Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 30, 2020 | Aug. 03, 2020 | |
Cover [Abstract] | ||
Entity Registrant Name | MOTORCAR PARTS AMERICA INC | |
Entity Central Index Key | 0000918251 | |
Current Fiscal Year End Date | --03-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 19,020,587 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2020 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-33861 | |
Entity Tax Identification Number | 11-2153962 | |
Entity Incorporation, State or Country Code | NY | |
Entity Address, Address Line One | 2929 California Street | |
Entity Address, City or Town | Torrance | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 90503 | |
City Area Code | 310 | |
Local Phone Number | 212-7910 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | MPAA | |
Security Exchange Name | NASDAQ |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Jun. 30, 2020 | Mar. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 27,464,000 | $ 49,616,000 |
Short-term investments | 1,061,000 | 850,000 |
Accounts receivable - net | 66,138,000 | 91,748,000 |
Inventory | 241,253,000 | 234,680,000 |
Contract assets | 30,024,000 | 20,332,000 |
Prepaid expenses and other current assets | 14,658,000 | 11,890,000 |
Total current assets | 380,598,000 | 409,116,000 |
Plant and equipment - net | 46,311,000 | 44,957,000 |
Operating lease assets | 68,729,000 | 53,029,000 |
Long-term deferred income taxes | 18,578,000 | 18,950,000 |
Long-term contract assets | 234,735,000 | 239,540,000 |
Goodwill and intangible assets - net | 9,373,000 | 9,598,000 |
Other assets | 1,676,000 | 1,839,000 |
TOTAL ASSETS | 760,000,000 | 777,029,000 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 101,901,000 | 95,083,000 |
Customer finished goods returns accrual | 27,595,000 | 25,326,000 |
Contract liabilities | 34,718,000 | 27,911,000 |
Revolving loan | 112,000,000 | 152,000,000 |
Other current liabilities | 7,047,000 | 9,390,000 |
Operating lease liabilities | 6,249,000 | 5,104,000 |
Current portion of term loan | 3,678,000 | 3,678,000 |
Total current liabilities | 293,188,000 | 318,492,000 |
Term loan, less current portion | 19,543,000 | 20,462,000 |
Long-term contract liabilities | 90,125,000 | 92,101,000 |
Long-term deferred income taxes | 73,000 | 79,000 |
Long-term operating lease liabilities | 74,426,000 | 61,425,000 |
Other liabilities | 10,544,000 | 8,950,000 |
Total liabilities | 487,899,000 | 501,509,000 |
Commitments and contingencies | ||
Shareholders' equity: | ||
Preferred stock | 0 | 0 |
Common stock; par value $.01 per share, 50,000,000 shares authorized; 19,002,333 and 18,969,380 shares issued and outstanding at June 30, 2020 and March 31, 2020, respectively | 190,000 | 190,000 |
Additional paid-in capital | 219,437,000 | 218,581,000 |
Retained earnings | 61,105,000 | 64,117,000 |
Accumulated other comprehensive loss | (8,631,000) | (7,368,000) |
Total shareholders' equity | 272,101,000 | 275,520,000 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 760,000,000 | 777,029,000 |
Series A Junior Participating Preferred Stock [Member] | ||
Shareholders' equity: | ||
Preferred stock | $ 0 | $ 0 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2020 | Mar. 31, 2020 |
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) | 19,002,333 | 18,969,380 |
Common stock, outstanding (in shares) | 19,002,333 | 18,969,380 |
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 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Condensed Consolidated Statements of Operations (Unaudited) [Abstract] | ||
Net sales | $ 95,356,000 | $ 109,148,000 |
Cost of goods sold | 81,969,000 | 91,565,000 |
Gross profit | 13,387,000 | 17,583,000 |
Operating expenses: | ||
General and administrative | 6,870,000 | 12,000,000 |
Sales and marketing | 4,200,000 | 4,919,000 |
Research and development | 1,942,000 | 2,372,000 |
Total operating expenses | 13,012,000 | 19,291,000 |
Operating income (loss) | 375,000 | (1,708,000) |
Interest expense, net | 4,409,000 | 6,173,000 |
Loss before income tax benefit | (4,034,000) | (7,881,000) |
Income tax benefit | (1,022,000) | (1,730,000) |
Net loss | $ (3,012,000) | $ (6,151,000) |
Basic net loss per share (in dollars per share) | $ (0.16) | $ (0.33) |
Diluted net loss per share (in dollars per share) | $ (0.16) | $ (0.33) |
Weighted average number of shares outstanding: | ||
Basic (in shares) | 18,976,178 | 18,822,178 |
Diluted (in shares) | 18,976,178 | 18,822,178 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) [Abstract] | ||
Net loss | $ (3,012,000) | $ (6,151,000) |
Other comprehensive (loss) income, net of tax: | ||
Foreign currency translation (loss) gain | (1,263,000) | 599,000 |
Total other comprehensive (loss) income, net of tax | (1,263,000) | 599,000 |
Comprehensive loss | $ (4,275,000) | $ (5,552,000) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Beginning balance at Mar. 31, 2019 | $ 188,000 | $ 215,047,000 | $ 71,407,000 | $ (6,887,000) | $ 279,755,000 |
Beginning balance (in shares) at Mar. 31, 2019 | 18,817,400 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Compensation recognized under employee stock plans | $ 0 | 988,000 | 0 | 0 | 988,000 |
Issuance of common stock upon vesting of RSUs, net of shares withheld for employee taxes | $ 1,000 | (363,000) | 0 | 0 | (362,000) |
Issuance of common stock upon vesting of RSUs, net of shares withheld for employee taxes (in shares) | 36,872 | ||||
Foreign currency translation | $ 0 | 0 | 0 | 599,000 | 599,000 |
Net loss | 0 | 0 | (6,151,000) | 0 | (6,151,000) |
Ending balance at Jun. 30, 2019 | $ 189,000 | 215,672,000 | 65,256,000 | (6,288,000) | 274,829,000 |
Ending balance (in shares) at Jun. 30, 2019 | 18,854,272 | ||||
Beginning balance at Mar. 31, 2020 | $ 190,000 | 218,581,000 | 64,117,000 | (7,368,000) | $ 275,520,000 |
Beginning balance (in shares) at Mar. 31, 2020 | 18,969,380 | 18,969,380 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Compensation recognized under employee stock plans | $ 0 | 1,043,000 | 0 | 0 | $ 1,043,000 |
Exercise of stock options | $ 0 | 20,000 | 0 | 0 | 20,000 |
Exercise of stock options (in shares) | 3,000 | ||||
Issuance of common stock upon vesting of RSUs, net of shares withheld for employee taxes | $ 0 | (207,000) | 0 | 0 | (207,000) |
Issuance of common stock upon vesting of RSUs, net of shares withheld for employee taxes (in shares) | 29,953 | ||||
Foreign currency translation | $ 0 | 0 | 0 | (1,263,000) | (1,263,000) |
Net loss | 0 | 0 | (3,012,000) | 0 | (3,012,000) |
Ending balance at Jun. 30, 2020 | $ 190,000 | $ 219,437,000 | $ 61,105,000 | $ (8,631,000) | $ 272,101,000 |
Ending balance (in shares) at Jun. 30, 2020 | 19,002,333 | 19,002,333 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (3,012,000) | $ (6,151,000) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 2,551,000 | 2,379,000 |
Amortization of interest | 312,000 | 328,000 |
Amortization of core premiums paid to customers | 1,223,000 | 1,108,000 |
Noncash lease expense | 1,686,000 | 1,179,000 |
(Gain) loss due to the change in the fair value of the contingent consideration | (47,000) | 228,000 |
Gain due to the remeasurement of lease liabilities | (1,985,000) | (502,000) |
Gain on short-term investments | (155,000) | (109,000) |
Net provision for inventory reserves | 2,074,000 | 3,352,000 |
Net provision for customer payment discrepancies and credit losses | 30,000 | 562,000 |
Deferred income taxes | 465,000 | 191,000 |
Share-based compensation expense | 1,043,000 | 988,000 |
Loss on disposal of plant and equipment | 0 | 5,000 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 25,847,000 | 10,524,000 |
Inventory | (8,034,000) | (31,374,000) |
Prepaid expenses and other current assets | (2,898,000) | (1,684,000) |
Other assets | 219,000 | 209,000 |
Accounts payable and accrued liabilities | 6,478,000 | (3,924,000) |
Customer finished goods returns accrual | 1,621,000 | (1,132,000) |
Contract assets, net | (6,076,000) | 9,410,000 |
Contract liabilities, net | 4,620,000 | (1,897,000) |
Operating lease liabilities | (1,416,000) | (904,000) |
Other liabilities | (2,158,000) | (1,165,000) |
Net cash provided by (used in) operating activities | 22,388,000 | (18,379,000) |
Cash flows from investing activities: | ||
Purchase of plant and equipment | (2,983,000) | (3,976,000) |
Change in short-term investments | (55,000) | 1,308,000 |
Net cash used in investing activities | (3,038,000) | (2,668,000) |
Cash flows from financing activities: | ||
Borrowings under revolving loan | 0 | 25,000,000 |
Repayments of revolving loan | (40,000,000) | 0 |
Repayments of term loan | (938,000) | (938,000) |
Payments for debt issuance costs | 0 | (889,000) |
Payments on finance lease obligations | (549,000) | (483,000) |
Exercise of stock options | 20,000 | 0 |
Cash used to net share settle equity awards | (207,000) | (362,000) |
Net cash (used in) provided by financing activities | (41,674,000) | 22,328,000 |
Effect of exchange rate changes on cash and cash equivalents | 172,000 | 15,000 |
Net (decrease) increase in cash and cash equivalents | (22,152,000) | 1,296,000 |
Cash and cash equivalents - Beginning of period | 49,616,000 | 9,911,000 |
Cash and cash equivalents - End of period | 27,464,000 | 11,207,000 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest, net | 4,234,000 | 5,835,000 |
Cash paid for income taxes, net of refunds | 447,000 | 0 |
Cash paid for operating leases | 2,574,000 | 1,637,000 |
