs | $ | $ 0.6 | $ 2.7 | $ 3.3 |
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 03, 2016 |
Dec. 27, 2015 |
Sep. 27, 2015 |
Jun. 28, 2015 |
Mar. 29, 2015 |
Dec. 28, 2014 |
Sep. 28, 2014 |
Jun. 29, 2014 |
Apr. 03, 2016 |
Mar. 29, 2015 |
Mar. 30, 2014 |
|
Segment Reporting Information [Line Items] | |||||||||||
Sales | $ 129,513 | $ 88,375 | $ 94,592 | $ 101,496 | $ 93,281 | $ 83,825 | $ 88,881 | $ 98,036 | $ 413,976 | $ 364,023 | $ 348,263 |
Gross profit | 25,002 | 14,709 | 19,811 | 20,735 | 15,531 | 13,642 | 18,122 | 18,496 | 80,257 | 65,791 | 61,600 |
Selling, general, and administrative expenses | 16,067 | 12,825 | 10,303 | 9,891 | 9,532 | 8,697 | 8,271 | 8,875 | 49,086 | 35,375 | 33,510 |
Operating income | 8,935 | 1,884 | 9,508 | 10,844 | 5,999 | 4,945 | 9,851 | 9,621 | 31,171 | 30,416 | 28,090 |
Net income | $ 4,859 | $ 815 | $ 5,678 | $ 6,791 | $ 3,900 | $ 3,146 | $ 6,147 | $ 6,021 | $ 18,143 | $ 19,214 | $ 18,094 |
Basic earnings per share | $ 0.46 | $ 0.08 | $ 0.54 | $ 0.64 | $ 0.37 | $ 0.30 | $ 0.58 | $ 0.57 | $ 1.72 | $ 1.82 | $ 1.72 |
Diluted earnings per share | $ 0.46 | $ 0.08 | $ 0.54 | $ 0.64 | $ 0.37 | $ 0.30 | $ 0.58 | $ 0.57 | $ 1.72 | $ 1.81 | $ 1.71 |
Stauber Preformance Ingredients [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Business Combination, Acquisition Related Costs | $ 600 | $ 2,700 | $ 3,300 | ||||||||
Industrial [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 251,749 | $ 249,066 | $ 244,888 | ||||||||
Gross profit | 37,967 | 33,619 | 32,041 | ||||||||
Selling, general, and administrative expenses | 22,137 | 19,793 | 19,781 | ||||||||
Operating income | 15,830 | 13,826 | 12,260 | ||||||||
Water Treatment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 128,312 | 114,957 | 103,375 | ||||||||
Gross profit | 35,470 | 32,172 | 29,559 | ||||||||
Selling, general, and administrative expenses | 19,261 | 15,582 | 13,729 | ||||||||
Operating income | 16,209 | 16,590 | 15,830 | ||||||||
Health and Nutrition [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 33,915 | 0 | 0 | ||||||||
Gross profit | 6,820 | 0 | 0 | ||||||||
Selling, general, and administrative expenses | 7,688 | 0 | 0 | ||||||||
Operating income | $ (868) | $ 0 | $ 0 |
Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Apr. 03, 2016 |
Mar. 29, 2015 |
Mar. 30, 2014 |
Mar. 31, 2013 |
|
Valuation and Qualifying Accounts [Abstract] | ||||
Allowance for doubtful accounts receivable | $ 602 | $ 445 | $ 477 | $ 469 |
Valuation Allowances and Reserves, Adjustments | 272 | (32) | 44 | |
Valuation Allowances and Reserves, Deductions | $ 115 | $ 0 | $ 36 |
J1I%:"6E$A-UDI;ZBC <+8@#R]5C29TDE2)
MD0HM0O)\L"75*R]4C19TDE")R4NY>&F(*BD_-6]3C0ITDDV)@9A7 -%)"Z^@2D6,47 W%\YFV+"I.LO&'QQ:0=ZA+]4'KM>
MH;W0YOZ[:]H(H<&$Q'4? %.M>!6+.Q2QF->U,&IW)<
#+MS\.8+$
M\4!7="Z\BK9SH<#*@BV\6BC05J F!IH#?5SMCYN B(!? D9[$9/@_83X%I(?
M]8%FP0)(J%Q0X'XYPQ-(&81\X_=)\[-E(%[&L_JW.*UW?^(6GE#^%K7KO-F,
MDAH:/DCWBN-WF$;8!L$*I8U?4@W6H9HIE"C^D5:AXSJF/]OU1+M-R"="OA!V
M632>&D6;S]SQLC X$MOS<':KO8>;(.*5B?=F_=A1T\3!R^)X^%RBN!8HD4/QOQ(0Y+IC[?YJPBSU58+IX
M=2RI<=0N;>E:76_G0SQ$]@&ORH%W\).;3FA+3NC\R<8#:!$=^/;9W8Z2WK^?
M-9'0NA!^\;%)5RHE#H?E@:ROM/H+4$L#!!0 ( *:-PDCFF5B[I $ +$#
M 9 >&PO=V]R:W-H965T
:!8L@(3&!07NES,\@Y1!R#?^
MLVA^M S$RWA5_Q:G]>Y/W,(SRM^B=8,WFU'20L
ZK ]/'J6-+@I%W:TJVZ
MW