QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
(Address of principal executive offices) |
(Zip Code) |
Title of each class |
Trading symbol(s) |
Name of each exchange on which registered |
Large accelerated filer ☐ |
|
Non-accelerated filer ☐ |
Smaller reporting company |
Emerging growth company |
PART I — FINANCIAL INFORMATION |
||
4 |
||
4 |
||
5 |
||
6 |
||
7 |
||
8 |
||
9 |
||
23 |
||
33 |
||
33 |
||
PART II — OTHER INFORMATION |
||
35 |
||
35 |
||
35 |
||
35 |
||
36 |
||
38 |
Item 1. | Financial Statements |
December 31, 2020 |
March 31, 2020 |
|||||||
ASSETS |
(Unaudited) |
|||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ |
$ |
||||||
Short-term investments |
||||||||
Accounts receivable — net |
||||||||
Inventory |
||||||||
Contract assets |
||||||||
Prepaid expenses and other current assets |
||||||||
Total current assets |
||||||||
Plant and equipment — net |
||||||||
Operating lease assets |
||||||||
Long-term deferred income taxes |
||||||||
Long-term contract assets |
||||||||
Goodwill and intangible assets — net |
||||||||
Other assets |
||||||||
TOTAL ASSETS |
$ |
$ |
||||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable and accrued liabilities |
$ |
$ |
||||||
Customer finished goods returns accrual |
||||||||
Contract liabilities |
||||||||
Revolving loan |
||||||||
Other current liabilities |
||||||||
Operating lease liabilities |
||||||||
Current portion of term loan |
||||||||
Total current liabilities |
||||||||
Term loan, less current portion |
||||||||
Long-term contract liabilities |
||||||||
Long-term deferred income taxes |
||||||||
Long-term operating lease liabilities |
||||||||
Other liabilities |
||||||||
Total liabilities |
||||||||
Commitments and contingencies |
||||||||
Shareholders' equity: |
||||||||
Preferred stock; par value $ |
||||||||
Series A junior participating preferred stock; par value $ |
||||||||
Common stock; par value $ |
||||||||
Additional paid-in capital |
||||||||
Retained earnings |
||||||||
Accumulated other comprehensive loss |
( |
) |
( |
) |
||||
Total shareholders' equity |
||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
$ |
$ |
Three Months Ended December 31, |
Nine Months Ended December 31, |
|||||||||||||||
2020 |
2019 |
2020 |
2019 |
|||||||||||||
Net sales |
$ |
$ |
$ |
$ |
||||||||||||
Cost of goods sold |
||||||||||||||||
Gross profit |
||||||||||||||||
Operating expenses: |
||||||||||||||||
General and administrative |
||||||||||||||||
Sales and marketing |
||||||||||||||||
Research and development |
||||||||||||||||
Foreign exchange impact of lease liabilities and forward contracts |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||
Total operating expenses |
||||||||||||||||
Operating income |
||||||||||||||||
Interest expense, net |
||||||||||||||||
Income before income tax expense |
||||||||||||||||
Income tax expense |
||||||||||||||||
Net income |
$ |
$ |
$ |
$ |
||||||||||||
Basic net income per share |
$ |
$ |
$ |
$ |
||||||||||||
Diluted net income per share |
$ |
$ |
$ |
$ |
||||||||||||
Weighted average number of shares outstanding: |
||||||||||||||||
Basic |
||||||||||||||||
Diluted |
Three Months Ended December 31, |
Nine Months Ended December 31, |
|||||||||||||||
2020 |
2019 |
2020 |
2019 |
|||||||||||||
Net income |
$ |
$ |
$ |
$ |
||||||||||||
Other comprehensive income (loss), net of tax: |
||||||||||||||||
Foreign currency translation gain (loss) |
( |
) |
||||||||||||||
Total other comprehensive income (loss), net of tax |
( |
) |
||||||||||||||
Comprehensive income |
$ |
$ |
$ |
$ |
Common Stock |
||||||||||||||||||||||||
Shares |
Amount |
Additional Paid-in Capital |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
Total |
|||||||||||||||||||
Balance at March 31, 2020 |
$ |
$ |
$ |
$ |
( |
) |
$ |
|||||||||||||||||
Compensation recognized under employee stock plans |
- |
|||||||||||||||||||||||
Exercise of stock options |
||||||||||||||||||||||||
Issuance of common stock upon vesting of RSUs, net of shares withheld for employee taxes |
( |
) |
( |
) |
||||||||||||||||||||
Foreign currency translation |
- |
( |
) |
( |
) |
|||||||||||||||||||
Net loss |
- |
( |
) |
( |
) |
|||||||||||||||||||
Balance at June 30, 2020 |
$ |
$ |
$ |
$ |
( |
) |
$ |
|||||||||||||||||
Compensation recognized under employee stock plans |
- |
|||||||||||||||||||||||
Exercise of stock options |
||||||||||||||||||||||||
Issuance of common stock upon vesting of RSUs, net of shares withheld for employee taxes |
( |
) |
( |
) |
||||||||||||||||||||
Foreign currency translation |
- |
( |
) |
( |
) |
|||||||||||||||||||
Net income |
- |
|||||||||||||||||||||||
Balance at September 30, 2020 |
$ |
$ |
$ |
$ |
( |
) |
$ |
|||||||||||||||||
Compensation recognized under employee stock plans |
- |
|||||||||||||||||||||||
Exercise of stock options |
||||||||||||||||||||||||
Issuance of common stock upon vesting of RSUs, net of shares withheld for employee taxes |
( |
) |
( |
) |
||||||||||||||||||||
Foreign currency translation |
- |
|||||||||||||||||||||||
Net income |
- |
|||||||||||||||||||||||
Balance at December 31, 2020 |
$ |
$ |
$ |
$ |
( |
) |
$ |
Common Stock |
||||||||||||||||||||||||
Shares |
Amount |
Additional Paid-in Capital Common Stock |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
Total |
|||||||||||||||||||
Balance at March 31,2019 |
$ |
$ |
$ |
$ |
( |
) |
$ |
|||||||||||||||||
Compensation recognized under employee stock plans |
- |
|||||||||||||||||||||||
Issuance of common stock upon vesting of RSUs, net of shares withheld for employee taxes |
( |
) |
( |
) |
||||||||||||||||||||
Foreign currency translation |
- |
|||||||||||||||||||||||
Net loss |
- |
( |
) |
( |
) |
|||||||||||||||||||
Balance at June 30, 2019 |
$ |
$ |
$ |
$ |
( |
) |
$ |
|||||||||||||||||
Compensation recognized under employee stock plans |
- |
|||||||||||||||||||||||
Exercise of stock options |
||||||||||||||||||||||||
Issuance of common stock upon vesting of RSUs, net of shares withheld for employee taxes |
( |
) |
( |
) |
||||||||||||||||||||
Foreign currency translation |
- |
( |
) |
( |
) |
|||||||||||||||||||
Net income |
- |
|||||||||||||||||||||||
Balance at September 30, 2019 |
$ |
$ |
$ |
$ |
( |
) |
$ |
|||||||||||||||||
Compensation recognized under employee stock plans |
- |
|||||||||||||||||||||||
Exercise of stock options |
||||||||||||||||||||||||
Issuance of common stock upon vesting of RSUs, net of shares withheld for employee taxes |
||||||||||||||||||||||||
Foreign currency translation |
- |
|||||||||||||||||||||||
Net income |
- |
|||||||||||||||||||||||
Balance at December 31, 2019 |
$ |
$ |
$ |
$ |
( |
) |
$ |
Nine Months Ended December 31, |
||||||||
2020 |
2019 |
|||||||
Cash flows from operating activities: |
||||||||
Net income |
$ |
$ |
||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: |
||||||||
Depreciation and amortization |
||||||||
Amortization of interest |
||||||||
Amortization of core premiums paid to customers |
||||||||
Noncash lease expense |
||||||||
(Gain) loss due to the change in the fair value of the contingent consideration |
( |
) |
||||||
Foreign exchange impact of lease liabilities and forward contracts |
( |
) |
( |
) |
||||
Gain on short-term investments |
( |
) |
( |
) |
||||
Net provision for inventory reserves |
||||||||
Net provision for customer payment discrepancies and credit losses |
||||||||
Deferred income taxes |
||||||||
Share-based compensation expense |
||||||||
Loss on disposal of plant and equipment |
||||||||
Changes in operating assets and liabilities: |
||||||||
Accounts receivable |
||||||||
Inventory |
( |
) |
( |
) |
||||
Prepaid expenses and other current assets |
( |
) |
||||||
Other assets |
||||||||
Accounts payable and accrued liabilities |
( |
) |
||||||
Customer finished goods returns accrual |
||||||||
Contract assets, net |
( |
) |
( |
) |
||||
Contract liabilities, net |
||||||||
Operating lease liabilities |
( |
) |
( |
) |
||||
Other liabilities |
( |
) |
||||||
Net cash provided by (used in) operating activities |
( |
) |
||||||
Cash flows from investing activities: |
||||||||
Purchase of plant and equipment |
( |
) |
( |
) |
||||
Proceeds from sale of plant and equipment |
||||||||
Change in short-term investments |
( |
) |
||||||
Net cash used in investing activities |
( |
) |
( |
) |
||||
Cash flows from financing activities: |
||||||||
Borrowings under revolving loan |
||||||||
Repayments of revolving loan |
( |
) |
( |
) |
||||
Repayments of term loan |
( |
) |
( |
) |
||||
Payments for debt issuance costs |
( |
) |
||||||
Payments on finance lease obligations |
( |
) |
( |
) |
||||
Exercise of stock options |
||||||||
Cash used to net share settle equity awards |
( |
) |
( |
) |
||||
Net cash (used in) provided by financing activities |
( |
) |
||||||
Effect of exchange rate changes on cash and cash equivalents |
||||||||
Net decrease in cash and cash equivalents |
( |
) |
( |
) |
||||
Cash and cash equivalents — Beginning of period |
||||||||
Cash and cash equivalents — End of period |
$ |
$ |
||||||
Supplemental disclosures of cash flow information: |
||||||||
Cash paid for interest, net |
$ |
$ |
||||||
Cash paid for income taxes, net of refunds |
||||||||
Cash paid for operating leases |
||||||||
Cash paid for finance leases |
||||||||
Plant and equipment acquired under finance leases |
||||||||
Assets acquired under operating leases |
||||||||
Non-cash capital expenditures |
December 31, 2020 |
March 31, 2020 |
|||||||
Accounts receivable — trade |
$ |
$ |
||||||
Allowance for credit losses |
( |
) |
( |
) |
||||
Customer payment discrepancies |
( |
) |
( |
) |
||||
Customer returns RGA issued |
( |
) |
( |
) |
||||
Total accounts receivable — net |
$ |
$ |
Nine Months Ended |
||||
December 31, 2020 |
||||
