Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Sep. 30, 2013 | Oct. 15, 2013 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Trading Symbol | 'BNNY | ' |
Entity Registrant Name | 'ANNIE'S, INC. | ' |
Entity Central Index Key | '0001431897 | ' |
Current Fiscal Year End Date | '--03-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 16,912,015 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ' | ' |
Cash | $11,090 | $4,930 |
Accounts receivable, net of allowance | 19,100 | 20,015 |
Inventory | 17,333 | 15,147 |
Deferred tax assets | 2,558 | 2,558 |
Income tax receivable | ' | 588 |
Prepaid expenses and other current assets | 5,411 | 5,050 |
Total current assets | 55,492 | 48,288 |
Property and equipment, net | 6,192 | 6,138 |
Goodwill | 30,809 | 30,809 |
Intangible assets, net | 1,086 | 1,116 |
Deferred tax assets, long-term | 3,617 | 3,704 |
Other non-current assets | 147 | 157 |
Total assets | 97,343 | 90,212 |
CURRENT LIABILITIES: | ' | ' |
Accounts payable | 7,512 | 4,342 |
Accrued liabilities | 13,652 | 12,021 |
Total current liabilities | 21,164 | 16,363 |
Credit facility | ' | 7,007 |
Other non-current liabilities | 984 | 913 |
Total liabilities | 22,148 | 24,283 |
Commitments and contingencies (Note 6) | ' | ' |
STOCKHOLDERS' EQUITY | ' | ' |
Common stock | 17 | 17 |
Additional paid-in capital | 94,875 | 93,190 |
Accumulated deficit | -19,697 | -27,278 |
Total stockholders' equity | 75,195 | 65,929 |
Total liabilities and stockholders' equity | $97,343 | $90,212 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net sales (including product recall benefit of $751 during the three and six months ended September 30, 2013) | $58,650 | $46,686 | $97,690 | $80,979 |
Cost of sales (including product recall benefit of $490 and $273 during the three and six months ended September 30, 2013, respectively) | 36,749 | 28,786 | 61,027 | 49,272 |
Gross profit | 21,901 | 17,900 | 36,663 | 31,707 |
Operating expenses: | ' | ' | ' | ' |
Selling, general and administrative expenses (including product recall benefit of $32 and expense of $11 during the three and six months ended September 30, 2013, respectively) | 12,538 | 11,539 | 23,865 | 21,750 |
Income from operations | 9,363 | 6,361 | 12,798 | 9,957 |
Interest expense | -104 | -40 | -175 | -80 |
Other income (expense), net | 32 | 36 | 58 | 85 |
Income before provision for income taxes | 9,291 | 6,357 | 12,681 | 9,962 |
Provision for income taxes | 3,739 | 2,572 | 5,100 | 4,046 |
Net income | $5,552 | $3,785 | $7,581 | $5,916 |
Net income per share | ' | ' | ' | ' |
-Basic | $0.33 | $0.22 | $0.45 | $0.35 |
-Diluted | $0.32 | $0.21 | $0.44 | $0.34 |
Weighted average shares of common stock outstanding used in computing net income per share | ' | ' | ' | ' |
-Basic | 16,896,227 | 17,070,327 | 16,882,965 | 17,003,534 |
-Diluted | 17,392,447 | 17,702,516 | 17,376,646 | 17,656,356 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Operations (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
Net sales, product recall benefit | $751 | $751 |
Cost of sales, product recall benefit | 490 | 273 |
Selling, general and administrative, product recall benefit and expense | $32 | $11 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statement of Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit |
In Thousands, except Share data | ||||
Beginning Balance at Mar. 31, 2013 | $65,929 | $17 | $93,190 | ($27,278) |
Beginning Balance (in shares) at Mar. 31, 2013 | ' | 16,849,016 | ' | ' |
Exercise of stock options (in shares) | 60,530 | 60,530 | ' | ' |
Exercise of stock options | 633 | ' | 633 | ' |
Excess tax benefit from stock-based compensation | 643 | ' | 643 | ' |
Stock-based compensation | 409 | ' | 409 | ' |
Net income | 7,581 | ' | ' | 7,581 |
Ending Balance at Sep. 30, 2013 | $75,195 | $17 | $94,875 | ($19,697) |
Ending Balance (in shares) at Sep. 30, 2013 | ' | 16,909,546 | ' | ' |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income | $7,581 | $5,916 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 637 | 463 |
Stock-based compensation | 409 | 447 |
Provision for doubtful accounts | 21 | ' |
Inventory reserves | 430 | -80 |
Excess tax benefit from stock-based compensation | -643 | -5,266 |
Accretion of imputed interest on purchase of intangible asset | 72 | 71 |
Change in fair value of convertible preferred stock warrant liability | ' | 13 |
Amortization of deferred financing costs | 6 | 9 |
Deferred taxes | 87 | 217 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable, net | 894 | 162 |
Inventory | -2,616 | -2,119 |
Income tax receivable | 588 | -149 |
Prepaid expenses, other current and non-current assets | -174 | 4,092 |
Accounts payable | 3,158 | 1,359 |
Related-party payable | ' | -1,305 |
Accrued expenses and other non-current liabilities | 2,273 | 5,426 |
Net cash provided by operating activities | 12,723 | 9,256 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Purchase of property and equipment | -649 | -1,009 |
Net cash used in investing activities | -649 | -1,009 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Proceeds from credit facility | 7,720 | 2,663 |
Payments to credit facility | -14,727 | -15,459 |
Proceeds from common shares issued in initial public offering, net of issuance costs | ' | 11,146 |
Excess tax benefit from stock-based compensation | 643 | 5,266 |
Proceeds from exercises of stock options | 450 | 2,204 |
Net cash provided by (used in) financing activities | -5,914 | 5,820 |
NET INCREASE IN CASH | 6,160 | 14,067 |
CASH-Beginning of period | 4,930 | 562 |
CASH-End of period | 11,090 | 14,629 |
NONCASH INVESTING AND FINANCING ACTIVITIES: | ' | ' |
Purchase of property and equipment funded through accounts payable | 12 | 13 |
Conversion of convertible preferred stock into common stock | ' | $81,373 |
Description_of_Business
Description of Business | 6 Months Ended | |
Sep. 30, 2013 | ||
Description of Business | ' | |
1 | Description of Business | |
Annie’s, Inc. (the “Company”), a Delaware corporation incorporated on April 28, 2004, is a natural and organic food company. The Company offers over 135 products in the following three product categories: meals; snacks; and dressings, condiments and other. The Company’s products are sold throughout the U.S. and Canada via a multi-channel distribution network that serves the mainstream grocery, mass merchandiser and natural retailer channels. The Company’s headquarters are located in Berkeley, California. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 6 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||||
2 | Summary of Significant Accounting Policies | ||||||||||||
Basis of Presentation and Consolidation | |||||||||||||
The accompanying interim condensed consolidated balance sheets as of September 30, 2013, the interim condensed consolidated statement of stockholders’ equity for the six months ended September 30, 2013, and the interim condensed consolidated statements of operations for the three and six months ended September 30, 2013 and 2012, and cash flows for the six months ended September 30, 2013 and 2012 are unaudited. These interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the applicable rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. These interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in Company’s Annual Report on Form 10-K filed with the SEC on June 14, 2013. The March 31, 2013 condensed consolidated balance sheet included herein was derived from the audited financial statements as of that date, but does not include all disclosures including notes required by U.S. GAAP for complete financial statements. | |||||||||||||
The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, reflect all adjustments of a normal recurring nature considered necessary to state fairly our financial position as of September 30, 2013 and results of our operations for the three and six months ended September 30, 2013 and 2012, and cash flows for the six months ended September 30, 2013 and 2012. The interim results for the six months ended September 30, 2013 are not necessarily indicative of the results that may be expected for the year ending March 31, 2014. | |||||||||||||
The unaudited interim condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, Annie’s Homegrown, Inc., Annie’s Enterprises, Inc. and Napa Valley Kitchen, Inc. All significant intercompany balances and transactions have been eliminated in consolidation. | |||||||||||||
Initial Public Offering (IPO) | |||||||||||||
On April 2, 2012, the Company closed its IPO, in which it sold 950,000 shares at an offering price of $19.00 per share and raised $11.1 million in net proceeds after deducting underwriting discounts and commissions of $1.3 million and other offering expenses of $5.6 million. In addition, certain of the Company’s stockholders, including funds affiliated with Solera Capital, LLC, sold 4.8 million shares at the $19.00 offering price in the IPO. The Company sometimes refers to Solera Capital, LLC and its affiliates as Solera in this Quarterly Report on Form 10-Q. | |||||||||||||
Immediately prior to the closing of the IPO, the outstanding shares of convertible preferred stock were automatically converted into 15,221,571 shares of common stock, the Company’s outstanding convertible preferred stock warrant was automatically converted into a common stock warrant to purchase a total of 80,560 shares of common stock and the related convertible preferred stock warrant liability was reclassified to additional paid-in capital. | |||||||||||||
Pursuant to the Company’s Amended and Restated Certificate of Incorporation or Charter and its Amended and Restated Bylaws, which became effective upon consummation of the IPO, the Company has authorized 35,000,000 shares of capital stock, 30,000,000 shares, par value $0.001 per share, of which are common stock and 5,000,000 shares, par value $0.001 per share, of which are preferred stock. As of September 30, 2013, 16,909,546 shares of common stock were issued and outstanding and no shares of preferred stock were issued and outstanding. | |||||||||||||
Secondary Public Offering | |||||||||||||
On August 6, 2012, the Company closed a secondary public offering, in which certain stockholders, including Solera, sold 3,649,976 shares of common stock at an offering price of $39.25 per share. The Company did not receive any proceeds from the sale of shares by the selling stockholders. The offering expenses incurred by the Company were $0.7 million, including legal, accounting and printing costs and various other fees associated with the registration and sale of common stock sold in the secondary public offering. | |||||||||||||
Shelf Registration Statement | |||||||||||||
