Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Mar. 31, 2017 | Jun. 06, 2017 | Sep. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Mar. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | CRVL | ||
Entity Registrant Name | CORVEL CORP | ||
Entity Central Index Key | 874,866 | ||
Current Fiscal Year End Date | --03-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 18,754,764 | ||
Entity Public Float | $ 392,673,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Income Statement [Abstract] | |||
Revenues | $ 518,686,000 | $ 503,584,000 | $ 492,625,000 |
Cost of revenues | 413,894,000 | 399,040,000 | 392,656,000 |
Gross profit | 104,792,000 | 104,544,000 | 99,969,000 |
General and administrative | 57,243,000 | 58,484,000 | 54,405,000 |
Income before income taxes | 47,549,000 | 46,060,000 | 45,564,000 |
Income tax provision | 18,070,000 | 17,535,000 | 16,974,000 |
Net income | $ 29,479,000 | $ 28,525,000 | $ 28,590,000 |
Net income per share: | |||
Basic | $ 1.52 | $ 1.44 | $ 1.38 |
Diluted | $ 1.51 | $ 1.43 | $ 1.37 |
Weighted average shares outstanding: | |||
Basic | 19,418,000 | 19,826,000 | 20,669,000 |
Diluted | 19,570,000 | 20,004,000 | 20,890,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Mar. 31, 2017 | Mar. 31, 2016 |
Current Assets | ||
Cash and cash equivalents | $ 28,611,000 | $ 32,779,000 |
Customer deposits | 32,471,000 | 25,649,000 |
Accounts receivable (less allowance for doubtful accounts of $1,821,000 at March 31, 2016 and $3,001,000 at March 31, 2017) | 62,841,000 | 59,747,000 |
Prepaid expenses and taxes | 4,944,000 | 4,933,000 |
Total current assets | 128,867,000 | 123,108,000 |
Property and equipment, net | 63,042,000 | 53,268,000 |
Goodwill | 36,814,000 | 36,814,000 |
Other intangible assets, net | 3,851,000 | 4,287,000 |
Other assets | 2,809,000 | 2,792,000 |
Total assets | 235,383,000 | 220,269,000 |
Current Liabilities | ||
Accounts and taxes payable | 16,583,000 | 13,233,000 |
Accrued liabilities | 73,468,000 | 67,182,000 |
Total current liabilities | 90,051,000 | 80,415,000 |
Deferred income taxes | 6,686,000 | 7,906,000 |
Total liabilities | 96,737,000 | 88,321,000 |
Commitments and contingencies (Notes E, F, H, I, J and L) | 0 | 0 |
Stockholders' Equity | ||
Common stock, $.0001 par value: 120,000,000 shares authorized at March 31, 2016 and 2017; 53,448,672 shares issued (19,562,413 shares outstanding, net of treasury shares) and 53,569,067 shares issued (18,937,233 shares outstanding, net of treasury shares) at March 31, 2016 and March 31, 2017, respectively | 3,000 | 3,000 |
Paid-in-capital | 135,683,000 | 130,465,000 |
Treasury Stock, at cost (33,886,259 and 34,631,834 shares at March 31, 2016 and 2017, respectively) | (419,802,000) | (391,803,000) |
Retained earnings | 422,762,000 | 393,283,000 |
Total stockholders' equity | 138,646,000 | 131,948,000 |
Total liabilities and stockholders' equity | $ 235,383,000 | $ 220,269,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Mar. 31, 2017 | Mar. 31, 2016 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful debts, accounts receivable | $ 3,001,000 | $ 1,821,000 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 120,000,000 | 120,000,000 |
Common stock, shares issued | 53,569,067 | 53,448,672 |
Common stock, shares outstanding | 18,937,233 | 19,562,413 |
Treasury stock, shares | 34,631,834 | 33,886,259 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Total | Common Stock [Member] | Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] |
Beginning balance at Mar. 31, 2014 | $ 126,522,000 | $ 3,000 | $ 118,831,000 | $ (328,480,000) | $ 336,168,000 |
Beginning balance, shares at Mar. 31, 2014 | 53,126,866 | (32,147,474) | |||
Stock issued under employee stock purchase plan | 400,000 | 400,000 | |||
Stock issued under employee stock purchase plan, shares | 12,299 | ||||
Stock issued under stock option plan, net of shares repurchased | 1,603,000 | 1,603,000 | |||
Stock issued under stock option plan, net of shares repurchased, shares | 103,992 | ||||
Stock-based compensation expense | 2,209,000 | 2,209,000 | |||
Income tax benefits from stock option exercises | 397,000 | 397,000 | |||
Purchase of treasury stock | $ (31,798,000) | $ (31,798,000) | |||
Purchase of treasury stock, shares | (845,014) | (845,014) | |||
Net income | $ 28,590,000 | 28,590,000 | |||
Ending balance at Mar. 31, 2015 | 127,923,000 | $ 3,000 | 123,440,000 | $ (360,278,000) | 364,758,000 |
Ending balance, shares at Mar. 31, 2015 | 53,243,157 | (32,992,488) | |||
Stock issued under employee stock purchase plan | 371,000 | 371,000 | |||
Stock issued under employee stock purchase plan, shares | 10,975 | ||||
Stock issued under stock option plan, net of shares repurchased | 3,749,000 | 3,749,000 | |||
Stock issued under stock option plan, net of shares repurchased, shares | 194,540 | ||||
Stock-based compensation expense | 2,192,000 | 2,192,000 | |||
Income tax benefits from stock option exercises | 713,000 | 713,000 | |||
Purchase of treasury stock | $ (31,525,000) | $ (31,525,000) | |||
Purchase of treasury stock, shares | (893,771) | (893,771) | |||
Net income | $ 28,525,000 | 28,525,000 | |||
Ending balance at Mar. 31, 2016 | 131,948,000 | $ 3,000 | 130,465,000 | $ (391,803,000) | 393,283,000 |
Ending balance, shares at Mar. 31, 2016 | 53,448,672 | (33,886,259) | |||
Stock issued under employee stock purchase plan | $ 419,000 | 419,000 | |||
Stock issued under employee stock purchase plan, shares | 2,460,867 | 10,596 | |||
Stock issued under stock option plan, net of shares repurchased | $ 2,367,000 | 2,367,000 | |||
Stock issued under stock option plan, net of shares repurchased, shares | 109,799 | ||||
Stock-based compensation expense | 2,432,000 | 2,432,000 | |||
Purchase of treasury stock | $ (27,999,000) | $ (27,999,000) | |||
Purchase of treasury stock, shares | (745,575) | (745,575) | |||
Net income | $ 29,479,000 | 29,479,000 | |||
Ending balance at Mar. 31, 2017 | $ 138,646,000 | $ 3,000 | $ 135,683,000 | $ (419,802,000) | $ 422,762,000 |
Ending balance, shares at Mar. 31, 2017 | 53,569,067 | (34,631,834) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 29,479,000 | $ 28,525,000 | $ 28,590,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 20,948,000 | 19,952,000 | 17,995,000 |
Loss on write down or disposal of property or capitalized software | 733,000 | 286,000 | 285,000 |
Stock-based compensation expense | 2,432,000 | 2,192,000 | 2,209,000 |
Provision for doubtful accounts | 2,335,000 | 1,357,000 | 1,730,000 |
Provision for deferred income taxes | (1,220,000) | (1,656,000) | 304,000 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (5,429,000) | (3,567,000) | (2,038,000) |
Customer deposits | (6,822,000) | (8,331,000) | (1,176,000) |
Prepaid expenses and taxes | (11,000) | 6,742,000 | (5,813,000) |
Other assets | (29,000) | (516,000) | (18,000) |
Accounts and taxes payable | 3,350,000 | (2,537,000) | (2,695,000) |
Accrued liabilities | 6,286,000 | 8,864,000 | 4,943,000 |
Net cash provided by operating activities | 52,052,000 | 51,311,000 | 44,316,000 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Investment in private equity | 34,000 | (600,000) | (1,400,000) |
Purchases of property and equipment | (31,041,000) | (16,756,000) | (22,868,000) |
Net cash used in investing activities | (31,007,000) | (17,356,000) | (24,268,000) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Exercise of employee stock purchase options | 419,000 | 371,000 | 400,000 |
Exercise of common stock options | 2,367,000 | 3,749,000 | 1,603,000 |
Tax benefits from stock options | 0 | 713,000 | 397,000 |
Purchase of treasury stock | (27,999,000) | (31,525,000) | (31,798,000) |
Net cash used in financing activities | (25,213,000) | (26,692,000) | (29,398,000) |
Net increase (decrease) in cash and cash equivalents | (4,168,000) | 7,263,000 | (9,350,000) |
Cash and cash equivalents at beginning of year | 32,779,000 | 25,516,000 | 34,866,000 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 28,611,000 | 32,779,000 | 25,516,000 |
Supplemental cash flow information | |||
Income taxes paid | 18,321,000 | 13,589,000 | 19,528,000 |
Accrual of software license purchase | 3,492,000 | 3,249,000 | 0 |
Tenant improvement allowance | $ 1,224,000 | $ 0 | $ 3,100,000 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Mar. 31, 2017 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Schedule II — Valuation and Qualifying Accounts Balance at Beginning of Year Additions Charged to Cost and Expenses Deductions Balance at End of Year Allowance for doubtful accounts: Fiscal Year Ended March 31, 2017: $ 1,821,000 $ 2,335,000 $ (1,155,000 ) $ 3,001,000 Fiscal Year Ended March 31, 2016: 1,645,000 1,357,000 (1,181,000 ) 1,821,000 Fiscal Year Ended March 31, 2015: 1,745,000 1,730,000 (1,830,000 ) 1,645,000 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note A — Summary of Significant Accounting Policies Organization: CorVel Corporation (“CorVel” or “the Company”), incorporated in Delaware in 1987, provides services and programs nationwide that are designed to enable insurance carriers, third party administrators and employers with self-insured programs to administer, manage and control the cost of workers’ compensation and other healthcare benefits. The Company provides case management, claims administration, and medical bill review services to these payors. The Company evaluated all subsequent events and transactions through the date of this filing. During the period subsequent to March 31, 2017, through the date of filing this annual report, the Company repurchased 204,255 shares of common stock for $9.1 million or an average of $44.44 per share. These shares were repurchased under the Company’s ongoing stock repurchase program described in Note G. Basis of Presentation: The consolidated financial statements include the accounts of CorVel and its wholly-owned subsidiaries. Significant intercompany accounts and transactions have been eliminated in consolidation. Certain prior year amounts have been reclassified to conform to fiscal 2017 presentation. These changes had no impact on previously-reported results of operations or shareholders’ equity. 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 consolidated financial statements. Actual results could differ from those estimates. Significant estimates include the values assigned to intangible assets, capitalized software development, the allowance for doubtful accounts, accrual for income taxes, share-based payments related to performance-based awards, loss contingencies, estimated claims for claims administration revenue recognition, estimates used in stock options valuations, and accrual for self-insurance reserves. Cash and Cash Equivalents: Cash and cash equivalents consist of short-term, interest-bearing highly-liquid investment-grade securities with maturities of 90 days or less when purchased. The carrying amounts of the Company’s financial instruments approximate their fair values at March 31, 2016 and 2017 due to the short-term nature of those instruments. Customer deposits represent cash that is expected to be returned or applied towards payment within one year through the Company’s provider reimbursement services. Fair Value of Financial Instruments: The Company applies ASC 820, “Fair Value Measurements and Disclosures,” which defines fair value, establishes a framework for measuring fair value, and provides for 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 amount of the Company’s financial instruments (i.e. cash, accounts receivable, accounts payable, etc.) are all Level 1, and the Company approximates their fair values at March 31, 2016 and 2017 due to the short-term nature of those instruments. The Company has no Level 2 or Level 3 assets. 