CorVel (CRVL) 10-Q 4 Aug 16 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Jun. 30, 2016	Jul. 29, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Trading Symbol	CRVL
Entity Registrant Name	CORVEL CORP
Entity Central Index Key	874,866
Current Fiscal Year End Date	--03-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		19,599,172

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Jun. 30, 2016	Mar. 31, 2016
Current Assets
Cash and cash equivalents (Note A)	$ 36,234,000	$ 32,779,000
Customer deposits	24,510,000	25,649,000
Accounts receivable, net	60,702,000	59,747,000
Prepaid taxes and expenses	6,515,000	4,933,000
Total current assets	127,961,000	123,108,000
Property and equipment, net	55,755,000	53,268,000
Goodwill	36,814,000	36,814,000
Other intangibles, net (Note F)	4,178,000	4,287,000
Other assets	2,736,000	2,792,000
TOTAL ASSETS	227,444,000	220,269,000
Current Liabilities
Accounts and taxes payable	18,016,000	13,233,000
Accrued liabilities	61,162,000	67,182,000
Total current liabilities	79,178,000	80,415,000
Deferred income taxes	7,712,000	7,906,000
Total liabilities	86,890,000	88,321,000
Commitments and contingencies (Notes G and H)
Stockholders' Equity
Common stock, $.0001 par value: 120,000,000 shares authorized at March 31, 2016 and June 30, 2016; 53,448,672 shares issued (19,562,413 shares outstanding, net of Treasury shares) and 53,521,120 shares issued (19,596,701 shares outstanding, net of Treasury shares) at March 31, 2016 and June 30, 2016, respectively	3,000	3,000
Paid-in capital	133,227,000	130,465,000
Treasury Stock (33,886,259 shares at March 31, 2016 and 33,924,419 shares at June 30, 2016)	(393,450,000)	(391,803,000)
Retained earnings	400,774,000	393,283,000
Total stockholders' equity	140,554,000	131,948,000
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 227,444,000	$ 220,269,000

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2016	Mar. 31, 2016
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	120,000,000	120,000,000
Common stock, shares issued	53,521,120	53,448,672
Common stock, shares outstanding	19,596,701	19,562,413
Treasury stock, shares	33,924,419	33,886,259

Consolidated Income Statements

Consolidated Income Statements - USD ($)	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Income Statement [Abstract]
REVENUES	$ 128,459,000	$ 126,939,000
Cost of revenues	102,877,000	100,756,000
Gross profit	25,582,000	26,183,000
General and administrative expenses	13,461,000	14,962,000
Income before income tax provision	12,121,000	11,221,000
Income tax provision	4,630,000	4,321,000
NET INCOME	$ 7,491,000	$ 6,900,000
Net income per common and common equivalent share
Basic	$ 0.38	$ 0.34
Diluted	$ 0.38	$ 0.34
Weighted average common and common equivalent shares
Basic	19,572,000	20,149,000
Diluted	19,754,000	20,335,000

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from Operating Activities
NET INCOME	$ 7,491,000	$ 6,900,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	5,051,000	4,945,000
Loss (gain) on disposal of assets	7,000	(1,000)
Stock compensation expense	516,000	616,000
Write-off of uncollectible accounts	386,000	304,000
Deferred income tax	(193,000)	(209,000)
Changes in operating assets and liabilities
Accounts receivable	(1,341,000)	323,000
Customer deposits	1,139,000	(1,488,000)
Prepaid taxes and expenses	(1,582,000)	4,992,000
Other assets	71,000	148,000
Accounts and taxes payable	2,618,000	1,580,000
Accrued liabilities	(6,020,000)	(2,986,000)
Net cash provided by operating activities	8,143,000	15,124,000
Cash Flows from Investing Activities
Investment in private equity	0	(600,000)
Purchase of property and equipment	(5,285,000)	(4,696,000)
Net cash (used in) investing activities	(5,285,000)	(5,296,000)
Cash Flows from Financing Activities
Purchase of treasury stock	(1,648,000)	(9,076,000)
Tax effect of stock option exercises	743,000	215,000
Exercise of common stock options	1,502,000	619,000
Net cash (used in) provided by financing activities	597,000	(8,242,000)
Increase in cash and cash equivalents	3,455,000	1,586,000
Cash and cash equivalents at beginning of period	32,779,000	25,516,000
Cash and cash equivalents at end of period	36,234,000	27,102,000
Supplemental Cash Flow Information:
Income taxes paid	1,818,000	161,000
Purchase of software license under finance agreement	$ 2,166,000	$ 0