Cash paid for finance leases | 632,000 | 551,000 |
Plant and equipment acquired under finance leases | 1,427,000 | 677,000 |
Assets acquired under operating leases | 15,564,000 | 3,000 |
Non-cash capital expenditures | $ 678,000 | $ 0 |
Company Background and Organiza
Company Background and Organization | 3 Months Ended |
Jun. 30, 2020 | |
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 supplier of automotive aftermarket non-discretionary replacement parts and diagnostic equipment. These replacement parts are primarily 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 diagnostic equipment primarily serves the global automotive component and powertrain testing market. The Company’s products include (i) rotating electrical products such as alternators and starters, (ii) wheel hub assemblies and bearings, (iii) brake-related products, which include brake calipers, brake boosters, and brake master cylinders, and (iv) diagnostics and other products, which include diagnostics systems, advanced power emulators used for the development of electric vehicles and aerospace applications, and custom power electronic products for quality control in the development and production of electric vehicles and turbochargers. The Company primarily ships its products from its facilities and various -party warehouse distribution centers in North America, including the Company’s square foot distribution center in Tijuana, Mexico. 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 operating decision maker (“CODM”), 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 its business comprises separate operating segments. of the operating segments meet all the aggregation criteria, and are aggregated. The remaining operating segment does not meet the quantitative thresholds for individual disclosure and the Company has combined its operating segments into reportable segment. Impact of the Novel Coronavirus (“COVID- ”) The recent outbreak of the COVID- pandemic has led to adverse impacts on the U.S. and global economies and created uncertainty regarding potential effects on the Company’s employees, supply chain, operations, and customer demand. The COVID- pandemic could impact the Company’s operations and the operations of its customers, suppliers, and vendors because of quarantines, facility closures, travel, and logistics restrictions. The extent to which the COVID- pandemic impacts the Company’s business, results of operations, and financial condition will depend on future developments, which are highly uncertain and cannot be predicted— including, but not limited to, the duration, spread, severity, and impact of the COVID- pandemic, the effects of the COVID- pandemic on its customers, suppliers, and vendors and the remedial actions and stimulus measures adopted by local, state and federal governments, and to what extent normal economic and operating conditions can resume. Even after the COVID- pandemic has subsided, the Company may continue to experience adverse impacts to its business because of an economic recession or depression that has occurred or may occur in the future. At this time, the Company is unable to predict accurately the ultimate long-term impact that COVID-19 will have on its business and financial condition. |
Basis of Presentation and New A
Basis of Presentation and New Accounting Pronouncements | 3 Months Ended |
Jun. 30, 2020 | |
Basis of Presentation and New Accounting Pronouncements [Abstract] | |
Basis of Presentation and New Accounting Pronouncements | 2. Basis of Presentation and New Accounting Pronouncements Basis of Presentation The accompanying unaudited condensed 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 -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 months ended June are not necessarily indicative of the results that may be expected for the fiscal year ending March This report should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the fiscal year ended March which are included in the Company’s Annual Report on Form -K filed with the Securities and Exchange Commission (“SEC”) on June . The accompanying condensed 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 Summary of Significant Accounting Policies, to the consolidated financial statements that are presented in the Company’s Annual Report on Form -K for the fiscal year ended March . New Accounting Pronouncements Recently Adopted Measurement of Credit Losses on Financial Instruments In June the FASB issued an accounting pronouncement related to the measurement of credit losses on financial instruments. This pronouncement, along with a subsequent Accounting Standards Updates (“ASU”) issued to clarify certain provisions of the new guidance, changes the impairment model for most financial assets and requires the use of an “expected loss” model for instruments measured at amortized cost. Under this model, entities are required to estimate the lifetime expected credit loss on such instruments and record an allowance to offset the amortized cost basis of the financial asset, resulting in a net presentation of the amount expected to be collected on the financial asset. The adoption of this guidance on April increased the Company’s required disclosures for its expected credit losses but did not have a material effect on its condensed consolidated financial statements. Prior to April 1, 2020, accounts receivable were recorded at cost less an allowance for doubtful accounts. The net amount of accounts receivable and corresponding allowance for doubtful accounts were presented in the condensed consolidated balance sheets. The Company maintains allowances for uncollectible accounts receivable for estimated losses resulting from the failure or inability of its customers to make required payments. Furthermore, receivable balances were assessed quarterly for impairment and an allowance was recorded if the receivable was considered impaired. Subsequent to April 1, 2020, accounts receivable are recorded at amortized cost less an allowance for credit losses that are not expected to be recovered. The net amount of accounts receivable and corresponding allowance for credit losses are presented separately in the condensed consolidated balance sheets. The Company maintains an allowance for credit losses resulting from the expected failure or inability of the Comany's customers to make required payments. The Company recognizes the allowance for credit losses at inception and reassess quarterly based on the asset’s expected collectability. The allowance is based on multiple factors including historical experience with bad debts, the credit quality of the customer base, the aging of such receivables and current macroeconomic conditions, such as COVID-19, as well as expectations of conditions in the future, if applicable. The Company's allowance for credit losses is based on the assessment of the collectability of assets pooled together with similar risk characteristics. The Company pools its receivables based on the shared risk characteristics of our customers. The Company records a provision for expected credit losses using a loss-rate method based on the ratio of our historical write-offs to our average trade accounts receivable. At each reporting period, the Company will assess whether financial assets in a pool continue to display similar risk characteristics. If particular receivables no longer display risk characteristics that are similar to those of the receivables in the pool, the Company may determine that it needs to move those receivables to a different pool or perform an individual assessment of expected credit losses for those specific receivables. Fair Value Measurements In August the FASB issued guidance , which changes the disclosure requirements for fair value measurements by removing, adding and modifying certain disclosures, including the range and weighted average of significant unobservable inputs used to develop Level fair value measurements. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level measurements, and the narrative description of measurement uncertainty should be applied prospectively only for the most recent interim or annual period presented in the initial year of adoption. All other amendments should be applied retrospectively applied to all periods presented upon their effective date. The adoption of this guidance on April modified certain of the Company’s disclosures for its Level fair value measurements but did not have an impact on its condensed consolidated financial statements. Reference Rate Reform In March the FASB issued guidance that, for a limited time, eases the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference the London Interbank Offered Rate or another reference rate expected to be discontinued due to reference rate reform. These amendments are effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December The Company will apply these amendments prospectively. The adoption of this guidance on April did not have an impact on the Company’s condensed consolidated financial statements for the months ended June . New Accounting Pronouncements Not Yet Adopted Income Taxes In December 2019, the FASB issued guidance that simplifies the accounting for income taxes, eliminates certain exceptions within ASC 740, Income Taxes, and clarifies certain aspects of the current guidance to promote consistent application. This guidance is effective for annual and interim periods in fiscal years beginning after December 15, 2020. Early adoption is permitted. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements . |
