Cover
Cover - shares | 9 Months Ended | |
Mar. 31, 2021 | May 03, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-34269 | |
Entity Registrant Name | SHARPS COMPLIANCE CORP | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 74-2657168 | |
Entity Address, Address Line One | 9220 Kirby Drive | |
Entity Address, Address Line Two | Suite 500 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77054 | |
City Area Code | 713 | |
Local Phone Number | 432-0300 | |
Title of 12(b) Security | Common Shares, $0.01 Par Value | |
Trading Symbol | SMED | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 16,890,526 | |
Entity Central Index Key | 0000898770 | |
Current Fiscal Year End Date | --06-30 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
CURRENT ASSETS | ||
Cash | $ 11,216 | $ 5,416 |
Accounts receivable, net | 23,415 | 11,789 |
Inventory | 4,378 | 5,638 |
Contract asset | 37 | 156 |
Prepaid and other current assets | 446 | 1,287 |
TOTAL CURRENT ASSETS | 39,492 | 24,286 |
PROPERTY, PLANT AND EQUIPMENT, net | 10,952 | 8,740 |
OPERATING LEASE RIGHT OF USE ASSET | 8,407 | 8,747 |
FINANCING LEASE RIGHT OF USE ASSET, net | 647 | 387 |
INVENTORY, net of current portion | 988 | 1,064 |
OTHER ASSETS | 110 | 154 |
GOODWILL | 6,735 | 6,735 |
INTANGIBLE ASSETS, net | 2,390 | 2,771 |
DEFERRED TAX ASSET | 0 | 1,252 |
TOTAL ASSETS | 69,721 | 54,136 |
CURRENT LIABILITIES | ||
Accounts payable | 3,550 | 3,291 |
Accrued liabilities | 3,044 | 2,768 |
Operating lease liability | 2,398 | 2,192 |
Financing lease liability | 115 | 65 |
Current maturities of long-term debt | 2,836 | 1,658 |
Contract liability | 6,877 | 3,262 |
TOTAL CURRENT LIABILITIES | 18,820 | 13,236 |
CONTRACT LIABILITY, net of current portion | 1,692 | 705 |
OPERATING LEASE LIABILITY, net of current portion | 6,150 | 6,671 |
FINANCING LEASE LIABILITY, net of current portion | 537 | 337 |
OTHER LIABILITIES | 54 | 104 |
DEFERRED TAX LIABILITY | 32 | 0 |
LONG-TERM DEBT, net of current portion | 3,616 | 3,505 |
TOTAL LIABILITIES | 30,901 | 24,558 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS' EQUITY | ||
Common stock, $0.01 par value per share; 40,000,000 shares authorized; 16,882,033 and 16,667,572 shares issued, respectively and 16,586,418 and 16,371,957 shares outstanding, respectively | 171 | 168 |
Treasury stock, at cost, 295,615 shares repurchased | (1,554) | (1,554) |
Additional paid-in capital | 31,657 | 30,203 |
Retained earnings | 8,546 | 761 |
TOTAL STOCKHOLDERS' EQUITY | 38,820 | 29,578 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 69,721 | $ 54,136 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2021 | Jun. 30, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 16,882,033 | 16,667,572 |
Common stock, shares outstanding (in shares) | 16,586,418 | 16,371,957 |
Treasury stock, shares repurchased (in shares) | 295,615 | 295,615 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||||
REVENUES | $ 27,528 | $ 10,414 | $ 57,690 | $ 38,578 |
Cost of revenues | 14,129 | 8,191 | 35,031 | 26,999 |
GROSS PROFIT | 13,399 | 2,223 | 22,659 | 11,579 |
Selling, general and administrative | 4,181 | 3,600 | 11,725 | 10,718 |
Depreciation and amortization | 216 | 201 | 625 | 602 |
OPERATING INCOME (LOSS) | 9,002 | (1,578) | 10,309 | 259 |
OTHER INCOME (EXPENSE) | ||||
Interest income | 0 | 4 | 0 | 13 |
Interest expense | (55) | (36) | (134) | (81) |
Income associated with derivative instrument | 26 | 0 | 41 | 0 |
TOTAL OTHER EXPENSE | (29) | (32) | (93) | (68) |
INCOME (LOSS) BEFORE INCOME TAXES | 8,973 | (1,610) | 10,216 | 191 |
INCOME TAX EXPENSE (BENEFIT) | ||||
Current | 1,083 | (176) | 1,147 | (120) |
Deferred | 1,040 | 122 | 1,284 | 211 |
TOTAL INCOME TAX EXPENSE (BENEFIT) | 2,123 | (54) | 2,431 | 91 |
NET INCOME (LOSS) | $ 6,850 | $ (1,556) | $ 7,785 | $ 100 |
NET INCOME (LOSS) PER COMMON SHARE | ||||
Basic (in dollars per share) | $ 0.41 | $ (0.10) | $ 0.47 | $ 0.01 |
Diluted (in dollars per share) | $ 0.40 | $ (0.10) | $ 0.46 | $ 0.01 |
WEIGHTED AVERAGE SHARES USED IN COMPUTING NET INCOME (LOSS) PER COMMON SHARE: | ||||
Basic (in shares) | 16,556 | 16,264 | 16,481 | 16,211 |
Diluted (in shares) | 17,187 | 16,264 | 16,978 | 16,312 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) |
Balance at beginning (in shares) at Jun. 30, 2019 | 16,433,128 | (295,615,000) | |||
Balances at beginning at Jun. 30, 2019 | $ 26,126 | $ 165 | $ (1,554) | $ 29,020 | $ (1,505) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of stock options (in shares) | 134,194 | 134,194 | |||
Exercise of stock options | $ 576 | $ 1 | 575 | ||
Stock-based compensation | 372 | 372 | |||
Issuance of restricted stock (in shares) | 72,000 | ||||
Issuance of restricted stock | 0 | $ 1 | (1) | ||
Net income (loss) | 100 | 100 | |||
Balance at end (in shares) at Mar. 31, 2020 | 16,639,322 | (295,615,000) | |||
Balances at end at Mar. 31, 2020 | 27,174 | $ 167 | $ (1,554) | 29,966 | (1,405) |
Balance at beginning (in shares) at Dec. 31, 2019 | 16,524,478 | (295,615,000) | |||
Balances at beginning at Dec. 31, 2019 | $ 28,065 | $ 166 | $ (1,554) | 29,302 | 151 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of stock options (in shares) | 114,844 | 114,844 | |||
Exercise of stock options | $ 518 | $ 1 | 517 | ||
Stock-based compensation | 147 | 147 | |||
Net income (loss) | (1,556) | (1,556) | |||
Balance at end (in shares) at Mar. 31, 2020 | 16,639,322 | (295,615,000) | |||
Balances at end at Mar. 31, 2020 | 27,174 | $ 167 | $ (1,554) | 29,966 | (1,405) |
Balance at beginning (in shares) at Jun. 30, 2020 | 16,667,572 | (295,615,000) | |||
Balances at beginning at Jun. 30, 2020 | $ 29,578 | $ 168 | $ (1,554) | 30,203 | 761 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of stock options (in shares) | 141,281 | 141,281 | |||
Exercise of stock options | $ 625 | $ 2 | 623 | ||
Stock-based compensation | 832 | 832 | |||
Issuance of restricted stock (in shares) | 73,180 | ||||
Issuance of restricted stock | 0 | $ 1 | (1) | ||
Net income (loss) | 7,785 | 7,785 | |||
Balance at end (in shares) at Mar. 31, 2021 | 16,882,033 | (295,615,000) | |||
Balances at end at Mar. 31, 2021 | 38,820 | $ 171 | $ (1,554) | 31,657 | 8,546 |
Balance at beginning (in shares) at Dec. 31, 2020 | 16,799,702 | (295,615,000) | |||
Balances at beginning at Dec. 31, 2020 | $ 31,126 | $ 170 | $ (1,554) | 30,814 | 1,696 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of stock options (in shares) | 72,750 | 72,750 | |||
Exercise of stock options | $ 314 | $ 1 | 313 | ||
Stock-based compensation | 530 | 530 | |||
Issuance of restricted stock (in shares) | 9,581 | ||||
Issuance of restricted stock | 0 | $ 0 | 0 | ||
Net income (loss) | 6,850 | 6,850 | |||
Balance at end (in shares) at Mar. 31, 2021 | 16,882,033 | (295,615,000) | |||
Balances at end at Mar. 31, 2021 | $ 38,820 | $ 171 | $ (1,554) | $ 31,657 | $ 8,546 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 7,785 | $ 100 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,445 | 1,191 |
Bad debt expense | 141 | 91 |
Inventory write-off | 76 | 13 |
Loss on disposal of property, plant and equipment | 1 | 6 |
Stock-based compensation expense | 832 | 372 |