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. The Company recorded a reduction to the investment of $284,000 for the year ended March 31, 2017. The investment is recorded in other assets on the accompanying consolidated balance sheets. 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. 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. Management evaluates agreements with customers in accordance with the provision of the revenue recognition topic that addresses multiple-deliverable revenue arrangements. The multiple element arrangements consist of bundled managed care services, which include various units of accounting such as network solutions and patient management services (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. Accounts Receivable: The majority of the Company’s accounts receivable are due from companies in the property and casualty insurance industries, self-insured employers and governmental entities. Credit is extended based on evaluation of a customer’s financial condition and, generally, collateral is not required. Accounts receivable are generally due within 30 days and are stated at 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. The Company writes off accounts receivable against the reserve when they become uncollectible. Accounts receivable includes $12,066,000, and $14,579,000 of unbilled receivables at March 31, 2016 and 2017, respectively. Unbilled receivables represent the revenue for the work performed which has not yet been invoiced to the customer. Unbilled receivables are generally invoiced within the following three months. Concentrations of Credit Risk: Substantially all of the Company’s customers are payors of workers’ compensation benefits and property and casualty insurance, which include insurance companies, third party administrators, self-insured employers and government entities. Receivables are generally due within 30 days. Credit losses relating to customers in the workers’ compensation insurance industry consistently have been within management’s expectations. Virtually all of the Company’s cash is invested at financial institutions in amounts which exceed the FDIC insurance levels. No customer accounted for 10% or more of revenue for either fiscal 2015, 2016 or 2017. No customer accounted for 10% or more of accounts receivable at either March 31, 2016 or 2017. Property and Equipment: Additions to property and equipment are recorded at cost. The Company provides for depreciation on property and equipment using the straight-line method by charges to operations in amounts that allocate the cost of depreciable assets over their estimated lives as follows: Asset Classification Estimated Useful Life Leasehold Improvements Shorter of 5 years or the life of lease Furniture and Equipment 5 to 7 years Computer Hardware 2 to 5 years Computer Software 3 to 5 years The Company accounts for internally-developed software costs in accordance with ASC 350-40, “Internal Use Software”. Capitalized software development costs, intended for internal use, totaled $25,140,000 (net of $69,644,000 in accumulated amortization) and $25,721,000 (net of $78,952,000 in accumulated amortization), as of March 31, 2016 and 2017, respectively. These costs are included in 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. Goodwill and Long-Lived Assets: 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 will be recognized. Based on the Company’s tests and reviews, no impairment of its goodwill, intangible assets or other long-lived assets existed at March 31, 2017. However, future events or changes in current circumstances could affect the recoverability of the carrying value of goodwill and long-lived assets. Should an asset be deemed impaired, an impairment loss would be recognized to the extent the carrying value of the asset exceeded its estimated fair value. Goodwill amounted to $36,814,000 (net of accumulated amortization of $2,069,000) at March 31, 2016 and at March 31, 2017. Cost of Revenues: Cost of services consists primarily of the compensation and fringe benefits of field personnel, including managers, medical bill analysts, field case managers, telephonic case managers, systems support, administrative support, account managers and account executives, and related facility costs including rent, telephone and office supplies. Historically, the costs associated with these additional personnel and facilities have been the most significant factor driving increases in the Company’s cost of services. 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 is dependent upon 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 accrues for income tax issues not yet resolved with federal, state and local tax authorities, when it appears more likely than not that a tax liability has been incurred. Share-Based Compensation: The Company accounts for share-based compensation in accordance with the provisions of ASC Topic 718 “Compensation – Stock Compensation”. Under ASC 718, share-based compensation cost is measured at the grant date, based on the calculated fair value of the award, and is recognized as an expense over the employee’s requisite service period (generally the vesting period of the equity grant). The Company has elected to early adopt ASU No. 2016-09, “Improvements to Employee Share-Based Payment Accounting” as of March 31, 2017. As a result, during the fourth quarter, the Company reclassified the fiscal 2017 excess tax benefit of $0.5 million from additional paid in capital into the income tax provision line. The Company has also reclassified the excess tax benefits from the stock-based compensation from financing activities into operating activities in the statement of cash flows for the year ended March 31, 2017. The Company applied this change in presentation prospectively and prior years have not been adjusted. Accrual for Self-insurance Costs: The Company self-insures for the group medical costs and workers’ compensation costs of its employees. The Company purchases stop loss insurance for large claims. Management believes that the self-insurance reserves are appropriate; however, actual claims costs may differ from the original estimates requiring adjustments to the reserves. The Company determines its estimated self-insurance reserves based upon historical trends along with outstanding claims information provided by its claims paying agents. 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 shares-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 is greater for diluted earnings per share due to the effect of stock options. The difference between the basic shares and the diluted shares for each of the fiscal years ended March 31, 2015, 2016 and 2017 is as follows: Fiscal 2015 Fiscal 2016 Fiscal 2017 Basic weighted shares 20,669,000 19,826,000 19,418,000 Treasury stock impact of stock options 221,000 178,000 152,000 Diluted weighted shares 20,890,000 20,004,000 19,570,000 Recently Issued Accounting Standards On May 28, 2014, the FASB issued ASU 2014-09 regarding ASC Topic 606, “Revenue from Contracts with Customers”. 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 based on the analyses we have completed thus far, we anticipate it will not have a significant impact on our consolidated financial statements. 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”. The standard addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. It requires that most equity investments be measured at fair value, with subsequent changes in fair value recognized in net income. The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. 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. In February 2016, the FASB issued ASU No. 2016-02, “Leases”, which sets out the principles for the recognition, measurement, presentation, and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases. This classification will determine whether the lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for using an approach that is similar to the existing guidance for operating leases. The standard is effective April 1, 2019, with early adoption permitted. The standard is to be applied using a modified retrospective transition method. We are currently evaluating the impact of adoption on our consolidated financial position, results of operations, and cash flows. In March 2016, the FASB issued ASU No. 2016-09, “Improvements to Employee Share-Based Payment Accounting”, which simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification on the statement of cash flows. For public companies, the new guidance became effective for annual reporting periods. And interim periods within those periods, beginning after December 15, 2016. We have elected to early adopt this standard as of March 31, 2017. As a result, during the fourth quarter, we reclassified the fiscal 2017 excess tax benefit of $0.5 million from additional paid in capital into the income tax provision line. We have also reclassified the excess tax benefits from the stock-based compensation from financing activities into operating activities in the statement of cash flows for the year ended March 31, 2017. We applied this change in presentation prospectively and prior years have not been adjusted. 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 statement 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. |
Stock Options and Stock-Based C
Stock Options and Stock-Based Compensation | 12 Months Ended |
