Cover Page
Cover Page - shares | 6 Months Ended | |
Sep. 30, 2020 | Oct. 30, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-37873 | |
Entity Registrant Name | e.l.f. Beauty, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 46-4464131 | |
Entity Address, Address Line One | 570 10th Street | |
Entity Address, City or Town | Oakland, | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94607 | |
City Area Code | (510) | |
Local Phone Number | 778-7787 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | ELF | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 51,033,310 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001600033 | |
Current Fiscal Year End Date | --03-31 |
Condensed consolidated balance
Condensed consolidated balance sheets (unaudited) - USD ($) $ in Thousands | Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 |
Current assets: | |||
Cash and cash equivalents | $ 41,041 | $ 46,167 | $ 58,747 |
Accounts receivable, net | 33,844 | 29,721 | 27,715 |
Inventory, net | 64,486 | 46,209 | 50,850 |
Prepaid expenses and other current assets | 12,389 | 10,263 | 7,813 |
Total current assets | 151,760 | 132,360 | 145,125 |
Property and equipment, net | 16,270 | 17,171 | 16,059 |
Intangible assets, net | 98,348 | 102,410 | 93,613 |
Goodwill | 171,620 | 171,321 | 157,264 |
Investments | 2,875 | 2,875 | 2,875 |
Other assets | 32,551 | 26,967 | 22,091 |
Total assets | 473,424 | 453,104 | 437,027 |
Current liabilities: | |||
Current portion of long-term debt and finance lease obligations | 14,219 | 12,568 | 11,310 |
Accounts payable | 20,544 | 12,390 | 14,807 |
Accrued expenses and other current liabilities | 26,264 | 26,165 | 20,424 |
Total current liabilities | 61,027 | 51,123 | 46,541 |
Long-term debt and finance lease obligations | 118,577 | 126,088 | 132,377 |
Deferred tax liabilities | 19,466 | 21,892 | 20,096 |
Long-term operating lease obligations | 19,185 | 11,239 | 5,846 |
Other long-term liabilities | 516 | 591 | 479 |
Total liabilities | 218,771 | 210,933 | 205,339 |
Commitments and contingencies (Note 8) | |||
Stockholders' equity: | |||
Common stock, par value of $0.01 per share; 250,000,000 shares authorized as of September 30, 2020, March 31, 2020 and September 30, 2019; 50,972,425, 50,003,531 and 50,013,772 shares issued and outstanding as of September 30, 2020, March 31, 2020 and September 30, 2019, respectively | 494 | 489 | 485 |
Additional paid-in capital | 763,731 | 753,213 | 750,395 |
Accumulated deficit | (509,572) | (511,531) | (519,192) |
Total stockholders' equity | 254,653 | 242,171 | 231,688 |
Total liabilities and stockholders' equity | $ 473,424 | $ 453,104 | $ 437,027 |
Condensed consolidated balanc_2
Condensed consolidated balance sheets (unaudited) (Parenthetical) - $ / shares | Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 |
Statement of Financial Position [Abstract] | |||
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 | 250,000,000 |
Common stock, shares issued (in shares) | 50,972,425 | 50,003,531 | 50,013,772 |
Common stock, shares outstanding (in shares) | 50,972,425 | 50,003,531 | 50,013,772 |
Condensed consolidated statemen
Condensed consolidated statements of operations and comprehensive income (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
Net sales | $ 72,350 | $ 67,615 | $ 136,877 | $ 127,379 |
Cost of sales | 25,212 | 24,267 | 46,398 | 46,840 |
Gross profit | 47,138 | 43,348 | 90,479 | 80,539 |
Selling, general and administrative expenses | 45,170 | 38,444 | 85,502 | 70,499 |
Restructuring income | 0 | (4,198) | 0 | (5,990) |
Operating income | 1,968 | 9,102 | 4,977 | 16,030 |
Other (expense) income, net | (859) | 586 | (889) | 937 |
Interest expense, net | (905) | (1,643) | (2,373) | (3,360) |
Income before provision for income taxes | 204 | 8,045 | 1,715 | 13,607 |
Income tax benefit (provision) | 243 | (1,528) | 244 | (3,384) |
Net income | 447 | 6,517 | 1,959 | 10,223 |
Comprehensive income | $ 447 | $ 6,517 | $ 1,959 | $ 10,223 |
Net income per share: | ||||
Basic (in USD per share) | $ 0.01 | $ 0.13 | $ 0.04 | $ 0.21 |
Diluted (in USD per share) | $ 0.01 | $ 0.13 | $ 0.04 | $ 0.20 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 49,147,366 | 48,419,845 | 49,036,519 | 48,383,095 |
Diluted (in shares) | 51,748,437 | 50,939,915 | 51,344,797 | 50,628,704 |
Condensed consolidated statem_2
Condensed consolidated statements of stockholders' equity (unaudited) - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Accumulated deficit |
Beginning balance at Mar. 31, 2019 | $ 215,215 | $ 483 | $ 744,147 | $ (529,415) |
Beginning balance (in shares) at Mar. 31, 2019 | 48,288,720,000 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 3,706 | 3,706 | ||
Stock-based compensation | 3,926 | 3,926 | ||
Exercise of stock options and vesting of restricted stock | 240 | $ 2 | 238 | |
Exercise of stock options, net (in shares) | 179,225,000 | |||
Repurchase of common stock | (1,079) | $ (1) | (1,078) | |
Repurchase of common stock (in shares) | (89,610,000) | |||
Ending balance at Jun. 30, 2019 | 222,008 | $ 484 | 747,233 | (525,709) |
Ending balance (in shares) at Jun. 30, 2019 | 48,378,335,000 | |||
Beginning balance at Mar. 31, 2019 | 215,215 | $ 483 | 744,147 | (529,415) |
Beginning balance (in shares) at Mar. 31, 2019 | 48,288,720,000 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 10,223 | |||
Ending balance at Sep. 30, 2019 | 231,688 | $ 485 | 750,395 | (519,192) |
Ending balance (in shares) at Sep. 30, 2019 | 48,526,112,000 | |||
Beginning balance at Jun. 30, 2019 | 222,008 | $ 484 | 747,233 | (525,709) |
Beginning balance (in shares) at Jun. 30, 2019 | 48,378,335,000 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 6,517 | 6,517 | ||
Stock-based compensation | 4,004 | 4,004 | ||
Exercise of stock options and vesting of restricted stock | 626 | $ 2 | 624 | |
Exercise of stock options, net (in shares) | 236,803,000 | |||
Repurchase of common stock | (1,467) | $ (1) | (1,466) | |
Repurchase of common stock (in shares) | (89,026,000) | |||
Ending balance at Sep. 30, 2019 | 231,688 | $ 485 | 750,395 | (519,192) |
Ending balance (in shares) at Sep. 30, 2019 | 48,526,112,000 | |||
Beginning balance at Mar. 31, 2020 | 242,171 | $ 489 | 753,213 | (511,531) |
Beginning balance (in shares) at Mar. 31, 2020 | 48,874,742,000 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 1,512 | 1,512 | ||
Stock-based compensation | 4,627 | 4,627 | ||
Exercise of stock options and vesting of restricted stock | 398 | $ 2 | 396 | |
Exercise of stock options, net (in shares) | 175,561,000 | |||
Ending balance at Jun. 30, 2020 | 248,708 | $ 491 | 758,236 | (510,019) |
Ending balance (in shares) at Jun. 30, 2020 | 49,050,303,000 | |||
Beginning balance at Mar. 31, 2020 | 242,171 | $ 489 | 753,213 | (511,531) |
Beginning balance (in shares) at Mar. 31, 2020 | 48,874,742,000 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 1,959 | |||
Ending balance at Sep. 30, 2020 | 254,653 | $ 494 | 763,731 | (509,572) |
Ending balance (in shares) at Sep. 30, 2020 | 49,314,029,000 | |||
Beginning balance at Jun. 30, 2020 | 248,708 | $ 491 | 758,236 | (510,019) |
Beginning balance (in shares) at Jun. 30, 2020 | 49,050,303,000 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 447 | 447 | ||
Stock-based compensation | 5,385 | 5,385 | ||
Exercise of stock options and vesting of restricted stock | 113 | $ 3 | 110 | |
Exercise of stock options, net (in shares) | 263,726,000 | |||
Ending balance at Sep. 30, 2020 | $ 254,653 | $ 494 | $ 763,731 | $ (509,572) |
Ending balance (in shares) at Sep. 30, 2020 | 49,314,029,000 |
Condensed consolidated statem_3
Condensed consolidated statements of cash flows (unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 1,959 | $ 10,223 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 12,597 | 11,169 |
Restructuring income | 0 | (5,990) |
Stock-based compensation expense | 10,012 | 7,930 |
Amortization of debt issuance costs and discount on debt | 428 | 379 |
Deferred income taxes | (2,465) | 3,343 |
Other, net | (26) | 364 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (4,123) | 4,355 |
Inventories | (18,270) | (7,071) |
Prepaid expenses and other assets | (3,008) | (1,202) |
Accounts payable and accrued expenses | 7,962 | 4,182 |
Other liabilities | (1,653) | (10,677) |
Net cash provided by operating activities | 3,413 | 17,005 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (2,746) | (5,534) |
Net cash used in investing activities | (2,746) | (5,534) |
Cash flows from financing activities: | ||
Proceeds from revolving line of credit | 20,000 | 0 |
Repayment of revolving line of credit | (20,000) | 0 |
Repayment of long-term debt | (5,569) | (4,538) |
Debt issuance costs paid | (334) | 0 |
Repurchase of common stock | 0 | (2,546) |
Cash received from issuance of common stock | 511 | 866 |
Other, net | (401) | (380) |
Net cash used in financing activities | (5,793) | (6,598) |
Net (decrease) increase in cash and cash equivalents | (5,126) | 4,873 |
Cash and cash equivalents - beginning of period | 46,167 | 53,874 |
Cash and cash equivalents - end of period | $ 41,041 | $ 58,747 |
Nature of operations
Nature of operations | 6 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of operations | Nature of operationse.l.f. Beauty, Inc. (“e.l.f. Beauty,” and together with its subsidiaries, the “Company” or “we”) was formed as a Delaware corporation on December 20, 2013. e.l.f. Beauty is organized as a holding company and operates through its subsidiaries, e.l.f. Cosmetics, Inc. and W3LL PEOPLE, Inc. The Company’s brands are e.l.f Cosmetics, W3LL PEOPLE and Keys Soulcare. e.l.f. Cosmetics makes the best of beauty accessible to every eye, lip and face by offering high-quality, prestige-inspired cosmetics and skincare products at an extraordinary value, 100% vegan and cruelty-free. W3LL PEOPLE is a clean beauty pioneer, raising the standard for high-performance, plant-powered, cruelty-free cosmetics since 2008. Keys Soulcare is a lifestyle beauty brand created with artist, producer, actress and New York Times best-selling author Alicia Keys. With an inclusive point of view, an authentic voice and a line of skin-loving, dermatologist-developed, cruelty-free products, Keys Soulcare aims to bring new meaning to beauty by honoring ritual in our daily life and practicing intention in every action. |
