Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Sep. 30, 2016 | Nov. 02, 2016 | |
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 | 18,665,196 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2016 | Mar. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 5,452,000 | $ 21,897,000 |
Short-term investments | 2,233,000 | 1,813,000 |
Accounts receivable - net | 16,112,000 | 8,548,000 |
Inventory - net | 72,164,000 | 58,060,000 |
Inventory unreturned | 10,228,000 | 10,520,000 |
Deferred income taxes | 34,414,000 | 33,347,000 |
Prepaid expenses and other current assets | 7,796,000 | 5,900,000 |
Total current assets | 148,399,000 | 140,085,000 |
Plant and equipment - net | 17,227,000 | 16,099,000 |
Long-term core inventory - net | 251,048,000 | 241,100,000 |
Long-term core inventory deposits | 5,569,000 | 5,569,000 |
Long-term deferred income taxes | 457,000 | 236,000 |
Goodwill | 2,476,000 | 2,053,000 |
Intangible assets - net | 4,316,000 | 4,573,000 |
Other assets | 8,176,000 | 3,657,000 |
TOTAL ASSETS | 437,668,000 | 413,372,000 |
Current liabilities: | ||
Accounts payable | 74,845,000 | 72,152,000 |
Accrued liabilities | 6,938,000 | 9,101,000 |
Customer finished goods returns accrual | 19,761,000 | 26,376,000 |
Accrued core payment | 11,174,000 | 8,989,000 |
Revolving loan | 19,000,000 | 7,000,000 |
Other current liabilities | 9,757,000 | 4,698,000 |
Current portion of term loan | 3,064,000 | 3,067,000 |
Total current liabilities | 144,539,000 | 131,383,000 |
Term loan, less current portion | 18,447,000 | 19,980,000 |
Long-term accrued core payment | 17,996,000 | 17,550,000 |
Long-term deferred income taxes | 13,675,000 | 14,315,000 |
Other liabilities | 14,187,000 | 19,336,000 |
Total liabilities | 208,844,000 | 202,564,000 |
Commitments and contingencies | ||
Shareholders' equity: | ||
Preferred stock | 0 | 0 |
Common stock; par value $.01 per share, 50,000,000 shares authorized; 18,665,196 and 18,531,751 shares issued and outstanding at September 30, 2016 and March 31, 2016, respectively | 187,000 | 185,000 |
Additional paid-in capital | 205,375,000 | 203,650,000 |
Retained earnings | 29,368,000 | 11,825,000 |
Accumulated other comprehensive loss | (6,106,000) | (4,852,000) |
Total shareholders' equity | 228,824,000 | 210,808,000 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 437,668,000 | 413,372,000 |
Series A Junior Participating Preferred Stock [Member] | ||
Shareholders' equity: | ||
Preferred stock | $ 0 | $ 0 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2016 | Mar. 31, 2016 |
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) | 18,665,196 | 18,531,751 |
Common stock, outstanding (in shares) | 18,665,196 | 18,531,751 |
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, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Consolidated Statements of Operations (Unaudited) [Abstract] | ||||
Net sales | $ 108,836,000 | $ 91,670,000 | $ 194,248,000 | $ 177,505,000 |
Cost of goods sold | 78,178,000 | 69,850,000 | 143,199,000 | 129,694,000 |
Gross profit | 30,658,000 | 21,820,000 | 51,049,000 | 47,811,000 |
Operating expenses: | ||||
General and administrative | 9,869,000 | 18,219,000 | 13,494,000 | 29,579,000 |
Sales and marketing | 2,707,000 | 2,632,000 | 5,341,000 | 4,912,000 |
Research and development | 905,000 | 646,000 | 1,774,000 | 1,382,000 |
Total operating expenses | 13,481,000 | 21,497,000 | 20,609,000 | 35,873,000 |
Operating income | 17,177,000 | 323,000 | 30,440,000 | 11,938,000 |
Interest expense, net | 3,189,000 | 2,613,000 | 6,008,000 | 11,050,000 |
Income (loss) before income tax expense (benefit) | 13,988,000 | (2,290,000) | 24,432,000 | 888,000 |
Income tax expense (benefit) | 4,845,000 | (898,000) | 7,781,000 | 370,000 |
Net income (loss) | $ 9,143,000 | $ (1,392,000) | $ 16,651,000 | $ 518,000 |
Basic net income (loss) per share (in dollars per share) | $ 0.49 | $ (0.08) | $ 0.90 | $ 0.03 |
Diluted net income (loss) per share (in dollars per share) | $ 0.47 | $ (0.08) | $ 0.86 | $ 0.03 |
Weighted average number of shares outstanding: | ||||
Basic (in shares) | 18,641,324 | 18,215,783 | 18,544,118 | 18,109,912 |
Diluted (in shares) | 19,429,390 | 18,215,783 | 19,384,668 | 18,887,153 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) [Abstract] | ||||
Net income (loss) | $ 9,143,000 | $ (1,392,000) | $ 16,651,000 | $ 518,000 |
Other comprehensive income (loss), net of tax: | ||||
Unrealized gain (loss) on short-term investments (net of tax of $44,000, $(36,000), $59,000, and $(40,000)) | 66,000 | (53,000) | 88,000 | (59,000) |
Foreign currency translation loss | (807,000) | (1,424,000) | (1,342,000) | (1,773,000) |
Total other comprehensive loss, net of tax | (741,000) | (1,477,000) | (1,254,000) | (1,832,000) |
Comprehensive income (loss) | $ 8,402,000 | $ (2,869,000) | $ 15,397,000 | $ (1,314,000) |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (Parenthetical) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Other comprehensive income (loss), net of tax: | ||||
Unrealized gain (loss) on short-term investments, tax | $ 44,000 | $ (36,000) | $ 59,000 | $ (40,000) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 16,651,000 | $ 518,000 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Depreciation | 1,480,000 | 1,100,000 |
Amortization of intangible assets | 290,000 | 331,000 |
Amortization of debt issuance costs | 355,000 | 482,000 |
Write-off of debt issuance costs | 0 | 5,108,000 |
Amortization of interest on accrued core payments | 370,000 | 385,000 |
(Gain) loss due to change in fair value of the warrant liability | (4,765,000) | 1,762,000 |
(Gain) loss due to change in fair value of the contingent consideration | (16,000) | 0 |
Net provision for inventory reserves | 1,020,000 | 2,362,000 |
Net provision for (recovery of) customer payment discrepancies | 7,000 | (90,000) |
Net provision for (recovery of) doubtful accounts | (12,000) | (83,000) |
Deferred income taxes | (1,167,000) | (2,877,000) |
Share-based compensation expense | 1,737,000 | 1,033,000 |
Loss on disposal of plant and equipment | 1,000 | 0 |
Changes in current assets and liabilities: | ||
Accounts receivable | (7,493,000) | 16,573,000 |
Inventory | (14,305,000) | 7,641,000 |
Inventory unreturned | 292,000 | (2,808,000) |
Prepaid expenses and other current assets | (1,936,000) | (2,475,000) |
Other assets | (4,549,000) | (239,000) |
Accounts payable and accrued liabilities | 288,000 | 12,403,000 |
Customer finished goods returns accrual | (6,615,000) | (473,000) |
Long-term core inventory | (10,643,000) | (42,045,000) |
Long-term core inventory deposits | 0 | 26,002,000 |
Accrued core payments | 2,261,000 | (6,515,000) |
Other liabilities | 4,433,000 | 1,082,000 |
Net cash (used in) provided by operating activities | (22,316,000) | 19,177,000 |
Cash flows from investing activities: | ||
Purchase of plant and equipment | (2,594,000) | (2,730,000) |
Purchase of business | (600,000) | (3,200,000) |
Change in short-term investments | (270,000) | (739,000) |
Net cash used in investing activities | (3,464,000) | (6,669,000) |
Cash flows from financing activities: | ||
Borrowings under revolving loan | 24,000,000 | 15,000,000 |
Repayments of revolving loan | (12,000,000) | 0 |
Borrowings under term loan | 0 | 25,000,000 |
Repayments of term loan | (1,563,000) | (84,500,000) |
Payments for debt issuance costs | (444,000) | (2,212,000) |
Payments on capital lease obligations | (221,000) | (164,000) |
Payment of contingent consideration | (314,000) | 0 |
Exercise of stock options | 1,047,000 | 2,956,000 |
Excess tax benefits from stock-based compensation | 0 | 2,975,000 |
Cash used to net share settle equity awards | (1,057,000) | (913,000) |
Net cash provided by (used in) financing activities | 9,448,000 | (41,858,000) |
Effect of exchange rate changes on cash and cash equivalents | (113,000) | (182,000) |
Net decrease in cash and cash equivalents | (16,445,000) | (29,532,000) |
Cash and cash equivalents - Beginning of period | 21,897,000 | 61,230,000 |
Cash and cash equivalents - End of period | 5,452,000 | 31,698,000 |
Cash paid during the period for: | ||
Interest, net | 5,224,000 | 5,214,000 |
Income taxes, net of refunds | 5,063,000 | 2,472,000 |
Non-cash investing and financing activities: | ||
Plant and equipment acquired under capital lease | 312,000 | 1,569,000 |
Contingent consideration | $ 0 | $ 1,320,000 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Sep. 30, 2016 | |
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, 2016 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2017. 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, 2016, which are included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on June 14, 2016, as amended by the Form 10-K/A filed with the SEC on July 29, 2016. 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, 2016. |
