Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Sep. 27, 2015 | Oct. 23, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | HAWKINS INC | |
Entity Central Index Key | 46,250 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 27, 2015 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --04-03 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 10,547,311 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 27, 2015 | Mar. 29, 2015 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 20,758 | $ 18,639 |
Investments available-for-sale | 10,056 | 14,485 |
Trade receivables — less allowance for doubtful accounts: $402 as of September 27, 2015 and $445 as of March 29, 2015 | 37,315 | 40,355 |
Inventories | 41,370 | 37,028 |
Income taxes receivable | 0 | 732 |
Prepaid expenses and other current assets | 2,016 | 3,101 |
Total current assets | 111,515 | 114,340 |
PROPERTY, PLANT, AND EQUIPMENT: | ||
PROPERTY, PLANT, AND EQUIPMENT: | 181,123 | 172,772 |
Less accumulated depreciation and amortization | 83,567 | 79,042 |
Net property, plant, and equipment | 97,556 | 93,730 |
Goodwill | 13,800 | 11,700 |
Intangible assets — less accumulated amortization: $4,533 as of September 27, 2015 and $3,933 as of March 29, 2015 | 12,648 | 11,154 |
Long-term investments available for sale | 17,256 | 17,249 |
Other | 427 | 239 |
Total other assets | 44,143 | 40,392 |
Total assets | 253,214 | 248,462 |
CURRENT LIABILITIES: | ||
Accounts payable | 20,292 | 20,083 |
Dividends payable | 4,219 | 4,038 |
Accrued payroll and employee benefits | 5,758 | 6,122 |
Deferred income taxes | 2,698 | 2,698 |
Income tax payable | 1,176 | 0 |
Other current liabilities | 3,513 | 3,402 |
Total current liabilities | 37,656 | 36,343 |
PENSION WITHDRAWAL LIABILITY | 6,436 | 6,589 |
OTHER LONG-TERM LIABILITIES | 678 | 1,588 |
DEFERRED INCOME TAXES | 9,991 | 9,978 |
Total liabilities | 54,761 | 54,498 |
COMMITMENTS AND CONTINGENCIES | 0 | 0 |
SHAREHOLDERS’ EQUITY: | ||
Common stock; authorized: 30,000,000 shares of $0.05 par value; 10,478,266 and 10,564,949 shares issued and outstanding as of September 27, 2015 and March 29, 2015, respectively | 524 | 528 |
Additional paid-in capital | 47,123 | 50,901 |
Retained earnings | 150,817 | 142,567 |
Accumulated other comprehensive income (loss) | (11) | (32) |
Total shareholders’ equity | 198,453 | 193,964 |
Total liabilities and shareholders’ equity | $ 253,214 | $ 248,462 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands | Sep. 27, 2015 | Mar. 29, 2015 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts, trade receivables | $ 402 | $ 445 |
Intangible assets accumulated amortization | $ 4,533 | $ 3,933 |
Shares authorized | 30,000,000 | 30,000,000 |
Common stock, par value (usd per share) | $ 0.05 | $ 0.05 |
Common Stock, Shares, Issued | 10,478,266 | 10,564,949 |
Common Stock, Shares, Outstanding | 10,478,266 | 10,564,949 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | |
Income Statement [Abstract] | ||||
Sales | $ 94,592 | $ 88,881 | $ 196,088 | $ 186,917 |
Cost of sales | (74,781) | (70,759) | (155,542) | (150,299) |
Gross profit | 19,811 | 18,122 | 40,546 | 36,618 |
Selling, general and administrative expenses | (10,303) | (8,271) | (20,194) | (17,146) |
Operating income | 9,508 | 9,851 | 20,352 | 19,472 |
Interest (expense) income, net | (15) | (18) | 6 | (4) |
Income before income taxes | 9,493 | 9,833 | 20,358 | 19,468 |
Income tax provision | (3,815) | (3,686) | (7,889) | (7,300) |
Net income | $ 5,678 | $ 6,147 | $ 12,469 | $ 12,168 |
Weighted average number of shares outstanding - basic | 10,545,992 | 10,558,173 | 10,563,267 | 10,564,107 |
Weighted average number of shares outstanding - diluted | 10,589,824 | 10,603,931 | 10,614,484 | 10,616,874 |
Basic earnings per share | ||||
Basic earnings per share | $ 0.54 | $ 0.58 | $ 1.18 | $ 1.15 |
Diluted earnings per share | ||||
Diluted earnings per share | 0.54 | 0.58 | 1.17 | 1.15 |
Cash dividends declared per common share | $ 0.4 | $ 0.38 | $ 0.4 | $ 0.38 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 5,678 | $ 6,147 | $ 12,469 | $ 12,168 |
Other comprehensive income (loss), net of tax: | ||||
Unrealized gain (loss) on available-for-sale investments | (34) | 21 | 21 | 13 |
Total comprehensive income | $ 5,644 | $ 6,168 | $ 12,490 | $ 12,181 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 27, 2015 | Sep. 28, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Income | $ 12,469 | $ 12,168 |
Reconciliation to cash flows: | ||
Depreciation and amortization | 6,950 | 6,071 |
Stock compensation expense | 869 | 767 |
Loss (gain) from property disposals | 4 | (47) |
Changes in operating accounts providing (using) cash: | ||
Trade receivables | 3,040 | 2,348 |
Inventories | (4,173) | (11,100) |
Accounts payable | (121) | 50 |
Accrued liabilities | (1,316) | (1,633) |
Income taxes | 1,908 | (615) |
Other | 895 | 1,582 |
Net cash provided by operating activities | 20,525 | 9,591 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant, and equipment | (9,669) | (6,242) |
Purchases of investments | (4,873) | (12,409) |
Sale and maturities of investments | 9,330 | 7,225 |
Acquisition | (4,450) | 0 |
Other | (56) | 108 |
Net cash used in investing activities | (9,718) | (11,318) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Cash dividends paid | (4,038) | (3,823) |
New shares issued | 530 | 491 |
Shares surrendered for payroll taxes | (379) | (295) |