Summary of significant accounti
Summary of significant accounting policies | 6 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | Summary of significant accounting policies Basis of presentation This report reflects the Company's second quarter of the fiscal year ending March 31, 2021, covering the period from July 1, 2020 to September 30, 2020 for the three months ended September 30, 2020 and the period from April 1, 2020 to September 30, 2020 for the six months ended September 30, 2020. The accompanying unaudited condensed consolidated financial statements and related notes have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). In the opinion of the Company, these interim financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of September 30, 2020, March 31, 2020 and September 30, 2019, and its results of operations and stockholders' equity for the three and six months ended September 30, 2020 and September 30, 2019 and its cash flows for the six months ended September 30, 2020 and September 30, 2019. All intercompany balances and transactions have been eliminated in consolidation. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2020 (the “Annual Report”). Operating results for the interim periods are not necessarily indicative of the results that may be expected for the full year. Certain prior year amounts in the condensed consolidated financial statements have been reclassified to conform to the current year presentation. Change in filing status The Company is currently an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012. Because the market value of the Company's common stock held by non-affiliates exceeded $700 million as of September 30, 2020, commencing April 1, 2021, the Company will be a large accelerated filer and, accordingly, will no longer qualify as an emerging growth company. Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Segment reporting Operating segments are components of an enterprise for which separate financial information is available that is evaluated by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Utilizing these criteria, the Company manages its business on the basis of one operating segment and one reportable segment. It is impracticable for the Company to provide revenue by product line. Significant accounting policies Business combinations The purchase price of a business acquisition is allocated to the assets acquired and liabilities assumed based upon their estimated fair values at the business combination date. The excess of purchase price over the fair value of assets acquired and liabilities assumed is recorded as goodwill. Determining fair value of identifiable assets, particularly intangibles, and liabilities acquired also requires the Company to make estimates, which are based on all available information and in some cases assumptions with respect to the timing and amount of future revenues and expenses associated with an asset. Unanticipated events or circumstances may occur that could affect the accuracy of the Company's fair value estimates, and under different assumptions, the resulting valuations could be materially different. Costs that are incurred to complete the business combination, such as legal and other professional fees, are not considered as a part of consideration transferred and are charged to selling, general and administrative expense as they are incurred. The Company made no other material changes in the application of its significant accounting policies that were disclosed in Note 2, “Summary of significant accounting policies,” to the audited consolidated financial statements as of and for the fiscal year ended March 31, 2020 included in the Annual Report. Revenue recognition The Company distributes products both through national and international retailers, as well as direct-to-consumers through its e-commerce channel. The marketing and consumer engagement benefits that the direct-to-consumer channel provides is integral to the Company’s brand and product development strategy and drives sales across channels. As such, the Company views its two primary distribution channels as components of one integrated business, as opposed to discrete revenue streams. The Company sells a variety of beauty products but does not consider them to be meaningfully different revenue streams given similarities in the nature of the products, the target consumer and the innovation and distribution processes. The following table provides disaggregated revenue from contracts with customers by geographical market, as the nature, amount, timing and uncertainty of revenue and cash flows can differ between domestic and international customers (in thousands). Three months ended September 30, Six months ended September 30, Net sales by geographic region: 2020 2019 2020 2019 United States $ 63,655 $ 59,731 $ 121,552 $ 113,511 International 8,695 7,884 15,325 13,868 Total net sales $ 72,350 $ 67,615 $ 136,877 $ 127,379 As of September 30, 2020, other than accounts receivable, the Company had no material contract assets, contract liabilities or deferred contract costs recorded on its condensed consolidated balance sheet. Recent accounting pronouncements The following table provides a brief description of recent accounting pronouncements that could have a material effect on the Company’s financial statements: Recently adopted accounting standards Standard Description Date of adoption Effect on the financial statements or other significant matters ASU 2018-15, Intangibles-Goodwill and Other- Internal-Use Software (Subtopic 350-40) The standard requires customers in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to capitalize as assets or expense as incurred. Certain implementation costs incurred during the application development stage would be deferred and capitalized (e.g., costs of integration with on-premises software, coding, configuration, customization). Other costs incurred during the preliminary project and post-implementation stages would be expensed (e.g., planning the project, training, maintenance after implementation, data conversion). The amendments in the ASU can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. April 1, 2020 The Company adopted ASU 2018-15 prospectively, and the adoption of the standard did not have a material impact on the Company’s consolidated financial statements. |
Acquisitions
Acquisitions | 6 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions On February 24, 2020, the Company, through its wholly owned subsidiary, e.l.f. Cosmetics, Inc., completed its acquisition of W3LL PEOPLE, Inc., a Santa Fe, New Mexico-based privately held, clean beauty company with a mission to create premium quality clean products that help people be well, look well and do well. The purchase price of $25.9 million was in all cash and the total consideration in connection with the acquisition is subject to adjustment based on (i) purchase price adjustment provisions and (ii) indemnification obligations of W3LL PEOPLE, Inc.'s stockholders after the closing of the acquisition. The acquisition has been accounted for as a business combination under the acquisition method and, accordingly, the total purchase price is allocated to the tangible and intangible assets acquired and the liabilities assumed based on their respective fair values on the acquisition date. The purchase price allocation and calculation of residual goodwill was finalized during the quarter ended September 30, 2020. W3LL PEOPLE, Inc.'s results of operations have been included in the Company's consolidated financial statements from the date of acquisition. The following table presents the purchase price allocation recorded in the Company's consolidated balance sheet on acquisition date and upon finalization during the quarter ended September 30, 2020. An incremental adjustment of $0.3 million was recorded to increase contract liabilities and increase goodwill. The adjustment reflects finalization of purchase accounting for facts and circumstances that existed upon the acquisition date as follows (in thousands): Net tangible assets $ 1,978 Goodwill (1) 14,357 Intangible assets 12,340 Net deferred tax liability (2,752) Total purchase price consideration $ 25,923 (1) The goodwill represents the excess value over both tangible and intangible assets acquired and liabilities assumed. The goodwill recognized in this transaction is primarily attributable to expected operational synergies. None of the goodwill is expected to be deductible for tax purposes. Intangible assets Fair Value Estimated Useful Life (in thousands) (in years) Customer relationships - retailers $ 8,800 10 Customer relationships - e-commerce 40 3 Trademarks 3,500 10 Total identified intangible assets $ 12,340 |
Investment in equity securities
Investment in equity securities | 6 Months Ended |
Sep. 30, 2020 | |
Investments, All Other Investments [Abstract] | |
Investment in equity securities | Investment in equity securitiesOn April 14, 2017, the Company invested $2.9 million in a social media analytics company, which is included in investments on its condensed consolidated balance sheets. The Company has elected the measurement alternative for equity investments that do not have readily determinable fair values. The Company did not record an impairment charge on its investment during the three and six months ended September 30, 2020 or 2019, as any identified events or changes in circumstances did not result in an indicator for impairment. Further, there were no observable price changes in orderly transactions for the identical or a similar investment of the same issuer during the three and six months ended September 30, 2020. |
Goodwill and intangible assets