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	3 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	Note A — Basis of Presentation and Summary of Significant Accounting Policies The unaudited financial statements herein have been prepared by the Company pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). The accompanying interim financial statements have been prepared under the presumption that users of the interim financial information have either read or have access to the audited financial statements for the latest fiscal year ended March 31, 2016. Accordingly, note disclosures which would substantially duplicate the disclosures contained in the March 31, 2016 audited financial statements have been omitted from these interim financial statements. The Company evaluated all subsequent events or transactions through the date of filing this report. During the period subsequent to the quarter ended June 30, 2016, the Company repurchased 6,651 shares of common stock for $294,000 at an average of $44.18 per share of common stock. These shares of common stock were repurchased under the Company’s ongoing share repurchase program described in Note C. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the three months ended June 30, 2016 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2017. For further information, refer to the consolidated financial statements and notes for the fiscal year ended March 31, 2016 included in the Company’s Annual Report on Form 10-K filed with the SEC on June 10, 2016. Basis of Presentation: Use of Estimates: Cash and Cash Equivalents: Fair Value of Financial Instruments: Level 1- Quoted market prices in active markets for identical assets or liabilities; Level 2- Observable inputs other than those included in Level 1 (for example, quoted prices for similar assets in active markets or quoted prices for identical assets in inactive markets); and Level 3- Unobservable inputs reflecting management’s own assumptions about the inputs used in estimating the value of the asset. The carrying amount of the Company’s financial instruments (i.e. cash equivalents, accounts receivable, accounts payable) are all Level 1 and approximate their fair values at March 31, 2016 and June 30, 2016. The Company has no Level 2 or Level 3 financial instruments. Investment in Private Equity: Goodwill: Revenue Recognition: The multiple-deliverable arrangements entered into consist of bundled managed care services, which includes various units of accounting such as network solutions, and patient management which includes claims administration. Such elements are considered separate units of accounting due to each element having value to the customer on a stand-alone basis. The selling price for each unit of accounting is determined using contract price and management estimates. When the Company’s customers purchase several products, the pricing of the products sold is generally the same as if the products were sold on an individual basis. Revenue is recognized as the work is performed in accordance with the Company’s customer contracts. Based upon the nature of the Company’s products, bundled managed care elements are generally delivered in the same accounting period. The Company recognizes revenue for patient management claims administration services over the life of the customer contract. The Company estimates, based upon prior experience in managing claims, the deferral amount from when the claim is received to when the customer contract expires. Recent Accounting Pronouncements: Revenue from Contracts with Customers On November 20, 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes In January 2016, the FASB issued ASU 2016-01 regarding Subtopic 825-10, Financials Instruments — Overall: Recognition and Measurements of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU No. 2016-02, Leases In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting Accounts Receivable: Property and Equipment: Long-Lived Assets: Income Taxes: Earnings Per Share:

Stock-Based Compensation and St

Stock-Based Compensation and Stock Options	3 Months Ended
	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation and Stock Options	Note B — Stock-Based Compensation and Stock Options Under the Company’s Restated Omnibus Incentive Plan (formerly the Restated 1988 Executive Stock Option Plan) (“the Plan”) as in effect at June 30, 2016, options exercisable for up to 19,365,000 shares of the Company’s common stock may be granted over the life of the Plan to key employees, non-employee directors, and consultants at exercise prices not less than the fair market value of the stock at the date of grant. Options granted under the Plan are non-statutory stock options and generally vest 25% one year from date of grant and the remaining 75% vesting ratably each month for the next 36 months. The options granted to employees and the board of directors expire at the end of five years and ten years from date of grant, respectively. The Company records compensation expense for employee stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes option-pricing model with the assumptions included in the table below. The Company uses historical data among other factors to estimate the expected volatility, the expected option life, and the expected forfeiture rate. The risk-free rate is based on the interest rate paid on a U.S. Treasury issue with a term similar to the estimated life of the option. Based upon the historical experience of options cancellations, the Company has estimated an annualized forfeiture rate of 11.60% and 13.20% for the three months ended June 30,2015 and 2016, respectively. Forfeiture rates will be adjusted over the requisite service period when actual forfeitures differ, or are expected to differ, from the estimate. The following assumptions were used to estimate the fair value of options granted during the three months ended June 30,2015 and 2016 using the Black-Scholes option-pricing model: Three Months Ended June 30, 2015 2016 Risk-free interest rate 1.56% 1.20% Expected volatility 44% 43% Expected dividend yield 0.00% 0.00% Expected forfeiture rate 11.60% 13.20% Expected weighted average life of option in years 4.4 years 4.1 years All options granted in the three months ended June 30,2015 and 2016 were granted with an exercise price equal to the fair value of the Company’s common stock on the grant date and are non-statutory stock options. For the three months ended June 30,2015 and 2016, the Company recorded share-based compensation expense of $616,000 and $516,000, respectively. The table below shows the amounts recognized in the consolidated financial statements for stock compensation expense for time-based options and performance-based options during the three months ended June 30,2015 and 2016, respectively. Three Months Ended June 30, 2015 June 30, 2016 Cost of revenues $ 311,000 $ 337,000 General and administrative 305,000 179,000 Total cost of stock-based compensation included in income before income tax provision $ 616,000 $ 516,000 Amount of income tax benefit recognized (234,000 ) (197,000 ) Amount charged against net income $ 382,000 $ 319,000 Effect on basic earnings per share $ (0.02 ) $ (0.02 ) Effect on diluted earnings per share $ (0.02 ) $ (0.02 ) Summarized information for all stock options for the three months ended June 30, 2015 and 2016 follows: Three Months Ended June 30, 2015 Three Months Ended June 30, 2016 Shares Average Price Shares Average Price Options outstanding, beginning 1,163,179 $ 27.65 1,115,465 $ 30.36 Options granted 39,700 34.67 44,900 45.74 Options exercised (35,837 ) 19.16 (76,623 ) 22.11 Options cancelled/forfeited — — (9,221 ) 35.43 Options outstanding, ending 1,167,042 $ 28.15 1,074,521 $ 31.56 The following table summarizes the status of stock options outstanding and exercisable at June 30, 2016: Weighted Outstanding Exercisable Exercisable Options – Average Options – Options – Weighted Remaining Weighted Number of Average Number of Contractual Average Exercisable Exercise Range of Exercise Price Outstanding Options Life Exercise Price Options Price $9.05 to $23.10 346,085 2.70 $ 20.32 293,659 $ 19.87 $23.11 to $34.77 192,764 3.08 30.74 102,521 28.2 $34.78 to $35.76 233,807 3.99 34.78 7,260 34.78 $35.77 to $46.20 301,865 4.08 43.82 90,554 42.60 Total 1,074,521 3.28 $ 31.56 493,994 $ 25.98 A summary of the status for all outstanding options at June 30, 2016, and changes during the three months then ended, is presented in the table below: Number of Options Weighted Average Weighted Average Remaining Aggregate Intrinsic Options outstanding at April 1, 2016 1,115,465 $ 30.36 Granted 44,900 45.74 Exercised (76,623 ) 22.11 Cancelled – forfeited (9,139 ) 35.34 Cancelled – expired (82 ) 44.78 Ending outstanding 1,074,521 $ 31.56 3.28 $ 12,787,075 Ending vested and expected to vest 939,647 $ 30.83 3.17 $ 11,874,296 Ending exercisable at June 30, 2016 493,994 $ 25.98 2.61 $ 8,598,614 The weighted-average grant-date fair value of options granted during the three months ended June 30, 2015 and 2016, was $13.20 and $15.91, respectively. Included in the above-noted stock option grants and stock compensation expense are performance-based stock options under which vesting occurs only upon the Company achieving certain revenue or earnings per shares targets on a calendar year basis as determined by the Company’s Board of Directors. These options were valued in the same manner as the time-vesting options. However, the Company only recognizes stock compensation to the extent that the targets are determined to be achieved which allow the performance options to vest. The Company recognized $79,000 and ($31,000) of stock compensation expense for the three months ended June 30, 2015 and 2016, respectively, for performance-based stock options.