Shares repurchased | (4,801) | (1,431) |
Net cash used in financing activities | (8,688) | (5,058) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 2,119 | (6,785) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 18,639 | 33,486 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 20,758 | 26,701 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Cash paid for income taxes | 5,981 | 7,945 |
Noncash investing activities - Capital expenditures in accounts payable | $ 1,406 | $ 1,035 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Sep. 27, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions for Form 10-Q and, accordingly, do not include all information and footnotes required by generally accepted accounting principles for complete financial statements. These financial statements should be read in conjunction with the consolidated financial statements and footnotes included in our Annual Report on Form 10-K for the fiscal year ended March 29, 2015 , previously filed with the Securities and Exchange Commission (“SEC”). In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments necessary to present fairly our financial position and the results of our operations and cash flows for the periods presented. All adjustments made to the interim condensed consolidated financial statements were of a normal recurring nature. All significant intercompany accounts and transactions have been eliminated in consolidation. The accounting policies we follow are set forth in “Item 8. Financial Statements and Supplementary Data, Note 1 – Nature of Business and Significant Accounting Policies” to our consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended March 29, 2015 , filed with the SEC on May 28, 2015, as amended from time to time. There has been no significant change in our accounting policies since the end of fiscal 2015 . The results of operations for the six months ended September 27, 2015 are not necessarily indicative of the results that may be expected for the full year. References to fiscal 2015 refer to the fiscal year ended March 29, 2015 and references to fiscal 2016 refer to the fiscal year ending April 3, 2016 . As compared to our normal 52-week fiscal years, fiscal 2016 will be a 53-week year, with the extra week to be recorded in our fourth quarter’s results of operations. Recently Issued Accounting Pronouncements In September 2015, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance which eliminates the requirement for an acquirer to retrospectively adjust the financial statements for measurement-period adjustments that occur in periods after a business combination is consummated. The new guidance is effective for annual fiscal years beginning after December 15, 2015 (our fiscal year ending April 2, 2017), and interim periods within those years. In July 2015, the FASB issued new accounting requirements changing the measurement principal for inventory measured using the first-in, first-out (“FIFO”) or average cost method from the lower of cost or market to the lower of cost and net realizable value. Treatment of inventory valued under the last-in, first-out (“LIFO”) method is unchanged by this guidance. The new guidance will be applied prospectively and will be effective for fiscal years beginning after December 15, 2016 (our fiscal year ending April 1, 2018), and interim periods within those years. We are currently evaluating the impact of this accounting pronouncement on our results of operations and financial position. In May 2014, the FASB issued new accounting requirements for recognition of revenue from contracts with customers. The requirements of the new standard will be effective for annual reporting periods beginning after December 15, 2017 (our fiscal year ending March 31, 2019), and interim periods within those annual periods. We are currently evaluating the impact of this accounting pronouncement on our results of operations and financial position. |
Earnings per Share
Earnings per Share | 6 Months Ended |
Sep. 27, 2015 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share Basic earnings per share (“EPS”) are computed by dividing net earnings by the weighted-average number of common shares outstanding. Diluted EPS includes the incremental shares assumed to be issued upon the exercise of stock options and the incremental shares assumed to be issued as performance units and restricted stock. Basic and diluted EPS were calculated using the following: Three Months Ended Six Months Ended September 27, September 28, September 27, September 28, Weighted-average common shares outstanding—basic 10,545,992 10,558,173 10,563,267 10,564,107 Dilutive impact of stock options, performance units, and restricted stock 43,832 45,758 51,217 52,767 Weighted-average common shares outstanding—diluted 10,589,824 10,603,931 10,614,484 10,616,874 For each of the three and six months ended September 27, 2015 and September 28, 2014 , there were no shares or stock options excluded from the calculation of weighted-average common shares for diluted EPS. |
Business Combinations
Business Combinations | 6 Months Ended |
