Hawkins (HWKN) 10-Q 29 Jul 21 2022 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Jun. 27, 2021	Jul. 23, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 27, 2021
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 $.01 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		21,212,410
Entity Central Index Key	0000046250
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--04-03

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 27, 2021	Mar. 28, 2021
Assets, Current [Abstract]
Cash and cash equivalents	$ 5,222	$ 2,998
Trade accounts receivables, net	90,936	90,603
Inventories	67,943	63,864
Income taxes receivable	0	175
Prepaid expenses and other current assets	3,671	5,367
Total current assets	167,772	163,007
Property, Plant and Equipment [Abstract]
PROPERTY, PLANT, AND EQUIPMENT:	301,953	300,404
Less accumulated depreciation	159,707	155,792
Net property, plant, and equipment	142,246	144,612
Other Assets [Abstract]
Right-of-use assets	11,432	11,630
Goodwill	70,754	70,720
Intangible assets, net of accumulated amortization	74,787	76,368
Other	8,024	6,213
Total other assets	164,997	164,931
Total assets	475,015	472,550
Liabilities, Current [Abstract]
Accounts payable — trade	38,052	37,313
Accrued payroll and employee benefits	8,354	18,048
Income tax payable	5,218	0
Current portion of long-term debt	9,907	9,907
Short-term lease liability	1,620	1,587
Container deposits	1,501	1,452
Other current liabilities	1,860	2,155
Total current liabilities	66,512	70,462
LONG-TERM DEBT, LESS CURRENT PORTION	85,868	88,845
LONG-TERM LEASE LIABILITY	9,914	10,231
PENSION WITHDRAWAL LIABILITY	4,543	4,631
DEFERRED INCOME TAXES	24,445	24,445
DEFERRED COMPENSATION LIABILITY	8,032	7,322
OTHER LONG-TERM LIABILITIES	496	1,368
Total liabilities	199,810	207,304
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS’ EQUITY:
Common stock; authorized: 60,000,000 shares of $0.01 par value; 20,946,404 and 20,969,746 shares issued and outstanding as of June 27, 2021 and March 28, 2021, respectively	210	210
Additional paid-in capital	47,069	51,138
Retained earnings	227,926	213,898
Total shareholders’ equity	275,205	265,246
Total liabilities and shareholders’ equity	$ 475,015	$ 472,550

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - $ / shares	Jun. 27, 2021	Mar. 28, 2021
Statement of Financial Position [Abstract]
Common Stock, Shares Authorized	60,000,000	60,000,000
Common stock, par value (usd per share)	$ 0.01	$ 0.01
Common Stock, Shares, Issued	20,946,404	20,969,746
Common Stock, Shares, Outstanding	20,946,404	20,969,746

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Jun. 27, 2021	Jun. 28, 2020
Income Statement [Abstract]
Sales	$ 181,241	$ 143,172
Cost of sales	(142,267)	(112,196)
Gross profit	38,974	30,976
Selling, general and administrative expenses	(16,856)	(15,038)
Operating income	22,118	15,938
Interest expense, net	(349)	(380)
Other income	232	477
Income before income taxes	22,001	16,035
Income tax expense	(5,373)	(4,247)
Net income	$ 16,628	$ 11,788
Weighted average number of shares outstanding - basic	21,034,302	21,031,456
Weighted average number of shares outstanding - diluted	21,178,320	21,285,346
Basic earnings per share
Basic earnings per share	$ 0.79	$ 0.56
Diluted earnings per share
Diluted earnings per share	0.79	0.55
Cash dividends declared per common share	$ 0.12250	$ 0.11625

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Jun. 27, 2021	Jun. 28, 2020
Other comprehensive income (loss), net of tax:
Net income	$ 16,628	$ 11,788
Unrealized loss on interest rate swap	0	(10)
Total comprehensive income	$ 16,628	$ 11,778