Goodwill and intangible assets | 6 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and intangible assets | Goodwill and intangible assets Information regarding the Company’s goodwill and intangible assets as of September 30, 2020 is as follows (in thousands): Estimated useful life Gross carrying amount Accumulated amortization Net carrying amount Customer relationships – retailers 10 years $ 77,600 $ (46,380) $ 31,220 Customer relationships – e-commerce 3 years 3,940 (3,908) 32 Trademarks 10 years 3,500 (204) 3,296 Total finite-lived intangibles 85,040 (50,492) 34,548 Trademarks Indefinite 63,800 — 63,800 Goodwill 171,620 — 171,620 Total goodwill and other intangibles $ 320,460 $ (50,492) $ 269,968 Information regarding the Company’s goodwill and intangible assets as of March 31, 2020 is as follows (in thousands): Estimated useful life Gross carrying amount Accumulated amortization Net carrying amount Customer relationships – retailers 10 years $ 77,600 $ (42,500) $ 35,100 Customer relationships – e-commerce 3 years 3,940 (3,901) 39 Trademarks 10 years 3,500 (29) 3,471 Total finite-lived intangibles 85,040 (46,430) 38,610 Trademarks Indefinite 63,800 — 63,800 Goodwill 171,321 — 171,321 Total goodwill and other intangibles $ 320,161 $ (46,430) $ 273,731 Information regarding the Company’s goodwill and intangible assets as of September 30, 2019 is as follows (in thousands): Estimated useful life Gross carrying amount Accumulated amortization Net carrying amount Customer relationships – retailers 10 years $ 68,800 $ (38,987) $ 29,813 Customer relationships – e-commerce 3 years 3,900 (3,900) — Total finite-lived intangibles 72,700 (42,887) 29,813 Trademarks Indefinite 63,800 — 63,800 Goodwill 157,264 — 157,264 Total goodwill and other intangibles $ 293,764 $ (42,887) $ 250,877 Amortization expense on finite-lived intangible assets was $2.0 million and $4.1 million in the three and six months ended September 30, 2020, respectively, and $1.7 million and $3.4 million in the three and six months ended September 30, 2019, respectively. Certain trademark assets have been classified as indefinite-lived intangible assets and accordingly, are not subject to amortization. There were no impairments of goodwill or intangible assets recorded in the three and six months ended September 30, 2020 and September 30, 2019. An incremental adjustment $0.3 million of goodwill was recorded in the quarter ended September 30, 2020 as the result of finalization of purchase accounting from the W3LL PEOPLE acquisition. The estimated future amortization expense related to finite-lived intangible assets, assuming no impairment as of September 30, 2020 is as follows (in thousands): Remainder of Fiscal 2021 $ 4,062 2022 8,123 2023 8,122 2024 6,963 2025 1,230 Thereafter 6,048 Total $ 34,548 |
Accrued expenses and other curr
Accrued expenses and other current liabilities | 6 Months Ended |
Sep. 30, 2020 | |
Payables and Accruals [Abstract] | |
Accrued expenses and other current liabilities | Accrued expenses and other current liabilities Accrued expenses and other current liabilities as of September 30, 2020, March 31, 2020 and September 30, 2019 consisted of the following (in thousands): September 30, 2020 March 31, 2020 September 30, 2019 Accrued expenses $ 14,465 $ 12,518 $ 10,646 Current portion of operating lease liabilities 3,374 3,083 2,727 Accrued compensation 6,277 9,542 5,390 Other current liabilities 2,148 1,022 1,661 Accrued expenses and other current liabilities $ 26,264 $ 26,165 $ 20,424 |
Debt
Debt | 6 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company’s outstanding debt as of September 30, 2020, March 31, 2020 and September 30, 2019 consisted of the following (in thousands): September 30, 2020 March 31, 2020 September 30, 2019 Term loan (1) $ 130,537 $ 135,853 $ 140,543 Finance lease obligations 2,611 3,012 3,402 Total debt (2) 133,148 138,865 143,945 Less: debt issuance costs (352) (209) (258) Total debt, net of issuance costs 132,796 138,656 143,687 Less: current portion (14,219) (12,568) (11,310) Long-term portion of debt $ 118,577 $ 126,088 $ 132,377 (1) See Note 10, “Debt,” to the consolidated financial statements included in the Annual Report for details regarding the Senior Secured Credit Agreement (the "Credit Agreement”). As of September 30, 2020, the Company was in compliance with all applicable financial covenants under the Credit Agreement. (2) The gross carrying amounts of the Company’s long-term debt, before reduction of the debt issuance costs, and finance lease obligations approximate their fair values, based on Level 2 inputs (quoted prices for similar assets and liabilities in active markets or inputs that are observable), as the stated rates approximate market rates for loans with similar terms. The Company did not transfer any liabilities measured at fair value on a recurring basis to or from Level 2 for any of the periods presented. April 2020 Credit Agreement Amendment On April 8, 2020, the Company entered into a Third Amendment to Credit Agreement (the "Amendment"), amending the Credit Agreement to modify the Company’s quarterly maintenance covenants, and to add interest rates with respect to borrowings associated with the added increased maximum permitted total net leverage ratios. Pursuant to the Amendment, borrowings under both the $50.0 million revolving line of credit (the “Revolving Credit Facility”) and the $165.0 million term loan (the “Term Loan Facility”) bear interest, at the Company's option, at either a rate per annum equal to (i) a rate per annum equal to an adjusted LIBOR rate determined by reference to the cost of funds for U.S. dollar deposits for the applicable interest period (subject to a minimum floor of 0%) plus an applicable margin ranging from 1.50% to 3.25% based on the Company's consolidated total net leverage ratio or (ii) a floating base rate plus an applicable margin ranging from 0.50% to 2.25% based on the Company's consolidated total net leverage ratio. The interest rate as of September 30, 2020 for the Term Loan Facility was approximately 1.7%. All amounts under the Revolving Credit Facility are available for draw until the maturity date on August 25, 2022. The Revolving Credit Facility is collateralized by substantially all of the Company's assets and requires payment of an unused fee ranging from 0.35% to 0.25% (based on the Company's consolidated total net leverage ratio) times the average daily amount of unutilized commitments under the Revolving Credit Facility. The Revolving Credit Facility also provides for sub-facilities in the form of a $7.0 million letter of credit and a $5.0 million swing line loan; however, all amounts under the Revolving Credit |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and contingencies Legal contingencies From time to time, the Company is involved in legal proceedings, claims and litigation arising in the ordinary course of business. The Company is not currently a party to any matters that management expects will have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. |
Stock-based compensation
Stock-based compensation | 6 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-based compensation | Stock-based compensation Service-based vesting stock options The following table summarizes the activity for options that vest solely based upon the satisfaction of a service condition for the six months ended September 30, 2020: Shares subject to options Weighted-average exercise price Weighted-average remaining Aggregate intrinsic Balance as of March 31, 2020 1,999,553 $ 13.17 Exercised (136,769) 3.32 Canceled or forfeited (14,641) 23.39 Balance as of September 30, 2020 1,848,143 $ 13.82 6.4 $ 8,961 Exercisable, September 30, 2020 1,354,782 $ 13.52 5.8 $ 6,992 The aggregate intrinsic value is calculated as the difference between the exercise price of the options and the Company's closing stock price of $18.37, as reported on the New York Stock Exchange on September 30, 2020. The Company recognized stock-based compensation cost related to service-based vesting options of $0.5 million and $1.1 million in the three and six months ended September 30, 2020, respectively, and $0.6 million and $1.2 million in the three and six months ended September 30, 2019, respectively. As of September 30, 2020, there was $2.1 million of total unrecognized stock-based compensation cost related to unvested service-based stock options, which is expected to be recognized over the remaining weighted-average period of 2.3 years. All stock-based compensation cost is recorded in selling, general and administrative expenses. Performance-based and market-based vesting stock options The following table summarizes the activity for stock options that vest based upon the satisfaction of performance- or market-based vesting conditions for the six months ended September 30, 2020: Shares subject to options Weighted-average exercise price Weighted-average remaining Aggregate intrinsic Balance as of March 31, 2020 1,252,932 $ 7.97 Exercised (27,600) 1.84 Balance as of September 30, 2020 1,225,332 $ 8.07 4.5 $ 15,159 Exercisable, September 30, 2020 925,332 $ 1.99 3.9 $ 15,159 The aggregate intrinsic value is calculated as the difference between the exercise price of the options and the Company's closing stock price of $18.37, as reported on the New York Stock Exchange on September 30, 2020. As of September 30, 2020 and September 30, 2019, there was no unrecognized compensation cost related to stock options with performance-based and market-based vesting conditions. Restricted stock and RSUs The following table summarizes the activities for restricted stock awards (“RSAs”) and restricted stock units (“RSUs”) for the six months ended September 30, 2020: RSUs and shares of restricted stock outstanding Weighted-average grant date fair value Balance as of March 31, 2020 2,311,768 $ 12.86 Granted 1,108,344 16.98 Vested (274,918) 14.15 Canceled or forfeited (150,819) 14.32 Balance as of September 30, 2020 2,994,375 $ 14.19 As of September 30, 2020, there were 1,658,396 unvested shares subject to RSAs outstanding. The Company recognized stock-based compensation cost related to RSAs and RSUs of $4.9 million and $8.9 million in the three and six months ended September 30, 2020, respectively, and $3.4 million and $6.7 million in the three and six months ended September 30, 2019, respectively. As of September 30, 2020, there was $32.8 million of total unrecognized stock-based compensation cost related to unvested RSAs and RSUs, which is expected to be recognized over a weighted-average period of 2.4 years. |