Accounts Receivable - Net
Accounts Receivable - Net | 3 Months Ended |
Jun. 30, 2020 | |
Accounts Receivable - Net [Abstract] | |
Accounts Receivable - Net | 3. Accounts Receivable — Net The Company has trade accounts receivable that result from the sale of goods and services. Accounts receivable — net includes offset accounts related to customer payment discrepancies, returned goods authorizations (“RGAs”) issued for in-transit unit returns, and allowances for credit losses. The Company believes its credit risk with respect to trade accounts receivable is limited due to its credit evaluation process and the long-term nature of its relationships with its largest customers. The Company utilizes a historical loss rate method, adjusted for any changes in economic conditions or risk characteristics, to estimate its expected credit losses each period. When developing an estimate of expected credit losses, the Company considers all available relevant information regarding the collectability of cash flows, including historical information, current conditions, and reasonable and supportable forecasts of future economic conditions over the contractual life of the receivable. The historical loss rate method considers past write-offs of trade accounts receivable over a period commensurate with the initial term of Company’s contracts with its customers. The Company recognizes the allowance for credit losses at inception and reassesses quarterly based on management’s expectation of the asset’s collectability. The Company’s accounts receivable are short-term in nature and written off only when all collection attempts have failed. The Company uses receivable discount programs with certain customers and their respective banks (see Note . Accounts receivable — net is comprised of the following: June 30, 2020 March 31, 2020 Accounts receivable — trade $ 82,835,000 $ 109,164,000 Allowance for credit losses (425,000 ) (4,252,000 ) Customer payment discrepancies (754,000 ) (1,040,000 ) Customer returns RGA issued (15,518,000 ) (12,124,000 ) Total accounts receivable — net $ 66,138,000 $ 91,748,000 The following table provides a roll-forward of the allowance for credit losses that is deducted from accounts receivable to present the net amount expected to be collected. Three Months Ended June 30, 2020 Balance at beginning of period $ 4,252,000 Provision for expected credit losses 170,000 Recoveries (100,000 ) Amounts written off charged against the allowance (3,897,000 ) Balance at end of period $ 425,000 |
Inventory
Inventory | 3 Months Ended |
Jun. 30, 2020 | |
Inventory [Abstract] | |
Inventory | 4. Inventory Inventory is comprised of the following: June 30, 2020 March 31, 2020 Inventory Raw materials $ 108,143,000 $ 99,360,000 Work-in-process 5,165,000 3,906,000 Finished goods 131,823,000 135,601,000 245,131,000 238,867,000 Less allowance for excess and obsolete inventory (13,812,000 ) (13,208,000 ) Inventory — net 231,319,000 225,659,000 Inventory unreturned 9,934,000 9,021,000 Total inventory $ 241,253,000 $ 234,680,000 |
Contract Assets
Contract Assets | 3 Months Ended |
Jun. 30, 2020 | |
Contract Assets [Abstract] | |
Contract Assets | 5. Contract Assets During the quarter ended June 30, 2020, the Company reduced the carrying value of Remanufactured Cores held at customers’ locations by . Contract assets are comprised of the following: June 30, 2020 March 31, 2020 Short-term contract assets Cores expected to be returned by customers $ 22,912,000 $ 12,579,000 Upfront payments to customers 2,198,000 2,865,000 Core premiums paid to customers 4,914,000 4,888,000 Total short-term contract assets $ 30,024,000 $ 20,332,000 Long-term contract assets Remanufactured cores held at customers’ locations $ 213,469,000 $ 217,616,000 Upfront payments to customers 418,000 589,000 Core premiums paid to customers 15,279,000 15,766,000 Long-term core inventory deposits 5,569,000 5,569,000 Total long-term contract assets $ 234,735,000 $ 239,540,000 |
Significant Customer and Other
Significant Customer and Other Information | 3 Months Ended |
Jun. 30, 2020 | |
Significant Customer and Other Information [Abstract] | |
Significant Customer and Other Information | 6. Significant Customer and Other Information Significant Customer Concentrations The largest customers accounted for the following total percentage of net sales: Three Months Ended June 30, 2020 2019 Net sales Customer A 45 % 38 % Customer B 26 % 23 % Customer C 17 % 20 % The largest customers accounted for the following total percentage of accounts receivable – trade: June 30, 2020 March 31,2020 Accounts receivable - trade Customer A 28 % 28 % Customer B 31 % 14 % Customer C 13 % 33 % Geographic and Product Information The Company’s products are sold predominantly in the U.S. and accounted for the following total percentages of net sales: Three Months Ended June 30, 2020 2019 Rotating electrical products 72 % 75 % Wheel hub products 18 % 18 % Brake related products 9 % 4 % Other products 1 % 3 % 100 % 100 % Significant Supplier Concentrations The Company had no suppliers that accounted for more than 10% of inventory purchases for the three months ended June 30, 2020 and 2019. |
Debt
Debt | 3 Months Ended |
Jun. 30, 2020 | |
Debt [Abstract] | |
Debt | 7. Debt The Company is party to a $268,620,000 senior secured financing, (as amended from time to time, the “Credit Facility”) with a syndicate of lenders, and PNC Bank, National Association, as administrative agent, consisting of (i) a $238,620,000 revolving loan facility, subject to borrowing base restrictions, a $24,000,000 sublimit for borrowings by Canadian borrowers, and a $20,000,000 sublimit for letters of credit (the “Revolving Facility”) and (ii) a $30,000,000 term loan facility (the “Term Loans”). The loans under the Credit Facility mature on June 5, 2023. The Credit Facility permits the payment of up to $20,000,000 of dividends and share repurchases per fiscal year, subject to a minimum availability threshold and pro forma compliance with financial covenants. In connection with the Credit Facility, the lenders have a security interest in substantially all of the assets of the Company. The Term Loans require quarterly principal payments of $937,500. The Credit Facility bears interest at rates equal to either LIBOR plus a margin of 2.25%, 2.50% or 2.75% or a reference rate plus a margin of 1.25%, 1.50% or 1.75%, in each case depending on the senior leverage ratio as of the applicable measurement date. There is also a facility fee of 0.375% to 0.50%, 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 2.93% and 2.94%, at June 30, 2020, respectively, and and at March 31, 2020, respectively. 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 at June 30, 2020 While the Company made payments to its Revolving Facility of in light of COVID- it elected not to further pay down its Revolving Facility and accumulated cash of as of June The Credit Facility only allows up to of credit for cash when computing the senior leverage ratio. 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 Term Loans at: June 30, 2020 March 31, 2020 Principal amount of term loan $ 23,437,000 $ 24,375,000 Unamortized financing fees (216,000 ) (235,000 ) Net carrying amount of term loan 23,221,000 24,140,000 Less current portion of term loan (3,678,000 ) (3,678,000 ) Long-term portion of term loan $ 19,543,000 $ 20,462,000 Future repayments of the Term Loans are as follows: Year Ending March 31, 2021 - remaining nine months $ 2,812,000 2022 3,750,000 2023 3,750,000 2024 13,125,000 Total payments $ 23,437,000 The Company had $ and $ outstanding under the Revolving Facility at June 30, 2020 and March 31, 2020, respectively. In addition, $ was outstanding for letters of credit at June 30, 2020. At June 30, 2020, after certain contractual adjustments, $ was available under the Revolving |
Contract Liabilities
Contract Liabilities | 3 Months Ended |
Jun. 30, 2020 | |
Contract Liabilities [Abstract] | |
Contract Liabilities | 8. Contract Liabilities Contract liabilities are comprised of the following: June 30, 2020 March 31, 2020 Short-term contract liabilities Customer core returns accruals $ 11,355,000 $ 4,126,000 Customer allowances earned 12,769,000 13,844,000 Customer deposits 1,538,000 1,365,000 Core bank liability 770,000 528,000 Accrued core payment, net 8,286,000 8,048,000 Total short-term contract liabilities $ 34,718,000 $ 27,911,000 Long-term contract liabilities Customer core returns accruals $ 69,212,000 $ 77,927,000 Customer allowances earned 517,000 542,000 Core bank liability 14,892,000 7,556,000 Accrued core payment, net 5,504,000 6,076,000 Total long-term contract liabilities $ 90,125,000 $ 92,101,000 |
Leases