On July 16, 2013, the Company filed a registration statement on Form S-3 to register 2,537,096 shares of common stock of the Company held by Solera. In connection with preparations for filing of this registration statement, the Company incurred $86,000 for legal, accounting and other out-of-pocket expenses on Solera’s behalf in the six months ended September 30, 2013. | |||||||||||||
Use of Estimates | |||||||||||||
The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of sales and expenses during the reported periods. Actual results could differ from those estimates. | |||||||||||||
Concentration Risk | |||||||||||||
Customers with 10% or more of the Company’s net sales consist of the following: | |||||||||||||
Net Sales | |||||||||||||
Customer A | Customer B | Customer C | |||||||||||
Three Months Ended September 30, | |||||||||||||
2013 | 19 | % | 16 | % | 16 | % | |||||||
2012 | 27 | % | 13 | % | 14 | % | |||||||
Six Months Ended September 30, | |||||||||||||
2013 | 21 | % | 13 | % | 14 | % | |||||||
2012 | 27 | % | 11 | % | 12 | % | |||||||
As of September 30, 2013, three customers represented 31%, 19% and 10%, respectively, of accounts receivable. The same three customers represented 26%, 36% and 10%, respectively, of accounts receivable as of March 31, 2013. | |||||||||||||
Fair Value of Financial Instruments | |||||||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The accounting guidance establishes a three-tiered hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: | |||||||||||||
Level 1—Quoted prices in active markets for identical assets or liabilities. | |||||||||||||
Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |||||||||||||
Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | |||||||||||||
The categorization of a financial instrument within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. | |||||||||||||
The carrying amounts of the Company’s financial instruments, including accounts receivable, accounts payable and accrued liabilities, approximate fair value due to their relatively short maturities. Upon consummation of the IPO on April 2, 2012, prior to the automatic conversion of the convertible preferred stock warrant into a common stock warrant, it was remeasured and the change in fair value was recorded as a non-cash charge in other income (expense), net and the related liability was reclassified to additional paid-in capital (Note 7). | |||||||||||||
Property and Equipment | |||||||||||||
The Company capitalizes certain internal and external costs related to the development and enhancement of the Company’s internal-use software. Capitalized internal-use software development costs are included in property and equipment on the accompanying condensed consolidated balance sheets. As of September 30, 2013, the Company had $2.2 million capitalized software development costs, net of accumulated amortization, including $0.6 million in construction in progress. As of March 31, 2013, the Company had $2.1 million capitalized software development costs, net of accumulated amortization, including $0.4 million in construction in progress. | |||||||||||||
Shipping and Handling Costs | |||||||||||||
Shipping and handling costs are included in selling, general and administrative expenses in the condensed consolidated statements of operations. Shipping and handling costs primarily consist of costs associated with moving finished products to customers, including costs associated with the Company’s distribution center, route delivery costs and the cost of shipping products to customers through third-party carriers. Shipping and handling costs recorded as a component of selling, general and administrative expenses were $1.8 million and $1.5 million for the three months ended September 30, 2013 and 2012, respectively and were $3.3 million and $2.8 million for the six months ended September 30, 2013 and 2012, respectively. | |||||||||||||
Research and Development Costs | |||||||||||||
Research and development costs consist of the costs incurred to develop new products. These costs include consumer research, prototype development, materials and resources to conduct trial production runs, package development and employee-related costs for personnel responsible for product innovation. Research and development costs recorded as a component of selling, general and administrative expenses were $0.6 million and $0.7 million for the three months ended September 30, 2013 and 2012, respectively and were $1.2 million and $1.5 million for the six months ended September 30, 2013 and 2012, respectively. | |||||||||||||
Advertising Costs | |||||||||||||
Advertising costs include the costs of producing advertisements and the costs of communicating advertisements. The costs of producing advertisements are expensed as incurred and the costs of communicating advertising are expensed over the period of communication. Total advertising costs for the three months ended September 30, 2013 and 2012 included in selling, general and administrative expenses were $0.4 million and $0.1 million, respectively, and were $0.8 million and $0.4 million for the six months ended September 30, 2013 and 2012, respectively. | |||||||||||||
Product Recall | |||||||||||||
The Company establishes reserves for product recalls on a product-specific basis when circumstances giving rise to the recall become known. The Company, when establishing reserves for a product recall, considers cost estimates for any fees and incentives to customers for their effort to return the product, freight and destruction charges for returned products, warehouse and inspection fees, repackaging materials, point-of-sale materials and other costs including costs incurred by contract manufacturers. Additionally, the Company estimates product returns from consumers and customers across distribution channels, utilizing third-party data and other assumptions. These factors are updated and reevaluated each period and the related reserves are adjusted when these factors indicate that the recall reserves are either insufficient to cover or exceed the estimated product recall expenses. | |||||||||||||
Significant changes in the assumptions used to develop estimates for product recall reserves could affect key financial information, including accounts receivable, inventory, accrued liabilities, net sales, gross profit, operating expenses and net income. In addition, estimating product recall reserves requires a high degree of judgment in areas such as estimating consumer returns, shelf and in-stock inventory at retailers across distribution channels, fees and incentives to be earned by customers for their effort to return the products, future freight rates and consumers’ claims. | |||||||||||||
Net Income Per Share of Common Stock | |||||||||||||
Basic net income per share of common stock is calculated by dividing the net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding for the period. Diluted net income per share of common stock is computed by giving effect to all potentially dilutive securities outstanding during the period. The Company utilizes the treasury stock method to calculate potential common shares that underlie its stock options to purchase common stock and restricted stock units. Performance share units were excluded from potential common shares since no shares were issuable as of September 30, 2013 and March 31, 2013. Certain stock options to purchase our common stock and restricted stock units had an anti-dilutive effect on the earnings per share for the periods presented, and were also excluded. |
Balance_Sheet_Components
Balance Sheet Components | 6 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Balance Sheet Components | ' | ||||||||
3 | Balance Sheet Components | ||||||||
Inventory | |||||||||
Inventory is comprised of the following (in thousands): | |||||||||
September 30, | March 31, | ||||||||
2013 | 2013 | ||||||||
Raw materials | $ | 2,063 | $ | 1,391 | |||||
Work in process | 1,020 | 2,142 | |||||||
Finished goods | 14,250 | 11,614 | |||||||
Inventory | $ | 17,333 | $ | 15,147 | |||||
Property and Equipment, Net | |||||||||
Property and equipment, net are comprised of the following (in thousands): | |||||||||
September 30, | March 31, | ||||||||
2013 | 2013 | ||||||||
Equipment and automotive | $ | 3,835 | $ | 2,959 | |||||
Software | 2,410 | 2,410 | |||||||
Leasehold improvements | 1,344 | 1,195 | |||||||
Plates and dies | 318 | 244 | |||||||
Total property and equipment | 7,907 | 6,808 | |||||||
Less: Accumulated depreciation and amortization | (2,364 | ) | (1,760 | ) | |||||
Construction in progress | 649 | 1,090 | |||||||
Property and equipment, net | $ | 6,192 | $ | 6,138 | |||||
The Company incurred depreciation expense of $313,000 and $607,000 for the three and six months ended September 30, 2013, respectively. The depreciation expense for the same periods in the prior year was $248,000 and $433,000, respectively. | |||||||||
Intangible Assets, Net | |||||||||
Intangible assets, net are comprised of the following (in thousands): | |||||||||
September 30, | March 31, | ||||||||
2013 | 2013 | ||||||||
Product formulas | $ | 1,023 | $ | 1,023 | |||||
Other intangible assets | 189 | 189 | |||||||
Total intangible assets | 1,212 | 1,212 | |||||||
Less: accumulated amortization | (126 | ) | (96 | ) | |||||
Intangible assets, net | $ | 1,086 | $ | 1,116 | |||||
The Company incurred amortization expense of $15,000 and $30,000 on its intangible assets during the three and six months ended September 30, 2013. The amortization expense for the same periods over the prior year was $15,000 and $30,000, respectively. | |||||||||
The estimated future amortization expense relating to intangible assets for the remainder of fiscal 2014, for each of the next five years through fiscal 2019 and thereafter is $30,000, $60,000 and $756,000, respectively. | |||||||||
Prepaid Expenses and Other Current Assets | |||||||||
Prepaid expenses and other current assets as of September 30, 2013 and March 31, 2013 include receivables from contract manufacturers and suppliers of $3.0 million and $3.9 million, respectively. | |||||||||
Accrued Liabilities | |||||||||
The following table shows the components of accrued liabilities (in thousands): | |||||||||
September 30, | March 31, | ||||||||
2013 | 2013 | ||||||||
Payroll and employee-related expenses | $ | 2,310 | $ | 3,779 | |||||
Accrued trade expenses | 5,060 | 2,299 | |||||||
Inventory received not invoiced | 4,818 | 4,038 | |||||||
Deferred rent | 253 | 260 | |||||||
Brokerage commissions | 231 | 407 | |||||||
Other accrued liabilities | 980 | 1,238 | |||||||
Total accrued liabilities | $ | 13,652 | $ | 12,021 | |||||
Credit_Facility
Credit Facility | 6 Months Ended | |
Sep. 30, 2013 | ||