Balance at beginning of period |
$ |
|||
Provision for expected credit losses |
||||
Recoveries |
( |
) |
||
Amounts written off charged against the allowance |
( |
) |
||
Balance at end of period |
$ |
December 31, 2020 |
March 31, 2020 |
|||||||
Inventory |
||||||||
Raw materials |
$ |
$ |
||||||
Work-in-process |
||||||||
Finished goods |
||||||||
Less allowance for excess and obsolete inventory |
( |
) |
( |
) |
||||
Inventory — net |
||||||||
Inventory unreturned |
||||||||
Total inventory |
$ |
$ |
December 31, 2020 |
March 31, 2020 |
|||||||
Short-term contract assets |
||||||||
Cores expected to be returned by customers |
$ |
$ |
||||||
Upfront payments to customers |
||||||||
Core premiums paid to customers |
||||||||
Total short-term contract assets |
$ |
$ |
||||||
Long-term contract assets |
||||||||
Remanufactured cores held at customers' locations |
$ |
$ |
||||||
Upfront payments to customers |
||||||||
Core premiums paid to customers |
||||||||
Long-term core inventory deposits |
||||||||
Total long-term contract assets |
$ |
$ |
Three Months Ended December 31, |
Nine Months Ended December 31 |
|||||||||||||||
2020 |
2019 |
2020 |
2019 |
|||||||||||||
Net sales |
||||||||||||||||
Customer A |
% |
% |
% |
% |
||||||||||||
Customer B |
% |
% |
% |
% |
||||||||||||
Customer C |
% |
% |
% |
% |
December 31, 2020 |
March 31, 2020 |
|||||||
Accounts receivable - trade |
||||||||
Customer A |
% |
% |
||||||
Customer B |
% |
% |
||||||
Customer C |
% |
% |
Three Months Ended December 31, |
Nine Months Ended December 31 |
|||||||||||||||
2020 |
2019 |
2020 |
2019 |
|||||||||||||
Rotating electrical products |
% |
% |
% |
% |
||||||||||||
Wheel hub products |
% |
% |
% |
% |
||||||||||||
Brake related products |
% |
% |
% |
% |
||||||||||||
Other products |
% |
% |
% |
% |
||||||||||||
% |
% |
% |
% |
December 31, 2020 |
March 31, 2020 |
|||||||
Principal amount of Term Loans |
$ |
$ |
||||||
Unamortized financing fees |
( |
) |
( |
) |
||||
Net carrying amount of Term Loans |
||||||||
Less current portion of Term Loans |
( |
) |
( |
) |
||||
Long-term portion of Term Loans |
$ |
$ |
Year Ending March 31, |
||||
2021 - remaining three months |
$ |
|||
2022 |
||||
2023 |
||||
2024 |
||||
Total payments |
$ |
December 31, 2020 |
March 31, 2020 |
|||||||
Short-term contract liabilities |
||||||||
Customer core returns accruals |
$ |
$ |
||||||
Customer allowances earned |
||||||||
Customer deposits |
||||||||
Core bank liability |
||||||||
Accrued core payment, net |
||||||||
Total short-term contract liabilities |
$ |
$ |
||||||
Long-term contract liabilities |
||||||||
Customer core returns accruals |
$ |
$ |
||||||
Customer allowances earned |
||||||||
Core bank liability |
||||||||
Accrued core payment, net |
||||||||
Total long-term contract liabilities |
$ |
$ |
Leases |
Classification |
December 31, 2020 |
March 31, 2020 |
||||||
Assets: |
|||||||||
Operating |
Operating lease assets |
$ |
$ |
||||||
Finance |
Plant and equipment |
||||||||
Total leased assets |
$ |
$ |
|||||||
Liabilities: |
|||||||||
Current |
|||||||||
Operating |
Operating lease liabilities |
$ |
$ |
||||||
Finance |
Other current liabilities |
||||||||
Long-term |
|||||||||
Operating |
Long-term operating lease liabilities |
||||||||
Finance |
Other liabilities |
||||||||
Total lease liabilities |
$ |
$ |
Three Months Ended |
Nine Months Ended |
|||||||||||||||
December 31, |
December 31, |
|||||||||||||||
2020 |
2019 |
2020 |
2019 |
|||||||||||||
Lease cost |
||||||||||||||||
Operating lease cost |
$ |
$ |
$ |
$ |
||||||||||||
Short-term lease cost |
||||||||||||||||
Variable lease cost |
||||||||||||||||
Finance lease cost: |
||||||||||||||||
Amortization of finance lease assets |
||||||||||||||||
Interest on finance lease liabilities |
||||||||||||||||
Total lease cost |
$ |
$ |
$ |
$ |
Maturity of lease liabilities |
Operating Leases |
Finance Leases |
Total |
|||||||||
2021 - remaining three months |
$ |
$ |
$ |
|||||||||
2022 |
||||||||||||
2023 |
||||||||||||
2024 |
||||||||||||
2025 |
||||||||||||
Thereafter |
||||||||||||
Total lease payments |
||||||||||||
Less amount representing interest |
( |
) |
( |
) |
( |
) |
||||||
Present value of lease liabilities |
$ |
$ |
$ |
December 31, 2020 |
||||
Lease term and discount rate |
||||
Weighted-average remaining lease term (years): |
||||
Finance leases |
||||
Operating leases |
||||
Weighted-average discount rate: |
||||
Finance leases |
% |
|||
Operating leases |
% |
Nine Months Ended December 31, |
||||||||
2020 |
2019 |
|||||||
Receivables discounted |
$ |
$ |
||||||
Weighted average days |
||||||||
Annualized weighted average discount rate |
% |
% |
||||||
Amount of discount recognized as interest expense |
$ |
$ |
Three Months Ended December 31, |
Nine Months Ended December 31, |
|||||||||||||||
2020 |
2019 |
2020 |
2019 |
|||||||||||||
Net income |
$ |
$ |
$ |
$ |
||||||||||||
Basic shares |
||||||||||||||||
Effect of potentially dilutive securities |
||||||||||||||||
Diluted shares |
||||||||||||||||
Net income per share: |
||||||||||||||||
Basic net income per share |
$ |
$ |
$ |
$ |
||||||||||||
Diluted net income per share |
$ |
$ |
$ |
$ |
Gain Recognized as Foreign Exchange Impact of Lease Liabilities and Forward Contracts |
||||||||||||||||
Derivatives Not Designated as |
Three Months Ended December 31, |
Nine Months Ended December 31, |
||||||||||||||
Hedging Instruments |
2020 |
2019 |
2020 |
2019 |
||||||||||||
Forward foreign currency exchange contracts |
$ |
$ |
$ |
$ |
December 31, 2020 |
March 31, 2020 |
|||||||||||||||||||||||||||||||
Fair Value Measurements Using Inputs Considered as |
Fair Value Measurements Using Inputs Considered as |
|||||||||||||||||||||||||||||||
Fair Value |
Level 1 |
Level 2 |
Level 3 |
Fair Value |
Level 1 |
Level 2 |
Level 3 |
|||||||||||||||||||||||||
Assets |
||||||||||||||||||||||||||||||||
Short-term investments |
||||||||||||||||||||||||||||||||
Mutual funds |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||||||||
Prepaid expenses and other current assets |
||||||||||||||||||||||||||||||||
Forward foreign currency exchange contracts |
||||||||||||||||||||||||||||||||
Liabilities |
||||||||||||||||||||||||||||||||
Accounts payable and accrued liabilities |
||||||||||||||||||||||||||||||||
Short-term contingent consideration |
||||||||||||||||||||||||||||||||
Other current liabilities |
||||||||||||||||||||||||||||||||
Deferred compensation |
||||||||||||||||||||||||||||||||
Forward foreign currency exchange contracts |
||||||||||||||||||||||||||||||||
Other liabilities |
||||||||||||||||||||||||||||||||
Long-term contingent consideration |
December 31, 2020 |
||||
Risk free interest rate |
% |
|||
Counter party rate |
% |
|||
Expected volatility (1) |
% |
|||
Weighted average cost of capital (1) |
% |
(1) |
Three Months Ended December 31, |
Nine Months Ended December 31, |
|||||||||||||||
Contingent Consideration |
2020 |
2019 |
2020 |
2019 |
||||||||||||
Beginning balance |
$ |
$ |
$ |
$ |
||||||||||||
Changes in revaluations of contingent consideration included in earnings |
( |
) |
||||||||||||||
Ending balance |
$ |
$ |
$ |
$ |
Nine Months Ended December 31, |
||||||||
2020 |
2019 |
|||||||
Weighted average risk free interest rate |
% |
% |
||||||
Weighted average expected holding period (years) |
||||||||
Weighted average expected volatility |
% |
% |
||||||
Weighted average expected dividend yield |
||||||||
Weighted average fair value of options granted |
$ |
$ |
Number of Shares |
Weighted Average Exercise Price |
|||||||
Outstanding at March 31, 2020 |
$ |
|||||||
Granted |
$ |
|||||||
Exercised |
( |
) |
$ |
|||||
Forfeited |
( |
) |
$ |
|||||
Outstanding at December 31, 2020 |
$ |
Number of Shares |
Weighted Average Grant Date Fair Value |
|||||||
Outstanding at March 31, 2020 |
$ |
|||||||
Granted |
$ |
|||||||
Vested |
( |
) |
$ |
|||||
Forfeited |
( |
) |
$ |
|||||
Outstanding at December 31, 2020 |
$ |
Three Months Ended December 31, |
Nine Months Ended December 31, |
|||||||||||||||
2020 |
2019 |
2020 |
2019 |
|||||||||||||
Balance at beginning of period |
$ |
$ |
$ |
$ |
||||||||||||
Charged to expense |
||||||||||||||||
Amounts processed |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||
Balance at end of period |
$ |
$ |
$ |
$ |
Three Months Ended December 31, |
||||||||
2020 |
2019 |
|||||||
Cash flow provided by operations |
$ |
33,154,000 |
$ |
22,326,000 |
||||
Finished goods turnover (annualized) (1) |
2.7 |
2.4 |
(1) | Annualized finished goods turnover for the fiscal quarter is calculated by multiplying cost of goods sold for the quarter by 4 and dividing the result by the average between beginning and ending finished goods inventory values, which includes all on-hand core inventory, for the fiscal quarter. We believe this provides a useful measure of our ability to turn our inventory into revenues. |
Three Months Ended December 31, |
||||||||
2020 |
2019 |
|||||||
Net sales |
$ |
122,568,000 |
$ |
125,574,000 |
||||
Cost of goods sold |
98,327,000 |
97,913,000 |
||||||
Gross profit |
24,241,000 |
27,661,000 |
||||||
Gross profit percentage |
19.8 |
% |
22.0 |
% |
Three Months Ended December 31, |
||||||||
2020 |
2019 |
|||||||
General and administrative |
$ |
14,005,000 |
$ |
14,390,000 |
||||
Sales and marketing |
4,698,000 |
5,623,000 |
||||||
Research and development |
2,100,000 |
2,174,000 |
||||||
Foreign exchange impact of lease liabilities and forward contracts |
(12,455,000 |
) |
(3,772,000 |
) |
||||
Percent of net sales |
||||||||
General and administrative |
11.4 |
% |
11.5 |
% |
||||
Sales and marketing |
3.8 |
% |
4.5 |
% |
||||
Research and development |
1.7 |
% |
1.7 |
% |
||||
Foreign exchange impact of lease liabilities and forward contracts |
(10.2 |
)% |
(3.0 |
)% |