Sep. 27, 2015 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | Business Combinations Acquisition of Davis Supply, Inc. : On September 18, 2015, we acquired substantially all of the assets of Davis Supply, Inc. (“Davis”) under the terms of an asset purchase agreement with Davis and its shareholders. We paid $4.5 million cash at closing, using available cash on hand to fund the acquisition. Davis was a water treatment chemical distribution company operating in Florida with revenues of approximately $5 million in calendar year 2014. Through this acquisition we added one operating location in Florida and have integrated the remainder of the business into our existing Florida locations. The results of operations after the date of acquisition and the acquired assets are included in our Water Treatment Segment. Costs associated with this transaction were not material and were expensed as incurred. Because of the proximity of the acquisition to quarter-end, we have not completed an asset valuation. We have estimated goodwill and intangible assets, in the aggregate, to be approximately $4.0 million of the total purchase price, with the remaining consideration allocated to fixed assets and inventory. Acquisition of The Dumont Company, Inc. : In the third quarter of fiscal 2015, we acquired substantially all of the assets of The Dumont Company, Inc. (“Dumont”) under the terms of an asset purchase agreement with Dumont and its shareholders. We paid $10.1 million in cash including a working capital adjustment in the third quarter of fiscal 2015, using available cash on hand to fund the acquisition. Dumont was a water treatment chemical distribution company with revenues of approximately $14 million in calendar year 2013. Through this acquisition we added seven operating locations across Florida. The results of operations since the acquisition date, and the assets, including the goodwill associated with this acquisition, are included in our Water Treatment segment. Costs associated with this transaction were not material and were expensed as incurred. The acquisition has been accounted for under the acquisition method of accounting, under which the total purchase price is allocated to the net tangible and intangible assets of Dumont acquired in connection with the acquisition based on their estimated fair values. We estimated the fair values of the assets acquired and liabilities assumed using a discounted cash flow analysis (income approach). The following table summarizes the preliminary allocation of the purchase price to the fair values assigned to the assets acquired and liabilities assumed at the date of the Dumont acquisition: (In thousands) Amount Accounts receivable $ 1,358 Inventory 859 Other assets 159 Property, plant, and equipment 702 Intangible assets 3,509 Current liabilities (877 ) Net assets acquired 5,710 Goodwill 4,358 Total purchase price $ 10,068 The goodwill recognized as a result of this acquisition is primarily attributable to strategic and synergistic benefits, as well as the assembled workforce. Such goodwill is expected to be deductible for tax purposes. The preliminary allocation of the purchase price to the assets acquired and liabilities assumed resulted in the recognition of the following intangible assets: (In thousands) Amount Life (in years) Customer relationships $ 2,810 20 Trade name 699 4 $ 3,509 |
Cash and Cash Equivalents and I
Cash and Cash Equivalents and Investments | 6 Months Ended |
Sep. 27, 2015 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents and Investments | Cash and Cash Equivalents and Investments The following table presents information about our financial assets that are measured at fair value on a recurring basis, and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value. September 27, (In thousands) Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 20,758 $ 20,758 $ — $ — Certificates of deposit 25,726 — 25,726 — Municipal bonds 1,586 — 1,586 — March 29, (In thousands) Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 18,639 $ 18,639 $ — $ — Certificates of deposit 29,136 — 29,136 — Municipal bonds 2,598 — 2,598 — Our financial assets that are measured at fair value on a recurring basis and fall within valuation technique Level 2 are certificates of deposit (“CDs”) and municipal bonds, with original maturities ranging from three months to three years . The CDs and municipal bonds are classified as investments in current assets and noncurrent assets on the condensed consolidated balance sheets. As of September 27, 2015 , the combined CDs and municipal bonds had a fair value of $10.1 million in current assets and $17.3 million in noncurrent assets compared to CDs and municipal bonds with a fair value of $14.5 million in current assets and $17.2 million in noncurrent assets as of March 29, 2015. |
Inventories
Inventories | 6 Months Ended |
Sep. 27, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories at September 27, 2015 and March 29, 2015 consisted of the following: September 27, March 29, (In thousands) Inventory (FIFO basis) $ 46,898 $ 42,567 LIFO reserve (5,528 ) (5,539 ) Net inventory $ 41,370 $ 37,028 The first in, first out (“FIFO”) value of inventories accounted for under the last in, first out (“LIFO”) method was $42.9 million at September 27, 2015 and $39.0 million at March 29, 2015 . The remainder of the inventory was valued and accounted for under the FIFO method. The LIFO reserve decreased nominally during the three months ended September 27, 2015 , and increased $0.2 million during the three months ended September 28, 2014 . During the six months ended September 27, 2015 the LIFO reserve decreased nominally and for the six months ended September 28, 2014 the LIFO reserve increased $0.7 million . The valuation of LIFO inventory for interim periods is based on our estimates of year-end inventory levels and costs. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Sep. 27, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill. The carrying amount of goodwill was $13.8 million as of September 27, 2015 and $11.7 million as of March 29, 2015 . The increase in goodwill is related to goodwill recorded in conjunction with the acquisition of Davis as discussed in Note 3 - Business Combinations. Intangible assets. A summary of our intangible assets as of September 27, 2015 and March 29, 2015 is as follows: September 27, 2015 March 29, 2015 (In thousands) Gross Amount Accumulated Amortization Net Gross Amount Accumulated Amortization Net Finite-life intangible assets Customer relationships $ 11,717 $ (1,977 ) $ 9,740 $ 9,723 $ (1,697 ) $ 8,026 Trademarks and trade names 2,034 (840 ) 1,194 2,034 (667 ) 1,367 Trade secrets 962 (924 ) 38 962 (896 ) 66 Carrier relationships 800 (453 ) 347 800 (337 ) 463 Other finite-life intangible assets 441 (339 ) 102 341 (336 ) 5 Total finite-life intangible assets 15,954 (4,533 ) 11,421 13,860 (3,933 ) 9,927 Indefinite-life intangible assets 1,227 — 1,227 1,227 — 1,227 Total intangible assets $ 17,181 $ (4,533 ) $ 12,648 $ 15,087 $ (3,933 ) $ 11,154 |
Income Taxes (Notes)
Income Taxes (Notes) | 6 Months Ended |
Sep. 27, 2015 | |
Income Tax [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes We are subject to U.S. federal income tax as well as income tax of multiple state jurisdictions. The tax years prior to our fiscal year ended March 29, 2009 are closed to examination by the Internal Revenue Service, and with few exceptions, state and local income tax jurisdictions. During the second quarter of fiscal 2016 we recorded income tax expense of $0.3 million related to a preliminary audit finding by a state income tax jurisdiction covering multiple years. Penalties and interest associated with this assessment were recorded in selling, general, and administrative expenses and interest expense, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Sep. 27, 2015 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Income (Loss) Components of accumulated other comprehensive income (loss) on our consolidated balance sheet, net of tax, are as follows: (In thousands) September 27, March 29, Unrealized gain (loss) on: Available-for-sale investments $ (4 ) $ (25 ) Post-retirement plan liability (7 ) (7 ) Accumulated other comprehensive income (loss) $ (11 ) $ (32 ) |
Share Based Compensation
Share Based Compensation | 6 Months Ended |
Sep. 27, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation Performance-Based Restricted Stock Units. Our Board of Directors (the “Board”) approved a performance-based equity compensation arrangement for our executive officers during the first quarters of each of fiscal 2016 and 2015. These performance-based arrangements provide for the grant of performance-based restricted stock units that represent a possible future issuance of restricted shares of our common stock based on a pre-tax income target for the applicable fiscal year. The actual number of restricted shares to be issued to each executive officer is determined when our final financial information becomes available after the applicable fiscal year and will be between zero shares and 44,446 shares in the aggregate for fiscal 2016. The restricted shares issued will fully vest two years after the last day of the fiscal year on which the performance is based. We are recording the compensation expense for the outstanding performance share units and the converted restricted stock over the life of the awards. The following table represents the restricted stock activity for the six months ended September 27, 2015 : Shares Weighted- Average Grant Date Fair Value Unvested at beginning of period 53,580 $ 37.55 Granted 37,309 40.89 Vested (28,648 ) 40.25 Unvested at end of period 62,241 $ 38.31 We recorded compensation expense related to performance share units and restricted stock of $0.3 million for the three months ended September 27, 2015 and $0.6 million for the six months ended September 27, 2015 . We recorded compensation expense related to performance share units and restricted stock of $0.2 million for the three months ended September 28, 2014 and $0.5 million for the six months ended September 28, 2014 . Substantially all of the compensation expense was recorded in selling, general and administrative expenses in the condensed consolidated statements of income. Restricted Stock Awards. As part of their retainer, each non-employee director receives an annual grant of restricted stock for their Board services. The restricted stock awards are expensed over the requisite vesting period, which is one year from the date of issuance, based on the market value on the date of grant. As of September 27, 2015 , there were 6,804 shares of restricted stock with a weighted averaged grant date fair value of $36.00 outstanding under this program. Compensation expense for each of the three and six months ended September 27, 2015 and September 28, 2014 related to restricted stock awards to the Board was $0.1 million . Stock Option Awards. The Board previously approved a long-term incentive equity compensation arrangement for our executive officers that provided for the grant of non-qualified stock options that vested at the end of a three-year period. No stock options have been granted since our fiscal year ended March 28, 2010. During fiscal 2015, 9,333 options were exercised with an exercise price of $ 19.90 . No expense was recorded in fiscal 2015 or fiscal 2016 related to the value of stock options. |
