Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Sep. 30, 2015 | Nov. 02, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | MOTORCAR PARTS AMERICA INC | |
Entity Central Index Key | 918,251 | |
Current Fiscal Year End Date | --03-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 18,315,871 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2015 | Mar. 31, 2015 | |
Current assets: | |||
Cash and cash equivalents | $ 31,698,000 | $ 61,230,000 | |
Short -term investments | 1,339,000 | 699,000 | |
Accounts receivable - net | 899,000 | 24,799,000 | |
Inventory - net | 53,973,000 | 56,829,000 | |
Inventory unreturned | 10,641,000 | 7,833,000 | |
Deferred income taxes | 23,219,000 | 22,998,000 | |
Prepaid expenses and other current assets | 11,265,000 | 7,407,000 | |
Total current assets | 133,034,000 | 181,795,000 | |
Plant and equipment - net | 15,360,000 | 12,535,000 | |
Long-term core inventory - net (Note 5) | 231,382,000 | 188,950,000 | |
Long-term core inventory deposits (Note 5) | [1] | 5,569,000 | 31,571,000 |
Long-term deferred income taxes | 238,000 | 261,000 | |
Goodwill | 2,552,000 | 0 | |
Intangible assets - net | 4,863,000 | 2,574,000 | |
Other assets | 3,418,000 | 3,195,000 | |
TOTAL ASSETS | 396,416,000 | 420,881,000 | |
Current liabilities: | |||
Accounts payable | 69,648,000 | 61,893,000 | |
Accrued liabilities | 16,948,000 | 10,096,000 | |
Customer finished goods returns accrual | 19,205,000 | 19,678,000 | |
Accrued core payment | 8,916,000 | 13,190,000 | |
Revolving loan | 15,000,000 | 0 | |
Other current liabilities | 3,748,000 | 2,471,000 | |
Current portion of term loan | 3,070,000 | 7,733,000 | |
Total current liabilities | 136,535,000 | 115,061,000 | |
Term loan, less current portion | 21,517,000 | 71,489,000 | |
Long-term accrued core payment | 22,024,000 | 23,880,000 | |
Other liabilities | 21,400,000 | 20,248,000 | |
Total liabilities | $ 201,476,000 | $ 230,678,000 | |
Commitments and contingencies | |||
Preferred stock | $ 0 | $ 0 | |
Common stock; par value $.01 per share, 50,000,000 shares authorized; 18,315,871 and 17,974,598 shares issued and outstanding at September 30, 2015 and March 31, 2015, respectively | 183,000 | 180,000 | |
Additional paid-in capital | 197,327,000 | 191,279,000 | |
Accumulated other comprehensive loss | (4,350,000) | (2,518,000) | |
Retained earnings | 1,780,000 | 1,262,000 | |
Total shareholders' equity | 194,940,000 | 190,203,000 | |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 396,416,000 | 420,881,000 | |
Series A junior participating preferred stock [Member] | |||
Preferred stock | $ 0 | $ 0 | |
[1] | During the three months ended September 30, 2015, the Company completed the core buy-back program with one of its largest customers. As a result of the completion of this buy-back program and related long-term core inventory reconciliations, $25,805,000 from the long-term core inventory deposits account was transferred to the remanufactured cores held at customers' locations account within long-term core inventory. At March 31, 2015, $26,002,000 of remanufactured cores in connection with this core buy-back program was included in long-term core inventory deposits. |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2015 | Mar. 31, 2015 |
Shareholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, issued (in shares) | 18,315,871 | 17,974,598 |
Common stock, outstanding (in shares) | 18,315,871 | 17,974,598 |
Series A Junior Participating Preferred Stock [Member] | ||
Shareholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 20,000 | 20,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Consolidated Statements of Income (Unaudited) [Abstract] | ||||
Net sales | $ 91,670,000 | $ 70,840,000 | $ 177,505,000 | $ 133,815,000 |
Cost of goods sold | 69,850,000 | 52,420,000 | 129,694,000 | 97,579,000 |
Gross profit | 21,820,000 | 18,420,000 | 47,811,000 | 36,236,000 |
Operating expenses: | ||||
General and administrative | 18,219,000 | 9,812,000 | 29,579,000 | 15,204,000 |
Sales and marketing | 2,632,000 | 1,837,000 | 4,912,000 | 3,663,000 |
Research and development | 646,000 | 539,000 | 1,382,000 | 1,061,000 |
Total operating expenses | 21,497,000 | 12,188,000 | 35,873,000 | 19,928,000 |
Operating income | 323,000 | 6,232,000 | 11,938,000 | 16,308,000 |
Interest expense, net | 2,613,000 | 3,339,000 | 11,050,000 | 6,752,000 |
(Loss) income before income tax (benefit) expense | (2,290,000) | 2,893,000 | 888,000 | 9,556,000 |
Income tax (benefit) expense | (898,000) | 1,418,000 | 370,000 | 4,132,000 |
Net (loss) income | $ (1,392,000) | $ 1,475,000 | $ 518,000 | $ 5,424,000 |
Basic net (loss) income per share (in dollars per share) | $ (0.08) | $ 0.09 | $ 0.03 | $ 0.35 |
Diluted net (loss) income per share (in dollars per share) | $ (0.08) | $ 0.09 | $ 0.03 | $ 0.33 |
Weighted average number of shares outstanding: | ||||
Basic (in shares) | 18,215,783 | 15,975,437 | 18,109,912 | 15,531,566 |
Diluted (in shares) | 18,215,783 | 16,826,427 | 18,887,153 | 16,372,726 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Consolidated Statements of Comprehensive (Loss) Income (Unaudited) [Abstract] | ||||
Net (loss) income | $ (1,392,000) | $ 1,475,000 | $ 518,000 | $ 5,424,000 |
Other comprehensive (loss) income, net of tax: | ||||
Unrealized (loss) gain on short-term investments (net of tax of $(36,000), $(2,000), $(40,000), and $5,000) | (53,000) | (3,000) | (59,000) | 7,000 |
Foreign currency translation loss | (1,424,000) | (513,000) | (1,773,000) | (468,000) |
Total other comprehensive loss, net of tax | (1,477,000) | (516,000) | (1,832,000) | (461,000) |
Comprehensive (loss) income | $ (2,869,000) | $ 959,000 | $ (1,314,000) | $ 4,963,000 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive (Loss) Income (Unaudited) (Parenthetical) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Other comprehensive (loss) income, net of tax: | ||||
Unrealized (loss) gain on short-term investments, tax | $ (36,000) | $ (2,000) | $ (40,000) | $ 5,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 518,000 | $ 5,424,000 |
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities: | ||
Depreciation | 1,100,000 | 898,000 |
Amortization of intangible assets | 331,000 | 350,000 |
Amortization of debt issuance costs | 482,000 | 847,000 |
Write-off of debt issuance costs | 5,108,000 | 0 |
Amortization of interest on accrued core payments | 385,000 | 0 |
Loss due to change in fair value measurements using significant unobservable inputs | 1,762,000 | 275,000 |
Provision for inventory reserves | 2,362,000 | 895,000 |
Net recovery of customer payment discrepancies | (90,000) | (406,000) |
Net recovery of doubtful accounts | (83,000) | (23,000) |
Deferred income taxes | (2,877,000) | (514,000) |
Share-based compensation expense | 1,033,000 | 1,098,000 |
Loss on disposals of plant and equipment | 0 | 1,000 |
Changes in current assets and liabilities: | ||
Accounts receivable | 16,573,000 | 21,286,000 |
Inventory | 7,641,000 | (1,328,000) |
Inventory unreturned | (2,808,000) | (626,000) |
Prepaid expenses and other current assets | (2,475,000) | 554,000 |
Other assets | (239,000) | (161,000) |
Accounts payable and accrued liabilities | 12,403,000 | (4,428,000) |
Customer finished goods returns accrual | (473,000) | (772,000) |
Deferred core revenue | 0 | 102,000 |
Long-term core inventory | (42,045,000) | (12,889,000) |
Long-term core inventory deposits | 26,002,000 | (462,000) |
Accrued core payment | (6,515,000) | 0 |
Other liabilities | 1,082,000 | 2,472,000 |
Net cash provided by operating activities | 19,177,000 | 12,593,000 |
Cash flows from investing activities: | ||
Purchase of plant and equipment | (2,730,000) | (1,217,000) |
Purchase of business | (3,200,000) | 0 |
Change in short term investments | (739,000) | (64,000) |
Net cash used in investing activities | (6,669,000) | (1,281,000) |
Cash flows from financing activities: | ||
Repayment of revolving loan | 0 | (10,000,000) |
Borrowings under revolving loan | 15,000,000 | 0 |
Borrowings under term loan | 25,000,000 | 0 |
Repayments of term loan | (84,500,000) | (4,200,000) |
Payments for debt issuance costs | (2,212,000) | 0 |
Payments on capital lease obligations | (164,000) | (31,000) |
Exercise of stock options | 2,956,000 | 714,000 |
Excess tax benefit related to share-based compensation | 2,975,000 | 490,000 |
Cash used to net share settle equity awards | (913,000) | (806,000) |
Proceeds from issuance of common stock | 0 | 71,760,000 |
Stock issuance costs | 0 | (4,785,000) |
Net cash (used in) provided by financing activities | (41,858,000) | 53,142,000 |
Effect of exchange rate changes on cash and cash equivalents | (182,000) | (8,000) |
Net (decrease) increase in cash and cash equivalents | (29,532,000) | 64,446,000 |
Cash and cash equivalents - Beginning of period | 61,230,000 | 24,599,000 |
Cash and cash equivalents - End of period | 31,698,000 | 89,045,000 |
Cash paid during the period for: | ||
Interest, net | 5,214,000 | 5,954,000 |
Income taxes, net of refunds | 2,472,000 | 460,000 |
Non-cash investing and financing activities: | ||
Property acquired under capital lease | 1,569,000 | 4,000 |
Contingent consideration | $ 1,320,000 | $ 0 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Sep. 30, 2015 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended September 30, 2015 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2016. This report should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the fiscal year ended March 31, 2015, which are included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on June 15, 2015, as amended by the Form 10-K/A filed with the SEC on July 29, 2015. The accompanying consolidated financial statements have been prepared on a consistent basis with, and there have been no material changes to, except as noted below, the accounting policies described in Note 2, Summary of Significant Accounting Policies, to the consolidated financial statements that are presented in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2015. Recently Adopted Accounting Standards Debt Issuance Costs In April 2015, the Financial Accounting Standards Board (the “FASB”) issued guidance that requires debt issuance costs related to a recognized liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. In August 2015, the FASB issued guidance to clarify that an entity may elect to present debt issuance costs related to a line-of-credit arrangement as an asset, regardless of whether or not there are any outstanding borrowings on the line-of-credit arrangement. This guidance is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim period within those fiscal years. Early adoption of this guidance is permitted for financial statements that have not been previously issued. The Company adopted this guidance effective June 30, 2015, which resulted in the reclassification of debt issuance costs