Leases | 3 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Leases | 9. Leases The Company leases various facilities in North America and Asia under operating leases expiring through August The Company has material nonfunctional currency leases that could have a material impact on the Company’s condensed consolidated statements of operations. As required for other monetary liabilities, lessees remeasure foreign currency-denominated lease liabilities using the exchange rate at each reporting date, but the lease assets are nonmonetary assets measured at historical rates and are not affected by subsequent changes in the exchange rates. The Company recorded gains of and in general and administrative expenses in connection with the remeasurement of foreign currency-denominated lease liabilities during the months ended June and respectively. Balance sheet information for leases is as follows: June 30, 2020 March 31, 2020 Leases Classification Assets: Operating Operating lease assets $ 68,729,000 $ 53,029,000 Finance Plant and equipment 7,504,000 6,922,000 Total leased assets $ 76,233,000 $ 59,951,000 Liabilities: Current Operating Operating lease liabilities $ 6,249,000 $ 5,104,000 Finance Other current liabilities 2,289,000 2,059,000 Long-term Operating Long-term operating lease liabilities 74,426,000 61,425,000 Finance Other liabilities 4,556,000 3,905,000 Total lease liabilities $ 87,520,000 $ 72,493,000 Lease cost recognized in the condensed consolidated statements of operations is as follows: Three Months Ended June 30, 2020 2019 Lease cost Operating lease cost $ 2,683,000 $ 1,898,000 Short-term lease cost 317,000 403,000 Variable lease cost 143,000 130,000 Finance lease cost: Amortization of finance lease assets 413,000 358,000 Interest on finance lease liabilities 83,000 68,000 Total lease cost $ 3,639,000 $ 2,857,000 Maturities of lease commitments at June 30, 2020 were as follows: Maturity of lease liabilities Operating Leases Finance Leases Total 2021- remaining nine months $ 8,237,000 $ 1,981,000 $ 10,218,000 2022 10,312,000 2,338,000 12,650,000 2023 9,237,000 1,701,000 10,938,000 2024 8,097,000 927,000 9,024,000 2025 8,095,000 528,000 8,623,000 Thereafter 69,261,000 49,000 69,310,000 Total lease payments 113,239,000 7,524,000 120,763,000 Less amount representing interest (32,564,000 ) (679,000 ) (33,243,000 ) Present value of lease liabilities $ 80,675,000 $ 6,845,000 $ 87,520,000 Other information about leases is as follows: Three Months Ended June 30, 2020 2019 Lease term and discount rate Weighted-average remaining lease term (years): Finance leases 3.4 3.1 Operating leases 11.7 12.4 Weighted-average discount rate: Finance leases 5.6 % 5.0 % Operating leases 5.9 % 5.6 % |
Accounts Receivable Discount Pr
Accounts Receivable Discount Programs | 3 Months Ended |
Jun. 30, 2020 | |
Accounts Receivable Discount Programs [Abstract] | |
Accounts Receivable Discount Programs | 10. 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 accounts receivable discount programs: Three Months Ended June 30, 2020 2019 Receivables discounted $ 111,360,000 $ 96,854,000 Weighted average days 345 346 Annualized weighted average discount rate 2.5 % 3.9 % Amount of discount recognized as interest expense $ 2,686,000 $ 3,649,000 |
Net Loss per Share
Net Loss per Share | 3 Months Ended |
Jun. 30, 2020 | |
Net Loss Per Share [Abstract] | |
Net Loss per Share | 11. Net Loss per Share Basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted net loss income per share includes the effect, if any, from the potential exercise or conversion of securities, such as stock options and warrants, which would result in the issuance of incremental shares of common stock to the extent such impact is not anti-dilutive. The following presents a reconciliation of basic and diluted net loss per share: Three Months Ended June 30, 2020 2019 Net loss $ (3,012,000 ) $ (6,151,000 ) Basic shares 18,976,178 18,822,178 Effect of potentially dilutive securities - - Diluted shares 18,976,178 18,822,178 Net loss per share: Basic net loss per share $ (0.16 ) $ (0.33 ) Diluted net loss per share $ (0.16 ) $ (0.33 ) Potential common shares that would have the effect of increasing diluted net income per share or decreasing diluted net loss per share are considered to be anti-dilutive and as such, these shares are not included in calculating diluted net loss per share. For the three months ended June 30, 2020 and 2019, there were and , respectively, of potential common shares not included in the calculation of diluted net loss per share because their effect was anti-dilutive. |
Income Taxes
Income Taxes | 3 Months Ended |
Jun. 30, 2020 | |
Income Taxes [Abstract] | |
Income Taxes | 12. Income Taxes The Company recorded an income tax benefit of or an effective tax rate of , and or an effective tax rate of , for the months ended June and respectively. The effective tax rate for the months ended June was primarily impacted by non-deductible executive compensation under Internal Revenue Code Section (m) and foreign income taxed at rates that are different from the federal statutory rate. The Company continues to record a valuation allowance against its foreign deferred tax assets as a result of its non-U.S. net operating loss carry-forwards and non-U.S. research and development credits in connection with its acquisitions due to the uncertainty of their utilization in future periods. Should the actual amount differ from the Company’s estimates, the amount of the valuation allowance could be impacted. Realization of deferred tax assets from its U.S. operations is dependent upon the Company’s ability to generate sufficient future taxable income. Significant judgment is required in determining the Company’s provision for income taxes, deferred tax assets and liabilities and any valuation allowance recorded against the Company’s net deferred tax assets. The Company makes these estimates and judgments about its future taxable income that are based on assumptions that are consistent with the Company’s future plans. A valuation allowance is established when the Company believes it is not more likely than not all or some of a deferred tax assets will be realized. In evaluating the Company’s ability to recover deferred tax assets within the jurisdiction in which they arise, the Company considers all available positive and negative evidence. At June the Company is not under examination in any jurisdiction and the years ended March and remain subject to examination. The Company believes no significant changes in the unrecognized tax benefits will occur within the next months. |
Financial Risk Management and D
Financial Risk Management and Derivatives | 3 Months Ended |
Jun. 30, 2020 | |
Financial Risk Management and Derivatives [Abstract] | |
Financial Risk Management and Derivatives | 13. 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 overseas facilities, 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 Company designates forward foreign currency exchange contracts 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 and at June and March respectively. These contracts generally have a term of 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 derivative instruments on the condensed consolidated statements of operations: Gain Recognized within General and Administrative Expenses Derivatives Not Designated as Three Months Ended June 30, Hedging Instruments 2020 2019 Forward foreign currency exchange contracts $ 2,832,000 $ 35,000 The fair value of the forward foreign currency exchange contracts of and is included in other current liabilities in the condensed consolidated balance sheets at June and March respectively. The changes in the fair values of forward foreign currency exchange contracts are included in other liabilities in the condensed consolidated statements of cash flows for the months ended June and |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Jun. 30, 2020 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 14. Fair Value Measurements The following summarizes financial assets and liabilities measured at fair value, by level within the fair value hierarchy: June 30, 2020 March 31, 2020 Fair Value Measurements Using Inputs Considered as Fair Value Measurements Using Inputs Considered as Fair Value Level 1 Level 2 Level 3 Fair Value Level 1 Level 2 Level 3 Assets Short-term investments Mutual funds $ 1,061,000 $ 1,061,000 $ - $ - $ 850,000 $ 850,000 $ - $ - Liabilities Accrued liabilities Short-term contingent consideration 2,076,000 - - 2,076,000 2,190,000 - - 2,190,000 Other current liabilities Deferred compensation 1,061,000 1,061,000 - - 850,000 850,000 - - Forward foreign currency exchange contracts 3,452,000 - 3,452,000 - 6,284,000 - 6,284,000 - Other liabilities Long-term contingent consideration 530,000 - - 530,000 463,000 - - 463,000 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 (See Note 13). Contingent Consideration In December 2018, the Company completed the acquisition of certain assets and assumption of certain liabilities from Mechanical Power Conversion, LLC (“E&M”). In connection with this acquisition, the Company is contingently obligated to make additional payments to the former owners of E&M up to an aggregate of $5,200,000 over the next three years. In January 2019, the Company completed the acquisition of all the equity interests of Dixie. In connection with this acquisition, the Company is contingently obligated to make additional payments to the former owners of Dixie up to $1,130,000 over the next two years. The Company’s contingent consideration is recorded in accrued expenses and other liabilities in its condensed consolidated balance sheets at June 30, 2020 and March 31, 2020, and is a Level 3 liability measured at fair value. E&M Research and Development (“R&D”) Event Milestone The fair value of the R&D event milestone based on technology development and transfer was and at June and March respectively, determined using