Treasury Stock and Subsequent E

Treasury Stock and Subsequent Event	3 Months Ended
	Jun. 30, 2016
Text Block [Abstract]
Treasury Stock and Subsequent Event	Note C — Treasury Stock and Subsequent Event The Company’s Board of Directors initially approved the commencement of a share repurchase program in the fall of 1996. In November 2015, the Company’s Board of Directors approved a 1,000,000 share expansion to its existing stock repurchase plan, increasing the total number of shares of the Company’s common stock approved for repurchase over the life of the program to 35,000,000 shares of the Company’s common stock from the previous limit of 34,000,000 shares of the Company’s common stock. Since the commencement of the share repurchase program, the Company has spent $393 million to repurchase 33,924,419 shares of its common stock, equal to 63% of the outstanding common stock had there been no repurchases. The average price of these repurchases was $11.60 per share. These repurchases were funded primarily from the net earnings of the Company, along with the proceeds from the exercise of common stock options. During the three months ended June 30, 2016, the Company repurchased 38,160 shares of the Company’s common stock for $1.6 million at an average of $43.18 per share of common stock. The Company had 19,596,701 shares of common stock outstanding as of June 30, 2016, net of the 33,924,419 shares in treasury. During the period subsequent to the quarter ended June 30, 2016, the Company repurchased 6,651 shares of common stock for $294,000 at an average of $44.18 per share of common stock.

Weighted Average Shares and Net

Weighted Average Shares and Net Income Per Share	3 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
Weighted Average Shares and Net Income Per Share	Note D — Weighted Average Shares and Net Income Per Share Weighted average basic common shares decreased from 20,149,000 for the quarter ended June 30, 2015 to 19,572,000 for the quarter ended June 30, 2016. Weighted average diluted common and common equivalent shares decreased from 20,335,000 for the quarter ended June 30, 2015 to 19,754,000 for the quarter ended June 30, 2016. The net decrease in both of these weighted share calculations is due to the repurchase of common stock as noted above, offset by an increase in shares outstanding due to the exercise of stock options under the Company’s employee stock option plan. Net income per common and common equivalent shares was computed by dividing net income by the weighted average number of common and common stock equivalents outstanding during the quarter. The calculations of the basic and diluted weighted shares for the three months ended June 30, 2015 and 2016, are as follows: Three Months Ended June 30, 2015 2016 Net Income $ 6,900,000 $ 7,491,000 Basic: Weighted average common shares outstanding 20,149,000 19,572,000 Net Income per share $ 0.34 $ 0.38 Diluted: Weighted average common shares outstanding 20,149,000 19,572,000 Treasury stock impact of stock options 186,000 182,000 Total common and common equivalent shares 20,335,000 19,754,000 Net Income per share $ 0.34 $ 0.38