Mar. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Options and Stock-Based Compensation | Note B — Stock Options and Stock-Based Compensation Under the Company’s Restated Omnibus Incentive Plan (formerly the Restated 1988 Executive Stock Option Plan) (“the Plan”) as in effect at March 31, 2017, 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, with 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 fiscal 2016 and 2017 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. Upon adoption of ASU No. 2016-09, the Company will account for forfeitures as they occur, rather than estimate expected forfeitures. As a result, during the fourth quarter, we reclassified the fiscal 2017 excess tax benefit of $0.5 million from additional paid in capital into the income tax provision line. 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. The fair value of each grant is estimated on the date of grant using the Black-Scholes option-pricing model. The following weighted average assumptions were used for the fiscal years ended March 31, 2015, 2016 and 2017: Fiscal 2015 Fiscal 2016 Fiscal 2017 Expected volatility 45 % 43 % 41 % Risk free interest rate 1.3% 1.25% to 1.65% 1.03% to 1.92% Dividend yield 0.0 % 0.0 % 0.0 % Weighted average option life 4.4 to 4.5 years 4.4 to 4.5 years 4.4 to 4.5 years For the fiscal years ended March 31, 2015, 2016 and 2017, the Company recorded share-based compensation expense of $2,209,000, $2,192,000, and $2,432,000, respectively. The table below shows the amounts recognized in the financial statements for the fiscal years ended March 31, 2015, 2016 and 2017. Fiscal 2015 Fiscal 2016 Fiscal 2017 Cost of revenue $ 1,021,000 $ 1,288,000 $ 1,507,000 General and administrative 1,188,000 904,000 925,000 Total cost of stock-based compensation included in income before income tax 2,209,000 2,192,000 2,432,000 Amount of income tax benefit recognized 862,000 852,000 946,000 Amount charged to net income $ 1,347,000 $ 1,340,000 $ 1,486,000 Effect on basic earnings per share $ 0.07 $ 0.07 $ 0.08 Effect on diluted earnings per share $ 0.06 $ 0.07 $ 0.08 All options granted in the fiscal years ended March 31, 2015, 2016 and 2017 were granted at fair value and are non-statutory stock options. The following table summarizes information for all stock options for the fiscal years March 31, 2015, 2016 and 2017: Fiscal 2015 Fiscal 2016 Fiscal 2017 Options outstanding – beginning of the year 1,115,984 1,163,179 1,115,465 Options granted 241,625 276,275 267,950 Options exercised (111,758 ) (200,753 ) (115,592 ) Options cancelled/forfeited (82,672 ) (123,236 ) (123,895 ) Options outstanding – end of year 1,163,179 1,115,465 1,143,928 During the year, weighted average exercise price of: Options granted $ 37.64 $ 35.51 $ 37.13 Options exercised $ 17.27 $ 19.75 $ 22.74 Options cancelled/forfeited $ 32.31 $ 33.44 $ 36.90 At the end of the year: Price range of outstanding options $7.78-$45.55 $9.05-$45.55 $12.71-$45.73 Weighted average exercise price per share $ 27.65 $ 30.36 $ 32.02 Options available for future grants 800,342 650,345 505,493 Exercisable options 559,168 529,691 585,424 The following table summarizes the status of stock options outstanding and exercisable at March 31, 2017: Range of Exercise Prices 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 $23.10 324,027 2.06 $ 20.39 317,225 $ 20.33 $23.11 to $34.77 320,585 3.67 31.47 120,078 29.62 $34.78 to $40.57 293,728 3.39 36.64 75,579 38.39 $40.58 to $45.73 205,588 3.58 44.61 72,542 45.04 Total 1,143,928 3.12 $ 32.02 585,424 $ 27.63 The following table summarizes the status of all outstanding options at March 31, 2017, and changes during the fiscal year then ended: Number of Options Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value as of March 31, 2017 Options outstanding, March 31, 2016 1,115,465 $ 30.36 Granted 267,950 37.13 Exercised (115,592 ) 22.74 Cancelled – forfeited (119,711 ) 36.89 Cancelled – expired (4,184 ) 36.97 Options outstanding, March 31, 2017 1,143,928 $ 32.02 3.12 $ 13,380,609 Options vested and expected to vest 1,007,484 $ 31.58 2.98 $ 12,235,839 Ending exercisable 585,424 $ 27.63 2.23 $ 9,405,917 The weighted average fair value of options granted during fiscal 2015, 2016 and 2017 was $15.00, $13.68, and $13.38, respectively. The total intrinsic value of options exercised during fiscal years 2015, 2016 and 2017 was $2,455,000, $3,581,000, and $2,620,000 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. During the fiscal years ended March 31, 2015, 2016 and 2017, the Company recognized stock compensation expense for performance-based options in the amount of $211,000, $28,000, and $49,000, respectively. The Company received $1,603,000, $3,749,000, and $2,367,000 of cash receipts from the exercise of stock options during fiscal 2015, 2016 and 2017, respectively. As of March 31, 2017, $4,048,000 of total unrecognized compensation costs related to stock options is expected to be recognized over a weighted average period of 3 years. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Mar. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | Note C — Property and Equipment Property and equipment, net consisted of the following at March 31, 2016 and 2017: 2016 2017 Computer software $ 114,883,000 $ 130,641,000 Office equipment and computers 60,061,000 65,246,000 Leasehold improvements 9,060,000 10,893,000 184,004,000 206,780,000 Less: accumulated depreciation and amortization (130,736,000 ) (143,738,000 ) $ 53,268,000 $ 63,042,000 Depreciation expense totaled $17,995,000, $19,502,000 and $20,534,000 for the fiscal years ended March 31, 2015, 2016 and 2017, respectively. |
Accounts and Income Taxes Payab
Accounts and Income Taxes Payable and Accrued Liabilities | 12 Months Ended |
Mar. 31, 2017 | |
Payables And Accruals [Abstract] | |
Accounts and Income Taxes Payable and Accrued Liabilities | Note D — Accounts and Income Taxes Payable and Accrued Liabilities Accounts and income taxes payable consisted of the following at March 31, 2016 and 2017: 2016 2017 Accounts payable $ 11,191,000 $ 13,869,000 Income taxes payable and uncertain tax positions 2,042,000 2,714,000 $ 13,233,000 $ 16,583,000 Accrued liabilities consisted of the following at March 31, 2016 and 2017: 2016 2017 Payroll, payroll taxes and employee benefits $ 18,003,000 $ 14,465,000 Customer deposits 25,649,000 32,471,000 Accrued professional service fees 4,692,000 4,551,000 Self-insurance accruals 3,095,000 2,835,000 Deferred revenue 7,821,000 10,096,000 Accrued rent 4,907,000 5,774,000 Other 3,015,000 3,276,000 $ 67,182,000 $ 73,468,000 |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note E — Income Taxes The income tax provision consisted of the following for the fiscal years ended March 31, 2015, 2016 and 2017: 2015 2016 2017 Current — Federal $ 16,534,000 $ 16,600,000 $ 16,456,000 Current — State 136,000 2,591,000 2,834,000 Subtotal 16,670,000 19,191,000 19,290,000 Deferred — Federal 312,000 (1,679,000 ) (1,508,000 ) Deferred — State (8,000 ) 23,000 288,000 Subtotal 304,000 (1,656,000 ) (1,220,000 ) $ 16,974,000 $ 17,535,000 $ 18,070,000 The following is a reconciliation of the income tax provision from the statutory federal income tax rate to the effective rate for the fiscal years ended March 31, 2015, 2016 and 2017: 2015 2016 2017 Income taxes at federal statutory rate (35%) $ 15,947,000 $ 16,121,000 $ 16,643,000 State income taxes, net of federal benefit 1,535,000 1,704,000 1,973,000 Uncertain tax positions 1,346,000 78,000 88,000 Permanent items and tax credits 94,000 (100,000 ) (705,000 ) Adjustments to returns as filed (1,978,000 ) (232,000 ) 80,000 Other 30,000 (36,000 ) (9,000 ) $ 16,974,000 $ 17,535,000 $ 18,070,000 Deferred tax assets and liabilities at March 31, 2016 and 2017 are: 2016 2017 Deferred income tax assets: Accrued liabilities not currently deductible $ 9,656,000 $ 9,409,000 Allowance for doubtful accounts 696,000 1,153,000 Stock-based compensation 1,245,000 1,755,000 Accrued rent 1,875,000 2,219,000 Other 762,000 740,000 Deferred assets 14,234,000 15,276,000 Deferred income tax liabilities: Excess of book over tax basis of fixed assets (16,151,000 ) (15,666,000 ) Intangible assets (5,555,000 ) (5,960,000 ) Other (434,000 ) (336,000 ) Deferred liabilities (22,140,000 ) (21,962,000 ) Net deferred tax liability $ (7,906,000 ) $ (6,686,000 ) Prepaid expenses and taxes include $301,000 at March 31, 2016 and accounts and taxes payable include $584,000 at March 31, 2017, for income taxes due in the first quarter of the following fiscal year. A reconciliation of the financial statement recognition and measurement of uncertain tax positions during the current fiscal year is as follows: Balance as of March 31, 2016 $ 1,830,000 Additions based on tax positions related to the current year 355,000 Additions for tax positions of prior years — Reductions for tax positions related to the current year (177,000 ) Reductions for tax positions of prior years (124,000 ) Balance as of March 31, 2017 $ 1,884,000 The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. During the years ended March 31, 2015, 2016 and 2017, the Company recognized approximately $57,000, $72,000 and $35,000 in interest and penalties, respectively. As of March 31, 2015, 2016 and 2017, accrued interest and penalties related to uncertain tax positions were $140,000, $212,000 and $247,000, respectively. The tax fiscal years from 2013-2016 remain opened to examination by the major taxing jurisdictions to which the Company is subject. |
Employee Stock Purchase Plan
Employee Stock Purchase Plan | 12 Months Ended |
Mar. 31, 2017 | |
Text Block [Abstract] | |
Employee Stock Purchase Plan | Note F — Employee Stock Purchase Plan The Company maintains an Employee Stock Purchase Plan (as amended, “ESPP”) which allows employees of the Company and its subsidiaries to purchase shares of common stock on the last day of two six-month purchase periods (i.e. March 31 and September 30) at a purchase price which is 95% of the closing sale price of shares as quoted on NASDAQ on the last day of such purchase period. Employees are allowed to contribute up to 20% of their gross pay. A maximum of 2,850,000 shares has been authorized for issuance under the ESPP. As of March 31, 2017, 2,460,867 shares had been issued pursuant to the ESPP. Summarized ESPP information is as follows: 2015 2016 2017 Employee contributions $ 400,000 $ 371,000 $ 419,000 Shares acquired 12,299 10,975 10,596 Average purchase price $ 32.52 $ 33.81 $ 38.80 |
Treasury Stock
Treasury Stock | 12 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Treasury Stock | Note G — Treasury Stock During each of the fiscal years ended March 31, 2015, 2016 and 2017, the Company continued to repurchase shares of its common stock under a program originally approved by the Company’s Board of Directors in 1996. Including a 1,000,000 share expansion authorized in February 2017, the total number of shares of common stock authorized to be repurchased over the life of the program is 36,000,000 shares of common stock. Purchases may be made from time to time depending on market conditions and other relevant factors. The share repurchases for the fiscal years ended March 31, 2015, 2016 and 2017, and cumulatively since inception of the authorization, are as follows: 2015 2016 2017 Cumulative Shares repurchased 845,014 893,771 745,575 34,631,834 Cost $ 31,798,000 $ 31,525,000 $ 27,999,000 $ 419,802,000 Average price $ 37.63 $ 35.27 $ 37.56 $ 12.12 During the period subsequent to March 31, 2017, through the date of filing this annual report, the Company repurchased 204,255 shares for $9.1 million, or an average of $44.44 per share. The repurchased shares were recorded as treasury stock, at cost, and are available for general corporate purposes. The repurchases were primarily financed from cash generated from operations and from cash proceeds from the exercise of stock options. |
Commitments
Commitments | 12 Months Ended |