Company Background and Organiza
Company Background and Organization | 6 Months Ended |
Sep. 30, 2016 | |
Company Background and Organization [Abstract] | |
Company Background and Organization | 1. Company Background and Organization 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 current products include 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 Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”), for segment reporting, the Company has identified its chief executive officer as its chief operating decision maker (“CODM”), has reviewed the documents used by the CODM, and understands how such documents are used by the CODM to make financial and operating decisions. The Company has determined through this review process that it has one reportable segment for purposes of recording and reporting its financial results. |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Sep. 30, 2016 | |
New Accounting Pronouncements [Abstract] | |
New Accounting Pronouncements | 2. New Accounting Pronouncements Recently Adopted Accounting Standards Share-based Compensation In March 2016, the FASB issued guidance that simplifies several aspects of the accounting for share-based payment transactions and states that, among other things, all excess tax benefits and tax deficiencies should be recognized as income tax expense or benefit in the income statement and an entity can make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. Extraordinary Items In January 2015, the FASB issued guidance that simplifies income statement presentation by eliminating the concept Accounting Standards Not Yet Adopted 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. 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, including interim periods within those fiscal years. 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 the provisions of this guidance will have on its consolidated financial statements. Income Taxes In November 2015, the FASB issued guidance that requires deferred tax liabilities and assets to be classified as noncurrent in the consolidated balance sheet. The guidance is effective for fiscal years beginning after The Company is Financial Instruments In January 2016, the FASB issued guidance that addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. currently evaluating the impact the provisions of this guidance will have on its consolidated financial statements. Leases In February 2016, the FASB issued new guidance that requires balance sheet recognition of a right-of-use asset and lease liability by lessees for operating leases. The new guidance also requires new disclosures providing additional qualitative and quantitative information about the amounts recorded in the financial statements. The new guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The new guidance requires a modified retrospective approach with optional practical expedients. The Company is currently evaluating the impact the provisions of this guidance will have on its consolidated financial statements. Statement of Cash Flows In August 2016, the FASB issued guidance which adds and/or clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows. The new guidance is intended to reduce diversity in practice in how certain transactions are presented and classified in the statement of cash flows. The new guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact the provisions of this guidance will have on its consolidated statements of cash flows. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Sep. 30, 2016 | |
Intangible Assets [Abstract] | |
Intangible Assets | 3. Intangible Assets The following is a summary of acquired intangible assets subject to amortization: September 30, 2016 March 31, 2016 Weighted Average Amortization Period Gross Carrying Value Accumulated Amortization Gross Carrying Value Accumulated Amortization Intangible assets subject to amortization Trademarks 11 years $ 705,000 $ 159,000 $ 705,000 $ 127,000 Non-compete agreement 1 year 33,000 - - - Customer relationships 13 years 5,900,000 2,163,000 5,900,000 1,905,000 Total $ 6,638,000 $ 2,322,000 $ 6,605,000 $ 2,032,000 Amortization expense for acquired intangible assets is as follows: Three Months Ended September 30, Six Months Ended September 30, 2016 2015 2016 2015 Amortization expense $ 145,000 $ 157,000 $ 290,000 $ 331,000 The estimated future amortization expense for acquired intangible assets subject to amortization is as follows: Year Ending March 31, 2017 - remaining six months $ 306,000 2018 597,000 2019 580,000 2020 580,000 2021 580,000 Thereafter 1,673,000 Total $ 4,316,000 |
Accounts Receivable - Net
Accounts Receivable - Net | 6 Months Ended |
Sep. 30, 2016 | |
Accounts Receivable - Net [Abstract] | |
Accounts Receivable - Net | 4. Accounts Receivable — Net 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, 2016 March 31, 2016 Accounts receivable — trade $ 65,494,000 $ 62,206,000 Allowance for bad debts (4,300,000 ) (4,284,000 ) Customer allowances earned (9,538,000 ) (12,029,000 ) Customer payment discrepancies (703,000 ) (703,000 ) Customer returns RGA issued (15,619,000 ) (6,561,000 ) Customer core returns accruals (19,222,000 ) (30,081,000 ) Less: total accounts receivable offset accounts (49,382,000 ) (53,658,000 ) Total accounts receivable — net $ 16,112,000 $ 8,548,000 Warranty Returns The Company allows its customers to return goods to the Company that their end-user customers have returned to them, whether the returned item is or is not defective (warranty returns). The Company accrues an estimate of its exposure to warranty returns based on a historical analysis of the level of this type of return as a percentage of total unit sales. Amounts charged to expense for these warranty returns are considered in arriving at the Company’s net sales. At September 30, 2016 and March 31, 2016, the Company’s total warranty return accrual was $13,707,000 and $10,845,000, respectively, of which of $7,845,000 and $4,612,000, respectively, was included in the customer returns RGA issued balance in the above table for expected credits to be issued against accounts receivable and $5,862,000 and $6,233,000, respectively, was included in the customer finished goods returns accrual in the consolidated balance sheets for estimated future warranty returns. The following summarizes the changes in the Company’s warranty return accrual: Three Months Ended September 30, Six Months Ended September 30, 2016 2015 2016 2015 Balance at beginning of period $ 11,559,000 $ 9,785,000 $ 10,845,000 $ 10,904,000 Charged to expense/additions 28,179,000 22,442,000 50,873,000 39,813,000 Amounts processed (26,031,000 ) (22,023,000 ) (48,011,000 ) (40,513,000 ) Balance at end of period $ 13,707,000 $ 10,204,000 $ 13,707,000 $ 10,204,000 |
Inventory
Inventory | 6 Months Ended |
Sep. 30, 2016 | |
Inventory [Abstract] | |
Inventory | 5. Inventory Inventory is comprised of the following: September 30, 2016 March 31, 2016 Non-core inventory Raw materials $ 22,185,000 $ 17,394,000 Work-in-process 964,000 135,000 Finished goods 51,776,000 42,982,000 74,925,000 60,511,000 Less allowance for excess and obsolete inventory (2,761,000 ) (2,451,000 ) Total $ 72,164,000 $ 58,060,000 Inventory unreturned $ 10,228,000 $ 10,520,000 Long-term core inventory Used cores held at the Company's facilities $ 35,760,000 $ 34,405,000 Used cores expected to be returned by customers 16,303,000 10,781,000 Remanufactured cores held in finished goods 26,865,000 24,489,000 Remanufactured cores held at customers' locations 173,665,000 172,600,000 252,593,000 242,275,000 Less allowance for excess and obsolete inventory (1,545,000 ) (1,175,000 ) Total $ 251,048,000 $ 241,100,000 Long-term core inventory deposits $ 5,569,000 $ 5,569,000 |
Significant Customer and Other
Significant Customer and Other Information | 6 Months Ended |
Sep. 30, 2016 | |
Significant Customer and Other Information [Abstract] | |
Significant Customer and Other Information | 6. Significant Customer and Other Information Significant Customer Concentrations 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 2016 2015 2016 2015 Customer A 45 % 46 % 48 % 48 % Customer B 21 % 21 % 18 % 20 % Customer C 19 % 21 % 19 % 19 % The Company’s largest customers accounted for the following total percentage of accounts receivable—trade: Accounts receivable - trade September 30, 2016 March 31, 2016 Customer A 52 % 37 % Customer B 8 % 17 % Customer C 12 % 15 % Geographic and Product Information The Company’s products are predominantly sold in the U.S. and accounted for the following total percentage of net sales: Three Months Ended September 30, Six Months Ended September 30, 2016 2015 2016 2015 Rotating electrical products 80 % 85 % 76 % 81 % Wheel hub products 20 % 19 % 21 % 18 % Brake master cylinders products 3 % (4 )% 4 % 1 % Other products (3 )% - % (1 )% - % 100 % 100 % 100 % 100 % Significant Supplier Concentrations The Company had no suppliers that accounted for more than 10% of inventory purchases for the three and six months ended September 30, 2016 and 2015. |
