Hawkins (HWKN) 10-Q 9 Aug 17 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Jul. 02, 2017	Aug. 04, 2017
Document Information [Line Items]
Entity Registrant Name	HAWKINS INC
Entity Central Index Key	46,250
Document Type	10-Q
Document Period End Date	Jul. 2, 2017
Amendment Flag	false
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--04-01
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		10,663,271

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jul. 02, 2017	Apr. 02, 2017
CURRENT ASSETS:
Cash and cash equivalents	$ 2,770	$ 6,861
Trade receivables — less allowance for doubtful accounts: $472 as of July 2, 2017 and $468 as of April 2, 2017	61,855	57,298
Inventories	65,551	51,249
Income taxes receivable	897	1,273
Prepaid expenses and other current assets	3,323	4,238
Total current assets	134,396	120,919
PROPERTY, PLANT, AND EQUIPMENT:
PROPERTY, PLANT, AND EQUIPMENT:	227,064	221,518
Less accumulated depreciation	104,095	99,978
Net property, plant, and equipment	122,969	121,540
OTHER ASSETS:
Goodwill	97,556	97,556
Intangible assets, net	75,454	76,883
Other	2,956	1,686
Total other assets	175,966	176,125
Total assets	433,331	418,584
CURRENT LIABILITIES:
Accounts payable — trade	27,917	29,756
Dividends payable	0	4,466
Accrued payroll and employee benefits	5,264	9,979
Current portion of long-term debt	8,614	7,989
Due to sellers of acquired business	0	341
Container deposits	1,233	1,174
Other current liabilities	1,958	1,967
Total current liabilities	44,986	55,672
LONG-TERM DEBT, LESS CURRENT PORTION	112,160	94,626
PENSION WITHDRAWAL LIABILITY	5,889	5,968
DEFERRED INCOME TAXES	41,994	42,040
OTHER LONG-TERM LIABILITIES	3,598	2,450
Total liabilities	208,627	200,756
COMMITMENTS AND CONTINGENCIES	0	0
SHAREHOLDERS’ EQUITY:
Common stock; authorized: 30,000,000 shares of $0.05 par value; 10,600,471 and 10,582,596 shares issued and outstanding as of July 2, 2017 and April 2, 2017, respectively	530	529
Additional paid-in capital	52,216	51,104
Retained earnings	171,728	165,897
Accumulated other comprehensive income (loss)	230	298
Total shareholders’ equity	224,704	217,828
Total liabilities and shareholders’ equity	$ 433,331	$ 418,584

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands	Jul. 02, 2017	Apr. 02, 2017
Statement of Financial Position [Abstract]
Allowance for doubtful accounts, trade receivables	$ 472	$ 468
Shares authorized	30,000,000	30,000,000
Common stock, par value (usd per share)	$ 0.05	$ 0.05
Common Stock, Shares, Issued	10,600,471	10,582,596
Common Stock, Shares, Outstanding	10,600,471	10,582,596

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Jul. 02, 2017	Jul. 03, 2016
Income Statement [Abstract]
Sales	$ 133,731	$ 131,374
Cost of sales	(107,732)	(103,158)
Gross profit	25,999	28,216
Selling, general and administrative expenses	(15,766)	(15,126)
Operating income	10,233	13,090
Interest expense, net	(750)	(724)
Income before income taxes	9,483	12,366
Income tax provision	(3,652)	(4,762)
Net income	$ 5,831	$ 7,604
Weighted average number of shares outstanding - basic	10,582,989	10,513,139
Weighted average number of shares outstanding - diluted	10,615,692	10,555,282
Basic earnings per share
Basic earnings per share	$ 0.55	$ 0.72
Diluted earnings per share
Diluted earnings per share	0.55	0.72
Cash dividends declared per common share	$ 0	$ 0

