CorVel (CRVL) 10-Q 3 Feb 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Dec. 31, 2016	Jan. 31, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Dec. 31, 2016
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
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		19,127,982

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Dec. 31, 2016	Mar. 31, 2016
Current Assets
Cash and cash equivalents (Note A)	$ 38,809,000	$ 32,779,000
Customer deposits	30,629,000	25,649,000
Accounts receivable, net	59,181,000	59,747,000
Prepaid taxes and expenses	6,933,000	4,933,000
Total current assets	135,552,000	123,108,000
Property and equipment, net	58,199,000	53,268,000
Goodwill	36,814,000	36,814,000
Other intangibles, net (Note F)	3,960,000	4,287,000
Other assets	3,200,000	2,792,000
TOTAL ASSETS	237,725,000	220,269,000
Current Liabilities
Accounts and taxes payable	16,003,000	13,233,000
Accrued liabilities	71,475,000	67,182,000
Total current liabilities	87,478,000	80,415,000
Deferred income taxes	7,246,000	7,906,000
Total liabilities	94,724,000	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 December 31, 2016; 53,448,672 shares issued (19,562,413 shares outstanding, net of Treasury shares) and 53,544,487 shares issued (19,238,130 shares outstanding, net of Treasury shares) at March 31, 2016 and December 31, 2016, respectively	3,000	3,000
Paid-in capital	135,151,000	130,465,000
Treasury Stock (33,886,259 shares at March 31, 2016 and 34,306,357 shares at December 31, 2016)	(406,928,000)	(391,803,000)
Retained earnings	414,775,000	393,283,000
Total stockholders' equity	143,001,000	131,948,000
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 237,725,000	$ 220,269,000

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 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	53,544,487	53,448,672
Common stock, shares outstanding	19,238,130	19,562,413
Treasury stock, shares	34,306,357	33,886,259

Consolidated Income Statements

Consolidated Income Statements - Unaudited - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Income Statement [Abstract]
REVENUES	$ 128,403,000	$ 123,891,000	$ 385,081,000	$ 375,290,000
Cost of revenues	102,826,000	98,659,000	308,010,000	297,191,000
Gross profit	25,577,000	25,232,000	77,071,000	78,099,000
General and administrative expenses	14,134,000	14,501,000	42,239,000	42,672,000
Income before income tax provision	11,443,000	10,731,000	34,832,000	35,427,000
Income tax provision	4,394,000	4,040,000	13,340,000	13,568,000
NET INCOME	$ 7,049,000	$ 6,691,000	$ 21,492,000	$ 21,859,000
Net income per common and common equivalent share
Basic	$ 0.36	$ 0.34	$ 1.10	$ 1.10
Diluted	$ 0.36	$ 0.34	$ 1.09	$ 1.09
Weighted average common and common equivalent shares
Basic	19,426,000	19,673,000	19,526,000	19,908,000
Diluted	19,549,000	19,852,000	19,679,000	20,083,000

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - Unaudited - USD ($)	9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Cash flows from Operating Activities
NET INCOME	$ 21,492,000	$ 21,859,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	15,617,000	14,908,000
Loss on disposal of assets	424,000	21,000
Stock compensation expense	1,736,000	1,602,000
Write-off of uncollectible accounts	1,684,000	1,096,000
Deferred income tax	(660,000)	(591,000)
Changes in operating assets and liabilities
Accounts receivable	(1,118,000)	564,000
Customer deposits	(4,980,000)	(6,603,000)
Prepaid taxes and expenses	(2,000,000)	4,979,000
Other assets	(137,000)	(711,000)
Accounts and taxes payable	(722,000)	(4,157,000)
Accrued liabilities	4,293,000	3,845,000
Net cash provided by operating activities	35,629,000	36,812,000
Cash Flows from Investing Activities
Investment in private equity	(250,000)	(600,000)
Purchase of property and equipment	(17,173,000)	(11,901,000)
Net cash (used in) investing activities	(17,423,000)	(12,501,000)
Cash Flows from Financing Activities
Purchase of treasury stock	(15,125,000)	(26,778,000)
Tax effect of stock option exercises	880,000	733,000
Exercise of common stock options	1,868,000	2,541,000
Exercise of employee stock purchase options	201,000	181,000
Net cash (used in) financing activities	(12,176,000)	(23,323,000)
(Decrease) Increase in cash and cash equivalents	6,030,000	988,000
Cash and cash equivalents at beginning of period	32,779,000	25,516,000
Cash and cash equivalents at end of period	38,809,000	26,504,000
Supplemental Cash Flow Information:
Income taxes paid	13,929,000	17,188,000
Purchase of software license under finance agreement	$ 3,492,000	$ 0