of $879,000 from other assets and is now presented as a direct deduction of $110,000 to the current portion of the term loan and $769,000 to the noncurrent portion of the term loan in the previously reported consolidated balance sheet at March 31, 2015. The Company elected to continue presenting debt issuance costs related to its revolving credit facilities as an asset. Discontinued Operations In April 2014, the FASB issued guidance on reporting discontinued operations. The new guidance changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. Under the new guidance, a discontinued operation is defined as a disposal of a component or group of components that is disposed of or is classified as held for sale and represents a strategic shift that has or will have a major effect on an entity’s operations and financial results. The guidance applies prospectively to new disposals and new classifications of disposal groups as held for sale after the effective date. The standard is required to be adopted by public business entities in annual periods beginning on or after December 15, 2014, and interim periods within those annual periods. The adoption of this guidance did not have any impact on the Company’s financial position, results of operations or cash flows. Business Combinations In September 2015, the FASB issued guidance simplifying the accounting for measurement-period adjustments. The guidance requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined, including the cumulative effect of the change in provisional amount as if the accounting had been completed at the acquisition date. The adjustments related to previous reporting periods since the acquisition date must be disclosed by income statement line item either on the face of the income statement or in the notes. This guidance is effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years and earlier adoption is permitted for financial statements that have not been issued. The Company adopted this guidance effective September 30, 2015, which resulted in no material effect on the Company’s financial position, results of operations, or cash flows (see Note 2). |
Company Background and Organiza
Company Background and Organization | 6 Months Ended |
Sep. 30, 2015 | |
Company Background and Organization [Abstract] | |
Company Background and Organization | 1. Motorcar Parts of America, Inc. and its subsidiaries (the “Company”, or “MPA”) is a leading manufacturer, remanufacturer, and distributor of aftermarket automotive parts. These replacement parts are sold for use on vehicles after initial vehicle purchase. These automotive parts are sold to automotive retail chain stores and warehouse distributors throughout North America and to major automobile manufacturers for both their aftermarket programs and warranty replacement programs (“OES”). The Company’s products include (i) rotating electrical products such as alternators and starters, (ii) wheel hub assemblies and bearings, and (iii) new brake master cylinders. In July 2015, the Company also began selling remanufactured brake master cylinder products. The Company obtains used automotive parts, commonly known as Used Cores, primarily from its customers under the Company’s core exchange program. It also purchases Used Cores from vendors (core brokers). The customers grant credit to the consumer when the used part is returned to them, and the Company in turn provides a credit to the customers upon return to the Company. These Used Cores are an essential material needed for the remanufacturing operations. The Company has remanufacturing, warehousing and shipping/receiving operations for automotive parts in North America and Asia. In addition, the Company utilizes various third party warehouse distribution centers in North America. Pursuant to the guidance provided under the FASB Accounting Standards Codification (“ASC”), for segment reporting the Company has determined that its operating segments meet the criteria for aggregation and accordingly the Company has one reportable segment for purposes of recording and reporting its financial results. |
Acquisition
Acquisition | 6 Months Ended |
Sep. 30, 2015 | |
Acquisition [Abstract] | |
Acquisition | 2. On May 20, 2015, the Company completed the acquisition of certain assets and liabilities of OE Plus, Ltd. (“OE Plus”), a privately held remanufacturer of alternators and starters based in North Dighton, Massachusetts. The acquisition was consummated pursuant to an asset purchase agreement dated May 15, 2015 for an initial cash purchase price of $3,200,000, including $1,000,000 which is being held in escrow to be paid to the former owners of OE Plus, subject to certain working capital adjustments. In addition, the Company is contingently obligated to make additional payments to the former owners of OE Plus up to $2,000,000 over the next four years. The estimated fair value of the contingent consideration obligation as of the acquisition date was $1,320,000 and was determined using an option based pricing model. The assets and results of operations of OE Plus were not significant to the Company’s consolidated financial position or results of operations, and thus pro forma information is not presented. During the three months ended September 30, 2015, the Company made preliminary working capital adjustments of approximately $500,000 which resulted in adjustments to finite-lived intangible assets for trademarks with an estimated useful life of 10 years to $520,000 from $635,000 and finite-lived intangible assets for customer relationships with an estimated useful life of 8 years to $2,100,000 from $2,690,000 resulting in a corresponding increase in goodwill to $2,552,000 from $1,847,000. The goodwill recognized will be further adjusted once the working capital adjustments are final and the escrow settlement is completed. There was no material effect on previous-period or current-period earnings as a result of these adjustments. Goodwill is the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. Goodwill is not amortized, but rather is tested for impairment at least annually or more frequently if there are indicators of impairment present. The Company performs the annual goodwill impairment analysis in the fourth quarter of each fiscal year. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Sep. 30, 2015 | |
Intangible Assets [Abstract] | |
Intangible Assets | 3. The following is a summary of acquired intangible assets subject to amortization: September 30, 2015 March 31, 2015 Weighted Average Amortization Period Gross Carrying Value Accumulated Amortization Gross Carrying Value Accumulated Amortization Intangible assets subject to amortization Trademarks 11 years $ 705,000 $ 95,000 $ 397,000 $ 278,000 Customer relationships 13 years 5,900,000 1,647,000 6,211,000 3,756,000 Total $ 6,605,000 $ 1,742,000 $ 6,608,000 $ 4,034,000 Amortization expense for acquired intangible assets is as follows: Three Months Ended Six Months Ended 2015 2014 2015 2014 Amortization expense $ 157,000 $ 170,000 $ 331,000 $ 350,000 The estimated future amortization expense for acquired intangible assets subject to amortization is as follows: Year Ending March 31, 2016 - remaining six months $ 291,000 2017 580,000 2018 580,000 2019 580,000 2020 580,000 Thereafter 2,252,000 Total $ 4,863,000 |
Accounts Receivable - Net
Accounts Receivable - Net | 6 Months Ended |
Sep. 30, 2015 | |
Accounts Receivable - Net [Abstract] | |
Accounts Receivable - Net | 4. Included in accounts receivable — net are significant offset accounts related to customer allowances earned, customer payment discrepancies, returned goods authorizations (“RGA”) issued for in-transit unit returns, estimated future credits to be provided for Used Cores returned by the customers and potential bad debts. Due to the forward looking nature and the different aging periods of certain estimated offset accounts, the offset accounts may not, at any point in time, directly relate to the balances in the accounts receivable-trade account. Accounts receivable — net is comprised of the following: September 30, 2015 March 31, 2015 Accounts receivable — trade $ 57,213,000 $ 62,171,000 Allowance for bad debts (537,000 ) (629,000 ) Customer allowances earned (10,254,000 ) (7,221,000 ) Customer payment discrepancies (824,000 ) (852,000 ) Customer returns RGA issued (14,662,000 ) (7,029,000 ) Customer core returns accruals (30,037,000 ) (21,641,000 ) Less: total accounts receivable offset accounts (56,314,000 ) (37,372,000 ) Total accounts receivable — net $ 899,000 $ 24,799,000 |
Inventory
Inventory | 6 Months Ended |
Sep. 30, 2015 | |
Inventory [Abstract] | |
Inventory | 5. Inventory is comprised of the following: September 30, 2015 March 31, 2015 Non-core inventory Raw materials $ 17,407,000 $ 18,836,000 Work-in-process 557,000 255,000 Finished goods 38,200,000 39,828,000 56,164,000 58,919,000 Less allowance for excess and obsolete inventory (2,191,000 ) (2,090,000 ) Total $ 53,973,000 $ 56,829,000 Inventory unreturned $ 10,641,000 $ 7,833,000 Long-term core inventory Used cores held at the Company's facilities $ 38,044,000 $ 27,417,000 Used cores expected to be returned by customers 10,382,000 9,799,000 Remanufactured cores held in finished goods 19,881,000 21,557,000 Remanufactured cores held at customers' locations (1) 164,313,000 130,762,000 232,620,000 189,535,000 Less allowance for excess and obsolete inventory (1,238,000 ) (585,000 ) Total $ 231,382,000 $ 188,950,000 Long-term core inventory deposits (1) $ 5,569,000 $ 31,571,000 (1) During the three months ended September 30, 2015, the Company completed the core buy-back program with one of its largest customers. As a result of the completion of this buy-back program and related long-term core inventory reconciliations, $25,805,000 from the long-term core inventory deposits account was transferred to the remanufactured cores held at customers’ locations account within long-term core inventory. At March 31, 2015, $26,002,000 of remanufactured cores in connection with this core buy-back program was included in long-term core inventory deposits. |
Major Customers
Major Customers | 6 Months Ended |
Sep. 30, 2015 | |
Major Customers [Abstract] | |
Major Customers | 6. The Company’s largest customers accounted for the following total percentage of net sales: Three Months Ended September 30, Six Months Ended September 30, Sales 2015 2014 2015 2014 Customer A 46 % 53 % 48 % 53 % Customer B 21 % 21 % 20 % 22 % Customer C 21 % 7 % 19 % 6 % The Company’s largest customers accounted for the following total percentage of accounts receivable—trade: Accounts receivable - trade September 30, 2015 March 31, 2015 Customer A 35 % 48 % Customer B 21 % 16 % Customer C 14 % 12 % The Company had no suppliers that accounted for more than 10% of inventory purchases for the three and six months ended September 30, 2015. The Company’s largest supplier accounted for 15% and 14% of inventory purchases for the three and six months ended September 30, 2014, respectively. |