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Jul. 02, 2017	Jul. 03, 2016
Net income	$ 5,831	$ 7,604
Other comprehensive income (loss), net of tax:
Total comprehensive income	5,763	7,604
Interest Rate Swap [Member]
Other comprehensive income (loss), net of tax:
Unrealized loss on interest rate swap	$ (68)	$ 0

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Jul. 02, 2017	Jul. 03, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 5,831	$ 7,604
Reconciliation to cash flows:
Depreciation and amortization	5,831	5,075
Amortization of debt issuance costs	34	34
Stock compensation expense	409	535
Loss (gain) from property disposals	15	(64)
Changes in operating accounts providing (using) cash:
Trade receivables	(4,558)	1,786
Inventories	(14,303)	393
Accounts payable	(1,178)	351
Accrued liabilities	(3,599)	(4,539)
Income taxes	35	2,416
Other	(464)	828
Net cash (used in) provided by operating activities	(11,947)	14,419
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant, and equipment	(6,556)	(6,264)
Acquisitions, net of cash acquired	0	(2,199)
Other	49	180
Net cash used in investing activities	(6,507)	(8,283)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash dividends paid	(4,466)	(4,226)
New shares issued	704	553
Payments on senior secured term loan	(1,875)	(1,250)
Proceeds from revolver borrowings	20,000	0
Net cash provided by (used in) financing activities	14,363	(4,923)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(4,091)	1,213
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	6,861	20,014
CASH AND CASH EQUIVALENTS, END OF PERIOD	2,770	21,227
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for income taxes	3,277	2,402
Cash paid for interest	683	650
Noncash investing activities - capital expenditures in accounts payable	$ 296	$ 749

Basis of Presentation

Basis of Presentation	3 Months Ended
	Jul. 02, 2017
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 April 2, 2017 , 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 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 April 2, 2017 , previously filed with the SEC. There has been no significant change in our accounting policies since the end of fiscal 2017 . The results of operations for the three months ended July 2, 2017 are not necessarily indicative of the results that may be expected for the full year. References to fiscal 2017 refer to the fiscal year ended April 2, 2017 and references to fiscal 2018 refer to the fiscal year ending April 1, 2018 . Recently Issued Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02, which provides new accounting guidance requiring lessees to recognize most leases as assets and liabilities on the balance sheet. This guidance will be effective for interim periods beginning after December 15, 2018 (our fiscal year ended March 30, 2020). We are currently evaluating the impact of this accounting pronouncement on our results of operations and financial position. In January 2016, the FASB issued ASU 2016-01, which provides guidance that addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. This guidance 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. Early adoption is not permitted. We are currently evaluating the impact that this guidance will have on our results of operations and financial position. In May 2014, the FASB issued ASU 2014-09, which provides 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 have performed a preliminary evaluation of the effect of adoption on our consolidated financial statements, and we do not currently expect a material impact on our results of operations, cash flows or financial position. We anticipate we will expand our consolidated financial statement disclosures to comply with the ASU. We have not yet decided on our transition method upon adoption. Recently Adopted Accounting Pronouncements In March 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-09, which provides accounting guidance intended to improve the accounting for share-based payment transactions. This guidance outlines new provisions intended to simplify various aspects related to accounting for share-based payments and their presentation in the financial statements. We adopted this guidance in the first quarter of fiscal 2018. We will continue to estimate forfeitures as we determine compensation cost each period. The primary impact on our consolidated financial statements will be the recognition of excess tax benefits in the provision for income taxes rather than additional paid-in capital, which may result in increased volatility in the reported amounts of income tax expense and net income. In July 2015, the FASB issued ASU 2015-11, which requires companies to change the measurement principal for inventory measured using the 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 LIFO method is unchanged by this guidance. We adopted this guidance in the first quarter of fiscal 2018 and there was no impact to our financial position or results of operations.