Credit Facility | ' | |
4 | Credit Facility | |
In 2005, the Company entered into a bank line of credit agreement (the “Credit Agreement”) with Bank of America, N.A., which provided for revolving loans up to $11.0 million. In March 2008, the Company amended the Credit Agreement with Bank of America to establish an inter-creditor agreement with another lender (Note 7). In August 2010, the Company amended the Credit Agreement to decrease the maximum borrowing limit on revolving loans to $10.0 million and extended the expiration date to August 20, 2012. In December 2011, the Company entered into a second amended and restated credit facility with Bank of America that, among other things, provided for an increase in its line of credit to $20.0 million and an extension of the term through August 2014. In March 2013, the Company entered into another amendment to its credit facility. This amendment provides for, among other things, an increase in the line of credit to $40.0 million and extension of the term through August 2016. The Credit Agreement is collateralized by substantially all of the Company’s assets. | ||
The Company may select from three interest rate options for borrowings under the credit facility: (i) LIBOR (as defined in the credit facility) plus 1.25%, (ii) IBOR (as defined in the credit facility) plus 1.25% or (iii) Prime Rate (as defined in the credit facility). Weighted average interest was 1.4% and 1.5% for the three and six months ended September 30, 2013, respectively. Weighted average interest was 1.5% for each of the three and six months ended September 30, 2012. The Company is required to pay a commitment fee on the unused credit facility commitments, if the outstanding balance is less than half the commitment at an annual rate ranging from 0.25% to 0.40% depending on the utilization rate. As of September 30, 2013 and March 31, 2013, there was $40.0 million and $33.0 million, respectively, of availability for borrowings under the Credit Agreement. Interest is payable monthly. | ||
The credit facility contains restrictions on, among other things, the Company’s ability to incur additional indebtedness, pay dividends or make other distributions and make investments and loans. The credit facility also limits the Company’s ability to make capital expenditures in excess of $15.0 million. The credit facility requires that the Company maintain a Funded Debt (as defined in the credit facility) to Adjusted EBITDA (as defined in the credit facility) ratio of not more than 2.75 to 1.0 and a minimum Net Worth (as defined in the credit facility) equal to at least $50.0 million, plus 30% of earnings after taxes earned each quarter (if positive), beginning with the June 2013 quarterly earnings. The Credit Agreement requires the Company to submit interim and annual financial statements by specified dates after each reporting period. The Company was in compliance with the covenants as of September 30, 2013 and March 31, 2013. |
Related_Party_Transactions
Related Party Transactions | 6 Months Ended | |
Sep. 30, 2013 | ||
Related Party Transactions | ' | |
5 | Related Party Transactions | |
Agreements with Solera Capital, LLC | ||
The Company had an advisory services agreement with Solera, which it terminated upon the consummation of the IPO and as such the Company paid Solera a one-time termination fee of $1.3 million in April 2012. | ||
Additionally, the Company is a party to an amended and restated registration rights agreement dated as of November 14, 2005, or Registration Rights Agreement, relating to its shares of common stock held by certain affiliates of Solera and certain other stockholders. On August 6, 2012, the Company closed a secondary public offering, in which certain stockholders, including Solera, sold 3,649,976 shares of common stock at an offering price of $39.25 per share. The Company did not receive any proceeds from the sale of shares by the selling stockholders. The offering expenses incurred by the Company were $0.7 million, including legal, accounting and printing costs and various other fees associated with the registration and sale of common stock sold in the secondary public offering. | ||
In connection with Solera’s exercise of its rights under the Registration Rights Agreement, the Company filed a registration statement on Form S-3 on July 16, 2013 to register Solera’s remaining shares. In connection with preparations for filing of this registration statement, the Company incurred $86,000 for legal and other out-of-pocket expenses on Solera’s behalf during the six months ended September 30, 2013. |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended | ||||
Sep. 30, 2013 | |||||
Commitments and Contingencies | ' | ||||
6 | Commitments and Contingencies | ||||
Lease Commitments | |||||
The Company leases its offices and other equipment under non-cancelable operating leases that expire through fiscal year 2019. Rent expense for non-cancelable operating leases with scheduled rent increases is recognized on a straight-line basis over the lease term. Rent expense for the three and six months ended September 30, 2013 was $156,000 and $306,000, respectively. Rent expense for the three and six months ended September 30, 2012 was $120,000 and $239,000, respectively. | |||||
Future minimum lease payments under the non-cancelable operating leases as of September 30, 2013 are as follows (in thousands): | |||||
Lease Payments | |||||
Six Months Ending March 31, 2014 | $ | 330 | |||
Fiscal Year Ending March 31: | |||||
2015 | 675 | ||||
2016 | 673 | ||||
2017 | 669 | ||||
2018 | 662 | ||||
2019 | 586 | ||||
Total future minimum lease payments | $ | 3,595 | |||
Purchase Commitments | |||||
The Company has material non-cancelable purchase commitments, directly or through contract manufacturers, to purchase ingredients to be used in the future to manufacture its products. As of September 30, 2013, the Company’s purchase commitments totaled $14.5 million, which will substantially be incurred within a year. | |||||
In September 2011, the Company entered into an agreement with its contract warehousing company that includes minimum overhead fees of $200,000 annually beginning April 1, 2012 through June 30, 2015. As of September 30, 2013, the remaining obligation under the agreement for overhead fees was $350,000. | |||||
In November 2011, the Company entered into an agreement with one of its contract manufacturers for the purchase of product formulas for a purchase price of $2.0 million. The agreement requires annual payments of at least $150,000 in each of the first six years of the agreement with the balance of the $2.0 million payment due at the end of the seven-year term in November 2018. As of September 30, 2013, the Company’s remaining obligation for product formulas was $1.85 million. | |||||
Indemnifications | |||||
In the normal course of business, the Company enters into contracts that contain a variety of representations and provide for general indemnifications. The Company’s exposure under these agreements is unknown because it involves claims that may be made against the Company in the future but have not yet been made. The Company has not paid any significant claims or been required to defend any action related to its indemnification obligations, and, accordingly, the Company believes that the estimated fair value of these indemnification obligations is minimal and has not accrued any amounts for these obligations. | |||||
Legal Matters | |||||
On September 4, 2013, a private organization called the Center for Environmental Health (“CEH”) issued a 60-day notice of intent to sue (“Notice”) the Company and its subsidiary, Annie’s Homegrown, Inc., under California Health & Safety Code §§ 25249.5 et seq. (commonly referred to as “Proposition 65”). In the Notice, CEH claims that warnings are required in California for alleged exposures to lead and lead compounds from cookies, including Annie’s Gluten-Free Ginger Snap Bunny Cookies. Under Proposition 65, any private enforcer such as CEH may file a lawsuit if it first issues a valid 60-day notice, and if the California Attorney General or other specified California public enforcers do not file suit within 60 days after service. A Proposition 65 plaintiff may seek injunctive relief as well as civil penalties, which may be assessed up to a maximum of $2,500 per violation per day, and a private plaintiff does not need to show that anyone has been harmed by the alleged exposures. A prevailing plaintiff may also seek its attorneys’ fees and costs under other California laws. | |||||
Although CEH has not yet filed a lawsuit naming the Company or Annie’s Homegrown, Inc., within the past year CEH has filed several lawsuits against other manufacturers and retailers regarding various types of products containing molasses and/or ginger, such as licorice candy, cookies, and baking mix products. In CEH’s cases involving cookies and baking mix products, CEH’s operative complaints have put at issue only those cookies or baking mix products that contain ginger and/or molasses as ingredients. The Company cannot at this time reasonably estimate a range of exposure, if any, of the potential liability should a suit be brought in connection with the Notice. | |||||
Additionally, from time to time, the Company is subject to claims, assessments or other legal proceedings in the ordinary course of business, including product liability claims, employee claims, and other general liability claims. While it is not feasible to predict or determine the ultimate outcome of these matters, the Company believes that none of these legal proceedings, individually or in the aggregate, will have a material adverse effect on its financial position. |
Convertible_Preferred_Stock_Wa
Convertible Preferred Stock Warrant | 6 Months Ended | |
Sep. 30, 2013 | ||
Convertible Preferred Stock Warrant | ' | |
7 | Convertible Preferred Stock Warrant | |
In March 2008, in connection with a prior term loan, the Company had issued a warrant to Hercules Technology II, L.P. (“Hercules”) for the purchase of 80,560 shares of Series A 2005 Convertible Preferred Stock at an exercise price of $8.07 per share. The warrant was immediately exercisable on the date of issuance and was scheduled to expire at the earlier of five years from a qualifying IPO of the Company’s common stock or April 1, 2018. Upon the consummation of the Company’s IPO on April 2, 2012, the warrant became a warrant to purchase 80,560 shares of the Company’s common stock. As such, on April 2, 2012, the Company measured the fair value of the outstanding convertible preferred stock warrant using an option pricing method and recorded a non-cash charge of $13,000 related to the increase in the fair value of the convertible preferred stock warrant in other income (expense), net and the related convertible preferred stock warrant liability was reclassified to additional paid-in capital. On April 12, 2012, Hercules exercised the warrant to purchase 80,560 shares of Company’s common stock by surrendering 17,367 shares to pay for the exercise. As a result, the Company issued Hercules 63,193 shares of common stock. |