Debt
Debt | 6 Months Ended |
Sep. 30, 2015 | |
Debt [Abstract] | |
Debt | 7. The Company has the following credit agreements. Credit Facility The Company was party to a financing agreement (as amended, modified, amended and restated or supplemented, the “Financing Agreement”) with a syndicate of lenders party thereto, Cerberus Business Finance, LLC, as collateral agent, and PNC Bank, National Association, as administrative agent. The Financing Agreement was comprised of (i) a $95,000,000 term loan facility (the “Term Loans”) and (ii) an up to $40,000,000 revolving credit facility subject to borrowing base restrictions and a $10,000,000 sublimit for letters of credit (the “Revolving Facility”). The interest rate on the Company’s Term Loans using the LIBOR option was 6.75% at March 31, 2015. The obligations under the Financing Agreement were repaid on June 3, 2015. The repayment of the Term Loans was accounted for as extinguishment of debt and as a result, the Company wrote off $5,108,000 of previously deferred debt issuance costs associated with the Term Loans. On June 3, 2015, the Company entered into a new $125,000,000 senior secured financing (the “Credit Facility”) with the lenders party thereto, and PNC Bank, National Association, as administrative agent, consisting of (i) a $100,000,000 revolving loan facility, subject to borrowing base restrictions and a $15,000,000 sublimit for letters of credit (the “New Revolving Facility”) and (ii) a $25,000,000 term loan facility (the “New Term Loans”). The loans under the Credit Facility mature on June 3, 2020. In connection with the Credit Facility, the lenders were granted a security interest in substantially all of the assets of the Company. The Company capitalized $2,212,000 of new debt issuance costs, allocated between the New Revolving Facility and the New Term Loans. In November 2015, the Company entered into a consent and first amendment to the Credit Facility (the “First Amendment”) which (i) provided consent for the Company to enter into the litigation settlement agreement with M&T Bank and the trustee in the bankruptcy cases relating to the discontinued subsidiaries and (ii) amended certain terms and provisions of the Credit Facility. The New Term Loans require quarterly principal payments of $781,250 beginning October 1, 2015. The New Revolving Facility and New Term Loans made under the Credit Facility bear interest at rates equal to either LIBOR plus a margin of 2.50%, 2.75% or 3.00% or a reference rate plus a margin of 1.50%, 1.75% or 2.00%, in each case depending on the total leverage ratio as of the applicable measurement date. There is also a facility fee of 0.25% to 0.375%, depending on the total leverage ratio as of the applicable measurement date. The interest rate on the Company’s New Revolving Facility and New Term Loans was 2.95% using the LIBOR option at September 30, 2015. The Credit Facility, among other things, requires the Company to maintain certain financial covenants including a maximum total leverage ratio and a minimum fixed charge coverage ratio. The Company was in compliance with all financial covenants as of September 30, 2015. The following summarizes information about the Company’s term loans at: September 30, 2015 March 31, 2015 Principal amount of term loan $ 25,000,000 $ 84,500,000 Unamortized debt issuance costs (413,000 ) (5,278,000 ) Net carrying amount of term loan 24,587,000 79,222,000 Less current portion of term loan (3,070,000 ) (7,733,000 ) Long-term portion of term loan $ 21,517,000 $ 71,489,000 Future repayments of the Company’s New Term Loans, by fiscal year, are as follows: Year Ending March 31, 2016 - remaining six months $ 1,563,000 2017 3,125,000 2018 3,125,000 2019 3,125,000 2020 3,125,000 Thereafter 10,937,000 Total payments $ 25,000,000 At September 30, 2015, the Company had $15,000,000 of revolving loans outstanding under the New Revolving Facility. In addition, $430,000 was reserved for standby letters of credit for workers’ compensation insurance and $1,980,000 for commercial letters of credit at September 30, 2015. The Company had no outstanding balance under the Revolving Facility at March 31, 2015. At September 30, 2015, $82,590,000, subject to certain adjustments, was available under the New Revolving Facility. WX Agreement In August 2012, the Company entered into a Revolving Credit/Strategic Cooperation Agreement (the “WX Agreement”) with Wanxiang America Corporation (the “Supplier”) and the discontinued subsidiaries. In connection with the WX Agreement, the Company also issued a warrant (the “Supplier Warrant”) to the Supplier to purchase up to 516,129 shares of the Company’s common stock for an initial exercise price of $7.75 per share exercisable at any time after August 22, 2014 and on or prior to September 30, 2017. The exercise price is subject to adjustments, among other things, for sales of common stock by the Company at a price below the exercise price. The fair value of the Supplier Warrant using level 3 inputs and the Monte Carlo simulation model was $12,248,000 and $10,506,000 at September 30, 2015 and March 31, 2015, respectively. This amount is recorded as a warrant liability which is included in other liabilities in the consolidated balance sheets. During the three months ended September 30, 2015 and 2014, losses of $600,000 and $1,389,000, respectively, were recorded in general and administrative expenses due to the change in the fair value of this warrant liability. During the six months ended September 30, 2015 and 2014, losses of $1,742,000 and $275,000, respectively, were recorded in general and administrative expenses due to the change in the fair value of this warrant liability. |
Accounts Receivable Discount Pr
Accounts Receivable Discount Programs | 6 Months Ended |
Sep. 30, 2015 | |
Accounts Receivable Discount Programs [Abstract] | |
Accounts Receivable Discount Programs | 8. The Company uses receivable discount programs with certain customers and their respective banks. Under these programs, the Company may sell those customers’ receivables to those banks at a discount to be agreed upon at the time the receivables are sold. These discount arrangements allow the Company to accelerate collection of customers’ receivables. The following is a summary of the Company’s accounts receivable discount programs: Six Months Ended September 30, 2015 2014 Receivables discounted $ 167,905,000 $ 136,326,000 Weighted average days 342 336 Annualized weighted average discount rate 2.2 % 2.0 % Amount of discount as interest expense $ 3,452,000 $ 2,542,000 |
Net (Loss) Income Per Share
Net (Loss) Income Per Share | 6 Months Ended |
Sep. 30, 2015 | |
Net (Loss) Income Per Share [Abstract] | |
Net (Loss) Income Per Share | 9. Basic net (loss) income per share is computed by dividing net (loss) income by the weighted average number of shares of common stock outstanding during the period. Diluted net (loss) income per share includes the effect, if any, from the potential exercise or conversion of securities, such as stock options and warrants, which would result in the issuance of incremental shares of common stock. The following presents a reconciliation of basic and diluted net (loss) income per share: Three Months Ended September 30, Six Months Ended September 30, 2015 2014 2015 2014 Net (loss) income $ (1,392,000 ) $ 1,475,000 $ 518,000 $ 5,424,000 Basic shares 18,215,783 15,975,437 18,109,912 15,531,566 Effect of potentially dilutive securities - 850,990 777,241 841,160 Diluted shares 18,215,783 16,826,427 18,887,153 16,372,726 Net (loss) income per share: Basic net (loss) income per share $ (0.08 ) $ 0.09 $ 0.03 $ 0.35 Diluted net (loss) income per share $ (0.08 ) $ 0.09 $ 0.03 $ 0.33 The effect of dilutive options excludes (i) 1,204,619 shares subject to options with exercise prices ranging from $4.17 to $31.13 per share and 516,129 shares subject to warrants with an exercise price of $7.75 per share for the three months ended September 30, 2015 and (ii) 110,122 shares subject to options with exercise prices ranging from $31.10 to $31.13 per share for the six months ended September 30, 2015, which were anti-dilutive. There were no anti-dilutive options or warrants for the three and six months ended September 30, 2014. |
Income Taxes
Income Taxes | 6 Months Ended |
Sep. 30, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | 10. The Company recorded an income tax benefit for the three months ended September 30, 2015 of $898,000, or an effective tax rate of 39.2%, and income tax expense for the three months ended September 30, 2014 of $1,418,000, or an effective tax rate of 49.0%. The Company recorded income tax expenses for the six months ended September 30, 2015 and 2014, of $370,000, or an effective tax rate of 41.7%, and $4,132,000, or an effective tax rate of 43.2%, respectively. The income tax rates for all periods were higher than the federal statutory rate primarily due to (i) state income taxes, which were partially offset by the benefit of lower statutory tax rates in foreign taxing jurisdiction, (ii) non-deductible executive compensation under Internal Revenue Code Section 162(m), and (iii) the payments made under voluntary disclosure agreements with certain states. The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, various states and foreign jurisdictions with varying statutes of limitations. At September 30, 2015, the Company continues to be under examination in the U.S. by the Internal Revenue Service for fiscal years 2011, 2012, and 2013 and by the State of California for fiscal year 2013. The Company is not under examination in any another jurisdiction. The Company believes no significant changes in the unrecognized tax benefits will occur within the next 12 months. |
Financial Risk Management and D
Financial Risk Management and Derivatives | 6 Months Ended |
Sep. 30, 2015 | |
Financial Risk Management and Derivatives [Abstract] | |