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	9 Months Ended
	Dec. 31, 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 consolidated financial statements herein have been prepared by CorVel Corporation (“the Company”) pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). The accompanying interim unaudited financial statements have been prepared under the presumption that users of the interim financial information have either read or have access to the audited consolidated 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 consolidated financial statements have been omitted from these interim unaudited consolidated financial statements. The Company evaluated all subsequent events and transactions through the date of filing this report. During the period subsequent to the quarter ended December 31, 2016, the Company repurchased 113,765 shares of common stock for $4,243,000 at an average of $37.29 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 United States generally accepted accounting principles (“GAAP”) 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 and nine months ended December 31, 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 audited 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: The unaudited consolidated financial statements include the accounts of the Company and its subsidiaries. Significant intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates: The preparation of financial statements in compliance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the accompanying unaudited consolidated financial statements. Actual results could differ from those estimates. Significant estimates include the values assigned to intangible assets, capitalized software development, allowance for doubtful accounts, accruals for income taxes, share-based payments related to performance-based awards, loss contingencies, estimated claims for claims administration revenue recognition, estimates used in stock option valuations, and accruals for self-insurance reserves. Cash and Cash Equivalents: Cash and cash equivalents consist of short-term, highly-liquid, investment-grade, interest-bearing securities with maturities of 90 days or less when purchased. Customer deposits represent cash that is expected to be returned or applied towards payment within one year through our provider reimbursement services. Fair Value of Financial Instruments: The Company applies Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification (“ASC”) 820, “Fair Value Measurements and Disclosures,” which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements with respect to fair value measurements of (i) nonfinancial assets and liabilities that are recognized or disclosed at fair value in the Company’s consolidated financial statements on a recurring basis (at least annually) and (ii) all financial assets and liabilities. ASC 820 prioritizes the inputs used in measuring fair value into the following hierarchy: 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 amounts of the Company’s financial instruments (i.e. cash equivalents, accounts receivable, accounts payable) are all Level 1, and the Company approximates their fair values at March 31, 2016 and December 31, 2016. The Company has no Level 2 or Level 3 financial instruments. Note A — Basis of Presentation and Summary of Significant Accounting Policies (continued) Investment in Private Equity: The Company has made an investment of $2,250,000 into a private equity limited partnership that invests in start-up companies primarily in the data analytics industry. The Company accounts for the investment using the cost method and will periodically review the investment for possible impairment. There was no impairment on the investment for the year ended March 31, 2016 or for the nine months ended December 31, 2016. The investment is recorded in other assets on the accompanying consolidated balance sheets. Management has not identified events or changes in circumstances that may have a significant adverse effect on the fair value of the investment, and in accordance with ASC 825-10-50-16 through 50-19, it is not practicable to estimate the fair value of the investment due to the fact that the investment is in a diversified portfolio of companies whose shares are not traded on the open market. Goodwill: The Company accounts for its business combinations in accordance with the FASB ASC 805-10 through ASC 805-50, “Business Combinations,” which (i) requires that the purchase method of accounting be applied to all business combinations and (ii) addresses the criteria for initial recognition of intangible assets and goodwill. In accordance with FASB ASC 350-10 through ASC 350-30, goodwill and other intangible assets with indefinite lives are not amortized but are tested for impairment annually, or more frequently if circumstances indicate the possibility of impairment. If the carrying value of goodwill or an intangible asset exceeds its fair value, an impairment loss shall be recognized. Revenue Recognition: The Company recognizes revenue when (i) there is persuasive evidence of an arrangement, (ii) the services have been provided to the customer, (iii) the sales price is fixed or determinable, and (iv) collectability is reasonably assured. For the Company’s services, the Company’s professional staff is contractually permitted to bill (i) for fees earned for time worked in fraction of an hour increments or (ii) by units of production. The Company recognizes revenue as fees are earned or as units of production are completed, which is when the revenue is earned and realized. Labor costs are recognized as the costs are incurred. The Company derives its revenue from the sale of network solutions and patient management services. Network solutions and patient management services may be sold individually or combined. When a sale combines multiple elements, the Company accounts for such multiple element arrangements in accordance with the guidance included in ASC 605-25. The multiple element arrangements consist of bundled managed care services, which include 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 the 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: On May 28, 2014, the FASB issued ASU 2014-09 regarding ASC Topic 606, . This standard provides principles for recognizing revenue for the transfer of promised goods or services to customers with the consideration to which the entity expects to be entitled in exchange for those goods or services. In July 2015, the FASB approved a one-year delay of the effective date of this new revenue recognition standard. The guidance will now be effective for our fiscal year beginning April 1, 2018. We are currently evaluating the accounting, transition, and disclosure requirements of the standard and cannot currently estimate the impact of adoption on our consolidated financial statements. On November 20, 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes Note A — Basis of Presentation and Summary of Significant Accounting Policies (continued) 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 In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows , which reduces diversity in the practice of how certain transactions are classified in the of cash flows. The new guidance is effective for annual reporting periods beginning after December 15, 2017, with early adoption permitted. The adoption of this guidance will not have a material impact on our consolidated financial statements. Accounts Receivable: The majority of the Company’s accounts receivable is due from companies in the property and casualty insurance industries, self-insured employers, and government entities. Accounts receivable are generally due within 30 days and are stated as amounts due from customers net of an allowance for doubtful accounts. Those accounts outstanding longer than the contractual payment terms are considered past due. The Company determines its allowance by considering a number of factors, including the length of time trade accounts receivable are past due, the Company’s previous loss history, the customer’s current ability to pay its obligation to the Company and the condition of the general economy and the industry as a whole. No one customer accounted for 10% or more of accounts receivable at either March 31, 2016 or December 31, 2016. No one customer accounted for 10% or more of revenue during the three and nine months ended December 31, 2015 and 2016. Property and Equipment: Additions to property and equipment are recorded at cost. Depreciation and amortization are provided using the straight-line method over the estimated useful lives of the related assets, which range from two to seven years or the life of the lease. The Company accounts for internally-developed software costs in accordance with FASB ASC 350-40, “Accounting for the Costs of Computer Software Developed or Obtained for Internal Use,” which allows for the capitalization of software developed for internal use. These costs are included within computer software in property and equipment and are amortized over a period of five years. Long-Lived Assets: The carrying amount of all long-lived assets is evaluated periodically to determine if adjustment to the depreciation and amortization period or to the unamortized balance is warranted. Such evaluation is based principally on the expected utilization of the long-lived assets and the projected, undiscounted cash flows of the operations in which the long-lived assets are deployed. Note A — Basis of Presentation and Summary of Significant Accounting Policies (continued) Income Taxes: The Company provides for income taxes in accordance with provisions specified in ASC 740, “Accounting for Income Taxes”. Accordingly, deferred income tax assets and liabilities are computed for differences between the financial statement and tax bases of assets and liabilities. These differences will result in taxable or deductible amounts in the future, based on tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the periods in which temporary differences become deductible. In making an assessment regarding the probability of realizing a benefit from these deductible differences, management considers the Company’s current and past performance, the market environment in which the Company operates, tax-planning strategies and the length of carry-forward periods for loss carry-forwards, if any. Valuation allowances are established when necessary to reduce deferred tax assets to amounts that are more likely than not to be realized. Further, the Company provides for income tax issues not yet resolved with federal, state and local tax authorities. Earnings per Share: Earnings per common share-basic is based on the weighted average number of common shares outstanding during the period. Earnings per common share-diluted is based on the weighted average number of common shares and common share equivalents outstanding during the period. In calculating earnings per share, earnings are the same for the basic and diluted calculations. Weighted average shares outstanding decreased in the quarter ended December 31, 2016 compared to the same quarter of the prior year primarily due to repurchases of shares under the Company’s share repurchase program. See also Note D.