Mar. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments | Note H — Commitments The Company leases office facilities under non-cancelable operating leases. Some of these leases contain escalation clauses. Future minimum rental commitments under operating leases at March 31, 2017 are $13,677,000 in fiscal 2018, $10,809,000 in fiscal 2019, $8,496,000 in fiscal 2020, $7,301,000 in fiscal 2021, $5,602,000 in fiscal 2022, $5,244,000 thereafter, and $51,129,000 in the aggregate. Total rental expense of $15,297,000, $14,405,000, and $13,952,000 was charged to operations for the fiscal years ended March 31, 2015, 2016 and 2017, respectively. |
Contingencies and Legal Proceed
Contingencies and Legal Proceedings | 12 Months Ended |
Mar. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingencies and Legal Proceedings | Note I — 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, in the aggregate, would be material to the consolidated financial position or results of operations of the Company. |
Retirement Savings Plan
Retirement Savings Plan | 12 Months Ended |
Mar. 31, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement Savings Plan | Note J — Retirement Savings Plan The Company maintains a retirement savings plan for its employees, which is a qualified plan under Section 401(k) of the Internal Revenue Code. Full-time employees that meet certain requirements are eligible to participate in the plan. Employer contributions are made annually, primarily at the discretion of the Company’s Board of Directors. Contributions of $443,000, $392,000 and $464,000 were charged to operations for the fiscal years ended March 31, 2015, 2016 and 2017, respectively. |
Shareholder Rights Plan
Shareholder Rights Plan | 12 Months Ended |
Mar. 31, 2017 | |
Text Block [Abstract] | |
Shareholder Rights Plan | Note K — Shareholder Rights Plan During fiscal 1997, the Company’s Board of Directors approved the adoption of its 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 K, the “right” or the “rights”), only in the event of certain takeover-related events. In April 2002, 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, 2012, set the exercise price of each right at $118, and enable Fidelity Management & Research Company and its affiliates to purchase up to 18% of the shares of common stock of the Company without triggering the rights, with the limitations under the Shareholder Rights Plan remaining in effect for all other stockholders of the Company. 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, remove the ability of Fidelity Management & Research Company and its affiliates to purchase up to 18% of the shares of common stock of the Company without the stockholder rights, substitute Computershare Trust Company, N.A. as the rights agent and effect certain technical changes to the Shareholder Rights Plan. 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 would 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. |
Line of Credit
Line of Credit | 12 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Line of Credit | Note L — Line of Credit In September 2016, 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 a current assets to liabilities ratio of at least 1.25:1, debt to tangible net worth ratio not greater than 1.25:1 and to have positive net income. There were no outstanding revolving loans as of March 31, 2017, 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 credit agreement expires in September 2017. |
Quarterly Results (Unaudited)
Quarterly Results (Unaudited) | 12 Months Ended |
Mar. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results (Unaudited) | Note M — Quarterly Results (Unaudited) The following is a summary of unaudited quarterly results of operations for each of the quarters in the fiscal years ended March 31, 2016 and 2017: Revenues Gross Profit Net Income Net Income per Basic Common Share Net Income per Diluted Common Share Fiscal Year Ended March 31, 2016: First Quarter $ 126,939,000 $ 26,183,000 $ 6,900,000 $ 0.34 $ 0.34 Second Quarter 124,460,000 26,684,000 8,267,000 0.42 0.41 Third Quarter 123,891,000 25,232,000 6,691,000 0.34 0.34 Fourth Quarter 128,294,000 26,445,000 6,667,000 0.34 0.34 Fiscal Year Ended March 31, 2017: First Quarter $ 128,459,000 $ 25,582,000 $ 7,491,000 $ 0.38 $ 0.38 Second Quarter 128,219,000 25,912,000 6,952,000 0.36 0.35 Third Quarter 128,403,000 25,577,000 7,049,000 0.36 0.36 Fourth Quarter 133,605,000 27,721,000 7,987,000 0.42 0.42 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note N — Segment Reporting The Company derives the majority of its revenues from providing patient management and network solutions services to payors of workers’ compensation benefits, automobile insurance claims and group health insurance benefits. Patient management services include claims administration, utilization review, medical case management, and vocational rehabilitation. Network solutions services include fee schedule auditing, hospital bill auditing, coordination of independent medical examinations, diagnostic imaging review services and preferred provider referral services. The percentages of revenues attributable to patient management and network solutions services for the fiscal years ended March 31, 2015, 2016 and 2017 are listed below. 2015 2016 2017 Patient management services 54.5 % 55.1 % 55.6 % Network solutions services 45.5 % 44.9 % 44.4 % 100.0 % 100.0 % 100.0 % The Company’s management is structured geographically with regional vice-presidents who report to the Chief Executive Officer of the Company during fiscal 2015, 2016 and 2017. Each of these regional vice-presidents is responsible for all services provided by the Company in his or her particular region and responsible for the operating results of the Company in multiple states. These regional vice-presidents have area and district managers who are also responsible for all services provided by the Company in their given area and district. Under FASB ASC 280-10, two or more operating segments may be aggregated into a single operating segment for financial reporting purposes if aggregation is consistent with the objective and basic principles, if the segments have similar economic characteristics, and if the segments are similar in each of the following areas: (i) the nature of products and services, (ii) the nature of the production processes, (iii) the type or class of customer for their products and services, and (iv) the methods used to distribute their products or provide their services. The Company believes each of the Company’s regions meet these criteria as they provide similar managed care services to similar customers using similar methods of productions and similar methods to distribute their services. All of the Company’s regions perform both patient management and network solutions services. Because the Company believes it meets each of the criteria set forth above and each of the Company’s regions has similar economic characteristics, the Company aggregates its results of operations in one reportable operating segment. |
Other Intangible Assets
Other Intangible Assets | 12 Months Ended |
Mar. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets | Note O — Other Intangible Assets Other intangible assets consisted of the following at March 31, 2016: Item Life Cost Fiscal 2016 Amortization Expense Accumulated Amortization at March 31, 2016 Cost, Net of Accumulated Amortization at March 31, 2016 Covenant 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 Third Party Administrator 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 March 31, 2017: Item Life Cost Fiscal 2017 Amortization Expense Accumulated Amortization at March 31, 2017 Cost, Net of Accumulated Amortization at March 31, 2017 Covenant Not to Compete 5 years $ 775,000 $ — $ 775,000 $ — Customer Relationships 18-20 years 7,922,000 423,000 4,144,000 3,778,000 Third Party Administrator Licenses 15 years 204,000 14,000 131,000 73,000 Total $ 8,901,000 $ 437,000 $ 5,050,000 $ 3,851,000 Amortization expense is expected to be $437,000 in fiscal 2018, $437,000 in fiscal 2019, $437,000 in fiscal 2020, $437,000 in fiscal 2021, $436,000 in fiscal 2022, and $1,667,000 thereafter. |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Organization | Organization: CorVel Corporation (“CorVel” or “the Company”), incorporated in Delaware in 1987, provides services and programs nationwide that are designed to enable insurance carriers, third party administrators and employers with self-insured programs to administer, manage and control the cost of workers’ compensation and other healthcare benefits. The Company provides case management, claims administration, and medical bill review services to these payors. The Company evaluated all subsequent events and transactions through the date of this filing. During the period subsequent to March 31, 2017, through the date of filing this annual report, the Company repurchased 204,255 shares of common stock for $9.1 million or an average of $44.44 per share. These shares were repurchased under the Company’s ongoing stock repurchase program described in Note G. |
Basis of Presentation | Basis of Presentation: The consolidated financial statements include the accounts of CorVel and its wholly-owned subsidiaries. Significant intercompany accounts and transactions have been eliminated in consolidation. Certain prior year amounts have been reclassified to conform to fiscal 2017 presentation. These changes had no impact on previously-reported results of operations or shareholders’ equity. |
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 consolidated financial statements. Actual results could differ from those estimates. Significant estimates include the values assigned to intangible assets, capitalized software development, the allowance for doubtful accounts, accrual for income taxes, share-based payments related to performance-based awards, loss contingencies, estimated claims for claims administration revenue recognition, estimates used in stock options valuations, and accrual for self-insurance reserves. |
Cash and Cash Equivalents | Cash and Cash Equivalents: Cash and cash equivalents consist of short-term, interest-bearing highly-liquid investment-grade securities with maturities of 90 days or less when purchased. The carrying amounts of the Company’s financial instruments approximate their fair values at March 31, 2016 and 2017 due to the short-term nature of those instruments. Customer deposits represent cash that is expected to be returned or applied towards payment within one year through the Company’s provider reimbursement services. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments: The Company applies ASC 820, “Fair Value Measurements and Disclosures,” which defines fair value, establishes a framework for measuring fair value, and provides for 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 amount of the Company’s financial instruments (i.e. cash, accounts receivable, accounts payable, etc.) are all Level 1, and the Company approximates their fair values at March 31, 2016 and 2017 due to the short-term nature of those instruments. The Company has no Level 2 or Level 3 assets. |
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. The Company recorded a reduction to the investment of $284,000 for the year ended March 31, 2017. The investment is recorded in other assets on the accompanying consolidated balance sheets. 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. |