Financial Risk Management and Derivatives | 11. Purchases and expenses denominated in currencies other than the U.S. dollar, which are primarily related to the Company’s facilities overseas, expose the Company to market risk from material movements in foreign exchange rates between the U.S. dollar and the foreign currency. The Company’s primary risk exposure is from fluctuations in the value of the Mexican peso and to a lesser extent the Chinese yuan. To mitigate these risks, the Company enters into forward foreign currency exchange contracts to exchange U.S. dollars for these foreign currencies. The extent to which forward foreign currency exchange contracts are used is modified periodically in response to the Company’s estimate of market conditions and the terms and length of anticipated requirements. The Company enters into forward foreign currency exchange contracts in order to reduce the impact of foreign currency fluctuations and not to engage in currency speculation. The use of derivative financial instruments allows the Company to reduce its exposure to the risk that the eventual cash outflow resulting from funding the expenses of the foreign operations will be materially affected by changes in exchange rates. The Company does not hold or issue financial instruments for trading purposes. The forward foreign currency exchange contracts are designated for forecasted expenditure requirements to fund foreign operations. The Company had forward foreign currency exchange contracts with a U.S. dollar equivalent notional value of $19,484,000 and $19,356,000 at September 30, 2015 and March 31, 2015, respectively. These contracts generally have a term of one year or less, at rates agreed at the inception of the contracts. The counterparty to this derivative transaction is a major financial institution with investment grade or better credit rating; however, the Company is exposed to credit risk with this institution. The credit risk is limited to the potential unrealized gains (which offset currency fluctuations adverse to the Company) in any such contract should this counterparty fail to perform as contracted. Any changes in the fair values of forward foreign currency exchange contracts are reflected in current period earnings and accounted for as an increase or offset to general and administrative expenses. The following table shows the effect of the Company’s derivative instruments on its consolidated statements of operations: Loss Recognized within General and Administrative Expenses Derivatives Not Designated as Three Months Ended September 30, Six Months Ended September 30, Hedging Instruments 2015 2014 2015 2014 Forward foreign currency exchange contracts $ (527,000 ) $ (361,000 ) $ (349,000 ) $ (128,000 ) The fair value of the forward foreign currency exchange contracts of $1,542,000 and $1,193,000 is included in other current liabilities in the consolidated balance sheets at September 30, 2015 and March 31, 2015, respectively. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Sep. 30, 2015 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 12. The following table summarizes the Company’s financial assets and liabilities measured at fair value, by level within the fair value hierarchy at September 30, 2015 and March 31, 2015: September 30, 2015 March 31, 2015 Fair Value Measurements Using Inputs Considered as Fair Value Measurements Using Inputs Considered as Fair Value Level 1 Level 2 Level 3 Fair Value Level 1 Level 2 Level 3 Assets Short-term investments Mutual funds $ 1,339,000 $ 1,339,000 - - $ 699,000 $ 699,000 - - Liabilities Accrued liabilities Contingent consideration 398,000 - - $ 398,000 - - - - Other current liabilities Deferred compensation 1,339,000 1,339,000 - - 699,000 699,000 - - Forward foreign currency exchange contracts 1,542,000 - $ 1,542,000 - 1,193,000 - $ 1,193,000 - Other liabilities Warrant liability 12,248,000 - - 12,248,000 10,506,000 - - $ 10,506,000 Contingent consideration 942,000 - - 942,000 - - - - Short-term Investments and Deferred Compensation The Company’s short-term investments, which fund its deferred compensation liabilities, consist of investments in mutual funds. These investments are classified as Level 1 as the shares of these mutual funds trade with sufficient frequency and volume to enable the Company to obtain pricing information on an ongoing basis. Forward Foreign Currency Exchange The forward foreign currency exchange contracts are primarily measured based on the foreign currency spot and forward rates quoted by the banks or foreign currency dealers. During the three months ended September 30, 2015 and 2014, losses of $527,000 and $361,000, respectively, were recorded in general and administrative expenses due to the change in the value of the forward foreign currency exchange contracts. During the six months ended September 30, 2015 and 2014, losses of $349,000 and $128,000, respectively, were recorded in general and administrative expenses due to the change in the value of the forward foreign currency exchange contracts. Warrant Liability The Company estimates the fair value of the warrant liability using level 3 inputs and the Monte Carlo simulation model at each balance sheet date. This amount is recorded as a warrant liability which is included in other liabilities in the consolidated balance sheets at September 30, 2015 and March 31, 2015. Any subsequent changes from the initial recognition in the fair value of the warrant liability are recorded in current period earnings as a general and administrative expense. The assumptions used to determine the fair value of the Supplier Warrant recorded as warrant liability were: September 30, 2015 Risk free interest rate 0.64 % Expected life in years 2.00 Expected volatility 44.50 % Dividend yield - Probability of future financing 0 % The risk free interest rate used was based on U.S. treasury-note yields with terms commensurate with the remaining term of the warrant. The expected life is based on the remaining contractual term of the warrant and the expected volatility is based on the Company’s daily historical volatility over a period commensurate with the remaining term of the warrant. Contingent Consideration The fair value of the contingent consideration of the OE Plus acquisition discussed in Note 2 was $1,320,000 at the acquisition date based on an option pricing model. The contingent consideration is a Level 3 liability recorded in accrued expenses and other liabilities in the Company’s consolidated balance sheet at September 30, 2015. Any subsequent changes from the initial recognition in the fair value of the contingent consideration liability are recorded in current period earnings as a general and administrative expense. During the three and six months ended September 30, 2015, a loss of $20,000 was recorded in general and administrative expenses due to the change in the fair value of the contingent consideration. The assumptions used to determine the fair value of the contingent consideration were: September 30, 2015 Expected volatility 35.00 % Probability 90.00 % Counter party present value factor 5.62 % In addition to the above assumptions, a risk-free interest rate ranging from 0.23% to 1.28% commensurate with the term of the contingent consideration was used. The following table summarizes the activity for Level 3 fair value measurements: Three Months Ended September 30, Six Months Ended September 30, 2015 2014 2015 2014 Supplier Warrant Contingent Consideration Supplier Warrant Contingent Consideration Supplier Warrant Contingent Consideration Supplier Warrant Contingent Consideration Beginning balance $ 11,648,000 $ 1,320,000 $ 8,933,000 $ - $ 10,506,000 $ - $ 10,047,000 $ - Newly issued - - - - - 1,320,000 - - Total (gain) loss included in net loss 600,000 20,000 1,389,000 - 1,742,000 20,000 275,000 - Exercises/settlements - - - - - - - - Net transfers in (out) of Level 3 - - - - - - - - Ending balance $ 12,248,000 $ 1,340,000 $ 10,322,000 $ - $ 12,248,000 $ 1,340,000 $ 10,322,000 $ - During the six months ended September 30, 2015, the Company had no significant measurements of assets or liabilities at fair value on a nonrecurring basis subsequent to their initial recognition. The carrying amounts of cash, accounts receivable, accounts payable and accrued liabilities approximate their fair value due to the short-term nature of these instruments. The carrying amounts of the revolving loans, term loans and other long-term liabilities approximate their fair value based on the variable nature of interest rates and current rates for instruments with similar characteristics. |
Share-based Payments
Share-based Payments | 6 Months Ended |
Sep. 30, 2015 | |
Share-based Payments [Abstract] | |
Share-based Payments | 13. Stock Options The Company granted options to purchase 110,122 and 82,537 shares of common stock during the six months ended September 30, 2015 and 2014, respectively. The cost associated with stock options is estimated using the Black-Scholes option-pricing model. This model requires the input of subjective assumptions including the expected volatility of the underlying stock and the expected holding period of the option. These subjective assumptions are based on both historical and other information. Changes in the values assumed and used in the model can materially affect the estimate of fair value. The assumptions used to derive the weighted average fair value of the stock options granted were: Six Months Ended 2015 2014 Weighted average risk free interest rate 1.73 % 1.75 % Weighted average expected holding period (years) 5.76 5.01 Weighted average expected volatility 46.84 % 46.02 % Weighted average expected dividend yield - - Weighted average fair value of options granted $ 14.13 $ 9.65 The following is a summary of stock option transactions for the six months ended September 30, 2015: Number of Shares Weighted Average Exercise Price Outstanding at March 31, 2015 1,389,254 $ 9.97 Granted 110,122 $ 31.13 Exercised (294,757 ) $ 10.03 Cancelled - $ - Outstanding at September 30, 2015 1,204,619 $ 11.89 At September 30, 2015, options to purchase 906,082 shares of common stock were exercisable at the weighted average exercise price of $9.12. At September 30, 2015, there was $2,547,000 of total unrecognized compensation expense related to unvested stock option awards. The compensation expense is expected to be recognized over a weighted average vesting period of approximately 1.7 years. Restricted Stock During the six months ended September 30, 2015 and 2014, the Company granted 39,900 and 95,645 shares of restricted stock, respectively, with an estimated grant date fair value of $1,242,000 and $2,316,000, respectively, which was based on the closing market price on the grant date. The following is a summary of non-vested restricted stock for the six months ended September 30, 2015: Number of Shares Weighted Average Grant Date Fair Value Non-vested stock at March 31, 2015 181,443 $ 16.84 Granted 39,900 $ 31.13 Vested (75,519 ) $ 15.34 Cancelled - $ - Non-vested stock at September 30, 2015 145,824 $ 21.53 At September 30, 2015, there was $2,946,000 of unrecognized compensation expense related to awards of the restricted stock, which will be recognized over the remaining vesting period of approximately 1.8 years. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Sep. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Accumulated Other Comprehensive (Loss) | 14. The changes in accumulated other comprehensive income (loss) for the three months ended September 30, 2015 and 2014 is as follows: Three Months Ended September 30, 2015 Three Months Ended September 30, 2014 Unrealized Gain (Loss) on Short-Term Investments Foreign Currency Translation Total Unrealized Gain (Loss) on Short-Term Investments Foreign Currency Translation Total Balance at beginning of period $ 339,000 $ (3,212,000 ) $ (2,873,000 ) $ 331,000 $ (1,153,000 ) $ (822,000 ) Other comprehensive loss, net of tax (53,000 ) (1,424,000 ) (1,477,000 ) (3,000 ) (513,000 ) (516,000 ) Amounts reclassified from accumulated other comprehensive loss, net of tax - - - - - - Balance at end of period $ 286,000 $ (4,636,000 ) $ (4,350,000 ) $ 328,000 $ (1,666,000 ) $ (1,338,000 ) The changes in accumulated other comprehensive income (loss) for the six months ended September 30, 2015 and 2014 is as follows: Six Months Ended September 30, 2015 Six Months Ended September 30, 2014 Unrealized Gain on Short-Term Investments Foreign Currency Translation Total Unrealized Gain on Short-Term Investments Foreign Currency Translation Total Balance at beginning of period $ 345,000 $ (2,863,000 ) $ (2,518,000 ) $ 321,000 $ (1,198,000 ) $ (877,000 ) Other comprehensive (loss) income, net of tax (59,000 ) (1,773,000 ) (1,832,000 ) 7,000 (468,000 ) (461,000 ) Amounts reclassified from accumulated other comprehensive loss, net of tax - - - - - - Balance at end of period $ 286,000 $ (4,636,000 ) $ (4,350,000 ) $ 328,000 $ (1,666,000 ) $ (1,338,000 ) |