Stock-Based Compensation and St

Stock-Based Compensation and Stock Options	9 Months Ended
	Dec. 31, 2016
Disclosure Of Compensation Related Costs Sharebased 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 December 31, 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 on the date of grant. Options granted under the Plan are non-statutory stock options and generally vest 25% one year from the date of grant and the remaining 75% vesting ratably each month for the next 36 months. The options granted to employees and the Company’s Board of Directors expire at the end of five years and ten years from date of grant, respectively. All options granted in the nine months ended December 31, 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. 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 dividend yield, the expected forfeiture rate and the expected option life. 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 12.02% and 11.30% for the three months ended December 31, 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 December 31, 2015 and 2016 using the Black-Scholes option-pricing model: Three Months Ended December 31, 2015 2016 Risk-free interest rate 1.65% 1.26% Expected volatility 43% 42% Expected dividend yield 0.00% 0.00% Expected forfeiture rate 12.02% 11.30% Expected weighted average life of option in years 4.5 years 4.5 years For the three months ended December 31, 2015 and 2016, the Company recorded share-based compensation expense of $498,000 and $609,000, respectively. For the nine months ended December 31, 2015 and 2016, the Company recorded share-based compensation expense of $1,602,000 and $1,736,000, respectively. The table below shows the amounts recognized in the unaudited consolidated financial statements for stock compensation expense for time-based options and performance-based options during the three and nine months ended December 31, 2015 and 2016, respectively. Note B — Stock-Based Compensation and Stock Options (continued) Three Months Ended December 31, 2015 December 31, 2016 Cost of revenues $ 321,000 $ 391,000 General and administrative 177,000 218,000 Total cost of stock-based compensation included in income before income tax provision 498,000 609,000 Amount of income tax benefit recognized (188,000 ) (234,000 ) Amount charged against net income $ 310,000 $ 375,000 Effect on basic earnings per share $ (0.02 ) $ (0.02 ) Effect on diluted earnings per share $ (0.02 ) $ (0.02 ) Nine Months Ended December 31, 2015 December 31, 2016 Cost of revenues $ 954,000 $ 1,123,000 General and administrative 648,000 613,000 Total cost of stock-based compensation included in income before income tax provision 1,602,000 1,736,000 Amount of income tax benefit recognized (603,000 ) (667,000 ) Amount charged against net income $ 999,000 $ 1,069,000 Effect on basic earnings per share $ (0.05 ) $ (0.05 ) Effect on diluted earnings per share $ (0.05 ) $ (0.05 ) The following table summarizes information for all stock options for the three and nine months ended December 31, 2015 and 2016: Three Months Ended December 31, 2015 Three Months Ended December 31, 2016 Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Options outstanding, beginning 1,135,586 $ 28.81 1,102,919 $ 32.17 Options granted 155,275 34.78 143,750 32.10 Options exercised (44,077 ) 23.75 (4,256 ) 25.86 Options cancelled/forfeited (15,986 ) 34.64 (3,550 ) 37.17 Options outstanding, ending 1,230,798 $ 29.67 1,238,863 $ 32.17 Nine Months Ended December 31, 2015 Nine Months Ended December 31, 2016 Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Options outstanding, beginning 1,163,179 $ 27.65 1,115,465 $ 29.67 Options granted 242,275 34.44 234,250 36.90 Options exercised (139,718 ) 19.64 (95,472 ) 22.05 Options cancelled/forfeited (34,938 ) 35.63 (15,380 ) 36.55 Options outstanding, ending 1,230,798 $ 29.67 1,238,863 $ 32.17 Note B — Stock-Based Compensation and Stock Options (continued) The following table summarizes the status of stock options outstanding and exercisable at December 31, 2016: Range of Exercise Price Number of Outstanding Options Weighted Average Remaining Contractual Life Outstanding Options – Weighted Average Exercise Price Exercisable Options – Number of Exercisable Options Exercisable Options – Weighted Average Exercise Price $12.71 to $23.10 334,036 2.26 $ 20.45 315,888 $ 20.30 $23.11 to $34.77 329,711 3.61 $ 31.39 122,518 $ 29.33 $34.78 to $40.24 321,779 3.15 $ 35.90 46,335 $ 37.23 $40.25 to $46.20 253,337 3.90 $ 43.91 83,317 $ 43.92 Total 1,238,863 3.19 $ 32.17 568,058 $ 27.09 The following table summarizes the status of all outstanding options at December 31, 2016, and changes during the three months then ended: Number of Options Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value as of December 31, 2016 Options outstanding at October 1, 2016 1,102,919 $ 32.17 Granted 143,750 32.10 Exercised (4,256 ) 25.86 Cancelled – forfeited (1,806 ) 40.72 Cancelled – expired (1,744 ) 33.49 Ending outstanding 1,238,863 $ 32.17 3.19 $ 7,560,784 Ending vested and expected to vest 1,079,830 $ 31.71 3.04 $ 7,167,890 Ending exercisable at December 31, 2016 568,058 $ 27.09 2.32 $ 6,078,397 The weighted-average grant-date fair value of options granted during the three months ended December 31, 2015 and 2016, was $13.68 and $11.99, respectively. Included in the above-noted stock option grants and stock compensation expense are performance-based stock options which vest only upon the Company’s achievement of certain earnings per share 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-based options. However, the Company only recognizes stock compensation expense to the extent that the targets are determined to be probable of being achieved, which triggers the vesting of the performance options. The Company recognized ($35,000) and $0 of stock compensation expense for the three months ended December 31, 2015 and 2016, respectively, for performance-based stock options. The Company recognized ($20,000) and ($47,000) of stock compensation expense for the nine months ended December 31, 2015 and 2016, respectively, for performance-based stock options.

Treasury Stock and Subsequent E

Treasury Stock and Subsequent Event	9 Months Ended
	Dec. 31, 2016
Treasury Stock And Subsequent Event [Abstract]
Treasury Stock and Subsequent Event	Note C — Treasury Stock and Subsequent Event The Company’s Board of Directors 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 the Company’s existing stock repurchase program, 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. Since the commencement of the share repurchase program, the Company has spent $407 million on the repurchase of 34,306,357 shares of its common stock, equal to 64% of the outstanding common stock had there been no repurchases. The average price of these repurchases was $11.86 per share. These repurchases were funded primarily by the net earnings of the Company, along with proceeds from the exercise of common stock options. During the three and nine months ended December 31, 2016, the Company repurchased 318,344 shares of its common stock for $10.9 million at an average price of $34.32 per share of common stock and 420,098 shares of its common stock for $15.1 million at an average price of $36.00 per share of common stock, respectively. The Company had 19,238,130 shares of common stock outstanding as of December 31, 2016, net of the 34,306,357 shares in treasury. During the period subsequent to the quarter ended December 31, 2016, the Company repurchased 113,765 shares of its common stock for $4,243,000 at an average price of $37.29 per share of common stock.