Earnings per Share

Earnings per Share	3 Months Ended
	Jul. 02, 2017
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 as performance units and restricted stock. Basic and diluted EPS were calculated using the following: Three Months Ended July 2, July 3, Weighted-average common shares outstanding—basic 10,582,989 10,513,139 Dilutive impact of performance units and restricted stock 32,703 42,143 Weighted-average common shares outstanding—diluted 10,615,692 10,555,282 For each of the three months ended July 2, 2017 and July 3, 2016 , there were no shares excluded from the calculation of weighted-average common shares for diluted EPS.

Derivative Instruments

Derivative Instruments	3 Months Ended
	Jul. 02, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments and Hedging Activities Disclosure [Text Block]	Note 3 – Derivative Instruments On September 20, 2016, we entered into an interest rate swap agreement to manage the risk associated with a portion of our variable-rate long-term debt. We do not utilize derivative instruments for speculative purposes. The interest rate swap involves the exchange of fixed-rate and variable-rate payments without the exchange of the underlying notional amount on which the interest payments are calculated. The new swap agreement will begin September 1, 2017 and will terminate concurrently with the expiration of our credit facility on December 23, 2020. The notional amount of the swap agreement is $40 million from September 1, 2017 through August 31, 2018, $30 million from September 1, 2018 through August 31, 2019 and $20 million from September 1, 2019 through December 23, 2020. We have designated this swap as a cash flow hedge and have determined that it qualifies for hedge accounting treatment. For so long as the hedge is effective, changes in fair value of the cash flow hedge are recorded in other comprehensive income (net of tax) until income or loss from the cash flows of the hedged item is realized. For the three months ended July 2, 2017 , we recorded $0.1 million in other comprehensive loss related to unrealized losses (net of tax) on the cash flow hedge. Included in other long-term assets on our condensed consolidated balance sheet was $0.4 million as of July 2, 2017 and $0.5 million as of April 2, 2017 related to the cash flow hedge. No amounts were reflected in other comprehensive income related to cash flow hedges for the three months ended July 3, 2016 . Unrealized gains and losses will be reflected in net income when the related cash flows or hedged transactions occur and offset the related performance of the hedged item. By their nature, derivative instruments are subject to market risk. Derivative instruments are also subject to credit risk associated with counterparties to the derivative contracts. Credit risk associated with derivatives is measured based on the replacement cost should the counterparty with a contract in a gain position to us fail to perform under the terms of the contract. We do not anticipate nonperformance by the counterparty.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Jul. 02, 2017
Fair Value Disclosures [Abstract]
Fair Value, Measurement Inputs, Disclosure [Text Block]	Note 4 – Fair Value Measurements Our financial assets and liabilities are measured at fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). We classify the inputs used to measure fair value into the following hierarchy: Level 1: Quoted prices in active markets for identical assets or liabilities. Level 2: Quoted prices in active markets for similar assets or liabilities, or quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable or can be corroborated by observable market data for the asset or liability. Level 3: Unobservable inputs for the asset or liability that are supported by little or no market activity. These fair values are determined using pricing models for which the assumptions utilize management’s estimates or market participant assumptions. Assets and Liabilities Measured at Fair Value on a Recurring Basis. The fair value hierarchy requires the use of observable market data when available. In instances where inputs used to measure fair value fall into different levels of the fair value hierarchy, the fair value measurement has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability. Our financial assets that are measured at fair value on a recurring basis are an interest rate swap and assets held in a deferred compensation retirement plan. Both of these assets are classified as other long-term assets on our balance sheet. The fair value of the interest rate swap is determined by the respective counterparties based on interest rate changes. Interest rate swaps are valued based on observable interest rate yield curves for similar instruments. The deferred compensation plan assets relate to contributions made to a non-qualified compensation plan on behalf of certain employees who are classified as “highly compensated employees” as determined by IRS guidelines. The assets are part of a rabbi trust and the funds are held in mutual funds. The fair value of the deferred compensation is based on the quoted market prices for the mutual funds at the end of the period. The following table summarizes the balances of assets measured at fair value on a recurring basis as of July 2, 2017 and April 2, 2017 . 0 (In thousands) July 2, 2017 Level 1 Level 2 Level 3 Interest rate swap $ 388 — $ 388 — Deferred compensation plan assets $ 1,386 $ 1,386 — — (In thousands) April 2, 2017 Level 1 Level 2 Level 3 Interest rate swap $ 502 — $ 502 — Deferred compensation plan assets — — $ — —