Litigation
Litigation | 6 Months Ended |
Sep. 30, 2015 | |
Litigation [Abstract] | |
Litigation | 15. In May 2011, the Company purchased (i) all of the outstanding equity of Fenwick Automotive Products Limited (“FAPL”), (ii) all of the outstanding equity of Introcan, Inc., a Delaware corporation (“Introcan”), and (iii) 1% of the outstanding equity of Fapco S.A. de C.V., a Mexican variable capital company (“Fapco”) (collectively, “Fenco” and also referred to herein as the “discontinued subsidiaries”). Since FAPL owned 99% of Fapco prior to these acquisitions, the Company owned 100% of Fapco following these transactions. On June 10, 2013, each of FAPL, Introcan and Introcan’s subsidiaries, Flo-Pro Inc., LH Distribution Inc., Rafko Logistics Inc., Rafko Holdings Inc. and Rafko Enterprises Inc. (collectively, the “Fenco Entities”), filed a voluntary petition for relief under Chapter 7 of Title 11 of the United States Code (the “Bankruptcy Code”) in the U.S. Bankruptcy Court for the District of Delaware. On October 26, 2015, the Company entered into a settlement and general and specific release agreement with M&T Bank and the trustee in the bankruptcy cases relating to the discontinued subsidiaries, which resolves the litigation and releases the claims made or threatened by those parties against the Company and its executives in exchange for a payment by the Company of $18,500,000, of which $9,250,000 will be paid by the Company’s insurers under applicable insurance policies. As a result, the Company recorded an accrual of $9,250,000, net of insurance recoveries, in accrued liabilities in the consolidated balance sheet at September 30, 2015. None of the parties admit the allegations made by any other party, and the settlement is being entered into for the purpose of avoiding the time, expense, inconvenience and delay incident to protracted litigation. The settlement agreement is subject to approval by the applicable courts and other customary conditions. The Company is also subject to various other lawsuits and claims. Management does not believe that the outcome of these other matters will have a material adverse effect on its financial position or future results of operations. |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Sep. 30, 2015 | |
New Accounting Pronouncements [Abstract] | |
New Accounting Pronouncements | 16. Revenue Recognition In May 2014, the FASB issued guidance codified in ASC 606, “Revenue Recognition - Revenue from Contracts with Customers”, which amends the guidance in the former ASC 605, “Revenue Recognition”. The new guidance is effective for annual periods beginning after December 15, 2016, and interim periods within that reporting period for a public company. A full or modified retrospective transition method is required. In August 2015, the FASB delayed the effective date by one year to annual periods beginning after December 15, 2017, and interim periods within that reporting period for a public company. Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In August 2014, the FASB issued guidance which requires an entity to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or available to be issued). If conditions or events raise substantial doubt that is not alleviated, an entity should disclose that there is substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or available to be issued), along with the principal conditions or events that raise substantial doubt, management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations and management’s plans that are intended to mitigate those conditions. The new guidance is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. Extraordinary Items In January 2015, the FASB issued guidance that simplifies income statement presentation by eliminating the concept of extraordinary items. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively or retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company does not expect any impact on its consolidated financial statements from the adoption of this guidance. Inventory In July 2015, the FASB issued guidance that requires an entity to measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. The amendments in this update are effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. The amendments in this update should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is currently evaluating the impact of the provisions of this guidance to its consolidated financial statements. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Sep. 30, 2015 | |
Intangible Assets [Abstract] | |
Intangible assets subject to amortization | The following is a summary of acquired intangible assets subject to amortization: September 30, 2015 March 31, 2015 Weighted Average Amortization Period Gross Carrying Value Accumulated Amortization Gross Carrying Value Accumulated Amortization Intangible assets subject to amortization Trademarks 11 years $ 705,000 $ 95,000 $ 397,000 $ 278,000 Customer relationships 13 years 5,900,000 1,647,000 6,211,000 3,756,000 Total $ 6,605,000 $ 1,742,000 $ 6,608,000 $ 4,034,000 |
Amortization expense for acquired intangible assets | Amortization expense for acquired intangible assets is as follows: Three Months Ended Six Months Ended 2015 2014 2015 2014 Amortization expense $ 157,000 $ 170,000 $ 331,000 $ 350,000 |
Estimated future amortization expense for intangible assets | The estimated future amortization expense for acquired intangible assets subject to amortization is as follows: Year Ending March 31, 2016 - remaining six months $ 291,000 2017 580,000 2018 580,000 2019 580,000 2020 580,000 Thereafter 2,252,000 Total $ 4,863,000 |
Accounts Receivable - Net (Tabl
Accounts Receivable - Net (Tables) | 6 Months Ended |
Sep. 30, 2015 | |
Accounts Receivable - Net [Abstract] | |
Schedule of accounts receivable | Accounts receivable — net is comprised of the following: September 30, 2015 March 31, 2015 Accounts receivable — trade $ 57,213,000 $ 62,171,000 Allowance for bad debts (537,000 ) (629,000 ) Customer allowances earned (10,254,000 ) (7,221,000 ) Customer payment discrepancies (824,000 ) (852,000 ) Customer returns RGA issued (14,662,000 ) (7,029,000 ) Customer core returns accruals (30,037,000 ) (21,641,000 ) Less: total accounts receivable offset accounts (56,314,000 ) (37,372,000 ) Total accounts receivable — net $ 899,000 $ 24,799,000 |
Schedule of warranty return accrual | Change in the Company’s warranty return accrual is as follows: Three Months Ended September 30, Six Months Ended September 30, 2015 2014 2015 2014 Balance at beginning of period $ 9,785,000 $ 7,048,000 $ 10,904,000 $ 8,039,000 Charged to expense/additions 22,442,000 17,352,000 39,813,000 30,359,000 Amounts processed (22,023,000 ) (15,979,000 ) (40,513,000 ) (29,977,000 ) Balance at end of period $ 10,204,000 $ 8,421,000 $ 10,204,000 $ 8,421,000 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Sep. 30, 2015 | |
Inventory [Abstract] | |
Schedule of inventory | Inventory is comprised of the following: September 30, 2015 March 31, 2015 Non-core inventory Raw materials $ 17,407,000 $ 18,836,000 Work-in-process 557,000 255,000 Finished goods 38,200,000 39,828,000 56,164,000 58,919,000 Less allowance for excess and obsolete inventory (2,191,000 ) (2,090,000 ) Total $ 53,973,000 $ 56,829,000 Inventory unreturned $ 10,641,000 $ 7,833,000 Long-term core inventory Used cores held at the Company's facilities $ 38,044,000 $ 27,417,000 Used cores expected to be returned by customers 10,382,000 9,799,000 Remanufactured cores held in finished goods 19,881,000 21,557,000 Remanufactured cores held at customers' locations (1) 164,313,000 130,762,000 232,620,000 189,535,000 Less allowance for excess and obsolete inventory (1,238,000 ) (585,000 ) Total $ 231,382,000 $ 188,950,000 Long-term core inventory deposits (1) $ 5,569,000 $ 31,571,000 (1) During the three months ended September 30, 2015, the Company completed the core buy-back program with one of its largest customers. As a result of the completion of this buy-back program and related long-term core inventory reconciliations, $25,805,000 from the long-term core inventory deposits account was transferred to the remanufactured cores held at customers’ locations account within long-term core inventory. At March 31, 2015, $26,002,000 of remanufactured cores in connection with this core buy-back program was included in long-term core inventory deposits. |
Major Customers (Tables)
Major Customers (Tables) | 6 Months Ended |
Sep. 30, 2015 | |
Major Customers [Abstract] | |
Schedule of largest customers | The Company’s largest customers accounted for the following total percentage of net sales: Three Months Ended September 30, Six Months Ended September 30, Sales 2015 2014 2015 2014 Customer A 46 % 53 % 48 % 53 % Customer B 21 % 21 % 20 % 22 % Customer C 21 % 7 % 19 % 6 % The Company’s largest customers accounted for the following total percentage of accounts receivable—trade: Accounts receivable - trade September 30, 2015 March 31, 2015 Customer A 35 % 48 % Customer B 21 % 16 % Customer C 14 % 12 % |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Sep. 30, 2015 | |
Debt [Abstract] | |
Summarized information about the term loan | The following summarizes information about the Company’s term loans at: September 30, 2015 March 31, 2015 Principal amount of term loan $ 25,000,000 $ 84,500,000 Unamortized debt issuance costs (413,000 ) (5,278,000 ) Net carrying amount of term loan 24,587,000 79,222,000 Less current portion of term loan (3,070,000 ) (7,733,000 ) Long-term portion of term loan $ 21,517,000 $ 71,489,000 |