Weighted Average Shares and Net

Weighted Average Shares and Net Income Per Share	9 Months Ended
	Dec. 31, 2016
Earnings Per Share [Abstract]
Weighted Average Shares and Net Income Per Share	Note D — Weighted Average Shares and Net Income Per Share Basic weighted average common shares outstanding decreased from 19,673,000 for the quarter ended December 31, 2015 to 19,426,000 for the quarter ended December 31, 2016. Diluted weighted average common and common equivalent shares outstanding decreased from 19,852,000 for the quarter ended December 31, 2015 to 19,549,000 for the quarter ended December 31, 2016. The net decrease in both of these weighted average 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 Plan. Net income per common and common equivalent share was computed by dividing net income by the weighted average number of common and common share equivalents outstanding during the quarter. The following table sets forth the calculations of the basic and diluted weighted average shares for the three and nine months ended December 31, 2015 and 2016: Three Months Ended December 31, 2015 2016 Net Income $ 6,691,000 $ 7,049,000 Basic: Weighted average common shares outstanding 19,673,000 19,426,000 Net Income per share $ 0.34 $ 0.36 Diluted: Weighted average common shares outstanding 19,673,000 19,426,000 Treasury stock impact of stock options 179,000 123,000 Total common and common equivalent shares 19,852,000 19,549,000 Net Income per share $ 0.34 $ 0.36 Nine Months Ended December 31, 2015 2016 Net Income $ 21,859,000 $ 21,492,000 Basic: Weighted average common shares outstanding 19,908,000 19,526,000 Net Income per share $ 1.10 $ 1.10 Diluted: Weighted average common shares outstanding 19,908,000 19,526,000 Treasury stock impact of stock options 175,000 153,000 Total common and common equivalent shares 20,083,000 19,679,000 Net Income per share $ 1.09 $ 1.09

Shareholder Rights Plan

Shareholder Rights Plan	9 Months Ended
	Dec. 31, 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”). The Shareholder Rights Plan provides for a dividend distribution to the Company’s shareholders of one preferred stock purchase right for each outstanding share of the Company’s common stock held by such shareholder (as used in this Note E, the “right” or the “rights”), only in the event of certain takeover-related events. 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 a 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 are not exercisable until the occurrence of certain takeover-related events, at which time they can be exercised at an exercise price of $118 per share of common stock which carries the right, subject to subsequent adjustments. The rights trade with the Company’s common stock. 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 Company’s Board of Directors, 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	9 Months Ended
	Dec. 31, 2016
Goodwill And Intangible Assets Disclosure [Abstract]
Other Intangible Assets	Note F — Other Intangible Assets The following table summarizes other intangible assets at March 31, 2016: Cost, Net of Fiscal 2016 Accumulated Accumulated Amortization Amortization at Amortization at Item Life Cost Expense March 31, 2016 March 31, 2016 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 The following table summarizes other intangible assets at December 31, 2016: Cost, Net of Nine Months Ended Accumulated Accumulated December 31, 2016 Amortization at Amortization at Item Life Cost Amortization Expense December 31, 2016 December 31, 2016 Covenants Not to Compete 5 Years $ 775,000 $ — $ 775,000 $ — Customer Relationships 18-20 Years 7,922,000 317,000 4,038,000 3,884,000 TPA Licenses 15 Years 204,000 10,000 128,000 76,000 Total $ 8,901,000 $ 327,000 $ 4,941,000 $ 3,960,000

Line of Credit

Line of Credit	9 Months Ended
	Dec. 31, 2016
Debt Disclosure [Abstract]
Line of Credit	Note G — Line of Credit In September 2016, the Company renewed its line of credit agreement with a financial institution, which provides a revolving credit facility with borrowing capacity of up to $10 million. Borrowings under the credit 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 1.0% above the daily one-month LIBOR rate. The loan covenants require the Company to (i) maintain a current assets to liabilities ratio of at least 1.25:1, (ii) maintain a current debt to tangible net worth ratio of not greater than 1.25:1 and (iii) have positive net income. The Company is in compliance with all of its covenants under the credit agreement. There were no outstanding revolving loans as of December 31, 2016, but letters of credit in the aggregate amount of $4.5 million have been issued separately 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 2017.

Contingencies and Legal Proceed

Contingencies and Legal Proceedings	9 Months Ended
	Dec. 31, 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 ordinary 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 operations of the Company.

Accounts and Taxes Payable and

Accounts and Taxes Payable and Accrued Liabilities	9 Months Ended
	Dec. 31, 2016
Payables And Accruals [Abstract]
Accounts and Taxes Payable and Accrued Liabilities	Note I — Accounts and Taxes Payable and Accrued Liabilities The following table sets forth accounts payable, income taxes payable, and accrued liabilities at March 31, 2016 and December 31, 2016: March 31, 2016 December 31, 2016 Accounts payable $ 11,191,000 $ 13,961,000 Income taxes payable and uncertain tax positions 2,042,000 2,042,000 Total accounts and taxes payable $ 13,233,000 $ 16,003,000 March 31, 2016 December 31, 2016 Payroll, payroll taxes and employee benefits $ 18,003,000 $ 17,438,000 Customer deposits 25,649,000 30,629,000 Accrued professional service fees 4,692,000 4,896,000 Self-insurance accruals 3,095,000 2,770,000 Deferred revenue 7,821,000 8,707,000 Accrued rent 4,907,000 4,569,000 Other 3,015,000 2,466,000 Total accrued liabilities $ 67,182,000 $ 71,475,000