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. 29, 2020		21,024,458
Stockholders' equity, beginning balance at Mar. 29, 2020	$ 233,484	$ 211	$ 50,405	$ 182,947	$ (79)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cash dividends declared and paid	(2,479)	0	0	(2,479)	0
Share-based compensation expense	700	$ 0	700	0	0
Vesting of restricted stock (shares)		10,526
Vesting of restricted stock	0	$ 0	0	0	0
Shares surrendered for payroll taxes (shares)		3,314
Shares surrendered for payroll taxes	$ (54)	$ 0	(54)	0	0
Shares repurchased (shares)	0
Shares repurchased	$ 0
Unrealized loss on interest rate swap	(10)	0	0	0	(10)
Net income	11,788	$ 0	0	11,788	0
Shares outstanding, ending balance at Jun. 28, 2020		21,031,670
Stockholders' equity, ending balance at Jun. 28, 2020	243,429	$ 211	51,051	192,256	(89)
Shares outstanding, beginning balance at Mar. 28, 2021		20,969,746
Stockholders' equity, beginning balance at Mar. 28, 2021	265,246	$ 210	51,138	213,898	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cash dividends declared and paid	(2,600)	0	0	(2,600)	0
Share-based compensation expense	799	$ 0	799	0	0
Vesting of restricted stock (shares)		123,002
Vesting of restricted stock	0	$ 1	(1)	0	0
Shares surrendered for payroll taxes (shares)		(45,390)
Shares surrendered for payroll taxes	$ (1,467)	$ 0	(1,467)	0	0
Shares repurchased (shares)	(100,954)	(100,954)
Shares repurchased	$ (3,401)	$ (1)	(3,400)	0	0
Unrealized loss on interest rate swap	0
Net income	16,628	$ 0	0	16,628	0
Shares outstanding, ending balance at Jun. 27, 2021		20,946,404
Stockholders' equity, ending balance at Jun. 27, 2021	$ 275,205	$ 210	$ 47,069	$ 227,926	$ 0

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Jun. 27, 2021	Jun. 28, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 16,628	$ 11,788
Changes in operating accounts providing (using) cash:
Depreciation and amortization	5,935	5,484
Operating leases	481	493
Gain on deferred compensation assets	(232)	(477)
Stock compensation expense	799	700
Other	67	22
Trade receivables	(316)	(1,992)
Inventories	(4,079)	(8,952)
Accounts payable	868	(2,354)
Accrued liabilities	(10,159)	(6,689)
Lease liabilities	(572)	(513)
Income taxes	5,393	4,263
Other	8	(220)
Net cash provided by operating activities	14,821	1,553
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant, and equipment	(2,155)	(4,848)
Other	26	61
Net cash used in investing activities	(2,129)	(4,787)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash dividends declared and paid	(2,600)	(2,479)
Shares surrendered for payroll taxes	(1,467)	(54)
Shares repurchased	(3,401)	0
Net (payments on) proceeds from revolving loan	(3,000)	6,000
Net cash (used in) provided by financing activities	(10,468)	3,467
NET INCREASE IN CASH AND CASH EQUIVALENTS	2,224	233
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	2,998	4,277
CASH AND CASH EQUIVALENTS, END OF PERIOD	5,222	4,510
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for interest	292	288
Noncash investing activities - capital expenditures in accounts payable	$ 497	$ 334

Accounting Policies

Accounting Policies	3 Months Ended
	Jun. 27, 2021
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 28, 2021 , 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 27, 2021 are not necessarily indicative of the results that may be expected for the full year. References to fiscal 2020 refer to the fiscal year ended March 29, 2020, references to fiscal 2021 refer to the fiscal year ended March 28, 2021 and references to fiscal 2022 refer to the fiscal year ending April 3, 2022. 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 28, 2021 , previously filed with the SEC. There has been no significant change in our accounting policies since the end of fiscal 2021.

Business Combinations

Business Combinations	3 Months Ended
	Jun. 27, 2021
Business Combinations [Abstract]
Business Combination Disclosure	Acquisition of C&L Aqua Professionals, Inc. and LC Blending, Inc. : In the fourth quarter of fiscal 2021, we acquired substantially all the assets of C&L Aqua Professionals, Inc. and LC Blending, Inc. (together, "C&L Aqua") under the terms of an asset purchase agreement among us, C&L Aqua and its shareholders. We paid $16 million for the acquisition, using funds available under our revolving credit facility to fund the acquisition. C&L Aqua was a water treatment chemical distribution company operating primarily in Louisiana. 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. Acquisition of Property : In the third quarter of fiscal 2021, we acquired a manufacturing facility on 28 acres located adjacent to our facility in Rosemount, Minnesota to allow further expansion and growth in both our Industrial and Water Treatment segments. We paid $10 million for the property. The purchase of this facility added approximately 40,000 square feet of manufacturing and warehouse space to bring us to a total of 105,000 square feet of space on 56 acres of land in the area, with rail access at both of the sites to allow for future growth and provide for supply chain flexibility on certain raw materials to better serve our customers.

