Hawkins (HWKN) 10-Q 31 Jul 20 2021 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Jun. 28, 2020	Jul. 24, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 28, 2020
Document Transition Report	false
Entity File Number	0-7647
Entity Registrant Name	HAWKINS, INC.
Entity Incorporation, State or Country Code	MN
Entity Tax Identification Number	41-0771293
Entity Address, Address Line One	2381 Rosegate
Entity Address, City or Town	Roseville
Entity Address, State or Province	MN
Entity Address, Postal Zip Code	55113
City Area Code	612
Local Phone Number	331-6910
Title of 12(b) Security	Common Stock, par value $.05 per share
Trading Symbol	HWKN
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		10,664,763
Entity Central Index Key	0000046250
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--03-28

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 28, 2020	Mar. 29, 2020
Assets, Current [Abstract]
Cash and cash equivalents	$ 4,510	$ 4,277
Trade receivables — less allowance for doubtful accounts: $530 as of June 28, 2020 and $784 as of March 29, 2020	69,453	67,391
Inventories	63,389	54,436
Prepaid expenses and other current assets	3,053	4,927
Total current assets	140,405	131,031
Property, Plant and Equipment [Abstract]
PROPERTY, PLANT, AND EQUIPMENT:	271,990	267,221
Less accumulated depreciation	144,929	140,877
Net property, plant, and equipment	127,061	126,344
Other Assets [Abstract]
Right-of-use assets	8,755	9,090
Goodwill	58,440	58,440
Intangible assets, net	59,384	60,653
Other	5,417	3,770
Total other assets	131,996	131,953
Total assets	399,462	389,328
Liabilities, Current [Abstract]
Accounts payable — trade	31,069	34,129
Accrued payroll and employee benefits	6,827	13,538
Income tax payable	4,323	59
Current portion of long-term debt	9,907	9,907
Short-term lease liability	1,493	1,523
Container deposits	1,408	1,376
Other current liabilities	1,654	1,688
Total current liabilities	56,681	62,220
LONG-TERM DEBT, LESS CURRENT PORTION	55,775	49,751
LONG-TERM LEASE LIABILITY	7,306	7,649
PENSION WITHDRAWAL LIABILITY	4,892	4,978
DEFERRED INCOME TAXES	25,102	25,106
OTHER LONG-TERM LIABILITIES	6,277	6,140
Total liabilities	156,033	155,844
Commitments and Contingencies	0	0
SHAREHOLDERS’ EQUITY:
Common stock; authorized: 30,000,000 shares of $0.05 par value; 10,515,835 and 10,512,229 shares issued and outstanding as of June 28, 2020 and March 29, 2020, respectively	526	526
Additional paid-in capital	50,736	50,090
Retained earnings	192,256	182,947
Accumulated other comprehensive loss	(89)	(79)
Total shareholders’ equity	243,429	233,484
Total liabilities and shareholders’ equity	$ 399,462	$ 389,328

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands	Jun. 28, 2020	Mar. 29, 2020
Statement of Financial Position [Abstract]
Allowance for Doubtful Accounts Receivable, Current	$ 530	$ 784
Common Stock, Shares Authorized	30,000,000	30,000,000
Common stock, par value (usd per share)	$ 0.05	$ 0.05
Common Stock, Shares, Issued	10,515,835	10,512,229
Common Stock, Shares, Outstanding	10,515,835	10,512,229

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Jun. 28, 2020	Jun. 30, 2019
Income Statement [Abstract]
Sales	$ 143,172	$ 147,336
Cost of sales	(112,196)	(118,539)
Gross profit	30,976	28,797
Selling, general and administrative expenses	(15,038)	(14,836)
Operating income	15,938	13,961
Interest expense, net	(380)	(763)
Other income	477	117
Income before income taxes	16,035	13,315
Income tax expense	(4,247)	(3,508)
Net income	$ 11,788	$ 9,807
Weighted average number of shares outstanding - basic	10,515,728	10,604,306
Weighted average number of shares outstanding - diluted	10,642,673	10,665,709
Basic earnings per share
Basic earnings per share	$ 1.12	$ 0.92
Diluted earnings per share
Diluted earnings per share	1.11	0.92
Cash dividends declared per common share	$ 0.2325	$ 0.2300

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Jun. 28, 2020	Jun. 30, 2019
Unrealized loss on interest rate swap	$ (10)	$ (179)
Net income	11,788	9,807
Other comprehensive income (loss), net of tax:
Unrealized loss on interest rate swap	(10)	(179)
Total comprehensive income	$ 11,778	$ 9,628