Basis of Presentation and Sum15

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation: The unaudited consolidated financial statements include the accounts of the Company and its subsidiaries. Significant intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates: The preparation of financial statements in compliance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the accompanying unaudited consolidated financial statements. Actual results could differ from those estimates. Significant estimates include the values assigned to intangible assets, capitalized software development, allowance for doubtful accounts, accruals for income taxes, share-based payments related to performance-based awards, loss contingencies, estimated claims for claims administration revenue recognition, estimates used in stock option valuations, and accruals for self-insurance reserves.
Cash and Cash Equivalents	Cash and Cash Equivalents: Cash and cash equivalents consist of short-term, highly-liquid, investment-grade, interest-bearing securities with maturities of 90 days or less when purchased. Customer deposits represent cash that is expected to be returned or applied towards payment within one year through our provider reimbursement services.
Fair Value of Financial Instruments	Fair Value of Financial Instruments: The Company applies Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification (“ASC”) 820, “Fair Value Measurements and Disclosures,” which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements with respect to fair value measurements of (i) nonfinancial assets and liabilities that are recognized or disclosed at fair value in the Company’s consolidated financial statements on a recurring basis (at least annually) and (ii) all financial assets and liabilities. ASC 820 prioritizes the inputs used in measuring fair value into the following hierarchy: 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 amounts of the Company’s financial instruments (i.e. cash equivalents, accounts receivable, accounts payable) are all Level 1, and the Company approximates their fair values at March 31, 2016 and December 31, 2016. The Company has no Level 2 or Level 3 financial instruments.
Investment in Private Equity	Investment in Private Equity: The Company has made an investment of $ 2,250,000 into a private equity limited partnership that invests in start-up companies primarily in the data analytics industry. The Company accounts for the investment using the cost method and will periodically review the investment for possible impairment. There was no impairment on the investment for the year ended March 31, 2016 or for the nine months ended December 31, 2016. The investment is recorded in other assets on the accompanying consolidated balance sheets. Management has not identified events or changes in circumstances that may have a significant adverse effect on the fair value of the investment, and in accordance with ASC 825-10-50-16 through 50-19, it is not practicable to estimate the fair value of the investment due to the fact that the investment is in a diversified portfolio of companies whose shares are not traded on the open market.
Goodwill	Goodwill: The Company accounts for its business combinations in accordance with the FASB ASC 805-10 through ASC 805-50, “Business Combinations,” which (i) requires that the purchase method of accounting be applied to all business combinations and (ii) addresses the criteria for initial recognition of intangible assets and goodwill. In accordance with FASB ASC 350-10 through ASC 350-30, goodwill and other intangible assets with indefinite lives are not amortized but are tested for impairment annually, or more frequently if circumstances indicate the possibility of impairment. If the carrying value of goodwill or an intangible asset exceeds its fair value, an impairment loss shall be recognized.
Revenue Recognition	Revenue Recognition: The Company recognizes revenue when (i) there is persuasive evidence of an arrangement, (ii) the services have been provided to the customer, (iii) the sales price is fixed or determinable, and (iv) collectability is reasonably assured. For the Company’s services, the Company’s professional staff is contractually permitted to bill (i) for fees earned for time worked in fraction of an hour increments or (ii) by units of production. The Company recognizes revenue as fees are earned or as units of production are completed, which is when the revenue is earned and realized. Labor costs are recognized as the costs are incurred. The Company derives its revenue from the sale of network solutions and patient management services. Network solutions and patient management services may be sold individually or combined. When a sale combines multiple elements, the Company accounts for such multiple element arrangements in accordance with the guidance included in ASC 605-25. The multiple element arrangements consist of bundled managed care services, which include 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 the 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: On May 28, 2014, the FASB issued ASU 2014-09 regarding ASC Topic 606, . This standard provides principles for recognizing revenue for the transfer of promised goods or services to customers with the consideration to which the entity expects to be entitled in exchange for those goods or services. In July 2015, the FASB approved a one-year delay of the effective date of this new revenue recognition standard. The guidance will now be effective for our fiscal year beginning April 1, 2018. We are currently evaluating the accounting, transition, and disclosure requirements of the standard and cannot currently estimate the impact of adoption on our consolidated financial statements. 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 In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows , which reduces diversity in the practice of how certain transactions are classified in the of cash flows. The new guidance is effective for annual reporting periods beginning after December 15, 2017, with early adoption permitted. The adoption of this guidance will not have a material impact on our consolidated financial statements.
Accounts Receivable	Accounts Receivable: The majority of the Company’s accounts receivable is due from companies in the property and casualty insurance industries, self-insured employers, and government entities. Accounts receivable are generally due within 30 days and are stated as amounts due from customers net of an allowance for doubtful accounts. Those accounts outstanding longer than the contractual payment terms are considered past due. The Company determines its allowance by considering a number of factors, including the length of time trade accounts receivable are past due, the Company’s previous loss history, the customer’s current ability to pay its obligation to the Company and the condition of the general economy and the industry as a whole. No one customer accounted for 10% or more of accounts receivable at either March 31, 2016 or December 31, 2016. No one customer accounted for 10% or more of revenue during the three and nine months ended December 31, 2015 and 2016.
Property and Equipment	Property and Equipment: Additions to property and equipment are recorded at cost. Depreciation and amortization are provided using the straight-line method over the estimated useful lives of the related assets, which range from two to seven years or the life of the lease. The Company accounts for internally-developed software costs in accordance with FASB ASC 350-40, “Accounting for the Costs of Computer Software Developed or Obtained for Internal Use,” which allows for the capitalization of software developed for internal use. These costs are included within computer software in property and equipment and are amortized over a period of five years.
Long-Lived Assets	Long-Lived Assets: The carrying amount of all long-lived assets is evaluated periodically to determine if adjustment to the depreciation and amortization period or to the unamortized balance is warranted. Such evaluation is based principally on the expected utilization of the long-lived assets and the projected, undiscounted cash flows of the operations in which the long-lived assets are deployed.
Income Taxes	Income Taxes: The Company provides for income taxes in accordance with provisions specified in ASC 740, “Accounting for Income Taxes”. Accordingly, deferred income tax assets and liabilities are computed for differences between the financial statement and tax bases of assets and liabilities. These differences will result in taxable or deductible amounts in the future, based on tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the periods in which temporary differences become deductible. In making an assessment regarding the probability of realizing a benefit from these deductible differences, management considers the Company’s current and past performance, the market environment in which the Company operates, tax-planning strategies and the length of carry-forward periods for loss carry-forwards, if any. Valuation allowances are established when necessary to reduce deferred tax assets to amounts that are more likely than not to be realized. Further, the Company provides for income tax issues not yet resolved with federal, state and local tax authorities.
Earnings per Share	Earnings per Share: Earnings per common share-basic is based on the weighted average number of common shares outstanding during the period. Earnings per common share-diluted is based on the weighted average number of common shares and common share equivalents outstanding during the period. In calculating earnings per share, earnings are the same for the basic and diluted calculations. Weighted average shares outstanding decreased in the quarter ended December 31, 2016 compared to the same quarter of the prior year primarily due to repurchases of shares under the Company’s share repurchase program. See also Note D.