Debt
Debt | 6 Months Ended |
Sep. 30, 2016 | |
Debt [Abstract] | |
Debt | 7. Debt The Company has the following credit agreements. Credit Facility The Company is party to a $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 “Revolving Facility”) and (ii) a $25,000,000 term loan facility (the “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 Credit Facility permits the payment of up to $10,000,000 of dividends per calendar year, subject to a minimum availability threshold and pro forma compliance with financial covenants. In May 2016, the Company entered into a consent and second amendment to the Credit Facility (the “Second Amendment”) which, among other things, (i) increased the borrowing capacity of the Revolving Facility from $100,000,000 to $120,000,000, subject to certain borrowing base restrictions and a $15,000,000 sublimit for letters of credit, (ii) amended the definition and calculation of consolidated EBITDA, (iii) increased the maximum of amount of capital expenditures, and (iv) made certain other amendments and modifications. The Term Loans require quarterly principal payments of $781,250. The Credit Facility bears 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 senior leverage ratio as of the applicable measurement date. There is also a facility fee of 0.25% to 0.375%, depending on the senior leverage ratio as of the applicable measurement date. The interest rate on the Company’s Term Loans and Revolving Facility was 3.28% and 4.21%, respectively, at September 30, 2016 and 2.94% and 3.53%, respectively, at March 31, 2016. The Credit Facility, among other things, requires the Company to maintain certain financial covenants including a maximum senior leverage ratio and a minimum fixed charge coverage ratio. The Company was in compliance with all financial covenants as of September 30, 2016. In addition to other covenants, the Credit Facility places limits on the Company’s ability to incur liens, incur additional indebtedness, make loans and investments, engage in mergers and acquisitions, engage in asset sales, redeem or repurchase capital stock, alter the business conducted by the Company and its subsidiaries, transact with affiliates, prepay, redeem or purchase subordinated debt, and amend or otherwise alter debt agreements. The following summarizes information about the Company’s Term Loans at: September 30, 2016 March 31, 2016 Principal amount of term loan $ 21,875,000 $ 23,438,000 Unamortized financing fees (364,000 ) (391,000 ) Net carrying amount of term loan 21,511,000 23,047,000 Less current portion of term loan (3,064,000 ) (3,067,000 ) Long-term portion of term loan $ 18,447,000 $ 19,980,000 Future repayments of the Company’s Term Loans, by fiscal year, are as follows: Year Ending March 31, 2017 - remaining six months 1,562,000 2018 3,125,000 2019 3,125,000 2020 3,125,000 2021 10,938,000 Total payments $ 21,875,000 The Company had $19,000,000 and $7,000,000 outstanding under the Revolving Facility at September 30, 2016 and March 31, 2016, respectively. In addition, $260,000 was reserved for standby letters of credit for workers’ compensation insurance and $600,000 for commercial letters of credit at September 30, 2016. At September 30, 2016, $100,140,000, subject to certain adjustments, was available under the 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 $10,878,000 and $15,643,000 at September 30, 2016 and March 31, 2016, respectively. These amounts are included in other liabilities in the consolidated balance sheets. The warrant liability continues to be classified as a noncurrent liability at September 30, 2016 as the Company does not expect to settle this amount in cash. During the three months ended September 30, 2016 and 2015, a loss of $824,000 and $600,000, 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, 2016 and 2015, a gain of $4,765,000 and a loss of $1,742,000, 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, 2016 | |
Accounts Receivable Discount Programs [Abstract] | |
Accounts Receivable Discount Programs | 8. Accounts Receivable Discount Programs 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 receipt of payment on customers’ receivables. The following is a summary of the Company’s accounts receivable discount programs: Six Months Ended September 30, 2016 2015 Receivables discounted $ 167,670,000 $ 167,905,000 Weighted average days 341 342 Annualized weighted average discount rate 2.8 % 2.2 % Amount of discount as interest expense $ 4,408,000 $ 3,452,000 |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 6 Months Ended |
Sep. 30, 2016 | |
Net Income (Loss) Per Share [Abstract] | |
Net Income (Loss) Per Share | 9. Net Income (Loss) Per Share Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) 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 income (loss) per share: Three Months Ended September 30, Six Months Ended September 30, 2016 2015 2016 2015 Net income (loss) $ 9,143,000 $ (1,392,000 ) $ 16,651,000 $ 518,000 Basic shares 18,641,324 18,215,783 18,544,118 18,109,912 Effect of potentially dilutive securities 788,066 - 840,550 777,241 Diluted shares 19,429,390 18,215,783 19,384,668 18,887,153 Net income (loss) per share: Basic net income (loss) per share $ 0.49 $ (0.08 ) $ 0.90 $ 0.03 Diluted net income (loss) per share $ 0.47 $ (0.08 ) $ 0.86 $ 0.03 The effect of dilutive options excludes (i) 291,215 shares subject to options with exercise prices ranging from $28.68 to $34.17 per share for the three months ended September, 30, 2016, (ii) 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, (iii) 108,815 shares subject to options with exercise prices ranging from $30.91 to $34.17 per share for the six months ended September 30, 2016, and (iv) 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. |
Income Taxes
Income Taxes | 6 Months Ended |
Sep. 30, 2016 | |
Income Taxes [Abstract] | |
Income Taxes | 10. Income Taxes The Company recorded income tax expense for the three months ended September 30, 2016 of $4,845,000, or an effective tax rate of 34.6%, and an income tax benefit for the three months ended September 30, 2015 of $898,000, or an effective tax rate of 39.2%. The Company recorded income tax expense for the six months ended September 30, 2016 and 2015 of $7,781,000, or an effective tax rate of 31.8%, and $370,000, or an effective tax rate of 41.7%, respectively. The Company’s income tax rates for the three and six months ended September 30, 2016 were positively impacted by $199,000 and $590,000, respectively, of excess tax benefits reflected in income tax expense as a result of the early adoption of the FASB’s new guidance on share-based compensation. The income tax rate for the six months ended September 30, 2016 was further impacted by a non-taxable gain in connection with the fair value adjustment on the warrants compared to a non-deductible loss for the six months ended September 30, 2015. In addition, the income tax rates for all periods are increased by the inclusion of state income taxes and non-deductible executive compensation under Internal Revenue Code Section 162(m) These increases in all periods were partially offset by the benefit of lower statutory tax rates in foreign taxing jurisdictions. The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions with varying statutes of limitations. The Internal Revenue Services (“IRS”) audit for the fiscal years ended March 31, 2011, 2012, 2013, and 2014 were collectively concluded in May 2016. It was primarily agreed that the Company’s approximately $80,000,000 of ordinary bad debt deduction would be disallowed on its March 31, 2013 return and instead would be reclassified as deductible section165(g)(3) loss on its March 31, 2014 return. Pursuant to this IRS exam adjustment, and certain other less significant findings, the disallowed losses which were carried back to offset taxable income on the Company’s March 31, 2011 return were reclaimed by the IRS. However the same losses, reclassified as noted above, were carried back two years to offset taxable income on the Company’s March 31, 2012 and 2013 tax returns. The remaining net operating losses were carried forward on to the Company’s March 31, 2014 tax return, and to the extent additional net operating losses remain will also offset taxable income in future years. The impact of the reclassification and other findings resulted in no material increase in tax expense from changes in taxable income, but the Company incurred additional interest charges of approximately $460,000. These charges were accrued for in the final quarter of the year ended March 31, 2016. There is no impact from the conclusion of these audits in the income tax expenses for the current period ended September 30, 2016. The Company is also under examination by the State of California for the years ended March 31, 2013 and 2014. 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, 2016 | |