Restructuring and other related
Restructuring and other related costs | 6 Months Ended |
Sep. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and other related costs | Restructuring and other related costs In February 2019, the Company closed all 22 e.l.f. retail stores and implemented a workforce reduction of employees that operated and managed the e.l.f. retail stores (the “Restructuring Plan”). The following table presents the restructuring (income) expenses incurred for the three and six months ended September 30, 2020 and September 30, 2019, respectively (in thousands) in connection with the Restructuring Plan: Three months ended September 30, Six months ended September 30, 2020 2019 2020 2019 Gain from extinguishment of lease liabilities $ — $ (5,096) $ — $ (7,733) Other costs, including other asset write-offs — 898 — 1,743 Total $ — $ (4,198) $ — $ (5,990) The gain from extinguishment of lease liabilities represents the difference between the aggregate operating lease liability and the aggregate cash payment incurred to extinguish such liability. The majority of the other costs incurred during the three and six months ended September 30, 2019 are legal fees related to these extinguishments. As of March 31, 2020, the Company had settled all outstanding lease liabilities related to its e.l.f. retail store closures and does not expect to incur additional costs associated with the Restructuring Plan. Accordingly, there were no restructuring expenses incurred during the three and six months ended September 30, 2020. Liabilities related to the Restructuring Plan are reported within accrued expenses and other current liabilities in the accompanying condensed consolidated balance sheets. There were no costs incurred or cash disbursements made during the three and six months ended September 30, 2020. The following table presents a roll-forward of the Company's restructuring liability for the three and six months ended September 30, 2019 (in thousands): Employee severance and related expenses Other costs Total June 30, 2019 $ — $ 318 $ 318 Costs incurred — 898 898 Cash disbursements — (373) (373) Other adjustments — (6) (6) September 30, 2019 $ — $ 837 $ 837 Employee severance and related expenses Other costs Total March 31, 2019 $ 96 $ 675 $ 771 Costs incurred (22) 1,765 1,743 Cash disbursements (74) (1,466) (1,540) Other adjustments — (137) (137) September 30, 2019 $ — $ 837 $ 837 Outstanding lease liabilities are not included in the table above, as those liabilities were established upon adoption of ASC 842, not in connection with the Restructuring Plan. |
Repurchase of common stock
Repurchase of common stock | 6 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Repurchase of common stock | Repurchase of common stock On May 8, 2019, the Company's board of directors authorized a share repurchase program to acquire up to $25.0 million of the Company’s common stock (the “Share Repurchase Program”). Purchases under the Share Repurchase Program may be made from time to time through a variety of methods, which may include open market purchases, privately negotiated transactions, block trades, accelerated share repurchase transactions, or by any combination of such methods. The timing and amount of any repurchases pursuant to the Share Repurchase Program will be determined based on market conditions, share price and other factors. The Share Repurchase Program does not require the Company to repurchase any specific number of shares of its common stock, and may be modified, suspended or terminated at any time without notice. There is no guarantee that any additional shares will be purchased under the Share Repurchase Program and such shares are intended to be retired after purchase. The Company did not repurchase any shares during the three and six months ended September 30, 2020. A total of $17.1 million remains available for purchase under the Share Repurchase Program as of September 30, 2020. |
Net income per share
Net income per share | 6 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net income per share | Net income per share The Company computes basic net income per share using the weighted-average number of shares of common stock outstanding. Diluted net income per share amounts are calculated using the treasury stock method for equity-based compensation awards. The following is a reconciliation of the numerator and denominator in the basic and diluted net income per common share computations (in thousands, except share and per share data): Three months ended September 30, Six months ended September 30, 2020 2019 2020 2019 Numerator: Net income $ 447 $ 6,517 $ 1,959 $ 10,223 Denominator: Weighted-average common shares outstanding - basic 49,147,366 48,419,845 49,036,519 48,383,095 Dilutive common equivalent shares from equity awards 2,601,071 2,520,070 2,308,278 2,245,609 Weighted-average common shares outstanding - diluted 51,748,437 50,939,915 51,344,797 50,628,704 Net income per share: Basic $ 0.01 $ 0.13 $ 0.04 $ 0.21 Diluted $ 0.01 $ 0.13 $ 0.04 $ 0.20 Weighted-average anti-dilutive shares from outstanding equity awards excluded from diluted earnings per share 857,698 1,944,662 1,712,824 2,417,982 |
Leases
Leases | 6 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | Leases The Company leases warehouses, distribution centers, office space, retail space and equipment. Prior to the Restructuring Plan, the Company also leased 22 e.l.f. retail store locations. The majority of the Company's leases include one or more options to renew, with renewal terms that can extend the lease term for up to five years. The exercise of lease renewal options is at the Company's sole discretion and such renewal options are included in the lease term if they are reasonably certain to be exercised. Certain leases also include options to purchase the leased asset. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Most of the Company's equipment leases are finance leases of assets used to operate its distribution centers in Ontario, California and Columbus, Ohio. Significant judgment is required to determine whether commercial contracts contain a lease for purposes of ASC 842. The discount rate used in measuring lease liabilities is generally based on the interest rate on the Company’s revolving line of credit, assuming sufficient unused capacity exists at the time the lease liability is measured. A reconciliation of the balance sheet line items that were impacted or created as a result of the Company's adoption of ASC 842 as of September 30, 2020 and September 30, 2019 is as follows (in thousands): Classification September 30, 2020 September 30, 2019 Assets Operating lease assets (a) Other assets $ 21,548 $ 8,080 Finance lease assets (b) Other assets 1,599 2,591 Total leased assets $ 23,147 $ 10,671 Liabilities Current Operating (a) Accrued expenses and other current liabilities $ 3,374 $ 2,727 Finance Current portion of long-term debt and finance lease obligations 812 791 Noncurrent Operating (a) Long-term operating lease obligations 19,185 5,846 Finance Long-term debt and finance lease obligations 1,799 2,611 Total lease liabilities $ 25,170 $ 11,975 _____________________ (a) In accordance with ASC 842, $15.7 million of ROU assets related to operating leases were derecognized in the three months ended March 31, 2019 in connection with the Restructuring Plan. Pursuant to ASC 842, each related lease liability is derecognized only after the Company is released from that liability. See Note 10, “Restructuring and other related costs” for further details on the Restructuring Plan and the gain recorded on lease liabilities derecognized in the three and six months ended September 30, 2019. (b) Finance leases are recorded net of accumulated amortization of $3.4 million and $2.4 million as of September 30, 2020 and September 30, 2019, respectively. For the three and six months ended September 30, 2020 and September 30, 2019, the components of operating and finance lease costs were as follows (in thousands): Three months ended September 30, Six months ended September 30, Classification 2020 2019 2020 2019 Operating lease cost Selling, general and administrative (“SG&A”) expenses $ 1,046 $ 755 $ 2,126 $ 1,384 Gain from extinguishment of lease liabilities Restructuring income — (5,096) — (7,733) Finance lease cost Amortization of leased assets SG&A expenses 247 249 495 499 Interest on lease liabilities Interest expense, net 36 46 74 94 Total lease cost (gain) $ 1,329 $ (4,046) $ 2,695 $ (5,756) As of September 30, 2020, the aggregate future minimum lease payments under non-cancellable leases presented in accordance with ASC 842 are as follows (in thousands): Operating Finance Total Remainder of Fiscal 2021 $ 1,896 $ 475 $ 2,371 2022 4,239 908 5,147 2023 3,973 1,208 5,181 2024 4,073 234 4,307 2025 3,673 — 3,673 Thereafter 7,063 — 7,063 Total lease payments 24,917 2,825 $ 27,742 Less: Interest 2,358 214 Present value of lease liabilities $ 22,559 $ 2,611 For leases commencing prior to January 1, 2019, minimum lease payments exclude payments to landlords for real estate taxes and common area maintenance. These payments can be either fixed or variable, depending on the lease. As of September 30, 2020 and September 30, 2019, the weighted-average remaining lease term (in years) and discount rate were as follows: September 30, 2020 September 30, 2019 Weighted-average remaining lease term Operating leases 6.5 years 3.5 years Finance leases 2.8 years 3.8 years Weighted-average discount rate Operating leases 2.8 % 4.6 % Finance leases 5.2 % 5.2 % |