Stock-Based Compensation and 16

Stock-Based Compensation and Stock Options (Tables)	9 Months Ended
	Dec. 31, 2016
Disclosure Of Compensation Related Costs Sharebased 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 December 31, 2015 and 2016 using the Black-Scholes option-pricing model: Three Months Ended December 31, 2015 2016 Risk-free interest rate 1.65% 1.26% Expected volatility 43% 42% Expected dividend yield 0.00% 0.00% Expected forfeiture rate 12.02% 11.30% Expected weighted average life of option in years 4.5 years 4.5 years
Stock Compensation Expense for Time Based Options and Performance Based Options	The table below shows the amounts recognized in the unaudited consolidated financial statements for stock compensation expense for time-based options and performance-based options during the three and nine months ended December 31, 2015 and 2016, respectively. Note B — Stock-Based Compensation and Stock Options (continued) Three Months Ended December 31, 2015 December 31, 2016 Cost of revenues $ 321,000 $ 391,000 General and administrative 177,000 218,000 Total cost of stock-based compensation included in income before income tax provision 498,000 609,000 Amount of income tax benefit recognized (188,000 ) (234,000 ) Amount charged against net income $ 310,000 $ 375,000 Effect on basic earnings per share $ (0.02 ) $ (0.02 ) Effect on diluted earnings per share $ (0.02 ) $ (0.02 ) Nine Months Ended December 31, 2015 December 31, 2016 Cost of revenues $ 954,000 $ 1,123,000 General and administrative 648,000 613,000 Total cost of stock-based compensation included in income before income tax provision 1,602,000 1,736,000 Amount of income tax benefit recognized (603,000 ) (667,000 ) Amount charged against net income $ 999,000 $ 1,069,000 Effect on basic earnings per share $ (0.05 ) $ (0.05 ) Effect on diluted earnings per share $ (0.05 ) $ (0.05 )
Stock Options	The following table summarizes information for all stock options for the three and nine months ended December 31, 2015 and 2016: Three Months Ended December 31, 2015 Three Months Ended December 31, 2016 Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Options outstanding, beginning 1,135,586 $ 28.81 1,102,919 $ 32.17 Options granted 155,275 34.78 143,750 32.10 Options exercised (44,077 ) 23.75 (4,256 ) 25.86 Options cancelled/forfeited (15,986 ) 34.64 (3,550 ) 37.17 Options outstanding, ending 1,230,798 $ 29.67 1,238,863 $ 32.17 Nine Months Ended December 31, 2015 Nine Months Ended December 31, 2016 Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Options outstanding, beginning 1,163,179 $ 27.65 1,115,465 $ 29.67 Options granted 242,275 34.44 234,250 36.90 Options exercised (139,718 ) 19.64 (95,472 ) 22.05 Options cancelled/forfeited (34,938 ) 35.63 (15,380 ) 36.55 Options outstanding, ending 1,230,798 $ 29.67 1,238,863 $ 32.17
Stock Options Outstanding and Exercisable	The following table summarizes the status of stock options outstanding and exercisable at December 31, 2016: Range of Exercise Price Number of Outstanding Options Weighted Average Remaining Contractual Life Outstanding Options – Weighted Average Exercise Price Exercisable Options – Number of Exercisable Options Exercisable Options – Weighted Average Exercise Price $12.71 to $23.10 334,036 2.26 $ 20.45 315,888 $ 20.30 $23.11 to $34.77 329,711 3.61 $ 31.39 122,518 $ 29.33 $34.78 to $40.24 321,779 3.15 $ 35.90 46,335 $ 37.23 $40.25 to $46.20 253,337 3.90 $ 43.91 83,317 $ 43.92 Total 1,238,863 3.19 $ 32.17 568,058 $ 27.09
Outstanding Options	The following table summarizes the status of all outstanding options at December 31, 2016, and changes during the three months then ended: Number of Options Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value as of December 31, 2016 Options outstanding at October 1, 2016 1,102,919 $ 32.17 Granted 143,750 32.10 Exercised (4,256 ) 25.86 Cancelled – forfeited (1,806 ) 40.72 Cancelled – expired (1,744 ) 33.49 Ending outstanding 1,238,863 $ 32.17 3.19 $ 7,560,784 Ending vested and expected to vest 1,079,830 $ 31.71 3.04 $ 7,167,890 Ending exercisable at December 31, 2016 568,058 $ 27.09 2.32 $ 6,078,397

Weighted Average Shares and N17

Weighted Average Shares and Net Income Per Share (Tables)	9 Months Ended
	Dec. 31, 2016
Earnings Per Share [Abstract]
Calculations of Basic and Diluted Weighted Average Shares	The following table sets forth the calculations of the basic and diluted weighted average shares for the three and nine months ended December 31, 2015 and 2016: Three Months Ended December 31, 2015 2016 Net Income $ 6,691,000 $ 7,049,000 Basic: Weighted average common shares outstanding 19,673,000 19,426,000 Net Income per share $ 0.34 $ 0.36 Diluted: Weighted average common shares outstanding 19,673,000 19,426,000 Treasury stock impact of stock options 179,000 123,000 Total common and common equivalent shares 19,852,000 19,549,000 Net Income per share $ 0.34 $ 0.36 Nine Months Ended December 31, 2015 2016 Net Income $ 21,859,000 $ 21,492,000 Basic: Weighted average common shares outstanding 19,908,000 19,526,000 Net Income per share $ 1.10 $ 1.10 Diluted: Weighted average common shares outstanding 19,908,000 19,526,000 Treasury stock impact of stock options 175,000 153,000 Total common and common equivalent shares 20,083,000 19,679,000 Net Income per share $ 1.09 $ 1.09

Other Intangible Assets (Tables

Other Intangible Assets (Tables)	9 Months Ended
	Dec. 31, 2016
Goodwill And Intangible Assets Disclosure [Abstract]
Other Intangible Assets	The following table summarizes other intangible assets at March 31, 2016: Cost, Net of Fiscal 2016 Accumulated Accumulated Amortization Amortization at Amortization at Item Life Cost Expense March 31, 2016 March 31, 2016 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 The following table summarizes other intangible assets at December 31, 2016: Cost, Net of Nine Months Ended Accumulated Accumulated December 31, 2016 Amortization at Amortization at Item Life Cost Amortization Expense December 31, 2016 December 31, 2016 Covenants Not to Compete 5 Years $ 775,000 $ — $ 775,000 $ — Customer Relationships 18-20 Years 7,922,000 317,000 4,038,000 3,884,000 TPA Licenses 15 Years 204,000 10,000 128,000 76,000 Total $ 8,901,000 $ 327,000 $ 4,941,000 $ 3,960,000

Accounts and Taxes Payable an19

Accounts and Taxes Payable and Accrued Liabilities (Tables)	9 Months Ended
	Dec. 31, 2016
Payables And Accruals [Abstract]
Accounts Payable, Income Taxes Payable and Accrued Liabilities	The following table sets forth accounts payable, income taxes payable, and accrued liabilities at March 31, 2016 and December 31, 2016: March 31, 2016 December 31, 2016 Accounts payable $ 11,191,000 $ 13,961,000 Income taxes payable and uncertain tax positions 2,042,000 2,042,000 Total accounts and taxes payable $ 13,233,000 $ 16,003,000 March 31, 2016 December 31, 2016 Payroll, payroll taxes and employee benefits $ 18,003,000 $ 17,438,000 Customer deposits 25,649,000 30,629,000 Accrued professional service fees 4,692,000 4,896,000 Self-insurance accruals 3,095,000 2,770,000 Deferred revenue 7,821,000 8,707,000 Accrued rent 4,907,000 4,569,000 Other 3,015,000 2,466,000 Total accrued liabilities $ 67,182,000 $ 71,475,000