Shareholder Rights Plan

Shareholder Rights Plan	3 Months Ended
	Jun. 30, 2016
Text Block [Abstract]
Shareholder Rights Plan	Note E — Shareholder Rights Plan During fiscal year 1997, the Company’s Board of Directors approved the adoption of a Shareholder Rights Plan. The Shareholder Rights Plan provides for a dividend distribution to CorVel stockholders of one preferred stock purchase right for each outstanding share of CorVel’s common stock under certain circumstances. In November 2008, the Company’s Board of Directors approved an amendment to the Shareholder Rights Plan to extend the expiration date of the rights to February 10, 2022. The rights are designed to assure that all shareholders receive fair and equal treatment in the event of any proposed takeover of the Company and to encourage a potential acquirer to negotiate with the Company’s Board of Directors prior to attempting a takeover. The rights have an exercise price of $118 per right, subject to subsequent adjustment. The rights trade with the Company’s common stock and will not be exercisable until the occurrence of certain takeover-related events. Generally, the Shareholder Rights Plan provides that if a person or group acquires 15% or more of the Company’s common stock without the approval of the Board, subject to certain exceptions, the holders of the rights, other than the acquiring person or group, would, under certain circumstances, have the right to purchase additional shares of the Company’s common stock having a market value equal to two times the then-current exercise price of the right. In addition, if the Company is thereafter merged into another entity, or if 50% or more of the Company’s consolidated assets or earning power are sold, then the right will entitle its holder to buy common shares of the acquiring entity having a market value equal to two times the then-current exercise price of the right. The Company’s Board of Directors may exchange or redeem the rights under certain conditions.

Other Intangible Assets

Other Intangible Assets	3 Months Ended
	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Other Intangible Assets	Note F — Other Intangible Assets Other intangible assets consist of the following at fiscal 2016: Item Life Cost Fiscal 2016 Accumulated Cost, Net of Covenants Not to Compete 5 Years $ 775,000 $ 13,000 $ 775,000 $ — Customer Relationships 18-20 Years 7,922,000 423,000 3,721,000 4,201,000 TPA Licenses 15 Years 204,000 14,000 118,000 86,000 Total $ 8,901,000 $ 450,000 $ 4,614,000 $ 4,287,000 Other intangible assets consist of the following at June 30, 2016: Item Life Cost Three Months Ended Accumulated Cost, Net of Covenants Not to Compete 5 Years $ 775,000 $ — $ 775,000 $ — Customer Relationships 18-20 Years 7,922,000 106,000 3,827,000 4,095,000 TPA Licenses 15 Years 204,000 3,000 121,000 83,000 Total $ 8,901,000 $ 109,000 $ 4,723,000 $ 4,178,000

Line of Credit

Line of Credit	3 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Line of Credit	Note G — Line of Credit In September 2015, the Company renewed a line of credit agreement. The line is with a financial institution to provide a revolving credit facility with borrowing capacity of up to $10 million. Borrowings under this agreement, as amended, bear interest, at the Company’s option, at a fixed LIBOR-based rate plus 1.50% or at a fluctuating rate determined by the financial institution to be 1.50% above the daily one-month LIBOR rate. The loan covenants require the Company to maintain the current assets to liabilities ratio of at least 1.25:1, debt to tangible net worth not greater than 1.25:1 and have positive net income. The Company is in compliance with all the covenants. There were no outstanding revolving loans as of June 30, 2016, but letters of credit in the aggregate amount of $4.5 million have been issued separate from the line of credit and therefore do not reduce the amount of borrowings available under the revolving credit facility. The renewed credit agreement expires in September 2016.

Contingencies and Legal Proceed

Contingencies and Legal Proceedings	3 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Contingencies and Legal Proceedings	Note H — Contingencies and Legal Proceedings The Company is involved in litigation arising in the normal course of business. Management believes that resolution of these matters will not result in any payment that, individually or in the aggregate, would be material to the consolidated financial position or results of the operations of the Company.