Condensed Consolidated Statem_3

Condensed Consolidated Statement of Shareholder's Equity Statement - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]
Shares outstanding, beginning balance at Mar. 31, 2019		10,592,450
Stockholders' equity, beginning balance at Mar. 31, 2019	$ 217,861	$ 530	$ 52,609	$ 164,405	$ 317
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cash dividends declared and paid	(2,460)			(2,460)
Share-based compensation expense	509		509
Vesting of restricted stock (shares)		27,620
Vesting of restricted stock	0	$ 1	(1)
Shares surrendered for payroll taxes (shares)		9,160
Shares surrendered for payroll taxes	$ (343)	$ 1	(342)
Shares repurchased (shares)	(47,136)	(47,136)
Shares repurchased	$ (1,803)	$ (2)	(1,801)
Unrealized loss on interest rate swap	(179)				(179)
Net income	9,807			9,807
Shares outstanding, ending balance at Jun. 30, 2019		10,563,774
Stockholders' equity, ending balance at Jun. 30, 2019	223,392	$ 528	50,974	171,752	138
Shares outstanding, beginning balance at Mar. 29, 2020		10,512,229
Stockholders' equity, beginning balance at Mar. 29, 2020	233,484	$ 526	50,090	182,947	(79)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cash dividends declared and paid	(2,479)			(2,479)
Share-based compensation expense	700		700
Vesting of restricted stock (shares)		5,263
Vesting of restricted stock	0	$ 0	0
Shares surrendered for payroll taxes (shares)		(1,657)
Shares surrendered for payroll taxes	$ (54)	$ 0	(54)
Shares repurchased (shares)	0
Shares repurchased	$ 0
Unrealized loss on interest rate swap	(10)				(10)
Net income	11,788			11,788
Shares outstanding, ending balance at Jun. 28, 2020		10,515,835
Stockholders' equity, ending balance at Jun. 28, 2020	$ 243,429	$ 526	$ 50,736	$ 192,256	$ (89)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Jun. 28, 2020	Jun. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 11,788	$ 9,807
Changes in operating accounts providing (using) cash:
Depreciation and amortization	5,484	5,353
Operating leases	493	515
Gain on deferred compensation assets	(477)	(117)
Stock compensation expense	700	509
Other	22	29
Trade receivables	(1,992)	(5,044)
Inventories	(8,952)	1,789
Accounts payable	(2,354)	2,742
Accrued liabilities	(6,689)	(7,667)
Lease liabilities	(513)	(623)
Income taxes	4,263	3,510
Other	(220)	(693)
Net cash provided by operating activities	1,553	10,110
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant, and equipment	(4,848)	(9,159)
Other	61	63
Net cash used in investing activities	(4,787)	(9,096)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash dividends declared and paid	(2,479)	(2,460)
Shares surrendered for payroll taxes	(54)	(343)
Shares repurchased	0	(1,803)
Net proceeds from revolver borrowings	6,000	0
Net cash provided by (used in) financing activities	3,467	(4,606)
Cash and Cash Equivalents, Period Increase (Decrease), Total	233	(3,592)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	4,277	9,199
CASH AND CASH EQUIVALENTS, END OF PERIOD	4,510	5,607
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for interest	288	756
Noncash investing activities - capital expenditures in accounts payable	$ 334	$ 410

Accounting Policies

Accounting Policies	3 Months Ended
	Jun. 28, 2020
Accounting Policies [Abstract]
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	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, 2020 , 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 results of operations for the three months ended June 28, 2020 are not necessarily indicative of the results that may be expected for the full year. References to fiscal 2019 refer to the fiscal year ended March 31, 2019, references to fiscal 2020 refer to the fiscal year ended March 29, 2020 and references to fiscal 2021 refer to the fiscal year ending March 28, 2021. Use of Estimates. The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, particularly receivables, inventories, property, plant and equipment, right-of-use assets, goodwill, intangibles, accrued expenses, short-term and long-term lease liability, income taxes and related accounts and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Accounting Policies. 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 March 29, 2020 , previously filed with the SEC. There has been no significant change in our accounting policies since the end of fiscal 2020. Recently Adopted Accounting Pronouncements On March 30, 2020, we adopted Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments . The amendments in this update replaced the incurred loss impairment methodology in previous GAAP with a methodology that reflects expected credit losses on instruments within its scope, including trade receivables. This update is intended to provide financial statement users with more decision-useful information about the expected credit losses. Our adoption of this ASU impacted our method for calculating and estimating our allowance for doubtful accounts but did not have a material impact to our financial position or results of operations.