Income on derivative instrument | (41) | 0 |
Deferred tax expense | 1,284 | 211 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (11,767) | (367) |
Inventory | 1,260 | (1,034) |
Prepaid and other assets | 885 | (700) |
Accounts payable and accrued liabilities | 846 | 692 |
Contract asset and contract liability | 4,721 | 947 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 7,468 | 1,522 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of property, plant and equipment | (2,566) | (2,500) |
Proceeds from sale of property, plant and equipment | 0 | 3 |
Additions to intangible assets | (79) | (121) |
NET CASH USED IN INVESTING ACTIVITIES | (2,645) | (2,618) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from exercise of stock options | 625 | 576 |
Proceeds from long-term debt | 961 | 1,343 |
Repayments of long-term debt | (545) | (387) |
Payments on financing lease liabilities | (64) | 0 |
Payments of debt issuance costs | 0 | (50) |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 977 | 1,482 |
NET INCREASE IN CASH | 5,800 | 386 |
CASH, beginning of period | 5,416 | 4,512 |
CASH, end of period | 11,216 | 4,898 |
SUPPLEMENTAL CASH FLOW DISCLOSURES: | ||
Income taxes paid, net of refunds | (210) | 90 |
Interest paid on long-term debt | 120 | 32 |
NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Property, plant and equipment financed through accounts payable | (295) | 46 |
Purchase of previously leased property, plant and equipment financed with note payable | $ 873 | $ 0 |
ORGANIZATION AND BACKGROUND
ORGANIZATION AND BACKGROUND | 9 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BACKGROUND | ORGANIZATION AND BACKGROUND Organization : The accompanying unaudited condensed consolidated financial statements include the financial transactions and accounts of Sharps Compliance Corp. and its wholly owned subsidiaries, Sharps Compliance, Inc. of Texas (dba Sharps Compliance, Inc.), Sharps e-Tools.com Inc. (“Sharps e-Tools”), Sharps Manufacturing, Inc., Sharps Environmental Services, Inc. (dba Sharps Environmental Services of Texas, Inc.), Sharps Safety, Inc., Alpha Bio/Med Services LLC, Bio-Team Mobile LLC, Citiwaste, LLC and Sharps Properties, LLC (collectively, “Sharps” or the “Company”). All significant intercompany accounts and transactions have been eliminated upon consolidation. Business : Sharps is a full-service national provider of comprehensive waste management services including medical, pharmaceutical and hazardous for small and medium quantity generators. The Company’s solutions include Sharps Recovery System™ (formerly Sharps Disposal by Mail System ® ), TakeAway Recovery System, TakeAway Medication Recovery System™, MedSafe ® , TakeAway Recycle System™, ComplianceTRAC SM , SharpsTracer ® , Sharps Secure ® Needle Disposal System, Complete Needle™ Collection & Disposal System, TakeAway Environmental Return System™, Pitch-It IV™ Poles, Asset Return System and Spill Kit Recovery System . The Company also offers its route-based pick-up services in a thirty-seven (37) state region of the South, Southeast, Southwest, Midwest and Northeast portions of the United States. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information and with instructions to Form 10-Q and, accordingly, do not include all information and footnotes required under generally accepted accounting principles in the United States of America ("GAAP") for complete financial statements. Additionally, the preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts. In the opinion of management, these interim condensed consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the consolidated financial position of the Company as of March 31, 2021, the results of its operations for the three and nine months ended March 31, 2021 and 2020, cash flows for the nine months ended March 31, 2021 and 2020, and stockholders’ equity for the three and nine months ended March 31, 2021 and 2020. The results of operations for the three and nine months ended March 31, 2021 are not necessarily indicative of the results to be expected for the entire fiscal year ending June 30, 2021. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended June 30, 2020. Certain amounts on the balance sheet as of June 30, 2020 have been reclassified to conform to current presentation. A novel strain of coronavirus ("COVID-19") was first identified in December 2019, and subsequently declared a global pandemic by the World Health Organization on March 11, 2020. As a result of the outbreak, many companies have experienced disruptions in their operations and in servicing customers. The Company has implemented some and may take additional precautionary measures intended to help ensure the well-being of its employees, facilitate continued uninterrupted servicing of customers and minimize business disruptions. The full extent of the future impacts of COVID-19 on the Company's operations is uncertain. A prolonged outbreak could have a material adverse impact on the financial results and business operations of the Company. To date, the Company has not identified any material adverse impact of COVID-19 on its financial position and results of operations. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES Revenue Recognition: The components of revenues by solution which reflect a disaggregation of revenue by contract type are as follows (dollar amounts in thousands): Three-Months Ended March 31, 2021 % Total 2020 % Total REVENUES BY SOLUTION: Mailbacks $ 20,893 75.9 % $ 4,702 45.1 % Route-based pickup services 3,597 13.1 % 2,625 25.2 % Unused medications 2,078 7.5 % 2,111 20.3 % Third party treatment services 76 0.3 % 38 0.4 % Other (1) 884 3.2 % 938 9.0 % Total revenues $ 27,528 100.0 % $ 10,414 100.0 % Nine-Months Ended March 31, 2021 % Total 2020 % Total REVENUES BY SOLUTION: Mailbacks $ 37,507 64.9 % $ 20,383 52.8 % Route-based pickup services 10,244 17.8 % 7,762 20.1 % Unused medications 6,152 10.7 % 6,815 17.7 % Third party treatment services 390 0.7 % 123 0.3 % Other (1) 3,397 5.9 % 3,495 9.1 % Total revenues $ 57,690 100.0 % $ 38,578 100.0 % (1) The Company’s other products include IV poles, accessories, containers, asset return boxes and other miscellaneous items with single performance obligations. Vendor Managed Inventory ("VMI") - The VMI program includes terms that meet the “bill and hold” criteria and as such are recognized when the order is placed, title has transferred, there are no acceptance provisions and amounts are segregated in the Company’s warehouse for the customer. During the three and nine months ended March 31, 2021, the Company recorded billings from inventory builds that are held in VMI under these service agreements of $0.3 million and $3.8 million, respectively. During the three and nine months ended March 31, 2020, the Company recorded billings from inventory builds that are held in VMI under these service agreements of $0.5 million and $2.9 million, respectively. As of March 31, 2021 and June 30, 2020, $3.9 million and $2.8 million , respectively, of solutions sold through that date were held in vendor managed inventory