Basis of Presentation and Sum14

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation:
Use of Estimates	Use of Estimates:
Cash and Cash Equivalents	Cash and Cash Equivalents:
Fair Value of Financial Instruments	Fair Value of Financial Instruments: Level 1- Quoted market prices in active markets for identical assets or liabilities; Level 2- Observable inputs other than those included in Level 1 (for example, quoted prices for similar assets in active markets or quoted prices for identical assets in inactive markets); and Level 3- Unobservable inputs reflecting management’s own assumptions about the inputs used in estimating the value of the asset. The carrying amount of the Company’s financial instruments (i.e. cash equivalents, accounts receivable, accounts payable) are all Level 1 and approximate their fair values at March 31, 2016 and June 30, 2016. The Company has no Level 2 or Level 3 financial instruments.
Investment in Private Equity	Investment in Private Equity:
Goodwill	Goodwill:
Revenue Recognition	Revenue Recognition: The multiple-deliverable arrangements entered into consist of bundled managed care services, which includes various units of accounting such as network solutions, and patient management which includes claims administration. Such elements are considered separate units of accounting due to each element having value to the customer on a stand-alone basis. The selling price for each unit of accounting is determined using contract price and management estimates. When the Company’s customers purchase several products, the pricing of the products sold is generally the same as if the products were sold on an individual basis. Revenue is recognized as the work is performed in accordance with the Company’s customer contracts. Based upon the nature of the Company’s products, bundled managed care elements are generally delivered in the same accounting period. The Company recognizes revenue for patient management claims administration services over the life of the customer contract. The Company estimates, based upon prior experience in managing claims, the deferral amount from when the claim is received to when the customer contract expires.
Recent Accounting Pronouncements	Recent Accounting Pronouncements: Revenue from Contracts with Customers On November 20, 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes In January 2016, the FASB issued ASU 2016-01 regarding Subtopic 825-10, Financials Instruments — Overall: Recognition and Measurements of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU No. 2016-02, Leases In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting
Accounts Receivable	Accounts Receivable:
Property and Equipment	Property and Equipment:
Long-Lived Assets	Long-Lived Assets:
Income Taxes	Income Taxes:
Earnings Per Share	Earnings Per Share:

Stock-Based Compensation and 15

Stock-Based Compensation and Stock Options (Tables)	3 Months Ended
	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Fair Value of Options Granted	The following assumptions were used to estimate the fair value of options granted during the three months ended June 30,2015 and 2016 using the Black-Scholes option-pricing model: Three Months Ended June 30, 2015 2016 Risk-free interest rate 1.56% 1.20% Expected volatility 44% 43% Expected dividend yield 0.00% 0.00% Expected forfeiture rate 11.60% 13.20% Expected weighted average life of option in years 4.4 years 4.1 years
Stock Compensation Expense for Time Based Options and Performance Based Options	The table below shows the amounts recognized in the consolidated financial statements for stock compensation expense for time-based options and performance-based options during the three months ended June 30,2015 and 2016, respectively. Three Months Ended June 30, 2015 June 30, 2016 Cost of revenues $ 311,000 $ 337,000 General and administrative 305,000 179,000 Total cost of stock-based compensation included in income before income tax provision $ 616,000 $ 516,000 Amount of income tax benefit recognized (234,000 ) (197,000 ) Amount charged against net income $ 382,000 $ 319,000 Effect on basic earnings per share $ (0.02 ) $ (0.02 ) Effect on diluted earnings per share $ (0.02 ) $ (0.02 )
Stock Options	Summarized information for all stock options for the three months ended June 30, 2015 and 2016 follows: Three Months Ended June 30, 2015 Three Months Ended June 30, 2016 Shares Average Price Shares Average Price Options outstanding, beginning 1,163,179 $ 27.65 1,115,465 $ 30.36 Options granted 39,700 34.67 44,900 45.74 Options exercised (35,837 ) 19.16 (76,623 ) 22.11 Options cancelled/forfeited — — (9,221 ) 35.43 Options outstanding, ending 1,167,042 $ 28.15 1,074,521 $ 31.56
Stock Options Outstanding and Exercisable	The following table summarizes the status of stock options outstanding and exercisable at June 30, 2016: Weighted Outstanding Exercisable Exercisable Options – Average Options – Options – Weighted Remaining Weighted Number of Average Number of Contractual Average Exercisable Exercise Range of Exercise Price Outstanding Options Life Exercise Price Options Price $9.05 to $23.10 346,085 2.70 $ 20.32 293,659 $ 19.87 $23.11 to $34.77 192,764 3.08 30.74 102,521 28.2 $34.78 to $35.76 233,807 3.99 34.78 7,260 34.78 $35.77 to $46.20 301,865 4.08 43.82 90,554 42.60 Total 1,074,521 3.28 $ 31.56 493,994 $ 25.98
Outstanding Options	A summary of the status for all outstanding options at June 30, 2016, and changes during the three months then ended, is presented in the table below: Number of Options Weighted Average Weighted Average Remaining Aggregate Intrinsic Options outstanding at April 1, 2016 1,115,465 $ 30.36 Granted 44,900 45.74 Exercised (76,623 ) 22.11 Cancelled – forfeited (9,139 ) 35.34 Cancelled – expired (82 ) 44.78 Ending outstanding 1,074,521 $ 31.56 3.28 $ 12,787,075 Ending vested and expected to vest 939,647 $ 30.83 3.17 $ 11,874,296 Ending exercisable at June 30, 2016 493,994 $ 25.98 2.61 $ 8,598,614