Basis of Presentation and Sum20

Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Detail)	Jan. 01, 2017USD ($)$ / sharesshares	Dec. 31, 2016USD ($)Customer$ / sharesshares	Dec. 31, 2015Customer	Dec. 31, 2016USD ($)Customer$ / sharesshares	Dec. 31, 2015Customer	Mar. 31, 2016USD ($)Customer
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Number of shares of common stock repurchased | shares		318,344		420,098
Treasury Stock, Value, Acquired, Cost Method		$ 10,900,000		$ 15,100,000
Average price per share of common stock | $ / shares		$ 34.32		$ 36
Maturities of short term investment interest-bearing securities				90 days
Accounts receivable due period				30 days
Computer Software Property and Equipment [Member]
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Amortization period of computer software				5 years
Minimum [Member]
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Estimated useful life of property and equipment				2 years
Maximum [Member]
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Estimated useful life of property and equipment				7 years
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%	10.00%	10.00%
Number of customer | Customer		0	0	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
Private Equity Funds [Member]
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Investment		$ 2,250,000		$ 2,250,000
Impairment recorded on investment				0		$ 0
Fair Value, Inputs, Level 2 [Member]
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Transfer of assets		0		0
Fair Value, Inputs, Level 3 [Member]
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Transfer of assets		$ 0		$ 0
Subsequent Event [Member]
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Number of shares of common stock repurchased | shares	113,765
Treasury Stock, Value, Acquired, Cost Method	$ 4,243,000
Average price per share of common stock | $ / shares	$ 37.29

Stock-Based Compensation and 21

Stock-Based Compensation and Stock Options - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 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	11.30%	12.02%
Weighted-average grant-date fair value of options granted	$ 11.99	$ 13.68
Time Based Options and Performance Based Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 609,000	$ 498,000	$ 1,736,000	$ 1,602,000
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 0	$ (35,000)	$ (47,000)	$ (20,000)
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		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%

Stock-Based Compensation and 22

Stock-Based Compensation and Stock Options - Fair Value of Options Granted (Detail)	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Risk-free interest rate	1.26%	1.65%
Expected volatility	42.00%	43.00%
Expected dividend yield	0.00%	0.00%
Expected forfeiture rate	11.30%	12.02%
Expected weighted average life of option in years	4 years 6 months	4 years 6 months

Stock-Based Compensation and 23

Stock-Based Compensation and Stock Options - Stock Compensation Expense for Time Based Options and Performance Based Options (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Effect on basic earnings per share	$ 0.36	$ 0.34	$ 1.10	$ 1.10
Effect on diluted earnings per share	$ 0.36	$ 0.34	$ 1.09	$ 1.09
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	$ 609,000	$ 498,000	$ 1,736,000	$ 1,602,000
Amount of income tax benefit recognized	(234,000)	(188,000)	(667,000)	(603,000)
Amount charged against net income	$ 375,000	$ 310,000	$ 1,069,000	$ 999,000
Effect on basic earnings per share	$ (0.02)	$ (0.02)	$ (0.05)	$ (0.05)
Effect on diluted earnings per share	$ (0.02)	$ (0.02)	$ (0.05)	$ (0.05)
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	$ 391,000	$ 321,000	$ 1,123,000	$ 954,000
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	$ 218,000	$ 177,000	$ 613,000	$ 648,000

Stock-Based Compensation and 24

Stock-Based Compensation and Stock Options - Stock Options (Detail) - $ / shares	3 Months Ended		9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Options outstanding, beginning balance	1,102,919	1,135,586	1,115,465	1,163,179
Options granted, Shares	143,750	155,275	234,250	242,275
Options exercised, Shares	(4,256)	(44,077)	(95,472)	(139,718)
Options cancelled/forfeited, Shares	(3,550)	(15,986)	(15,380)	(34,938)
Options outstanding, ending balance	1,238,863	1,230,798	1,238,863	1,230,798
Options outstanding, beginning, Weighted Average Exercise Price	$ 32.17	$ 28.81	$ 29.67	$ 27.65
Options granted, Weighted Average Exercise Price	32.10	34.78	36.90	34.44
Options exercised, Weighted Average Exercise Price	25.86	23.75	22.05	19.64
Options cancelled/forfeited, Weighted Average Exercise Price	37.17	34.64	36.55	35.63
Options outstanding, ending, Weighted Average Exercise Price	$ 32.17	$ 29.67	$ 32.17	$ 29.67

Stock Based Compensation and St

Stock Based Compensation and Stock Options - Stock Options Outstanding and Exercisable (Detail) - $ / shares	9 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Mar. 31, 2015
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Outstanding Options	1,238,863	1,102,919	1,115,465	1,230,798	1,135,586	1,163,179
Weighted Average Remaining Contractual Life	3 years 2 months 9 days
Outstanding Options - Weighted Average Exercise Price	$ 32.17	$ 32.17	$ 29.67	$ 29.67	$ 28.81	$ 27.65
Exercisable Options - Number of Exercisable Options	568,058
Exercisable Options - Weighted Average Exercise Price	$ 27.09
Range of Exercise Price, $12.71 to $23.10 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Price, lower limit	12.71
Range of Exercise Price, upper limit	$ 23.10
Number of Outstanding Options	334,036
Weighted Average Remaining Contractual Life	2 years 3 months 4 days
Outstanding Options - Weighted Average Exercise Price	$ 20.45
Exercisable Options - Number of Exercisable Options	315,888
Exercisable Options - Weighted Average Exercise Price	$ 20.30
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	329,711
Weighted Average Remaining Contractual Life	3 years 7 months 10 days
Outstanding Options - Weighted Average Exercise Price	$ 31.39
Exercisable Options - Number of Exercisable Options	122,518
Exercisable Options - Weighted Average Exercise Price	$ 29.33
Range of Exercise Price, $34.78 to $40.24 [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	$ 40.24
Number of Outstanding Options	321,779
Weighted Average Remaining Contractual Life	3 years 1 month 24 days
Outstanding Options - Weighted Average Exercise Price	$ 35.90
Exercisable Options - Number of Exercisable Options	46,335
Exercisable Options - Weighted Average Exercise Price	$ 37.23
Range of Exercise Price, $40.25 to $46.20 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Price, lower limit	40.25
Range of Exercise Price, upper limit	$ 46.20
Number of Outstanding Options	253,337
Weighted Average Remaining Contractual Life	3 years 10 months 24 days
Outstanding Options - Weighted Average Exercise Price	$ 43.91
Exercisable Options - Number of Exercisable Options	83,317
Exercisable Options - Weighted Average Exercise Price	$ 43.92