pending fulfillment or shipment to patients of pharmaceutical manufacturers who offer these solutions to patients in an ongoing patient support program. The contract asset is related to VMI service agreements within the maibacks contract type category when the revenue recognition exceeds the amount of consideration the Company was entitled to at the point in time of satisfying the performance obligation associated with the sale of the compliance and container system. The contract liability is related to the mailbacks and unused medications contract type categories in which cash consideration exceeds the transaction price allocated to completed performance obligations. The amount recognized during the three and nine months ended March 31, 2021 and 2020 related to contract liabilities recorded as of June 30, 2020 and 2019 were $0.3 million and $2.4 million, respectively. Income Taxes : Deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. A valuation allowance is established when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The establishment of valuation allowances requires significant judgment and is impacted by various estimates. Both positive and negative evidence, as well as the objectivity and verifiability of that evidence, is considered in determining the appropriateness of recording a valuation allowance on deferred tax assets. The Company has historically recorded a valuation allowance to reduce its deferred tax assets to an amount that is more likely than not to be realized. However, during the year ended June 30, 2020, the Company released the full amount of the valuation allowance against its deferred tax assets on the basis of the Company's reassessment of the recoverability of its deferred tax assets. During the nine months ended March 31, 2021, the Company's net operating losses were completely utilized. Accounts Receivable : Accounts receivable consist primarily of amounts due to the Company from normal business activities. Accounts receivable balances are determined to be delinquent when the amount is past due based on the contractual terms with the customer. The Company maintains an allowance for doubtful accounts to reflect the likelihood of not collecting certain accounts receivable based on past collection history and specific risks identified among uncollected accounts. Accounts receivable are charged to the allowance for doubtful accounts when the Company determines that the receivable will not be collected and/or when the account has been referred to a third party collection agency. The Company has a history of minimal uncollectible accounts. Goodwill and Other Identifiable Intangible Assets: Finite-lived intangible assets are amortized over their respective estimated useful lives and evaluated for impairment periodically whenever events or changes in circumstances indicate that their related carrying values may not be fully recoverable. Goodwill is assessed for impairment at least annually. The Company generally performs its annual goodwill impairment analysis using a quantitative approach. The quantitative goodwill impairment test identifies the existence of potential impairment by comparing the fair value of its single reporting unit with its carrying value, including goodwill. If the fair value of a reporting unit exceeds its carrying value, the reporting unit's goodwill is considered not to be impaired. If the carrying value of a reporting unit exceeds its fair value, an impairment charge is recognized in an amount equal to that excess. The impairment charge recognized is limited to the amount of goodwill present in the single reporting unit. These estimates and assumptions could have a significant impact on whether or not an impairment charge is recognized and the amount of any such charge. The Company performs its annual impairment assessment of goodwill during the fourth quarter of each fiscal year. The Company determined that there was no impairment during the prior year ended June 30, 2020 and there have been no triggering events since that date that would warrant further impairment testing. |
RECENTLY ISSUED ACCOUNTING STAN
RECENTLY ISSUED ACCOUNTING STANDARDS | 9 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
RECENTLY ISSUED ACCOUNTING STANDARDS | RECENTLY ISSUED ACCOUNTING STANDARDS In March 2020, guidance for applying optional expedients and exceptions to ease the potential burden in accounting for reference rate reform on financial reporting was issued. It is elective and applies to all entities, subject to meeting certain criteria, that have contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform on financial reporting. The provisions of the new guidance are effective for interim periods beginning as of March 12, 2020 through December 31, 2022. There has been no material impact on the Company's consolidated financial statements and related disclosures from the modification of its arrangements as of March 31, 2021. The Company will continue to evaluate the standard as well as additional changes, modifications or interpretations which may impact the Company. In June 2016, guidance for credit losses of financial instruments was issued, which requires entities to measure credit losses for financial assets measured at amortized cost based on expected losses rather than incurred losses. The provisions of the new guidance are effective for annual periods beginning after December 15, 2022 (effective July 1, 2023 for the Company), including interim periods within the reporting period, and early application is permitted. The Company is in the initial stages of evaluating the impact of the new guidance on its consolidated financial statements and related disclosures as well as evaluating the available transition methods. The Company will continue to evaluate the standard as well as additional changes, modifications or interpretations which may impact the Company. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXESThe Company’s effective tax rate for the three and nine months ended March 31, 2021 was 23.7% and 23.8%, respectively and for the three and nine months ended March 31, 2020 was 3.4% and 47.6%, respectively. During the three and nine months ended March 31, 2021, the effective tax rate is based on the statutory federal tax rate of 21%, now that the valuation has been removed since June 30, 2020, as well as an approximated 5% state income tax rate net of the federal benefit. During the three and nine months ended March 31, 2020, the effective tax rate represented the deferred tax expense related to the effects of indefinite lived intangible assets, such as goodwill, which could not be used as a source of future taxable income in evaluating the need for a valuation allowance against deferred tax assets as well as the effects of the state income tax expense for the period. |
LEASES
LEASES | 9 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