Revenue

Revenue	3 Months Ended
	Jun. 27, 2021
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 and three months ended June 27, 2021 and June 28, 2020: Three months ended June 27, 2021 (In thousands) Industrial Water Health and Total Bulk / Distributed specialty products (1) $ 11,843 $ 4,553 $ 30,942 $ 47,338 Manufactured, blended or repackaged products (2) 72,566 51,228 8,051 131,845 Other 1,441 457 160 2,058 Total external customer sales $ 85,850 $ 56,238 $ 39,153 $ 181,241 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 (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. 27, 2021
Earnings Per Share [Abstract]
Earnings per Share	Earnings per Share Basic 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 27, 2021 June 28, 2020 Weighted-average common shares outstanding—basic 21,034,302 21,031,456 Dilutive impact of performance units and restricted stock 144,018 253,890 Weighted-average common shares outstanding—diluted 21,178,320 21,285,346 For each of the periods presented, there were no shares excluded from the calculation of weighted-average common shares for diluted EPS.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Jun. 27, 2021
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 assets held in a deferred compensation retirement plan. As of June 27, 2021 and March 28, 2021, the assets held in a deferred compensation retirement plan were 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 on our balance sheet. 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 27, 2021 and March 28, 2021. 0 (In thousands) June 27, 2021 March 28, 2021 Assets Deferred compensation plan assets Level 1 $ 7,517 $ 5,946

Assets Held for Sale

Assets Held for Sale	3 Months Ended
	Jun. 27, 2021
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 Included in assets held for sale as of March 28, 2021 was $0.7 million for an office building in St. Louis, Missouri which was utilized in the administration of our Industrial segment and $0.2 million for a water treatment branch located in Eldridge, Iowa, which has been relocated to another owned facility. Both were sold in the first quarter of fiscal 2022.

Inventories

Inventories	3 Months Ended
	Jun. 27, 2021
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories at June 27, 2021 and March 28, 2021 consisted of the following: June 27, March 28, (In thousands) Inventory (FIFO basis) $ 75,325 $ 69,438 LIFO reserve (7,382) (5,574) Net inventory $ 67,943 $ 63,864 The first in, first out (“FIFO”) value of inventories accounted for under the last in, first out (“LIFO”) method was $51.0 million at June 27, 2021 and $46.8 million at March 28, 2021. 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. 27, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Goodwill and Intangible Assets The carrying amount of goodwill was $70.8 million as of June 27, 2021 and $70.7 million as of March 28, 2021, of which $44.9 million was related to our Health and Nutrition segment, $19.3 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 27, 2021 and March 28, 2021 is as follows: June 27, 2021 March 28, 2021 (In thousands) Gross Accumulated Net Gross Accumulated Net Finite-life intangible assets Customer relationships $ 99,588 $ (27,949) $ 71,639 $ 99,588 $ (26,522) $ 73,066 Trademarks and trade names 6,210 (4,405) 1,805 6,210 (4,275) 1,935 Other finite-life intangible assets 3,833 (3,717) 116 3,833 (3,693) 140 Total finite-life intangible assets 109,631 (36,071) 73,560 109,631 (34,490) 75,141 Indefinite-life intangible assets 1,227 — 1,227 1,227 — 1,227 Total intangible assets $ 110,858 $ (36,071) $ 74,787 $ 110,858 $ (34,490) $ 76,368

Debt

Debt	3 Months Ended
	Jun. 27, 2021
Debt Disclosure [Abstract]
Debt	Debt Debt at June 27, 2021 and March 28, 2021 consisted of the following: June 27, March 28, (In thousands) Senior secured revolving loan $ 96,000 $ 99,000 Less: unamortized debt issuance costs (225) (248) Total debt, net of debt issuance costs 95,775 98,752 Less: current portion of long-term debt (9,907) (9,907) Total long-term debt $ 85,868 $ 88,845

Income Taxes

Income Taxes	3 Months Ended
	Jun. 27, 2021
Income Tax Disclosure [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 1, 2018 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 27, 2021 was 24.4% and was 26.5% for the three months ended June 28, 2020. The effective tax rate is impacted by projected levels of annual taxable income, permanent items, and state taxes.