Weighted Average Shares and N16

Weighted Average Shares and Net Income Per Share (Tables)	3 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
Calculations of Basic and Diluted Weighted Shares	The calculations of the basic and diluted weighted shares for the three months ended June 30, 2015 and 2016, are as follows: Three Months Ended June 30, 2015 2016 Net Income $ 6,900,000 $ 7,491,000 Basic: Weighted average common shares outstanding 20,149,000 19,572,000 Net Income per share $ 0.34 $ 0.38 Diluted: Weighted average common shares outstanding 20,149,000 19,572,000 Treasury stock impact of stock options 186,000 182,000 Total common and common equivalent shares 20,335,000 19,754,000 Net Income per share $ 0.34 $ 0.38

Other Intangible Assets (Tables

Other Intangible Assets (Tables)	3 Months Ended
	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Other Intangible Assets	Other intangible assets consist of the following at fiscal 2016: Item Life Cost Fiscal 2016 Accumulated Cost, Net of Covenants Not to Compete 5 Years $ 775,000 $ 13,000 $ 775,000 $ — Customer Relationships 18-20 Years 7,922,000 423,000 3,721,000 4,201,000 TPA Licenses 15 Years 204,000 14,000 118,000 86,000 Total $ 8,901,000 $ 450,000 $ 4,614,000 $ 4,287,000 Other intangible assets consist of the following at June 30, 2016: Item Life Cost Three Months Ended Accumulated Cost, Net of Covenants Not to Compete 5 Years $ 775,000 $ — $ 775,000 $ — Customer Relationships 18-20 Years 7,922,000 106,000 3,827,000 4,095,000 TPA Licenses 15 Years 204,000 3,000 121,000 83,000 Total $ 8,901,000 $ 109,000 $ 4,723,000 $ 4,178,000

Basis of Presentation and Sum18

Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Detail)	Jul. 01, 2016USD ($)$ / sharesshares	Jun. 30, 2016USD ($)Customer$ / sharesshares	Jun. 30, 2015Customer	Mar. 31, 2016USD ($)Customer
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Number of shares of common stock repurchased | shares		38,160
Treasury Stock, Value, Acquired, Cost Method		$ 1,600,000
Average price per share of common stock | $ / shares		$ 43.18
Maturities of short term investment interest-bearing securities		90 days
Accounts receivable due period		30 days
Private Equity Funds [Member]
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Investments approved by Board of Director's		$ 2,000,000
Impairment recorded on investment		$ 0		$ 0
Customer Concentration Risk [Member] | Sales Revenue, Net [Member]
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Maximum customer risk percentage		10.00%	10.00%
Number of customer | Customer		0	0
Credit Concentration Risk [Member] | Accounts Receivable [Member]
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Maximum customer risk percentage		10.00%		10.00%
Number of customer | Customer		0		0
Fair Value, Inputs, Level 2 [Member]
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Transfer of assets		$ 0
Fair Value, Inputs, Level 3 [Member]
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Transfer of assets		$ 0
Subsequent Event [Member]
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Number of shares of common stock repurchased | shares	6,651
Treasury Stock, Value, Acquired, Cost Method	$ 294,000
Average price per share of common stock | $ / shares	$ 44.18
Computer Software Property and Equipment [Member]
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Amortization period of computer software		5 years

Stock-Based Compensation and 19

Stock-Based Compensation and Stock Options - Additional Information (Detail) - USD ($)	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non-statutory stock options expiration period	5 years
Options expected forfeiture rate, percentage	13.20%	11.60%
Weighted-average grant-date fair value of options granted	$ 15.91	$ 13.20
Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non-statutory stock options expiration period	10 years
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock grants	19,365,000
Non-statutory stock options vesting period	36 months
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non-statutory stock options vesting period	1 year
Share-based Compensation Award, Tranche One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting Percentage	25.00%
Share-based Compensation Award, Tranche Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting Percentage	75.00%
Time Based Options and Performance Based Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 516,000	$ 616,000
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ (31,000)	$ 79,000

Stock-Based Compensation and 20

Stock-Based Compensation and Stock Options - Fair Value of Options Granted (Detail)	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Risk-free interest rate	1.20%	1.56%
Expected volatility	43.00%	44.00%
Expected dividend yield	0.00%	0.00%
Expected forfeiture rate	13.20%	11.60%
Expected weighted average life of option in years	4 years 1 month 6 days	4 years 4 months 24 days

Stock-Based Compensation and 21

Stock-Based Compensation and Stock Options - Stock Compensation Expense for Time Based Options and Performance Based Options (Detail) - USD ($)	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Effect on basic earnings per share	$ 0.38	$ 0.34
Effect on diluted earnings per share	$ 0.38	$ 0.34
Time Based Options and Performance Based Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total cost of stock-based compensation included in income before income tax provision	$ 516,000	$ 616,000
Amount of income tax benefit recognized	(197,000)	(234,000)
Amount charged against net income	$ 319,000	$ 382,000
Effect on basic earnings per share	$ (0.02)	$ (0.02)
Effect on diluted earnings per share	$ (0.02)	$ (0.02)
Time Based Options and Performance Based Options [Member] | Cost of Revenues [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total cost of stock-based compensation included in income before income tax provision	$ 337,000	$ 311,000
Time Based Options and Performance Based Options [Member] | General and Administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total cost of stock-based compensation included in income before income tax provision	$ 179,000	$ 305,000