Preferred_Stock
Preferred Stock | 6 Months Ended | |
Sep. 30, 2013 | ||
Preferred Stock | ' | |
8 | Preferred Stock | |
As of each of September 30, 2013 and March 31, 2013, the Company’s Charter authorized 5,000,000 shares of preferred stock, $0.001 par value per share. As of September 30, 2013, no certificate of designations defining the rights and preferences of the preferred stock had been filed and no shares of preferred stock were issued and outstanding. |
Common_Stock
Common Stock | 6 Months Ended | |
Sep. 30, 2013 | ||
Common Stock | ' | |
9 | Common Stock | |
As of each of September 30, 2013 and March 31, 2013, the Company’s Charter authorized 30,000,000 shares of common stock, $0.001 par value per share, respectively, of which 16,909,546 and 16,849,016 shares were issued and outstanding, respectively. Each share of the common stock has the right to one vote. The holders of common stock are also entitled to receive dividends whenever funds are legally available therefor and if, as and when declared by the Company’s Board of Directors. No dividends were declared or paid during the six months ended September 30, 2013 and 2012, respectively. |
StockBased_Compensation
Stock-Based Compensation | 6 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Stock-Based Compensation | ' | ||||||||
10 | Stock-Based Compensation | ||||||||
The Company has adopted performance incentive plans (the 2004 Stock Option Plan and the Omnibus Incentive Plan, which together are the “Plans”) under which nonqualified stock options, restricted stock units and performance share units are granted to eligible employees, officers and directors. The Company has also granted non-plan performance based option awards to certain key management. Options granted under Plans to date generally vest over a two- to five-year period from the date of grant. Vested options can be exercised and generally expire ten years after the grant date. The restricted stock units granted to employees vest 50% on the second anniversary of the grant date, and the remaining 50% on the third anniversary of the grant date, provided continuance of the employment with the Company. The performance share units granted to employees vest based on achievement of required cumulative compounded adjusted diluted earnings per share growth during the stipulated three-year period applicable to a grant. Stock-based compensation expense included in selling, general and administrative expenses was $116,000 and $231,000 for the three months ended September 30, 2013 and 2012, respectively, and was $409,000 and $447,000 for the six months ended September 30, 2013 and 2012, respectively. | |||||||||
The following table summarizes the activity of stock options during the six months ended September 30, 2013: | |||||||||
Number of Shares | Weighted-Average | ||||||||
Exercise Price | |||||||||
Balance, March 31, 2013 | 1,203,990 | $ | 13.26 | ||||||
Granted | 42,276 | 38.62 | |||||||
Forfeited | (77,746 | ) | 18.31 | ||||||
Exercised | (60,530 | ) | 10.46 | ||||||
Balance, September 30, 2013 | 1,107,990 | $ | 13.24 | ||||||
The weighted average grant date fair value of employee stock options granted during the six months ended September 30, 2013 was $14.03 per share. The total intrinsic value of stock options exercised during the six months ended September 30, 2013 was $1.9 million. The intrinsic value is calculated based on the difference between the exercise price and the fair value of the common stock at time of exercise. | |||||||||
The following table summarizes the activity of unvested restricted stock units and performance share units during the six months ended September 30, 2013: | |||||||||
Shares-Based Awards | Shares | Weighted-Average | |||||||
Grant Date | |||||||||
Fair Value | |||||||||
Unvested at March 31, 2013 | 71,165 | $ | 21.73 | ||||||
Granted | 47,366 | 39.91 | |||||||
Vested | (4,692 | ) | 45.27 | ||||||
Forfeited | (13,442 | ) | 24.16 | ||||||
Unvested at September 30, 2013 | 100,397 | $ | 28.69 | ||||||
As of September 30, 2013, there were 73,333 unvested performance share units outstanding, net of actual forfeitures. As of September 30, 2013, the number of shares estimated to be issued at the end of the performance period(s) is a total of 36,672 shares. The maximum number of total shares that could be issued at the end of performance period(s) is 110,005 shares. | |||||||||
As of September 30, 2013, there was $3.9 million of total unrecognized compensation cost related to unvested share-based compensation arrangements which is expected to be recognized over a weighted average period of 3.1 years. |
Income_Taxes
Income Taxes | 6 Months Ended | |
Sep. 30, 2013 | ||
Income Taxes | ' | |
11 | Income Taxes | |
The Company’s effective tax rate decreased to 40.2% for the three months ended September 30, 2013, compared to 40.5% for the three months ended September 30, 2012. The effective tax rate was 40.2% for the six months ended September 30, 2013, compared to 40.6% for the six months ended September 30, 2012. The effective tax rate is based on a projection of the Company’s annual fiscal year results. The effective tax rate for the three and six months ended September 30, 2013 was lower than the effective tax rate for the three and six months ended September 30, 2012 due to the impact of permanent items and federal and state income tax credits. |
Net_Income_per_Share_of_Common
Net Income per Share of Common Stock attributable to Common Stockholders | 6 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Net Income per Share of Common Stock attributable to Common Stockholders | ' | ||||||||||||||||
12 | Net Income per Share of Common Stock attributable to Common Stockholders | ||||||||||||||||
The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net income per share of common stock for the periods presented, because including them would have been anti-dilutive: | |||||||||||||||||
Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Options to purchase common stock | 85,046 | 2,562 | 133,515 | 2,562 | |||||||||||||
Restricted stock units | 5,434 | 6,256 | 12,864 | 6,256 | |||||||||||||
Total | 90,480 | 8,818 | 146,379 | 8,818 | |||||||||||||
A reconciliation of the basic and diluted net income per share attributable to common stockholders is as follows (in thousands except share and per share amounts): | |||||||||||||||||
Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net income per share: | |||||||||||||||||
Net income | $ | 5,552 | $ | 3,785 | $ | 7,581 | $ | 5,916 | |||||||||
Weighted average shares of common stock outstanding used in computing net income—basic | 16,896,227 | 17,070,327 | 16,882,965 | 17,003,534 | |||||||||||||
Potential dilutive options | 482,058 | 625,684 | 480,517 | 646,468 | |||||||||||||
Potential dilutive restricted stock units | 14,162 | 6,505 | 13,164 | 6,354 | |||||||||||||
Weighted average shares of common stock outstanding used in computing net income—diluted | 17,392,447 | 17,702,516 | 17,376,646 | 17,656,356 | |||||||||||||
Net income per share | |||||||||||||||||
—Basic | $ | 0.33 | $ | 0.22 | $ | 0.45 | $ | 0.35 | |||||||||
—Diluted | $ | 0.32 | $ | 0.21 | $ | 0.44 | $ | 0.34 | |||||||||
Geographic_Areas_and_Product_S
Geographic Areas and Product Sales | 6 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Geographic Areas and Product Sales | ' | ||||||||||||||||
13 | Geographic Areas and Product Sales | ||||||||||||||||
The Company’s net sales by geographic area, based on the location to which the product was shipped, are summarized as follows (in thousands): | |||||||||||||||||
Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
United States | $ | 56,226 | $ | 44,423 | $ | 93,671 | $ | 77,571 | |||||||||
Canada | 2,424 | 2,263 | 4,019 | 3,408 | |||||||||||||
$ | 58,650 | $ | 46,686 | $ | 97,690 | $ | 80,979 | ||||||||||
The following table sets forth net sales by product category (in thousands): | |||||||||||||||||
Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Meals | $ | 29,739 | $ | 21,869 | $ | 46,293 | $ | 36,536 | |||||||||
Snacks | 22,057 | 19,146 | 37,878 | 32,609 | |||||||||||||
Dressings, condiments and other | 6,854 | 5,671 | 13,519 | 11,834 | |||||||||||||
$ | 58,650 | $ | 46,686 | $ | 97,690 | $ | 80,979 | ||||||||||
All of the Company’s long-lived assets are located in the U.S. |
Product_Recall
Product Recall | 6 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Product Recall | ' | ||||||||
14 | Product Recall | ||||||||
In January 2013, the Company announced a voluntary product recall of certified organic and made with organic pizza products due to the possible presence of fragments of flexible metal mesh from a faulty screen at a third-party flour mill. The Company initiated the recall of all lots of pizza product manufactured with this supplier’s flour from its first purchase from the supplier in May 2012. The Company recorded certain items associated with the recall in its financial results for the three and six months ended September 30, 2013. | |||||||||
The Company recorded the estimated customer and consumer returns as a reduction of net sales, related costs associated with product returns, destruction charges, inventory write-off and costs incurred by contract manufacturers as cost of sales, and administrative costs associated with the recall such as legal expenses as selling, general and administrative expenses. The Company recorded $1.2 million for insurance recoveries and a $0.1 million in reduction of net sales reserve in connection with the product recall in each of the three and six months ended September 30, 2013, respectively. The impact of the recall-related charges and related insurance recoveries in the three and six months ended September 30, 2013 is as follows (in thousands except per share amount): | |||||||||
Three Months Ended | Six Months Ended | ||||||||
September 30, 2013 | September 30, 2013 | ||||||||
Benefit to net sales | $ | 751 | $ | 751 | |||||
Benefit to cost of sales | 490 | 273 | |||||||
Benefit to/(incremental) selling, general and administrative expenses | 32 | (11 | ) | ||||||
Total benefit to income before income taxes | $ | 1,273 | $ | 1,013 | |||||
Benefit to net income | $ | 761 | $ | 606 | |||||
Benefit to net income per diluted share | $ | 0.04 | $ | 0.03 | |||||