Leases

Leases	3 Months Ended
	Jun. 27, 2021
Leases [Abstract]
Lessee, Operating Leases [Text Block]	Leases Lease Obligations. As of June 27, 2021, 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 23 years, some of which include options to extend the lease for up to 10 years. As of June 27, 2021, 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 was not material for the three months ended June 27, 2021 and June 28, 2020. Total lease expense was $0.7 million for both the three months ended June 27, 2021 and June 28, 2020. Other information related to our operating leases was as follows: June 27, 2021 March 28, 2021 Lease Term and Discount Rate Weighted average remaining lease term (years) 9.55 9.73 Weighted average discount rate 2.6 % 2.7 % Maturities of lease liabilities as of June 27, 2021 were as follows: (In thousands) Operating Leases Remaining fiscal 2022 $ 1,803 Fiscal 2023 1,544 Fiscal 2024 1,343 Fiscal 2025 1,299 Fiscal 2026 1,242 Thereafter 5,969 Total $ 13,200 Less: Interest (1,673) Present value of lease liabilities $ 11,527

Share Based Compensation

Share Based Compensation	3 Months Ended
	Jun. 27, 2021
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 2022 and fiscal 2021. 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 88,524 shares in the aggregate for fiscal 2022. 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 27, 2021: Shares Weighted- Unvested at beginning of period 239,120 $ 17.94 Granted 111,618 31.74 Vested (123,002) 17.25 Unvested at end of period 227,736 $ 25.08 We recorded compensation expense related to performance share units and restricted stock of $0.6 million for the three months ended June 27, 2021 and $0.5 million for the three June 28, 2020. 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. 27, 2021
Investment Company, Capital Share Transactions, Stock Repurchased [Abstract]
Share Repurchase Program	Share Repurchase Program Our Board has authorized the repurchase of up to 1,600,000 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 27, 2021, we repurchased 100,954 shares at an aggregate purchase price of $3.4 million. During the three months ended June 28, 2020, no shares were repurchased. As of June 27, 2021, 450,552 shares remained available to be repurchased under the share repurchase program.

Segment Information

Segment Information	3 Months Ended
	Jun. 27, 2021
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 28, 2021 . 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 27, 2021: Sales $ 85,850 $ 56,238 $ 39,153 $ 181,241 Gross profit 14,254 16,234 8,486 38,974 Selling, general, and administrative expenses 6,241 7,062 3,553 16,856 Operating income 8,013 9,172 4,933 22,118 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 No significant changes to identifiable assets by segment occurred during the three months ended June 27, 2021.

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Jun. 27, 2021
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 and three months ended June 27, 2021 and June 28, 2020: Three months ended June 27, 2021 (In thousands) Industrial Water Health and Total Bulk / Distributed specialty products (1) $ 11,843 $ 4,553 $ 30,942 $ 47,338 Manufactured, blended or repackaged products (2) 72,566 51,228 8,051 131,845 Other 1,441 457 160 2,058 Total external customer sales $ 85,850 $ 56,238 $ 39,153 $ 181,241 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 (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. 27, 2021
Earnings Per Share [Abstract]
Summary of basic and diluted EPS	Basic and diluted EPS were calculated using the following: Three Months Ended June 27, 2021 June 28, 2020 Weighted-average common shares outstanding—basic 21,034,302 21,031,456 Dilutive impact of performance units and restricted stock 144,018 253,890 Weighted-average common shares outstanding—diluted 21,178,320 21,285,346

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Jun. 27, 2021
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 27, 2021 and March 28, 2021. 0 (In thousands) June 27, 2021 March 28, 2021 Assets Deferred compensation plan assets Level 1 $ 7,517 $ 5,946

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Jun. 27, 2021
Inventory Disclosure [Abstract]
Summary of Inventories	Inventories at June 27, 2021 and March 28, 2021 consisted of the following: June 27, March 28, (In thousands) Inventory (FIFO basis) $ 75,325 $ 69,438 LIFO reserve (7,382) (5,574) Net inventory $ 67,943 $ 63,864