Future repayments of the amended term loan, by fiscal year | Future repayments of the Company’s New Term Loans, by fiscal year, are as follows: Year Ending March 31, 2016 - remaining six months $ 1,563,000 2017 3,125,000 2018 3,125,000 2019 3,125,000 2020 3,125,000 Thereafter 10,937,000 Total payments $ 25,000,000 |
Accounts Receivable Discount 30
Accounts Receivable Discount Programs (Tables) | 6 Months Ended |
Sep. 30, 2015 | |
Accounts Receivable Discount Programs [Abstract] | |
Schedule of accounts receivable discount programs | The following is a summary of the Company’s accounts receivable discount programs: Six Months Ended September 30, 2015 2014 Receivables discounted $ 167,905,000 $ 136,326,000 Weighted average days 342 336 Annualized weighted average discount rate 2.2 % 2.0 % Amount of discount as interest expense $ 3,452,000 $ 2,542,000 |
Net (Loss) Income Per Share (Ta
Net (Loss) Income Per Share (Tables) | 6 Months Ended |
Sep. 30, 2015 | |
Net (Loss) Income Per Share [Abstract] | |
Schedule of reconciliation of basic and diluted net loss per share | The following presents a reconciliation of basic and diluted net (loss) income per share: Three Months Ended September 30, Six Months Ended September 30, 2015 2014 2015 2014 Net (loss) income $ (1,392,000 ) $ 1,475,000 $ 518,000 $ 5,424,000 Basic shares 18,215,783 15,975,437 18,109,912 15,531,566 Effect of potentially dilutive securities - 850,990 777,241 841,160 Diluted shares 18,215,783 16,826,427 18,887,153 16,372,726 Net (loss) income per share: Basic net (loss) income per share $ (0.08 ) $ 0.09 $ 0.03 $ 0.35 Diluted net (loss) income per share $ (0.08 ) $ 0.09 $ 0.03 $ 0.33 |
Financial Risk Management and32
Financial Risk Management and Derivatives (Tables) | 6 Months Ended |
Sep. 30, 2015 | |
Financial Risk Management and Derivatives [Abstract] | |
Schedule of derivative instruments on consolidated statements of operations | The following table shows the effect of the Company’s derivative instruments on its consolidated statements of operations: Loss Recognized within General and Administrative Expenses Derivatives Not Designated as Three Months Ended September 30, Six Months Ended September 30, Hedging Instruments 2015 2014 2015 2014 Forward foreign currency exchange contracts $ (527,000 ) $ (361,000 ) $ (349,000 ) $ (128,000 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Sep. 30, 2015 | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Financial assets and liabilities measured at fair value recurring basis | The following table summarizes the Company’s financial assets and liabilities measured at fair value, by level within the fair value hierarchy at September 30, 2015 and March 31, 2015: September 30, 2015 March 31, 2015 Fair Value Measurements Using Inputs Considered as Fair Value Measurements Using Inputs Considered as Fair Value Level 1 Level 2 Level 3 Fair Value Level 1 Level 2 Level 3 Assets Short-term investments Mutual funds $ 1,339,000 $ 1,339,000 - - $ 699,000 $ 699,000 - - Liabilities Accrued liabilities Contingent consideration 398,000 - - $ 398,000 - - - - Other current liabilities Deferred compensation 1,339,000 1,339,000 - - 699,000 699,000 - - Forward foreign currency exchange contracts 1,542,000 - $ 1,542,000 - 1,193,000 - $ 1,193,000 - Other liabilities Warrant liability 12,248,000 - - 12,248,000 10,506,000 - - $ 10,506,000 Contingent consideration 942,000 - - 942,000 - - - - |
Change in warrant liability measured at fair value recurring basis using significant unobservable inputs (level 3) | The following table summarizes the activity for Level 3 fair value measurements: Three Months Ended September 30, Six Months Ended September 30, 2015 2014 2015 2014 Supplier Warrant Contingent Consideration Supplier Warrant Contingent Consideration Supplier Warrant Contingent Consideration Supplier Warrant Contingent Consideration Beginning balance $ 11,648,000 $ 1,320,000 $ 8,933,000 $ - $ 10,506,000 $ - $ 10,047,000 $ - Newly issued - - - - - 1,320,000 - - Total (gain) loss included in net loss 600,000 20,000 1,389,000 - 1,742,000 20,000 275,000 - Exercises/settlements - - - - - - - - Net transfers in (out) of Level 3 - - - - - - - - Ending balance $ 12,248,000 $ 1,340,000 $ 10,322,000 $ - $ 12,248,000 $ 1,340,000 $ 10,322,000 $ - |
Supplier Warrant [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Assumptions used to determine fair value of warrant liability | The assumptions used to determine the fair value of the Supplier Warrant recorded as warrant liability were: September 30, 2015 Risk free interest rate 0.64 % Expected life in years 2.00 Expected volatility 44.50 % Dividend yield - Probability of future financing 0 % |
Contingent Consideration [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Assumptions used to determine fair value of warrant liability | The assumptions used to determine the fair value of the contingent consideration were: September 30, 2015 Expected volatility 35.00 % Probability 90.00 % Counter party present value factor 5.62 % |
Share-based Payments (Tables)
Share-based Payments (Tables) | 6 Months Ended |
Sep. 30, 2015 | |
Share-based Payments [Abstract] | |
Summary of Black-Scholes option pricing model assumptions used to derive weighted average fair value of stock options granted | The assumptions used to derive the weighted average fair value of the stock options granted were: Six Months Ended 2015 2014 Weighted average risk free interest rate 1.73 % 1.75 % Weighted average expected holding period (years) 5.76 5.01 Weighted average expected volatility 46.84 % 46.02 % Weighted average expected dividend yield - - Weighted average fair value of options granted $ 14.13 $ 9.65 |
Summary of stock option transactions | The following is a summary of stock option transactions for the six months ended September 30, 2015: Number of Shares Weighted Average Exercise Price Outstanding at March 31, 2015 1,389,254 $ 9.97 Granted 110,122 $ 31.13 Exercised (294,757 ) $ 10.03 Cancelled - $ - Outstanding at September 30, 2015 1,204,619 $ 11.89 |
Schedule of restricted stock units activity | The following is a summary of non-vested restricted stock for the six months ended September 30, 2015: Number of Shares Weighted Average Grant Date Fair Value Non-vested stock at March 31, 2015 181,443 $ 16.84 Granted 39,900 $ 31.13 Vested (75,519 ) $ 15.34 Cancelled - $ - Non-vested stock at September 30, 2015 145,824 $ 21.53 |
Accumulated Other Comprehensi35
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Sep. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Accumulated other comprehensive income (loss) | The changes in accumulated other comprehensive income (loss) for the three months ended September 30, 2015 and 2014 is as follows: Three Months Ended September 30, 2015 Three Months Ended September 30, 2014 Unrealized Gain (Loss) on Short-Term Investments Foreign Currency Translation Total Unrealized Gain (Loss) on Short-Term Investments Foreign Currency Translation Total Balance at beginning of period $ 339,000 $ (3,212,000 ) $ (2,873,000 ) $ 331,000 $ (1,153,000 ) $ (822,000 ) Other comprehensive loss, net of tax (53,000 ) (1,424,000 ) (1,477,000 ) (3,000 ) (513,000 ) (516,000 ) Amounts reclassified from accumulated other comprehensive loss, net of tax - - - - - - Balance at end of period $ 286,000 $ (4,636,000 ) $ (4,350,000 ) $ 328,000 $ (1,666,000 ) $ (1,338,000 ) The changes in accumulated other comprehensive income (loss) for the six months ended September 30, 2015 and 2014 is as follows: Six Months Ended September 30, 2015 Six Months Ended September 30, 2014 Unrealized Gain on Short-Term Investments Foreign Currency Translation Total Unrealized Gain on Short-Term Investments Foreign Currency Translation Total Balance at beginning of period $ 345,000 $ (2,863,000 ) $ (2,518,000 ) $ 321,000 $ (1,198,000 ) $ (877,000 ) Other comprehensive (loss) income, net of tax (59,000 ) (1,773,000 ) (1,832,000 ) 7,000 (468,000 ) (461,000 ) Amounts reclassified from accumulated other comprehensive loss, net of tax - - - - - - Balance at end of period $ 286,000 $ (4,636,000 ) $ (4,350,000 ) $ 328,000 $ (1,666,000 ) $ (1,338,000 ) |
Basis of Presentation (Details)
Basis of Presentation (Details) - Adjustments for New Accounting Principle [Member] | Mar. 31, 2015USD ($) |
Reclassification of Debt [Member] | |
Recently Adopted Accounting Standards [Abstract] | |
Unamortized debt issuance costs | $ 879,000 |
Reclassification to Current Portion [Member] | |
Recently Adopted Accounting Standards [Abstract] | |
Unamortized debt issuance costs | 110,000 |
Reclassification to Noncurrent Portion [Member] | |
Recently Adopted Accounting Standards [Abstract] | |
Unamortized debt issuance costs | $ 769,000 |
Company Background and Organi37
Company Background and Organization (Details) | 6 Months Ended |
Sep. 30, 2015Segment | |
Company Background and Organization [Abstract] | |
Number of reportable segments | 1 |
Acquisition (Details)
Acquisition (Details) - USD ($) | May. 20, 2015 | Sep. 30, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Mar. 31, 2015 |
Business Acquisition [Line Items] | |||||
Purchase consideration | $ 3,200,000 | $ 0 | |||
Goodwill | $ 2,552,000 | $ 2,552,000 | $ 0 | ||
Trademarks [Member] | |||||
Business Acquisition [Line Items] | |||||
Estimated life | 11 years | ||||
Customer Relationships [Member] | |||||
Business Acquisition [Line Items] | |||||
Estimated life | 13 years | ||||
OE Plus, LTD [Member] | |||||
Business Acquisition [Line Items] | |||||
Purchase consideration | $ 3,200,000 | ||||
Purchase consideration held in escrow | 1,000,000 | ||||
High end of contingent additional payments | $ 2,000,000 | ||||
Additional payments obligated period | 4 years | ||||
Fair value estimation of contingent consideration obligation | $ 1,320,000 | ||||
Working capital adjustments to finite-lived intangible assets | 500,000 | ||||
Goodwill | 1,847,000 | 2,552,000 | $ 2,552,000 | ||
OE Plus, LTD [Member] | Trademarks [Member] | |||||
Business Acquisition [Line Items] | |||||
Finite-lived intangible assets | $ 635,000 | 520,000 | |||
Estimated life | 10 years | ||||
OE Plus, LTD [Member] | Customer Relationships [Member] | |||||
Business Acquisition [Line Items] | |||||
Finite-lived intangible assets | $ 2,690,000 | $ 2,100,000 | |||
Estimated life | 8 years |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | 6 Months Ended | |
Sep. 30, 2015 | Mar. 31, 2015 | |
Intangible assets subject to amortization [Abstract] | ||
Gross Carrying Value | $ 6,605,000 | $ 6,608,000 |
Accumulated Amortization | $ 1,742,000 | 4,034,000 |
Trademarks [Member] | ||
Intangible assets subject to amortization [Abstract] | ||
Weighted Average Amortization Period | 11 years | |
Gross Carrying Value | $ 705,000 | 397,000 |
Accumulated Amortization | $ 95,000 | 278,000 |
Customer Relationships [Member] | ||
Intangible assets subject to amortization [Abstract] | ||