Share Repurchase Program
Share Repurchase Program | 6 Months Ended |
Sep. 27, 2015 | |
Share Repurchase Program [Abstract] | |
Share Repurchase Program | Share Repurchase Program On May 29, 2014, our Board authorized a share repurchase program of up to 300,000 shares of our outstanding common shares. Under the program, we are authorized to repurchase shares for cash on the open market or in privately negotiated transactions subject to applicable securities laws and regulations. Upon repurchase of the shares, we reduced our common stock for the par value of the shares with the excess applied against additional paid-in capital. During the six months ended September 27, 2015 , we repurchased 127,852 shares of common stock with an aggregate purchase price of $4.8 million . During fiscal 2015, we repurchased 59,602 shares at an aggregate purchase price of $2.2 million , of which 39,170 shares with an aggregate purchase price of $1.4 million were repurchased during the first half of the fiscal year. |
Litigation, Commitments and Con
Litigation, Commitments and Contingencies | 6 Months Ended |
Sep. 27, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation, Commitments and Contingencies | Litigation, Commitments and Contingencies Litigation — There are no material pending legal proceedings, other than ordinary routine litigation incidental to the business, to which we or any of our subsidiaries are a party or of which any of our property is the subject. Legal fees associated with such matters are expensed as incurred. |
Segment Information
Segment Information | 6 Months Ended |
Sep. 27, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We have two reportable segments: Industrial and Water Treatment. The accounting policies of the segments are the same as those described in the summary of significant accounting policies as disclosed in our fiscal 2015 Annual Report on Form 10-K. Product costs and expenses for each segment are based on actual costs incurred along with cost allocation of shared and centralized functions. We evaluate performance based on profit or loss from operations before income taxes not including nonrecurring gains and losses. Reportable segments are defined primarily by product and type of customer. Segments are responsible for the sales, marketing and development of their products and services. The segments do not have separate accounting, administration, customer service or purchasing functions. There are no intersegment sales and no operating segments have been aggregated. Given the nature of our business, it is not practical to disclose revenues from external customers for each product or each group of similar products. No single customer’s revenues amounted to 10% or more of our total revenue. Sales outside of the United States are immaterial and all assets are located within the United States. (In thousands) Industrial Water Treatment Total Three months ended September 27, 2015: Sales $ 58,346 $ 36,246 $ 94,592 Gross profit 9,184 10,627 19,811 Selling, general and administrative expenses 5,441 4,862 10,303 Operating income 3,743 5,765 9,508 Three months ended September 28, 2014: Sales $ 57,935 $ 30,946 $ 88,881 Gross profit 8,363 9,759 18,122 Selling, general and administrative expenses 4,717 3,554 8,271 Operating income 3,646 6,205 9,851 Six months ended September 27, 2015: Sales $ 125,934 $ 70,154 $ 196,088 Gross profit 19,898 20,648 40,546 Selling, general and administrative expenses 10,640 9,554 20,194 Operating income 9,258 11,094 20,352 Six months ended September 28, 2014: Sales $ 125,481 $ 61,436 $ 186,917 Gross profit 17,724 18,894 36,618 Selling, general and administrative expenses 9,816 7,330 17,146 Operating income 7,908 11,564 19,472 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Sep. 27, 2015 | |
Earnings Per Share [Abstract] | |
Summary of basic and diluted EPS | Basic earnings per share (“EPS”) are computed by dividing net earnings by the weighted-average number of common shares outstanding. Diluted EPS includes the incremental shares assumed to be issued upon the exercise of stock options and the incremental shares assumed to be issued as performance units and restricted stock. Basic and diluted EPS were calculated using the following: Three Months Ended Six Months Ended September 27, September 28, September 27, September 28, Weighted-average common shares outstanding—basic 10,545,992 10,558,173 10,563,267 10,564,107 Dilutive impact of stock options, performance units, and restricted stock 43,832 45,758 51,217 52,767 Weighted-average common shares outstanding—diluted 10,589,824 10,603,931 10,614,484 10,616,874 |
Business Combinations (Tables)
Business Combinations (Tables) | 6 Months Ended |
Sep. 27, 2015 | |
Business Combinations [Abstract] | |
Schedule of Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary allocation of the purchase price to the fair values assigned to the assets acquired and liabilities assumed at the date of the Dumont acquisition: (In thousands) Amount Accounts receivable $ 1,358 Inventory 859 Other assets 159 Property, plant, and equipment 702 Intangible assets 3,509 Current liabilities (877 ) Net assets acquired 5,710 Goodwill 4,358 Total purchase price $ 10,068 |