a probability weighted discounted cash flow method with the following assumptions commensurate with the term of the contingent consideration. Any subsequent changes in the fair value of the contingent consideration liability will be recorded in current period earnings as a general and administrative expense. The assumptions used to determine the fair value is as follows: June 30, 2020 Risk free interest rate 0.18 % Counter party rate 6.70 % Probability 100.00 % E&M Gross Profit Earn-out Consideration The fair value of the gross profit earn-out consideration was and at June and March respectively, determined using a Monte Carlo Simulation Model. Any subsequent changes in the fair value of the contingent consideration liability will be recorded in current period earnings as a general and administrative expense. The assumptions used to determine the fair value is as follows: June 30, 2020 Risk free interest rate 0.16 % Counter party rate 6.70 % Expected volatility (1) 37.00 % Weighted average cost of capital (1) 13.30 % (1) The range for expected volatility was 32.5% to 42.5% and the range for the weighted average cost of capital was 12.5% to 14.0%. Dixie Revenue Earn-out Consideration The fair value of the two-year revenue earn-out consideration was $56,000 and $293,000 at June 30, 2020 and March 31, 2020, respectively, determined using a Monte Carlo Simulation Model. The assumptions used to determine the fair value is as follows: June 30, 2020 Risk free interest rate 0.16 % Counter party rate 10.55 % Revenue volatility (1) 6.50 % Revenue discount rate (1) 2.00 % Asset volatility (1) 41.00 % (1) The range for revenue volatility was 5.5% to 7.5%, 1.5% to 2.5% for the revenue discount rate, and 36% to 46% for asset volatility. Any subsequent changes in the fair value of the contingent consideration liability will be recorded in current period earnings as a general and administrative expense. The following table summarizes the activity for financial assets and liabilities utilizing Level 3 fair value measurements: Three Months Ended June 30, 2020 2019 Contingent Consideration Contingent Consideration Beginning balance $ 2,653,000 $ 4,721,000 Changes in revaluations of contingent consideration included in earnings (47,000 ) 249,000 Ending balance $ 2,606,000 $ 4,970,000 During the months ended June the Company had no other 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 | 3 Months Ended |
Jun. 30, 2020 | |
Share-based Payments [Abstract] | |
Share-based Payments | 15. Share-based Payments Stock Options The Company granted options to purchase shares of common stock during the months ended June The Company did t grant any options to purchase shares of common stock during the months ended June 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: Three Months Ended June 30, 2020 Weighted average risk free interest rate 0.44 % Weighted average expected holding period (years) 5.97 Weighted average expected volatility 44.92 % Weighted average expected dividend yield - Weighted average fair value of options granted $ 6.43 The following is a summary of stock option transactions: Number of Shares Weighted Average Exercise Price Outstanding at March 31, 2020 1,536,123 $ 18.18 Granted 341,825 $ 15.14 Exercised (3,000 ) $ 6.62 Forfeited (11,509 ) $ 24.20 Outstanding at June 30, 2020 1,863,439 $ 17.60 At June 30, 2020, options to purchase 722,577 shares of common stock were unvested at the weighted average exercise price of $17.51. At June 30, 2020, there was $4,498,000 of total unrecognized compensation expense related to unvested stock option awards. Compensation expense related to unvested stock option awards will be recognized over a weighted average vesting period of approximately 2.3 years. Restricted Stock Units and Restricted Stock (collectively “RSUs”) During the months ended June the Company granted shares of RSUs with an estimated grant date fair value of based on the closing market price on the grant date. The Company did t grant any shares of RSUs during the months ended June The following is a summary of non-vested RSUs: Number of Shares Weighted Average Grant Date Fair Value Outstanding at March 31, 2020 201,983 $ 20.06 Granted 112,293 $ 15.15 Vested (43,929 ) $ 22.63 Outstanding at June 30, 2020 270,347 $ 17.60 At June 30, 2020, there was $3,839,000 of unrecognized compensation expense related to these awards, which will be recognized over the remaining vesting period of approximately 2.3 years. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 16. Commitments and Contingencies Warranty Returns The Company allows its customers to return goods that their consumers have returned to them, whether or not the returned item is 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. The following summarizes the changes in the warranty return accrual: Three Months Ended June 30, 2020 2019 Balance at beginning of period $ 18,300,000 $ 19,475,000 Charged to expense 23,089,000 23,185,000 Amounts processed (19,197,000 ) (26,842,000 ) Balance at end of period $ 22,192,000 $ 15,818,000 Contingencies The Company is subject to various lawsuits and claims. In addition, government agencies and self-regulatory organizations have the ability to conduct periodic examinations of and administrative proceedings regarding the Company’s business. Following an audit in fiscal 2019, the U.S. Customs and Border Protection stated that it believed that the Company owed additional duties of approximately $17 million from 2011 through mid-2018 relating to products that it imported from Mexico. The Company does not believe that this amount is correct and believes that it has numerous defenses and intends to dispute this amount vigorously. The Company cannot assure that the U.S. Customs and Border Protection will agree or that it will not need to accrue or pay additional amounts in the future. |
Basis of Presentation and New_2
Basis of Presentation and New Accounting Pronouncements (Policies) | 3 Months Ended |
Jun. 30, 2020 | |
Basis of Presentation and New Accounting Pronouncements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed 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 -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 months ended June are not necessarily indicative of the results that may be expected for the fiscal year ending March This report should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the fiscal year ended March which are included in the Company’s Annual Report on Form -K filed with the Securities and Exchange Commission (“SEC”) on June . The accompanying condensed 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 Summary of Significant Accounting Policies, to the consolidated financial statements that are presented in the Company’s Annual Report on Form -K for the fiscal year ended March . |
New Accounting Pronouncements Recently and Not Yet Adopted | New Accounting Pronouncements Recently Adopted Measurement of Credit Losses on Financial Instruments In June the FASB issued an accounting pronouncement related to the measurement of credit losses on financial instruments. This pronouncement, along with a subsequent Accounting Standards Updates (“ASU”) issued to clarify certain provisions of the new guidance, changes the impairment model for most financial assets and requires the use of an “expected loss” model for instruments measured at amortized cost. Under this model, entities are required to estimate the lifetime expected credit loss on such instruments and record an allowance to offset the amortized cost basis of the financial asset, resulting in a net presentation of the amount expected to be collected on the financial asset. The adoption of this guidance on April increased the Company’s required disclosures for its expected credit losses but did not have a material effect on its condensed consolidated financial statements. Prior to April 1, 2020, accounts receivable were recorded at cost less an allowance for doubtful accounts. The net amount of accounts receivable and corresponding allowance for doubtful accounts were presented in the condensed consolidated balance sheets. The Company maintains allowances for uncollectible accounts receivable for estimated losses resulting from the failure or inability of its customers to make required payments. Furthermore, receivable balances were assessed quarterly for impairment and an allowance was recorded if the receivable was considered impaired. Subsequent to April 1, 2020, accounts receivable are recorded at amortized cost less an allowance for credit losses that are not expected to be recovered. The net amount of accounts receivable and corresponding allowance for credit losses are presented separately in the condensed consolidated balance sheets. The Company maintains an allowance for credit losses resulting from the expected failure or inability of the Comany's customers to make required payments. The Company recognizes the allowance for credit losses at inception and reassess quarterly based on the asset’s expected collectability. The allowance is based on multiple factors including historical experience with bad debts, the credit quality of the customer base, the aging of such receivables and current macroeconomic conditions, such as COVID-19, as well as expectations of conditions in the future, if applicable. The Company's allowance for credit losses is based on the assessment of the collectability of assets pooled together with similar risk characteristics. The Company pools its receivables based on the shared risk characteristics of our customers. The Company records a provision for expected credit losses using a loss-rate method based on the ratio of our historical write-offs to our average trade accounts receivable. At each reporting period, the Company will assess whether financial assets in a pool continue to display similar risk characteristics. If particular receivables no longer display risk characteristics that are similar to those of the receivables in the pool, the Company may determine that it needs to move those receivables to a different pool or perform an individual assessment of expected credit losses for those specific receivables. Fair Value Measurements In August the FASB issued guidance , which changes the disclosure requirements for fair value measurements by removing, adding and modifying certain disclosures, including the range and weighted average of significant unobservable inputs used to develop Level fair value measurements. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level measurements, and the narrative description of measurement uncertainty should be applied prospectively only for the most recent interim or annual period presented in the initial year of adoption. All other amendments should be applied retrospectively applied to all periods presented upon their effective date. The adoption of this guidance on April modified certain of the Company’s disclosures for its Level fair value measurements but did not have an impact on its condensed consolidated financial statements. Reference Rate Reform In March the FASB issued guidance that, for a limited time, eases the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference the London Interbank Offered Rate or another reference rate expected to be discontinued due to reference rate reform. These amendments are effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December The Company will apply these amendments prospectively. The adoption of this guidance on April did not have an impact on the Company’s condensed consolidated financial statements for the months ended June . New Accounting Pronouncements Not Yet Adopted Income Taxes In December 2019, the FASB issued guidance that simplifies the accounting for income taxes, eliminates certain exceptions within ASC 740, Income Taxes, and clarifies certain aspects of the current guidance to promote consistent application. This guidance is effective for annual and interim periods in fiscal years beginning after December 15, 2020. Early adoption is permitted. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements |
Accounts Receivable - Net (Tabl
Accounts Receivable - Net (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Accounts Receivable - Net [Abstract] | |
Accounts Receivable | Accounts receivable — net is comprised of the following: June 30, 2020 March 31, 2020 Accounts receivable — trade $ 82,835,000 $ 109,164,000 Allowance for credit losses (425,000 ) (4,252,000 ) Customer payment discrepancies (754,000 ) (1,040,000 ) Customer returns RGA issued (15,518,000 ) (12,124,000 ) Total accounts receivable — net $ 66,138,000 $ 91,748,000 |
Allowance for Credit Losses | The following table provides a roll-forward of the allowance for credit losses that is deducted from accounts receivable to present the net amount expected to be collected. Three Months Ended June 30, 2020 Balance at beginning of period $ 4,252,000 Provision for expected credit losses 170,000 Recoveries (100,000 ) Amounts written off charged against the allowance (3,897,000 ) Balance at end of period $ 425,000 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Inventory [Abstract] | |
Inventory Net | Inventory is comprised of the following: June 30, 2020 March 31, 2020 Inventory Raw materials $ 108,143,000 $ 99,360,000 Work-in-process 5,165,000 3,906,000 Finished goods 131,823,000 135,601,000 245,131,000 238,867,000 Less allowance for excess and obsolete inventory (13,812,000 ) (13,208,000 ) Inventory — net 231,319,000 225,659,000 Inventory unreturned 9,934,000 9,021,000 Total inventory $ 241,253,000 $ 234,680,000 |
Contract Assets (Tables)
Contract Assets (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Contract Assets [Abstract] | |
Contract Assets | Contract assets are comprised of the following: June 30, 2020 March 31, 2020 Short-term contract assets Cores expected to be returned by customers $ 22,912,000 $ 12,579,000 Upfront payments to customers 2,198,000 2,865,000 Core premiums paid to customers 4,914,000 4,888,000 Total short-term contract assets $ 30,024,000 $ 20,332,000 Long-term contract assets Remanufactured cores held at customers’ locations $ 213,469,000 $ 217,616,000 Upfront payments to customers 418,000 589,000 Core premiums paid to customers 15,279,000 15,766,000 Long-term core inventory deposits 5,569,000 5,569,000 Total long-term contract assets $ 234,735,000 $ 239,540,000 |
Significant Customer and Othe_2
Significant Customer and Other Information (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Significant Customer and Other Information [Abstract] | |
Concentrations of Risk | Significant Customer Concentrations The largest customers accounted for the following total percentage of net sales: Three Months Ended June 30, 2020 2019 Net sales Customer A 45 % 38 % Customer B 26 % 23 % Customer C 17 % 20 % The largest customers accounted for the following total percentage of accounts receivable – trade: June 30, 2020 March 31,2020 Accounts receivable - trade Customer A 28 % 28 % Customer B 31 % 14 % Customer C 13 % 33 % Geographic and Product Information The Company’s products are sold predominantly in the U.S. and accounted for the following total percentages of net sales: Three Months Ended June 30, 2020 2019 Rotating electrical products 72 % 75 % Wheel hub products 18 % 18 % Brake related products 9 % 4 % Other products 1 % 3 % 100 % 100 % |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Debt [Abstract] | |
Information About the Term Loan | The following summarizes information about the Term Loans at: June 30, 2020 March 31, 2020 Principal amount of term loan $ 23,437,000 $ 24,375,000 Unamortized financing fees (216,000 ) (235,000 ) Net carrying amount of term loan 23,221,000 24,140,000 Less current portion of term loan (3,678,000 ) (3,678,000 ) Long-term portion of term loan $ 19,543,000 $ 20,462,000 |
Future Repayments of the Amended Term Loan, by Fiscal Year | Future repayments of the Term Loans are as follows: Year Ending March 31, 2021 - remaining nine months $ 2,812,000 2022 3,750,000 2023 3,750,000 2024 13,125,000 Total payments $ 23,437,000 |
Contract Liabilities (Tables)
Contract Liabilities (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Contract Liabilities [Abstract] | |
Contract Liabilities | Contract liabilities are comprised of the following: June 30, 2020 March 31, 2020 Short-term contract liabilities Customer core returns accruals $ 11,355,000 $ 4,126,000 Customer allowances earned 12,769,000 13,844,000 Customer deposits 1,538,000 1,365,000 Core bank liability 770,000 528,000 Accrued core payment, net 8,286,000 8,048,000 Total short-term contract liabilities $ 34,718,000 $ 27,911,000 Long-term contract liabilities Customer core returns accruals $ 69,212,000 $ 77,927,000 Customer allowances earned 517,000 542,000 Core bank liability 14,892,000 7,556,000 Accrued core payment, net 5,504,000 6,076,000 Total long-term contract liabilities $ 90,125,000 $ 92,101,000 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Balance Sheet Information for Leases | Balance sheet information for leases is as follows: June 30, 2020 March 31, 2020 Leases Classification Assets: Operating Operating lease assets $ 68,729,000 $ 53,029,000 Finance Plant and equipment 7,504,000 6,922,000 Total leased assets $ 76,233,000 $ 59,951,000 Liabilities: Current Operating Operating lease liabilities $ 6,249,000 $ 5,104,000 Finance Other current liabilities 2,289,000 2,059,000 Long-term Operating Long-term operating lease liabilities 74,426,000 61,425,000 Finance Other liabilities 4,556,000 3,905,000 Total lease liabilities $ 87,520,000 $ 72,493,000 |
Lease Cost Recognized in Consolidated Statements of Operations | Lease cost recognized in the condensed consolidated statements of operations is as follows: Three Months Ended June 30, 2020 2019 Lease cost Operating lease cost $ 2,683,000 $ 1,898,000 Short-term lease cost 317,000 403,000 Variable lease cost 143,000 130,000 Finance lease cost: Amortization of finance lease assets 413,000 358,000 Interest on finance lease liabilities 83,000 68,000 Total lease cost $ 3,639,000 $ 2,857,000 |
Maturity of Lease Commitments | Maturities of lease commitments at June 30, 2020 were as follows: Maturity of lease liabilities Operating Leases Finance Leases Total 2021- remaining nine months $ 8,237,000 $ 1,981,000 $ 10,218,000 2022 10,312,000 2,338,000 12,650,000 2023 9,237,000 1,701,000 10,938,000 2024 8,097,000 927,000 9,024,000 2025 8,095,000 528,000 8,623,000 Thereafter 69,261,000 49,000 69,310,000 Total lease payments 113,239,000 7,524,000 120,763,000 Less amount representing interest (32,564,000 ) (679,000 ) (33,243,000 ) Present value of lease liabilities $ 80,675,000 $ 6,845,000 $ 87,520,000 |