Stock-Based Compensation and 22

Stock-Based Compensation and Stock Options - Stock Options (Detail) - $ / shares	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Options outstanding, beginning balance	1,115,465	1,163,179
Options granted, Shares	44,900	39,700
Options exercised, Shares	(76,623)	(35,837)
Options cancelled/forfeited, Shares	(9,221)	0
Options outstanding, ending balance	1,074,521	1,167,042
Options outstanding, beginning Average Price	$ 30.36	$ 27.65
Options granted, Average Price	45.74	34.67
Options exercised, Average Price	22.11	19.16
Options cancelled/forfeited, Average Price	35.43	0
Option outstanding, Weighted Average Exercise Price per Share, ending balance	$ 31.56	$ 28.15

Stock Based Compensation and St

Stock Based Compensation and Stock Options - Stock Options Outstanding and Exercisable (Detail) - $ / shares	3 Months Ended
	Jun. 30, 2016	Mar. 31, 2016	Jun. 30, 2015	Mar. 31, 2015
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Outstanding Options	1,074,521	1,115,465	1,167,042	1,163,179
Weighted Average Remaining Contractual Life	3 years 3 months 11 days
Outstanding Options - Weighted Average Exercise Price	$ 31.56	$ 30.36	$ 28.15	$ 27.65
Exercisable Options - Number of Exercisable Options	493,994
Exercisable Options - Weighted Average Exercise Price	$ 25.98
Range of Exercise Price, $9.05 to $23.10 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Price, lower limit	9.05
Range of Exercise Price, upper limit	$ 23.10
Number of Outstanding Options	346,085
Weighted Average Remaining Contractual Life	2 years 8 months 12 days
Outstanding Options - Weighted Average Exercise Price	$ 20.32
Exercisable Options - Number of Exercisable Options	293,659
Exercisable Options - Weighted Average Exercise Price	$ 19.87
Range of Exercise Price, $23.11 to $34.77 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Price, lower limit	23.11
Range of Exercise Price, upper limit	$ 34.77
Number of Outstanding Options	192,764
Weighted Average Remaining Contractual Life	3 years 29 days
Outstanding Options - Weighted Average Exercise Price	$ 30.74
Exercisable Options - Number of Exercisable Options	102,521
Exercisable Options - Weighted Average Exercise Price	$ 28.20
Range of Exercise Price, $34.78 to $35.76 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Price, lower limit	34.78
Range of Exercise Price, upper limit	$ 35.76
Number of Outstanding Options	233,807
Weighted Average Remaining Contractual Life	3 years 11 months 27 days
Outstanding Options - Weighted Average Exercise Price	$ 34.78
Exercisable Options - Number of Exercisable Options	7,260
Exercisable Options - Weighted Average Exercise Price	$ 34.78
Range of Exercise Price, $35.77 to $46.20 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Price, lower limit	35.77
Range of Exercise Price, upper limit	$ 46.20
Number of Outstanding Options	301,865
Weighted Average Remaining Contractual Life	4 years 29 days
Outstanding Options - Weighted Average Exercise Price	$ 43.82
Exercisable Options - Number of Exercisable Options	90,554
Exercisable Options - Weighted Average Exercise Price	$ 42.60

Stock Based Compensation and 24

Stock Based Compensation and Stock Options - Outstanding Options (Detail) - USD ($)	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Options outstanding, beginning balance	1,115,465	1,163,179
Granted, Number of Options	44,900	39,700
Exercised, Number of Options	(76,623)	(35,837)
Cancelled - forfeited, Number of Options	(9,139)
Cancelled - expired, Number of Options	(82)
Options outstanding, ending balance	1,074,521	1,167,042
Options vested and expected to vest, Number of Options	939,647
Ending exercisable, Number of Options	493,994
Options outstanding, beginning Average Price	$ 30.36	$ 27.65
Granted, Weighted Average Exercise Price per Share	45.74	34.67
Exercised, Weighted Average Exercise Price per Share	22.11	19.16
Cancelled - forfeited, Weighted Average Exercise Price per Share	35.34
Cancelled - expired, Weighted Average Exercise Price per Share	44.78
Option outstanding, Weighted Average Exercise Price per Share, ending balance	31.56	$ 28.15
Options vested and expected to vest, Weighted Average Exercise Price per Share	30.83
Ending exercisable, Weighted Average Exercise Price per Share	$ 25.98
Option outstanding, Weighted Average Remaining Contractual Life (Years)	3 years 3 months 11 days
Options vested and expected to vest, Weighted Average Remaining Contractual Life (Years)	3 years 2 months 1 day
Ending exercisable, Weighted Average Remaining Contractual Life (Years)	2 years 7 months 10 days
Option outstanding, Aggregate Intrinsic Value	$ 12,787,075
Options vested and expected to vest, Aggregate Intrinsic Value	11,874,296
Ending exercisable, Aggregate Intrinsic Value	$ 8,598,614