Leases | Leases The Company leases warehouses, distribution centers, office space, retail space and equipment. Prior to the Restructuring Plan, the Company also leased 22 e.l.f. retail store locations. The majority of the Company's leases include one or more options to renew, with renewal terms that can extend the lease term for up to five years. The exercise of lease renewal options is at the Company's sole discretion and such renewal options are included in the lease term if they are reasonably certain to be exercised. Certain leases also include options to purchase the leased asset. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Most of the Company's equipment leases are finance leases of assets used to operate its distribution centers in Ontario, California and Columbus, Ohio. Significant judgment is required to determine whether commercial contracts contain a lease for purposes of ASC 842. The discount rate used in measuring lease liabilities is generally based on the interest rate on the Company’s revolving line of credit, assuming sufficient unused capacity exists at the time the lease liability is measured. A reconciliation of the balance sheet line items that were impacted or created as a result of the Company's adoption of ASC 842 as of September 30, 2020 and September 30, 2019 is as follows (in thousands): Classification September 30, 2020 September 30, 2019 Assets Operating lease assets (a) Other assets $ 21,548 $ 8,080 Finance lease assets (b) Other assets 1,599 2,591 Total leased assets $ 23,147 $ 10,671 Liabilities Current Operating (a) Accrued expenses and other current liabilities $ 3,374 $ 2,727 Finance Current portion of long-term debt and finance lease obligations 812 791 Noncurrent Operating (a) Long-term operating lease obligations 19,185 5,846 Finance Long-term debt and finance lease obligations 1,799 2,611 Total lease liabilities $ 25,170 $ 11,975 _____________________ (a) In accordance with ASC 842, $15.7 million of ROU assets related to operating leases were derecognized in the three months ended March 31, 2019 in connection with the Restructuring Plan. Pursuant to ASC 842, each related lease liability is derecognized only after the Company is released from that liability. See Note 10, “Restructuring and other related costs” for further details on the Restructuring Plan and the gain recorded on lease liabilities derecognized in the three and six months ended September 30, 2019. (b) Finance leases are recorded net of accumulated amortization of $3.4 million and $2.4 million as of September 30, 2020 and September 30, 2019, respectively. For the three and six months ended September 30, 2020 and September 30, 2019, the components of operating and finance lease costs were as follows (in thousands): Three months ended September 30, Six months ended September 30, Classification 2020 2019 2020 2019 Operating lease cost Selling, general and administrative (“SG&A”) expenses $ 1,046 $ 755 $ 2,126 $ 1,384 Gain from extinguishment of lease liabilities Restructuring income — (5,096) — (7,733) Finance lease cost Amortization of leased assets SG&A expenses 247 249 495 499 Interest on lease liabilities Interest expense, net 36 46 74 94 Total lease cost (gain) $ 1,329 $ (4,046) $ 2,695 $ (5,756) As of September 30, 2020, the aggregate future minimum lease payments under non-cancellable leases presented in accordance with ASC 842 are as follows (in thousands): Operating Finance Total Remainder of Fiscal 2021 $ 1,896 $ 475 $ 2,371 2022 4,239 908 5,147 2023 3,973 1,208 5,181 2024 4,073 234 4,307 2025 3,673 — 3,673 Thereafter 7,063 — 7,063 Total lease payments 24,917 2,825 $ 27,742 Less: Interest 2,358 214 Present value of lease liabilities $ 22,559 $ 2,611 For leases commencing prior to January 1, 2019, minimum lease payments exclude payments to landlords for real estate taxes and common area maintenance. These payments can be either fixed or variable, depending on the lease. As of September 30, 2020 and September 30, 2019, the weighted-average remaining lease term (in years) and discount rate were as follows: September 30, 2020 September 30, 2019 Weighted-average remaining lease term Operating leases 6.5 years 3.5 years Finance leases 2.8 years 3.8 years Weighted-average discount rate Operating leases 2.8 % 4.6 % Finance leases 5.2 % 5.2 % |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 6 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation This report reflects the Company's second quarter of the fiscal year ending March 31, 2021, covering the period from July 1, 2020 to September 30, 2020 for the three months ended September 30, 2020 and the period from April 1, 2020 to September 30, 2020 for the six months ended September 30, 2020. The accompanying unaudited condensed consolidated financial statements and related notes have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). In the opinion of the Company, these interim financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of September 30, 2020, March 31, 2020 and September 30, 2019, and its results of operations and stockholders' equity for the three and six months ended September 30, 2020 and September 30, 2019 and its cash flows for the six months ended September 30, 2020 and September 30, 2019. All intercompany balances and transactions have been eliminated in consolidation. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2020 (the “Annual Report”). Operating results for the interim periods are not necessarily indicative of the results that may be expected for the full year. Certain prior year amounts in the condensed consolidated financial statements have been reclassified to conform to the current year presentation. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. |
Segment reporting | Segment reporting Operating segments are components of an enterprise for which separate financial information is available that is evaluated by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Utilizing these criteria, the Company manages its business on the basis of one operating segment and one reportable segment. It is impracticable for the Company to provide revenue by product line. |
Business combinations | Business combinations The purchase price of a business acquisition is allocated to the assets acquired and liabilities assumed based upon their estimated fair values at the business combination date. The excess of purchase price over the fair value of assets acquired and liabilities assumed is recorded as goodwill. Determining fair value of identifiable assets, particularly intangibles, and liabilities acquired also requires the Company to make estimates, which are based on all available information and in some cases assumptions with respect to the timing and amount of future revenues and expenses associated with an asset. Unanticipated events or circumstances may occur that could affect the accuracy of the Company's fair value estimates, and under different assumptions, the resulting valuations could be materially different. Costs that are incurred to complete the business combination, such as legal and other professional fees, are not considered as a part of consideration transferred and are charged to selling, general and administrative expense as they are incurred. |
Revenue recognition | Revenue recognition The Company distributes products both through national and international retailers, as well as direct-to-consumers through its e-commerce channel. The marketing and consumer engagement benefits that the direct-to-consumer channel provides is integral to the Company’s brand and product development strategy and drives sales across channels. As such, the Company views its two primary distribution channels as components of one integrated business, as opposed to discrete revenue streams. The Company sells a variety of beauty products but does not consider them to be meaningfully different revenue streams given similarities in the nature of the products, the target consumer and the innovation and distribution processes. |
Recent accounting pronouncements | Recent accounting pronouncements The following table provides a brief description of recent accounting pronouncements that could have a material effect on the Company’s financial statements: Recently adopted accounting standards Standard Description Date of adoption Effect on the financial statements or other significant matters ASU 2018-15, Intangibles-Goodwill and Other- Internal-Use Software (Subtopic 350-40) The standard requires customers in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to capitalize as assets or expense as incurred. Certain implementation costs incurred during the application development stage would be deferred and capitalized (e.g., costs of integration with on-premises software, coding, configuration, customization). Other costs incurred during the preliminary project and post-implementation stages would be expensed (e.g., planning the project, training, maintenance after implementation, data conversion). The amendments in the ASU can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. April 1, 2020 The Company adopted ASU 2018-15 prospectively, and the adoption of the standard did not have a material impact on the Company’s consolidated financial statements. |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Disaggregation of Revenue | The following table provides disaggregated revenue from contracts with customers by geographical market, as the nature, amount, timing and uncertainty of revenue and cash flows can differ between domestic and international customers (in thousands). Three months ended September 30, Six months ended September 30, Net sales by geographic region: 2020 2019 2020 2019 United States $ 63,655 $ 59,731 $ 121,552 $ 113,511 International 8,695 7,884 15,325 13,868 Total net sales $ 72,350 $ 67,615 $ 136,877 $ 127,379 |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Schedule of Purchase Price Allocation | The following table presents the purchase price allocation recorded in the Company's consolidated balance sheet on acquisition date and upon finalization during the quarter ended September 30, 2020. An incremental adjustment of $0.3 million was recorded to increase contract liabilities and increase goodwill. The adjustment reflects finalization of purchase accounting for facts and circumstances that existed upon the acquisition date as follows (in thousands): Net tangible assets $ 1,978 Goodwill (1) 14,357 Intangible assets 12,340 Net deferred tax liability (2,752) Total purchase price consideration $ 25,923 (1) The goodwill represents the excess value over both tangible and intangible assets acquired and liabilities assumed. The goodwill recognized in this transaction is primarily attributable to expected operational synergies. None of the goodwill is expected to be deductible for tax purposes. Intangible assets Fair Value Estimated Useful Life (in thousands) (in years) Customer relationships - retailers $ 8,800 10 Customer relationships - e-commerce 40 3 Trademarks 3,500 10 Total identified intangible assets $ 12,340 |