Weighted Average Amortization Period | 13 years | |
Gross Carrying Value | $ 5,900,000 | 6,211,000 |
Accumulated Amortization | $ 1,647,000 | $ 3,756,000 |
Intangible Assets, Amortization
Intangible Assets, Amortization Expense (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Amortization expense for acquired intangible assets [Abstract] | ||||
Amortization expense | $ 157,000 | $ 170,000 | $ 331,000 | $ 350,000 |
Estimated future amortization expense for intangible assets subject to amortization [Abstract] | ||||
2016 - remaining six months | 291,000 | 291,000 | ||
2,017 | 580,000 | 580,000 | ||
2,018 | 580,000 | 580,000 | ||
2,019 | 580,000 | 580,000 | ||
2,020 | 580,000 | 580,000 | ||
Thereafter | 2,252,000 | 2,252,000 | ||
Total | $ 4,863,000 | $ 4,863,000 |
Accounts Receivable - Net (Deta
Accounts Receivable - Net (Details) - USD ($) | Sep. 30, 2015 | Mar. 31, 2015 |
Accounts Receivable - Net [Abstract] | ||
Accounts receivable - trade | $ 57,213,000 | $ 62,171,000 |
Allowance for bad debts | (537,000) | (629,000) |
Customer allowances earned | (10,254,000) | (7,221,000) |
Customer payment discrepancies | (824,000) | (852,000) |
Customer returns RGA issued | (14,662,000) | (7,029,000) |
Customer core returns accruals | (30,037,000) | (21,641,000) |
Less: total accounts receivable offset accounts | (56,314,000) | (37,372,000) |
Total accounts receivable - net | $ 899,000 | $ 24,799,000 |
Accounts Receivable - Net, Warr
Accounts Receivable - Net, Warranty Returns (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Mar. 31, 2015 | |
Warranty Returns [Abstract] | |||||
Warranty accrual included in customer returns RGA issued | $ 4,369,000 | $ 4,369,000 | $ 3,746,000 | ||
Warranty accrual included in customer finished goods returns accrual | 5,835,000 | 5,835,000 | $ 7,158,000 | ||
Change in warranty return accrual [Roll Forward] | |||||
Balance at beginning of period | 9,785,000 | $ 7,048,000 | 10,904,000 | $ 8,039,000 | |
Charged to expense/additions | 22,442,000 | 17,352,000 | 39,813,000 | 30,359,000 | |
Amounts processed | (22,023,000) | (15,979,000) | (40,513,000) | (29,977,000) | |
Balance at end of period | $ 10,204,000 | $ 8,421,000 | $ 10,204,000 | $ 8,421,000 |
Inventory (Details)
Inventory (Details) - USD ($) | Sep. 30, 2015 | Mar. 31, 2015 | |
Non-core inventory [Abstract] | |||
Raw materials | $ 17,407,000 | $ 18,836,000 | |
Work-in-process | 557,000 | 255,000 | |
Finished goods | 38,200,000 | 39,828,000 | |
Non-core inventory, gross | 56,164,000 | 58,919,000 | |
Less allowance for excess and obsolete inventory | (2,191,000) | (2,090,000) | |
Total | 53,973,000 | 56,829,000 | |
Inventory unreturned | 10,641,000 | 7,833,000 | |
Long-term core inventory [Abstract] | |||
Used cores held at the Company's facilities | 38,044,000 | 27,417,000 | |
Used cores expected to be returned by customers | 10,382,000 | 9,799,000 | |
Remanufactured cores held in finished goods | 19,881,000 | 21,557,000 | |
Remanufactured cores held at customers' locations | [1] | 164,313,000 | 130,762,000 |
Long-term core inventory - gross | 232,620,000 | 189,535,000 | |
Less allowance for excess and obsolete inventory | (1,238,000) | (585,000) | |
Total | 231,382,000 | 188,950,000 | |
Long-term core inventory deposits | [1] | 5,569,000 | 31,571,000 |
Long-term core inventory deposits transferred | $ 25,805,000 | ||
Remanufactured cores included in long-term core inventory deposits | $ 26,002,000 | ||
[1] | During the three months ended September 30, 2015, the Company completed the core buy-back program with one of its largest customers. As a result of the completion of this buy-back program and related long-term core inventory reconciliations, $25,805,000 from the long-term core inventory deposits account was transferred to the remanufactured cores held at customers' locations account within long-term core inventory. At March 31, 2015, $26,002,000 of remanufactured cores in connection with this core buy-back program was included in long-term core inventory deposits. |
Major Customers (Details)
Major Customers (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Mar. 31, 2014 | |
Sales [Member] | Customer A [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 46.00% | 53.00% | 48.00% | 53.00% | |
Sales [Member] | Customer B [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 21.00% | 21.00% | 20.00% | 22.00% | |
Sales [Member] | Customer C [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 21.00% | 7.00% | 19.00% | 6.00% | |
Accounts Receivable - Trade [Member] | Customer A [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 35.00% | 48.00% | |||
Accounts Receivable - Trade [Member] | Customer B [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 21.00% | 16.00% | |||
Accounts Receivable - Trade [Member] | Customer C [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 14.00% | 12.00% | |||
Significant Supplier Purchases [Member] | Supplier A [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 15.00% | 14.00% |
Debt, Extinguishment of Debt (D
Debt, Extinguishment of Debt (Details) - USD ($) | Jun. 03, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Mar. 31, 2015 |
Extinguishment of Debt Disclosures [Abstract] | ||||
Write off of deferred debt issuance cost | $ 5,108,000 | $ 0 | ||
Financing Agreement [Member] | LIBOR [Member] | ||||
Extinguishment of Debt Disclosures [Abstract] | ||||
Interest rate at end of period using LIBOR option | 6.75% | |||
Financing Agreement [Member] | Letters of Credit [Member] | ||||
Extinguishment of Debt Disclosures [Abstract] | ||||
Maximum borrowing capacity | $ 10,000,000 | |||
Financing Agreement [Member] | Term Loans [Member] | ||||
Extinguishment of Debt Disclosures [Abstract] | ||||
Maximum borrowing capacity | 95,000,000 | |||
Write off of deferred debt issuance cost | 5,108,000 | |||
Financing Agreement [Member] | Revolving Credit Facility [Member] | ||||
Extinguishment of Debt Disclosures [Abstract] | ||||
Maximum borrowing capacity | $ 40,000,000 |
Debt, Credit Facility (Details)
Debt, Credit Facility (Details) - USD ($) | Jun. 03, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Mar. 31, 2015 | Aug. 31, 2012 |
Summarized information about the term loan [Abstract] | |||||||
Less current portion of term loan | $ (3,070,000) | $ (3,070,000) | $ (7,733,000) | ||||
Long-term portion of term loan | 21,517,000 | 21,517,000 | 71,489,000 | ||||
Future repayments of the Term Loan, by fiscal year [Abstract] | |||||||
Total (gain) loss included in net loss | 1,762,000 | $ 275,000 | |||||
Credit Facility [Member] | |||||||
Credit Facility [Abstract] | |||||||
Maximum borrowing capacity | $ 125,000,000 | ||||||
Debt instrument, maturity date | Jun. 3, 2020 | ||||||
Debt issuance costs | $ 2,212,000 | ||||||
Quarterly principal payments | $ 781,250 | ||||||
Summarized information about the term loan [Abstract] | |||||||
Principal amount of term loan | 25,000,000 | 25,000,000 | 84,500,000 | ||||
Unamortized debt issuance costs | (413,000) | (413,000) | (5,278,000) | ||||
Net carrying amount of term loan | 24,587,000 | 24,587,000 | 79,222,000 | ||||
Less current portion of term loan | (3,070,000) | (3,070,000) | (7,733,000) | ||||
Long-term portion of term loan | 21,517,000 | 21,517,000 | 71,489,000 | ||||
Future repayments of the Term Loan, by fiscal year [Abstract] | |||||||
2016 - remaining six months | 1,563,000 | 1,563,000 | |||||
2,017 | 3,125,000 | 3,125,000 | |||||
2,018 | 3,125,000 | 3,125,000 | |||||
2,019 | 3,125,000 | 3,125,000 | |||||
2,020 | 3,125,000 | 3,125,000 | |||||
Thereafter | $ 10,937,000 | $ 10,937,000 | |||||
Credit Facility [Member] | Minimum [Member] | |||||||
Credit Facility [Abstract] | |||||||
Facility fee on total leverage ratio | 0.25% | ||||||
Credit Facility [Member] | Maximum [Member] | |||||||
Credit Facility [Abstract] | |||||||
Facility fee on total leverage ratio | 0.375% | ||||||
Credit Facility [Member] | Reference Rate [Member] | |||||||
Credit Facility [Abstract] | |||||||
Reference interest rate under option 1, floor | 1.50% | ||||||
Interest rate over reference rate under option 1 | 1.75% | ||||||
Interest rate above base rate under option 2 | 2.00% | ||||||
Credit Facility [Member] | LIBOR [Member] | |||||||
Credit Facility [Abstract] | |||||||
Interest rate at end of period using LIBOR option | 2.95% | 2.95% | |||||
Reference interest rate under option 1, floor | 2.50% | ||||||
Interest rate over reference rate under option 1 | 2.75% | ||||||
Interest rate above base rate under option 2 | 3.00% | ||||||
Credit Facility [Member] | Term Loans [Member] | |||||||
Credit Facility [Abstract] | |||||||
Maximum borrowing capacity | $ 25,000,000 | ||||||
Credit Facility [Member] | Revolving Facility [Member] | |||||||
Credit Facility [Abstract] | |||||||
Maximum borrowing capacity | 100,000,000 | ||||||
Future repayments of the Term Loan, by fiscal year [Abstract] | |||||||
Outstanding balance under revolving loan | $ 15,000,000 | $ 15,000,000 | 0 | ||||
Amount available under revolving facility | 82,590,000 | 82,590,000 | |||||
Credit Facility [Member] | Revolving Facility [Member] | Letters of Credit [Member] | |||||||
Credit Facility [Abstract] | |||||||
Maximum borrowing capacity | $ 15,000,000 | ||||||
Credit Facility [Member] | Revolving Facility [Member] | Commercial Letter of Credit [Member] | |||||||
Future repayments of the Term Loan, by fiscal year [Abstract] | |||||||
Outstanding balance under revolving loan | 1,980,000 | 1,980,000 | |||||
Credit Facility [Member] | Revolving Facility [Member] | Standby Letters of Credit [Member] | |||||||
Future repayments of the Term Loan, by fiscal year [Abstract] | |||||||
Outstanding balance under revolving loan | 430,000 | 430,000 | |||||
WX Agreement [Member] | Supplier Warrant [Member] | |||||||
Future repayments of the Term Loan, by fiscal year [Abstract] | |||||||
Number of shares that can be purchased under warrants (in shares) | 516,129 | ||||||
Exercise price of warrants (in dollars per share) | $ 7.75 | ||||||
Fair value of warrants issued | 12,248,000 | 12,248,000 | $ 10,506,000 | ||||
Total (gain) loss included in net loss | $ 600,000 | $ 1,389,000 | $ 1,742,000 | $ 275,000 |
Accounts Receivable Discount 47
Accounts Receivable Discount Programs (Details) - USD ($) | 6 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Accounts Receivable Discount Programs [Abstract] | ||
Receivables discounted | $ 167,905,000 | $ 136,326,000 |
Weighted average days | 342 days | 336 days |
Annualized weighted average discount rate | 2.20% | 2.00% |
Amount of discount as interest expense | $ 3,452,000 | $ 2,542,000 |
Net (Loss) Income Per Share (De
Net (Loss) Income Per Share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Net (Loss) Income Per Share [Abstract] | ||||
Net income | $ (1,392,000) | $ 1,475,000 | $ 518,000 | $ 5,424,000 |
Basic shares (in shares) | 18,215,783 | 15,975,437 | 18,109,912 | 15,531,566 |