LEASES | LEASES The Company has operating leases for real estate, field equipment, office equipment and vehicles and financing leases for vehicles. Operating leases are included in Operating Lease Right of Use ("ROU") Asset and Operating Lease Liability on our Condensed Consolidated Balance Sheets. Financing leases are included in Financing Lease ROU Asset and Financing Lease Liability on the Condensed Consolidated Balance Sheets. During the three and nine months ended March 31, 2021 and 2020, lease cost amounts, which reflect the fixed rent expense associated with operating and financing leases, are as follows (in thousands): Three-Months Ended March 31, Nine-Months Ended March 31, 2021 2020 2021 2020 Lease cost (1) - fixed rent expense: Operating lease cost included in: Cost of revenues $ 613 $ 457 $ 1,805 $ 1,342 Selling, general and administrative 107 123 333 305 Finance lease cost included in: Cost of revenues (amortization expense) 19 3 54 9 Interest expense 4 — 12 1 Total $ 743 $ 583 $ 2,204 $ 1,657 (1) Short-term lease cost and variable lease cost were not significant during the period. During the nine months ended March 31, 2021 and 2020, the Company had the following cash and non-cash activities associated with leases (in thousands): Nine-Months Ended March 31, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflow for operating leases $ 2,080 $ 1,647 Non-cash changes to the ROU Asset and Lease Liability Additions and modifications to ROU asset obtained from new operating lease liabilities $ 2,382 $ 5,436 Additions to ROU asset obtained from operating lease liabilities upon adoption of new guidance $ — $ 4,591 Additions to ROU asset obtained from new financing lease liabilities $ 314 $ 138 As of March 31, 2021, the weighted average remaining lease term for all operating leases is 3.97 years. The weighted average discount rate associated with operating leases as of March 31, 2021 is 4.1%. The future payments due under operating leases as of March 31, 2021 is as follows (in thousands): Future payments due in the twelve months ended March 31, 2022 $ 2,696 2023 2,138 2024 1,951 2025 1,686 2026 778 Thereafter — Total undiscounted lease payments 9,249 Less effects of discounting (701) Lease liability recognized $ 8,548 On January 22, 2021, the Company exercised its option to purchase real estate in Pennsylvania that it had previously leased. As a result, the Operating Lease ROU Asset and Operating Lease Liability decreased by $0.9 million, the Company's future payments due under operating leases decreased by $1.2 million; Property, Plant and Equipment increased by $0.9 million and Notes Payable increased by $0.9 million. |
NOTES PAYABLE AND LONG-TERM DEB
NOTES PAYABLE AND LONG-TERM DEBT | 9 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE AND LONG-TERM DEBT | NOTES PAYABLE AND LONG-TERM DEBT On March 29, 2017, the Company entered into a credit agreement with a commercial bank which was subsequently amended on June 29, 2018 and on December 28, 2020 (“Credit Agreement”). The amended Credit Agreement, which expires on December 28, 2023, provides for a $14.0 million committed credit facility that can be increased to $18 million upon the Company's request. The proceeds of the Credit Agreement may be utilized as follows: (i) $6.0 million for working capital, letters of credit (up to $2.0 million) and general corporate purposes, (ii) $8.0 million for acquisitions and (iii) an additional $4 million for working capital, upon the Company's request. Indebtedness under the Credit Agreement is secured by substantially all of the Company’s assets with advances outstanding under the working capital portion of the credit facility at any time limited to a Borrowing Base (as defined in the Credit Agreement) equal to 80% of eligible accounts receivable plus the lesser of (i) 50% of eligible inventory and (ii) $3.0 million. Advances under the acquisition portion of the credit facility are limited to 75% of the purchase price of an acquired company and convert to a five-year term note at the time of the borrowing. Borrowings bear interest at the greater of (a) one-half percent or (b) the One Month ICE LIBOR plus a LIBOR Margin of 2.5%. The LIBOR Margin may increase to as high as 3.0% depending on the Company’s cash flow leverage ratio. The interest rate as of March 31, 2021 was approximately 3.0%. The Company pays a fee of 0.25% per annum on the unused amount of the committed credit facility. On August 21, 2019, certain subsidiaries of the Company entered into a Construction and Term Loan Agreement and a Master Equipment Finance Agreement with its existing commercial bank (collectively, the “Loan Agreement”). The Loan Agreement provides for a five-year, $3.2 million facility, the proceeds of which are to be utilized for expenditures to facilitate future growth at the Company’s treatment facility in Carthage, Texas (the “Texas Treatment Facility”) as follows: (i) $2.0 million for planned improvements and (ii) $1.2 million for equipment. Indebtedness under the Loan Agreement is secured by the Company’s real estate investment and equipment at the Texas Treatment Facility. Advances under the Loan Agreement mature five years from the Closing Date ("August 21, 2019") with monthly payments beginning in the month after the advancing period ends. The advancing period extended through January 15, 2021 and August 2020 for the real estate portion and the equipment portion of the Loan Agreement, respectively. Borrowings during the advancing period for the real estate portion and for the entire term of the equipment portion of the Loan Agreement bear interest computed at the One Month ICE LIBOR, plus two-hundred and fifty (250) basis points which was a rate of 2.74% on March 31, 2021. The Company has entered into a forward rate lock which fixed the rate on the real estate portion of the Loan Agreement at the expiration of the advancing period at 4.15%. On January 22 , 2021, certain wholly owned subsidiaries of the Company entered into a real estate term loan agreement (the "Real Estate Loan Agreement") with its existing commercial bank. The Real Estate Loan Agreement provides for a five-year, $0.9 million facility, the proceeds of which have been utilized to purchase the property in Pennsylvania which had previously been leased by the Company for its operations. The Real Estate Loan Agreement matures five years from January 22, 2021 with monthly payments based on a 20-year amortization and bears interest at 4.0%. On April 20, 2020, the Company received loan proceeds of $2.2 million under the Paycheck Protection Program (“PPP”) under a promissory note from its existing commercial bank (the “PPP Loan”). The PPP, established as part of the CARES Act, provides for loans to qualifying businesses for amounts up to 2.5 times the average monthly payroll expenses of the qualifying business. The loans and accrued interest may be forgivable providing that the borrower uses the loan proceeds for eligible purposes, including payroll, benefits, rent and utilities, and maintains its payroll levels. The application for these funds requires the Company to, in good faith, certify that the current economic uncertainty made the loan request necessary to support the ongoing operations of the Company. Some of the uncertainties related to the Company’s operations that are directly