Goodwill and intangible assets
Goodwill and intangible assets (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Information Regarding Company's Goodwill and Intangible Assets | Information regarding the Company’s goodwill and intangible assets as of September 30, 2020 is as follows (in thousands): Estimated useful life Gross carrying amount Accumulated amortization Net carrying amount Customer relationships – retailers 10 years $ 77,600 $ (46,380) $ 31,220 Customer relationships – e-commerce 3 years 3,940 (3,908) 32 Trademarks 10 years 3,500 (204) 3,296 Total finite-lived intangibles 85,040 (50,492) 34,548 Trademarks Indefinite 63,800 — 63,800 Goodwill 171,620 — 171,620 Total goodwill and other intangibles $ 320,460 $ (50,492) $ 269,968 Information regarding the Company’s goodwill and intangible assets as of March 31, 2020 is as follows (in thousands): Estimated useful life Gross carrying amount Accumulated amortization Net carrying amount Customer relationships – retailers 10 years $ 77,600 $ (42,500) $ 35,100 Customer relationships – e-commerce 3 years 3,940 (3,901) 39 Trademarks 10 years 3,500 (29) 3,471 Total finite-lived intangibles 85,040 (46,430) 38,610 Trademarks Indefinite 63,800 — 63,800 Goodwill 171,321 — 171,321 Total goodwill and other intangibles $ 320,161 $ (46,430) $ 273,731 Information regarding the Company’s goodwill and intangible assets as of September 30, 2019 is as follows (in thousands): Estimated useful life Gross carrying amount Accumulated amortization Net carrying amount Customer relationships – retailers 10 years $ 68,800 $ (38,987) $ 29,813 Customer relationships – e-commerce 3 years 3,900 (3,900) — Total finite-lived intangibles 72,700 (42,887) 29,813 Trademarks Indefinite 63,800 — 63,800 Goodwill 157,264 — 157,264 Total goodwill and other intangibles $ 293,764 $ (42,887) $ 250,877 |
Future Amortization Expense for Intangible Assets | The estimated future amortization expense related to finite-lived intangible assets, assuming no impairment as of September 30, 2020 is as follows (in thousands): Remainder of Fiscal 2021 $ 4,062 2022 8,123 2023 8,122 2024 6,963 2025 1,230 Thereafter 6,048 Total $ 34,548 |
Accrued expenses and other cu_2
Accrued expenses and other current liabilities (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities as of September 30, 2020, March 31, 2020 and September 30, 2019 consisted of the following (in thousands): September 30, 2020 March 31, 2020 September 30, 2019 Accrued expenses $ 14,465 $ 12,518 $ 10,646 Current portion of operating lease liabilities 3,374 3,083 2,727 Accrued compensation 6,277 9,542 5,390 Other current liabilities 2,148 1,022 1,661 Accrued expenses and other current liabilities $ 26,264 $ 26,165 $ 20,424 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | The Company’s outstanding debt as of September 30, 2020, March 31, 2020 and September 30, 2019 consisted of the following (in thousands): September 30, 2020 March 31, 2020 September 30, 2019 Term loan (1) $ 130,537 $ 135,853 $ 140,543 Finance lease obligations 2,611 3,012 3,402 Total debt (2) 133,148 138,865 143,945 Less: debt issuance costs (352) (209) (258) Total debt, net of issuance costs 132,796 138,656 143,687 Less: current portion (14,219) (12,568) (11,310) Long-term portion of debt $ 118,577 $ 126,088 $ 132,377 (1) See Note 10, “Debt,” to the consolidated financial statements included in the Annual Report for details regarding the Senior Secured Credit Agreement (the "Credit Agreement”). As of September 30, 2020, the Company was in compliance with all applicable financial covenants under the Credit Agreement. (2) The gross carrying amounts of the Company’s long-term debt, before reduction of the debt issuance costs, and finance lease obligations approximate their fair values, based on Level 2 inputs (quoted prices for similar assets and liabilities in active markets or inputs that are observable), as the stated rates approximate market rates for loans with similar terms. The Company did not transfer any liabilities measured at fair value on a recurring basis to or from Level 2 for any of the periods presented. |
Stock-based compensation (Table
Stock-based compensation (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock Option Activity and Related Information | The following table summarizes the activity for options that vest solely based upon the satisfaction of a service condition for the six months ended September 30, 2020: Shares subject to options Weighted-average exercise price Weighted-average remaining Aggregate intrinsic Balance as of March 31, 2020 1,999,553 $ 13.17 Exercised (136,769) 3.32 Canceled or forfeited (14,641) 23.39 Balance as of September 30, 2020 1,848,143 $ 13.82 6.4 $ 8,961 Exercisable, September 30, 2020 1,354,782 $ 13.52 5.8 $ 6,992 The following table summarizes the activity for stock options that vest based upon the satisfaction of performance- or market-based vesting conditions for the six months ended September 30, 2020: Shares subject to options Weighted-average exercise price Weighted-average remaining Aggregate intrinsic Balance as of March 31, 2020 1,252,932 $ 7.97 Exercised (27,600) 1.84 Balance as of September 30, 2020 1,225,332 $ 8.07 4.5 $ 15,159 Exercisable, September 30, 2020 925,332 $ 1.99 3.9 $ 15,159 |
Summary of Activities for Restricted Stock Awards ("RSAs") and Restricted Stock Units ("RSUs") | The following table summarizes the activities for restricted stock awards (“RSAs”) and restricted stock units (“RSUs”) for the six months ended September 30, 2020: RSUs and shares of restricted stock outstanding Weighted-average grant date fair value Balance as of March 31, 2020 2,311,768 $ 12.86 Granted 1,108,344 16.98 Vested (274,918) 14.15 Canceled or forfeited (150,819) 14.32 Balance as of September 30, 2020 2,994,375 $ 14.19 |
Restructuring and other relat_2
Restructuring and other related costs (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Expenses | The following table presents the restructuring (income) expenses incurred for the three and six months ended September 30, 2020 and September 30, 2019, respectively (in thousands) in connection with the Restructuring Plan: Three months ended September 30, Six months ended September 30, 2020 2019 2020 2019 Gain from extinguishment of lease liabilities $ — $ (5,096) $ — $ (7,733) Other costs, including other asset write-offs — 898 — 1,743 Total $ — $ (4,198) $ — $ (5,990) |
Restructuring Related Liabilities | The following table presents a roll-forward of the Company's restructuring liability for the three and six months ended September 30, 2019 (in thousands): Employee severance and related expenses Other costs Total June 30, 2019 $ — $ 318 $ 318 Costs incurred — 898 898 Cash disbursements — (373) (373) Other adjustments — (6) (6) September 30, 2019 $ — $ 837 $ 837 Employee severance and related expenses Other costs Total March 31, 2019 $ 96 $ 675 $ 771 Costs incurred (22) 1,765 1,743 Cash disbursements (74) (1,466) (1,540) Other adjustments — (137) (137) September 30, 2019 $ — $ 837 $ 837 |
Net income per share (Tables)
Net income per share (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Reconciliation of Numerator and Denominator in Basic and Diluted Net Income (Loss) Per Common Share Computations | The following is a reconciliation of the numerator and denominator in the basic and diluted net income per common share computations (in thousands, except share and per share data): Three months ended September 30, Six months ended September 30, 2020 2019 2020 2019 Numerator: Net income $ 447 $ 6,517 $ 1,959 $ 10,223 Denominator: Weighted-average common shares outstanding - basic 49,147,366 48,419,845 49,036,519 48,383,095 Dilutive common equivalent shares from equity awards 2,601,071 2,520,070 2,308,278 2,245,609 Weighted-average common shares outstanding - diluted 51,748,437 50,939,915 51,344,797 50,628,704 Net income per share: Basic $ 0.01 $ 0.13 $ 0.04 $ 0.21 Diluted $ 0.01 $ 0.13 $ 0.04 $ 0.20 Weighted-average anti-dilutive shares from outstanding equity awards excluded from diluted earnings per share 857,698 1,944,662 1,712,824 2,417,982 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Balance Sheet Information | A reconciliation of the balance sheet line items that were impacted or created as a result of the Company's adoption of ASC 842 as of September 30, 2020 and September 30, 2019 is as follows (in thousands): Classification September 30, 2020 September 30, 2019 Assets Operating lease assets (a) Other assets $ 21,548 $ 8,080 Finance lease assets (b) Other assets 1,599 2,591 Total leased assets $ 23,147 $ 10,671 Liabilities Current Operating (a) Accrued expenses and other current liabilities $ 3,374 $ 2,727 Finance Current portion of long-term debt and finance lease obligations 812 791 Noncurrent Operating (a) Long-term operating lease obligations 19,185 5,846 Finance Long-term debt and finance lease obligations 1,799 2,611 Total lease liabilities $ 25,170 $ 11,975 _____________________ (a) In accordance with ASC 842, $15.7 million of ROU assets related to operating leases were derecognized in the three months ended March 31, 2019 in connection with the Restructuring Plan. Pursuant to ASC 842, each related lease liability is derecognized only after the Company is released from that liability. See Note 10, “Restructuring and other related costs” for further details on the Restructuring Plan and the gain recorded on lease liabilities derecognized in the three and six months ended September 30, 2019. (b) Finance leases are recorded net of accumulated amortization of $3.4 million and $2.4 million as of September 30, 2020 and September 30, 2019, respectively. As of September 30, 2020 and September 30, 2019, the weighted-average remaining lease term (in years) and discount rate were as follows: September 30, 2020 September 30, 2019 Weighted-average remaining lease term Operating leases 6.5 years 3.5 years Finance leases 2.8 years 3.8 years Weighted-average discount rate Operating leases 2.8 % 4.6 % Finance leases 5.2 % 5.2 % |