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 g uidance included in ASC 605-25. Management evaluates agreements with customers in accordance with the provision of the revenue recognition topic that addresses multiple-deliverable revenue arrangements. The multiple element arrangements consist of bundled managed care services, which include various units of accounting such as network solutions and patient management services (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. |
Accounts Receivable | Accounts Receivable: The majority of the Company’s accounts receivable are due from companies in the property and casualty insurance industries, self-insured employers and governmental entities. Credit is extended based on evaluation of a customer’s financial condition and, generally, collateral is not required. Accounts receivable are generally due within 30 days and are stated at 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. The Company writes off accounts receivable against the reserve when they become uncollectible. Accounts receivable includes $12,066,000, and $14,579,000 of unbilled receivables at March 31, 2016 and 2017, respectively. Unbilled receivables represent the revenue for the work performed which has not yet been invoiced to the customer. Unbilled receivables are generally invoiced within the following three months. |
Concentrations of Credit Risk | Concentrations of Credit Risk: Substantially all of the Company’s customers are payors of workers’ compensation benefits and property and casualty insurance, which include insurance companies, third party administrators, self-insured employers and government entities. Receivables are generally due within 30 days. Credit losses relating to customers in the workers’ compensation insurance industry consistently have been within management’s expectations. Virtually all of the Company’s cash is invested at financial institutions in amounts which exceed the FDIC insurance levels. No customer accounted for 10% or more of revenue for either fiscal 2015, 2016 or 2017. No customer accounted for 10% or more of accounts receivable at either March 31, 2016 or 2017. |
Property and Equipment | Property and Equipment: Additions to property and equipment are recorded at cost. The Company provides for depreciation on property and equipment using the straight-line method by charges to operations in amounts that allocate the cost of depreciable assets over their estimated lives as follows: Asset Classification Estimated Useful Life Leasehold Improvements Shorter of 5 years or the life of lease Furniture and Equipment 5 to 7 years Computer Hardware 2 to 5 years Computer Software 3 to 5 years The Company accounts for internally-developed software costs in accordance with ASC 350-40, “Internal Use Software”. Capitalized software development costs, intended for internal use, totaled $25,140,000 (net of $69,644,000 in accumulated amortization) and $25,721,000 (net of $78,952,000 in accumulated amortization), as of March 31, 2016 and 2017, respectively. These costs are included in 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. |
Goodwill and Long-Lived Assets | Goodwill and Long-Lived Assets: 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 will be recognized. Based on the Company’s tests and reviews, no impairment of its goodwill, intangible assets or other long-lived assets existed at March 31, 2017. However, future events or changes in current circumstances could affect the recoverability of the carrying value of goodwill and long-lived assets. Should an asset be deemed impaired, an impairment loss would be recognized to the extent the carrying value of the asset exceeded its estimated fair value. Goodwill amounted to $36,814,000 (net of accumulated amortization of $2,069,000) at March 31, 2016 and at March 31, 2017. |
Cost of Revenues | Cost of Revenues: Cost of services consists primarily of the compensation and fringe benefits of field personnel, including managers, medical bill analysts, field case managers, telephonic case managers, systems support, administrative support, account managers and account executives, and related facility costs including rent, telephone and office supplies. Historically, the costs associated with these additional personnel and facilities have been the most significant factor driving increases in the Company’s cost of services. |
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 is dependent upon 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 accrues for income tax issues not yet resolved with federal, state and local tax authorities, when it appears more likely than not that a tax liability has been incurred. |
Share-Based Compensation | Share-Based Compensation: The Company accounts for share-based compensation in accordance with the provisions of ASC Topic 718 “Compensation – Stock Compensation”. Under ASC 718, share-based compensation cost is measured at the grant date, based on the calculated fair value of the award, and is recognized as an expense over the employee’s requisite service period (generally the vesting period of the equity grant). The Company has elected to early adopt ASU No. 2016-09, “Improvements to Employee Share-Based Payment Accounting” as of March 31, 2017. As a result, during the fourth quarter, the Company reclassified the fiscal 2017 excess tax benefit of $0.5 million from additional paid in capital into the income tax provision line. The Company has also reclassified the excess tax benefits from the stock-based compensation from financing activities into operating activities in the statement of cash flows for the year ended March 31, 2017. The Company applied this change in presentation prospectively and prior years have not been adjusted. |
Accrual for Self-insurance Costs | Accrual for Self-insurance Costs: The Company self-insures for the group medical costs and workers’ compensation costs of its employees. The Company purchases stop loss insurance for large claims. Management believes that the self-insurance reserves are appropriate; however, actual claims costs may differ from the original estimates requiring adjustments to the reserves. The Company determines its estimated self-insurance reserves based upon historical trends along with outstanding claims information provided by its claims paying agents. |
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 shares-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 is greater for diluted earnings per share due to the effect of stock options. The difference between the basic shares and the diluted shares for each of the fiscal years ended March 31, 2015, 2016 and 2017 is as follows: Fiscal 2015 Fiscal 2016 Fiscal 2017 Basic weighted shares 20,669,000 19,826,000 19,418,000 Treasury stock impact of stock options 221,000 178,000 152,000 Diluted weighted shares 20,890,000 20,004,000 19,570,000 |
Recently Issued Accounting Standards | Recently Issued Accounting Standards On May 28, 2014, the FASB issued ASU 2014-09 regarding ASC Topic 606, “Revenue from Contracts with Customers”. 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 based on the analyses we have completed thus far, we anticipate it will not have a significant impact on our consolidated financial statements. 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”. The standard addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. It requires that most equity investments be measured at fair value, with subsequent changes in fair value recognized in net income. The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. 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. In February 2016, the FASB issued ASU No. 2016-02, “Leases”, which sets out the principles for the recognition, measurement, presentation, and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases. This classification will determine whether the lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for using an approach that is similar to the existing guidance for operating leases. The standard is effective April 1, 2019, with early adoption permitted. The standard is to be applied using a modified retrospective transition method. We are currently evaluating the impact of adoption on our consolidated financial position, results of operations, and cash flows. In March 2016, the FASB issued ASU No. 2016-09, “Improvements to Employee Share-Based Payment Accounting”, which simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification on the statement of cash flows. For public companies, the new guidance became effective for annual reporting periods. And interim periods within those periods, beginning after December 15, 2016. We have elected to early adopt this standard as of March 31, 2017. As a result, during the fourth quarter, we reclassified the fiscal 2017 excess tax benefit of $0.5 million from additional paid in capital into the income tax provision line. We have also reclassified the excess tax benefits from the stock-based compensation from financing activities into operating activities in the statement of cash flows for the year ended March 31, 2017. We applied this change in presentation prospectively and prior years have not been adjusted. 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 statement 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. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Economic Useful Lives of Property and Equipment | The Company provides for depreciation on property and equipment using the straight-line method by charges to operations in amounts that allocate the cost of depreciable assets over their estimated lives as follows: Asset Classification Estimated Useful Life Leasehold Improvements Shorter of 5 years or the life of lease Furniture and Equipment 5 to 7 years Computer Hardware 2 to 5 years Computer Software 3 to 5 years |
Schedule of Earnings Per Share Basic and Diluted | The difference between the basic shares and the diluted shares for each of the fiscal years ended March 31, 2015, 2016 and 2017 is as follows: Fiscal 2015 Fiscal 2016 Fiscal 2017 Basic weighted shares 20,669,000 19,826,000 19,418,000 Treasury stock impact of stock options 221,000 178,000 152,000 Diluted weighted shares 20,890,000 20,004,000 19,570,000 |
Stock Options and Stock-Based25
Stock Options and Stock-Based Compensation (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Weighted Average Assumptions | The following weighted average assumptions were used for the fiscal years ended March 31, 2015, 2016 and 2017: Fiscal 2015 Fiscal 2016 Fiscal 2017 Expected volatility 45 % 43 % 41 % Risk free interest rate 1.3% 1.25% to 1.65% 1.03% to 1.92% Dividend yield 0.0 % 0.0 % 0.0 % Weighted average option life 4.4 to 4.5 years 4.4 to 4.5 years 4.4 to 4.5 years |