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	3 Months Ended
	Jun. 27, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of intangible assets and goodwill	A summary of our intangible assets as of June 27, 2021 and March 28, 2021 is as follows: June 27, 2021 March 28, 2021 (In thousands) Gross Accumulated Net Gross Accumulated Net Finite-life intangible assets Customer relationships $ 99,588 $ (27,949) $ 71,639 $ 99,588 $ (26,522) $ 73,066 Trademarks and trade names 6,210 (4,405) 1,805 6,210 (4,275) 1,935 Other finite-life intangible assets 3,833 (3,717) 116 3,833 (3,693) 140 Total finite-life intangible assets 109,631 (36,071) 73,560 109,631 (34,490) 75,141 Indefinite-life intangible assets 1,227 — 1,227 1,227 — 1,227 Total intangible assets $ 110,858 $ (36,071) $ 74,787 $ 110,858 $ (34,490) $ 76,368

Debt (Tables)

Debt (Tables)	3 Months Ended
	Jun. 27, 2021
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments	Debt at June 27, 2021 and March 28, 2021 consisted of the following: June 27, March 28, (In thousands) Senior secured revolving loan $ 96,000 $ 99,000 Less: unamortized debt issuance costs (225) (248) Total debt, net of debt issuance costs 95,775 98,752 Less: current portion of long-term debt (9,907) (9,907) Total long-term debt $ 85,868 $ 88,845

Leases (Tables)

Leases (Tables)	3 Months Ended
	Jun. 27, 2021
Leases [Abstract]
Other information related to our operating leases [Table Text Block]	Other information related to our operating leases was as follows: June 27, 2021 March 28, 2021 Lease Term and Discount Rate Weighted average remaining lease term (years) 9.55 9.73 Weighted average discount rate 2.6 % 2.7 %
Lessee, Operating Lease, Liability, Maturity [Table Text Block]	Maturities of lease liabilities as of June 27, 2021 were as follows: (In thousands) Operating Leases Remaining fiscal 2022 $ 1,803 Fiscal 2023 1,544 Fiscal 2024 1,343 Fiscal 2025 1,299 Fiscal 2026 1,242 Thereafter 5,969 Total $ 13,200 Less: Interest (1,673) Present value of lease liabilities $ 11,527

Share Based Compensation (Table

Share Based Compensation (Tables)	3 Months Ended
	Jun. 27, 2021
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 27, 2021: Shares Weighted- Unvested at beginning of period 239,120 $ 17.94 Granted 111,618 31.74 Vested (123,002) 17.25 Unvested at end of period 227,736 $ 25.08

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Jun. 27, 2021
Segment Reporting [Abstract]
Summary of Segment Information	(In thousands) Industrial Water Health and Nutrition Total Three months ended June 27, 2021: Sales $ 85,850 $ 56,238 $ 39,153 $ 181,241 Gross profit 14,254 16,234 8,486 38,974 Selling, general, and administrative expenses 6,241 7,062 3,553 16,856 Operating income 8,013 9,172 4,933 22,118 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

Business Combinations (Details)

Business Combinations (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 28, 2021	Dec. 27, 2020	Sep. 27, 2020
C&L Aqua Professionals, Inc. and LC Blending, Inc.
Asset Acquisition [Line Items]
Payments to Acquire Businesses, Gross	$ 16
Property
Asset Acquisition [Line Items]
Payments to Acquire Businesses, Gross		$ 10
American Development Corporation of Tennessee, Inc.
Asset Acquisition [Line Items]
Payments to Acquire Businesses, Gross			$ 25

Revenue (Details)

Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 27, 2021	Jun. 28, 2020
Disaggregation of Revenue [Line Items]
Revenue	$ 181,241	$ 143,172
Bulk / Distributed specialty products [Member]
Disaggregation of Revenue [Line Items]
Revenue	47,338	38,644
Manufactured, blended or repackaged products [Member]
Disaggregation of Revenue [Line Items]
Revenue	131,845	103,446
Other [Member]
Disaggregation of Revenue [Line Items]
Revenue	2,058	1,082
Industrial [Member]
Disaggregation of Revenue [Line Items]
Revenue	85,850	71,502
Industrial [Member] | Bulk / Distributed specialty products [Member]
Disaggregation of Revenue [Line Items]
Revenue	11,843	8,824
Industrial [Member] | Manufactured, blended or repackaged products [Member]
Disaggregation of Revenue [Line Items]
Revenue	72,566	61,842
Industrial [Member] | Other [Member]
Disaggregation of Revenue [Line Items]
Revenue	1,441	836
Water Treatment [Member]
Disaggregation of Revenue [Line Items]
Revenue	56,238	39,714
Water Treatment [Member] | Bulk / Distributed specialty products [Member]
Disaggregation of Revenue [Line Items]
Revenue	4,553	3,875
Water Treatment [Member] | Manufactured, blended or repackaged products [Member]
Disaggregation of Revenue [Line Items]
Revenue	51,228	35,506
Water Treatment [Member] | Other [Member]
Disaggregation of Revenue [Line Items]
Revenue	457	333
Health and Nutrition [Member]
Disaggregation of Revenue [Line Items]
Revenue	39,153	31,956
Health and Nutrition [Member] | Bulk / Distributed specialty products [Member]
Disaggregation of Revenue [Line Items]
Revenue	30,942	25,945
Health and Nutrition [Member] | Manufactured, blended or repackaged products [Member]
Disaggregation of Revenue [Line Items]
Revenue	8,051	6,098
Health and Nutrition [Member] | Other [Member]
Disaggregation of Revenue [Line Items]
Revenue	$ 160	$ (87)

Earnings per Share (Details)

Earnings per Share (Details) - shares	3 Months Ended
	Jun. 27, 2021	Jun. 28, 2020
Summary of basic and diluted EPS
Weighted-average common shares outstanding—basic	21,034,302	21,031,456
Dilutive impact of performance units and restricted stock	144,018	253,890
Weighted-average common shares outstanding—diluted	21,178,320	21,285,346

Earnings per Share (Details Tex

Earnings per Share (Details Textual) - shares shares in Thousands	3 Months Ended
	Jun. 27, 2021	Jun. 28, 2020
Earnings Per Share [Abstract]
Shares or stock options excluded from the calculation of diluted EPS	0	0

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Jun. 27, 2021	Mar. 28, 2021
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred compensation plan assets	$ 7,517	$ 5,946

Assets Held for Sale (Details)

Assets Held for Sale (Details) $ in Millions	Mar. 28, 2021USD ($)
Industrial [Member]
Assets Held-for-sale, Long Lived, Fair Value Disclosure	$ 0.7
Water Treatment [Member]
Assets Held-for-sale, Long Lived, Fair Value Disclosure	$ 0.2

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Jun. 27, 2021	Mar. 28, 2021
Summary of Inventories
Inventory (FIFO basis)	$ 75,325	$ 69,438
LIFO reserve	(7,382)	(5,574)
Net inventory	67,943	63,864
LIFO Inventory Amount	$ 51,000	$ 46,800

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets (Details Textual) - USD ($) $ in Thousands	Jun. 27, 2021	Mar. 28, 2021
Goodwill [Line Items]
Goodwill	$ 70,754	$ 70,720
Health and Nutrition [Member]
Goodwill [Line Items]
Goodwill	44,900
Water Treatment [Member]
Goodwill [Line Items]
Goodwill	19,300
Industrial [Member]
Goodwill [Line Items]
Goodwill	$ 6,500

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 27, 2021	Mar. 28, 2021
Summary of Finite-Lived Intangible Assets [Line Items]
Finite-life intangible assets, Gross Carrying Amount	$ 109,631	$ 109,631
Finite-life intangible assets, Accumulated Amortization	(36,071)	(34,490)
Total finite-life intangible assets, Net	73,560	75,141
Indefinite-life intangible assets	1,227	1,227
Total Intangible Assets, Gross	110,858	110,858
Total intangible assets, net	74,787	76,368
Customer Relationships [Member]
Summary of Finite-Lived Intangible Assets [Line Items]
Finite-life intangible assets, Gross Carrying Amount	99,588	99,588
Finite-life intangible assets, Accumulated Amortization	(27,949)	(26,522)
Total finite-life intangible assets, Net	71,639	73,066
Trademarks [Member]
Summary of Finite-Lived Intangible Assets [Line Items]
Finite-life intangible assets, Gross Carrying Amount	6,210	6,210
Finite-life intangible assets, Accumulated Amortization	(4,405)	(4,275)
Total finite-life intangible assets, Net	1,805	1,935
Other finite-life intangible assets [Member]
Summary of Finite-Lived Intangible Assets [Line Items]
Finite-life intangible assets, Gross Carrying Amount	3,833	3,833
Finite-life intangible assets, Accumulated Amortization	(3,717)	(3,693)
Total finite-life intangible assets, Net	$ 116	$ 140