Financial Risk Management and Derivatives [Abstract] | |
Financial Risk Management and Derivatives | 11. Financial Risk Management and Derivatives 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 currencies. 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 between the U.S. dollar and the foreign currencies. 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 $27,011,000 and $18,917,000 at September 30, 2016 and March 31, 2016, 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 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 shows the effect of the Company’s derivative instruments on its consolidated statements of operations: Gain (Loss) Recognized within General and Administrative Expenses Derivatives Not Designated as Three Months Ended September 30, Six Months Ended September 30, Hedging Instruments 2016 2015 2016 2015 Forward foreign currency exchange contracts $ (507,000 ) $ (527,000 ) $ (1,186,000 ) $ (349,000 ) The fair value of the forward foreign currency exchange contracts of $1,602,000 and $416,000 is included in other current liabilities in the consolidated balance sheets at September 30, 2016 and March 31, 2016, respectively. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Sep. 30, 2016 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 12. Fair Value Measurements The following summarizes the Company’s financial assets and liabilities measured at fair value, by level within the fair value hierarchy: September 30, 2016 March 31, 2016 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 $ 2,233,000 $ 2,233,000 - - $ 1,813,000 $ 1,813,000 - - Liabilities Accrued liabilities Contingent consideration - - - - 224,000 - - $ 224,000 Other current liabilities Deferred compensation 2,233,000 2,233,000 - - 1,813,000 1,813,000 - - Forward foreign currency exchange contracts 1,602,000 - $ 1,602,000 - 416,000 - $ 416,000 - Other liabilities Warrant liability 10,878,000 - - $ 10,878,000 15,643,000 - - 15,643,000 Contingent consideration - - - - 106,000 - - 106,000 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 Contracts 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, 2016 and 2015, a loss of $507,000 and $527,000, 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, 2016 and 2015, a loss of $1,186,000 and $349,000, 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 warrant liability is included in other liabilities in the consolidated balance sheets. 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 following assumptions were used to determine the fair value of the Supplier Warrant: Supplier Warrant Risk free interest rate 0.59 % Expected life in years 1.00 Expected volatility 39.00 % 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 Company estimated the fair value of the contingent consideration liability using level 3 inputs and an option-pricing model at each balance sheet date. This amount was recorded in accrued expenses in the Company’s consolidated balance sheet at March 31, 2016. Any subsequent changes from the initial recognition in the fair value of the contingent consideration were recorded in current period earnings as a general and administrative expense. On June 21, 2016, the Company entered into a full release and settlement agreement with former owners of OE Plus Ltd., pursuant to which the Company agreed to pay $314,000 in full and complete satisfaction of all payments of any sort otherwise owed by the Company in connection with the May 2015 asset purchase agreement. This amount was paid in full on July 6, 2016. During the six months ended September 30, 2016, a gain of $16,000 was recorded in general and administrative expenses due to the change in the fair value of the contingent consideration. 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 following summarizes the activity for Level 3 fair value measurements: Three Months Ended September 30, Six Months Ended September 30, 2016 2015 2016 2015 Supplier Contingent Supplier Contingent Supplier Contingent Supplier Contingent Beginning balance $ 10,054,000 $ 314,000 $ 11,648,000 $ 1,320,000 $ 15,643,000 $ 330,000 $ 10,506,000 $ - Newly issued - - - - - - - 1,320,000 Total (gain) loss included in net income (loss) 824,000 - 600,000 20,000 (4,765,000 ) (16,000 ) 1,742,000 20,000 Exercises/settlements - (314,000 ) - - - (314,000 ) - - Net transfers in (out) of Level 3 - - - - - - - - Ending balance $ 10,878,000 $ - $ 12,248,000 $ 1,340,000 $ 10,878,000 $ - $ 12,248,000 $ 1,340,000 During the three and six months ended September 30, 2016, 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 and cash equivalents, 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 loan, term loan 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, 2016 | |
Share-based Payments [Abstract] | |
Share-based Payments | 13. Share-based Payments Stock Options The Company granted options to purchase 184,000 and 110,122 shares of common stock during the six months ended September 30, 2016 and 2015, 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 following assumptions were used to derive the weighted average fair value of the stock options granted: Six Months Ended September 30, 2016 2015 Weighted average risk free interest rate 1.38 % 1.73 % Weighted average expected holding period (years) 5.84 5.76 Weighted average expected volatility 47.42 % 46.84 % Weighted average expected dividend yield - - Weighted average fair value of options granted $ 13.07 $ 14.13 The following is a summary of stock option transactions: Number of Shares Weighted Average Exercise Price Outstanding at March 31, 2016 984,066 $ 11.98 Granted 184,000 $ 28.67 Exercised (83,133 ) $ 12.60 Cancelled - $ - Outstanding at September 30, 2016 1,084,933 $ 14.76 At September 30, 2016, options to purchase 283,469 shares of common stock were unvested at the weighted average exercise price of $13.02. At September 30, 2016, there was $3,418,000 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 2.3 years. Restricted Stock or Restricted Stock Units (collectively “RS”) During the six months ended September 30, 2016 and 2015, the Company granted 42,876 and 39,900 shares of RS, respectively, with an estimated grant date fair value of $1,224,000 and $1,242,000, respectively, which was based on the closing market price on the grant date. The following is a summary of non-vested RS: Number of Shares Weighted Average Grant Date Fair Value Non-vested at March 31, 2016 153,527 $ 22.28 Granted 42,876 $ 28.54 Vested (86,854 ) $ 17.67 Cancelled - $ - Non-vested at September 30, 2016 109,549 $ 28.39 At September 30, 2016, there was $2,648,000 of total unrecognized compensation expense related to these awards, which will be recognized over the remaining weighted average vesting period of approximately 1.9 years. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Sep. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 14. Accumulated Other Comprehensive Income (Loss) The following summarizes changes in accumulated other comprehensive income (loss): Three Months Ended September 30, 2016 Three Months Ended September 30, 2015 Unrealized Gain on Short-Term Investments Foreign Currency Translation Total Unrealized Gain (Loss) on Short-Term Investments Foreign Currency Translation Total Balance at beginning of period $ 354,000 $ (5,719,000 ) $ (5,365,000 ) $ 339,000 $ (3,212,000 ) $ (2,873,000 ) Other comprehensive income (loss), net of tax 66,000 (807,000 ) (741,000 ) (53,000 ) (1,424,000 ) (1,477,000 ) Amounts reclassified from accumulated other comprehensive loss, net of tax - - - - - - Balance at end of period $ 420,000 $ (6,526,000 ) $ (6,106,000 ) $ 286,000 $ (4,636,000 ) $ (4,350,000 ) Six Months Ended September 30, 2016 Six Months Ended September 30, 2015 Unrealized Gain on Short-Term Investments Foreign Currency Translation Total Unrealized Gain (Loss) on Short-Term Investments Foreign Currency Translation Total Balance at beginning of period $ 332,000 $ (5,184,000 ) $ (4,852,000 ) $ 345,000 $ (2,863,000 ) $ (2,518,000 ) Other comprehensive income (loss), net of tax 88,000 (1,342,000 ) (1,254,000 ) (59,000 ) (1,773,000 ) (1,832,000 ) Amounts reclassified from accumulated other comprehensive loss, net of tax - - - - - - Balance at end of period $ 420,000 $ (6,526,000 ) $ (6,106,000 ) $ 286,000 $ (4,636,000 ) $ (4,350,000 ) |
Acquisitions
Acquisitions | 6 Months Ended |
Sep. 30, 2016 | |