related to COVID-19 include, but are not limited to, the severity of the virus, the duration of the outbreak, governmental, business or other actions (which could include limitations on operations or mandates to provide products or services), impacts on the supply chain, and the effect on customer demand or changes to operations. In addition, the health of the Company’s workforce, and its ability to meet staffing needs in its route-based, treatment and distribution operations and other critical functions are uncertain and is vital to its operations. The PPP Loan certification further requires the Company to take into account our current business activity and our ability to access other sources of liquidity sufficient to support ongoing operations in a manner that is not significantly detrimental to the business. While the Company does have availability under its Credit Agreement, $8.0 million of such availability can only be used for acquisitions and the $6.0 million that is available is in place to support working capital needs, along with current cash on hand. Further, the Company has a limited market capitalization and lack of history of being able to access the capital markets and as a result, the Company believes it meets the certification requirements. The receipt of these funds, and the forgiveness of the loan attendant to these funds, is dependent on the Company having initially qualified for the loan and qualifying for the forgiveness of such loan based on our future adherence to the forgiveness criteria. The term of the Company’s PPP Loan is two years . The Company has applied for forgiveness of the PPP Loan via its existing commercial bank under the guidelines provided by the Small Business Administration ("SBA") and the Department of Treasury. The annual interest rate on the PPP Loan is 1.0% and no payments of principal or interest are due while the application for forgiveness is under review. If the application for forgiveness is denied, equal monthly payments of principal and interest will be made through the maturity date of April 2022. The PPP Loan is subject to any new guidance and new requirements released by the Department of the Treasury who has indicated that all companies that have received funds in excess of $2.0 million will be subject to a government (SBA) audit to further ensure PPP loans are limited to eligible borrowers in need. At March 31, 2021 and June 30, 2020, long-term debt consisted of the following (in thousands): March 31, 2021 June 30, 2020 Acquisition loan, monthly payments of $43; maturing March 2022 $ 560 $ 948 Equipment loan, monthly payments of $17; maturing August 2024, net of debt issuance costs of $44 879 929 Real estate loans, monthly payments of $9; maturing August 2024 and January 2026 2,830 1,103 Paycheck Protection Program loan 2,183 2,183 Total long-term debt 6,452 5,163 Less: current portion 2,836 1,658 Long-term debt, net of current portion $ 3,616 $ 3,505 The Company has availability under the Credit Agreement of $13.9 million ($5.9 million for the working capital and $8.0 million for acquisitions) as of March 31, 2021 with the option to extend the availability up to $17.9 million. The Company ha s $0.1 million in letters of credit outstanding as of March 31, 2021. The Credit and Loan Agreements contain affirmative and negative covenants that, among other things, require the Company to maintain a maximum cash flow leverage ratio of no more than 3.0 to 1.0 and a minimum debt service coverage ratio of not less than 1.15 to 1.00. The Credit and Loan Agreements also contain customary events of default which, if uncured, may terminate the agreements and require immediate repayment of all indebtedness to the lenders. The leverage ratio covenant may limit the amount available under the agreements. The Company was in compliance with all the financial covenants under the Credit and Loan Agreements as of March 31, 2021. Payments due on long-term debt subsequent to March 31, 2021 are as follows (in thousands): Twelve Months Ending March 31, 2022 $ 2,836 2023 527 2024 316 2025 316 2026 and thereafter 2,501 $ 6,496 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Stock-based compensation cost for options and restricted stock awarded to employees and directors is measured at the grant date based on the calculated fair value of the award and is recognized as an expense over the requisite service period (generally the vesting period of the equity grant). Total stock-based compensation expense for the three and nine months ended March 31, 2021 and 2020 is as follows (in thousands): Three-Months Ended March 31, Nine-Months Ended March 31, 2021 2020 2021 2020 Stock-based compensation expense included in: Cost of revenues $ — $ 1 $ — $ 4 Selling, general and administrative 530 146 832 368 Total $ 530 $ 147 $ 832 $ 372 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic earnings per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income (loss) by the weighted average number of common shares after considering the additional dilution related to common stock options and restricted stock. In computing diluted earnings per share, the outstanding common stock options are considered dilutive using the treasury stock method. The Company’s restricted stock awards are treated as outstanding for earnings per share calculations since these shares have full voting rights and are entitled to participate in dividends declared on common shares, if any, and undistributed earnings. As participating securities, the shares of restricted stock are included in the calculation of basic and diluted EPS using the two-class method. For the periods presented, the amount of earnings allocated to the participating securities was not material. The following information is necessary to calculate earnings per share for the periods presented (in thousands, except per-share amounts): Three-Months Ended March 31, Nine-Months Ended March 31, 2021 2020 2021 2020 Net income (loss) as reported $ 6,850 $ (1,556) $ 7,785 $ 100 Weighted average common shares outstanding 16,556 16,264 16,481 16,211 Effect of dilutive stock options 631 — 497 101 Weighted average diluted common shares outstanding 17,187 16,264 16,978 16,312 Net income (loss) per common share Basic $ 0.41 $ (0.10) $ 0.47 $ 0.01 Diluted $ 0.40 $ (0.10) $ 0.46 $ 0.01 Employee stock options excluded from computation of dilutive income per share amounts because their effect would be anti-dilutive — 131 — 296 |
EQUITY TRANSACTIONS
EQUITY TRANSACTIONS | 9 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
EQUITY TRANSACTIONS | EQUITY TRANSACTIONS During the three and nine months ended March 31, 2021 and 2020, respectively, stock options to purchase shares of the Company's common stock were exercised as follows: Three-Months Ended March 31, Nine-Months Ended March 31, 2021 2020 2021 2020 Options exercised 72,750 114,844 141,281 134,194 Proceeds (in thousands) $ 314 $ 518 $ 625 $ 576 Average exercise price per share $ 4.32 $ 4.51 $ 4.42 $ 4.29 As of March 31, 2021, there was $0.3 million of stock compensation expense related to non-vested awards, which is expected to be recognized over a weighted average period of 1.93 years . |