Schedule of Finite-Lived Intangible Assets Acquired | The preliminary allocation of the purchase price to the assets acquired and liabilities assumed resulted in the recognition of the following intangible assets: (In thousands) Amount Life (in years) Customer relationships $ 2,810 20 Trade name 699 4 $ 3,509 |
Cash and Cash Equivalents and21
Cash and Cash Equivalents and Investments (Tables) | 6 Months Ended |
Sep. 27, 2015 | |
Cash and Cash Equivalents [Abstract] | |
Summary of financial assets and liabilities measured at fair value | The following table presents information about our financial assets that are measured at fair value on a recurring basis, and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value. September 27, (In thousands) Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 20,758 $ 20,758 $ — $ — Certificates of deposit 25,726 — 25,726 — Municipal bonds 1,586 — 1,586 — March 29, (In thousands) Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 18,639 $ 18,639 $ — $ — Certificates of deposit 29,136 — 29,136 — Municipal bonds 2,598 — 2,598 — |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Sep. 27, 2015 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories at September 27, 2015 and March 29, 2015 consisted of the following: September 27, March 29, (In thousands) Inventory (FIFO basis) $ 46,898 $ 42,567 LIFO reserve (5,528 ) (5,539 ) Net inventory $ 41,370 $ 37,028 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Sep. 27, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets and goodwill | A summary of our intangible assets as of September 27, 2015 and March 29, 2015 is as follows: September 27, 2015 March 29, 2015 (In thousands) Gross Amount Accumulated Amortization Net Gross Amount Accumulated Amortization Net Finite-life intangible assets Customer relationships $ 11,717 $ (1,977 ) $ 9,740 $ 9,723 $ (1,697 ) $ 8,026 Trademarks and trade names 2,034 (840 ) 1,194 2,034 (667 ) 1,367 Trade secrets 962 (924 ) 38 962 (896 ) 66 Carrier relationships 800 (453 ) 347 800 (337 ) 463 Other finite-life intangible assets 441 (339 ) 102 341 (336 ) 5 Total finite-life intangible assets 15,954 (4,533 ) 11,421 13,860 (3,933 ) 9,927 Indefinite-life intangible assets 1,227 — 1,227 1,227 — 1,227 Total intangible assets $ 17,181 $ (4,533 ) $ 12,648 $ 15,087 $ (3,933 ) $ 11,154 |
Accumulated Other Comprehensi24
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Sep. 27, 2015 | |
Equity [Abstract] | |
Summary of Accumulated other comprehensive loss | Components of accumulated other comprehensive income (loss) on our consolidated balance sheet, net of tax, are as follows: (In thousands) September 27, March 29, Unrealized gain (loss) on: Available-for-sale investments $ (4 ) $ (25 ) Post-retirement plan liability (7 ) (7 ) Accumulated other comprehensive income (loss) $ (11 ) $ (32 ) |
Share Based Compensation (Table
Share Based Compensation (Tables) | 6 Months Ended |
Sep. 27, 2015 | |
Performance-Based Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of performance-based restricted stock units | The following table represents the restricted stock activity for the six months ended September 27, 2015 : Shares Weighted- Average Grant Date Fair Value Unvested at beginning of period 53,580 $ 37.55 Granted 37,309 40.89 Vested (28,648 ) 40.25 Unvested at end of period 62,241 $ 38.31 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Sep. 27, 2015 | |
Segment Reporting [Abstract] | |
Summary of Segment Information | (In thousands) Industrial Water Treatment Total Three months ended September 27, 2015: Sales $ 58,346 $ 36,246 $ 94,592 Gross profit 9,184 10,627 19,811 Selling, general and administrative expenses 5,441 4,862 10,303 Operating income 3,743 5,765 9,508 Three months ended September 28, 2014: Sales $ 57,935 $ 30,946 $ 88,881 Gross profit 8,363 9,759 18,122 Selling, general and administrative expenses 4,717 3,554 8,271 Operating income 3,646 6,205 9,851 Six months ended September 27, 2015: Sales $ 125,934 $ 70,154 $ 196,088 Gross profit 19,898 20,648 40,546 Selling, general and administrative expenses 10,640 9,554 20,194 Operating income 9,258 11,094 20,352 Six months ended September 28, 2014: Sales $ 125,481 $ 61,436 $ 186,917 Gross profit 17,724 18,894 36,618 Selling, general and administrative expenses 9,816 7,330 17,146 Operating income 7,908 11,564 19,472 |
Basis of Presentation Basis of
Basis of Presentation Basis of Presentation (Details) | 6 Months Ended | 12 Months Ended |
Sep. 27, 2015 | Mar. 29, 2015 | |
Basis of Presentation [Abstract] | ||
Fiscal Period Duration | 371 days | 364 days |
Earning per Share (Details)
Earning per Share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | |
Summary of basic and diluted EPS | ||||
Weighted-average common shares outstanding-basic (shares) | 10,545,992 | 10,558,173 | 10,563,267 | 10,564,107 |
Dilutive impact of stock options, performance units, and restricted stock (shares) | 43,832 | 45,758 | 51,217 | 52,767 |
Weighted-average common shares outstanding-diluted (shares) | 10,589,824 | 10,603,931 | 10,614,484 | 10,616,874 |
Earnings per Share (Details Tex
Earnings per Share (Details Textual) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | |
Earnings Per Share [Abstract] | ||||
Shares or stock options excluded from the calculation of diluted EPS | 0 | 0 | 0 | 0 |