Stock Based Compensation and 26

Stock Based Compensation and Stock Options - Outstanding Options (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Options outstanding, beginning balance	1,102,919	1,135,586	1,115,465	1,163,179
Granted, Number of Options	143,750	155,275	234,250	242,275
Exercised, Number of Options	(4,256)	(44,077)	(95,472)	(139,718)
Cancelled - forfeited, Number of Options	(1,806)
Cancelled - expired, Number of Options	(1,744)
Options outstanding, ending balance	1,238,863	1,230,798	1,238,863	1,230,798
Options vested and expected to vest, Number of Options	1,079,830		1,079,830
Ending exercisable, Number of Options	568,058		568,058
Options outstanding, beginning, Weighted Average Exercise Price	$ 32.17	$ 28.81	$ 29.67	$ 27.65
Granted, Weighted Average Exercise Price per Share	32.10	34.78	36.90	34.44
Exercised, Weighted Average Exercise Price per Share	25.86	23.75	22.05	19.64
Cancelled - forfeited, Weighted Average Exercise Price per Share	40.72
Cancelled - expired, Weighted Average Exercise Price per Share	33.49
Options outstanding, ending, Weighted Average Exercise Price	32.17	$ 29.67	32.17	$ 29.67
Options vested and expected to vest, Weighted Average Exercise Price per Share	31.71		31.71
Ending exercisable, Weighted Average Exercise Price per Share	$ 27.09		$ 27.09
Option outstanding, Weighted Average Remaining Contractual Life (Years)	3 years 2 months 9 days
Options vested and expected to vest, Weighted Average Remaining Contractual Life (Years)	3 years 15 days
Ending exercisable, Weighted Average Remaining Contractual Life (Years)	2 years 3 months 26 days
Option outstanding, Aggregate Intrinsic Value	$ 7,560,784		$ 7,560,784
Options vested and expected to vest, Aggregate Intrinsic Value	7,167,890		7,167,890
Ending exercisable, Aggregate Intrinsic Value	$ 6,078,397		$ 6,078,397

Treasury Stock and Subsequent27

Treasury Stock and Subsequent Event - Additional Information (Detail) - USD ($)	Jan. 01, 2017	Dec. 31, 2016	Dec. 31, 2016	Mar. 31, 2016	Nov. 30, 2015
Class of Stock [Line Items]
Number of shares of common stock authorized to repurchase		35,000,000	35,000,000		1,000,000
Treasury stock, value		$ 406,928,000	$ 406,928,000	$ 391,803,000
Treasury stock, shares		34,306,357	34,306,357	33,886,259
Average price per share of common stock		$ 34.32	$ 36
Common stock, shares outstanding		19,238,130	19,238,130	19,562,413
Number of shares of common stock repurchased		318,344	420,098
Treasury Stock, Value, Acquired, Cost Method		$ 10,900,000	$ 15,100,000
Subsequent Event [Member]
Class of Stock [Line Items]
Average price per share of common stock	$ 37.29
Number of shares of common stock repurchased	113,765
Treasury Stock, Value, Acquired, Cost Method	$ 4,243,000
Nineteen Ninety Six Share Repurchase Program [Member]
Class of Stock [Line Items]
Common stock equals to percentage of outstanding common stock			64.00%
Average price per share of common stock			$ 11.86

Weighted Average Shares and N28

Weighted Average Shares and Net Income Per Share - Additional Information (Detail) - shares	3 Months Ended		9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Earnings Per Share [Abstract]
Basic weighted average common shares outstanding	19,426,000	19,673,000	19,526,000	19,908,000
Diluted weighted average common and common equivalent shares outstanding	19,549,000	19,852,000	19,679,000	20,083,000

Weighted Average Shares and N29

Weighted Average Shares and Net Income Per Share - Calculations of Basic and Diluted Weighted Average Shares (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Earnings Per Share [Abstract]
Net Income	$ 7,049,000	$ 6,691,000	$ 21,492,000	$ 21,859,000
Basic:
Weighted average common shares outstanding	19,426,000	19,673,000	19,526,000	19,908,000
Net Income per share	$ 0.36	$ 0.34	$ 1.10	$ 1.10
Diluted:
Weighted average common shares outstanding	19,426,000	19,673,000	19,526,000	19,908,000
Treasury stock impact of stock options	123,000	179,000	153,000	175,000
Total common and common equivalent shares	19,549,000	19,852,000	19,679,000	20,083,000
Net Income per share	$ 0.36	$ 0.34	$ 1.09	$ 1.09

Shareholder Rights Plan - Addit

Shareholder Rights Plan - Additional Information (Detail)	9 Months Ended
	Dec. 31, 2016$ / shares
Equity [Abstract]
Dividend distribution ratio of preferred share purchase right for outstanding share of common stock	100.00%
Shareholder rights expiration date	Feb. 10, 2022
Shareholder rights exercise price per share of common stock	$ 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 ($)	9 Months Ended	12 Months Ended
	Dec. 31, 2016	Mar. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Cost	$ 8,901,000	$ 8,901,000
Amortization Expense	327,000	450,000
Accumulated Amortization	4,941,000	4,614,000
Cost, Net of Accumulated Amortization	$ 3,960,000	$ 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	317,000	423,000
Accumulated Amortization	4,038,000	3,721,000
Cost, Net of Accumulated Amortization	$ 3,884,000	$ 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	10,000	14,000
Accumulated Amortization	128,000	118,000
Cost, Net of Accumulated Amortization	$ 76,000	$ 86,000

Line of Credit - Additional Inf

Line of Credit - Additional Information (Detail) - USD ($)	1 Months Ended	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2016
Line of Credit Facility [Line Items]
Loan covenants requirements		The loan covenants require the Company to (i) maintain a current assets to liabilities ratio of at least 1.25:1, (ii) maintain a current debt to tangible net worth ratio of not greater than 1.25:1 and (iii) have positive net income.
Current assets to liabilities ratio	125.00%
Current debt to tangible net worth ratio	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
Interest rate above one month LIBOR rate	1.00%
Fluctuating rate determined by financial institution		fluctuating rate determined by the financial institution to be 1.0% above the daily one-month LIBOR rate.
Outstanding revolving loans		$ 0
Renewed credit agreement expiration period		2017-09
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%

Accounts and Taxes Payable an33

Accounts and Taxes Payable and Accrued Liabilities - Accounts Payable and Income Taxes Payable (Detail) - USD ($)	Dec. 31, 2016	Mar. 31, 2016
Payables And Accruals [Abstract]
Accounts payable	$ 13,961,000	$ 11,191,000
Income taxes payable and uncertain tax positions	2,042,000	2,042,000
Total accounts and taxes payable	$ 16,003,000	$ 13,233,000

Accounts and Taxes Payable an34

Accounts and Taxes Payable and Accrued Liabilities - Accrued Liabilities (Detail) - USD ($)	Dec. 31, 2016	Mar. 31, 2016
Payables And Accruals [Abstract]
Payroll, payroll taxes and employee benefits	$ 17,438,000	$ 18,003,000
Customer deposits	30,629,000	25,649,000
Accrued professional service fees	4,896,000	4,692,000
Self-insurance accruals	2,770,000	3,095,000
Deferred revenue	8,707,000	7,821,000
Accrued rent	4,569,000	4,907,000
Other	2,466,000	3,015,000
Total accrued liabilities	$ 71,475,000	$ 67,182,000