Inventories

Inventories	3 Months Ended
	Jul. 02, 2017
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories at July 2, 2017 and April 2, 2017 consisted of the following: July 2, April 2, (In thousands) Inventory (FIFO basis) $ 67,524 $ 52,735 LIFO reserve (1,973 ) (1,486 ) Net inventory $ 65,551 $ 51,249 The FIFO value of inventories accounted for under the LIFO method was $45.3 million at July 2, 2017 and $37.0 million at April 2, 2017 . The remainder of the inventory was valued and accounted for under the FIFO method. The LIFO reserve increased $0.5 million during the three months ended July 2, 2017 and decreased nominally during the three months ended July 3, 2016 . 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	3 Months Ended
	Jul. 02, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Goodwill and Intangible Assets The carrying amount of goodwill was $97.6 million as of July 2, 2017 and April 2, 2017 , of which $84.1 million was related to our Health and Nutrition segment. The annual goodwill impairment test we performed in fiscal 2017 indicated the excess fair value of this reporting unit was $7.4 million, or 4.8%. A summary of our intangible assets as of July 2, 2017 and April 2, 2017 is as follows: July 2, 2017 April 2, 2017 (In thousands) Gross Amount Accumulated Amortization Net Gross Amount Accumulated Amortization Net Finite-life intangible assets Customer relationships 78,383 (8,995 ) 69,388 78,383 (7,854 ) 70,529 Trademarks and trade names 6,045 (1,965 ) 4,080 6,045 (1,790 ) 4,255 Other finite-life intangible assets 3,648 (2,889 ) 759 3,648 (2,776 ) 872 Total finite-life intangible assets 88,076 (13,849 ) 74,227 88,076 (12,420 ) 75,656 Indefinite-life intangible assets 1,227 — 1,227 1,227 — 1,227 Total intangible assets $ 89,303 $ (13,849 ) $ 75,454 $ 89,303 $ (12,420 ) $ 76,883

Debt

Debt	3 Months Ended
	Jul. 02, 2017
Debt Disclosure [Abstract]
Debt	Debt Debt at July 2, 2017 and April 2, 2017 consisted of the following: July 2, April 2, (In thousands) Senior secured term loan $ 91,250 $ 93,125 Senior secured revolving loan 30,000 10,000 Total debt 121,250 103,125 Less: unamortized debt issuance costs (476 ) (510 ) Total debt, net of debt issuance costs 120,774 102,615 Less: current portion of long-term debt (8,614 ) (7,989 ) Total long-term debt $ 112,160 $ 94,626

Income Taxes

Income Taxes	3 Months Ended
	Jul. 02, 2017
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 April 3, 2016 are closed to examination by the Internal Revenue Service. Our federal tax return filed for our fiscal year ended March 29, 2015 was examined by the Internal Revenue Service with no adjustments. For state and local income tax jurisdictions, the tax years prior to our fiscal year ended March 30, 2014 are closed to examination, with few exceptions. Our effective tax rate was approximately 38.5% for the three months ended July 2, 2017 and July 3, 2016 . As of July 2, 2017 and April 2, 2017, our balance sheet included a $0.8 million long-term liability for uncertain tax positions which arose from tax positions taken by Stauber on its tax returns for periods prior to our acquisition, offset by a corresponding long-term receivable as the Stauber acquisition agreement provides us with indemnification by the prior owners for any tax liabilities relating to pre-acquisition tax returns. Accordingly, we have also recorded an offsetting, long-term receivable for $0.8 million , and, as such, any change in the unrecognized tax benefit will not impact our effective tax rate in future periods. We expect these uncertain income tax amounts to decrease as the applicable examination periods by the relevant taxing authorities expire. As of July 2, 2017 and April 2, 2017, the liability for uncertain tax positions and the corresponding receivable included $0.1 million of interest and penalties.