Stock Compensation Expense for Time Based Options and Performance Based Options | The table below shows the amounts recognized in the financial statements for the fiscal years ended March 31, 2015, 2016 and 2017. Fiscal 2015 Fiscal 2016 Fiscal 2017 Cost of revenue $ 1,021,000 $ 1,288,000 $ 1,507,000 General and administrative 1,188,000 904,000 925,000 Total cost of stock-based compensation included in income before income tax 2,209,000 2,192,000 2,432,000 Amount of income tax benefit recognized 862,000 852,000 946,000 Amount charged to net income $ 1,347,000 $ 1,340,000 $ 1,486,000 Effect on basic earnings per share $ 0.07 $ 0.07 $ 0.08 Effect on diluted earnings per share $ 0.06 $ 0.07 $ 0.08 |
Stock Options | The following table summarizes information for all stock options for the fiscal years March 31, 2015, 2016 and 2017: Fiscal 2015 Fiscal 2016 Fiscal 2017 Options outstanding – beginning of the year 1,115,984 1,163,179 1,115,465 Options granted 241,625 276,275 267,950 Options exercised (111,758 ) (200,753 ) (115,592 ) Options cancelled/forfeited (82,672 ) (123,236 ) (123,895 ) Options outstanding – end of year 1,163,179 1,115,465 1,143,928 During the year, weighted average exercise price of: Options granted $ 37.64 $ 35.51 $ 37.13 Options exercised $ 17.27 $ 19.75 $ 22.74 Options cancelled/forfeited $ 32.31 $ 33.44 $ 36.90 At the end of the year: Price range of outstanding options $7.78-$45.55 $9.05-$45.55 $12.71-$45.73 Weighted average exercise price per share $ 27.65 $ 30.36 $ 32.02 Options available for future grants 800,342 650,345 505,493 Exercisable options 559,168 529,691 585,424 |
Stock Options Outstanding and Exercisable | The following table summarizes the status of stock options outstanding and exercisable at March 31, 2017: Range of Exercise Prices 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 $23.10 324,027 2.06 $ 20.39 317,225 $ 20.33 $23.11 to $34.77 320,585 3.67 31.47 120,078 29.62 $34.78 to $40.57 293,728 3.39 36.64 75,579 38.39 $40.58 to $45.73 205,588 3.58 44.61 72,542 45.04 Total 1,143,928 3.12 $ 32.02 585,424 $ 27.63 |
Outstanding Options | The following table summarizes the status of all outstanding options at March 31, 2017, and changes during the fiscal year then ended: Number of Options Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value as of March 31, 2017 Options outstanding, March 31, 2016 1,115,465 $ 30.36 Granted 267,950 37.13 Exercised (115,592 ) 22.74 Cancelled – forfeited (119,711 ) 36.89 Cancelled – expired (4,184 ) 36.97 Options outstanding, March 31, 2017 1,143,928 $ 32.02 3.12 $ 13,380,609 Options vested and expected to vest 1,007,484 $ 31.58 2.98 $ 12,235,839 Ending exercisable 585,424 $ 27.63 2.23 $ 9,405,917 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | Property and equipment, net consisted of the following at March 31, 2016 and 2017: 2016 2017 Computer software $ 114,883,000 $ 130,641,000 Office equipment and computers 60,061,000 65,246,000 Leasehold improvements 9,060,000 10,893,000 184,004,000 206,780,000 Less: accumulated depreciation and amortization (130,736,000 ) (143,738,000 ) $ 53,268,000 $ 63,042,000 |
Accounts and Income Taxes Pay27
Accounts and Income Taxes Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Payables And Accruals [Abstract] | |
Accounts and Income Taxes Payable, Accrued Liabilities | Accounts and income taxes payable consisted of the following at March 31, 2016 and 2017: 2016 2017 Accounts payable $ 11,191,000 $ 13,869,000 Income taxes payable and uncertain tax positions 2,042,000 2,714,000 $ 13,233,000 $ 16,583,000 Accrued liabilities consisted of the following at March 31, 2016 and 2017: 2016 2017 Payroll, payroll taxes and employee benefits $ 18,003,000 $ 14,465,000 Customer deposits 25,649,000 32,471,000 Accrued professional service fees 4,692,000 4,551,000 Self-insurance accruals 3,095,000 2,835,000 Deferred revenue 7,821,000 10,096,000 Accrued rent 4,907,000 5,774,000 Other 3,015,000 3,276,000 $ 67,182,000 $ 73,468,000 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Summary of Income Tax Provision | The income tax provision consisted of the following for the fiscal years ended March 31, 2015, 2016 and 2017: 2015 2016 2017 Current — Federal $ 16,534,000 $ 16,600,000 $ 16,456,000 Current — State 136,000 2,591,000 2,834,000 Subtotal 16,670,000 19,191,000 19,290,000 Deferred — Federal 312,000 (1,679,000 ) (1,508,000 ) Deferred — State (8,000 ) 23,000 288,000 Subtotal 304,000 (1,656,000 ) (1,220,000 ) $ 16,974,000 $ 17,535,000 $ 18,070,000 |
Summary of Reconciliation Income Tax Provision from the Statutory Federal Income Tax Rate | The following is a reconciliation of the income tax provision from the statutory federal income tax rate to the effective rate for the fiscal years ended March 31, 2015, 2016 and 2017: 2015 2016 2017 Income taxes at federal statutory rate (35%) $ 15,947,000 $ 16,121,000 $ 16,643,000 State income taxes, net of federal benefit 1,535,000 1,704,000 1,973,000 Uncertain tax positions 1,346,000 78,000 88,000 Permanent items and tax credits 94,000 (100,000 ) (705,000 ) Adjustments to returns as filed (1,978,000 ) (232,000 ) 80,000 Other 30,000 (36,000 ) (9,000 ) $ 16,974,000 $ 17,535,000 $ 18,070,000 |
Summary of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities at March 31, 2016 and 2017 are: 2016 2017 Deferred income tax assets: Accrued liabilities not currently deductible $ 9,656,000 $ 9,409,000 Allowance for doubtful accounts 696,000 1,153,000 Stock-based compensation 1,245,000 1,755,000 Accrued rent 1,875,000 2,219,000 Other 762,000 740,000 Deferred assets 14,234,000 15,276,000 Deferred income tax liabilities: Excess of book over tax basis of fixed assets (16,151,000 ) (15,666,000 ) Intangible assets (5,555,000 ) (5,960,000 ) Other (434,000 ) (336,000 ) Deferred liabilities (22,140,000 ) (21,962,000 ) Net deferred tax liability $ (7,906,000 ) $ (6,686,000 ) |
Reconciliation of the Financial Statement Recognition and Measurement of Uncertain Tax Positions During the Current Fiscal Year | A reconciliation of the financial statement recognition and measurement of uncertain tax positions during the current fiscal year is as follows: Balance as of March 31, 2016 $ 1,830,000 Additions based on tax positions related to the current year 355,000 Additions for tax positions of prior years — Reductions for tax positions related to the current year (177,000 ) Reductions for tax positions of prior years (124,000 ) Balance as of March 31, 2017 $ 1,884,000 |
Employee Stock Purchase Plan (T
Employee Stock Purchase Plan (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Text Block [Abstract] | |
Summary of Employee Stock Purchase Plan | Summarized ESPP information is as follows: 2015 2016 2017 Employee contributions $ 400,000 $ 371,000 $ 419,000 Shares acquired 12,299 10,975 10,596 Average purchase price $ 32.52 $ 33.81 $ 38.80 |
Treasury Stock (Tables)
Treasury Stock (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Summary of Share Repurchases and Cumulatively Since Inception of Authorization | The share repurchases for the fiscal years ended March 31, 2015, 2016 and 2017, and cumulatively since inception of the authorization, are as follows: 2015 2016 2017 Cumulative Shares repurchased 845,014 893,771 745,575 34,631,834 Cost $ 31,798,000 $ 31,525,000 $ 27,999,000 $ 419,802,000 Average price $ 37.63 $ 35.27 $ 37.56 $ 12.12 |
Quarterly Results (Unaudited) (
Quarterly Results (Unaudited) (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Unaudited Quarterly Results of Operations | The following is a summary of unaudited quarterly results of operations for each of the quarters in the fiscal years ended March 31, 2016 and 2017: Revenues Gross Profit Net Income Net Income per Basic Common Share Net Income per Diluted Common Share Fiscal Year Ended March 31, 2016: First Quarter $ 126,939,000 $ 26,183,000 $ 6,900,000 $ 0.34 $ 0.34 Second Quarter 124,460,000 26,684,000 8,267,000 0.42 0.41 Third Quarter 123,891,000 25,232,000 6,691,000 0.34 0.34 Fourth Quarter 128,294,000 26,445,000 6,667,000 0.34 0.34 Fiscal Year Ended March 31, 2017: First Quarter $ 128,459,000 $ 25,582,000 $ 7,491,000 $ 0.38 $ 0.38 Second Quarter 128,219,000 25,912,000 6,952,000 0.36 0.35 Third Quarter 128,403,000 25,577,000 7,049,000 0.36 0.36 Fourth Quarter 133,605,000 27,721,000 7,987,000 0.42 0.42 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Percentages of Revenues Attributable to Patient Management and Network Solutions Services | The percentages of revenues attributable to patient management and network solutions services for the fiscal years ended March 31, 2015, 2016 and 2017 are listed below. 2015 2016 2017 Patient management services 54.5 % 55.1 % 55.6 % Network solutions services 45.5 % 44.9 % 44.4 % 100.0 % 100.0 % 100.0 % |
Other Intangible Assets (Tables
Other Intangible Assets (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets | Other intangible assets consisted of the following at March 31, 2016: Item Life Cost Fiscal 2016 Amortization Expense Accumulated Amortization at March 31, 2016 Cost, Net of Accumulated Amortization at March 31, 2016 Covenant 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 Third Party Administrator 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 March 31, 2017: Item Life Cost Fiscal 2017 Amortization Expense Accumulated Amortization at March 31, 2017 Cost, Net of Accumulated Amortization at March 31, 2017 Covenant Not to Compete 5 years $ 775,000 $ — $ 775,000 $ — Customer Relationships 18-20 years 7,922,000 423,000 4,144,000 3,778,000 Third Party Administrator Licenses 15 years 204,000 14,000 131,000 73,000 Total $ 8,901,000 $ 437,000 $ 5,050,000 $ 3,851,000 |
Schedule II - Valuation and Q34
Schedule II - Valuation and Qualifying Accounts (Detail) - Allowance for Doubtful Accounts [Member] - USD ($) | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | $ 1,821,000 | $ 1,645,000 | $ 1,745,000 |
Additions Charged to Cost and Expenses | 2,335,000 | 1,357,000 | 1,730,000 |
Deductions | (1,155,000) | (1,181,000) | (1,830,000) |
Balance at End of Year | $ 3,001,000 | $ 1,821,000 | $ 1,645,000 |
Summary of Significant Accoun35
Summary of Significant Accounting Policies - Additional Information (Detail) | 2 Months Ended | 12 Months Ended | ||
Jun. 08, 2017USD ($)$ / sharesshares | Mar. 31, 2017USD ($)Customer$ / sharesshares | Mar. 31, 2016USD ($)Customer$ / sharesshares | Mar. 31, 2015USD ($)Customer$ / sharesshares | |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Number of shares of common stock repurchased | shares | 745,575 | 893,771 | 845,014 | |
Treasury Stock, Value, Acquired, Cost Method | $ 27,999,000 | $ 31,525,000 | $ 31,798,000 | |
Average price per share of common stock | $ / shares | $ 37.56 | $ 35.27 | $ 37.63 | |
Maturities of short term investment interest-bearing securities | 90 days | |||
Accounts receivable due period | 30 days | |||
Unbilled account receivables | $ 14,579,000 | $ 12,066,000 | ||
Capitalized software development costs | 25,721,000 | 25,140,000 | ||
Accumulated amortization of software development costs | 78,952,000 | 69,644,000 | ||
Impairment of goodwill, intangible assets or other long-lived assets | 0 | |||
Goodwill | 36,814,000 | 36,814,000 | ||
Accumulated amortization of goodwill | 2,069,000 | $ 2,069,000 | ||
ASU No. 2016-09 [Member] | ||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Excess tax benefit | $ 500,000 | |||