INVENTORY
INVENTORY | 9 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORY | INVENTORY The components of inventory are as follows (in thousands): March 31, 2021 June 30, 2020 Raw materials $ 1,821 $ 1,402 Finished goods 3,545 5,300 Total inventory 5,366 6,702 Less: current portion 4,378 5,638 Inventory, net of current portion $ 988 $ 1,064 The current portion of inventory includes amounts which the Company expects to sell in the next twelve month period based on historical sales. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Income Taxes | Income Taxes : Deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. A valuation allowance is established when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The establishment of valuation allowances requires significant judgment and is impacted by various estimates. Both positive and negative evidence, as well as the objectivity and verifiability of that evidence, is considered in determining the appropriateness of recording a valuation allowance on deferred tax assets. The Company has historically recorded a valuation allowance to reduce its deferred tax assets to an amount that is more likely than not to be realized. However, during the year ended June 30, 2020, the Company released the full amount of the valuation |
Accounts Receivable | Accounts Receivable: Accounts receivable consist primarily of amounts due to the Company from normal business activities. Accounts receivable balances are determined to be delinquent when the amount is past due based on the contractual terms with the customer. The Company maintains an allowance for doubtful accounts to reflect the likelihood of not collecting certain accounts receivable based on past collection history and specific risks identified among uncollected accounts. Accounts receivable are charged to the allowance for doubtful accounts when the Company determines that the receivable will not be collected and/or when the account has been referred to a third party collection agency. The Company has a history of minimal uncollectible accounts. |
Goodwill and Other Identifiable Intangible Assets | Goodwill and Other Identifiable Intangible Assets: Finite-lived intangible assets are amortized over their respective estimated useful lives and evaluated for impairment periodically whenever events or changes in circumstances indicate that their related carrying values may not be fully recoverable. Goodwill is assessed for impairment at least annually. The Company generally performs its annual goodwill impairment analysis using a quantitative approach. The quantitative goodwill impairment test identifies the existence of potential impairment by comparing the fair value of its single reporting unit with its carrying value, including goodwill. If the fair value of a reporting unit exceeds its carrying value, the reporting unit's goodwill is considered not to be impaired. If the carrying value of a reporting unit exceeds its fair value, an impairment charge is recognized in an amount equal to that excess. The impairment charge recognized is limited to the amount of goodwill present in the single reporting unit. These estimates and assumptions could have a significant impact on whether or not an impairment charge is recognized and the amount of any such charge. The Company performs its annual impairment assessment of goodwill during the fourth quarter of each fiscal year. |
Recently Issued Accounting Standards | In March 2020, guidance for applying optional expedients and exceptions to ease the potential burden in accounting for reference rate reform on financial reporting was issued. It is elective and applies to all entities, subject to meeting certain criteria, that have contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform on financial reporting. The provisions of the new guidance are effective for interim periods beginning as of March 12, 2020 through December 31, 2022. There has been no material impact on the Company's consolidated financial statements and related disclosures from the modification of its arrangements as of March 31, 2021. The Company will continue to evaluate the standard as well as additional changes, modifications or interpretations which may impact the Company. In June 2016, guidance for credit losses of financial instruments was issued, which requires entities to measure credit losses for financial assets measured at amortized cost based on expected losses rather than incurred losses. The provisions of the new guidance are effective for annual periods beginning after December 15, 2022 (effective July 1, 2023 for the Company), including interim periods within the reporting period, and early application is permitted. The Company is in the initial stages of evaluating the impact of the new guidance on its consolidated financial statements and related disclosures as well as evaluating the available transition methods. The Company will continue to evaluate the standard as well as additional changes, modifications or interpretations which may impact the Company. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Revenue by Solution | The components of revenues by solution which reflect a disaggregation of revenue by contract type are as follows (dollar amounts in thousands): Three-Months Ended March 31, 2021 % Total 2020 % Total REVENUES BY SOLUTION: Mailbacks $ 20,893 75.9 % $ 4,702 45.1 % Route-based pickup services 3,597 13.1 % 2,625 25.2 % Unused medications 2,078 7.5 % 2,111 20.3 % Third party treatment services 76 0.3 % 38 0.4 % Other (1) 884 3.2 % 938 9.0 % Total revenues $ 27,528 100.0 % $ 10,414 100.0 % Nine-Months Ended March 31, 2021 % Total 2020 % Total REVENUES BY SOLUTION: Mailbacks $ 37,507 64.9 % $ 20,383 52.8 % Route-based pickup services 10,244 17.8 % 7,762 20.1 % Unused medications 6,152 10.7 % 6,815 17.7 % Third party treatment services 390 0.7 % 123 0.3 % Other (1) 3,397 5.9 % 3,495 9.1 % Total revenues $ 57,690 100.0 % $ 38,578 100.0 % (1) The Company’s other products include IV poles, accessories, containers, asset return boxes and other miscellaneous items with single performance obligations. |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Summary of Lease Components and Other Information | During the three and nine months ended March 31, 2021 and 2020, lease cost amounts, which reflect the fixed rent expense associated with operating and financing leases, are as follows (in thousands): Three-Months Ended March 31, Nine-Months Ended March 31, 2021 2020 2021 2020 Lease cost (1) - fixed rent expense: Operating lease cost included in: Cost of revenues $ 613 $ 457 $ 1,805 $ 1,342 Selling, general and administrative 107 123 333 305 Finance lease cost included in: Cost of revenues (amortization expense) 19 3 54 9 Interest expense 4 — 12 1 Total $ 743 $ 583 $ 2,204 $ 1,657 (1) Short-term lease cost and variable lease cost were not significant during the period. During the nine months ended March 31, 2021 and 2020, the Company had the following cash and non-cash activities associated with leases (in thousands): Nine-Months Ended March 31, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflow for operating leases $ 2,080 $ 1,647 Non-cash changes to the ROU Asset and Lease Liability Additions and modifications to ROU asset obtained from new operating lease liabilities $ 2,382 $ 5,436 Additions to ROU asset obtained from operating lease liabilities upon adoption of new guidance $ — $ 4,591 Additions to ROU asset obtained from new financing lease liabilities $ 314 $ 138 |