Revenue

Revenue	3 Months Ended
	Jun. 28, 2020
Disaggregation of Revenue [Abstract]
Revenue from Contract with Customer	Revenue Our revenue arrangements generally consist of a single performance obligation to transfer promised goods or services. We disaggregate revenues from contracts with customers by operating segments as well as types of products sold. Reporting by operating segment is pertinent to understanding our revenues, as it aligns to how we review the financial performance of our operations. Types of products sold within each operating segment help us to further evaluate the financial performance of our segments. The following tables disaggregate external customer net sales by major revenue stream for the three months ended June 28, 2020 and June 30, 2019: Three months ended June 28, 2020 (In thousands) Industrial Water Health and Total Bulk / Distributed specialty products (1) $ 8,824 $ 3,875 $ 25,945 $ 38,644 Manufactured, blended or repackaged products (2) 61,842 35,506 6,098 103,446 Other 836 333 (87) 1,082 Total external customer sales $ 71,502 $ 39,714 $ 31,956 $ 143,172 Three months ended June 30, 2019 (In thousands) Industrial Water Health and Total Bulk / Distributed specialty products (1) $ 15,013 $ 4,708 $ 24,605 $ 44,326 Manufactured, blended or repackaged products (2) 59,471 38,150 4,144 101,765 Other 841 394 10 1,245 Total external customer sales $ 75,325 $ 43,252 $ 28,759 $ 147,336 (1) For our Industrial and Water Treatment segments, this line includes our bulk products that we do not modify in any way, but receive, store, and ship from our facilities, or direct ship to our customers in large quantities. For our Health and Nutrition segment, this line includes our non-manufactured distributed specialty products, which may be sold out of one of our facilities or direct shipped to our customers. (2) For our Industrial and Water Treatment segments, this line includes our non-bulk specialty products that we either manufacture, blend, repackage, resell in their original form, or direct ship to our customers in smaller quantities, and services we provide for our customers. For our Health and Nutrition segment, this line includes products manufactured, processed or repackaged in our facility and/or with our equipment.

Earnings per Share

Earnings per Share	3 Months Ended
	Jun. 28, 2020
Earnings Per Share [Abstract]
Earnings per Share	Earnings per ShareBasic earnings per share (“EPS”) is computed by dividing net earnings by the weighted-average number of common shares outstanding. Diluted EPS includes the dilutive impact of incremental shares assumed to be issued as performance units and restricted stock. Basic and diluted EPS were calculated using the following: Three Months Ended June 28, June 30, Weighted-average common shares outstanding—basic 10,515,728 10,604,306 Dilutive impact of performance units and restricted stock 126,945 61,403 Weighted-average common shares outstanding—diluted 10,642,673 10,665,709 For each of the periods presented, there were no shares excluded from the calculation of weighted-average common shares for diluted EPS.

Derivative Instruments

Derivative Instruments	3 Months Ended
	Jun. 28, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments and Hedging Activities Disclosure [Text Block]	Derivative Instruments We have 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 $20 million swap agreement will terminate on 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 June 28, 2020, we recorded a nominal amount in other comprehensive loss related to unrealized losses (net of tax) on the cash flow hedge described above. For the three months ended June 30, 2019, we recorded $0.2 million in other comprehensive loss related to unrealized losses (net of tax) on the cash flow hedge. Included in other current liabilities on our condensed consolidated balance sheet was $0.1 million as of June 28, 2020 and March 29, 2020. 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.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Jun. 28, 2020
Fair Value Disclosures [Abstract]
Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring [Text Block]	Fair Value Measurements Our financial assets and liabilities are measured at fair value at 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. As of June 28, 2020, the assets held in a deferred compensation retirement plan are classified as other long-term assets on our balance sheet, with the portion of the plan assets expected to be paid within twelve months classified as current assets and the interest rate swap is classified as other current liabilities 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 tables summarize the balances of assets and liabilities measured at fair value on a recurring basis as of June 28, 2020 and March 29, 2020. 0 (In thousands) June 28, 2020 March 29, 2020 Assets Deferred compensation plan assets Level 1 $ 5,279 $ 3,564 Liabilities Interest rate swap Level 2 $ 122 $ 108

Assets Held for Sale

Assets Held for Sale	3 Months Ended
	Jun. 28, 2020
Property, Plant and Equipment Assets Held-for-sale Disclosure [Abstract]
Disclosure of Long Lived Assets Held-for-sale [Table Text Block]	Assets Held for Sale In the first quarter of fiscal 2021, management determined that an office building that was previously held for sale no longer met the criteria to be classified as such. As a result, the $0.9 million net book value was reclassified out of “Prepaid expenses and other current assets” and is now classified as held and used within Property, Plant and Equipment on our balance sheet.