Acquisitions [Abstract] | |
Acquisitions | 15. Acquisitions On July 21, 2016, the Company completed the acquisition of certain assets and assumption of certain liabilities of Zor Industries USA LLC (“ZOR”), a privately held manufacturer and remanufacturer of turbochargers based in Winchester, Virginia. The acquisition was consummated pursuant to an asset purchase agreement for an initial purchase price of $600,000, subject to certain working capital adjustments. The assets and results of operations of ZOR were not significant to the Company’s consolidated financial position or results of operations, and thus pro forma information is not presented. |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 6 Months Ended |
Sep. 30, 2016 | |
New Accounting Pronouncements [Abstract] | |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards Share-based Compensation In March 2016, the FASB issued guidance that simplifies several aspects of the accounting for share-based payment transactions and states that, among other things, all excess tax benefits and tax deficiencies should be recognized as income tax expense or benefit in the income statement and an entity can make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. Extraordinary Items In January 2015, the FASB issued guidance that simplifies income statement presentation by eliminating the concept |
Accounting Standards Not Yet Adopted | Accounting Standards Not Yet Adopted 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. 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, including interim periods within those fiscal years. 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 the provisions of this guidance will have on its consolidated financial statements. Income Taxes In November 2015, the FASB issued guidance that requires deferred tax liabilities and assets to be classified as noncurrent in the consolidated balance sheet. The guidance is effective for fiscal years beginning after The Company is Financial Instruments In January 2016, the FASB issued guidance that addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. currently evaluating the impact the provisions of this guidance will have on its consolidated financial statements. Leases In February 2016, the FASB issued new guidance that requires balance sheet recognition of a right-of-use asset and lease liability by lessees for operating leases. The new guidance also requires new disclosures providing additional qualitative and quantitative information about the amounts recorded in the financial statements. The new guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The new guidance requires a modified retrospective approach with optional practical expedients. The Company is currently evaluating the impact the provisions of this guidance will have on its consolidated financial statements. Statement of Cash Flows In August 2016, the FASB issued guidance which adds and/or clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows. The new guidance is intended to reduce diversity in practice in how certain transactions are presented and classified in the statement of cash flows. The new guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact the provisions of this guidance will have on its consolidated statements of cash flows. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Intangible Assets [Abstract] | |
Intangible assets subject to amortization | The following is a summary of acquired intangible assets subject to amortization: September 30, 2016 March 31, 2016 Weighted Average Amortization Period Gross Carrying Value Accumulated Amortization Gross Carrying Value Accumulated Amortization Intangible assets subject to amortization Trademarks 11 years $ 705,000 $ 159,000 $ 705,000 $ 127,000 Non-compete agreement 1 year 33,000 - - - Customer relationships 13 years 5,900,000 2,163,000 5,900,000 1,905,000 Total $ 6,638,000 $ 2,322,000 $ 6,605,000 $ 2,032,000 |
Amortization expense for acquired intangible assets | Amortization expense for acquired intangible assets is as follows: Three Months Ended September 30, Six Months Ended September 30, 2016 2015 2016 2015 Amortization expense $ 145,000 $ 157,000 $ 290,000 $ 331,000 |
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, 2017 - remaining six months $ 306,000 2018 597,000 2019 580,000 2020 580,000 2021 580,000 Thereafter 1,673,000 Total $ 4,316,000 |
Accounts Receivable - Net (Tabl
Accounts Receivable - Net (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Accounts Receivable - Net [Abstract] | |
Schedule of accounts receivable | Accounts receivable — net is comprised of the following: September 30, 2016 March 31, 2016 Accounts receivable — trade $ 65,494,000 $ 62,206,000 Allowance for bad debts (4,300,000 ) (4,284,000 ) Customer allowances earned (9,538,000 ) (12,029,000 ) Customer payment discrepancies (703,000 ) (703,000 ) Customer returns RGA issued (15,619,000 ) (6,561,000 ) Customer core returns accruals (19,222,000 ) (30,081,000 ) Less: total accounts receivable offset accounts (49,382,000 ) (53,658,000 ) Total accounts receivable — net $ 16,112,000 $ 8,548,000 |
Schedule of warranty return accrual | The following summarizes the changes in the Company’s warranty return accrual: Three Months Ended September 30, Six Months Ended September 30, 2016 2015 2016 2015 Balance at beginning of period $ 11,559,000 $ 9,785,000 $ 10,845,000 $ 10,904,000 Charged to expense/additions 28,179,000 22,442,000 50,873,000 39,813,000 Amounts processed (26,031,000 ) (22,023,000 ) (48,011,000 ) (40,513,000 ) Balance at end of period $ 13,707,000 $ 10,204,000 $ 13,707,000 $ 10,204,000 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Inventory [Abstract] | |
Schedule of inventory | Inventory is comprised of the following: September 30, 2016 March 31, 2016 Non-core inventory Raw materials $ 22,185,000 $ 17,394,000 Work-in-process 964,000 135,000 Finished goods 51,776,000 42,982,000 74,925,000 60,511,000 Less allowance for excess and obsolete inventory (2,761,000 ) (2,451,000 ) Total $ 72,164,000 $ 58,060,000 Inventory unreturned $ 10,228,000 $ 10,520,000 Long-term core inventory Used cores held at the Company's facilities $ 35,760,000 $ 34,405,000 Used cores expected to be returned by customers 16,303,000 10,781,000 Remanufactured cores held in finished goods 26,865,000 24,489,000 Remanufactured cores held at customers' locations 173,665,000 172,600,000 252,593,000 242,275,000 Less allowance for excess and obsolete inventory (1,545,000 ) (1,175,000 ) Total $ 251,048,000 $ 241,100,000 Long-term core inventory deposits $ 5,569,000 $ 5,569,000 |
Significant Customer and Othe28
Significant Customer and Other Information (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Significant Customer and Other Information [Abstract] | |
Schedule of concentrations of risk | 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 2016 2015 2016 2015 Customer A 45 % 46 % 48 % 48 % Customer B 21 % 21 % 18 % 20 % Customer C 19 % 21 % 19 % 19 % The Company’s largest customers accounted for the following total percentage of accounts receivable—trade: Accounts receivable - trade September 30, 2016 March 31, 2016 Customer A 52 % 37 % Customer B 8 % 17 % Customer C 12 % 15 % Geographic and Product Information The Company’s products are predominantly sold in the U.S. and accounted for the following total percentage of net sales: Three Months Ended September 30, Six Months Ended September 30, 2016 2015 2016 2015 Rotating electrical products 80 % 85 % 76 % 81 % Wheel hub products 20 % 19 % 21 % 18 % Brake master cylinders products 3 % (4 )% 4 % 1 % Other products (3 )% - % (1 )% - % 100 % 100 % 100 % 100 % |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Debt [Abstract] | |
Summarized information about the term loan | The following summarizes information about the Company’s Term Loans at: September 30, 2016 March 31, 2016 Principal amount of term loan $ 21,875,000 $ 23,438,000 Unamortized financing fees (364,000 ) (391,000 ) Net carrying amount of term loan 21,511,000 23,047,000 Less current portion of term loan (3,064,000 ) (3,067,000 ) Long-term portion of term loan $ 18,447,000 $ 19,980,000 |
Future repayments of the amended term loan, by fiscal year | Future repayments of the Company’s Term Loans, by fiscal year, are as follows: Year Ending March 31, 2017 - remaining six months 1,562,000 2018 3,125,000 2019 3,125,000 2020 3,125,000 2021 10,938,000 Total payments $ 21,875,000 |
Accounts Receivable Discount 30
Accounts Receivable Discount Programs (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
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, 2016 2015 Receivables discounted $ 167,670,000 $ 167,905,000 Weighted average days 341 342 Annualized weighted average discount rate 2.8 % 2.2 % Amount of discount as interest expense $ 4,408,000 $ 3,452,000 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Net Income (Loss) Per Share [Abstract] | |