The Company does not expect any significant further additional costs associated with the voluntary product recall. The Company expects to receive additional recoveries from the involved insurance carriers in future quarters. |
Subsequent_Events
Subsequent Events | 6 Months Ended | |
Sep. 30, 2013 | ||
Subsequent Events | ' | |
15 | Subsequent Events | |
On November 5, 2013, the Company entered into an agreement of purchase and sale with Safeway Inc. and Safeway Australia Holdings, Inc. (together the “Selling Parties”) to acquire a snack manufacturing plant in Joplin, Missouri (the “Joplin Plant”) for $6.0 million of cash, plus the value of inventory and supplies at closing (calculated based on the Selling Parties’ costs and currently estimated at approximately $4.0 million). The Company expects to fund the acquisition with cash from operations and, if necessary, by drawing under its revolving credit facility and to close the acquisition in the first quarter of fiscal 2015. The Joplin Plant has been the primary manufacturer of the Company’s cookie and cracker products for more than ten years. Company products produced in the Joplin Plant currently account for over 50% of its total snacks net sales and represent the majority of the Joplin Plant’s total production volume. In connection with the closing of the acquisition, the Company expects to enter into a three-year supply agreement with an affiliate of Safeway Inc., pursuant to which the Company will manufacture products for the affiliate. | ||
On November 5, 2013, the Company entered into an amendment to its credit facility. This amendment provides for, among other things, consent for the Company to create a limited liability company (“LLC”) and guarantee performance of the LLC in the event and to the extent the Company assigns to the LLC any of its rights or obligations under the Purchase Agreement and for the issuance of letters of credit. Additionally, the amendment revises certain covenants and representations and warranties of the Company under the Credit Agreement. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 6 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Basis of Presentation and Consolidation | ' | ||||||||||||
Basis of Presentation and Consolidation | |||||||||||||
The accompanying interim condensed consolidated balance sheets as of September 30, 2013, the interim condensed consolidated statement of stockholders’ equity for the six months ended September 30, 2013, and the interim condensed consolidated statements of operations for the three and six months ended September 30, 2013 and 2012, and cash flows for the six months ended September 30, 2013 and 2012 are unaudited. These interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the applicable rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. These interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in Company’s Annual Report on Form 10-K filed with the SEC on June 14, 2013. The March 31, 2013 condensed consolidated balance sheet included herein was derived from the audited financial statements as of that date, but does not include all disclosures including notes required by U.S. GAAP for complete financial statements. | |||||||||||||
The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, reflect all adjustments of a normal recurring nature considered necessary to state fairly our financial position as of September 30, 2013 and results of our operations for the three and six months ended September 30, 2013 and 2012, and cash flows for the six months ended September 30, 2013 and 2012. The interim results for the six months ended September 30, 2013 are not necessarily indicative of the results that may be expected for the year ending March 31, 2014. | |||||||||||||
The unaudited interim condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, Annie’s Homegrown, Inc., Annie’s Enterprises, Inc. and Napa Valley Kitchen, Inc. All significant intercompany balances and transactions have been eliminated in consolidation. | |||||||||||||
Initial Public Offering (IPO) | ' | ||||||||||||
Initial Public Offering (IPO) | |||||||||||||
On April 2, 2012, the Company closed its IPO, in which it sold 950,000 shares at an offering price of $19.00 per share and raised $11.1 million in net proceeds after deducting underwriting discounts and commissions of $1.3 million and other offering expenses of $5.6 million. In addition, certain of the Company’s stockholders, including funds affiliated with Solera Capital, LLC, sold 4.8 million shares at the $19.00 offering price in the IPO. The Company sometimes refers to Solera Capital, LLC and its affiliates as Solera in this Quarterly Report on Form 10-Q. | |||||||||||||
Immediately prior to the closing of the IPO, the outstanding shares of convertible preferred stock were automatically converted into 15,221,571 shares of common stock, the Company’s outstanding convertible preferred stock warrant was automatically converted into a common stock warrant to purchase a total of 80,560 shares of common stock and the related convertible preferred stock warrant liability was reclassified to additional paid-in capital. | |||||||||||||
Pursuant to the Company’s Amended and Restated Certificate of Incorporation or Charter and its Amended and Restated Bylaws, which became effective upon consummation of the IPO, the Company has authorized 35,000,000 shares of capital stock, 30,000,000 shares, par value $0.001 per share, of which are common stock and 5,000,000 shares, par value $0.001 per share, of which are preferred stock. As of September 30, 2013, 16,909,546 shares of common stock were issued and outstanding and no shares of preferred stock were issued and outstanding. | |||||||||||||
Secondary Public Offering | ' | ||||||||||||
Secondary Public Offering | |||||||||||||
On August 6, 2012, the Company closed a secondary public offering, in which certain stockholders, including Solera, sold 3,649,976 shares of common stock at an offering price of $39.25 per share. The Company did not receive any proceeds from the sale of shares by the selling stockholders. The offering expenses incurred by the Company were $0.7 million, including legal, accounting and printing costs and various other fees associated with the registration and sale of common stock sold in the secondary public offering. | |||||||||||||
Shelf Registration Statement | ' | ||||||||||||
Shelf Registration Statement | |||||||||||||
On July 16, 2013, the Company filed a registration statement on Form S-3 to register 2,537,096 shares of common stock of the Company held by Solera. In connection with preparations for filing of this registration statement, the Company incurred $86,000 for legal, accounting and other out-of-pocket expenses on Solera’s behalf in the six months ended September 30, 2013. | |||||||||||||
Use of Estimates | ' | ||||||||||||
Use of Estimates | |||||||||||||
The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of sales and expenses during the reported periods. Actual results could differ from those estimates. | |||||||||||||
Concentration Risk | ' | ||||||||||||
Concentration Risk | |||||||||||||
Customers with 10% or more of the Company’s net sales consist of the following: | |||||||||||||
Net Sales | |||||||||||||
Customer A | Customer B | Customer C | |||||||||||
Three Months Ended September 30, | |||||||||||||
2013 | 19 | % | 16 | % | 16 | % | |||||||
2012 | 27 | % | 13 | % | 14 | % | |||||||
Six Months Ended September 30, | |||||||||||||
2013 | 21 | % | 13 | % | 14 | % | |||||||
2012 | 27 | % | 11 | % | 12 | % | |||||||
As of September 30, 2013, three customers represented 31%, 19% and 10%, respectively, of accounts receivable. The same three customers represented 26%, 36% and 10%, respectively, of accounts receivable as of March 31, 2013. | |||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||
Fair Value of Financial Instruments | |||||||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The accounting guidance establishes a three-tiered hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: | |||||||||||||
Level 1—Quoted prices in active markets for identical assets or liabilities. | |||||||||||||
Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |||||||||||||
Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | |||||||||||||
The categorization of a financial instrument within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. | |||||||||||||
The carrying amounts of the Company’s financial instruments, including accounts receivable, accounts payable and accrued liabilities, approximate fair value due to their relatively short maturities. Upon consummation of the IPO on April 2, 2012, prior to the automatic conversion of the convertible preferred stock warrant into a common stock warrant, it was remeasured and the change in fair value was recorded as a non-cash charge in other income (expense), net and the related liability was reclassified to additional paid-in capital (Note 7). | |||||||||||||
Property and Equipment | ' | ||||||||||||
Property and Equipment | |||||||||||||
The Company capitalizes certain internal and external costs related to the development and enhancement of the Company’s internal-use software. Capitalized internal-use software development costs are included in property and equipment on the accompanying condensed consolidated balance sheets. As of September 30, 2013, the Company had $2.2 million capitalized software development costs, net of accumulated amortization, including $0.6 million in construction in progress. As of March 31, 2013, the Company had $2.1 million capitalized software development costs, net of accumulated amortization, including $0.4 million in construction in progress. | |||||||||||||
Shipping and Handling Costs | ' | ||||||||||||
Shipping and Handling Costs | |||||||||||||
Shipping and handling costs are included in selling, general and administrative expenses in the condensed consolidated statements of operations. Shipping and handling costs primarily consist of costs associated with moving finished products to customers, including costs associated with the Company’s distribution center, route delivery costs and the cost of shipping products to customers through third-party carriers. Shipping and handling costs recorded as a component of selling, general and administrative expenses were $1.8 million and $1.5 million for the three months ended September 30, 2013 and 2012, respectively and were $3.3 million and $2.8 million for the six months ended September 30, 2013 and 2012, respectively. | |||||||||||||
Research and Development Costs | ' | ||||||||||||
Research and Development Costs | |||||||||||||