Nine Months Ended December 31, |
||||||||
2020 |
2019 |
|||||||
Cash flow provided by (used in) operations |
$ |
72,484,000 |
$ |
(4,410,000 |
) |
|||
Finished goods turnover (annualized) (1 |
2.6 |
2.6 |
(1) | Annualized finished goods turnover for the period is calculated by multiplying cost of goods sold for the period by 1.3 and dividing the result by the average between beginning and ending finished goods inventory values, which includes all on-hand core inventory, for the period. We believe this provides a useful measure of our ability to turn our inventory into revenues. |
Nine Months Ended December 31, |
||||||||
2020 |
2019 |
|||||||
Net sales |
$ |
372,654,000 |
$ |
385,096,000 |
||||
Cost of goods sold |
295,300,000 |
303,279,000 |
||||||
Gross profit |
77,354,000 |
81,817,000 |
||||||
Gross profit percentage |
20.8 |
% |
21.2 |
% |
Nine Months Ended December 31, |
||||||||
2020 |
2019 |
|||||||
General and administrative |
$ |
38,210,000 |
$ |
39,410,000 |
||||
Sales and marketing |
13,224,000 |
15,990,000 |
||||||
Research and development |
6,014,000 |
6,694,000 |
||||||
Foreign exchange impact of lease liabilities and forward contracts |
(21,257,000 |
) |
(2,507,000 |
) |
||||
Percent of net sales |
||||||||
General and administrative |
10.3 |
% |
10.2 |
% |
||||
Sales and marketing |
3.5 |
% |
4.2 |
% |
||||
Research and development |
1.6 |
% |
1.7 |
% |
||||
Foreign exchange impact of lease liabilities and forward contracts |
(5.7 |
)% |
(0.7 |
)% |
Nine Months Ended December 31, |
||||||||
2020 |
2019 |
|||||||
Cash flows provided by (used in): |
||||||||
Operating activities |
$ |
72,484,000 |
$ |
(4,410,000 |
) |
|||
Investing activities |
(12,295,000 |
) |
(9,650,000 |
) |
||||
Financing activities |
(97,734,000 |
) |
13,546,000 |
|||||
Effect of exchange rates on cash and cash equivalents |
729,000 |
61,000 |
||||||
Net decrease in cash and cash equivalents |
$ |
(36,816,000 |
) |
$ |
(453,000 |
) |
||
Additional selected cash flow data: |
||||||||
Depreciation and amortization |
$ |
8,090,000 |
$ |
7,019,000 |
||||
Capital expenditures |
12,043,000 |
10,846,000 |
Financial covenants required under the Credit Facility |
Calculation as of December 31, 2020 |
|||||||
Maximum senior leverage ratio |
3.00 |
1.18 |
||||||
Minimum fixed charge coverage ratio |
1.10 |
1.24 |
Nine Months Ended December 31, |
||||||||
2020 |
2019 |
|||||||
Receivables discounted |
$ |
367,102,000 |
$ |
341,339,000 |
||||
Weighted average days |
333 |
347 |
||||||
Annualized weighted average discount rate |
2.1 |
% |
3.5 |
% |
||||
Amount of discount recognized as interest expense |
$ |
7,277,000 |
$ |
11,570,000 |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Periods |
Total Number of Shares Purchased |
Average Price Paid Per Share |
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs |
Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (1) |
||||||||||||
October 1 - October 31, 2020: |
||||||||||||||||
Open market and privately negotiated purchases |
- |
$ |
- |
- |
$ |
21,308,000 |
||||||||||
November 1 - November 30, 2020: |
||||||||||||||||
Open market and privately negotiated purchases |
- |
$ |
- |
- |
21,308,000 |
|||||||||||
December 1 - December 31, 2020: |
||||||||||||||||
Open market and privately negotiated purchases |
- |
$ |
- |
- |
21,308,000 |
|||||||||||
Total |
0 |
0 |
$ |
21,308,000 |
(1) | As of December 31, 2020, $15,692,000 of the $37,000,000 authorized share repurchase program had been utilized and $21,308,000 remained available to repurchase shares, subject to the limit in our Credit Facility. We retired the 675,561 shares repurchased under this program through December 31, 2020. Our share repurchase program does not obligate us to acquire any specific number of shares and shares may be repurchased in privately negotiated and/or open market transactions. |
Item 5. | Other Information |
Item 6. | Exhibits |
(a) | Exhibits: |
Number |
Description of Exhibit |
Method of Filing |
||
3.1 |
Certificate of Incorporation of the Company |
Incorporated by reference to Exhibit 3.1 to the Company’s Registration Statement on Form SB-2 declared effective on March 22, 1994 (the “1994 Registration Statement”). |
||
3.2 |
Amendment to Certificate of Incorporation of the Company |
Incorporated by reference to Exhibit 3.2 to the Company’s Registration Statement on Form S-1 (No. 33-97498) declared effective on November 14, 1995. |
||
Amendment to Certificate of Incorporation of the Company |
Incorporated by reference to Exhibit 3.3 to the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 1997. |
|||
Amendment to Certificate of Incorporation of the Company |
Incorporated by reference to Exhibit 3.4 to the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 1998 (the “1998 Form 10-K”). |
|||
Amendment to Certificate of Incorporation of the Company |
Incorporated by reference to Exhibit C to the Company’s proxy statement on Schedule 14A filed with the SEC on November 25, 2003. |
|||
Amended and Restated By-Laws of Motorcar Parts of America, Inc. |
Incorporated by reference to Exhibit 3.1 to Current Report on Form 8-K filed on August 24, 2010. |
|||
Certificate of Amendment of the Certificate of Incorporation of the Company |
Incorporated by reference to Exhibit 3.1 to Current Report on Form 8-K filed on April 17, 2014. |
|||
Amendment to the Amended and Restated By-Laws of Motorcar Parts of America, Inc., as adopted on June 9, 2016 |
Incorporated by reference to Exhibit 3.1 to Current Report on Form 8-K filed on June 14, 2016. |
|||
Amendment to the Amended and Restated By-Laws of the Company |
Incorporated by reference to Exhibit 3.1 to Current Report on Form 8-K filed on February 22, 2017. |
|||
2004 Non-Employee Director Stock Option Plan |
Incorporated by reference to Appendix A to the Proxy Statement on Schedule 14A for the 2004 Annual Shareholders Meeting. |
|||
2010 Incentive Award Plan |
Incorporated by reference to Appendix A to the Proxy Statement on Schedule 14A filed on December 15, 2010. |
|||
Amended and Restated 2010 Incentive Award Plan |
Incorporated by reference to Appendix A to the Proxy Statement on Schedule 14A filed on March 5, 2013. |
Number |
Description of Exhibit |
Method of Filing |
||
Second Amended and Restated 2010 Incentive Award Plan |
Incorporated by reference to Appendix A to the Proxy Statement on Schedule 14A filed on March 3, 2014. |
|||
2014 Non-Employee Director Incentive Award Plan |
Incorporated by reference to Appendix B to the Proxy Statement on Schedule 14A filed on March 3, 2014. |
|||
Third Amended and Restated 2010 Incentive Award Plan |
Incorporated by reference to Appendix A to the Proxy Statement on Schedule 14A filed on November 20, 2017. |
|||
Fourth Amended and Restated 2010 Incentive Award Plan |
Incorporated by reference to Appendix A to the Proxy Statement on Schedule 14A filed on July 24, 2020. |
|||
Amendment No. 4 to Employment Agreement, dated as of May 21, 2020, between Motorcar Parts of America, Inc., and Selwyn Joffe |
Incorporated by reference to exhibit 10.1 to the Quarterly Report filed on August 10, 2020. |
|||
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002 |
Filed herewith. |
|||
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002 |
Filed herewith. |
|||
Certification of Chief Accounting Officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002 |
Filed herewith. |
|||
Certifications of Chief Executive Officer, Chief Financial Officer and Chief Accounting Officer pursuant to Section 906 of the Sarbanes Oxley Act of 2002 |
Filed herewith. |
|||
101.INS |
Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the inline XBRL document). |
|||
101.SCM |
Inline XBRL Taxonomy Extension Schema Document |
|||
101.CAL |
Inline XBRL Taxonomy Extension Calculation Linkbase Document |
|||
101.DEF |
Inline XBRL Taxonomy Extension Definition Linkbase Document |
|||
101.LAB |
Inline XBRL Taxonomy Extension Label Linkbase Document |
|||
101.PRE |
Inline XBRL Taxonomy Extension Presentation Linkbase Document |
|||
104 |
Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
MOTORCAR PARTS OF AMERICA, INC. |
||
Dated: February 9, 2021 |
By: |
/s/ David Lee |
David Lee |
||
Chief Financial Officer |
||
Dated: February 9, 2021 |
By: |
/s/ Kamlesh Shah |
Kamlesh Shah |
||
Chief Accounting Officer |
Date: February 9, 2021
|
/s/ Selwyn Joffe
|
Selwyn Joffe
|
|
Chief Executive Officer
|
Date: February 9, 2021
|
/s/ David Lee
|
David Lee
|
|
Chief Financial Officer
|
Date: February 9, 2021
|
/s/ Kamlesh Shah
|
Kamlesh Shah
|
|
Chief Accounting Officer
|
1. |
The Quarterly Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities and Exchange Act of 1934; and
|
2. |
The information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Selwyn Joffe
|
|
Selwyn Joffe
|
|
Chief Executive Officer
|
|
February 9, 2021
|
1. |
The Quarterly Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities and Exchange Act of 1934; and
|
2. |
The information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ David Lee
|
|
David Lee
|
|
Chief Financial Officer
|
|
February 9, 2021
|
1. |
The Quarterly Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities and Exchange Act of 1934; and
|
2. |
The information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Kamlesh Shah
|
|
Kamlesh Shah
|
|
Chief Accounting Officer
|
|
February 9, 2021
|
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares |
Dec. 31, 2020 |
Mar. 31, 2020 |
---|---|---|
Shareholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, issued (in shares) | 19,056,292 | 18,969,380 |
Common stock, outstanding (in shares) | 19,056,292 | 18,969,380 |
Series A Junior Participating Preferred Stock [Member] | ||
Shareholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 20,000 | 20,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Condensed Consolidated Statements of Income - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Condensed Consolidated Statements of Income [Abstract] | ||||
Net sales | $ 122,568,000 | $ 125,574,000 | $ 372,654,000 | $ 385,096,000 |
Cost of goods sold | 98,327,000 | 97,913,000 | 295,300,000 | 303,279,000 |
Gross profit | 24,241,000 | 27,661,000 | 77,354,000 | 81,817,000 |
Operating expenses: | ||||
General and administrative | 14,005,000 | 14,390,000 | 38,210,000 | 39,410,000 |
Sales and marketing | 4,698,000 | 5,623,000 | 13,224,000 | 15,990,000 |
Research and development | 2,100,000 | 2,174,000 | 6,014,000 | 6,694,000 |
Foreign exchange impact of lease liabilities and forward contracts | (12,455,000) | (3,772,000) | (21,257,000) | (2,507,000) |
Total operating expenses | 8,348,000 | 18,415,000 | 36,191,000 | 59,587,000 |
Operating income | 15,893,000 | 9,246,000 | 41,163,000 | 22,230,000 |
Interest expense, net | 4,051,000 | 6,879,000 | 12,074,000 | 19,575,000 |
Income before income tax expense | 11,842,000 | 2,367,000 | 29,089,000 | 2,655,000 |
Income tax expense | 3,373,000 | 1,502,000 | 8,448,000 | 1,752,000 |
Net income | $ 8,469,000 | $ 865,000 | $ 20,641,000 | $ 903,000 |
Basic net income per share (in dollars per share) | $ 0.44 | $ 0.05 | $ 1.09 | $ 0.05 |
Diluted net income per share (in dollars per share) | $ 0.44 | $ 0.04 | $ 1.07 | $ 0.05 |
Weighted average number of shares outstanding: | ||||
Basic (in shares) | 19,053,232 | 18,961,517 | 19,016,302 | 18,895,893 |
Diluted (in shares) | 19,436,793 | 19,305,805 | 19,333,758 | 19,263,114 |
Condensed Consolidated Statements of Comprehensive Income - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Condensed Consolidated Statements of Comprehensive Income [Abstract] | ||||
Net income | $ 8,469,000 | $ 865,000 | $ 20,641,000 | $ 903,000 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation gain (loss) | 1,614,000 | 1,015,000 | (90,000) | 1,183,000 |
Total other comprehensive income (loss), net of tax | 1,614,000 | 1,015,000 | (90,000) | 1,183,000 |
Comprehensive income | $ 10,083,000 | $ 1,880,000 | $ 20,551,000 | $ 2,086,000 |
Company Background and Organization |
9 Months Ended |
---|---|
Dec. 31, 2020 | |
Company Background and Organization [Abstract] | |
Company Background and Organization |
1. Company Background and Organization
Motorcar Parts of America, Inc. and its subsidiaries (the “Company” or “MPA”) is a leading supplier of automotive aftermarket non-discretionary replacement parts and diagnostic equipment. These replacement parts are primarily sold to automotive retail chain stores and warehouse distributors throughout North America and to major automobile manufacturers for both their aftermarket programs and warranty replacement programs (“OES”). The Company’s diagnostic equipment primarily serves the global automotive component and powertrain testing market. The Company’s products include (i) rotating electrical products such as alternators and starters, (ii) wheel hub assemblies and bearings, (iii) brake-related products, which include brake calipers, brake boosters, and brake master cylinders, and (iv) diagnostics and other products, which include diagnostics systems, advanced power emulators used for the development of electric vehicles and aerospace applications, and custom power electronic products for quality control in the development and production of electric vehicles and turbochargers.
Pursuant to the guidance provided under the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) for segment reporting, the Company has identified its chief operating decision maker (“CODM”), reviewed the documents used by the CODM, and understands how such documents are used by the CODM to make financial and operating decisions. The Company has determined through this review process that its business comprises three separate operating segments. Two of the operating segments meet all the aggregation criteria, and are aggregated. The remaining operating segment does not meet the quantitative thresholds for individual disclosure and the Company has combined its operating segments into one reportable segment.
Impact of the Novel Coronavirus (“COVID-19”)
The outbreak of the COVID-19 pandemic has led to adverse impacts on the U.S. and global economies and created uncertainty regarding the potential effects on the Company’s employees, supply chain, operations, and customer demand. The COVID-19 pandemic could impact the Company’s operations and the operations of its customers, suppliers, and vendors because of quarantines, facility closures, travel, and logistics restrictions. The extent to which the COVID-19 pandemic impacts the Company will depend on numerous factors and future developments, which are highly uncertain and cannot be predicted, including, but not limited to: (i) the severity of the virus, (ii) the duration of a “second wave” or additional spikes, (iii) the effects of the pandemic on customers, suppliers, and vendors, (iv) the remedial actions and stimulus measures adopted by local, state and federal governments, and (v) the extent to which normal economic and operating conditions can resume. Even after the COVID-19 pandemic has subsided, the Company may continue to experience adverse impacts to its business because of an economic recession or depression that has occurred or may occur in the future. At this time, the Company is unable to predict accurately the ultimate long-term impact the COVID-19 pandemic will have on its business and financial condition.
|
Basis of Presentation and New Accounting Pronouncements |
9 Months Ended |
---|---|
Dec. 31, 2020 | |
Basis of Presentation and New Accounting Pronouncements [Abstract] | |
Basis of Presentation and New Accounting Pronouncements |
2. Basis of Presentation and New Accounting Pronouncements
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended December 31, 2020 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2021. This report should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the fiscal year ended March 31, 2020, which are included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on June 15, 2020.
The accompanying condensed consolidated financial statements have been prepared on a consistent basis with, and there have been no material changes to, except as noted below, the accounting policies described in Note 2, Summary of Significant Accounting Policies, to the consolidated financial statements that are presented in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2020.
New Accounting Pronouncements Recently Adopted
Measurement of Credit Losses on Financial Instruments
In June 2016, the FASB issued an accounting pronouncement related to the measurement of credit losses on financial instruments. This pronouncement, along with a subsequent Accounting Standards Updates (“ASU”) issued to clarify certain provisions of the new guidance, changed the impairment model for most financial assets and requires the use of an “expected loss” model for instruments measured at amortized cost. Under this model, entities are required to estimate the lifetime expected credit loss on such instruments and record an allowance to offset the amortized cost basis of the financial asset, resulting in a net presentation of the amount expected to be collected on the financial asset. The adoption of this guidance on April 1, 2020 increased the Company’s required disclosures for its expected credit losses but did not have a material effect on its condensed consolidated financial statements.
Prior to April 1, 2020, accounts receivable were recorded at cost less an allowance for doubtful accounts. The net amount of accounts receivable and corresponding allowance for doubtful accounts were presented in the condensed consolidated balance sheets. The Company maintains allowances for uncollectible accounts receivable for estimated losses resulting from the failure or inability of its customers to make required payments. Furthermore, receivable balances were assessed quarterly for impairment and an allowance was recorded if the receivable was considered impaired. Subsequent to April 1, 2020, accounts receivable are recorded at amortized cost less an allowance for credit losses that are not expected to be recovered. The net amount of accounts receivable and corresponding allowance for credit losses are presented in the condensed consolidated balance sheets. The Company maintains allowances for credit losses resulting from the expected failure or inability of its customers to make required payments. The Company recognizes the allowance for credit losses at inception and reassess quarterly based on the asset’s expected collectability. The allowance is based on multiple factors including historical experience with bad debts, the credit quality of the customer base, the aging of such receivables and current macroeconomic conditions, such as COVID-19, as well as expectations of conditions in the future, if applicable. The Company’s allowance for credit losses is based on the assessment of the collectability of assets pooled together with similar risk characteristics.
The Company records a provision for expected credit losses using a loss-rate method based on the ratio of its historical write-offs to its average trade accounts receivable. At each reporting period, the Company assesses whether financial assets in a pool continue to display similar risk characteristics. If particular receivables no longer display risk characteristics that are similar to those of the receivables in the pool, the Company may determine that it needs to move those receivables to a different pool or perform an individual assessment of expected credit losses for those specific receivables.