Business Combinations (Details)
Business Combinations (Details) $ in Thousands | Sep. 18, 2015USD ($) | Oct. 20, 2014USD ($) | Dec. 28, 2014USD ($) | Sep. 27, 2015USD ($) | Sep. 28, 2014USD ($) |
Business Acquisition [Line Items] | |||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 4,450 | $ 0 | |||
Davis Supply Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 4,450 | ||||
Business Acquisition, Revenue Reported by Acquired Entity for Last Annual Period | $ 5,000 | ||||
Preliminary Value of Goodwill and Intangible Assets Acquired | $ 4,000 | ||||
Number of operating locations acquired | 1 | ||||
The Dumont Company, Inc. | |||||
Business Acquisition [Line Items] | |||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 10,100 | ||||
Business Acquisition, Revenue Reported by Acquired Entity for Last Annual Period | $ 14,000 | ||||
Number of operating locations acquired | 7 | ||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||
Accounts receivable | $ 1,358 | ||||
Inventory | 859 | ||||
Other assets | 159 | ||||
Property, plant, and equipment | 702 | ||||
Intangible assets | 3,509 | ||||
Current liabilities | 877 | ||||
Net assets acquired | 5,710 | ||||
Goodwill | 4,358 | ||||
Total purchase price | 10,068 | ||||
Customer Relationships [Member] | The Dumont Company, Inc. | |||||
Business Acquisition [Line Items] | |||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 20 years | ||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||
Intangible assets | 2,810 | ||||
Trade Names [Member] | The Dumont Company, Inc. | |||||
Business Acquisition [Line Items] | |||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 4 years | ||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||
Intangible assets | $ 699 |
Cash and Cash Equivalents and31
Cash and Cash Equivalents and Investments (Details) - USD ($) $ in Thousands | Sep. 27, 2015 | Mar. 29, 2015 |
Cash [Member] | Total [Member] | ||
Assets: | ||
Cash/Certificates of deposit/Money market securities | $ 20,758 | $ 18,639 |
Cash [Member] | Level 1 [Member] | ||
Assets: | ||
Cash/Certificates of deposit/Money market securities | 20,758 | 18,639 |
Cash [Member] | Level 2 [Member] | ||
Assets: | ||
Cash/Certificates of deposit/Money market securities | 0 | 0 |
Cash [Member] | Level 3 [Member] | ||
Assets: | ||
Cash/Certificates of deposit/Money market securities | 0 | 0 |
Certificates of deposit [Member] | Total [Member] | ||
Assets: | ||
Cash/Certificates of deposit/Money market securities | 25,726 | 29,136 |
Certificates of deposit [Member] | Level 1 [Member] | ||
Assets: | ||
Cash/Certificates of deposit/Money market securities | 0 | 0 |
Certificates of deposit [Member] | Level 2 [Member] | ||
Assets: | ||
Cash/Certificates of deposit/Money market securities | 25,726 | 29,136 |
Certificates of deposit [Member] | Level 3 [Member] | ||
Assets: | ||
Cash/Certificates of deposit/Money market securities | 0 | 0 |
Municipal bonds [Member] | Total [Member] | ||
Assets: | ||
Cash/Certificates of deposit/Money market securities | 1,586 | 2,598 |
Municipal bonds [Member] | Level 1 [Member] | ||
Assets: | ||
Cash/Certificates of deposit/Money market securities | 0 | 0 |
Municipal bonds [Member] | Level 2 [Member] | ||
Assets: | ||
Cash/Certificates of deposit/Money market securities | 1,586 | 2,598 |
Municipal bonds [Member] | Level 3 [Member] | ||
Assets: | ||
Cash/Certificates of deposit/Money market securities | $ 0 | $ 0 |
Cash and Cash Equivalents and32
Cash and Cash Equivalents and Investments (Details Textual) - USD ($) $ in Millions | 6 Months Ended | |
Sep. 27, 2015 | Mar. 29, 2015 | |
Cash and Cash Equivalents [Line Items] | ||
Available-for-sale Securities, Current | $ 10.1 | $ 14.5 |
Available-for-sale Securities, Noncurrent | $ 17.3 | $ 17.2 |
Fair Value, Inputs, Level 2 [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Maturities period of certificates of deposit minimum | 3 months | |
Maturities period of certificates of deposit maximum | 3 years |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 27, 2015 | Mar. 29, 2015 |
Summary of Inventories | ||
Inventory (FIFO basis) | $ 46,898 | $ 42,567 |
LIFO reserve | (5,528) | (5,539) |
Net inventory | $ 41,370 | $ 37,028 |
Inventories (Details Textual)
Inventories (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | Mar. 29, 2015 | |
Inventory Disclosure [Abstract] | |||||
Finished goods (LIFO basis) | $ 42,900 | $ 42,900 | $ 39,000 | ||
Increase (decrease) in LIFO reserve | $ 0 | $ 200 | $ 0 | $ 700 |
Goodwill and Intangible Asset35
Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 27, 2015 | Mar. 29, 2015 |
Summary of Finite-Lived Intangible Assets [Line Items] | ||
Finite-life intangible assets, Gross Carrying Amount | $ 15,954 | $ 13,860 |
Finite-life intangible assets, Accumulated Amortization | (4,533) | (3,933) |
Total finite-life intangible assets, Net | 11,421 | 9,927 |
Indefinite-life intangible assets gross | 1,227 | 1,227 |
Indefinite-life intangible assets, Accumulated Amortization | 0 | 0 |
Indefinite-life intangible assets | 1,227 | 1,227 |
Total Intangible Assets, Gross | 17,181 | 15,087 |
Intangible assets, Accumulated Amortization | (4,533) | (3,933) |
Total intangible assets, net | 12,648 | 11,154 |
Customer Relationships [Member] | ||
Summary of Finite-Lived Intangible Assets [Line Items] | ||
Finite-life intangible assets, Gross Carrying Amount | 11,717 | 9,723 |