Schedule of reconciliation of basic and diluted net income (loss) per share | The following presents a reconciliation of basic and diluted net income (loss) per share: Three Months Ended September 30, Six Months Ended September 30, 2016 2015 2016 2015 Net income (loss) $ 9,143,000 $ (1,392,000 ) $ 16,651,000 $ 518,000 Basic shares 18,641,324 18,215,783 18,544,118 18,109,912 Effect of potentially dilutive securities 788,066 - 840,550 777,241 Diluted shares 19,429,390 18,215,783 19,384,668 18,887,153 Net income (loss) per share: Basic net income (loss) per share $ 0.49 $ (0.08 ) $ 0.90 $ 0.03 Diluted net income (loss) per share $ 0.47 $ (0.08 ) $ 0.86 $ 0.03 |
Financial Risk Management and32
Financial Risk Management and Derivatives (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Financial Risk Management and Derivatives [Abstract] | |
Schedule of derivative instruments on consolidated statements of operations | The following shows the effect of the Company’s derivative instruments on its consolidated statements of operations: Gain (Loss) Recognized within General and Administrative Expenses Derivatives Not Designated as Three Months Ended September 30, Six Months Ended September 30, Hedging Instruments 2016 2015 2016 2015 Forward foreign currency exchange contracts $ (507,000 ) $ (527,000 ) $ (1,186,000 ) $ (349,000 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Fair Value Measurements [Abstract] | |
Financial assets and liabilities measured at fair value recurring basis | The following summarizes the Company’s financial assets and liabilities measured at fair value, by level within the fair value hierarchy: September 30, 2016 March 31, 2016 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 $ 2,233,000 $ 2,233,000 - - $ 1,813,000 $ 1,813,000 - - Liabilities Accrued liabilities Contingent consideration - - - - 224,000 - - $ 224,000 Other current liabilities Deferred compensation 2,233,000 2,233,000 - - 1,813,000 1,813,000 - - Forward foreign currency exchange contracts 1,602,000 - $ 1,602,000 - 416,000 - $ 416,000 - Other liabilities Warrant liability 10,878,000 - - $ 10,878,000 15,643,000 - - 15,643,000 Contingent consideration - - - - 106,000 - - 106,000 |
Assumptions used to determine fair value of supplier warrant liability | The following assumptions were used to determine the fair value of the Supplier Warrant: Supplier Warrant Risk free interest rate 0.59 % Expected life in years 1.00 Expected volatility 39.00 % Dividend yield - Probability of future financing 0 % |
Change in warrant liability measured at fair value recurring basis using significant unobservable inputs (level 3) | The following summarizes the activity for Level 3 fair value measurements: Three Months Ended September 30, Six Months Ended September 30, 2016 2015 2016 2015 Supplier Contingent Supplier Contingent Supplier Contingent Supplier Contingent Beginning balance $ 10,054,000 $ 314,000 $ 11,648,000 $ 1,320,000 $ 15,643,000 $ 330,000 $ 10,506,000 $ - Newly issued - - - - - - - 1,320,000 Total (gain) loss included in net income (loss) 824,000 - 600,000 20,000 (4,765,000 ) (16,000 ) 1,742,000 20,000 Exercises/settlements - (314,000 ) - - - (314,000 ) - - Net transfers in (out) of Level 3 - - - - - - - - Ending balance $ 10,878,000 $ - $ 12,248,000 $ 1,340,000 $ 10,878,000 $ - $ 12,248,000 $ 1,340,000 |
Share-based Payments (Tables)
Share-based Payments (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Share-based Payments [Abstract] | |
Summary of Black-Scholes option pricing model assumptions used to derive weighted average fair value of stock options granted | The following assumptions were used to derive the weighted average fair value of the stock options granted: Six Months Ended September 30, 2016 2015 Weighted average risk free interest rate 1.38 % 1.73 % Weighted average expected holding period (years) 5.84 5.76 Weighted average expected volatility 47.42 % 46.84 % Weighted average expected dividend yield - - Weighted average fair value of options granted $ 13.07 $ 14.13 |
Summary of stock option transactions | The following is a summary of stock option transactions: Number of Shares Weighted Average Exercise Price Outstanding at March 31, 2016 984,066 $ 11.98 Granted 184,000 $ 28.67 Exercised (83,133 ) $ 12.60 Cancelled - $ - Outstanding at September 30, 2016 1,084,933 $ 14.76 |
Schedule of restricted stock units activity | The following is a summary of non-vested RS: Number of Shares Weighted Average Grant Date Fair Value Non-vested at March 31, 2016 153,527 $ 22.28 Granted 42,876 $ 28.54 Vested (86,854 ) $ 17.67 Cancelled - $ - Non-vested at September 30, 2016 109,549 $ 28.39 |
Accumulated Other Comprehensi35
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Sep. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Accumulated other comprehensive income (loss) | The following summarizes changes in accumulated other comprehensive income (loss): Three Months Ended September 30, 2016 Three Months Ended September 30, 2015 Unrealized Gain on Short-Term Investments Foreign Currency Translation Total Unrealized Gain (Loss) on Short-Term Investments Foreign Currency Translation Total Balance at beginning of period $ 354,000 $ (5,719,000 ) $ (5,365,000 ) $ 339,000 $ (3,212,000 ) $ (2,873,000 ) Other comprehensive income (loss), net of tax 66,000 (807,000 ) (741,000 ) (53,000 ) (1,424,000 ) (1,477,000 ) Amounts reclassified from accumulated other comprehensive loss, net of tax - - - - - - Balance at end of period $ 420,000 $ (6,526,000 ) $ (6,106,000 ) $ 286,000 $ (4,636,000 ) $ (4,350,000 ) Six Months Ended September 30, 2016 Six Months Ended September 30, 2015 Unrealized Gain on Short-Term Investments Foreign Currency Translation Total Unrealized Gain (Loss) on Short-Term Investments Foreign Currency Translation Total Balance at beginning of period $ 332,000 $ (5,184,000 ) $ (4,852,000 ) $ 345,000 $ (2,863,000 ) $ (2,518,000 ) Other comprehensive income (loss), net of tax 88,000 (1,342,000 ) (1,254,000 ) (59,000 ) (1,773,000 ) (1,832,000 ) Amounts reclassified from accumulated other comprehensive loss, net of tax - - - - - - Balance at end of period $ 420,000 $ (6,526,000 ) $ (6,106,000 ) $ 286,000 $ (4,636,000 ) $ (4,350,000 ) |
Company Background and Organi36
Company Background and Organization (Details) | 6 Months Ended |
Sep. 30, 2016Segment | |
Company Background and Organization [Abstract] | |
Number of reportable segments | 1 |
New Accounting Pronouncements37
New Accounting Pronouncements (Details) | Sep. 30, 2016USD ($) |
New Accounting Pronouncement, Early Adoption, Effect [Member] | |
New Accounting Pronouncement, Early Adoption [Line Items] | |
Cumulative effect on retained Earnings | $ 892,000 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | 6 Months Ended | |
Sep. 30, 2016 | Mar. 31, 2016 | |
Intangible assets subject to amortization [Abstract] | ||
Gross Carrying Value | $ 6,638,000 | $ 6,605,000 |
Accumulated Amortization | $ 2,322,000 | 2,032,000 |
Trademarks [Member] | ||
Intangible assets subject to amortization [Abstract] | ||
Weighted Average Amortization Period | 11 years | |
Gross Carrying Value | $ 705,000 | 705,000 |
Accumulated Amortization | $ 159,000 | 127,000 |
Non-compete Agreement [Member] | ||
Intangible assets subject to amortization [Abstract] | ||
Weighted Average Amortization Period | 1 year | |
Gross Carrying Value | $ 33,000 | 0 |
Accumulated Amortization | $ 0 | 0 |
Customer Relationships [Member] | ||
Intangible assets subject to amortization [Abstract] | ||
Weighted Average Amortization Period | 13 years | |
Gross Carrying Value | $ 5,900,000 | 5,900,000 |
Accumulated Amortization | $ 2,163,000 | $ 1,905,000 |
Intangible Assets, Amortization
Intangible Assets, Amortization Expense (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Amortization expense for acquired intangible assets [Abstract] | ||||
Amortization expense | $ 145,000 | $ 157,000 | $ 290,000 | $ 331,000 |
Estimated future amortization expense for intangible assets subject to amortization [Abstract] | ||||
2017 - remaining six months | 306,000 | 306,000 | ||
2,018 | 597,000 | 597,000 | ||
2,019 | 580,000 | 580,000 | ||
2,020 | 580,000 | 580,000 | ||
2,021 | 580,000 | 580,000 | ||
Thereafter | 1,673,000 | 1,673,000 | ||
Total | $ 4,316,000 | $ 4,316,000 |
Accounts Receivable - Net (Deta
Accounts Receivable - Net (Details) - USD ($) | Sep. 30, 2016 | Mar. 31, 2016 |
Accounts Receivable - Net [Abstract] | ||
Accounts receivable - trade | $ 65,494,000 | $ 62,206,000 |
Allowance for bad debts | (4,300,000) | (4,284,000) |
Customer allowances earned | (9,538,000) | (12,029,000) |
Customer payment discrepancies | (703,000) | (703,000) |