Other Information about Leases | Other information about leases is as follows: Three Months Ended June 30, 2020 2019 Lease term and discount rate Weighted-average remaining lease term (years): Finance leases 3.4 3.1 Operating leases 11.7 12.4 Weighted-average discount rate: Finance leases 5.6 % 5.0 % Operating leases 5.9 % 5.6 % |
Accounts Receivable Discount _2
Accounts Receivable Discount Programs (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Accounts Receivable Discount Programs [Abstract] | |
Accounts Receivable Discount Programs | The following is a summary of accounts receivable discount programs: Three Months Ended June 30, 2020 2019 Receivables discounted $ 111,360,000 $ 96,854,000 Weighted average days 345 346 Annualized weighted average discount rate 2.5 % 3.9 % Amount of discount recognized as interest expense $ 2,686,000 $ 3,649,000 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Net Loss Per Share [Abstract] | |
Reconciliation of Basic and Diluted Net Loss Per Share | The following presents a reconciliation of basic and diluted net loss per share: Three Months Ended June 30, 2020 2019 Net loss $ (3,012,000 ) $ (6,151,000 ) Basic shares 18,976,178 18,822,178 Effect of potentially dilutive securities - - Diluted shares 18,976,178 18,822,178 Net loss per share: Basic net loss per share $ (0.16 ) $ (0.33 ) Diluted net loss per share $ (0.16 ) $ (0.33 ) |
Financial Risk Management and_2
Financial Risk Management and Derivatives (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Financial Risk Management and Derivatives [Abstract] | |
Derivative Instruments on Consolidated Statements of Operations | The following shows the effect of derivative instruments on the condensed consolidated statements of operations: Gain Recognized within General and Administrative Expenses Derivatives Not Designated as Three Months Ended June 30, Hedging Instruments 2020 2019 Forward foreign currency exchange contracts $ 2,832,000 $ 35,000 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Fair Value Measurements [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value Recurring Basis | The following summarizes financial assets and liabilities measured at fair value, by level within the fair value hierarchy: June 30, 2020 March 31, 2020 Fair Value Measurements Using Inputs Considered as Fair Value Measurements Using Inputs Considered as Fair Value Level 1 Level 2 Level 3 Fair Value Level 1 Level 2 Level 3 Assets Short-term investments Mutual funds $ 1,061,000 $ 1,061,000 $ - $ - $ 850,000 $ 850,000 $ - $ - Liabilities Accrued liabilities Short-term contingent consideration 2,076,000 - - 2,076,000 2,190,000 - - 2,190,000 Other current liabilities Deferred compensation 1,061,000 1,061,000 - - 850,000 850,000 - - Forward foreign currency exchange contracts 3,452,000 - 3,452,000 - 6,284,000 - 6,284,000 - Other liabilities Long-term contingent consideration 530,000 - - 530,000 463,000 - - 463,000 |
Assumptions Used to Determine Fair Value of Contingent Consideration | The assumptions used to determine the fair value is as follows: June 30, 2020 Risk free interest rate 0.18 % Counter party rate 6.70 % Probability 100.00 % E&M Gross Profit Earn-out Consideration The assumptions used to determine the fair value is as follows: June 30, 2020 Risk free interest rate 0.16 % Counter party rate 6.70 % Expected volatility (1) 37.00 % Weighted average cost of capital (1) 13.30 % (1) The range for expected volatility was 32.5% to 42.5% and the range for the weighted average cost of capital was 12.5% to 14.0%. Dixie Revenue Earn-out Consideration The assumptions used to determine the fair value is as follows: June 30, 2020 Risk free interest rate 0.16 % Counter party rate 10.55 % Revenue volatility (1) 6.50 % Revenue discount rate (1) 2.00 % Asset volatility (1) 41.00 % (1) The range for revenue volatility was 5.5% to 7.5%, 1.5% to 2.5% for the revenue discount rate, and 36% to 46% for asset volatility. |
Change in Warrant Liability Measured at Fair Value Recurring Basis Using Significant Unobservable Inputs (Level 3) | The following table summarizes the activity for financial assets and liabilities utilizing Level 3 fair value measurements: Three Months Ended June 30, 2020 2019 Contingent Consideration Contingent Consideration Beginning balance $ 2,653,000 $ 4,721,000 Changes in revaluations of contingent consideration included in earnings (47,000 ) 249,000 Ending balance $ 2,606,000 $ 4,970,000 |
Share-based Payments (Tables)
Share-based Payments (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Share-based Payments [Abstract] | |
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: Three Months Ended June 30, 2020 Weighted average risk free interest rate 0.44 % Weighted average expected holding period (years) 5.97 Weighted average expected volatility 44.92 % Weighted average expected dividend yield - Weighted average fair value of options granted $ 6.43 |
Stock Option Transactions | The following is a summary of stock option transactions: Number of Shares Weighted Average Exercise Price Outstanding at March 31, 2020 1,536,123 $ 18.18 Granted 341,825 $ 15.14 Exercised (3,000 ) $ 6.62 Forfeited (11,509 ) $ 24.20 Outstanding at June 30, 2020 1,863,439 $ 17.60 |
Restricted Stock Units Activity | The following is a summary of non-vested RSUs: Number of Shares Weighted Average Grant Date Fair Value Outstanding at March 31, 2020 201,983 $ 20.06 Granted 112,293 $ 15.15 Vested (43,929 ) $ 22.63 Outstanding at June 30, 2020 270,347 $ 17.60 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies [Abstract] | |
Changes in Warranty Return Accrual | The following summarizes the changes in the warranty return accrual: Three Months Ended June 30, 2020 2019 Balance at beginning of period $ 18,300,000 $ 19,475,000 Charged to expense 23,089,000 23,185,000 Amounts processed (19,197,000 ) (26,842,000 ) Balance at end of period $ 22,192,000 $ 15,818,000 |
Company Background and Organi_2
Company Background and Organization (Details) | 3 Months Ended |
Jun. 30, 2020ft²Segment | |
Company Background and Organization [Abstract] | |
Area of distribution center in Tijuana, Mexico | ft² | 410,000 |
Number of operating segments | 3 |
Number of Reportable Segments | 1 |
Accounts Receivable - Net (Deta
Accounts Receivable - Net (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2020 | Mar. 31, 2020 | |
Components of accounts receivable [Abstract] | ||
Accounts receivable - trade | $ 82,835,000 | $ 109,164,000 |
Allowance for credit losses | (425,000) | (4,252,000) |
Customer payment discrepancies | (754,000) | (1,040,000) |
Customer returns RGA issued | (15,518,000) | (12,124,000) |
Total accounts receivable - net | 66,138,000 | $ 91,748,000 |
Allowance for credit losses [Roll Forward] | ||
Balance at beginning of period | 4,252,000 | |
Provision for expected credit losses | 170,000 | |
Recoveries | (100,000) | |
Amounts written off charged against the allowance | (3,897,000) | |
Balance at end of period | $ 425,000 |
Inventory (Details)
Inventory (Details) - USD ($) | Jun. 30, 2020 | Mar. 31, 2020 |
Inventory [Abstract] | ||
Raw materials | $ 108,143,000 | $ 99,360,000 |
Work-in-process | 5,165,000 | 3,906,000 |
Finished goods | 131,823,000 | 135,601,000 |
Inventory, gross | 245,131,000 | 238,867,000 |
Less allowance for excess and obsolete inventory | (13,812,000) | (13,208,000) |
Inventory - net | 231,319,000 | 225,659,000 |
Inventory unreturned | 9,934,000 | 9,021,000 |
Total inventory | $ 241,253,000 | $ 234,680,000 |
Contract Assets (Details)
Contract Assets (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2020 | Mar. 31, 2020 | |
Contract Assets [Abstract] | ||
Long-term contract assets, write-down | $ 1,384,000 | |
Short-term contract assets [Abstract] | ||
Cores expected to be returned by customers | 22,912,000 | $ 12,579,000 |
Upfront payments to customers | 2,198,000 | 2,865,000 |
Core premiums paid to customers | 4,914,000 | 4,888,000 |
Total short-term contract assets | 30,024,000 | 20,332,000 |
Long-term contract assets [Abstract] | ||
Remanufactured cores held at customers' locations | 213,469,000 | 217,616,000 |
Upfront payments to customers | 418,000 | 589,000 |
Core premiums paid to customers | 15,279,000 | 15,766,000 |
Long-term core inventory deposits | 5,569,000 | 5,569,000 |
Total long-term contract assets | $ 234,735,000 | $ 239,540,000 |
Significant Customer and Othe_3
Significant Customer and Other Information (Details) | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2020 | |
Net Sales [Member] | |||
Concentration Risk [Abstract] | |||
Concentration risk percentage | 100.00% | 100.00% | |
Net Sales [Member] | Customer A [Member] | |||
Concentration Risk [Abstract] | |||
Concentration risk percentage | 45.00% | 38.00% | |
Net Sales [Member] | Customer B [Member] | |||
Concentration Risk [Abstract] | |||
Concentration risk percentage | 26.00% | 23.00% | |
Net Sales [Member] | Customer C [Member] | |||
Concentration Risk [Abstract] | |||
Concentration risk percentage | 17.00% | 20.00% | |
Net Sales [Member] | Rotating Electrical Products [Member] | |||
Concentration Risk [Abstract] | |||
Concentration risk percentage | 72.00% | 75.00% | |
Net Sales [Member] | Wheel Hub Products [Member] | |||
Concentration Risk [Abstract] | |||
Concentration risk percentage | 18.00% | 18.00% | |
Net Sales [Member] | Brake-Related Products [Member] | |||
Concentration Risk [Abstract] | |||
Concentration risk percentage | 9.00% | 4.00% | |
Net Sales [Member] | Other Products [Member] | |||
Concentration Risk [Abstract] | |||