Finite-life intangible assets, Accumulated Amortization | (1,977) | (1,697) |
Total finite-life intangible assets, Net | 9,740 | 8,026 |
Trademarks [Member] | ||
Summary of Finite-Lived Intangible Assets [Line Items] | ||
Finite-life intangible assets, Gross Carrying Amount | 2,034 | 2,034 |
Finite-life intangible assets, Accumulated Amortization | (840) | (667) |
Total finite-life intangible assets, Net | 1,194 | 1,367 |
Trade secrets [Member] | ||
Summary of Finite-Lived Intangible Assets [Line Items] | ||
Finite-life intangible assets, Gross Carrying Amount | 962 | 962 |
Finite-life intangible assets, Accumulated Amortization | (924) | (896) |
Total finite-life intangible assets, Net | 38 | 66 |
Carrier relationships [Member] | ||
Summary of Finite-Lived Intangible Assets [Line Items] | ||
Finite-life intangible assets, Gross Carrying Amount | 800 | 800 |
Finite-life intangible assets, Accumulated Amortization | (453) | (337) |
Total finite-life intangible assets, Net | 347 | 463 |
Other finite-life intangible assets [Member] | ||
Summary of Finite-Lived Intangible Assets [Line Items] | ||
Finite-life intangible assets, Gross Carrying Amount | 441 | 341 |
Finite-life intangible assets, Accumulated Amortization | (339) | (336) |
Total finite-life intangible assets, Net | $ 102 | $ 5 |
Goodwill and Intangible Asset36
Goodwill and Intangible Assets (Details Textual) - USD ($) $ in Millions | Sep. 27, 2015 | Mar. 29, 2015 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 13.8 | $ 11.7 |
Income Taxes (Details)
Income Taxes (Details) $ in Millions | 3 Months Ended |
Sep. 27, 2015USD ($) | |
Income Tax [Abstract] | |
Income Tax Examination, Penalties and Interest Expense | $ 0.3 |
Accumulated Other Comprehensi38
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | Sep. 27, 2015 | Mar. 29, 2015 |
Unrealized gain (loss) on: | ||
Available-for-sale investments | $ (4) | $ (25) |
Post-retirement plan liability | (7) | (7) |
Accumulated other comprehensive income (loss) | $ (11) | $ (32) |
Share Based Compensation (Detai
Share Based Compensation (Details) - Performance-Based Restricted Stock [Member] | 6 Months Ended |
Sep. 27, 2015$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Unvested at beginning of period (Shares) | shares | 53,580 |
Granted (Shares) | shares | 37,309 |
Vested (Shares) | shares | (28,648) |
Unvested at end of period (Shares) | shares | 62,241 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Beginning Balance, Weighted average grant date fair value (usd per share) | $ 37.55 |
Granted, Weighted average grant date fair value (usd per share) | 40.89 |
Vested, Weighted average grant date fair value (usd per share) | 40.25 |
Ending Balance, Weighted average grant date fair value (usd per share) | $ 38.31 |
Share Based Compensation (Det40
Share Based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | Mar. 29, 2015 | |
Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation expense | $ 0 | $ 0 | |||
Stock options exercised | 9,333 | ||||
Weighted average exercise price (usd per share) | $ 19.90 | ||||
Restricted Stock Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Range of restricted stock to be issued minimum (shares) | 0 | ||||
Range of restricted stock to be issued maximum (shares) | 44,446 | ||||
Performance-Based Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation expense | $ 0.3 | $ 0.2 | $ 0.6 | 0.5 | |
Vesting period | 2 years | ||||
Restricted Stock Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation expense | $ 0.1 | $ 0.1 | $ 0.1 | $ 0.1 | |
Vesting period | 1 year | ||||
Restricted stock awards outstanding (shares) | 6,804 | 6,804 | |||
Restricted stock awards, weighted average exercise price (usd per share) | $ 36 | $ 36 |
Share Repurchase Program (Detai
Share Repurchase Program (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Mar. 29, 2015 | May. 29, 2014 | |
Share Repurchase Program [Abstract] | ||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 300,000 | |||
Stock Repurchased During Period, Shares | 127,852 | 39,170 | 59,602 | |
Stock Repurchased During Period, Value | $ 4.8 | $ 1.4 | $ 2.2 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | |
Segment Reporting Information [Line Items] | ||||
Sales | $ 94,592 | $ 88,881 | $ 196,088 | $ 186,917 |
Gross profit | 19,811 | 18,122 | 40,546 | 36,618 |
Selling, general and administrative expenses | 10,303 | 8,271 | 20,194 | 17,146 |
Operating income | 9,508 | 9,851 | 20,352 | 19,472 |
Industrial [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 58,346 | 57,935 | 125,934 | 125,481 |
Gross profit | 9,184 | 8,363 | 19,898 | 17,724 |
Selling, general and administrative expenses | 5,441 | 4,717 | 10,640 | 9,816 |
Operating income | 3,743 | 3,646 | 9,258 | 7,908 |
Water Treatment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 36,246 | 30,946 | 70,154 | 61,436 |
Gross profit | 10,627 | 9,759 | 20,648 | 18,894 |
Selling, general and administrative expenses | 4,862 | 3,554 | 9,554 | 7,330 |
Operating income | $ 5,765 | $ 6,205 | $ 11,094 | $ 11,564 |
Segment Information (Details Te
Segment Information (Details Textual) $ in Millions | 6 Months Ended |
Sep. 27, 2015USD ($)SegmentCustomer | |
Segment Reporting [Abstract] | |
Number of reportable segments (segments) | 2 |
Intersegment sales | $ | $ 0 |
Number of operating segments aggregated (segments) | 0 |
Number of customer representing 10 percent or more of revenue (customers) | Customer | 0 |