Components of Lease Expense | For the three and six months ended September 30, 2020 and September 30, 2019, the components of operating and finance lease costs were as follows (in thousands): Three months ended September 30, Six months ended September 30, Classification 2020 2019 2020 2019 Operating lease cost Selling, general and administrative (“SG&A”) expenses $ 1,046 $ 755 $ 2,126 $ 1,384 Gain from extinguishment of lease liabilities Restructuring income — (5,096) — (7,733) Finance lease cost Amortization of leased assets SG&A expenses 247 249 495 499 Interest on lease liabilities Interest expense, net 36 46 74 94 Total lease cost (gain) $ 1,329 $ (4,046) $ 2,695 $ (5,756) |
Maturities of Operating Lease Liabilities | As of September 30, 2020, the aggregate future minimum lease payments under non-cancellable leases presented in accordance with ASC 842 are as follows (in thousands): Operating Finance Total Remainder of Fiscal 2021 $ 1,896 $ 475 $ 2,371 2022 4,239 908 5,147 2023 3,973 1,208 5,181 2024 4,073 234 4,307 2025 3,673 — 3,673 Thereafter 7,063 — 7,063 Total lease payments 24,917 2,825 $ 27,742 Less: Interest 2,358 214 Present value of lease liabilities $ 22,559 $ 2,611 |
Maturities of Finance Lease Liabilities | As of September 30, 2020, the aggregate future minimum lease payments under non-cancellable leases presented in accordance with ASC 842 are as follows (in thousands): Operating Finance Total Remainder of Fiscal 2021 $ 1,896 $ 475 $ 2,371 2022 4,239 908 5,147 2023 3,973 1,208 5,181 2024 4,073 234 4,307 2025 3,673 — 3,673 Thereafter 7,063 — 7,063 Total lease payments 24,917 2,825 $ 27,742 Less: Interest 2,358 214 Present value of lease liabilities $ 22,559 $ 2,611 |
Summary of significant accoun_4
Summary of significant accounting policies - Additional Information (Details) | 6 Months Ended |
Sep. 30, 2020segment | |
Accounting Policies [Abstract] | |
Number of operating segments | 1 |
Number of reporting segments | 1 |
Summary of significant accoun_5
Summary of significant accounting policies - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Total net sales | $ 72,350 | $ 67,615 | $ 136,877 | $ 127,379 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 63,655 | 59,731 | 121,552 | 113,511 |
International | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | $ 8,695 | $ 7,884 | $ 15,325 | $ 13,868 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Thousands | Feb. 24, 2020 | Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Mar. 31, 2020 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||
Goodwill | $ 171,620 | $ 171,620 | $ 157,264 | $ 171,321 | |
W3LL People | |||||
Business Acquisition [Line Items] | |||||
Purchase price | $ 25,900 | ||||
Goodwill adjustment | 300 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||
Net tangible assets | 1,978 | 1,978 | |||
Goodwill | 14,357 | 14,357 | |||
Intangible assets | 12,340 | 12,340 | |||
Net deferred tax liability | (2,752) | (2,752) | |||
Total purchase price consideration | 25,923 | 25,923 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||
Total identified intangible assets | 12,340 | 12,340 | |||
Customer relationships - retailers | W3LL People | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||
Intangible assets | 8,800 | 8,800 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||
Total identified intangible assets | 8,800 | $ 8,800 | |||
Estimated useful life | 10 years | ||||
Customer relationships - e-commerce | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||
Estimated useful life | 3 years | 3 years | 3 years | ||
Customer relationships - e-commerce | W3LL People | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||
Intangible assets | 40 | $ 40 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||
Total identified intangible assets | 40 | $ 40 | |||
Estimated useful life | 3 years | ||||
Trademarks | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||
Estimated useful life | 10 years | 10 years | |||
Trademarks | W3LL People | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||
Intangible assets | 3,500 | $ 3,500 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | |||||
Total identified intangible assets | $ 3,500 | $ 3,500 | |||
Estimated useful life | 10 years |
Investment in equity securiti_2
Investment in equity securities - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Apr. 14, 2017 | |
Debt and Equity Securities, FV-NI [Line Items] | |||||
Impairment charges on investment | $ 0 | $ 0 | $ 0 | $ 0 | |
Social Media Analytics Company | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Amount invested in minority equity investment | $ 2,900,000 |
Goodwill and intangible asset_2
Goodwill and intangible assets - Information Regarding Company's Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | Mar. 31, 2020 | |
Schedule Of Intangible Assets And Goodwill [Line Items] | |||
Total finite-lived intangibles, Gross carrying amount | $ 85,040 | $ 72,700 | $ 85,040 |
Total finite-lived intangibles, Accumulated amortization | (50,492) | (42,887) | (46,430) |
Total | 34,548 | 29,813 | 38,610 |
Goodwill, Gross carrying amount | 171,620 | 157,264 | 171,321 |
Goodwill, Accumulated amortization | 0 | 0 | 0 |
Goodwill, Net carrying amount | 171,620 | 157,264 | 171,321 |
Total goodwill and other intangibles, Gross carrying amount | 320,460 | 293,764 | 320,161 |
Total goodwill and other intangibles, Accumulated amortization | (50,492) | (42,887) | (46,430) |
Total goodwill and other intangibles, Net carrying amount | 269,968 | 250,877 | 273,731 |
Trademarks | |||
Schedule Of Intangible Assets And Goodwill [Line Items] | |||
Indefinite lived intangibles, Net carrying amount | $ 63,800 | $ 63,800 | $ 63,800 |
Customer relationships – retailers | |||
Schedule Of Intangible Assets And Goodwill [Line Items] | |||
Estimated useful life | 10 years | 10 years | 10 years |
Total finite-lived intangibles, Gross carrying amount | $ 77,600 | $ 68,800 | $ 77,600 |
Total finite-lived intangibles, Accumulated amortization | (46,380) | (38,987) | (42,500) |
Total | $ 31,220 | $ 29,813 | $ 35,100 |
Customer relationships – e-commerce | |||
Schedule Of Intangible Assets And Goodwill [Line Items] | |||
Estimated useful life | 3 years | 3 years | 3 years |
Total finite-lived intangibles, Gross carrying amount | $ 3,940 | $ 3,900 | $ 3,940 |
Total finite-lived intangibles, Accumulated amortization | (3,908) | (3,900) | (3,901) |
Total | $ 32 | $ 0 | $ 39 |
Trademarks | |||
Schedule Of Intangible Assets And Goodwill [Line Items] | |||
Estimated useful life | 10 years | 10 years | |
Total finite-lived intangibles, Gross carrying amount | $ 3,500 | $ 3,500 | |
Total finite-lived intangibles, Accumulated amortization | (204) | (29) | |
Total | $ 3,296 | $ 3,471 |
Goodwill and intangible asset_3
Goodwill and intangible assets - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Goodwill [Line Items] | ||||
Amortization of Intangible Assets | $ 2,000,000 | $ 1,700,000 | $ 4,100,000 | $ 3,400,000 |
Goodwill and Intangible Asset Impairment | 0 | $ 0 | $ 0 | $ 0 |
W3LL People | ||||
Goodwill [Line Items] | ||||
Goodwill adjustment | $ 300,000 |
Goodwill and intangible asset_4
Goodwill and intangible assets - Future Amortization Expense for Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Remainder of Fiscal 2021 | $ 4,062 | ||
2022 | 8,123 | ||
2023 | 8,122 | ||
2024 | 6,963 | ||
2025 | 1,230 | ||
Thereafter | 6,048 | ||
Total | $ 34,548 | $ 38,610 | $ 29,813 |
Accrued expenses and other cu_3
Accrued expenses and other current liabilities - Summary of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 |
Payables and Accruals [Abstract] | |||
Accrued expenses | $ 14,465 | $ 12,518 | $ 10,646 |
Current portion of operating lease liabilities | 3,374 | 3,083 | 2,727 |
Accrued compensation | 6,277 | 9,542 | 5,390 |
Other current liabilities | 2,148 | 1,022 | 1,661 |
Accrued expenses and other current liabilities | $ 26,264 | $ 26,165 | $ 20,424 |
Debt - Schedule of Outstanding
Debt - Schedule of Outstanding Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 |
Debt Instrument [Line Items] | |||
Finance lease obligations | $ 2,611 | $ 3,012 | $ 3,402 |
Total debt | 133,148 | 138,865 | 143,945 |
Less: debt issuance costs | (352) | (209) | (258) |
Total debt, net of issuance costs | 132,796 | 138,656 | 143,687 |
Less: current portion | (14,219) | (12,568) | (11,310) |
Long-term portion of debt | 118,577 | 126,088 | 132,377 |
Term Loan | |||
Debt Instrument [Line Items] | |||
Debt | $ 130,537 | $ 135,853 | $ 140,543 |
Debt - Narrative (Details)
Debt - Narrative (Details) - April 2020 Credit Agreement Amendment - USD ($) | Apr. 08, 2020 | Sep. 30, 2020 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 50,000,000 | $ 50,000,000 |
Weighted average interest rate | 1.70% | |
Remaining borrowing capacity | $ 49,800,000 | |
Revolving Credit Facility | Minimum | ||
Debt Instrument [Line Items] | ||
Unused fee percentage | 0.35% | |
Revolving Credit Facility | Maximum | ||
Debt Instrument [Line Items] | ||
Unused fee percentage | 0.25% | |
Revolving Credit Facility | Minimum Floor | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.00% | |
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.50% | |
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 3.25% | |