Inventories

Inventories	3 Months Ended
	Jun. 28, 2020
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories at June 28, 2020 and March 29, 2020 consisted of the following: June 28, March 29, (In thousands) Inventory (FIFO basis) $ 69,116 $ 60,090 LIFO reserve (5,727) (5,654) Net inventory $ 63,389 $ 54,436 The first in, first out (“FIFO”) value of inventories accounted for under the last in, first out (“LIFO”) method was $46.7 million at June 28, 2020 and $43.3 million at March 29, 2020. The remainder of the inventory was valued and accounted for under the FIFO method.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	3 Months Ended
	Jun. 28, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Goodwill and Intangible Assets The carrying amount of goodwill was $58.4 million as of June 28, 2020 and March 29, 2020, of which $44.9 million was related to our Health and Nutrition segment, $7.0 million was related to our Water Treatment segment, and $6.5 million was related to our Industrial segment. A summary of our intangible assets as of June 28, 2020 and March 29, 2020 is as follows: June 28, 2020 March 29, 2020 (In thousands) Gross Accumulated Net Gross Accumulated Net Finite-life intangible assets Customer relationships $ 78,383 $ (22,523) $ 55,860 $ 78,383 $ (21,400) $ 56,983 Trademarks and trade names 6,045 (3,772) 2,273 6,045 (3,640) 2,405 Other finite-life intangible assets 3,648 (3,624) 24 3,648 (3,610) 38 Total finite-life intangible assets 88,076 (29,919) 58,157 88,076 (28,650) 59,426 Indefinite-life intangible assets 1,227 — 1,227 1,227 — 1,227 Total intangible assets $ 89,303 $ (29,919) $ 59,384 $ 89,303 $ (28,650) $ 60,653

Debt

Debt	3 Months Ended
	Jun. 28, 2020
Debt Disclosure [Abstract]
Debt	Debt Debt at June 28, 2020 and March 29, 2020 consisted of the following: June 28, March 29, (In thousands) Senior secured revolving loan $ 66,000 $ 60,000 Less: unamortized debt issuance costs (318) (342) Total debt, net of debt issuance costs 65,682 59,658 Less: current portion of long-term debt (9,907) (9,907) Total long-term debt $ 55,775 $ 49,751

Income Taxes

Income Taxes	3 Months Ended
	Jun. 28, 2020
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, and with few exceptions, state and localincome tax jurisdictions. Our effective tax rate for the three months ended June 28, 2020 was 26.5% and was 26.3% for the three months ended June 30, 2019. The effective tax rate is impacted by projected levels of annual taxable income, permanent items, and state taxes.

Leases

Leases	3 Months Ended
	Jun. 28, 2020
Leases [Abstract]
Lessee, Operating Leases [Text Block]	Leases Lease Obligations. As of June 28, 2020, we were obligated under operating lease agreements for certain manufacturing facilities, warehouse space, the land on which some of our facilities sit, vehicles and information technology equipment. Our leases have remaining lease terms of 1 year to 24 years, some of which include options to extend the lease for up to 10 years. As of June 28, 2020, our operating lease components with initial or remaining terms in excess of one year were classified on the condensed consolidated balance sheet within right of use assets, short-term lease liability and long-term lease liability. Expense for leases less than 12 months for the three months ended June 28, 2020 was not material. Total lease expense was $0.7 million for the three months ended June 28, 2020 and June 30, 2019. Other information related to our operating leases was as follows: June 28, 2020 Lease Term and Discount Rate Weighted average remaining lease term (years) 8.67 Weighted average discount rate 4.0 % Maturities of lease liabilities as of June 28, 2020 were as follows: (In thousands) Operating Leases Remaining fiscal 2021 $ 1,727 Fiscal 2022 1,547 Fiscal 2023 1,297 Fiscal 2024 1,119 Fiscal 2025 1,126 Thereafter 3,838 Total $ 10,654 Less: Interest (1,855) Present value of lease liabilities $ 8,799

Share Based Compensation

Share Based Compensation	3 Months Ended
	Jun. 28, 2020
Share-based Payment Arrangement [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 2021 and fiscal 2020. 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 62,385 shares in the aggregate for fiscal 2021. The restricted shares issued, if any, will fully vest approximately 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 June 28, 2020: Shares Weighted- Unvested at beginning of period 74,515 $ 34.27 Granted 64,813 37.37 Vested (5,263) 31.35 Unvested at end of period 134,065 $ 35.88 We recorded compensation expense related to performance share units and restricted stock of $0.5 million for the three months ended June 28, 2020 and $0.3 million the three months ended June 30, 2019. Substantially all of the compensation expense was recorded in selling, general and administrative expenses in the condensed consolidated statements of income. Restricted Stock Awards .

Share Repurchase Program

Share Repurchase Program	3 Months Ended
	Jun. 28, 2020
Investment Company, Capital Share Transactions, Stock Repurchased [Abstract]
Share Repurchase Program	Share Repurchase Program Our Board has authorized the repurchase of up to 800,000 shares of our outstanding common stock for cash on the open market or in privately negotiated transactions subject to applicable securities laws and regulations. Upon purchase of the shares, we reduce our common stock for the par value of the shares with the excess applied against additional paid-in capital. During the three months ended June 28, 2020, no shares were repurchased. During the three months ended June 30, 2019, we repurchased 47,136 shares at an aggregate purchase price of $1.8 million. As of June 28, 2020, 358,797 shares remained available to be repurchased under the share repurchase program.