Schedule of Maturities of Operating Lease Liabilities | The future payments due under operating leases as of March 31, 2021 is as follows (in thousands): Future payments due in the twelve months ended March 31, 2022 $ 2,696 2023 2,138 2024 1,951 2025 1,686 2026 778 Thereafter — Total undiscounted lease payments 9,249 Less effects of discounting (701) Lease liability recognized $ 8,548 |
NOTES PAYABLE AND LONG-TERM D_2
NOTES PAYABLE AND LONG-TERM DEBT (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | At March 31, 2021 and June 30, 2020, long-term debt consisted of the following (in thousands): March 31, 2021 June 30, 2020 Acquisition loan, monthly payments of $43; maturing March 2022 $ 560 $ 948 Equipment loan, monthly payments of $17; maturing August 2024, net of debt issuance costs of $44 879 929 Real estate loans, monthly payments of $9; maturing August 2024 and January 2026 2,830 1,103 Paycheck Protection Program loan 2,183 2,183 Total long-term debt 6,452 5,163 Less: current portion 2,836 1,658 Long-term debt, net of current portion $ 3,616 $ 3,505 |
Schedule of Payments Due on Long-term Debt | Payments due on long-term debt subsequent to March 31, 2021 are as follows (in thousands): Twelve Months Ending March 31, 2022 $ 2,836 2023 527 2024 316 2025 316 2026 and thereafter 2,501 $ 6,496 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock-Based Compensation | Total stock-based compensation expense for the three and nine months ended March 31, 2021 and 2020 is as follows (in thousands): Three-Months Ended March 31, Nine-Months Ended March 31, 2021 2020 2021 2020 Stock-based compensation expense included in: Cost of revenues $ — $ 1 $ — $ 4 Selling, general and administrative 530 146 832 368 Total $ 530 $ 147 $ 832 $ 372 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The following information is necessary to calculate earnings per share for the periods presented (in thousands, except per-share amounts): Three-Months Ended March 31, Nine-Months Ended March 31, 2021 2020 2021 2020 Net income (loss) as reported $ 6,850 $ (1,556) $ 7,785 $ 100 Weighted average common shares outstanding 16,556 16,264 16,481 16,211 Effect of dilutive stock options 631 — 497 101 Weighted average diluted common shares outstanding 17,187 16,264 16,978 16,312 Net income (loss) per common share Basic $ 0.41 $ (0.10) $ 0.47 $ 0.01 Diluted $ 0.40 $ (0.10) $ 0.46 $ 0.01 Employee stock options excluded from computation of dilutive income per share amounts because their effect would be anti-dilutive — 131 — 296 |
EQUITY TRANSACTIONS (Tables)
EQUITY TRANSACTIONS (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stock Option Activity | During the three and nine months ended March 31, 2021 and 2020, respectively, stock options to purchase shares of the Company's common stock were exercised as follows: Three-Months Ended March 31, Nine-Months Ended March 31, 2021 2020 2021 2020 Options exercised 72,750 114,844 141,281 134,194 Proceeds (in thousands) $ 314 $ 518 $ 625 $ 576 Average exercise price per share $ 4.32 $ 4.51 $ 4.42 $ 4.29 |
INVENTORY (Tables)
INVENTORY (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The components of inventory are as follows (in thousands): March 31, 2021 June 30, 2020 Raw materials $ 1,821 $ 1,402 Finished goods 3,545 5,300 Total inventory 5,366 6,702 Less: current portion 4,378 5,638 Inventory, net of current portion $ 988 $ 1,064 |
ORGANIZATION AND BACKGROUND (De
ORGANIZATION AND BACKGROUND (Details) | 9 Months Ended |
Mar. 31, 2021state_region | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of route-based pick-up services in state region | 37 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - Summary of Revenue by Solution (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 27,528 | $ 10,414 | $ 57,690 | $ 38,578 |
Revenue percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Mailbacks | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 20,893 | $ 4,702 | $ 37,507 | $ 20,383 |
Revenue percentage | 75.90% | 45.10% | 64.90% | 52.80% |
Route-based pickup services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 3,597 | $ 2,625 | $ 10,244 | $ 7,762 |
Revenue percentage | 13.10% | 25.20% | 17.80% | 20.10% |
Unused medications | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 2,078 | $ 2,111 | $ 6,152 | $ 6,815 |
Revenue percentage | 7.50% | 20.30% | 10.70% | 17.70% |
Third party treatment services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 76 | $ 38 | $ 390 | $ 123 |
Revenue percentage | 0.30% | 0.40% | 0.70% | 0.30% |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 884 | $ 938 | $ 3,397 | $ 3,495 |
Revenue percentage | 3.20% | 9.00% | 5.90% | 9.10% |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | |
Accounting Policies [Abstract] | ||||||
Billings recorded from inventory builds | $ 300,000 | $ 500,000 | $ 3,800,000 | $ 2,900,000 | ||
Solutions sold that were held in vendor managed inventory | $ 3,900,000 | $ 3,900,000 | $ 2,800,000 | |||
Contract with customer, liability, performance obligation, cash consideration exceeds transaction price | 300,000 | $ 2,400,000 | ||||
Goodwill impairment | $ 0 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 23.70% | 3.40% | 23.80% | 47.60% |
State and local income taxes, percent | 5.00% |
LEASES - Components of Net Leas
LEASES - Components of Net Lease (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Lessee, Lease, Description [Line Items] | ||||
Cost of revenues (amortization expense) | $ 19 | $ 3 | $ 54 | $ 9 |
Interest expense | 4 | 0 | 12 | 1 |
Total | $ 743 | 583 | 2,204 | 1,657 |
Operating cash outflow for operating leases | 2,080 | 1,647 | ||
Non-cash changes to the ROU Asset and Lease Liability | 2,382 | 5,436 | ||
Additions to ROU asset obtained from new financing lease liabilities | $ 314 | 138 | ||
Weighted average remaining lease term, operating leases | 3 years 11 months 19 days | 3 years 11 months 19 days | ||
Weighted average discount rate, operating leases | 4.10% | 4.10% | ||
ASU 2016-02 | ||||
Lessee, Lease, Description [Line Items] | ||||
Non-cash changes to the ROU Asset and Lease Liability | $ 0 | 4,591 | ||
Cost of revenues | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease cost | $ 613 | 457 | 1,805 | 1,342 |
Selling, general and administrative | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease cost | $ 107 | $ 123 | $ 333 | $ 305 |
LEASES - Maturities of Operatin
LEASES - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Jan. 22, 2021 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2022 | $ 2,696 | |
2023 | 2,138 | |
2024 | 1,951 | |
2025 | 1,686 | |
2026 | 778 | |
Thereafter | 0 | |