Revolving Credit Facility | Base Rate | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.50% | |
Revolving Credit Facility | Base Rate | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.25% | |
Term Loan | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 165,000,000 | |
Letter of Credit | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 7,000,000 | |
Swing Line of Credit | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 5,000,000 |
Stock-based compensation - Summ
Stock-based compensation - Summary of Activity for Options Vest Solely Based upon Satisfaction of Service Condition (Details) - Service-based Vesting Stock Options - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended |
Sep. 30, 2020 | |
Shares subject to options outstanding | |
Beginning balance (in shares) | 1,999,553 |
Exercised (in shares) | (136,769) |
Canceled or forfeited (in shares) | (14,641) |
Ending balance (in shares) | 1,848,143 |
Options outstanding, Exercisable (in shares) | 1,354,782 |
Weighted-average exercise price | |
Beginning balance (in USD per share) | $ 13.17 |
Exercised (in USD per share) | 3.32 |
Canceled or forfeited (in USD per share) | 23.39 |
Ending balance (in USD per share) | 13.82 |
Weighted-average exercise price, Exercisable (in USD per share) | $ 13.52 |
Weighted-average remaining contractual life (in years), Outstanding | 6 years 4 months 24 days |
Weighted-average remaining contractual life (in years), Exercisable | 5 years 9 months 18 days |
Aggregate intrinsic values, Outstanding | $ 8,961 |
Aggregate intrinsic values, Exercisable | $ 6,992 |
Stock-based compensation - Narr
Stock-based compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Closing stock price (in USD per share) | $ 18.37 | $ 18.37 | |||
Service-based Vesting Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation cost | $ 0.5 | $ 0.6 | $ 1.1 | $ 1.2 | |
Unrecognized stock-based compensation cost | $ 2.1 | $ 2.1 | |||
Unrecognized stock-based compensation cost, expected weighted-average period of recognition | 2 years 3 months 18 days | ||||
Restricted Stock Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unvested RSAs outstanding (in shares) | 1,658,396 | 1,658,396 | |||
Restricted Stock Awards and Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation cost | $ 4.9 | $ 3.4 | $ 8.9 | $ 6.7 | |
Unrecognized stock-based compensation cost, expected weighted-average period of recognition | 2 years 4 months 24 days | ||||
Unvested RSAs outstanding (in shares) | 2,994,375 | 2,994,375 | 2,311,768 | ||
Unrecognized stock-based compensation cost | $ 32.8 | $ 32.8 |
Stock-based compensation - Su_2
Stock-based compensation - Summary of Activity for Options Vest Based upon Performance or Market Conditions (Details) - Performance-based and Market-based Vesting Options - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended |
Sep. 30, 2020 | |
Shares subject to options outstanding | |
Beginning balance (in shares) | 1,252,932 |
Exercised (in shares) | (27,600) |
Ending balance (in shares) | 1,225,332 |
Options outstanding, Exercisable (in shares) | 925,332 |
Weighted-average exercise price | |
Beginning balance (in USD per share) | $ 7.97 |
Exercised (in USD per share) | 1.84 |
Ending balance (in USD per share) | 8.07 |
Weighted-average exercise price, Exercisable (in USD per share) | $ 1.99 |
Weighted-average remaining contractual life (in years), Outstanding | 4 years 6 months |
Weighted-average remaining contractual life (in years), Exercisable | 3 years 10 months 24 days |
Aggregate intrinsic values, Outstanding | $ 15,159 |
Aggregate intrinsic values, Exercisable | $ 15,159 |
Stock-based compensation - Su_3
Stock-based compensation - Summary of Activities for Restricted Stock Awards ("RSAs") and Restricted Stock Units ("RSUs") (Details) - Restricted Stock Awards and Restricted Stock Units | 6 Months Ended |
Sep. 30, 2020$ / sharesshares | |
RSUs and shares of restricted stock outstanding | |
Beginning balance (in shares) | shares | 2,311,768 |
Granted (in shares) | shares | 1,108,344 |
Vested (in shares) | shares | (274,918) |
Canceled or forfeited (in shares) | shares | (150,819) |
Ending balance (in shares) | shares | 2,994,375 |
Weighted-average grant date fair value | |
Beginning balance (in USD per share) | $ / shares | $ 12.86 |
Granted (in USD per share) | $ / shares | 16.98 |
Vested (in USD per share) | $ / shares | 14.15 |
Canceled or forfeited (in USD per share) | $ / shares | 14.32 |
Ending balance (in USD per share) | $ / shares | $ 14.19 |
Restructuring and other relat_3
Restructuring and other related costs - Narrative (Details) | 1 Months Ended |
Feb. 28, 2019store | |
Restructuring and Related Activities [Abstract] | |
Number of stores closed | 22 |
Restructuring and other relat_4
Restructuring and other related costs - Restructuring expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | ||||
Gain from extinguishment of lease liabilities | $ 0 | $ (5,096) | $ 0 | $ (7,733) |
Other costs, including other asset write-offs | 0 | 898 | 0 | 1,743 |
Total | $ 0 | $ (4,198) | $ 0 | $ (5,990) |
Restructuring and other relat_5
Restructuring and other related costs - Restructuring related liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Employee severance and related expenses | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | $ 0 | $ 96 |
Costs incurred | 0 | (22) |
Cash disbursements | 0 | (74) |
Other adjustments | 0 | 0 |
Ending balance | 0 | 0 |
Other costs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 318 | 675 |
Costs incurred | 898 | 1,765 |
Cash disbursements | (373) | (1,466) |
Other adjustments | (6) | (137) |
Ending balance | 837 | 837 |
Total | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 318 | 771 |
Costs incurred | 898 | 1,743 |
Cash disbursements | (373) | (1,540) |
Other adjustments | (6) | (137) |
Ending balance | $ 837 | $ 837 |
Repurchase of common stock - Na
Repurchase of common stock - Narrative (Details) - USD ($) | Sep. 30, 2020 | May 08, 2019 |
Equity [Abstract] | ||
Amount authorized under share repurchase program | $ 25,000,000 | |
Remaining authorized repurchase amount | $ 17,100,000 |
Net income per share - Reconcil
Net income per share - Reconciliation of Numerator and Denominator in Basic and Diluted Net Income (Loss) Per Common Share Computations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Numerator: | ||||||
Net income | $ 447 | $ 1,512 | $ 6,517 | $ 3,706 | $ 1,959 | $ 10,223 |
Denominator: | ||||||
Weighted average common shares outstanding - basic (in shares) | 49,147,366 | 48,419,845 | 49,036,519 | 48,383,095 | ||
Dilutive common equivalent shares from equity awards (in shares) | 2,601,071 | 2,520,070 | 2,308,278 | 2,245,609 | ||
Weighted average common shares outstanding - diluted (in shares) | 51,748,437 | 50,939,915 | 51,344,797 | 50,628,704 | ||
Net income per share: | ||||||
Basic (in USD per share) | $ 0.01 | $ 0.13 | $ 0.04 | $ 0.21 | ||
Diluted (in USD per share) | $ 0.01 | $ 0.13 | $ 0.04 | $ 0.20 | ||
Anti-dilutive securities excluded from diluted EPS: | ||||||
Weighted average anti-dilutive shares from outstanding equity awards excluded from diluted earnings per share (in shares) | 857,698 | 1,944,662 | 1,712,824 | 2,417,982 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 6 Months Ended | |
Sep. 30, 2020USD ($)store | Sep. 30, 2019USD ($) | |
Leases [Abstract] | ||
Number of leased stores | store | 22 | |
Lessee operating lease, option to extend | five years | |
Operating cash flows from operating leases | $ | $ 1.8 | $ 9 |
Leases - Balance Sheet Line Ite
Leases - Balance Sheet Line Items (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | |
Assets | |||
Operating lease assets | $ 21,548 | $ 8,080 | |
Finance lease assets | 1,599 | 2,591 | |
Total leased assets | 23,147 | 10,671 | |
Current | |||
Operating | $ 3,083 | 3,374 | 2,727 |
Finance | 812 | 791 | |
Noncurrent | |||
Operating | 11,239 | 19,185 | 5,846 |
Finance | 1,799 | 2,611 | |
Total lease liabilities | 25,170 | 11,975 | |
ROU assets derecognized through restructuring | $ 15,700 | ||
Finance lease accumulated amortization | $ (3,400) | $ (2,400) | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsNoncurrent | ||
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsNoncurrent | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesCurrent | ||
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:LongTermDebtAndCapitalLeaseObligationsCurrent | ||
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:LongTermDebtAndCapitalLeaseObligations |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Leases [Abstract] | ||||
Operating lease cost | $ 1,046 | $ 755 | $ 2,126 | $ 1,384 |
Gain from extinguishment of lease liabilities | 0 | (5,096) | 0 | (7,733) |
Finance lease cost | ||||
Amortization of leased assets | 247 | 249 | 495 | 499 |
Interest on lease liabilities | 36 | 46 | 74 | 94 |
Total lease cost (gain) | $ 1,329 | $ (4,046) | $ 2,695 | $ (5,756) |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 |
Operating leases | |||
Remainder of 2021 | $ 1,896 | ||
2022 | 4,239 | ||
2023 | 3,973 | ||
2024 | 4,073 | ||
2025 | 3,673 | ||
Thereafter | 7,063 | ||
Total lease payments | 24,917 | ||
Less: Interest | 2,358 | ||
Present value of lease liabilities | 22,559 | ||
Finance leases | |||
Remainder of 2021 | 475 | ||
2022 | 908 | ||
2023 | 1,208 | ||
2024 | 234 | ||
2025 | 0 | ||
Thereafter | 0 | ||
Total lease payments | 2,825 | ||
Less: Interest | 214 | ||
Present value of lease liabilities | 2,611 | $ 3,012 | $ 3,402 |
Total | |||
Remainder of 2021 | 2,371 | ||
2022 | 5,147 | ||
2023 | 5,181 | ||
2024 | 4,307 | ||
2025 | 3,673 | ||
Thereafter | 7,063 | ||
Total lease payments | $ 27,742 |
Leases - Weighted Average Assum
Leases - Weighted Average Assumptions (Details) | Sep. 30, 2020 | Sep. 30, 2019 |
Weighted-average remaining lease term | ||
Operating leases | 6 years 6 months | 3 years 6 months |
Finance leases | 2 years 9 months 18 days | 3 years 9 months 18 days |
Weighted-average discount rate | ||
Operating leases | 2.80% | 4.60% |
Finance leases | 5.20% | 5.20% |