Research and development costs consist of the costs incurred to develop new products. These costs include consumer research, prototype development, materials and resources to conduct trial production runs, package development and employee-related costs for personnel responsible for product innovation. Research and development costs recorded as a component of selling, general and administrative expenses were $0.6 million and $0.7 million for the three months ended September 30, 2013 and 2012, respectively and were $1.2 million and $1.5 million for the six months ended September 30, 2013 and 2012, respectively. | |||||||||||||
Advertising Costs | ' | ||||||||||||
Advertising Costs | |||||||||||||
Advertising costs include the costs of producing advertisements and the costs of communicating advertisements. The costs of producing advertisements are expensed as incurred and the costs of communicating advertising are expensed over the period of communication. Total advertising costs for the three months ended September 30, 2013 and 2012 included in selling, general and administrative expenses were $0.4 million and $0.1 million, respectively, and were $0.8 million and $0.4 million for the six months ended September 30, 2013 and 2012, respectively. | |||||||||||||
Product Recall | ' | ||||||||||||
Product Recall | |||||||||||||
The Company establishes reserves for product recalls on a product-specific basis when circumstances giving rise to the recall become known. The Company, when establishing reserves for a product recall, considers cost estimates for any fees and incentives to customers for their effort to return the product, freight and destruction charges for returned products, warehouse and inspection fees, repackaging materials, point-of-sale materials and other costs including costs incurred by contract manufacturers. Additionally, the Company estimates product returns from consumers and customers across distribution channels, utilizing third-party data and other assumptions. These factors are updated and reevaluated each period and the related reserves are adjusted when these factors indicate that the recall reserves are either insufficient to cover or exceed the estimated product recall expenses. | |||||||||||||
Significant changes in the assumptions used to develop estimates for product recall reserves could affect key financial information, including accounts receivable, inventory, accrued liabilities, net sales, gross profit, operating expenses and net income. In addition, estimating product recall reserves requires a high degree of judgment in areas such as estimating consumer returns, shelf and in-stock inventory at retailers across distribution channels, fees and incentives to be earned by customers for their effort to return the products, future freight rates and consumers’ claims. | |||||||||||||
Net Income Per Share of Common Stock | ' | ||||||||||||
Net Income Per Share of Common Stock | |||||||||||||
Basic net income per share of common stock is calculated by dividing the net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding for the period. Diluted net income per share of common stock is computed by giving effect to all potentially dilutive securities outstanding during the period. The Company utilizes the treasury stock method to calculate potential common shares that underlie its stock options to purchase common stock and restricted stock units. Performance share units were excluded from potential common shares since no shares were issuable as of September 30, 2013 and March 31, 2013. Certain stock options to purchase our common stock and restricted stock units had an anti-dilutive effect on the earnings per share for the periods presented, and were also excluded. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 6 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Customers with Ten Percent or More of Net Sales | ' | ||||||||||||
Customers with 10% or more of the Company’s net sales consist of the following: | |||||||||||||
Net Sales | |||||||||||||
Customer A | Customer B | Customer C | |||||||||||
Three Months Ended September 30, | |||||||||||||
2013 | 19 | % | 16 | % | 16 | % | |||||||
2012 | 27 | % | 13 | % | 14 | % | |||||||
Six Months Ended September 30, | |||||||||||||
2013 | 21 | % | 13 | % | 14 | % | |||||||
2012 | 27 | % | 11 | % | 12 | % |
Balance_Sheet_Components_Table
Balance Sheet Components (Tables) | 6 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Inventory | ' | ||||||||
Inventory is comprised of the following (in thousands): | |||||||||
September 30, | March 31, | ||||||||
2013 | 2013 | ||||||||
Raw materials | $ | 2,063 | $ | 1,391 | |||||
Work in process | 1,020 | 2,142 | |||||||
Finished goods | 14,250 | 11,614 | |||||||
Inventory | $ | 17,333 | $ | 15,147 | |||||
Property, Plant and Equipment, Net | ' | ||||||||
Property and equipment, net are comprised of the following (in thousands): | |||||||||
September 30, | March 31, | ||||||||
2013 | 2013 | ||||||||
Equipment and automotive | $ | 3,835 | $ | 2,959 | |||||
Software | 2,410 | 2,410 | |||||||
Leasehold improvements | 1,344 | 1,195 | |||||||
Plates and dies | 318 | 244 | |||||||
Total property and equipment | 7,907 | 6,808 | |||||||
Less: Accumulated depreciation and amortization | (2,364 | ) | (1,760 | ) | |||||
Construction in progress | 649 | 1,090 | |||||||
Property and equipment, net | $ | 6,192 | $ | 6,138 | |||||
Intangible Assets, Net | ' | ||||||||
Intangible assets, net are comprised of the following (in thousands): | |||||||||
September 30, | March 31, | ||||||||
2013 | 2013 | ||||||||
Product formulas | $ | 1,023 | $ | 1,023 | |||||
Other intangible assets | 189 | 189 | |||||||
Total intangible assets | 1,212 | 1,212 | |||||||
Less: accumulated amortization | (126 | ) | (96 | ) | |||||
Intangible assets, net | $ | 1,086 | $ | 1,116 | |||||
Components of Accrued Liabilities | ' | ||||||||
The following table shows the components of accrued liabilities (in thousands): | |||||||||
September 30, | March 31, | ||||||||
2013 | 2013 | ||||||||
Payroll and employee-related expenses | $ | 2,310 | $ | 3,779 | |||||
Accrued trade expenses | 5,060 | 2,299 | |||||||
Inventory received not invoiced | 4,818 | 4,038 | |||||||
Deferred rent | 253 | 260 | |||||||
Brokerage commissions | 231 | 407 | |||||||
Other accrued liabilities | 980 | 1,238 | |||||||
Total accrued liabilities | $ | 13,652 | $ | 12,021 | |||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 6 Months Ended | ||||
Sep. 30, 2013 | |||||
Future Minimum Lease Payments under Non-cancelable Operating Leases | ' | ||||
Future minimum lease payments under the non-cancelable operating leases as of September 30, 2013 are as follows (in thousands): | |||||
Lease Payments | |||||
Six Months Ending March 31, 2014 | $ | 330 | |||
Fiscal Year Ending March 31: | |||||
2015 | 675 | ||||
2016 | 673 | ||||
2017 | 669 | ||||
2018 | 662 | ||||
2019 | 586 | ||||
Total future minimum lease payments | $ | 3,595 | |||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 6 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Activity of Stock Options | ' | ||||||||
The following table summarizes the activity of stock options during the six months ended September 30, 2013: | |||||||||
Number of Shares | Weighted-Average | ||||||||
Exercise Price | |||||||||
Balance, March 31, 2013 | 1,203,990 | $ | 13.26 | ||||||
Granted | 42,276 | 38.62 | |||||||
Forfeited | (77,746 | ) | 18.31 | ||||||
Exercised | (60,530 | ) | 10.46 | ||||||
Balance, September 30, 2013 | 1,107,990 | $ | 13.24 | ||||||
Summarizes Activity of Unvested Restricted Stock Units and Performance Share Units | ' | ||||||||
The following table summarizes the activity of unvested restricted stock units and performance share units during the six months ended September 30, 2013: | |||||||||
Shares-Based Awards | Shares | Weighted-Average | |||||||
Grant Date | |||||||||
Fair Value | |||||||||
Unvested at March 31, 2013 | 71,165 | $ | 21.73 | ||||||
Granted | 47,366 | 39.91 | |||||||
Vested | (4,692 | ) | 45.27 | ||||||
Forfeited | (13,442 | ) | 24.16 | ||||||
Unvested at September 30, 2013 | 100,397 | $ | 28.69 | ||||||
Net_Income_per_Share_of_Common1
Net Income per Share of Common Stock attributable to Common Stockholders (Tables) | 6 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Outstanding Shares of Potentially Dilutive Securities Excluded from Computation of Diluted Net Income Per Share of Common Stock | ' | ||||||||||||||||
The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net income per share of common stock for the periods presented, because including them would have been anti-dilutive: | |||||||||||||||||
Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Options to purchase common stock | 85,046 | 2,562 | 133,515 | 2,562 | |||||||||||||
Restricted stock units | 5,434 | 6,256 | 12,864 | 6,256 | |||||||||||||
Total | 90,480 | 8,818 | 146,379 | 8,818 | |||||||||||||
Reconciliation of Basic and Diluted Net Income Per Share Attributable to Common Stockholders | ' | ||||||||||||||||
A reconciliation of the basic and diluted net income per share attributable to common stockholders is as follows (in thousands except share and per share amounts): | |||||||||||||||||
Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net income per share: | |||||||||||||||||
Net income | $ | 5,552 | $ | 3,785 | $ | 7,581 | $ | 5,916 | |||||||||
Weighted average shares of common stock outstanding used in computing net income—basic | 16,896,227 | 17,070,327 | 16,882,965 | 17,003,534 | |||||||||||||
Potential dilutive options | 482,058 | 625,684 | 480,517 | 646,468 | |||||||||||||
Potential dilutive restricted stock units | 14,162 | 6,505 | 13,164 | 6,354 | |||||||||||||
Weighted average shares of common stock outstanding used in computing net income—diluted | 17,392,447 | 17,702,516 | 17,376,646 | 17,656,356 | |||||||||||||
Net income per share | |||||||||||||||||
—Basic | $ | 0.33 | $ | 0.22 | $ | 0.45 | $ | 0.35 | |||||||||
—Diluted | $ | 0.32 | $ | 0.21 | $ | 0.44 | $ | 0.34 | |||||||||
Geographic_Areas_and_Product_S1
Geographic Areas and Product Sales (Tables) | 6 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Net Sales by Geographic Area | ' | ||||||||||||||||
The Company’s net sales by geographic area, based on the location to which the product was shipped, are summarized as follows (in thousands): | |||||||||||||||||
Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
United States | $ | 56,226 | $ | 44,423 | $ | 93,671 | $ | 77,571 | |||||||||
Canada | 2,424 | 2,263 | 4,019 | 3,408 | |||||||||||||
$ | 58,650 | $ | 46,686 | $ | 97,690 | $ | 80,979 | ||||||||||
Net Sales by Product | ' | ||||||||||||||||
The following table sets forth net sales by product category (in thousands): | |||||||||||||||||
Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Meals | $ | 29,739 | $ | 21,869 | $ | 46,293 | $ | 36,536 | |||||||||