Computer Software Property and Equipment [Member] | ||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Amortization period of computer software | 5 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% | |
Number of customer | Customer | 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 | |||
Impairment recorded on investment | 0 | $ 0 | ||
Reduction to investments | 284,000 | |||
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 | 204,255 | |||
Treasury Stock, Value, Acquired, Cost Method | $ 9,100,000 | |||
Average price per share of common stock | $ / shares | $ 44.44 |
Summary of Significant Accoun36
Summary of Significant Accounting Policies - Schedule of Estimated Economic Useful Lives of Property and Equipment (Detail) | 12 Months Ended |
Mar. 31, 2017 | |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property and equipment | Shorter of 5 years or the life of lease |
Furniture and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property and equipment | 5 years |
Furniture and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property and equipment | 7 years |
Computer Hardware [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property and equipment | 2 years |
Computer Hardware [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property and equipment | 5 years |
Computer Software Property and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property and equipment | 3 years |
Computer Software Property and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property and equipment | 5 years |
Summary of Significant Accoun37
Summary of Significant Accounting Policies - Schedule of Earnings Per Share Basic and Diluted (Detail) - shares | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share [Abstract] | |||
Basic weighted shares | 19,418,000 | 19,826,000 | 20,669,000 |
Treasury stock impact of stock options | 152,000 | 178,000 | 221,000 |
Diluted weighted shares | 19,570,000 | 20,004,000 | 20,890,000 |
Stock Options and Stock-Based38
Stock Options and Stock-Based Compensation - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non-statutory stock options expiration period | 5 years | ||
Weighted-average grant-date fair value of options granted | $ 13.38 | $ 13.68 | $ 15 |
Total intrinsic value of options exercised | $ 2,620,000 | $ 3,581,000 | $ 2,455,000 |
Cash received from exercise of stock options | 2,367,000 | 3,749,000 | 1,603,000 |
Unrecognized compensation costs related to stock options | $ 4,048,000 | ||
Weighted average period to recognized compensation cost | 3 years | ||
Time Based Options and Performance Based Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 2,432,000 | 2,192,000 | 2,209,000 |
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 49,000 | $ 28,000 | $ 211,000 |
ASU No. 2016-09 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Excess tax benefit | $ 500,000 | ||
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 | ||
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 Options and Stock-Based39
Stock Options and Stock-Based Compensation - Weighted Average Assumptions (Detail) | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 41.00% | 43.00% | 45.00% |
Risk free interest rate, Minimum | 1.03% | 1.25% | 1.30% |
Risk free interest rate, Maximum | 1.92% | 1.65% | 1.70% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average option life | 4 years 4 months 24 days | 4 years 4 months 24 days | 4 years 4 months 24 days |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average option life | 4 years 6 months | 4 years 6 months | 4 years 6 months |
Stock Options and Stock-Based40
Stock Options and Stock-Based Compensation - Stock Compensation Expense for Time Based Options and Performance Based Options (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||||
Effect on basic earnings per share | $ 0.42 | $ 0.36 | $ 0.36 | $ 0.38 | $ 0.34 | $ 0.34 | $ 0.42 | $ 0.34 | $ 1.52 | $ 1.44 | $ 1.38 |
Effect on diluted earnings per share | $ 0.42 | $ 0.36 | $ 0.35 | $ 0.38 | $ 0.34 | $ 0.34 | $ 0.41 | $ 0.34 | $ 1.51 | $ 1.43 | $ 1.37 |
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 | $ 2,432,000 | $ 2,192,000 | $ 2,209,000 | ||||||||
Amount of income tax benefit recognized | 946,000 | 852,000 | 862,000 | ||||||||
Amount charged to net income | $ 1,486,000 | $ 1,340,000 | $ 1,347,000 | ||||||||
Effect on basic earnings per share | $ 0.08 | $ 0.07 | $ 0.07 | ||||||||
Effect on diluted earnings per share | $ 0.08 | $ 0.07 | $ 0.06 | ||||||||
Time Based Options and Performance Based Options [Member] | Cost of Revenue [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 | $ 1,507,000 | $ 1,288,000 | $ 1,021,000 | ||||||||
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 | $ 925,000 | $ 904,000 | $ 1,188,000 |
Stock Options and Stock-Based41
Stock Options and Stock-Based Compensation - Stock Options (Detail) - $ / shares | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options outstanding, beginning balance | 1,115,465 | 1,163,179 | 1,115,984 |
Options granted, Shares | 267,950 | 276,275 | 241,625 |
Options exercised, Shares | (115,592) | (200,753) | (111,758) |
Options cancelled/forfeited, Shares | (123,895) | (123,236) | (82,672) |
Options outstanding, ending balance | 1,143,928 | 1,115,465 | 1,163,179 |
Options granted, weighted average exercise price | $ 37.13 | $ 35.51 | $ 37.64 |
Options exercised, weighted average exercise price | 22.74 | 19.75 | 17.27 |
Options cancelled/forfeited, weighted average exercise price | 36.90 | 33.44 | 32.31 |
Weighted average exercise price per share | $ 32.02 | $ 30.36 | $ 27.65 |
Options available for future grants | 505,493 | 650,345 | 800,342 |
Exercisable options | 585,424 | 529,691 | 559,168 |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Price range of outstanding options | $ 12.71 | $ 9.05 | $ 7.78 |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Price range of outstanding options | $ 45.73 | $ 45.55 | $ 45.55 |
Stock Options and Stock-Based42
Stock Options and Stock-Based Compensation - Stock Options Outstanding and Exercisable (Detail) - $ / shares | 12 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Number of Outstanding Options | 1,143,928 | 1,115,465 | 1,163,179 | 1,115,984 |
Weighted Average Remaining Contractual Life | 3 years 1 month 13 days | |||
Outstanding Options – Weighted Average Exercise Price | $ 32.02 | $ 30.36 | $ 27.65 | |
Exercisable Options – Number of Exercisable Options | 585,424 | |||
Exercisable Options – Weighted Average Exercise Price | $ 27.63 | |||
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 | 324,027 | |||
Weighted Average Remaining Contractual Life | 2 years 22 days | |||
Outstanding Options – Weighted Average Exercise Price | $ 20.39 | |||
Exercisable Options – Number of Exercisable Options | 317,225 | |||
Exercisable Options – Weighted Average Exercise Price | $ 20.33 | |||
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 | 320,585 | |||
Weighted Average Remaining Contractual Life | 3 years 8 months 2 days | |||
Outstanding Options – Weighted Average Exercise Price | $ 31.47 | |||
Exercisable Options – Number of Exercisable Options | 120,078 | |||
Exercisable Options – Weighted Average Exercise Price | $ 29.62 | |||
Range of Exercise Price, $34.78 to $40.57 [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 | $ 40.57 | |||
Number of Outstanding Options | 293,728 | |||
Weighted Average Remaining Contractual Life | 3 years 4 months 20 days | |||
Outstanding Options – Weighted Average Exercise Price | $ 36.64 | |||
Exercisable Options – Number of Exercisable Options | 75,579 | |||
Exercisable Options – Weighted Average Exercise Price | $ 38.39 | |||
Range of Exercise Price, $40.58 to $45.73 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Price, lower limit | 40.58 | |||
Range of Exercise Price, upper limit | $ 45.73 | |||
Number of Outstanding Options | 205,588 | |||
Weighted Average Remaining Contractual Life | 3 years 6 months 29 days | |||
Outstanding Options – Weighted Average Exercise Price | $ 44.61 | |||
Exercisable Options – Number of Exercisable Options | 72,542 | |||
Exercisable Options – Weighted Average Exercise Price | $ 45.04 |
Stock Options and Stock-Based43
Stock Options and Stock-Based Compensation - Outstanding Options (Detail) - USD ($) | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Options outstanding, beginning balance | 1,115,465 | 1,163,179 | 1,115,984 |
Granted, Number of Options | 267,950 | 276,275 | 241,625 |
Exercised, Number of Options | (115,592) | (200,753) | (111,758) |
Cancelled - forfeited, Number of Options | (119,711) | ||
Cancelled - expired, Number of Options | (4,184) | ||
Options outstanding, ending balance | 1,143,928 | 1,115,465 | 1,163,179 |
Options vested and expected to vest, Number of Options | 1,007,484 | ||
Ending exercisable, Number of Options | 585,424 | ||
Options outstanding, beginning, Weighted Average Exercise Price per Share | $ 30.36 | $ 27.65 | |
Granted, Weighted Average Exercise Price per Share | 37.13 | 35.51 | $ 37.64 |
Exercised, Weighted Average Exercise Price per Share | 22.74 | 19.75 | 17.27 |
Cancelled - forfeited, Weighted Average Exercise Price per Share | 36.89 | ||
Cancelled - expired, Weighted Average Exercise Price per Share | 36.97 | ||
Options outstanding, ending, Weighted Average Exercise Price per Share | 32.02 | $ 30.36 | $ 27.65 |
Options vested and expected to vest, Weighted Average Exercise Price per Share | 31.58 | ||
Ending exercisable, Weighted Average Exercise Price per Share | $ 27.63 | ||
Option outstanding, Weighted Average Remaining Contractual Life (Years) | 3 years 1 month 13 days | ||
Options vested and expected to vest, Weighted Average Remaining Contractual Life (Years) | 2 years 11 months 23 days | ||
Ending exercisable, Weighted Average Remaining Contractual Life (Years) | 2 years 2 months 23 days | ||
Option outstanding, Aggregate Intrinsic Value | $ 13,380,609 | ||
Options vested and expected to vest, Aggregate Intrinsic Value | 12,235,839 | ||
Ending exercisable, Aggregate Intrinsic Value | $ 9,405,917 |
Property and Equipment - Proper
Property and Equipment - Property and Equipment, Net (Detail) - USD ($) | Mar. 31, 2017 | Mar. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 206,780,000 | $ 184,004,000 |
Less: accumulated depreciation and amortization | (143,738,000) | (130,736,000) |
Property and equipment, net | 63,042,000 | 53,268,000 |
Computer Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 130,641,000 | 114,883,000 |
Office Equipment And Computers [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 65,246,000 | 60,061,000 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 10,893,000 | $ 9,060,000 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense | $ 20,534,000 | $ 19,502,000 | $ 17,995,000 |
Accounts and Income Taxes Pay46
Accounts and Income Taxes Payable and Accrued Liabilities - Accounts and Income Taxes Payable (Detail) - USD ($) | Mar. 31, 2017 | Mar. 31, 2016 |
Payables And Accruals [Abstract] | ||
Accounts payable | $ 13,869,000 | $ 11,191,000 |
Income taxes payable and uncertain tax positions | 2,714,000 | 2,042,000 |