Fair Value Measurements
In August 2018, the FASB issued guidance, which changed the disclosure requirements for fair value measurements by removing, adding and modifying certain disclosures, including the range and weighted-average of significant unobservable inputs used to develop Level 3 fair value measurements. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 measurements, and the narrative description of measurement uncertainty should be applied prospectively only for the most recent interim or annual period presented in the initial year of adoption. All other amendments should be applied retrospectively applied to all periods presented upon their effective date. The adoption of this guidance on April 1, 2020 modified certain of the Company’s disclosures for its Level 3 fair value measurements but did not have an impact on its consolidated financial statements.
Reference Rate Reform
In March 2020, the FASB issued guidance that, for a limited time, eases the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference the London Interbank Offered Rate or another reference rate expected to be discontinued due to reference rate reform. These amendments are effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. The Company will apply these amendments prospectively. The adoption of this guidance on April 1, 2020 did not have an impact on the Company’s condensed consolidated financial statements for the three and nine months ended December 31, 2020.
New Accounting Pronouncements Not Yet Adopted
Income Taxes
In December 2019, the FASB issued guidance that simplifies the accounting for income taxes, eliminates certain exceptions within ASC 740, Income Taxes, and clarifies certain aspects of the current guidance to promote consistent application. This guidance is effective for annual and interim periods in fiscal years beginning after December 15, 2020. Early adoption is permitted. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements.
|
Accounts Receivable - Net |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable - Net [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable - Net |
3. Accounts Receivable — Net
The Company has trade accounts receivable that result from the sale of goods and services. Accounts receivable — net includes offset accounts related to customer payment discrepancies, returned goods authorizations (“RGAs”) issued for in-transit unit returns, and allowances for credit losses. The Company believes its credit risk with respect to trade accounts receivable is limited due to its credit evaluation process and the long-term nature of its relationships with its largest customers. The Company utilizes a historical loss rate method, adjusted for any changes in economic conditions or risk characteristics, to estimate its expected credit losses each period. When developing an estimate of expected credit losses, the Company considers all available relevant information regarding the collectability of cash flows, including historical information, current conditions, and reasonable and supportable forecasts of future economic conditions over the contractual life of the receivable. The historical loss rate method considers past write-offs of trade accounts receivable over a period commensurate with the initial term of the Company’s contracts with its customers. The Company recognizes the allowance for credit losses at inception and reassesses quarterly based on management’s expectation of the asset’s collectability. The Company’s accounts receivable are short-term in nature and written off only when all collection attempts have failed. The Company uses receivable discount programs with certain customers and their respective banks (see Note 10).
Accounts receivable — net is comprised of the following:
The following table provides a roll-forward of the allowance for credit losses that is deducted from accounts receivable to present the net amount expected to be collected. During the nine months ended December 31, 2020, the Company wrote off amounts previously fully reserved for in connection the bankruptcy filing of one of its customers.
|
Inventory |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory |
4. Inventory
Inventory is comprised of the following:
|
Contract Assets |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract Assets [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract Assets |
5. Contract Assets
During the three and nine months ended December 31, 2020, the Company reduced the carrying value of Remanufactured Cores held at customers’ locations by $1,304,000 and $3,580,000, respectively.
Contract assets are comprised of the following:
|
Significant Customer and Other Information |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Customer and Other Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Customer and Other Information |
6. Significant Customer and Other Information
Significant Customer Concentrations
The largest customers accounted for the following percentage of net sales:
The largest customers accounted for the following percentage of accounts receivable – trade:
Geographic and Product Information
The Company’s products are sold predominantly in the U.S. and accounted for the following percentages of net sales:
Significant Supplier Concentrations
The Company had no suppliers that accounted for more than 10% of inventory purchases for the three and nine months ended December 31, 2020 and 2019.
|
Debt |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt |
7. Debt
The Company is party to a $268,620,000 senior secured financing, (as amended from time to time, the “Credit Facility”) with a syndicate of lenders, and PNC Bank, National Association, as administrative agent, consisting of (i) a $238,620,000 revolving loan facility, subject to borrowing base restrictions, a $24,000,000 sublimit for borrowings by Canadian borrowers, and a $20,000,000 sublimit for letters of credit (the “Revolving Facility”) and (ii) a $30,000,000 term loan facility (the “Term Loans”). The loans under the Credit Facility mature on June 5, 2023. The Credit Facility currently permits the payment of up to $30,000,000 of dividends and share repurchases for this fiscal year, subject to pro forma compliance with financial covenants. In connection with the Credit Facility, the lenders have a security interest in substantially all of the assets of the Company.
The Term Loans require quarterly principal payments of $937,500. The Credit Facility bears interest at rates equal to either LIBOR plus a margin of 2.25%, 2.50% or 2.75% or a reference rate plus a margin of 1.25%, 1.50% or 1.75%, in each case depending on the senior leverage ratio as of the applicable measurement date. There is also a facility fee of 0.375% to 0.50%, depending on the senior leverage ratio as of the applicable measurement date. The interest rate on the Company’s Term Loans and Revolving Facility was 2.91% and 2.90%, respectively, at December 31, 2020, and 4.34% and 3.64%, respectively, at March 31, 2020.
The Credit Facility, among other things, requires the Company to maintain certain financial covenants including a maximum senior leverage ratio and a minimum fixed charge coverage ratio. The Company was in compliance with all financial covenants at December 31, 2020.
The Company had cash of $12,800,000 at December 31, 2020 and paid down its outstanding debt by $95,813,000 during the nine months ended December 31, 2020. However, the Credit Facility allows up to $6,000,000 of credit for cash when computing the senior leverage ratio. In addition to other covenants, the Credit Facility places limits on the Company’s ability to incur liens, incur additional indebtedness, make loans and investments, engage in mergers and acquisitions, engage in asset sales, redeem or repurchase capital stock, alter the business conducted by the Company and its subsidiaries, transact with affiliates, prepay, redeem or purchase subordinated debt, and amend or otherwise alter debt agreements.
The following summarizes information about the Term Loans:
Future repayments of the Term Loans are as follows:
The Company had $59,000,000 and $152,000,000 outstanding under the Revolving Facility at December 31, 2020 and March 31, 2020, respectively. In addition, $5,937,000 was outstanding for letters of credit at December 31, 2020. At December 31, 2020, after certain contractual adjustments, $127,236,000 was available under the Revolving Facility.
|
Contract Liabilities |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract Liabilities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract Liabilities |
8. Contract Liabilities
Contract liabilities are comprised of the following:
|
Leases |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases |
9. Leases
The Company leases various facilities in North America and Asia under operating leases expiring through August 2033. The Company has material nonfunctional currency leases that could have a material impact on the Company’s condensed consolidated statements of income. As required for other monetary liabilities, lessees remeasure foreign currency-denominated lease liabilities using the exchange rate at each reporting date, but the lease assets are nonmonetary assets measured at historical rates and are not affected by subsequent changes in the exchange rates.
In connection with the remeasurement of these leases, the Company recorded gains of $8,638,000 and $2,128,000 during the three months ended December 31, 2020 and 2019, respectively, and $12,241,000 and $1,491,000 during the nine months ended December 31, 2020 and 2019, respectively. These gains are included in “foreign exchange impact of lease liabilities and forward contracts” in the condensed consolidated statements of income.
Balance sheet information for leases is as follows:
Lease cost recognized in the condensed consolidated statements of income is as follows:
Maturities of lease commitments at December 31, 2020 were as follows:
Other information about leases is as follows:
|
Accounts Receivable Discount Programs |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable Discount Programs [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable Discount Programs |
10. Accounts Receivable Discount Programs
The Company uses receivable discount programs with certain customers and their respective banks. Under these programs, the Company may sell those customers’ receivables to those banks at a discount to be agreed upon at the time the receivables are sold. These discount arrangements allow the Company to accelerate receipt of payment on customers’ receivables.
The following is a summary of accounts receivable discount programs:
|
Net Income per Share |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income per Share |
11. Net Income per Share
Basic net income per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted net income per share includes the effect, if any, from the potential exercise or conversion of securities, such as stock options, which would result in the issuance of incremental shares of common stock to the extent such impact is not anti-dilutive.
The following presents a reconciliation of basic and diluted net income per share:
Potential common shares that would have the effect of increasing diluted net income per share or decreasing diluted net loss per share are considered to be anti-dilutive and as such, these shares are not included in calculating diluted net income per share. For the three months ended December 31, 2020 and 2019, there were 1,319,937 and 1,047,224, respectively, of potential common shares not included in the calculation of diluted net income per share because their effect was anti-dilutive. For the nine months ended December 31, 2020 and 2019, there were 1,328,437 and 1,031,624, respectively, of potential common shares not included in the calculation of diluted net income per share because their effect was anti-dilutive.
|
Income Taxes |
9 Months Ended |
---|---|
Dec. 31, 2020 | |
Income Taxes [Abstract] | |
Income Taxes |
12. Income Taxes
The Company recorded income tax expense of $3,373,000, or an effective tax rate of 28.5%, and $1,502,000, or an effective tax rate of 63.5%, for the three months ended December 31, 2020 and 2019, respectively. The Company recorded income tax expense of $8,448,000, or an effective tax rate of 29.0%, and $1,752,000, or an effective tax rate of 66.0%, for the nine months ended December 31, 2020 and 2019, respectively. The effective tax rates for the three and nine months ended December 31, 2020, were primarily impacted by foreign income taxed at rates that are different from the federal statutory rate and non-deductible executive compensation under Internal Revenue Code Section 162(m).
The Company continues to record a valuation allowance against its foreign deferred tax assets as a result of its non-U.S. net operating loss carry-forwards and non-U.S. research and development credits in connection with its acquisitions due to the uncertainty of their utilization in future periods. Should the actual amount differ from the Company’s estimates, the amount of the valuation allowance could be impacted. Realization of deferred tax assets from its U.S. operations is dependent upon the Company’s ability to generate sufficient future taxable income. Significant judgment is required in determining the Company’s provision for income taxes, deferred tax assets and liabilities and any valuation allowance recorded against the Company’s net deferred tax assets. The Company makes these estimates and judgments about its future taxable income that are based on assumptions that are consistent with the Company’s future plans. A valuation allowance is established when the Company believes it is not more likely than not all or some of a deferred tax assets will be realized. In evaluating the Company’s ability to recover deferred tax assets within the jurisdiction in which they arise, the Company considers all available positive and negative evidence.