Share Based Compensation

Share Based Compensation	3 Months Ended
	Jul. 02, 2017
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 2018 and fiscal 2017 . 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 57,855 shares in the aggregate for fiscal 2018 . 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 three months ended July 2, 2017 : Shares Weighted- Average Grant Date Fair Value Unvested at beginning of period 28,853 $ 43.10 Granted 35,075 47.50 Forfeited or expired (9,220 ) 45.45 Unvested at end of period 54,708 $ 45.52 We recorded compensation expense related to performance share units and restricted stock of $0.2 million for three months ended July 2, 2017 and $0.4 million for the three months ended July 3, 2016 . 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 of Director 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 July 2, 2017 , there were 8,092 shares of restricted stock with a weighted averaged grant date fair value of $43.24 outstanding under this program. Compensation expense for each of the three months ended July 2, 2017 and July 3, 2016 related to restricted stock awards to the Board was $0.1 million .

Share Repurchase Program

Share Repurchase Program	3 Months Ended
	Jul. 02, 2017
Share Repurchase Program [Abstract]
Share Repurchase Program	Share Repurchase Program We have in place a share repurchase program approved by our Board of up to 300,000 shares of our outstanding common stock. 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 reduce our common stock for the par value of the shares with the excess applied against additional paid-in capital. No shares were repurchased during the three months ended July 2, 2017 or during fiscal 2017. As of July 2, 2017 , 112,546 shares remained available to be repurchased under the share repurchase program.

Litigation, Commitments and Con

Litigation, Commitments and Contingencies	3 Months Ended
	Jul. 02, 2017
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	3 Months Ended
	Jul. 02, 2017
Segment Reporting [Abstract]
Segment Information	Segment Information We have three reportable segments: Industrial, Water Treatment, and Health and Nutrition. The accounting policies of the segments are the same as those described in the summary of significant accounting policies in our fiscal 2017 Annual Report on Form 10-K. 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. Other than our Health and Nutrition segment, the segments do not have separate accounting, administration, customer service or purchasing functions. We allocate certain corporate expenses to our operating segments. There are no intersegment sales and no operating segments have been aggregated. No single customer’s revenues amounted to 10% or more of our total revenue. Sales are primarily within the United States and all assets are located within the United States. (In thousands) Industrial Water Treatment Health and Nutrition Total Three months ended July 2, 2017: Sales $ 64,027 $ 38,224 $ 31,480 $ 133,731 Gross profit 8,973 11,203 5,823 25,999 Selling, general, and administrative expenses 5,756 5,257 4,753 15,766 Operating income 3,217 5,946 1,070 10,233 Three months ended July 3, 2016: Sales $ 63,788 $ 35,636 $ 31,950 $ 131,374 Gross profit 10,422 10,629 7,165 28,216 Selling, general, and administrative expenses 5,395 5,064 4,667 15,126 Operating income (loss) 5,027 5,565 2,498 13,090 No significant changes to identifiable assets by segment occurred during the three months ended July 2, 2017 .