Litigation, Commitments and Con

Litigation, Commitments and Contingencies	3 Months Ended
	Jun. 28, 2020
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. Environmental Remediation. During fiscal 2018, we recorded a liability of $0.6 million related to estimated remediation expenses associated with existing trichloroethylene contamination at our Minneapolis facility. The liability was decreased to $0.1 million as of June 28, 2020 and March 29, 2020, to reflect payments made and management’s revised expectations related to the cost of this environmental remediation. The liability is not discounted as management expects to incur these expenses within the next twelve months. Given the many uncertainties involved in assessing environmental claims, our reserves may prove to be insufficient. While it is possible that additional expenses related to remediation will be incurred in future periods if currently unknown issues arise, we are unable to estimate the extent of any further financial impact.

Segment Information

Segment Information	3 Months Ended
	Jun. 28, 2020
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 Annual Report on Form 10-K for the fiscal year ended March 29, 2020 . 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 Health and Nutrition Total Three months ended June 28, 2020: Sales $ 71,502 $ 39,714 $ 31,956 $ 143,172 Gross profit 12,457 11,339 7,180 30,976 Selling, general, and administrative expenses 6,067 5,293 3,678 15,038 Operating income 6,390 6,046 3,502 15,938 Three months ended June 30, 2019: Sales $ 75,325 $ 43,252 $ 28,759 $ 147,336 Gross profit 10,915 12,091 5,791 28,797 Selling, general, and administrative expenses 6,096 4,988 3,752 14,836 Operating income 4,819 7,103 2,039 13,961 No significant changes to identifiable assets by segment occurred during the three months ended June 28, 2020.

Subsequent Events

Subsequent Events	3 Months Ended
	Jun. 28, 2020
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On July 28, 2020, we acquired substantially all the assets of American Development Corporation of Tennessee, Inc. (“ADC”) for $25 million under the terms of an asset purchase agreement among us, ADC and the ADC shareholders. ADC is a water treatment chemical distribution company focused largely in Tennessee, Georgia and Kentucky. The results of operations and the assets, including the goodwill associated with this acquisition, will be included as part of our Water Treatment segment from the date of acquisition forward. The purchase accounting for this acquisition has not yet been completed.

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Jun. 28, 2020
Disaggregation of Revenue [Abstract]
Disaggregation of Revenue [Table Text Block]	The following tables disaggregate external customer net sales by major revenue stream for the three months ended June 28, 2020 and June 30, 2019: Three months ended June 28, 2020 (In thousands) Industrial Water Health and Total Bulk / Distributed specialty products (1) $ 8,824 $ 3,875 $ 25,945 $ 38,644 Manufactured, blended or repackaged products (2) 61,842 35,506 6,098 103,446 Other 836 333 (87) 1,082 Total external customer sales $ 71,502 $ 39,714 $ 31,956 $ 143,172 Three months ended June 30, 2019 (In thousands) Industrial Water Health and Total Bulk / Distributed specialty products (1) $ 15,013 $ 4,708 $ 24,605 $ 44,326 Manufactured, blended or repackaged products (2) 59,471 38,150 4,144 101,765 Other 841 394 10 1,245 Total external customer sales $ 75,325 $ 43,252 $ 28,759 $ 147,336 (1) For our Industrial and Water Treatment segments, this line includes our bulk products that we do not modify in any way, but receive, store, and ship from our facilities, or direct ship to our customers in large quantities. For our Health and Nutrition segment, this line includes our non-manufactured distributed specialty products, which may be sold out of one of our facilities or direct shipped to our customers. (2) For our Industrial and Water Treatment segments, this line includes our non-bulk specialty products that we either manufacture, blend, repackage, resell in their original form, or direct ship to our customers in smaller quantities, and services we provide for our customers. For our Health and Nutrition segment, this line includes products manufactured, processed or repackaged in our facility and/or with our equipment.

Earnings per Share (Tables)

Earnings per Share (Tables)	3 Months Ended
	Jun. 28, 2020
Earnings Per Share [Abstract]
Summary of basic and diluted EPS	Basic and diluted EPS were calculated using the following: Three Months Ended June 28, June 30, Weighted-average common shares outstanding—basic 10,515,728 10,604,306 Dilutive impact of performance units and restricted stock 126,945 61,403 Weighted-average common shares outstanding—diluted 10,642,673 10,665,709

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Jun. 28, 2020
Fair Value Disclosures [Abstract]
Fair Value, Liabilities Measured on Recurring Basis [Table Text Block]	The following tables summarize the balances of assets and liabilities measured at fair value on a recurring basis as of June 28, 2020 and March 29, 2020. 0 (In thousands) June 28, 2020 March 29, 2020 Assets Deferred compensation plan assets Level 1 $ 5,279 $ 3,564 Liabilities Interest rate swap Level 2 $ 122 $ 108