At December 31, 2020, the Company is not under examination in any jurisdiction and the years ended March 31, 2016 through 2020 remain subject to examination. The Company believes no significant changes in the unrecognized tax benefits will occur within the next 12 months.
|
Financial Risk Management and Derivatives |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Risk Management and Derivatives [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Risk Management and Derivatives |
13. Financial Risk Management and Derivatives
Purchases and expenses denominated in currencies other than the U.S. dollar, which are primarily related to the Company’s overseas facilities, expose the Company to market risk from material movements in foreign exchange rates between the U.S. dollar and the foreign currencies. The Company’s primary risk exposure is from fluctuations in the value of the Mexican peso and to a lesser extent the Chinese yuan. To mitigate these risks, the Company enters into forward foreign currency exchange contracts to exchange U.S. dollars for these foreign currencies. The extent to which forward foreign currency exchange contracts are used, is modified periodically in response to the Company’s estimate of market conditions and the terms and length of anticipated requirements.
The Company enters into forward foreign currency exchange contracts in order to reduce the impact of foreign currency fluctuations and not to engage in currency speculation. The use of derivative financial instruments allows the Company to reduce its exposure to the risk that the eventual cash outflow resulting from funding the expenses of the foreign operations will be materially affected by changes in exchange rates between the U.S. dollar and the foreign currencies. The Company does not hold or issue financial instruments for trading purposes. The Company designates forward foreign currency exchange contracts for forecasted expenditure requirements to fund foreign operations.
The Company had forward foreign currency exchange contracts with a U.S. dollar equivalent notional value of $37,601,000 and $42,052,000 at December 31, 2020 and March 31, 2020, respectively. These contracts generally have a term of one year or less, at rates agreed at the inception of the contracts. The counterparty to this derivative transaction is a major financial institution with investment grade credit rating; however, the Company is exposed to credit risk with this institution. The credit risk is limited to the potential unrealized gains (which offset currency fluctuations adverse to the Company) in any such contract should this counterparty fail to perform as contracted. Any changes in the fair values of forward foreign currency exchange contracts are included in “foreign exchange impact of lease liabilities and forward contracts” in the condensed consolidated statements of income.
The following shows the effect of derivative instruments on the condensed consolidated statements of income:
The fair value of the forward foreign currency exchange contracts of $2,732,000 is included in prepaid and other current assets in the condensed consolidated balance sheet at December 31, 2020. The fair value of the forward foreign currency exchange contracts of $6,284,000 is included in other current liabilities in the condensed consolidated balance sheet at March 31, 2020. The changes in the fair values of forward foreign currency exchange contracts are included in “foreign exchange impact of lease liabilities and forward contracts” in the condensed consolidated statements of cash flows for the nine months ended December 31, 2020 and 2019.
|
Fair Value Measurements |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements |
14. Fair Value Measurements
The following summarizes financial assets and liabilities measured at fair value, by level within the fair value hierarchy:
Short-term Investments and Deferred Compensation
The Company’s short-term investments, which fund its deferred compensation liabilities, consist of investments in mutual funds. These investments are classified as Level 1 as the shares of these mutual funds trade with sufficient frequency and volume to enable the Company to obtain pricing information on an ongoing basis.
Forward Foreign Currency Exchange Contracts
The forward foreign currency exchange contracts are primarily measured based on the foreign currency spot and forward rates quoted by the banks or foreign currency dealers (See Note 13).
Contingent Consideration
In December 2018, the Company completed the acquisition of certain assets and assumption of certain liabilities from Mechanical Power Conversion, LLC (“E&M”). In connection with this acquisition, the Company is contingently obligated to make additional payments to the former owners of E&M up to an aggregate of $5,200,000 over a three-year period.
E&M Research and Development (“R&D”) Event Milestone
In connection with the Company’s E&M acquisition in December 2018, it had a two-year R&D event milestone based on technology development and transfer. At December 31, 2020, the milestone was achieved and, as a result, the Company will pay $1,250,000 to the former owners of E&M during the fourth fiscal quarter ending March 31, 2021.
E&M Gross Profit Earn-out Consideration
The fair value of the three-year gross profit earn-out consideration was $1,350,000 and $1,230,000 at December 31, 2020 and March 31, 2020, respectively, determined using a Monte Carlo Simulation Model. Any subsequent changes in the fair value of the contingent consideration liability will be recorded in current period earnings as a general and administrative expense.
The assumptions used to determine the fair value is as follows:
In January 2019, the Company completed the acquisition of all the equity interests of Dixie. In connection with this acquisition, the Company was contingently obligated to make additional payments to the former owners of Dixie up to $1,130,000 over a two-year period and will pay approximately $8,000 during the fourth fiscal quarter ending March 31, 2021, as settlement of this obligation.
The Company’s contingent consideration is recorded in accounts payable and accrued liabilities and other liabilities in its condensed consolidated balance sheets at December 31, 2020 and March 31, 2020, and is a Level 3 liability measured at fair value.
The following table summarizes the activity for financial assets and liabilities utilizing Level 3 fair value measurements:
During the three and nine months ended December 31, 2020, the Company had no other significant measurements of assets or liabilities at fair value on a nonrecurring basis subsequent to their initial recognition.
The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their fair value due to the short-term nature of these instruments. The carrying amounts of the revolving loan, term loan and other long-term liabilities approximate their fair value based on the variable nature of interest rates and current rates for instruments with similar characteristics.
|
Share-based Payments |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payments |
15. Share-based Payments
Stock Options
The Company granted options to purchase 345,423 and 302,539 shares of common stock during the nine months ended December 31, 2020 and 2019, respectively. The cost associated with stock options is estimated using the Black-Scholes option-pricing model. This model requires the input of subjective assumptions including the expected volatility of the underlying stock and the expected holding period of the option. These subjective assumptions are based on both historical and other information. Changes in the values assumed and used in the model can materially affect the estimate of fair value.
The following assumptions were used to derive the weighted average fair value of the stock options granted:
The following is a summary of stock option transactions:
At December 31, 2020, options to purchase 606,910 shares of common stock were unvested at a weighted average exercise price of $17.11.
At December 31, 2020, there was $3,293,000 of total unrecognized compensation expense related to unvested stock option awards. Compensation expense related to unvested stock option awards will be recognized over a weighted average vesting period of approximately 1.9 years.
Restricted Stock Units and Restricted Stock (collectively “RSUs”)
During the nine months ended December 31, 2020 and 2019, the Company granted 251,801 and 113,483 shares of RSUs, respectively, with an estimated grant date fair value of $4,150,000 and $2,112,000, respectively, based on the closing market price on the grant date.
The following is a summary of non-vested RSUs:
At December 31, 2020, there was $4,589,000 of unrecognized compensation expense related to these awards, which will be recognized over the remaining vesting period of approximately 1.7 years.
|
Commitments and Contingencies |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies |
16. Commitments and Contingencies
Warranty Returns
The Company allows its customers to return goods that their consumers have returned to them, whether or not the returned item is defective (“warranty returns”). The Company accrues an estimate of its exposure to warranty returns based on a historical analysis of the level of this type of return as a percentage of unit sales. Amounts charged to expense for these warranty returns are considered in arriving at the Company’s net sales.
The following summarizes the changes in the warranty return accrual:
Contingencies
The Company is subject to various lawsuits and claims. In addition, government agencies and self-regulatory organizations have the ability to conduct periodic examinations of and administrative proceedings regarding the Company’s business. Following an audit in fiscal 2019, the U.S. Customs and Border Protection stated that it believed that the Company owed additional duties of approximately $17 million from 2011 through mid-2018 relating to products that it imported from Mexico. The Company does not believe that this amount is correct and believes that it has numerous defenses and intends to dispute this amount vigorously. The Company cannot assure that the U.S. Customs and Border Protection will agree or that it will not need to accrue or pay additional amounts in the future.
|
Basis of Presentation and New Accounting Pronouncements (Policies) |
9 Months Ended |
---|---|
Dec. 31, 2020 | |
Basis of Presentation and New Accounting Pronouncements [Abstract] | |
Basis of Presentation |
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended December 31, 2020 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2021. This report should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the fiscal year ended March 31, 2020, which are included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on June 15, 2020.
The accompanying condensed consolidated financial statements have been prepared on a consistent basis with, and there have been no material changes to, except as noted below, the accounting policies described in Note 2, Summary of Significant Accounting Policies, to the consolidated financial statements that are presented in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2020.
|
New Accounting Pronouncements Recently and Not Yet Adopted |
New Accounting Pronouncements Recently Adopted
Measurement of Credit Losses on Financial Instruments
In June 2016, the FASB issued an accounting pronouncement related to the measurement of credit losses on financial instruments. This pronouncement, along with a subsequent Accounting Standards Updates (“ASU”) issued to clarify certain provisions of the new guidance, changed the impairment model for most financial assets and requires the use of an “expected loss” model for instruments measured at amortized cost. Under this model, entities are required to estimate the lifetime expected credit loss on such instruments and record an allowance to offset the amortized cost basis of the financial asset, resulting in a net presentation of the amount expected to be collected on the financial asset. The adoption of this guidance on April 1, 2020 increased the Company’s required disclosures for its expected credit losses but did not have a material effect on its condensed consolidated financial statements.
Prior to April 1, 2020, accounts receivable were recorded at cost less an allowance for doubtful accounts. The net amount of accounts receivable and corresponding allowance for doubtful accounts were presented in the condensed consolidated balance sheets. The Company maintains allowances for uncollectible accounts receivable for estimated losses resulting from the failure or inability of its customers to make required payments. Furthermore, receivable balances were assessed quarterly for impairment and an allowance was recorded if the receivable was considered impaired. Subsequent to April 1, 2020, accounts receivable are recorded at amortized cost less an allowance for credit losses that are not expected to be recovered. The net amount of accounts receivable and corresponding allowance for credit losses are presented in the condensed consolidated balance sheets. The Company maintains allowances for credit losses resulting from the expected failure or inability of its customers to make required payments. The Company recognizes the allowance for credit losses at inception and reassess quarterly based on the asset’s expected collectability. The allowance is based on multiple factors including historical experience with bad debts, the credit quality of the customer base, the aging of such receivables and current macroeconomic conditions, such as COVID-19, as well as expectations of conditions in the future, if applicable. The Company’s allowance for credit losses is based on the assessment of the collectability of assets pooled together with similar risk characteristics.