Snacks | 22,057 | 19,146 | 37,878 | 32,609 | |||||||||||||
Dressings, condiments and other | 6,854 | 5,671 | 13,519 | 11,834 | |||||||||||||
$ | 58,650 | $ | 46,686 | $ | 97,690 | $ | 80,979 | ||||||||||
Product_Recall_Tables
Product Recall (Tables) | 6 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Impact of the Recall-Related Charges and Related Insurance Recoveries | ' | ||||||||
The Company recorded the estimated customer and consumer returns as a reduction of net sales, related costs associated with product returns, destruction charges, inventory write-off and costs incurred by contract manufacturers as cost of sales, and administrative costs associated with the recall such as legal expenses as selling, general and administrative expenses. The Company recorded $1.2 million for insurance recoveries and a $0.1 million in reduction of net sales reserve in connection with the product recall in each of the three and six months ended September 30, 2013, respectively. The impact of the recall-related charges and related insurance recoveries in the three and six months ended September 30, 2013 is as follows (in thousands except per share amount): | |||||||||
Three Months Ended | Six Months Ended | ||||||||
September 30, 2013 | September 30, 2013 | ||||||||
Benefit to net sales | $ | 751 | $ | 751 | |||||
Benefit to cost of sales | 490 | 273 | |||||||
Benefit to/(incremental) selling, general and administrative expenses | 32 | (11 | ) | ||||||
Total benefit to income before income taxes | $ | 1,273 | $ | 1,013 | |||||
Benefit to net income | $ | 761 | $ | 606 | |||||
Benefit to net income per diluted share | $ | 0.04 | $ | 0.03 | |||||
Description_of_Business_Additi
Description of Business - Additional Information (Detail) | 6 Months Ended |
Sep. 30, 2013 | |
Product | |
Entity Information [Line Items] | ' |
Number of products offered | 135 |
Incorporation date | 28-Apr-04 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 | Jul. 16, 2013 | |
Customer | Customer | |||||
Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Outstanding shares of convertible preferred stock converted into number of shares of common stock | 15,221,571 | ' | 15,221,571 | ' | ' | ' |
Reclassified common stock and the related convertible preferred stock warrant liability to additional paid-in capital | 80,560 | ' | 80,560 | ' | ' | ' |
Common stock, shares authorized | 30,000,000 | ' | 30,000,000 | ' | 30,000,000 | ' |
Common stock, par value | $0.00 | ' | $0.00 | ' | $0.00 | ' |
Preferred stock, shares authorized | 5,000,000 | ' | 5,000,000 | ' | 5,000,000 | ' |
Preferred stock, par value | $0.00 | ' | $0.00 | ' | $0.00 | ' |
Common stock, shares issued | 16,909,546 | ' | 16,909,546 | ' | 16,849,016 | ' |
Common stock, shares outstanding | 16,909,546 | ' | 16,909,546 | ' | 16,849,016 | ' |
Legal and other expenses | ' | ' | $86,000 | ' | ' | ' |
Shares held by Solera registered under shelf registration statement (Form S-3) | ' | ' | ' | ' | ' | 2,537,096 |
Number of customers | ' | ' | 3 | ' | 3 | ' |
Capitalized software development costs, net of accumulated amortization | 2,200,000 | ' | 2,200,000 | ' | 2,100,000 | ' |
Construction in progress | 600,000 | ' | 600,000 | ' | 400,000 | ' |
Shipping and handling costs | 1,800,000 | 1,500,000 | 3,300,000 | 2,800,000 | ' | ' |
Research and development cost | 600,000 | 700,000 | 1,200,000 | 1,500,000 | ' | ' |
Advertising costs | 400,000 | 100,000 | 800,000 | 400,000 | ' | ' |
IPO | ' | ' | ' | ' | ' | ' |
Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Sale of stock, transaction date | ' | ' | 2-Apr-12 | ' | ' | ' |
Number of shares sold by the Company | ' | ' | 950,000 | ' | ' | ' |
Common stock, offering price | $19 | ' | $19 | ' | ' | ' |
Net proceeds from IPO | ' | ' | 11,100,000 | ' | ' | ' |
Underwriting discounts and commissions | ' | ' | 1,300,000 | ' | ' | ' |
Offering expenses | ' | ' | 5,600,000 | ' | ' | ' |
Number of shares sold to shareholders | ' | ' | 4,800,000 | ' | ' | ' |
Capital stock, shares authorized | 35,000,000 | ' | 35,000,000 | ' | ' | ' |
Common stock, shares authorized | 30,000,000 | ' | 30,000,000 | ' | ' | ' |
Common stock, par value | $0.00 | ' | $0.00 | ' | ' | ' |
Preferred stock, shares authorized | 5,000,000 | ' | 5,000,000 | ' | ' | ' |
Preferred stock, par value | $0.00 | ' | $0.00 | ' | ' | ' |
Common stock, shares issued | 16,909,546 | ' | 16,909,546 | ' | ' | ' |
Common stock, shares outstanding | 16,909,546 | ' | 16,909,546 | ' | ' | ' |
Preferred stock, shares issued | ' | ' | ' | ' | ' | ' |
Preferred stock, shares outstanding | ' | ' | ' | ' | ' | ' |
Secondary Public Offering | ' | ' | ' | ' | ' | ' |
Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Sale of stock, transaction date | ' | ' | 6-Aug-12 | ' | ' | ' |
Common stock, offering price | $39.25 | ' | $39.25 | ' | ' | ' |
Offering expenses | ' | ' | 700,000 | ' | ' | ' |
Number of shares sold to shareholders | ' | ' | $3,649,976 | ' | ' | ' |
Major Customer | ' | ' | ' | ' | ' | ' |
Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Percentage of accounts receivable | ' | ' | 31.00% | ' | 26.00% | ' |
Major Customer One | ' | ' | ' | ' | ' | ' |
Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Percentage of accounts receivable | ' | ' | 19.00% | ' | 36.00% | ' |
Major Customer Two | ' | ' | ' | ' | ' | ' |
Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Percentage of accounts receivable | ' | ' | 10.00% | ' | 10.00% | ' |
Customers_with_Ten_Percent_or_
Customers with Ten Percent or More of Net Sales (Detail) (Sales Revenue, Goods, Net) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Customer A | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' |
Concentration risk, percentage | 19.00% | 27.00% | 21.00% | 27.00% |
Customer B | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' |
Concentration risk, percentage | 16.00% | 13.00% | 13.00% | 11.00% |
Customer C | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' |
Concentration risk, percentage | 16.00% | 14.00% | 14.00% | 12.00% |
Inventory_Detail
Inventory (Detail) (USD $) | Sep. 30, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory [Line Items] | ' | ' |
Raw materials | $2,063 | $1,391 |
Work in process | 1,020 | 2,142 |
Finished goods | 14,250 | 11,614 |
Inventory | $17,333 | $15,147 |
Property_and_Equipment_Net_Det
Property and Equipment, Net (Detail) (USD $) | Sep. 30, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Total property and equipment | $7,907 | $6,808 |
Less: Accumulated depreciation and amortization | -2,364 | -1,760 |
Construction in progress | 649 | 1,090 |
Property and equipment, net | 6,192 | 6,138 |
Equipment and Automotive | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total property and equipment | 3,835 | 2,959 |
Software | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total property and equipment | 2,410 | 2,410 |
Leasehold Improvements | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total property and equipment | 1,344 | 1,195 |
Plates and Dies | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total property and equipment | $318 | $244 |
Balance_Sheet_Components_Addit
Balance Sheet Components - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 | |
Balance Sheet Details [Line Items] | ' | ' | ' | ' | ' |
Depreciation expense incurred | $313,000 | $248,000 | $607,000 | $433,000 | ' |
Amortization expense | 15,000 | 15,000 | 30,000 | 30,000 | ' |
Future Amortization Expense,remainder of fiscal 2014 | 30,000 | ' | 30,000 | ' | ' |
Future Amortization Expense 2015 | 60,000 | ' | 60,000 | ' | ' |
Future Amortization Expense 2016 | 60,000 | ' | 60,000 | ' | ' |
Future Amortization Expense 2017 | 60,000 | ' | 60,000 | ' | ' |
Future Amortization Expense 2018 | 60,000 | ' | 60,000 | ' | ' |
Future Amortization Expense 2019 | 60,000 | ' | 60,000 | ' | ' |
Amortization expense thereafter | 756,000 | ' | 756,000 | ' | ' |
Prepaid expenses and other current assets | 5,411,000 | ' | 5,411,000 | ' | 5,050,000 |
Contract manufacturers and suppliers | ' | ' | ' | ' | ' |
Balance Sheet Details [Line Items] | ' | ' | ' | ' | ' |
Prepaid expenses and other current assets | $3,000,000 | ' | $3,000,000 | ' | $3,900,000 |
Intangible_Assets_Net_Detail
Intangible Assets, Net (Detail) (USD $) | Sep. 30, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Product formulas | $1,023 | $1,023 |
Other intangible assets | 189 | 189 |
Total intangible assets | 1,212 | 1,212 |
Less: accumulated amortization | -126 | -96 |
Intangible assets, net | $1,086 | $1,116 |
Components_of_Accrued_Liabilit
Components of Accrued Liabilities (Detail) (USD $) | Sep. 30, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accrued Liabilities [Line Items] | ' | ' |
Payroll and employee-related expenses | $2,310 | $3,779 |
Accrued trade expenses | 5,060 | 2,299 |
Inventory received not invoiced | 4,818 | 4,038 |
Deferred rent | 253 | 260 |
Brokerage commissions | 231 | 407 |
Other accrued liabilities | 980 | 1,238 |
Total accrued liabilities | $13,652 | $12,021 |
Credit_Facility_Additional_Inf
Credit Facility - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 | Mar. 31, 2005 |
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Borrowing capacity for revolving loans with Bank of America | ' | $15 | ' | $15 | ' | ' | $11 |
Decrease in maximum borrowing limit on revolving loans | ' | ' | ' | ' | ' | 10 | ' |
Extended borrowing limit expiration date | ' | ' | ' | ' | ' | 20-Aug-12 | ' |
Loans and letter of credit, maximum borrowing capacity | 20 | ' | ' | ' | ' | 40 | ' |
Line of credit facility, expiration date | 'August 2014 | ' | ' | ' | ' | 'August 2016 | ' |
Weighted average interest rate | ' | 1.40% | 1.50% | 1.50% | 1.50% | ' | ' |
Line of credit facility, available borrowing capacity | ' | 40 | ' | 40 | ' | 33 | ' |
Funded Debt to Adjusted EBITDA | ' | ' | ' | 2.75 | ' | ' | ' |
Minimum net worth | ' | $50 | ' | $50 | ' | ' | ' |
Percentage of earnings after taxes | ' | 30.00% | ' | 30.00% | ' | ' | ' |
Minimum | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, unused line fee | ' | 0.25% | ' | ' | ' | ' | ' |
Maximum | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, unused line fee | ' | 0.40% | ' | ' | ' | ' | ' |
Rate Option One | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Line of credit, interest rate | ' | 1.25% | ' | ' | ' | ' | ' |
Rate Option Two | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Line of credit, interest rate | ' | 1.25% | ' | ' | ' | ' | ' |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 1 Months Ended | 6 Months Ended |
Apr. 30, 2012 | Sep. 30, 2013 | |
Related Party Transaction [Line Items] | ' | ' |
Legal and other expenses | ' | $86,000 |