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Jun. 28, 2020
Inventory Disclosure [Abstract]
Summary of Inventories	Inventories at June 28, 2020 and March 29, 2020 consisted of the following: June 28, March 29, (In thousands) Inventory (FIFO basis) $ 69,116 $ 60,090 LIFO reserve (5,727) (5,654) Net inventory $ 63,389 $ 54,436

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	3 Months Ended
	Jun. 28, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of intangible assets and goodwill	A summary of our intangible assets as of June 28, 2020 and March 29, 2020 is as follows: June 28, 2020 March 29, 2020 (In thousands) Gross Accumulated Net Gross Accumulated Net Finite-life intangible assets Customer relationships $ 78,383 $ (22,523) $ 55,860 $ 78,383 $ (21,400) $ 56,983 Trademarks and trade names 6,045 (3,772) 2,273 6,045 (3,640) 2,405 Other finite-life intangible assets 3,648 (3,624) 24 3,648 (3,610) 38 Total finite-life intangible assets 88,076 (29,919) 58,157 88,076 (28,650) 59,426 Indefinite-life intangible assets 1,227 — 1,227 1,227 — 1,227 Total intangible assets $ 89,303 $ (29,919) $ 59,384 $ 89,303 $ (28,650) $ 60,653

Debt (Tables)

Debt (Tables)	3 Months Ended
	Jun. 28, 2020
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments	Debt at June 28, 2020 and March 29, 2020 consisted of the following: June 28, March 29, (In thousands) Senior secured revolving loan $ 66,000 $ 60,000 Less: unamortized debt issuance costs (318) (342) Total debt, net of debt issuance costs 65,682 59,658 Less: current portion of long-term debt (9,907) (9,907) Total long-term debt $ 55,775 $ 49,751

Leases (Tables)

Leases (Tables)	3 Months Ended
	Jun. 28, 2020
Leases [Abstract]
Other information related to our operating leases [Table Text Block]	Other information related to our operating leases was as follows: June 28, 2020 Lease Term and Discount Rate Weighted average remaining lease term (years) 8.67 Weighted average discount rate 4.0 %
Lessee, Operating Lease, Liability, Maturity [Table Text Block]	Maturities of lease liabilities as of June 28, 2020 were as follows: (In thousands) Operating Leases Remaining fiscal 2021 $ 1,727 Fiscal 2022 1,547 Fiscal 2023 1,297 Fiscal 2024 1,119 Fiscal 2025 1,126 Thereafter 3,838 Total $ 10,654 Less: Interest (1,855) Present value of lease liabilities $ 8,799

Share Based Compensation (Table

Share Based Compensation (Tables)	3 Months Ended
	Jun. 28, 2020
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 June 28, 2020: Shares Weighted- Unvested at beginning of period 74,515 $ 34.27 Granted 64,813 37.37 Vested (5,263) 31.35 Unvested at end of period 134,065 $ 35.88

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Jun. 28, 2020
Segment Reporting [Abstract]
Summary of Segment Information	(In thousands) Industrial Water Health and Nutrition Total Three months ended June 28, 2020: Sales $ 71,502 $ 39,714 $ 31,956 $ 143,172 Gross profit 12,457 11,339 7,180 30,976 Selling, general, and administrative expenses 6,067 5,293 3,678 15,038 Operating income 6,390 6,046 3,502 15,938 Three months ended June 30, 2019: Sales $ 75,325 $ 43,252 $ 28,759 $ 147,336 Gross profit 10,915 12,091 5,791 28,797 Selling, general, and administrative expenses 6,096 4,988 3,752 14,836 Operating income 4,819 7,103 2,039 13,961

Revenue (Details)

Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 28, 2020	Jun. 30, 2019
Disaggregation of Revenue [Line Items]
Revenue	$ 143,172	$ 147,336
Bulk / Distributed specialty products [Member]
Disaggregation of Revenue [Line Items]
Revenue	38,644	44,326
Manufactured, blended or repackaged products [Member]
Disaggregation of Revenue [Line Items]
Revenue	103,446	101,765
Other [Member]
Disaggregation of Revenue [Line Items]
Revenue	1,082	1,245
Industrial [Member]
Disaggregation of Revenue [Line Items]
Revenue	71,502	75,325
Industrial [Member] | Bulk / Distributed specialty products [Member]
Disaggregation of Revenue [Line Items]
Revenue	8,824	15,013
Industrial [Member] | Manufactured, blended or repackaged products [Member]
Disaggregation of Revenue [Line Items]
Revenue	61,842	59,471
Industrial [Member] | Other [Member]
Disaggregation of Revenue [Line Items]
Revenue	836	841
Water Treatment [Member]
Disaggregation of Revenue [Line Items]
Revenue	39,714	43,252
Water Treatment [Member] | Bulk / Distributed specialty products [Member]
Disaggregation of Revenue [Line Items]
Revenue	3,875	4,708
Water Treatment [Member] | Manufactured, blended or repackaged products [Member]
Disaggregation of Revenue [Line Items]
Revenue	35,506	38,150
Water Treatment [Member] | Other [Member]
Disaggregation of Revenue [Line Items]
Revenue	333	394
Health and Nutrition [Member]
Disaggregation of Revenue [Line Items]
Revenue	31,956	28,759
Health and Nutrition [Member] | Bulk / Distributed specialty products [Member]
Disaggregation of Revenue [Line Items]
Revenue	25,945	24,605
Health and Nutrition [Member] | Manufactured, blended or repackaged products [Member]
Disaggregation of Revenue [Line Items]
Revenue	6,098	4,144
Health and Nutrition [Member] | Other [Member]
Disaggregation of Revenue [Line Items]
Revenue	$ (87)	$ 10

Earnings per Share (Details)

Earnings per Share (Details) - shares	3 Months Ended
	Jun. 28, 2020	Jun. 30, 2019
Summary of basic and diluted EPS
Weighted-average common shares outstanding—basic	10,515,728	10,604,306
Dilutive impact of performance units and restricted stock	126,945	61,403
Weighted-average common shares outstanding—diluted	10,642,673	10,665,709

Earnings per Share (Details Tex

Earnings per Share (Details Textual) - shares shares in Thousands	3 Months Ended
	Jun. 28, 2020	Jun. 30, 2019
Earnings Per Share [Abstract]
Shares or stock options excluded from the calculation of diluted EPS	0	0

Derivative Instruments (Details

Derivative Instruments (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 28, 2020	Jun. 30, 2019	Mar. 29, 2020
Derivative [Line Items]
Unrealized loss on interest rate swap	$ (10)	$ (179)
Fair Value, Inputs, Level 2 [Member]
Derivative [Line Items]
Derivative Instruments in Hedges, Liabilities, at Fair Value	122		$ 108
Interest Rate Swap [Member]
Derivative [Line Items]
Derivative, Notional Amount	$ 20,000

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Jun. 28, 2020	Mar. 29, 2020
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred compensation plan assets	$ 5,279	$ 3,564
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Instruments in Hedges, Liabilities, at Fair Value	$ 122	$ 108

Assets Held for Sale (Details)

Assets Held for Sale (Details) $ in Millions	Mar. 29, 2020USD ($)
Property, Plant and Equipment Assets Held-for-sale Disclosure [Abstract]
Assets Held-for-sale	$ 0.9

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Jun. 28, 2020	Mar. 29, 2020
Summary of Inventories
Inventory (FIFO basis)	$ 69,116	$ 60,090
LIFO reserve	(5,727)	(5,654)
Net inventory	63,389	54,436
LIFO Inventory Amount	$ 46,700	$ 43,300

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets (Details Textual) - USD ($) $ in Thousands	Jun. 28, 2020	Mar. 29, 2020
Goodwill [Line Items]
Goodwill	$ 58,440	$ 58,440
Health and Nutrition [Member]
Goodwill [Line Items]
Goodwill	44,900
Water Treatment [Member]
Goodwill [Line Items]
Goodwill	7,000
Industrial [Member]
Goodwill [Line Items]
Goodwill	$ 6,500

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 28, 2020	Mar. 29, 2020
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	(29,919)	(28,650)
Total finite-life intangible assets, Net	58,157	59,426
Indefinite-life intangible assets	1,227	1,227
Total Intangible Assets, Gross	89,303	89,303
Total intangible assets, net	59,384	60,653
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	(22,523)	(21,400)
Total finite-life intangible assets, Net	55,860	56,983
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	(3,772)	(3,640)
Total finite-life intangible assets, Net	2,273	2,405
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	(3,624)	(3,610)
Total finite-life intangible assets, Net	$ 24	$ 38

Debt (Details)

Debt (Details) - USD ($) $ in Thousands	Jun. 28, 2020	Mar. 29, 2020
Debt Disclosure [Abstract]
Long-term Debt	$ 66,000	$ 60,000
Unamortized Debt Issuance Expense	(318)	(342)
Total debt, net of debt issuance costs	65,682	59,658
Long-term Debt, Current Maturities	(9,907)	(9,907)
Long-term Debt, Excluding Current Maturities	$ 55,775	$ 49,751

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended
	Jun. 28, 2020	Jun. 30, 2019
Income Tax [Abstract]
Effective Income Tax Rate Reconciliation, Percent	26.50%	26.30%