Accounts and taxes payable | $ 16,583,000 | $ 13,233,000 |
Accounts and Income Taxes Pay47
Accounts and Income Taxes Payable and Accrued Liabilities - Accrued Liabilities (Detail) - USD ($) | Mar. 31, 2017 | Mar. 31, 2016 |
Payables And Accruals [Abstract] | ||
Payroll, payroll taxes and employee benefits | $ 14,465,000 | $ 18,003,000 |
Customer deposits | 32,471,000 | 25,649,000 |
Accrued professional service fees | 4,551,000 | 4,692,000 |
Self-insurance accruals | 2,835,000 | 3,095,000 |
Deferred revenue | 10,096,000 | 7,821,000 |
Accrued rent | 5,774,000 | 4,907,000 |
Other | 3,276,000 | 3,015,000 |
Total accrued liabilities | $ 73,468,000 | $ 67,182,000 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Provision (Detail) - USD ($) | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Current — Federal | $ 16,456,000 | $ 16,600,000 | $ 16,534,000 |
Current — State | 2,834,000 | 2,591,000 | 136,000 |
Subtotal | 19,290,000 | 19,191,000 | 16,670,000 |
Deferred — Federal | (1,508,000) | (1,679,000) | 312,000 |
Deferred — State | 288,000 | 23,000 | (8,000) |
Subtotal | (1,220,000) | (1,656,000) | 304,000 |
Total | $ 18,070,000 | $ 17,535,000 | $ 16,974,000 |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation Income Tax Provision from the Statutory Federal Income Tax Rate (Detail) - USD ($) | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Income taxes at federal statutory rate (35%) | $ 16,643,000 | $ 16,121,000 | $ 15,947,000 |
State income taxes, net of federal benefit | 1,973,000 | 1,704,000 | 1,535,000 |
Uncertain tax positions | 88,000 | 78,000 | 1,346,000 |
Permanent items and tax credits | (705,000) | (100,000) | 94,000 |
Adjustments to returns as filed | 80,000 | (232,000) | (1,978,000) |
Other | (9,000) | (36,000) | 30,000 |
Total | $ 18,070,000 | $ 17,535,000 | $ 16,974,000 |
Income Taxes - Summary of Rec50
Income Taxes - Summary of Reconciliation Income Tax Provision from the Statutory Federal Income Tax Rate (Parenthetical) (Detail) | 12 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Federal statutory tax rate | 35.00% |
Income Taxes - Summary of Defer
Income Taxes - Summary of Deferred Tax Assets and Liabilities (Detail) - USD ($) | Mar. 31, 2017 | Mar. 31, 2016 |
Deferred income tax assets: | ||
Accrued liabilities not currently deductible | $ 9,409,000 | $ 9,656,000 |
Allowance for doubtful accounts | 1,153,000 | 696,000 |
Stock-based compensation | 1,755,000 | 1,245,000 |
Accrued rent | 2,219,000 | 1,875,000 |
Other | 740,000 | 762,000 |
Deferred assets | 15,276,000 | 14,234,000 |
Deferred income tax liabilities: | ||
Excess of book over tax basis of fixed assets | (15,666,000) | (16,151,000) |
Intangible assets | (5,960,000) | (5,555,000) |
Other | (336,000) | (434,000) |
Deferred liabilities | (21,962,000) | (22,140,000) |
Net deferred tax liability | $ (6,686,000) | $ (7,906,000) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax Disclosure [Line Items] | |||
Prepaid expenses and taxes | $ 301,000 | ||
Income taxes due included in accounts and taxes payable | $ 584,000 | ||
Recognizes interest and penalties related to uncertain tax positions | 35,000 | 72,000 | $ 57,000 |
Accrued interest and penalties related to uncertain tax positions | $ 247,000 | $ 212,000 | $ 140,000 |
Earliest Tax Year [Member] | |||
Income Tax Disclosure [Line Items] | |||
Tax fiscal years opened to examination | 2,013 | ||
Latest Tax Year [Member] | |||
Income Tax Disclosure [Line Items] | |||
Tax fiscal years opened to examination | 2,016 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the Financial Statement Recognition and Measurement of Uncertain Tax Positions During the Current Fiscal Year (Detail) | 12 Months Ended |
Mar. 31, 2017USD ($) | |
Income Tax Disclosure [Abstract] | |
Balance as of March 31, 2016 | $ 1,830,000 |
Additions based on tax positions related to the current year | 355,000 |
Additions for tax positions of prior years | 0 |
Reductions for tax positions related to the current year | (177,000) |
Reductions for tax positions of prior years | (124,000) |
Balance as of March 31, 2017 | $ 1,884,000 |
Employee Stock Purchase Plan -
Employee Stock Purchase Plan - Additional Information (Detail) - shares | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Employee Stock Purchase Plan [Line Items] | |||
Percentage of employees contribution of their gross pay | 20.00% | ||
Stock issued under employee stock purchase plan, shares | 2,460,867 | ||
Employee Stock Purchase Plan [Member] | |||
Employee Stock Purchase Plan [Line Items] | |||
Percentage as purchase price of closing sale price of shares | 95.00% | ||
Maximum shares authorized for issuance under the ESPP | 2,850,000 | ||
Stock issued under employee stock purchase plan, shares | 10,596 | 10,975 | 12,299 |
Employee Stock Purchase Plan 55
Employee Stock Purchase Plan - Summary of Employee Stock Purchase Plan (Detail) - USD ($) | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Employee Stock Purchase Plan [Line Items] | |||
Employee contributions | $ 419,000 | $ 371,000 | $ 400,000 |
Shares acquired | 2,460,867 | ||
Employee Stock Purchase Plan [Member] | |||
Employee Stock Purchase Plan [Line Items] | |||
Shares acquired | 10,596 | 10,975 | 12,299 |
Average purchase price | $ 38.80 | $ 33.81 | $ 32.52 |
Treasury Stock - Additional Inf
Treasury Stock - Additional Information (Detail) - USD ($) | 2 Months Ended | 12 Months Ended | |||
Jun. 08, 2017 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | Feb. 28, 2017 | |
Class of Stock [Line Items] | |||||
Number of shares of common stock authorized to repurchase | 36,000,000 | 1,000,000 | |||
Number of shares of common stock repurchased | 745,575 | 893,771 | 845,014 | ||
Treasury Stock, Value, Acquired, Cost Method | $ 27,999,000 | $ 31,525,000 | $ 31,798,000 | ||
Average price per share of common stock | $ 37.56 | $ 35.27 | $ 37.63 | ||
Subsequent Event [Member] | |||||
Class of Stock [Line Items] | |||||
Number of shares of common stock repurchased | 204,255 | ||||
Treasury Stock, Value, Acquired, Cost Method | $ 9,100,000 | ||||
Average price per share of common stock | $ 44.44 |
Treasury Stock - Summary of Sha
Treasury Stock - Summary of Share Repurchases and Cumulatively Since Inception of Authorization (Detail) - USD ($) | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Equity [Abstract] | |||
Shares repurchased | 745,575 | 893,771 | 845,014 |
Cost | $ 27,999,000 | $ 31,525,000 | $ 31,798,000 |
Average price | $ 37.56 | $ 35.27 | $ 37.63 |
Shares repurchased, Cumulative | 34,631,834 | 33,886,259 | |
Cost, Cumulative | $ 419,802,000 | $ 391,803,000 | |
Average price, Cumulative | $ 12.12 |
Commitments - Additional Inform
Commitments - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |||
2,018 | $ 13,677,000 | ||
2,019 | 10,809,000 | ||
2,020 | 8,496,000 | ||
2,021 | 7,301,000 | ||
2,022 | 5,602,000 | ||
Thereafter | 5,244,000 | ||
Aggregate | 51,129,000 | ||
Total rental expense | $ 13,952,000 | $ 14,405,000 | $ 15,297,000 |
Retirement Savings Plan - Addit
Retirement Savings Plan - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Compensation And Retirement Disclosure [Abstract] | |||
Employer contribution | $ 464,000 | $ 392,000 | $ 443,000 |
Shareholder Rights Plan - Addit
Shareholder Rights Plan - Additional Information (Detail) | 12 Months Ended |
Mar. 31, 2017$ / shares | |
Equity [Abstract] | |
Dividend distribution ratio of preferred share purchase right for outstanding share of common stock | 100.00% |
Shareholder rights exercise price | $ 118 |
Shareholder rights expiration date | Feb. 10, 2022 |
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 would 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% |
Line of Credit - Additional Inf
Line of Credit - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Mar. 31, 2017 | |
Line of Credit Facility [Line Items] | ||
Loan covenants requirements | The loan covenants require the Company to maintain a current assets to liabilities ratio of at least 1.25:1, debt to tangible net worth ratio not greater than 1.25:1 and to 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 | 1.50% | |
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 | 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% |
Quarterly Results (Unaudited) -
Quarterly Results (Unaudited) - Summary of Unaudited Quarterly Results of Operations (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 133,605,000 | $ 128,403,000 | $ 128,219,000 | $ 128,459,000 | $ 128,294,000 | $ 123,891,000 | $ 124,460,000 | $ 126,939,000 | $ 518,686,000 | $ 503,584,000 | $ 492,625,000 |
Gross Profit | 27,721,000 | 25,577,000 | 25,912,000 | 25,582,000 | 26,445,000 | 25,232,000 | 26,684,000 | 26,183,000 | 104,792,000 | 104,544,000 | 99,969,000 |
Net income | $ 7,987,000 | $ 7,049,000 | $ 6,952,000 | $ 7,491,000 | $ 6,667,000 | $ 6,691,000 | $ 8,267,000 | $ 6,900,000 | $ 29,479,000 | $ 28,525,000 | $ 28,590,000 |
Net Income per Basic Common Share | $ 0.42 | $ 0.36 | $ 0.36 | $ 0.38 | $ 0.34 | $ 0.34 | $ 0.42 | $ 0.34 | $ 1.52 | $ 1.44 | $ 1.38 |
Net Income per Diluted Common Share | $ 0.42 | $ 0.36 | $ 0.35 | $ 0.38 | $ 0.34 | $ 0.34 | $ 0.41 | $ 0.34 | $ 1.51 | $ 1.43 | $ 1.37 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Percentages of Revenues Attributable to Patient Management and Network Solutions Services (Detail) - Product Concentration Risk [Member] - Sales Revenue, Services, Net [Member] | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Revenue, Major Customer [Line Items] | |||
Percentage of revenues | 100.00% | 100.00% | 100.00% |
Patient Management Services [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of revenues | 55.60% | 55.10% | 54.50% |
Network Solutions Services [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of revenues | 44.40% | 44.90% | 45.50% |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 12 Months Ended |
Mar. 31, 2017Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |
Other Intangible Assets - Other
Other Intangible Assets - Other Intangible Assets (Detail) - USD ($) | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 8,901,000 | $ 8,901,000 |
Amortization Expense | 437,000 | 450,000 |
Accumulated Amortization | 5,050,000 | 4,614,000 |
Cost, Net of Accumulated Amortization | $ 3,851,000 | $ 4,287,000 |
Covenant 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 | 423,000 | 423,000 |
Accumulated Amortization | 4,144,000 | 3,721,000 |
Cost, Net of Accumulated Amortization | $ 3,778,000 | $ 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 |
Third Party Administrator Licenses [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Life | 15 years | 15 years |
Cost | $ 204,000 | $ 204,000 |
Amortization Expense | 14,000 | 14,000 |
Accumulated Amortization | 131,000 | 118,000 |
Cost, Net of Accumulated Amortization | $ 73,000 | $ 86,000 |
Other Intangible Assets - Addit
Other Intangible Assets - Additional Information (Detail) | Mar. 31, 2017USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2,018 | $ 437,000 |
2,019 | 437,000 |
2,020 | 437,000 |
2,021 | 437,000 |
2,022 | 436,000 |
Thereafter | $ 1,667,000 |