Income Taxes

12 Months Ended

Mar. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Note 6 — Income Taxes

The income tax provision consisted of the following for the fiscal years ended March 31, 2021, 2020 and 2019:

	2021			2020		2019
Current — Federal	$	16,608,000		$	9,212,000	$	10,233,000
Current — State		4,587,000			2,652,000		3,121,000
Subtotal		21,195,000			11,864,000		13,354,000
Deferred — Federal		(6,809,000	)		1,418,000		941,000
Deferred — State		(1,567,000	)		52,000		515,000
Subtotal		(8,376,000	)		1,470,000		1,456,000
	$	12,819,000		$	13,334,000	$	14,810,000

The following is a reconciliation of the income tax provision from the statutory federal income tax rate to the effective rate for the fiscal years ended March 31, 2021, 2020 and 2019:

	2021			2020			2019
Income taxes at federal statutory rate	$	12,427,000		$	12,749,000		$	12,918,000
State income taxes, net of federal benefit		3,102,000			2,243,000			2,848,000
Uncertain tax positions		(693,000	)		(263,000	)		(175,000	)
Permanent items and tax credits		(2,018,000	)		(1,632,000	)		(666,000	)
Adjustments to returns as filed		192,000			110,000			131,000
Valuation allowance		(191,000	)		127,000			317,000
Impact of tax reform		—			—			(563,000	)
	$	12,819,000		$	13,334,000		$	14,810,000

Deferred tax assets and liabilities at March 31, 2021 and 2020 are, as follows:

	2021			2020
Deferred tax assets:
Accrued liabilities not currently deductible	$	7,908,000		$	5,640,000
Allowance for doubtful accounts		849,000			1,293,000
Stock-based compensation		2,242,000			2,058,000
Deferred lease liability		14,080,000			24,765,000
Deferred payroll taxes		2,693,000			—
Other		877,000			938,000
Deferred tax assets		28,649,000			34,694,000
Deferred tax liabilities:
Excess of book over tax basis of fixed assets		(9,166,000	)		(13,024,000	)
Intangible assets		(4,820,000	)		(4,507,000	)
Right-of-use asset		(11,668,000	)		(22,837,000	)
Accrued revenue		(1,526,000	)		(1,143,000	)
Other		(367,000	)		(267,000	)
Total deferred tax liabilities		(27,547,000	)		(41,778,000	)
Valuation allowance		(489,000	)		(680,000	)
Deferred tax liabilities		(28,036,000	)		(42,458,000	)
Net deferred tax assets (liabilities)	$	613,000		$	(7,764,000	)

There were no prepaid expenses and taxes at March 31, 2021.  Prepaid expenses and taxes were $3,870,000 at March 31, 2020.  Accounts and income taxes payable include $696,000 at March 31, 2021, for income taxes due in the first quarter of the following fiscal year.

A reconciliation of the financial statement recognition and measurement of uncertain tax positions during the current fiscal year is as follows:

Balance as of March 31, 2020	$	1,012,000
Additions based on tax positions related to the current year		—
Additions for tax positions of prior years		—
Reductions for tax positions related to the current year		—
Reductions for tax positions of prior years		(594,000	)
Balance as of March 31, 2021	$	418,000

The Company recognizes interest and penalties related to uncertain tax positions in income tax expense.  During the fiscal years ended March 31, 2021, 2020 and 2019, the Company recognized approximately $(99,000), $(10,000) and $22,000 in interest and penalties, respectively.  As of March 31, 2021, 2020 and 2019, accrued interest and penalties related to uncertain tax positions were $107,000, $206,000 and $216,000, respectively.

The tax fiscal years from 2017-2020 remain open to examination by the major taxing jurisdictions to which the Company is subject.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted into law. The Company does not intend to apply for governmental loans from the CARES Act or any other governmental programs to support the Company’s operations.  The Company is taking advantage of certain aspects of the CARES Act such as the deferral of payroll tax deposits and continuing to evaluate the other provisions of the CARES Act.