The Company records a provision for expected credit losses using a loss-rate method based on the ratio of its historical write-offs to its average trade accounts receivable. At each reporting period, the Company assesses whether financial assets in a pool continue to display similar risk characteristics. If particular receivables no longer display risk characteristics that are similar to those of the receivables in the pool, the Company may determine that it needs to move those receivables to a different pool or perform an individual assessment of expected credit losses for those specific receivables.
Fair Value Measurements
In August 2018, the FASB issued guidance, which changed the disclosure requirements for fair value measurements by removing, adding and modifying certain disclosures, including the range and weighted-average of significant unobservable inputs used to develop Level 3 fair value measurements. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 measurements, and the narrative description of measurement uncertainty should be applied prospectively only for the most recent interim or annual period presented in the initial year of adoption. All other amendments should be applied retrospectively applied to all periods presented upon their effective date. The adoption of this guidance on April 1, 2020 modified certain of the Company’s disclosures for its Level 3 fair value measurements but did not have an impact on its consolidated financial statements.
Reference Rate Reform
In March 2020, the FASB issued guidance that, for a limited time, eases the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference the London Interbank Offered Rate or another reference rate expected to be discontinued due to reference rate reform. These amendments are effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. The Company will apply these amendments prospectively. The adoption of this guidance on April 1, 2020 did not have an impact on the Company’s condensed consolidated financial statements for the three and nine months ended December 31, 2020.
New Accounting Pronouncements Not Yet Adopted
Income Taxes
In December 2019, the FASB issued guidance that simplifies the accounting for income taxes, eliminates certain exceptions within ASC 740, Income Taxes, and clarifies certain aspects of the current guidance to promote consistent application. This guidance is effective for annual and interim periods in fiscal years beginning after December 15, 2020. Early adoption is permitted. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements.
|
Accounts Receivable - Net (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable - Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable |
Accounts receivable — net is comprised of the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Credit Losses |
The following table provides a roll-forward of the allowance for credit losses that is deducted from accounts receivable to present the net amount expected to be collected. During the nine months ended December 31, 2020, the Company wrote off amounts previously fully reserved for in connection the bankruptcy filing of one of its customers.
|
Inventory (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Net |
Inventory is comprised of the following:
|
Contract Assets (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract Assets [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract Assets |
Contract assets are comprised of the following:
|
Significant Customer and Other Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Customer and Other Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Concentrations of Risk |
Significant Customer Concentrations
The largest customers accounted for the following percentage of net sales:
The largest customers accounted for the following percentage of accounts receivable – trade:
Geographic and Product Information
The Company’s products are sold predominantly in the U.S. and accounted for the following percentages of net sales:
|
Debt (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Information About the Term Loan |
The following summarizes information about the Term Loans:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
Future Repayments of the Amended Term Loan, by Fiscal Year |
Future repayments of the Term Loans are as follows:
|
Contract Liabilities (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract Liabilities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract Liabilities |
Contract liabilities are comprised of the following:
|
Leases (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Information for Leases |
Balance sheet information for leases is as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease Cost Recognized in Consolidated Statements of Income |
Lease cost recognized in the condensed consolidated statements of income is as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maturity of Lease Commitments |
Maturities of lease commitments at December 31, 2020 were as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Information about Leases |
Other information about leases is as follows:
|
Accounts Receivable Discount Programs (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable Discount Programs [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable Discount Programs |
The following is a summary of accounts receivable discount programs:
|
Net Income per Share (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Basic and Diluted Net Income Per Share |
The following presents a reconciliation of basic and diluted net income per share:
|
Financial Risk Management and Derivatives (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Risk Management and Derivatives [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments on Consolidated Statements of Income |
The following shows the effect of derivative instruments on the condensed consolidated statements of income:
|
Fair Value Measurements (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Assets and Liabilities Measured at Fair Value Recurring Basis |
The following summarizes financial assets and liabilities measured at fair value, by level within the fair value hierarchy:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assumptions Used to Determine Fair Value of Contingent Consideration |
The assumptions used to determine the fair value is as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in Warrant Liability Measured at Fair Value Recurring Basis Using Significant Unobservable Inputs (Level 3) |
The following table summarizes the activity for financial assets and liabilities utilizing Level 3 fair value measurements:
|
Share-based Payments (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Black-Scholes Option Pricing Model Assumptions Used to Derive Weighted Average Fair Value of Stock Options Granted |
The following assumptions were used to derive the weighted average fair value of the stock options granted:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Option Transactions |
The following is a summary of stock option transactions:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted Stock Units Activity |
The following is a summary of non-vested RSUs:
|
Commitments and Contingencies (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Warranty Return Accrual |
The following summarizes the changes in the warranty return accrual:
|
Company Background and Organization (Details) |
9 Months Ended |
---|---|
Dec. 31, 2020
Segment
| |
Company Background and Organization [Abstract] | |
Number of operating segments | 3 |
Number of reportable segments | 1 |
Accounts Receivable - Net (Details) - USD ($) |
9 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Mar. 31, 2020 |
|
Components of accounts receivable [Abstract] | ||
Accounts receivable - trade | $ 56,568,000 | $ 109,164,000 |
Allowance for credit losses | (328,000) | (4,252,000) |
Customer payment discrepancies | (531,000) | (1,040,000) |
Customer returns RGA issued | (10,438,000) | (12,124,000) |
Total accounts receivable - net | 45,271,000 | $ 91,748,000 |
Allowance for credit losses [Roll Forward] | ||
Balance at beginning of period | 4,252,000 | |
Provision for expected credit losses | 74,000 | |
Recoveries | (100,000) | |
Amounts written off charged against the allowance | (3,898,000) | |
Balance at end of period | $ 328,000 |
Inventory (Details) - USD ($) |
Dec. 31, 2020 |
Mar. 31, 2020 |
---|---|---|
Inventory [Abstract] | ||
Raw materials | $ 123,423,000 | $ 99,360,000 |
Work-in-process | 9,391,000 | 3,906,000 |
Finished goods | 164,020,000 | 135,601,000 |
Inventory, gross | 296,834,000 | 238,867,000 |
Less allowance for excess and obsolete inventory | (13,303,000) | (13,208,000) |
Inventory - net | 283,531,000 | 225,659,000 |
Inventory unreturned | 12,750,000 | 9,021,000 |
Total inventory | $ 296,281,000 | $ 234,680,000 |
Contract Assets (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2020 |
Mar. 31, 2020 |
|
Contract Assets [Abstract] | |||
Long-term contract assets, write-down | $ 1,304,000 | $ 3,580,000 | |
Short-term contract assets [Abstract] | |||
Cores expected to be returned by customers | 17,231,000 | 17,231,000 | $ 12,579,000 |
Upfront payments to customers | 1,175,000 | 1,175,000 | 2,865,000 |
Core premiums paid to customers | 6,976,000 | 6,976,000 | 4,888,000 |
Total short-term contract assets | 25,382,000 | 25,382,000 | 20,332,000 |
Long-term contract assets [Abstract] | |||
Remanufactured cores held at customers' locations | 216,108,000 | 216,108,000 | 217,616,000 |
Upfront payments to customers | 334,000 | 334,000 | 589,000 |
Core premiums paid to customers | 26,533,000 | 26,533,000 | 15,766,000 |
Long-term core inventory deposits | 5,569,000 | 5,569,000 | 5,569,000 |
Total long-term contract assets | $ 248,544,000 | $ 248,544,000 | $ 239,540,000 |
Contract Liabilities (Details) - USD ($) |
Dec. 31, 2020 |
Mar. 31, 2020 |
---|---|---|