Customer returns RGA issued | (15,619,000) | (6,561,000) |
Customer core returns accruals | (19,222,000) | (30,081,000) |
Less: total accounts receivable offset accounts | (49,382,000) | (53,658,000) |
Total accounts receivable - net | $ 16,112,000 | $ 8,548,000 |
Accounts Receivable - Net, Warr
Accounts Receivable - Net, Warranty Returns (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Mar. 31, 2016 | |
Warranty Returns [Abstract] | |||||
Warranty accrual included in customer returns RGA issued | $ 7,845,000 | $ 7,845,000 | $ 4,612,000 | ||
Warranty accrual included in customer finished goods returns accrual | 5,862,000 | 5,862,000 | $ 6,233,000 | ||
Change in warranty return accrual [Roll Forward] | |||||
Balance at beginning of period | 11,559,000 | $ 9,785,000 | 10,845,000 | $ 10,904,000 | |
Charged to expense/additions | 28,179,000 | 22,442,000 | 50,873,000 | 39,813,000 | |
Amounts processed | (26,031,000) | (22,023,000) | (48,011,000) | (40,513,000) | |
Balance at end of period | $ 13,707,000 | $ 10,204,000 | $ 13,707,000 | $ 10,204,000 |
Inventory (Details)
Inventory (Details) - USD ($) | Sep. 30, 2016 | Mar. 31, 2016 |
Non-core inventory [Abstract] | ||
Raw materials | $ 22,185,000 | $ 17,394,000 |
Work-in-process | 964,000 | 135,000 |
Finished goods | 51,776,000 | 42,982,000 |
Non-core inventory, gross | 74,925,000 | 60,511,000 |
Less allowance for excess and obsolete inventory | (2,761,000) | (2,451,000) |
Total | 72,164,000 | 58,060,000 |
Inventory unreturned | 10,228,000 | 10,520,000 |
Long-term core inventory [Abstract] | ||
Used cores held at the Company's facilities | 35,760,000 | 34,405,000 |
Used cores expected to be returned by customers | 16,303,000 | 10,781,000 |
Remanufactured cores held in finished goods | 26,865,000 | 24,489,000 |
Remanufactured cores held at customers' locations | 173,665,000 | 172,600,000 |
Long-term core inventory - gross | 252,593,000 | 242,275,000 |
Less allowance for excess and obsolete inventory | (1,545,000) | (1,175,000) |
Total | 251,048,000 | 241,100,000 |
Long-term core inventory deposits | $ 5,569,000 | $ 5,569,000 |
Significant Customer and Othe43
Significant Customer and Other Information (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Mar. 31, 2016 | |
Sales [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 100.00% | 100.00% | 100.00% | 100.00% | |
Sales [Member] | Rotating Electrical Products [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 80.00% | 85.00% | 76.00% | 81.00% | |
Sales [Member] | Wheel Hub Products [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 20.00% | 19.00% | 21.00% | 18.00% | |
Sales [Member] | Brake Master Cylinders Products [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 3.00% | (4.00%) | 4.00% | 1.00% | |
Sales [Member] | Other Products [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | (3.00%) | 0.00% | (1.00%) | 0.00% | |
Sales [Member] | Customer A [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 45.00% | 46.00% | 48.00% | 48.00% | |
Sales [Member] | Customer B [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 21.00% | 21.00% | 18.00% | 20.00% | |
Sales [Member] | Customer C [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 19.00% | 21.00% | 19.00% | 19.00% | |
Accounts Receivable - Trade [Member] | Customer A [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 52.00% | 37.00% | |||
Accounts Receivable - Trade [Member] | Customer B [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 8.00% | 17.00% | |||
Accounts Receivable - Trade [Member] | Customer C [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 12.00% | 15.00% |
Debt (Details)
Debt (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | May 31, 2016 | Apr. 30, 2016 | Mar. 31, 2016 | Aug. 31, 2012 | |
Summarized information about the term loan [Abstract] | ||||||||
Less current portion of term loan | $ (3,064,000) | $ (3,064,000) | $ (3,067,000) | |||||
Long-term portion of term loan | 18,447,000 | 18,447,000 | $ 19,980,000 | |||||
Credit Facility [Member] | ||||||||
Credit Facility [Abstract] | ||||||||
Maximum borrowing capacity | 125,000,000 | $ 125,000,000 | ||||||
Debt instrument, maturity date | Jun. 3, 2020 | |||||||
Credit Facility [Member] | Minimum [Member] | ||||||||
Credit Facility [Abstract] | ||||||||
Facility fee on total leverage ratio | 0.25% | |||||||
Credit Facility [Member] | Maximum [Member] | ||||||||
Credit Facility [Abstract] | ||||||||
Dividend payments, annual maximum amount permitted | $ 10,000,000 | |||||||
Facility fee on total leverage ratio | 0.375% | |||||||
Credit Facility [Member] | LIBOR [Member] | ||||||||
Credit Facility [Abstract] | ||||||||
Reference interest rate under option 1, floor | 2.50% | |||||||
Interest rate over LIBOR rate under option 1 | 2.75% | |||||||
Interest rate above base rate under option 2 | 3.00% | |||||||
Credit Facility [Member] | Reference Rate [Member] | ||||||||
Credit Facility [Abstract] | ||||||||
Reference interest rate under option 1, floor | 1.50% | |||||||
Interest rate over LIBOR rate under option 1 | 1.75% | |||||||
Interest rate above base rate under option 2 | 2.00% | |||||||
Credit Facility [Member] | Term Loans [Member] | ||||||||
Credit Facility [Abstract] | ||||||||
Maximum borrowing capacity | $ 25,000,000 | $ 25,000,000 | ||||||
Quarterly principal payments | $ 781,250 | |||||||
Interest rate at end of period | 3.28% | 3.28% | 2.94% | |||||
Summarized information about the term loan [Abstract] | ||||||||
Principal amount of term loan | $ 21,875,000 | $ 21,875,000 | $ 23,438,000 | |||||
Unamortized financing fees | (364,000) | (364,000) | (391,000) | |||||
Net carrying amount of term loan | 21,511,000 | 21,511,000 | 23,047,000 | |||||
Less current portion of term loan | (3,064,000) | (3,064,000) | (3,067,000) | |||||
Long-term portion of term loan | 18,447,000 | 18,447,000 | 19,980,000 | |||||
Future repayments of the Term Loan, by fiscal year [Abstract] | ||||||||
2017 - remaining six months | 1,562,000 | 1,562,000 | ||||||
2,018 | 3,125,000 | 3,125,000 | ||||||
2,019 | 3,125,000 | 3,125,000 | ||||||
2,020 | 3,125,000 | 3,125,000 | ||||||
2,021 | 10,938,000 | 10,938,000 | ||||||
Total payments | $ 21,875,000 | $ 21,875,000 | $ 23,438,000 | |||||
Credit Facility [Member] | Revolving Facility [Member] | ||||||||
Credit Facility [Abstract] | ||||||||
Maximum borrowing capacity | $ 120,000,000 | $ 100,000,000 | ||||||
Interest rate at end of period | 4.21% | 4.21% | 3.53% | |||||
Future repayments of the Term Loan, by fiscal year [Abstract] | ||||||||
Outstanding balance under revolving loan | $ 19,000,000 | $ 19,000,000 | $ 7,000,000 | |||||
Amount available under revolving facility | 100,140,000 | 100,140,000 | ||||||
Credit Facility [Member] | Revolving Facility [Member] | Letters of Credit [Member] | ||||||||
Credit Facility [Abstract] | ||||||||
Maximum borrowing capacity | 15,000,000 | 15,000,000 | $ 15,000,000 | |||||
Credit Facility [Member] | Revolving Facility [Member] | Commercial Letters of Credit [Member] | ||||||||
Future repayments of the Term Loan, by fiscal year [Abstract] | ||||||||
Outstanding balance under revolving loan | 600,000 | 600,000 | ||||||
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 | 260,000 | 260,000 | ||||||
WX Agreement [Member] | Supplier Warrant [Member] | ||||||||
WX Agreement [Abstract] | ||||||||
Number of shares that can be purchased under warrants (in shares) | 516,129 | |||||||
Initial exercise price (in dollars per share) | $ 7.75 | |||||||
Fair value of warrants issued | 10,878,000 | 10,878,000 | $ 15,643,000 | |||||
Total gain (loss) included in net loss | $ (824,000) | $ (600,000) | $ 4,765,000 | $ (1,742,000) |
Accounts Receivable Discount 45
Accounts Receivable Discount Programs (Details) - USD ($) | 6 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Accounts Receivable Discount Programs [Abstract] | ||
Receivables discounted | $ 167,670,000 | $ 167,905,000 |
Weighted average days | 341 days | 342 days |
Annualized weighted average discount rate | 2.80% | 2.20% |
Amount of discount as interest expense | $ 4,408,000 | $ 3,452,000 |
Net Income (Loss) Per Share (De
Net Income (Loss) Per Share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net Income (Loss) Per Share [Abstract] | ||||
Net income (loss) | $ 9,143,000 | $ (1,392,000) | $ 16,651,000 | $ 518,000 |
Basic shares (in shares) | 18,641,324 | 18,215,783 | 18,544,118 | 18,109,912 |
Effect of potentially dilutive securities (in shares) | 788,066 | 0 | 840,550 | 777,241 |
Diluted shares (in shares) | 19,429,390 | 18,215,783 | 19,384,668 | 18,887,153 |
Net income (loss) per share [Abstract] | ||||
Basic net income (loss) per share (in dollars per share) | $ 0.49 | $ (0.08) | $ 0.90 | $ 0.03 |
Diluted net income (loss) per share (in dollars per share) | $ 0.47 | $ (0.08) | $ 0.86 | $ 0.03 |
Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares excluded from computation of earnings per share (in shares) | 291,215 | 1,204,619 | 108,815 | 110,122 |
Exercise price of options, lower range (in dollars per share) | $ 28.68 | $ 4.17 | $ 30.91 | $ 31.10 |
Exercise price of options, upper range (in dollars per share) | $ 34.17 | $ 31.13 | $ 34.17 | 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 | |||
Exercise price of options (in dollars per share) | $ 7.75 | $ 7.75 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Taxes [Abstract] | ||||
Income tax expense (benefit) from continuing operations | $ 4,845,000 | $ (898,000) | $ 7,781,000 | $ 370,000 |
Effective income tax rate | 34.60% | 39.20% | 31.80% | 41.70% |
Excess tax benefit from early adoption of new pronouncement | $ (199,000) | $ (590,000) | ||
Internal Revenue Service (IRS) [Member] | ||||
Income Tax Examination [Line Items] | ||||
Bad debt income tax deduction | 80,000,000 | |||
Accrued interest charges | $ 460,000 | $ 460,000 | ||
Internal Revenue Service (IRS) [Member] | Tax Years 2012 and 2013 [Member] | ||||
Income Tax Examination [Line Items] | ||||
Loss carryback period | 2 years |
Financial Risk Management and48
Financial Risk Management and Derivatives (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Mar. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Forward foreign currency exchange contracts included in other current liabilities | $ 1,602,000 | $ 1,602,000 | $ 416,000 | ||
Forward Foreign Currency Exchange Contracts [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Notional amount of foreign currency derivatives | 27,011,000 | 27,011,000 | $ 18,917,000 | ||
Forward Foreign Currency Exchange Contracts [Member] | General and Administrative Expenses [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Forward foreign currency exchange contracts | $ (507,000) | $ (527,000) | $ (1,186,000) | $ (349,000) |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Mar. 31, 2016 | |
Forward Foreign Currency Exchange Contracts [Member] | |||||
Other liabilities [Abstract] | |||||
Net loss on forward foreign currency exchange contracts | $ (507,000) | $ (527,000) | $ (1,186,000) | $ (349,000) | |
Supplier Warrant [Member] | |||||
Fair value assumptions of warrants [Abstract] | |||||
Risk free interest rate | 0.59% | ||||
Expected life in years | 1 year | ||||
Expected volatility | 39.00% | ||||
Dividend yield | 0.00% | ||||
Probability of future financing | 0.00% | ||||
Change in warrant liability measured at fair value recurring basis using significant unobservable inputs (Level 3) [Rollforward] | |||||
Beginning balance | 10,054,000 | 11,648,000 | $ 15,643,000 | 10,506,000 | |
Newly issued | 0 | 0 | 0 | 0 | |
Total (gain) loss included in net income (loss) | 824,000 | 600,000 | (4,765,000) | 1,742,000 | |
Exercises/settlements | 0 | 0 | 0 | 0 | |
Net transfers in (out) of Level 3 | 0 | 0 | 0 | 0 | |
Ending balance | 10,878,000 | 12,248,000 | 10,878,000 | 12,248,000 | |
Contingent Consideration [Member] | |||||
Change in warrant liability measured at fair value recurring basis using significant unobservable inputs (Level 3) [Rollforward] | |||||
Beginning balance | 314,000 | 1,320,000 | 330,000 | 0 | |
Newly issued | 0 | 0 | 0 | 1,320,000 | |
Total (gain) loss included in net income (loss) | 0 | 20,000 | (16,000) | 20,000 | |
Exercises/settlements | (314,000) | 0 | (314,000) | 0 | |
Net transfers in (out) of Level 3 | 0 | 0 | 0 | 0 | |
Ending balance | 0 | $ 1,340,000 | 0 | $ 1,340,000 | |
Recurring [Member] | |||||
Short-term investments [Abstract] | |||||
Mutual funds | 2,233,000 | 2,233,000 | $ 1,813,000 | ||
Accrued liabilities [Abstract] | |||||
Contingent consideration | 0 | 0 | 224,000 | ||
Other current liabilities [Abstract] | |||||
Deferred compensation | 2,233,000 | 2,233,000 | 1,813,000 | ||
Forward foreign currency exchange contracts | 1,602,000 | 1,602,000 | 416,000 | ||
Other liabilities [Abstract] | |||||
Warrant liability | 10,878,000 | 10,878,000 | 15,643,000 | ||
Contingent consideration | 0 | 0 | 106,000 | ||
Recurring [Member] | Level 1 [Member] | |||||
Short-term investments [Abstract] | |||||
Mutual funds | 2,233,000 | 2,233,000 | 1,813,000 | ||
Accrued liabilities [Abstract] | |||||
Contingent consideration | 0 | 0 | 0 | ||
Other current liabilities [Abstract] | |||||
Deferred compensation | 2,233,000 | 2,233,000 | 1,813,000 | ||
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 | 1,602,000 | 1,602,000 | 416,000 | ||
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 | 0 | 0 | 224,000 | ||
Other current liabilities [Abstract] | |||||
Deferred compensation | 0 | 0 | 0 | ||
Forward foreign currency exchange contracts | 0 | 0 | 0 | ||
Other liabilities [Abstract] | |||||
Warrant liability | 10,878,000 | 10,878,000 | 15,643,000 | ||
Contingent consideration | $ 0 | $ 0 | $ 106,000 |
Share-based Payments (Details)
Share-based Payments (Details) - USD ($) | 6 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
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 | 1.38% | 1.73% |
Weighted average expected holding period | 5 years 10 months 2 days | 5 years 9 months 4 days |
Weighted average expected volatility | 47.42% | 46.84% |
Weighted average expected dividend yield | 0.00% | 0.00% |
Weighted average fair value of options granted (in dollars per share) | $ 13.07 | $ 14.13 |
Number of Shares [Roll Forward] | ||
Outstanding at beginning of period (in shares) | 984,066 | |
Granted (in shares) | 184,000 | 110,122 |
Exercised (in shares) | (83,133) | |
Cancelled (in shares) | 0 | |
Outstanding at end of period (in shares) | 1,084,933 | |
Weighted Average Exercise Price [Roll Forward] | ||
Outstanding at beginning of period (in dollars per share) | $ 11.98 | |
Granted (in dollars per share) | 28.67 | |
Exercised (in dollars per share) | 12.60 | |
Cancelled (in dollars per share) | 0 | |
Outstanding at end of period (in dollars per share) | $ 14.76 | |
Number of stock options unvested (in shares) | 283,469 | |
Weighted average exercise price of stock options unvested (in dollars per share) | $ 13.02 | |
Total unrecognized compensation expense | $ 3,418,000 | |
Weighted average vesting period over which compensation expense is expected to be recognized | 2 years 3 months 18 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 10 months 24 days | |
Number of Shares [Roll Forward] | ||
Non-vested at beginning of period (in shares) | 153,527 | |
Granted (in shares) | 42,876 | 39,900 |
Vested (in shares) | (86,854) | |
Cancelled (in shares) | 0 | |
Non-vested at end of period (in shares) | 109,549 | |
Weighted Average Grant Date Fair Value [Roll Forward] | ||
Non-vested at beginning of period (in dollars per share) | $ 22.28 | |
Granted (in dollars per share) | 28.54 | |
Vested (in dollars per share) | 17.67 | |
Cancelled (in dollars per share) | 0 | |
Non-vested at end of period (in dollars per share) | $ 28.39 | |
Total unrecognized compensation expense | $ 2,648,000 | |
Estimated fair value of awards granted | $ 1,224,000 | $ 1,242,000 |
Accumulated Other Comprehensi51
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at beginning of period | $ 210,808,000 | |||
Other comprehensive income (loss), net of tax | $ (741,000) | $ (1,477,000) | (1,254,000) | $ (1,832,000) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 0 | 0 | 0 | 0 |
Balance at end of period | 228,824,000 | 228,824,000 | ||
AOCI Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at beginning of period | (5,365,000) | (2,873,000) | (4,852,000) | (2,518,000) |
Balance at end of period | (6,106,000) | (4,350,000) | (6,106,000) | (4,350,000) |
Unrealized Gain (Loss) on Short-Term Investments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at beginning of period | 354,000 | 339,000 | 332,000 | 345,000 |
Other comprehensive income (loss), net of tax | 66,000 | (53,000) | 88,000 | (59,000) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 0 | 0 | 0 | 0 |
Balance at end of period | 420,000 | 286,000 | 420,000 | 286,000 |
Foreign Currency Translation [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at beginning of period | (5,719,000) | (3,212,000) | (5,184,000) | (2,863,000) |
Other comprehensive income (loss), net of tax | (807,000) | (1,424,000) | (1,342,000) | (1,173,000) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 0 | 0 | 0 | 0 |
Balance at end of period | $ (6,526,000) | $ (4,636,000) | $ (6,526,000) | $ (4,636,000) |
Acquisitions (Details)
Acquisitions (Details) - USD ($) | Jul. 21, 2016 | Sep. 30, 2016 | Sep. 30, 2015 |
Business Acquisition [Line Items] | |||
Initial purchase price | $ 600,000 | $ 3,200,000 | |
Zor Industries USA LLC [Member] | |||
Business Acquisition [Line Items] | |||
Initial purchase price | $ 600,000 |