Treasury Stock and Subsequent25

Treasury Stock and Subsequent Event - Additional Information (Detail) - USD ($)	Jul. 01, 2016	Jun. 30, 2016	Mar. 31, 2016	Nov. 30, 2015	Oct. 31, 2015
Class of Stock [Line Items]
Number of shares of common stock authorized to repurchase		35,000,000		1,000,000	34,000,000
Treasury stock, value		$ 393,450,000	$ 391,803,000
Treasury stock, shares		33,924,419	33,886,259
Average price per share of common stock		$ 43.18
Common stock, shares outstanding		19,596,701	19,562,413
Number of shares of common stock repurchased		38,160
Treasury Stock, Value, Acquired, Cost Method		$ 1,600,000
Subsequent Event [Member]
Class of Stock [Line Items]
Average price per share of common stock	$ 44.18
Number of shares of common stock repurchased	6,651
Treasury Stock, Value, Acquired, Cost Method	$ 294,000
Nineteen Ninety Six Share Repurchase Program [Member]
Class of Stock [Line Items]
Common stock equals to percentage of outstanding common stock		0.63%
Average price per share of common stock		$ 11.60

Weighted Average Shares and N26

Weighted Average Shares and Net Income Per Share - Additional Information (Detail) - shares	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Earnings Per Share [Abstract]
Weighted average common shares outstanding, Basic	19,572,000	20,149,000
Weighted average diluted common and common equivalent shares	19,754,000	20,335,000

Weighted Average Shares and N27

Weighted Average Shares and Net Income Per Share - Calculations of Basic and Diluted Weighted Shares (Detail) - USD ($)	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Earnings Per Share [Abstract]
NET INCOME	$ 7,491,000	$ 6,900,000
Basic:
Weighted average common shares outstanding	19,572,000	20,149,000
Net Income per share, Basic	$ 0.38	$ 0.34
Diluted:
Weighted average common shares outstanding	19,572,000	20,149,000
Treasury stock impact of stock options	182,000	186,000
Total common and common equivalent shares	19,754,000	20,335,000
Net Income per share, Diluted	$ 0.38	$ 0.34

Shareholder Rights Plan - Addit

Shareholder Rights Plan - Additional Information (Detail)	3 Months Ended
	Jun. 30, 2016$ / shares
Equity [Abstract]
Shareholder rights expiration date	Feb. 10, 2022
Shareholder rights exercise price	$ 118
Shareholder Rights Plan, description of acquired entity	Shareholder Rights Plan provides that if a person or group acquires 15% or more of the Company's common stock
Shareholder Rights Plan, percentage of acquired entity	15.00%
Shareholder Rights Plan, description of merged entity	Company is thereafter merged into another entity, or if 50% or more of the Company's consolidated assets or earning power are sold, then the right will entitle its holder to buy common shares of the acquiring entity having a market value equal to two times the then-current exercise price of the right.
Shareholder Rights Plan, percentage of merged entity	50.00%

Other Intangible Assets - Other

Other Intangible Assets - Other Intangible Assets (Detail) - USD ($)	3 Months Ended	12 Months Ended
	Jun. 30, 2016	Mar. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Cost	$ 8,901,000	$ 8,901,000
Amortization Expense	109,000	450,000
Accumulated Amortization	4,723,000	4,614,000
Cost, Net of Accumulated Amortization	$ 4,178,000	$ 4,287,000
Covenants Not to Compete [Member]
Finite-Lived Intangible Assets [Line Items]
Life	5 years	5 years
Cost	$ 775,000	$ 775,000
Amortization Expense	0	13,000
Accumulated Amortization	775,000	775,000
Cost, Net of Accumulated Amortization	0	0
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	7,922,000	7,922,000
Amortization Expense	106,000	423,000
Accumulated Amortization	3,827,000	3,721,000
Cost, Net of Accumulated Amortization	$ 4,095,000	$ 4,201,000
Customer Relationships [Member] | Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Life	18 years	18 years
Customer Relationships [Member] | Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Life	20 years	20 years
TPA Licenses [Member]
Finite-Lived Intangible Assets [Line Items]
Life	15 years	15 years
Cost	$ 204,000	$ 204,000
Amortization Expense	3,000	14,000
Accumulated Amortization	121,000	118,000
Cost, Net of Accumulated Amortization	$ 83,000	$ 86,000

Line of Credit - Additional Inf

Line of Credit - Additional Information (Detail) - USD ($)	1 Months Ended	3 Months Ended
	Sep. 30, 2015	Jun. 30, 2016
Line of Credit Facility [Line Items]
Loan covenants requirements		The loan covenants require the Company to maintain the current assets to liabilities ratio of at least 1.251, debt to tangible net worth not greater than 1.251 and have positive net income.
Current assets to liabilities ratio	125.00%
Debt to tangible net worth	125.00%
Letters of credit in aggregate amount		$ 4,500,000
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Credit facility with borrowing capacity	$ 10,000,000
Fluctuating rate determined by financial institution		Fluctuating rate determined by the financial institution to be 1.50% above the daily one-month LIBOR rate.
Outstanding revolving loans		$ 0
Renewed credit agreement expiration period		2016-09
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member]
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate	1.50%