Short-term contract liabilities [Abstract] | ||
Customer core returns accruals | $ 18,212,000 | $ 4,126,000 |
Customer allowances earned | 15,207,000 | 13,844,000 |
Customer deposits | 2,552,000 | 1,365,000 |
Core bank liability | 1,072,000 | 528,000 |
Accrued core payment, net | 7,735,000 | 8,048,000 |
Total short-term contract liabilities | 44,778,000 | 27,911,000 |
Long-term contract liabilities [Abstract] | ||
Customer core returns accruals | 84,952,000 | 77,927,000 |
Customer allowances earned | 381,000 | 542,000 |
Core bank liability | 17,303,000 | 7,556,000 |
Accrued core payment, net | 1,947,000 | 6,076,000 |
Total long-term contract liabilities | $ 104,583,000 | $ 92,101,000 |
Leases, General Information (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Leases [Abstract] | ||||
Gain (loss) in foreign currency-denominated lease liabilities | $ 8,638,000 | $ 2,128,000 | $ 12,241,000 | $ 1,491,000 |
Leases, Balance Sheet Information (Details) - USD ($) |
Dec. 31, 2020 |
Mar. 31, 2020 |
---|---|---|
Assets [Abstract] | ||
Operating, Operating lease assets | $ 74,685,000 | $ 53,029,000 |
Finance, Plant and equipment | 8,559,000 | 6,922,000 |
Total leased assets | 83,244,000 | 59,951,000 |
Current [Abstract] | ||
Operating, Operating lease liabilities | 6,232,000 | 5,104,000 |
Finance, Other current liabilities | 2,555,000 | 2,059,000 |
Long-term [Abstract] | ||
Operating, Long-term operating lease liabilities | 71,569,000 | 61,425,000 |
Finance, Other liabilities | 4,981,000 | 3,905,000 |
Total lease liabilities | $ 85,337,000 | $ 72,493,000 |
Leases, Cost Recogized in Consolidated Statements of Income (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Lease cost [Abstract] | ||||
Operating lease cost | $ 2,962,000 | $ 2,402,000 | $ 8,522,000 | $ 6,287,000 |
Short-term lease cost | 373,000 | 278,000 | 1,027,000 | 976,000 |
Variable lease cost | 183,000 | 133,000 | 556,000 | 420,000 |
Finance lease cost [Abstract] | ||||
Amortization of finance lease assets | 458,000 | 448,000 | 1,299,000 | 1,178,000 |
Interest on finance lease liabilities | 98,000 | 73,000 | 274,000 | 214,000 |
Total lease cost | $ 4,074,000 | $ 3,334,000 | $ 11,678,000 | $ 9,075,000 |
Leases, Maturities of Lease Commitments (Details) - USD ($) |
Dec. 31, 2020 |
Mar. 31, 2020 |
---|---|---|
Operating Leases [Abstract] | ||
2021 - remaining three months | $ 2,793,000 | |
2022 | 10,444,000 | |
2023 | 9,364,000 | |
2024 | 8,129,000 | |
2025 | 8,095,000 | |
Thereafter | 69,261,000 | |
Total lease payments | 108,086,000 | |
Less amount representing interest | (30,285,000) | |
Present value of lease liabilities | 77,801,000 | |
Finance Leases [Abstract] | ||
2021 - remaining three months | 743,000 | |
2022 | 2,790,000 | |
2023 | 2,152,000 | |
2024 | 1,358,000 | |
2025 | 931,000 | |
Thereafter | 300,000 | |
Total lease payments | 8,274,000 | |
Less amount representing interest | (738,000) | |
Present value of lease liabilities | 7,536,000 | |
Total [Abstract] | ||
2021 - remaining three months | 3,536,000 | |
2022 | 13,234,000 | |
2023 | 11,516,000 | |
2024 | 9,487,000 | |
2025 | 9,026,000 | |
Thereafter | 69,561,000 | |
Total lease payments | 116,360,000 | |
Less amount representing interest | (31,023,000) | |
Present value of lease liabilities | $ 85,337,000 | $ 72,493,000 |
Leases, Other Information (Details) |
Dec. 31, 2020 |
---|---|
Weighted-average remaining lease term (years): [Abstract] | |
Finance leases | 3 years 4 months 24 days |
Operating leases | 11 years 3 months 18 days |
Weighted-average discount rate: [Abstract] | |
Finance leases | 5.50% |
Operating leases | 5.90% |
Accounts Receivable Discount Programs (Details) - USD ($) |
9 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Accounts Receivable Discount Programs [Abstract] | ||
Receivables discounted | $ 367,102,000 | $ 341,339,000 |
Weighted average days | 333 days | 347 days |
Annualized weighted average discount rate | 2.10% | 3.50% |
Amount of discount recognized as interest expense | $ 7,277,000 | $ 11,570,000 |
Net Income per Share (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 |
Sep. 30, 2020 |
Jun. 30, 2020 |
Dec. 31, 2019 |
Sep. 30, 2019 |
Jun. 30, 2019 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Reconciliation of basic and diluted net income per share [Abstract] | ||||||||
Net income | $ 8,469,000 | $ 15,184,000 | $ (3,012,000) | $ 865,000 | $ 6,189,000 | $ (6,151,000) | $ 20,641,000 | $ 903,000 |
Basic shares (in shares) | 19,053,232 | 18,961,517 | 19,016,302 | 18,895,893 | ||||
Effect of potentially dilutive securities (in shares) | 383,561 | 344,288 | 317,456 | 367,221 | ||||
Diluted shares (in shares) | 19,436,793 | 19,305,805 | 19,333,758 | 19,263,114 | ||||
Net income per share [Abstract] | ||||||||
Basic net income per share (in dollars per share) | $ 0.44 | $ 0.05 | $ 1.09 | $ 0.05 | ||||
Diluted net income per share (in dollars per share) | $ 0.44 | $ 0.04 | $ 1.07 | $ 0.05 | ||||
Options [Member] | ||||||||
Antidilutive Securities [Abstract] | ||||||||
Antidilutive shares excluded from computation of earnings per share (in shares) | 1,319,937 | 1,047,224 | 1,328,437 | 1,031,624 |
Income Taxes (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Income Taxes [Abstract] | ||||
Income tax expense | $ 3,373,000 | $ 1,502,000 | $ 8,448,000 | $ 1,752,000 |
Effective income tax rate | 28.50% | 63.50% | 29.00% | 66.00% |
Share-based Payments - Stock Options Activity (Details) - Stock Options [Member] |
9 Months Ended | |
---|---|---|
Dec. 31, 2020
USD ($)
$ / shares
shares
|
Dec. 31, 2019
$ / shares
shares
|
|
Black-Scholes option pricing model assumptions used to derive weighted average fair value of stock options granted [Abstract] | ||
Weighted average risk free interest rate | 0.44% | 1.76% |
Weighted average expected holding period | 5 years 11 months 15 days | 5 years 8 months 12 days |
Weighted average expected volatility | 44.90% | 42.50% |
Weighted average expected dividend yield | 0.00% | 0.00% |
Weighted average fair value of options granted (in dollars per share) | $ 6.43 | $ 8.27 |
Number of Shares [Roll Forward] | ||
Outstanding at beginning of period (in shares) | shares | 1,536,123 | |
Granted (in shares) | shares | 345,423 | 302,539 |
Exercised (in shares) | shares | (14,794) | |
Forfeited (in shares) | shares | (43,881) | |
Outstanding at end of period (in shares) | shares | 1,822,871 | |
Weighted Average Exercise Price [Roll Forward] | ||
Outstanding at beginning of period (in dollars per share) | $ 18.18 | |
Granted (in dollars per share) | 15.16 | |
Exercised (in dollars per share) | 13.84 | |
Forfeited (in dollars per share) | 22.57 | |
Outstanding at end of period (in dollars per share) | $ 17.53 | |
Number of stock options unvested (in shares) | shares | 606,910 | |
Weighted average exercise price of stock options unvested (in dollars per share) | $ 17.11 | |
Total unrecognized compensation expense | $ | $ 3,293,000 | |
Weighted average vesting period over which compensation expense is expected to be recognized | 1 year 10 months 24 days |
Share-based Payments - Restricted Stock Units (Details) - Restricted Stock [Member] - USD ($) |
9 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Number of Shares [Roll Forward] | ||
Non-vested at beginning of period (in shares) | 201,983 | |
Granted (in shares) | 251,801 | 113,483 |
Vested (in shares) | (94,320) | |
Forfeited (in shares) | (4,980) | |
Non-vested at end of period (in shares) | 354,484 | |
Weighted Average Grant Date Fair Value [Roll Forward] | ||
Non-vested at beginning of period (in dollars per share) | $ 20.06 | |
Granted (in dollars per share) | 16.48 | |
Vested (in dollars per share) | 21.32 | |
Forfeited (in dollars per share) | 17.65 | |
Non-vested at end of period (in dollars per share) | $ 17.22 | |
Estimated fair value of awards granted | $ 4,150,000 | $ 2,112,000 |
Total unrecognized compensation expense | $ 4,589,000 | |
Weighted average vesting period over which compensation expense is expected to be recognized | 1 year 8 months 12 days |
Commitments and Contingencies (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Change in warranty return accrual [Roll Forward] | ||||
Balance at beginning of period | $ 22,499,000 | $ 16,575,000 | $ 18,300,000 | $ 19,475,000 |
Charged to expense | 26,194,000 | 26,637,000 | 80,155,000 | 82,353,000 |
Amounts processed | (31,540,000) | (28,226,000) | (81,302,000) | (86,842,000) |
Balance at end of period | 17,153,000 | $ 14,986,000 | 17,153,000 | $ 14,986,000 |
Contingencies [Abstract] | ||||
Estimated additional import duties | $ 17,000,000 | $ 17,000,000 |
UR+"*.M>#G"BNA@PW+\7H0:_E2M"V4_+G\E<^)F";#5B
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M&! NTPI4N[Z#&_9^/GXPR'F^8T0>,PUU,C%NUK1;4RKW=[:1C-2K#NKFVUC4-!4[?!;?MLZ8J\!%1,-V+8!
M>VL#OFW0>VX^*.N'=2&M/#TV^ID89PV]N8O>-WUK&$W5NL^XL ;^6D$[>WJN
MVQ(^BBH)7'6ZKDIIX>:CK&5;*+)P'7?D'?FRN"!_^>&GX[F%E[JF\V+[@H_#
M"]C$"RY4\9YP>D18Q"*D^7FX^6=IIIK/8:B[\;+=>%G?'Y\:[]H8U5HBNPX&
M]B'0(]_UR/L>Q52/LEL2V9:D3.N.=SCBH\ZPH]!J40:HH%'CTH580A:VRF-38DR!BEE)?JV^8TU1DDVJ3
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MB?97K
&"D6JQM!6
MX$842F5K4B9?3UK43)@,77WY<#U:6D+]#G<):,BP>M6ST2'5U7TQ"8&2LHQ(
MY#BB:#!CJ0Z?(+*B\^<
M*$61*4.F#$#51QS&"M-%,!&)CP3J1=?-# [ PAY*A=W\?DNT?..4UN9]6=>!
MZI(M%0Q\,K+@P0&/NZ1+ ('XMLG:OM,+J."2\ZGH9]U?N00-4Q%8#D%2;# 6
M2NVCMPTJ$1W M*^LCSW;<_J[0D"\58:)47@B'..0A5)(LL(<`XC-TJ#0"
M\:M'5T$Q^E#N3.CCK&;^^/SAE9@*E /%V*EPT[X;I8 6/_4.6..A,>IT7
MR5'"*\HFD,9C2*(D.L*7#GFGGB_]E[SAZVIMK.:;\^U(R.D0 GSC1M&X2#;UQR8\^H28<@NW9+.*KNH8RS** E
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M 81%[C!-+&@T,U2N[)I"3JN65AY(\" P=C(Y?[!0K"VNEL]VJ+ W"X:5KH^#RUP;%*0V39Q2,KF%U
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M-*ZHRSV[;S[SQJ
2M:'2AR!]-SO-#_1E\&!RAO2/7]$G 5SR;DBCT"0UH\ 1>- 06
M6;SHR<#(WU0$4469
M=0S(OSNZI*IR1"SC>\<9#"&=X^&X9W_M<^=W.
MMZ#\<=/3[9'X^JC.&Y>54+2/3^@:A
X?V=8Z>&%[^SKW5ZH&__,B+N]N*O$W0GQSZP\WDC*"Q2?NR&JFP_HQ#-)
M;Q)V*G6?1"OK*]EFMGG9VMAR+0L