Total undiscounted lease payments | 9,249 | |
Less interest | (701) | |
Present value of lease liabilities | $ 8,548 | |
Pennsylvania | Real estate | ||
Lessee, Lease, Description [Line Items] | ||
Reduction of operating lease, ROU asset | $ 900 | |
Reduction of operating lease liability | 900 | |
Reduction of future payments under operating lease | 1,200 | |
Increase in plant and equipment | 900 | |
Increase in notes payable | $ 900 |
NOTES PAYABLE AND LONG-TERM D_3
NOTES PAYABLE AND LONG-TERM DEBT - Narrative (Details) - USD ($) | Jan. 21, 2021 | Apr. 20, 2020 | Aug. 21, 2019 | Jun. 29, 2018 | Mar. 31, 2021 | Jan. 22, 2021 | Dec. 28, 2020 |
Letter of Credit | |||||||
Line of Credit Facility [Line Items] | |||||||
Amount outstanding | $ 100,000 | ||||||
Credit Agreement | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity | $ 14,000,000 | ||||||
Percentage of eligible accounts receivable considered for borrowing base | 80.00% | ||||||
Percentage of eligible inventory considered for borrowing base | 50.00% | ||||||
Borrowing base, monetary benchmark | $ 3,000,000 | ||||||
Basis spread of variable rate | 50.00% | ||||||
Interest rate | 3.00% | ||||||
Unused capacity, commitment fee percentage | 0.25% | ||||||
Remaining borrowing capacity | $ 13,900,000 | ||||||
Maximum borrowing capacity, option | 17,900,000 | ||||||
Credit Agreement | Working Capital | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity | $ 6,000,000 | ||||||
Remaining borrowing capacity | $ 6,000,000 | 5,900,000 | |||||
Credit Agreement | Business Acquisitions | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity | $ 8,000,000 | ||||||
Percentage of portion allocated to acquisition purchase price | 75.00% | ||||||
Remaining borrowing capacity | 8,000,000 | $ 8,000,000 | |||||
Credit Agreement | Additional Working Capital | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity | $ 4,000,000 | ||||||
Credit Agreement | Maximum | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt cash flow leverage ratio | 3 | ||||||
Credit Agreement | Minimum | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt service coverage ratio | 1.15 | ||||||
Credit Agreement | Term Loan | |||||||
Line of Credit Facility [Line Items] | |||||||
Maturity period | 5 years | ||||||
Credit Agreement | Letter of Credit | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity | $ 2,000,000 | ||||||
Credit Agreement | LIBOR | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread of variable rate | 2.50% | ||||||
Debt instrument, term of variable rate | 1 month | ||||||
Credit Agreement | LIBOR | Maximum | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread of variable rate | 3.00% | ||||||
Credit Agreement Amendment | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity | $ 18,000,000 | ||||||
Loan Agreement | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity | $ 3,200,000 | ||||||
Interest rate | 2.74% | ||||||
Interest rate at expiration of advancing period | 4.15% | ||||||
Loan Agreement | Real Estate | |||||||
Line of Credit Facility [Line Items] | |||||||
Remaining borrowing capacity | 2,000,000 | ||||||
Loan Agreement | Equipment | |||||||
Line of Credit Facility [Line Items] | |||||||
Remaining borrowing capacity | $ 1,200,000 | ||||||
Loan Agreement | Term Loan | |||||||
Line of Credit Facility [Line Items] | |||||||
Maturity period | 5 years | ||||||
Loan Agreement | LIBOR | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread of variable rate | 2.50% | ||||||
Debt instrument, term of variable rate | 1 month | ||||||
Real Estate Loan Agreement | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity | $ 900,000 | ||||||
Maturity period | 5 years | ||||||
Amortization period | 20 years | ||||||
Interest rate | 4.00% | ||||||
Payment Protection Program loan | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument, face amount | $ 2,200,000 | ||||||
Payment Protection Program loan | Term Loan | |||||||
Line of Credit Facility [Line Items] | |||||||
Maturity period | 2 years |
NOTES PAYABLE AND LONG-TERM D_4
NOTES PAYABLE AND LONG-TERM DEBT - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2021 | Jun. 30, 2020 | |
Debt Instrument [Line Items] | ||
Total long-term debt | $ 6,452 | $ 5,163 |
Less: current portion | 2,836 | 1,658 |
Long-term debt, net of current portion | 3,616 | 3,505 |
Term Loan | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 6,496 | |
Acquisition loan | Term Loan | ||
Debt Instrument [Line Items] | ||
Monthly payments | 43 | |
Total long-term debt | 560 | 948 |
Equipment loan | Term Loan | ||
Debt Instrument [Line Items] | ||
Monthly payments | 17 | |
Debt issuance costs, net | 44 | |
Total long-term debt | 879 | 929 |
Real estate loan | Term Loan | ||
Debt Instrument [Line Items] | ||
Monthly payments | 9 | |
Total long-term debt | 2,830 | 1,103 |
Payment Protection Program loan | Term Loan | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 2,183 | $ 2,183 |
NOTES PAYABLE AND LONG-TERM D_5
NOTES PAYABLE AND LONG-TERM DEBT - Schedule of Payments Due on Long-term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
Total long-term debt | $ 6,452 | $ 5,163 |
Term Loan | ||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2022 | 2,836 | |
2023 | 527 | |
2024 | 316 | |
2025 | 316 | |
2026 and thereafter | 2,501 | |
Total long-term debt | $ 6,496 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation | $ 530 | $ 147 | $ 832 | $ 372 |
Cost of revenues | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation | 0 | 1 | 0 | 4 |
Selling, general and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation | $ 530 | $ 146 | $ 832 | $ 368 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) as reported | $ 6,850 | $ (1,556) | $ 7,785 | $ 100 |
Weighted average common shares outstanding | 16,556 | 16,264 | 16,481 | 16,211 |
Effect of dilutive stock options (in shares) | 631 | 0 | 497 | 101 |
Weighted average diluted common shares outstanding | 17,187 | 16,264 | 16,978 | 16,312 |
Net income (loss) per common share | ||||
Basic (in dollars per share) | $ 0.41 | $ (0.10) | $ 0.47 | $ 0.01 |
Diluted (in dollars per share) | $ 0.40 | $ (0.10) | $ 0.46 | $ 0.01 |
Employee stock options excluded from computation of dilutive income per share amounts because their effect would be anti-dilutive (in shares) | 0 | 131 | 0 | 296 |
EQUITY TRANSACTIONS (Details)
EQUITY TRANSACTIONS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Stockholders' Equity Note [Abstract] | ||||
Options exercised (in shares) | 72,750 | 114,844 | 141,281 | 134,194 |
Proceeds | $ 314 | $ 518 | $ 625 | $ 576 |
Average exercise price per share (in dollars per share) | $ 4.32 | $ 4.51 | $ 4.42 | $ 4.29 |
Compensation expense related to non-vested awards | $ 300 | $ 300 | ||
Weighted average period | 1 year 11 months 4 days |
INVENTORY - Schedule of Invento
INVENTORY - Schedule of Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
Components of inventory [Abstract] | ||
Raw materials | $ 1,821 | $ 1,402 |
Finished goods | 3,545 | 5,300 |
Total inventory | 5,366 | 6,702 |
Less: current portion | 4,378 | 5,638 |
Inventory, net of current portion | $ 988 | $ 1,064 |