Debt (Details)

Debt (Details) - USD ($) $ in Thousands	Jun. 27, 2021	Mar. 28, 2021
Debt Disclosure [Abstract]
Senior secured revolving loan	$ 96,000	$ 99,000
Less: unamortized debt issuance costs	(225)	(248)
Total debt, net of debt issuance costs	95,775	98,752
Less: current portion of long-term debt	(9,907)	(9,907)
Total long-term debt	$ 85,868	$ 88,845

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended
	Jun. 27, 2021	Jun. 28, 2020
Income Tax Disclosure [Abstract]
Effective Income Tax Rate Reconciliation, Percent	24.40%	26.50%

Leases (Details)

Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 27, 2021	Jun. 28, 2020	Mar. 28, 2021
Lessee, Lease, Description [Line Items]
Lessee, Operating Lease, Option to Extend	10 years
Short-term Lease, Expense	$ 0	$ 0
Operating Lease, Expense	$ 700	$ 700
Operating Lease, Weighted Average Remaining Lease Term	9 years 6 months 18 days		9 years 8 months 23 days
Operating Lease, Weighted Average Discount Rate, Percent	2.60%		2.70%
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	23 years

Leases maturities (Details)

Leases maturities (Details) $ in Thousands	Jun. 27, 2021USD ($)
Leases [Abstract]
Remaining fiscal 2022	$ 1,803
Fiscal 2023	1,544
Fiscal 2024	1,343
Fiscal 2025	1,299
Fiscal 2026	1,242
Thereafter	5,969
Total	13,200
Less: Interest	(1,673)
Present value of lease liabilities	$ 11,527

Share Based Compensation (Detai

Share Based Compensation (Details)	3 Months Ended
	Jun. 27, 2021$ / 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	$ 17.94
Granted, Weighted average grant date fair value (usd per share) | $ / shares	31.74
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ / shares	17.25
Ending Balance, Weighted average grant date fair value (usd per share) | $ / shares	$ 25.08
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	239,120
Granted (Shares) | shares	111,618
Vested (Shares) | shares	(123,002)
Unvested at end of period (Shares) | shares	227,736
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	$ 25.60
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	11,228

Share Based Compensation (Det_2

Share Based Compensation (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Jun. 27, 2021	Jun. 28, 2020
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	88,524
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
Performance-Based Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 600	$ 500
Restricted Stock Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 100	$ 100

Share Repurchase Program (Detai

Share Repurchase Program (Details) - USD ($) $ in Millions	3 Months Ended
	Jun. 27, 2021	Jun. 28, 2020
Investment Company, Capital Share Transactions, Stock Repurchased [Abstract]
Stock Repurchase Program, Number of Shares Authorized to be Repurchased	1,600,000
Stock Repurchased During Period, Shares	100,954	0
Stock Repurchased During Period, Value	$ 3.4
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased	450,552

Segment Information (Details)

Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 27, 2021	Jun. 28, 2020
Segment Reporting Information [Line Items]
Sales	$ 181,241	$ 143,172
Gross profit	38,974	30,976
Selling, general, and administrative expenses	16,856	15,038
Operating income	22,118	15,938
Industrial [Member]
Segment Reporting Information [Line Items]
Sales	85,850	71,502
Gross profit	14,254	12,457
Selling, general, and administrative expenses	6,241	6,067
Operating income	8,013	6,390
Water Treatment [Member]
Segment Reporting Information [Line Items]
Sales	56,238	39,714
Gross profit	16,234	11,339
Selling, general, and administrative expenses	7,062	5,293
Operating income	9,172	6,046
Health and Nutrition [Member]
Segment Reporting Information [Line Items]
Sales	39,153	31,956
Gross profit	8,486	7,180
Selling, general, and administrative expenses	3,553	3,678
Operating income	$ 4,933	$ 3,502

Segment Information (Details Te

Segment Information (Details Textual)	3 Months Ended
	Jun. 27, 2021Segment
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