Effect of potentially dilutive securities (in shares) | 0 | 850,990 | 777,241 | 841,160 |
Diluted shares (in shares) | 18,215,783 | 16,826,427 | 18,887,153 | 16,372,726 |
Net (loss) income per share [Abstract] | ||||
Basic net (loss) income per share (in dollars per share) | $ (0.08) | $ 0.09 | $ 0.03 | $ 0.35 |
Diluted net (loss) income per share (in dollars per share) | $ (0.08) | $ 0.09 | $ 0.03 | $ 0.33 |
Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares excluded from computation of earnings per share (in shares) | 1,204,619 | 0 | 110,122 | 0 |
Exercise price of options, lower range (in dollars per share) | $ 4.17 | $ 31.10 | ||
Exercise price of options, upper range (in dollars per share) | $ 31.13 | 31.13 | ||
Warrants [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares excluded from computation of earnings per share (in shares) | 516,129 | 0 | 0 | |
Exercise price of warrants (in dollars per share) | $ 7.75 | $ 7.75 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Taxes [Abstract] | ||||
Income tax expenses from continuing operations | $ (898,000) | $ 1,418,000 | $ 370,000 | $ 4,132,000 |
Effective income tax rate | 39.20% | 49.00% | 41.70% | 43.20% |
Financial Risk Management and50
Financial Risk Management and Derivatives (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Mar. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Forward foreign currency exchange contracts included in other current liabilities | $ 1,542,000 | $ 1,542,000 | $ 1,193,000 | ||
Forward Foreign Currency Exchange Contracts [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Notional amount of foreign currency derivatives | 19,484,000 | 19,484,000 | $ 19,356,000 | ||
Forward Foreign Currency Exchange Contracts [Member] | General and Administrative Expenses [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Forward foreign currency exchange contracts | $ (527,000) | $ (361,000) | $ (349,000) | $ (128,000) |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Mar. 31, 2015 | |
Change in warrant liability measured at fair value recurring basis using significant unobservable inputs (Level 3) [Rollforward] | |||||
Total (gain) loss included in net loss | $ 1,762,000 | $ 275,000 | |||
Forward Foreign Currency Exchange Contracts [Member] | |||||
Other liabilities [Abstract] | |||||
Net loss on forward foreign currency exchange contracts | $ (527,000) | $ (361,000) | $ (349,000) | (128,000) | |
Supplier Warrant [Member] | |||||
Fair value assumptions of warrants [Abstract] | |||||
Risk-free interest rate | 0.64% | ||||
Expected life in years | 2 years | ||||
Expected volatility | 44.50% | ||||
Dividend yield | 0.00% | ||||
Probability | 0.00% | ||||
Change in warrant liability measured at fair value recurring basis using significant unobservable inputs (Level 3) [Rollforward] | |||||
Beginning balance | 11,648,000 | 8,933,000 | $ 10,506,000 | 10,047,000 | |
Newly issued | 0 | 0 | 0 | 0 | |
Total (gain) loss included in net loss | 600,000 | 1,389,000 | 1,742,000 | 275,000 | |
Exercises/settlements | 0 | 0 | 0 | 0 | |
Net transfers in (out) of Level 3 | 0 | 0 | 0 | 0 | |
Ending balance | 12,248,000 | 10,322,000 | $ 12,248,000 | 10,322,000 | |
Contingent Consideration [Member] | |||||
Fair value assumptions of warrants [Abstract] | |||||
Expected volatility | 35.00% | ||||
Probability | 90.00% | ||||
Counter party present value factor | 5.62% | ||||
Change in warrant liability measured at fair value recurring basis using significant unobservable inputs (Level 3) [Rollforward] | |||||
Beginning balance | 1,320,000 | 0 | $ 0 | 0 | |
Newly issued | 0 | 0 | 1,320,000 | 0 | |
Total (gain) loss included in net loss | 20,000 | 0 | 20,000 | 0 | |
Exercises/settlements | 0 | 0 | 0 | 0 | |
Net transfers in (out) of Level 3 | 0 | 0 | 0 | 0 | |
Ending balance | 1,340,000 | $ 0 | $ 1,340,000 | $ 0 | |
Contingent Consideration [Member] | Minimum [Member] | |||||
Fair value assumptions of warrants [Abstract] | |||||
Risk-free interest rate | 0.23% | ||||
Contingent Consideration [Member] | Maximum [Member] | |||||
Fair value assumptions of warrants [Abstract] | |||||
Risk-free interest rate | 1.28% | ||||
Recurring [Member] | |||||
Short-term investments [Abstract] | |||||
Mutual funds | 1,339,000 | $ 1,339,000 | $ 699,000 | ||
Accrued liabilities [Abstract] | |||||
Contingent consideration | 398,000 | 398,000 | 0 | ||
Other current liabilities [Abstract] | |||||
Deferred compensation | 1,339,000 | 1,339,000 | 699,000 | ||
Forward foreign currency exchange contracts | 1,542,000 | 1,542,000 | 1,193,000 | ||
Other liabilities [Abstract] | |||||
Warrant liability | 12,248,000 | 12,248,000 | 10,506,000 | ||
Contingent consideration | 942,000 | 942,000 | 0 | ||
Recurring [Member] | Level 1 [Member] | |||||
Short-term investments [Abstract] | |||||
Mutual funds | 1,339,000 | 1,339,000 | 699,000 | ||
Accrued liabilities [Abstract] | |||||
Contingent consideration | 0 | 0 | 0 | ||
Other current liabilities [Abstract] | |||||
Deferred compensation | 1,339,000 | 1,339,000 | 699,000 | ||
Forward foreign currency exchange contracts | 0 | 0 | 0 | ||
Other liabilities [Abstract] | |||||
Warrant liability | 0 | 0 | 0 | ||
Contingent consideration | 0 | 0 | 0 | ||
Recurring [Member] | Level 2 [Member] | |||||
Short-term investments [Abstract] | |||||
Mutual funds | 0 | 0 | 0 | ||
Accrued liabilities [Abstract] | |||||
Contingent consideration | 0 | 0 | 0 | ||
Other current liabilities [Abstract] | |||||
Deferred compensation | 0 | 0 | 0 | ||
Forward foreign currency exchange contracts | 1,542,000 | 1,542,000 | 1,193,000 | ||
Other liabilities [Abstract] | |||||
Warrant liability | 0 | 0 | 0 | ||
Contingent consideration | 0 | 0 | 0 | ||
Recurring [Member] | Level 3 [Member] | |||||
Short-term investments [Abstract] | |||||
Mutual funds | 0 | 0 | 0 | ||
Accrued liabilities [Abstract] | |||||
Contingent consideration | 398,000 | 398,000 | 0 | ||
Other current liabilities [Abstract] | |||||
Deferred compensation | 0 | 0 | 0 | ||
Forward foreign currency exchange contracts | 0 | 0 | 0 | ||
Other liabilities [Abstract] | |||||
Warrant liability | 12,248,000 | 12,248,000 | 10,506,000 | ||
Contingent consideration | $ 942,000 | $ 942,000 | $ 0 |
Share-based Payments (Details)
Share-based Payments (Details) - USD ($) | 6 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Stock Options [Member] | ||
Summary of Black-Scholes option pricing model assumptions used to derive weighted average fair value of stock options granted [Abstract] | ||
Weighted average risk-free interest rate | 1.73% | 1.75% |
Weighted average expected holding period | 5 years 9 months 4 days | 5 years 4 days |
Weighted average expected volatility | 46.84% | 46.02% |
Weighted average expected dividend yield | 0.00% | 0.00% |
Weighted average fair value of options granted (in dollars per share) | $ 14.13 | $ 9.65 |
Number of Shares [Roll Forward] | ||
Outstanding at beginning of period (in shares) | 1,389,254 | |
Granted (in shares) | 110,122 | 82,537 |
Exercised (in shares) | (294,757) | |
Cancelled (in shares) | 0 | |
Outstanding at end of period (in shares) | 1,204,619 | |
Weighted Average Exercise Price [Roll Forward] | ||
Outstanding at beginning of period (in dollars per share) | $ 9.97 | |
Granted (in dollars per share) | 31.13 | |
Exercised (in dollars per share) | 10.03 | |
Cancelled (in dollars per share) | 0 | |
Outstanding at end of period (in dollars per share) | $ 11.89 | |
Number of stock options exercisable (in shares) | 906,082 | |
Weighted average exercise price of stock options exercisable (in dollars per share) | $ 9.12 | |
Total unrecognized compensation expense | $ 2,547,000 | |
Weighted average vesting period over which compensation expense is expected to be recognized | 1 year 8 months 12 days | |
Restricted Stock (RSUs) [Member] | ||
Weighted Average Exercise Price [Roll Forward] | ||
Weighted average vesting period over which compensation expense is expected to be recognized | 1 year 9 months 18 days | |
Number of Shares [Roll Forward] | ||
Non-vested stock at beginning of period (in shares) | 181,443 | |
Granted (in shares) | 39,900 | 95,645 |
Vested (in shares) | (75,519) | |
Cancelled (in shares) | 0 | |
Non-vested stock at end of period (in shares) | 145,824 | |
Weighted Average Grant Date Fair Value [Roll Forward] | ||
Non-vested restricted stock at beginning of period (in dollars per share) | $ 16.84 | |
Restricted stock granted (in dollars per share) | 31.13 | |
Restricted stock vested (in dollars per share) | 15.34 | |
Restricted stock cancelled (in dollars per share) | 0 | |
Non-vested restricted stock at end of period (in dollars per share) | $ 21.53 | |
Total unrecognized compensation expense | $ 2,946,000 | |
Estimated fair value of awards granted | $ 1,242,000 | $ 2,316,000 |
Accumulated Other Comprehensi53
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at beginning of period | $ (2,873,000) | $ (822,000) | $ (2,518,000) | $ (877,000) |
Other comprehensive (loss) income, net of tax | (1,477,000) | (516,000) | (1,832,000) | (461,000) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 0 | 0 | 0 | 0 |
Balance at end of period | (4,350,000) | (1,338,000) | (4,350,000) | (1,338,000) |
Unrealized Gain (Loss) on Short-Term Investments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at beginning of period | 339,000 | 331,000 | 345,000 | 321,000 |
Other comprehensive (loss) income, net of tax | (53,000) | (3,000) | (59,000) | 7,000 |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 0 | 0 | 0 | 0 |
Balance at end of period | 286,000 | 328,000 | 286,000 | 328,000 |
Foreign Currency Translation [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at beginning of period | (3,212,000) | (1,153,000) | (2,863,000) | (1,198,000) |
Other comprehensive (loss) income, net of tax | (1,424,000) | (513,000) | (1,773,000) | (468,000) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 0 | 0 | 0 | 0 |
Balance at end of period | $ (4,636,000) | $ (1,666,000) | $ (4,636,000) | $ (1,666,000) |
Litigation (Details)
Litigation (Details) - USD ($) | Oct. 26, 2015 | Sep. 30, 2015 | Mar. 31, 2015 | May. 31, 2011 |
Business Acquisition [Line Items] | ||||
Recorded amount of accruals for litigation settlement net of insurance recovery | $ 16,948,000 | $ 10,096,000 | ||
M&T Bank and Trustee [Member] | Subsequent Event [Member] | ||||
Business Acquisition [Line Items] | ||||
Amount of litigation settlement | $ 18,500,000 | |||
Amount of litigation settlement paid by Company insurers | $ 9,250,000 | |||
Recorded amount of accruals for litigation settlement net of insurance recovery | $ 9,250,000 | |||
Fapco [Member] | ||||
Business Acquisition [Line Items] | ||||
Direct ownership interest acquired | 1.00% | |||
FAPL's ownership interest prior to acquisition | 99.00% | |||
Combined direct and indirect ownership interest subsequent to acquisition | 100.00% |