Earnings per Share (Tables)

Earnings per Share (Tables)	3 Months Ended
	Jul. 02, 2017
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 as performance units and restricted stock. Basic and diluted EPS were calculated using the following: Three Months Ended July 2, July 3, Weighted-average common shares outstanding—basic 10,582,989 10,513,139 Dilutive impact of performance units and restricted stock 32,703 42,143 Weighted-average common shares outstanding—diluted 10,615,692 10,555,282

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Jul. 02, 2017
Fair Value Disclosures [Abstract]
Fair Value, Liabilities Measured on Recurring Basis [Table Text Block]	The following table summarizes the balances of assets measured at fair value on a recurring basis as of July 2, 2017 and April 2, 2017 . 0 (In thousands) July 2, 2017 Level 1 Level 2 Level 3 Interest rate swap $ 388 — $ 388 — Deferred compensation plan assets $ 1,386 $ 1,386 — — (In thousands) April 2, 2017 Level 1 Level 2 Level 3 Interest rate swap $ 502 — $ 502 — Deferred compensation plan assets — — $ — —

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Jul. 02, 2017
Inventory Disclosure [Abstract]
Summary of Inventories	Inventories at July 2, 2017 and April 2, 2017 consisted of the following: July 2, April 2, (In thousands) Inventory (FIFO basis) $ 67,524 $ 52,735 LIFO reserve (1,973 ) (1,486 ) Net inventory $ 65,551 $ 51,249

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	3 Months Ended
	Jul. 02, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of intangible assets and goodwill	A summary of our intangible assets as of July 2, 2017 and April 2, 2017 is as follows: July 2, 2017 April 2, 2017 (In thousands) Gross Amount Accumulated Amortization Net Gross Amount Accumulated Amortization Net Finite-life intangible assets Customer relationships 78,383 (8,995 ) 69,388 78,383 (7,854 ) 70,529 Trademarks and trade names 6,045 (1,965 ) 4,080 6,045 (1,790 ) 4,255 Other finite-life intangible assets 3,648 (2,889 ) 759 3,648 (2,776 ) 872 Total finite-life intangible assets 88,076 (13,849 ) 74,227 88,076 (12,420 ) 75,656 Indefinite-life intangible assets 1,227 — 1,227 1,227 — 1,227 Total intangible assets $ 89,303 $ (13,849 ) $ 75,454 $ 89,303 $ (12,420 ) $ 76,883

Debt (Tables)

Debt (Tables)	3 Months Ended
	Jul. 02, 2017
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments	Debt at July 2, 2017 and April 2, 2017 consisted of the following: July 2, April 2, (In thousands) Senior secured term loan $ 91,250 $ 93,125 Senior secured revolving loan 30,000 10,000 Total debt 121,250 103,125 Less: unamortized debt issuance costs (476 ) (510 ) Total debt, net of debt issuance costs 120,774 102,615 Less: current portion of long-term debt (8,614 ) (7,989 ) Total long-term debt $ 112,160 $ 94,626

Share Based Compensation (Table

Share Based Compensation (Tables)	3 Months Ended
	Jul. 02, 2017
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 three months ended July 2, 2017 : Shares Weighted- Average Grant Date Fair Value Unvested at beginning of period 28,853 $ 43.10 Granted 35,075 47.50 Forfeited or expired (9,220 ) 45.45 Unvested at end of period 54,708 $ 45.52

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Jul. 02, 2017
Segment Reporting [Abstract]
Summary of Segment Information	(In thousands) Industrial Water Treatment Health and Nutrition Total Three months ended July 2, 2017: Sales $ 64,027 $ 38,224 $ 31,480 $ 133,731 Gross profit 8,973 11,203 5,823 25,999 Selling, general, and administrative expenses 5,756 5,257 4,753 15,766 Operating income 3,217 5,946 1,070 10,233 Three months ended July 3, 2016: Sales $ 63,788 $ 35,636 $ 31,950 $ 131,374 Gross profit 10,422 10,629 7,165 28,216 Selling, general, and administrative expenses 5,395 5,064 4,667 15,126 Operating income (loss) 5,027 5,565 2,498 13,090

Basis of Presentation Basis of

Basis of Presentation Basis of Presentation (Details)	3 Months Ended	12 Months Ended
	Jul. 02, 2017	Apr. 02, 2017
Basis of Presentation [Abstract]
Fiscal Period Duration	364 days	364 days

Earnings per Share (Details)