Leases (Details)

Leases (Details) - USD ($)	3 Months Ended
	Jun. 28, 2020	Jun. 30, 2019
Lessee, Lease, Description [Line Items]
Lessee, Operating Lease, Option to Extend	10 years
Short-term Lease, Expense	$ 0
Operating Lease, Expense	$ 700,000	$ 700,000
Operating Lease, Weighted Average Remaining Lease Term	8 years 8 months 1 day
Operating Lease, Weighted Average Discount Rate, Percent	4.00%
Minimum [Member]
Lessee, Lease, Description [Line Items]
Lessee, Operating Lease, Renewal Term	1 year
Maximum [Member]
Lessee, Lease, Description [Line Items]
Lessee, Operating Lease, Renewal Term	24 years

Leases maturities (Details)

Leases maturities (Details) $ in Thousands	Jun. 28, 2020USD ($)
Leases [Abstract]
Remaining fiscal 2021	$ 1,727
Fiscal 2022	1,547
Fiscal 2023	1,297
Fiscal 2024	1,119
Fiscal 2025	1,126
Thereafter	3,838
Total	10,654
Less: Interest	(1,855)
Present value of lease liabilities	$ 8,799

Share Based Compensation (Detai

Share Based Compensation (Details)	3 Months Ended
	Jun. 28, 2020$ / sharesshares
Performance-Based Restricted Stock [Member]
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	$ 34.27
Granted, Weighted average grant date fair value (usd per share) | $ / shares	37.37
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ / shares	31.35
Ending Balance, Weighted average grant date fair value (usd per share) | $ / shares	$ 35.88
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	74,515
Granted (Shares) | shares	64,813
Vested (Shares) | shares	(5,263)
Unvested at end of period (Shares) | shares	134,065
Restricted Stock Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Ending Balance, Weighted average grant date fair value (usd per share) | $ / shares	$ 43.67
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Unvested at end of period (Shares) | shares	8,008

Share Based Compensation (Det_2

Share Based Compensation (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Jun. 28, 2020	Jun. 30, 2019
Performance-Based Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	2 years
Compensation expense	$ 500	$ 300
Performance-Based Restricted Stock [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	62,385
Performance-Based Restricted Stock [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	0
Restricted Stock Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	1 year
Compensation expense	$ 100	$ 100

Share Repurchase Program (Detai

Share Repurchase Program (Details) - USD ($) $ in Millions	3 Months Ended
	Jun. 28, 2020	Jun. 30, 2019
Investment Company, Capital Share Transactions, Stock Repurchased [Abstract]
Stock Repurchase Program, Number of Shares Authorized to be Repurchased	800,000
Stock Repurchased During Period, Shares	0	47,136
Stock Repurchased During Period, Value		$ 1.8
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased	358,797

Litigation, Commitments and C_2

Litigation, Commitments and Contingencies (Details) - USD ($) $ in Millions	12 Months Ended
	Apr. 01, 2018	Jun. 28, 2020	Mar. 29, 2020
Commitments and Contingencies Disclosure [Abstract]
Environmental Remediation Expense	$ 0.6
Accrual for Environmental Loss Contingencies		$ 0.1	$ 0.1

Segment Information (Details)

Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 28, 2020	Jun. 30, 2019
Segment Reporting Information [Line Items]
Sales	$ 143,172	$ 147,336
Gross Profit	30,976	28,797
Selling, General and Administrative Expense	15,038	14,836
Operating income	15,938	13,961
Industrial [Member]
Segment Reporting Information [Line Items]
Sales	71,502	75,325
Gross Profit	12,457	10,915
Selling, General and Administrative Expense	6,067	6,096
Operating income	6,390	4,819
Water Treatment [Member]
Segment Reporting Information [Line Items]
Sales	39,714	43,252
Gross Profit	11,339	12,091
Selling, General and Administrative Expense	5,293	4,988
Operating income	6,046	7,103
Health and Nutrition [Member]
Segment Reporting Information [Line Items]
Sales	31,956	28,759
Gross Profit	7,180	5,791
Selling, General and Administrative Expense	3,678	3,752
Operating income	$ 3,502	$ 2,039

Segment Information (Details Te

Segment Information (Details Textual)	3 Months Ended
	Jun. 28, 2020Segment
Segment Reporting Information [Line Items]
Number of reportable segments (segments)	3
Intersegment sales	no
Number of operating segments aggregated (segments)	0
Number of customer representing 10 percent or more of revenue (customers)	No
Quarterly Financial Information, Segment Reporting, Segment Assets, Material Change	No

Subsequent Events (Details)

Subsequent Events (Details) $ in Thousands	Jul. 28, 2020USD ($)
Subsequent Event [Member]
Subsequent Event [Line Items]
Payments to Acquire Businesses, Gross	$ 25,000