Secondary Public Offering | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Sale of stock, transaction date | ' | 6-Aug-12 |
Common stock price | ' | $39.25 |
Offering expenses | ' | 700,000 |
Number of shares sold to shareholders | ' | 3,649,976 |
Solera Partners, L.P | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Contract termination, fee | 1,300,000 | ' |
Legal and other expenses | ' | $86,000 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Sep. 04, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Contingencies And Commitments [Line Items] | ' | ' | ' | ' | ' |
Rent expense | ' | $156,000 | $120,000 | $306,000 | $239,000 |
Purchase commitments | ' | 14,500,000 | ' | 14,500,000 | ' |
Product formula purchase price | ' | 2,000,000 | ' | 2,000,000 | ' |
Annual payment for product formula purchases | ' | ' | ' | 150,000 | ' |
Product formula purchase agreement period | ' | ' | ' | '7 years | ' |
Product formula purchase agreement period end date | ' | ' | ' | '2018-11 | ' |
Notice of intent to sue by Center for Environmental Health, in days | '60 days | ' | ' | ' | ' |
Amount the plaintiff may seek per violation per day | 2,500 | ' | ' | ' | ' |
Overhead fees | ' | ' | ' | ' | ' |
Contingencies And Commitments [Line Items] | ' | ' | ' | ' | ' |
Remaining obligation | ' | ' | ' | 350,000 | ' |
Product formulas | ' | ' | ' | ' | ' |
Contingencies And Commitments [Line Items] | ' | ' | ' | ' | ' |
Remaining obligation | ' | ' | ' | 1,850,000 | ' |
Minimum | ' | ' | ' | ' | ' |
Contingencies And Commitments [Line Items] | ' | ' | ' | ' | ' |
Annual overhead fees | ' | ' | ' | $200,000 | ' |
Future_Minimum_Lease_Payments_
Future Minimum Lease Payments under Non-cancelable Operating Leases (Detail) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Operating Leased Assets [Line Items] | ' |
2014 | $330 |
2015 | 675 |
2016 | 673 |
2017 | 669 |
2018 | 662 |
2019 | 586 |
Total future minimum lease payments | $3,595 |
Convertible_Preferred_Stock_Wa1
Convertible Preferred Stock Warrant - Additional Information (Detail) (USD $) | 6 Months Ended | 1 Months Ended | 6 Months Ended | 1 Months Ended |
Sep. 30, 2013 | Apr. 12, 2012 | Sep. 30, 2013 | Apr. 02, 2013 | |
Hercules | Series A Convertible Preferred Stock | Convertible Preferred Stock | ||
Other Income and Expense | ||||
Convertible Preferred Stock Warrants [Line Items] | ' | ' | ' | ' |
Conversion of warrants | ' | ' | '80560 | ' |
Conversion of warrants exercise price | ' | ' | $8.07 | ' |
Warrants expiry date | 1-Apr-18 | ' | ' | ' |
Increase in fair value of convertible preferred stock warrant | ' | ' | ' | $13,000 |
Warrants converted to common stock | 80,560 | ' | ' | ' |
Common stock under exercise of warrants | ' | 80,560 | ' | ' |
Shares surrendered | ' | 17,367 | ' | ' |
Common stock shares issued | ' | 63,193 | ' | ' |
Preferred_Stock_Additional_Inf
Preferred Stock - Additional Information (Detail) (USD $) | Sep. 30, 2013 | Mar. 31, 2013 |
Class of Stock [Line Items] | ' | ' |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock par value | $0.00 | $0.00 |
Common_Stock_Additional_Inform
Common Stock - Additional Information (Detail) (USD $) | 6 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 | |
Vote | |||
Class of Stock [Line Items] | ' | ' | ' |
Common stock, authorized | 30,000,000 | ' | 30,000,000 |
Common stock, par value | $0.00 | ' | $0.00 |
Common stock, issued | 16,909,546 | ' | 16,849,016 |
Common stock, outstanding | 16,909,546 | ' | 16,849,016 |
Common stock, right per share | 1 | ' | ' |
Common stock dividends declared and paid | $0 | $0 | ' |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | |||||||||
Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses | Selling, General and Administrative Expenses | Selling, General and Administrative Expenses | Performance Shares | Maximum | 2004 Stock Option Plan | 2004 Stock Option Plan | 2004 Stock Option Plan | 2004 Stock Option Plan | 2004 Stock Option Plan | |||
Performance Shares | Minimum | Maximum | Second Anniversary | Third Anniversary | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options, vesting period (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | '5 years | ' | ' |
Stock options, expiration period (in years) | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' |
Percentage of restricted stock units granted to employees vested | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | 50.00% |
Stock-based compensation expense | ' | ' | $116,000 | $231,000 | $409,000 | $447,000 | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense,weighted average grant date fair value of the employee stock options | $14.03 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense, related to stock options granted to the employees | 1,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of total shares to be issued | 100,397 | 71,165 | ' | ' | ' | ' | 73,333 | 110,005 | ' | ' | ' | ' | ' |
Unvested shares outstanding | ' | ' | ' | ' | ' | ' | 36,672 | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost related to unvested share-based compensation | $3,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost, expected to be recognized over a weighted average period | '3 years 1 month 6 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Activity_of_Stock_Options_Deta
Activity of Stock Options (Detail) (USD $) | 6 Months Ended |
Sep. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Beginning balance, shares | 1,203,990 |
Granted, shares | 42,276 |
Forfeited,shares | -77,746 |
Exercised, shares | -60,530 |
Ending balance, shares | 1,107,990 |
Beginning balance, weighted average exercise price | $13.26 |
Granted, Weighted-Average Exercise Price | $38.62 |
Forfeited,Weighted-Average Exercise Price | $18.31 |
Exercised, Weighted-Average Exercise Price | $10.46 |
Ending Balance, Weighted-Average Exercise Price | $13.24 |
Summarizes_Activity_of_Unveste
Summarizes Activity of Unvested Restricted Stock Units and Performance Share Units (Detail) (USD $) | 6 Months Ended |
Sep. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Beginning balance, unvested shares | 71,165 |
Granted, shares | 47,366 |
Vested, shares | -4,692 |
Forfeited, shares | -13,442 |
Ending balance, unvested shares | 100,397 |
Beginning balance, weighted-average grant date fair value of unvested shares | $21.73 |
Granted, weighted-average grant date fair value | $39.91 |
Vested, weighted-average grant date fair value | $45.27 |
Forfeited, weighted-average grant date fair value | $24.16 |
Ending balance, weighted-average grant date fair value of unvested shares | $28.69 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Income Taxes [Line Items] | ' | ' | ' | ' |
Effective Income Tax Rate | 40.20% | 40.50% | 40.20% | 40.60% |
Outstanding_Shares_of_Potentia
Outstanding Shares of Potentially Dilutive Securities Excluded from Computation of Diluted Net Income Per Share of Common Stock (Detail) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Potentially dilutive securities excluded from the computation of diluted net income per share of common stock | 90,480 | 8,818 | 146,379 | 8,818 |
Stock Options | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Potentially dilutive securities excluded from the computation of diluted net income per share of common stock | 85,046 | 2,562 | 133,515 | 2,562 |
Restricted Stock Units | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Potentially dilutive securities excluded from the computation of diluted net income per share of common stock | 5,434 | 6,256 | 12,864 | 6,256 |
Reconciliation_of_Basic_and_Di
Reconciliation of Basic and Diluted Net Income Per Share Attributable to Common Stockholders (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net income per share: | ' | ' | ' | ' |
Net income | $5,552 | $3,785 | $7,581 | $5,916 |
Weighted average shares of common stock outstanding used in computing net income-basic | 16,896,227 | 17,070,327 | 16,882,965 | 17,003,534 |
Weighted average shares of common stock outstanding used in computing net income-diluted | 17,392,447 | 17,702,516 | 17,376,646 | 17,656,356 |
Net income per share | ' | ' | ' | ' |
-Basic | $0.33 | $0.22 | $0.45 | $0.35 |
-Diluted | $0.32 | $0.21 | $0.44 | $0.34 |
Stock Options | ' | ' | ' | ' |
Net income per share: | ' | ' | ' | ' |
Potential dilutive | 482,058 | 625,684 | 480,517 | 646,468 |
Restricted Stock Units | ' | ' | ' | ' |
Net income per share: | ' | ' | ' | ' |
Potential dilutive | 14,162 | 6,505 | 13,164 | 6,354 |
Net_Sales_by_Geographic_Area_D
Net Sales by Geographic Area (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Net sales | $58,650 | $46,686 | $97,690 | $80,979 |
UNITED STATES | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Net sales | 56,226 | 44,423 | 93,671 | 77,571 |
CANADA | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Net sales | $2,424 | $2,263 | $4,019 | $3,408 |
Net_Sales_by_Product_Detail
Net Sales by Product (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenue from External Customer [Line Items] | ' | ' | ' | ' |
Net sales | $58,650 | $46,686 | $97,690 | $80,979 |
Meals | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' |
Net sales | 29,739 | 21,869 | 46,293 | 36,536 |
Snacks | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' |
Net sales | 22,057 | 19,146 | 37,878 | 32,609 |
Dressings, Condiments and Other | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' |
Net sales | $6,854 | $5,671 | $13,519 | $11,834 |
Product_Recall_Additional_Info
Product Recall - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
Product Information [Line Items] | ' | ' |
Amount recovered from the submitted claim | $1.20 | $1.20 |
Reduction of net sales reserve | $0.10 | $0.10 |
Impact_of_the_RecallRelated_Ch
Impact of the Recall-Related Charges and Related Insurance Recoveries (Detail) (USD $) | 3 Months Ended | 6 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
Product Information [Line Items] | ' | ' |
Benefit to net sales | $751 | $751 |
Benefit to cost of sales | 490 | 273 |
Benefit to/(incremental) selling, general and administrative expenses | 32 | -11 |
Total benefit to income before income taxes | 1,273 | 1,013 |
Benefit to net income | $761 | $606 |
Benefit to net income per diluted share | $0.04 | $0.03 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (Subsequent Event, Joplin Plant, USD $) | 1 Months Ended |
In Millions, unless otherwise specified | Nov. 05, 2013 |
Subsequent Event [Line Items] | ' |
Business acquisition, cash paid | $6 |
Business acquisition, inventory value | $4 |
Supply agreement with affiliate | '3 years |
Minimum | ' |
Subsequent Event [Line Items] | ' |
Number of years the plant produced as primary manufacturer | '10 years |
Production supply accounted by the plant currently | 50.00% |