Earnings per Share (Details) - shares	3 Months Ended
	Jul. 02, 2017	Jul. 03, 2016
Summary of basic and diluted EPS
Weighted-average common shares outstanding—basic	10,582,989	10,513,139
Dilutive impact of performance units and restricted stock	32,703	42,143
Weighted-average common shares outstanding—diluted	10,615,692	10,555,282

Earnings per Share (Details Tex

Earnings per Share (Details Textual) - shares	3 Months Ended
	Jul. 02, 2017	Jul. 03, 2016
Earnings Per Share [Abstract]
Shares or stock options excluded from the calculation of diluted EPS	0	0

Derivative Instruments (Details

Derivative Instruments (Details) - Interest Rate Swap [Member] - USD ($) $ in Thousands	3 Months Ended
	Jul. 02, 2017	Jul. 03, 2016	Apr. 02, 2017
Derivative [Line Items]
Derivative Instruments, Gain Recognized in Other Comprehensive Income (Loss), Effective Portion	$ (68)	$ 0
Cash Flow Hedge Derivative Instrument Assets at Fair Value	400		$ 500
Debt Instrument, Redemption, Period One [Member]
Derivative [Line Items]
Derivative, Notional Amount	40,000
Debt Instrument, Redemption, Period Two [Member]
Derivative [Line Items]
Derivative, Notional Amount	30,000
Debt Instrument, Redemption, Period Three [Member]
Derivative [Line Items]
Derivative, Notional Amount	$ 20,000

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Jul. 02, 2017	Apr. 02, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred compensation plan assets	$ 1,386	$ 0
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred compensation plan assets	1,386	0
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred compensation plan assets	0	0
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred compensation plan assets	0	0
Interest Rate Swap [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swap	388	502
Interest Rate Swap [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swap	0	0
Interest Rate Swap [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swap	388	502
Interest Rate Swap [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swap	$ 0	$ 0

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Jul. 02, 2017	Apr. 02, 2017
Summary of Inventories
Inventory (FIFO basis)	$ 67,524	$ 52,735
LIFO reserve	(1,973)	(1,486)
Net inventory	$ 65,551	$ 51,249

Inventories (Details Textual)

Inventories (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Jul. 02, 2017	Jul. 03, 2016	Apr. 02, 2017
Inventory Disclosure [Abstract]
Finished goods (LIFO basis)	$ 45,300		$ 37,000
Increase (decrease) in LIFO reserve	$ 500	$ 0

Goodwill and Intangible Asset33

Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands	Jul. 02, 2017	Apr. 02, 2017
Summary of Finite-Lived Intangible Assets [Line Items]
Finite-life intangible assets, Gross Carrying Amount	$ 88,076	$ 88,076
Finite-life intangible assets, Accumulated Amortization	(13,849)	(12,420)
Total finite-life intangible assets, Net	74,227	75,656
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	89,303	89,303
Total intangible assets, net	75,454	76,883
Customer Relationships [Member]
Summary of Finite-Lived Intangible Assets [Line Items]
Finite-life intangible assets, Gross Carrying Amount	78,383	78,383
Finite-life intangible assets, Accumulated Amortization	(8,995)	(7,854)
Total finite-life intangible assets, Net	69,388	70,529
Trademarks [Member]
Summary of Finite-Lived Intangible Assets [Line Items]
Finite-life intangible assets, Gross Carrying Amount	6,045	6,045
Finite-life intangible assets, Accumulated Amortization	(1,965)	(1,790)
Total finite-life intangible assets, Net	4,080	4,255
Other finite-life intangible assets [Member]
Summary of Finite-Lived Intangible Assets [Line Items]
Finite-life intangible assets, Gross Carrying Amount	3,648	3,648
Finite-life intangible assets, Accumulated Amortization	(2,889)	(2,776)
Total finite-life intangible assets, Net	$ 759	$ 872

Goodwill and Intangible Asset34

Goodwill and Intangible Assets (Details Textual) - USD ($) $ in Thousands	Jul. 02, 2017	Apr. 02, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 97,556	$ 97,556

Debt (Details)

Debt (Details) - USD ($) $ in Thousands	Jul. 02, 2017	Apr. 02, 2017
Debt Instrument [Line Items]
Long-term Debt	$ 121,250	$ 103,125
Less: unamortized debt issuance costs	(476)	(510)
Total debt, net of debt issuance costs	120,774	102,615
Less: current portion of long-term debt	(8,614)	(7,989)
Total long-term debt	112,160	94,626
Term Loan [Member]
Debt Instrument [Line Items]
Long-term Debt	91,250	93,125
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 30,000	$ 10,000

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
	Jul. 02, 2017	Jul. 03, 2016	Apr. 02, 2017
Income Tax [Abstract]
Effective Income Tax Rate Reconciliation, Percent	38.50%	38.50%
Unrecognized Tax Benefits	$ 0.8		$ 0.8
Business Combination, Indemnification Assets, Amount as of Acquisition Date	0.8		0.8
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued	$ 0.1		$ 0.1

Share Based Compensation (Detai

Share Based Compensation (Details) - Performance-Based Restricted Stock [Member]	3 Months Ended
	Jul. 02, 2017$ / 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	28,853
Granted (Shares) | shares	35,075
Forfeited or expired (Shares) | shares	(9,220)
Unvested at end of period (Shares) | shares	54,708
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) | $ / shares	$ 43.10
Granted, Weighted average grant date fair value (usd per share) | $ / shares	47.50
Forfeited or expired, Weighted average grant date fair value (usd per share) | $ / shares	45.45
Ending Balance, Weighted average grant date fair value (usd per share) | $ / shares	$ 45.52

Share Based Compensation (Det38

Share Based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Jul. 02, 2017	Jul. 03, 2016
Performance-Based Restricted Stock [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)	57,855
Vesting period	2 years
Compensation expense	$ 0.2	$ 0.4
Restricted Stock Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	1 year
Compensation expense	$ 0.1	$ 0.1
Restricted stock awards outstanding (shares)	8,092
Restricted stock awards, weighted average exercise price (usd per share)	$ 43.24

Share Repurchase Program (Detai

Share Repurchase Program (Details) - shares	3 Months Ended
	Jul. 02, 2017	Jul. 03, 2016
Share Repurchase Program [Abstract]
Stock Repurchase Program, Number of Shares Authorized to be Repurchased	300,000
Stock Repurchased During Period, Shares	0	0
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased	112,546

Segment Information (Details)

Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 02, 2017	Jul. 03, 2016
Segment Reporting Information [Line Items]
Sales	$ 133,731	$ 131,374
Gross profit	25,999	28,216
Selling, general, and administrative expenses	15,766	15,126
Operating income	10,233	13,090
Industrial [Member]
Segment Reporting Information [Line Items]
Sales	64,027	63,788
Gross profit	8,973	10,422
Selling, general, and administrative expenses	5,756	5,395
Operating income	3,217	5,027
Water Treatment [Member]
Segment Reporting Information [Line Items]
Sales	38,224	35,636
Gross profit	11,203	10,629
Selling, general, and administrative expenses	5,257	5,064
Operating income	5,946	5,565
Health and Nutrition [Member]
Segment Reporting Information [Line Items]
Sales	31,480	31,950
Gross profit	5,823	7,165
Selling, general, and administrative expenses	4,753	4,667
Operating income	$ 1,070	$ 2,498

Segment Information (Details Te

Segment Information (Details Textual) $ in Millions	3 Months Ended
	Jul. 02, 2017USD ($)SegmentCustomer
Segment Reporting Information [Line Items]
Number of reportable segments (segments)	3
Intersegment sales | $	$ 0
Number of operating segments aggregated (segments)	0
Number of customer representing 10 percent or more of revenue (customers) | Customer	0