Concentration risk percentage | 1.00% | 3.00% | |
Accounts Receivable - Trade [Member] | Customer A [Member] | |||
Concentration Risk [Abstract] | |||
Concentration risk percentage | 28.00% | 28.00% | |
Accounts Receivable - Trade [Member] | Customer B [Member] | |||
Concentration Risk [Abstract] | |||
Concentration risk percentage | 31.00% | 14.00% | |
Accounts Receivable - Trade [Member] | Customer C [Member] | |||
Concentration Risk [Abstract] | |||
Concentration risk percentage | 13.00% | 33.00% |
Debt (Details)
Debt (Details) - USD ($) | 3 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2020 | |
Amended Credit Facility [Abstract] | |||
Repayments of revolving loan | $ 40,000,000 | $ 0 | |
Cash | 27,464,000 | $ 49,616,000 | |
Summarized information about the term loan [Abstract] | |||
Less current portion of term loan | (3,678,000) | (3,678,000) | |
Long-term portion of term loan | 19,543,000 | $ 20,462,000 | |
COVID-19 [Member] | |||
Amended Credit Facility [Abstract] | |||
Cash | 27,464,000 | ||
Revolving Facility [Member] | |||
Amended Credit Facility [Abstract] | |||
Repayments of revolving loan | 40,000,000 | ||
Credit for cash | $ 6,000,000 | ||
Interest rate at end of period | 2.94% | 3.64% | |
Revolving Facility [Member] | Letters of Credit [Member] | |||
Amended Credit Facility [Abstract] | |||
Outstanding balance under revolving loan | $ 5,679,000 | ||
Term Loans [Member] | |||
Amended Credit Facility [Abstract] | |||
Quarterly principal payments | $ 937,500 | ||
Interest rate at end of period | 2.93% | 4.34% | |
Summarized information about the term loan [Abstract] | |||
Principal amount of term loan | $ 23,437,000 | $ 24,375,000 | |
Unamortized financing fees | (216,000) | (235,000) | |
Net carrying amount of term loan | 23,221,000 | 24,140,000 | |
Less current portion of term loan | (3,678,000) | (3,678,000) | |
Long-term portion of term loan | 19,543,000 | 20,462,000 | |
Future repayments of the Term Loan, by fiscal year [Abstract] | |||
2021 - remaining nine months | 2,812,000 | ||
2022 | 3,750,000 | ||
2023 | 3,750,000 | ||
2024 | 13,125,000 | ||
Total payments | 23,437,000 | 24,375,000 | |
Credit Facility [Member] | |||
Amended Credit Facility [Abstract] | |||
Maximum borrowing capacity | $ 268,620,000 | ||
Debt instrument, maturity date | Jun. 5, 2023 | ||
Credit Facility [Member] | Minimum [Member] | |||
Amended Credit Facility [Abstract] | |||
Facility fee on total leverage ratio | 0.375% | ||
Credit Facility [Member] | Maximum [Member] | |||
Amended Credit Facility [Abstract] | |||
Dividend payments and share repurchases, annual maximum amount permitted | $ 20,000,000 | ||
Facility fee on total leverage ratio | 0.50% | ||
Credit Facility [Member] | LIBOR [Member] | |||
Amended Credit Facility [Abstract] | |||
Reference interest rate under option 1, floor | 2.25% | ||
Interest rate over LIBOR rate under option 1 | 2.50% | ||
Interest rate above base rate under option 2 | 2.75% | ||
Credit Facility [Member] | Reference Rate [Member] | |||
Amended Credit Facility [Abstract] | |||
Reference interest rate under option 1, floor | 1.25% | ||
Interest rate over LIBOR rate under option 1 | 1.50% | ||
Interest rate above base rate under option 2 | 1.75% | ||
Credit Facility [Member] | Revolving Facility [Member] | |||
Amended Credit Facility [Abstract] | |||
Maximum borrowing capacity | $ 238,620,000 | ||
Outstanding balance under revolving loan | 112,000,000 | $ 152,000,000 | |
Amount available under revolving facility | 85,097,000 | ||
Credit Facility [Member] | Revolving Facility [Member] | Canadian Borrowers [Member] | |||
Amended Credit Facility [Abstract] | |||
Maximum borrowing capacity | 24,000,000 | ||
Credit Facility [Member] | Revolving Facility [Member] | Letters of Credit [Member] | |||
Amended Credit Facility [Abstract] | |||
Maximum borrowing capacity | 20,000,000 | ||
Credit Facility [Member] | Term Loans [Member] | |||
Amended Credit Facility [Abstract] | |||
Maximum borrowing capacity | $ 30,000,000 |
Contract Liabilities (Details)
Contract Liabilities (Details) - USD ($) | Jun. 30, 2020 | Mar. 31, 2020 |
Short-term contract liabilities [Abstract] | ||
Customer core returns accruals | $ 11,355,000 | $ 4,126,000 |
Customer allowances earned | 12,769,000 | 13,844,000 |
Customer deposits | 1,538,000 | 1,365,000 |
Core bank liability | 770,000 | 528,000 |
Accrued core payment, net | 8,286,000 | 8,048,000 |
Total short-term contract liabilities | 34,718,000 | 27,911,000 |
Long-term contract liabilities [Abstract] | ||
Customer core returns accruals | 69,212,000 | 77,927,000 |
Customer allowances earned | 517,000 | 542,000 |
Core bank liability | 14,892,000 | 7,556,000 |
Accrued core payment, net | 5,504,000 | 6,076,000 |
Total long-term contract liabilities | $ 90,125,000 | $ 92,101,000 |
Leases, General Information (De
Leases, General Information (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Leases [Abstract] | ||
Gain in foreign currency-denominated lease liabilities | $ 1,985,000 | $ 502,000 |
Leases, Balance Sheet Informati
Leases, Balance Sheet Information (Details) - USD ($) | Jun. 30, 2020 | Mar. 31, 2020 |
Assets: [Abstract] | ||
Operating, Operating lease assets | $ 68,729,000 | $ 53,029,000 |
Finance, Plant and equipment | 7,504,000 | 6,922,000 |
Total leased assets | 76,233,000 | 59,951,000 |
Current [Abstract] | ||
Operating, Operating lease liabilities | 6,249,000 | 5,104,000 |
Finance, Other current liabilities | 2,289,000 | 2,059,000 |
Long-term [Abstract] | ||
Operating, Long-term operating lease liabilities | 74,426,000 | 61,425,000 |
Finance, Other liabilities | 4,556,000 | 3,905,000 |
Total lease liabilities | $ 87,520,000 | $ 72,493,000 |
Leases, Cost Recogized in Conso
Leases, Cost Recogized in Consolidated Statements of Operations (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Lease cost [Abstract] | ||
Operating lease cost | $ 2,683,000 | $ 1,898,000 |
Short-term lease cost | 317,000 | 403,000 |
Variable lease cost | 143,000 | 130,000 |
Finance lease cost: [Abstract] | ||
Amortization of finance lease assets | 413,000 | 358,000 |
Interest on finance lease liabilities | 83,000 | 68,000 |
Total lease cost | $ 3,639,000 | $ 2,857,000 |
Leases, Maturities of Lease Com
Leases, Maturities of Lease Commitments (Details) - USD ($) | Jun. 30, 2020 | Mar. 31, 2020 |
Operating Leases [Abstract] | ||
2021 - remaining nine months | $ 8,237,000 | |
2022 | 10,312,000 | |
2023 | 9,237,000 | |
2024 | 8,097,000 | |
2025 | 8,095,000 | |
Thereafter | 69,261,000 | |
Total lease payments | 113,239,000 | |
Less amount representing interest | (32,564,000) | |
Present value of lease liabilities | 80,675,000 | |
Finance Leases [Abstract] | ||
2021 - remaining nine months | 1,981,000 | |
2022 | 2,338,000 | |
2023 | 1,701,000 | |
2024 | 927,000 | |
2025 | 528,000 | |
Thereafter | 49,000 | |
Total lease payments | 7,524,000 | |
Less amount representing interest | (679,000) | |
Present value of lease liabilities | 6,845,000 | |
Total [Abstract] | ||
2021 - remaining nine months | 10,218,000 | |
2022 | 12,650,000 | |
2023 | 10,938,000 | |
2024 | 9,024,000 | |
2025 | 8,623,000 | |
Thereafter | 69,310,000 | |
Total lease payments | 120,763,000 | |
Less amount representing interest | (33,243,000) | |
Present value of lease liabilities | $ 87,520,000 | $ 72,493,000 |
Leases, Other Information (Deta
Leases, Other Information (Details) | Jun. 30, 2020 | Jun. 30, 2019 |
Weighted-average remaining lease term (years): [Abstract] | ||
Finance leases | 3 years 4 months 24 days | 3 years 1 month 6 days |
Operating leases | 11 years 8 months 12 days | 12 years 4 months 24 days |
Weighted-average discount rate: [Abstract] | ||
Finance leases | 5.60% | 5.00% |
Operating leases | 5.90% | 5.60% |
Accounts Receivable Discount _3
Accounts Receivable Discount Programs (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Accounts Receivable Discount Programs [Abstract] | ||
Receivables discounted | $ 111,360,000 | $ 96,854,000 |
Weighted average days | 345 days | 346 days |
Annualized weighted average discount rate | 2.50% | 3.90% |
Amount of discount recognized as interest expense | $ 2,686,000 | $ 3,649,000 |
Net Loss per Share (Details)
Net Loss per Share (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Reconciliation of basic and diluted net loss per share [Abstract] | ||
Net loss | $ (3,012,000) | $ (6,151,000) |
Basic shares (in shares) | 18,976,178 | 18,822,178 |
Effect of potentially dilutive securities (in shares) | 0 | 0 |
Diluted shares (in shares) | 18,976,178 | 18,822,178 |
Net loss per share: | ||
Basic net loss per share (in dollars per share) | $ (0.16) | $ (0.33) |
Diluted net loss per share (in dollars per share) | $ (0.16) | $ (0.33) |
Options [Member] | ||
Antidilutive Securities [Abstract] | ||
Antidilutive shares excluded from computation of earnings per share (in shares) | 2,133,786 | 1,520,811 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Income Taxes [Abstract] | ||
Income tax benefit | $ 1,022,000 | $ 1,730,000 |
Effective income tax rate | 25.30% | 22.00% |
Financial Risk Management and_3
Financial Risk Management and Derivatives (Details) - USD ($) | 3 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2020 | |
Foreign Currency Exchange Contracts [Abstract] | |||
Forward foreign currency exchange contracts included in included other current liabilities | $ 3,452,000 | $ 6,284,000 | |
Forward Foreign Currency Exchange Contracts [Member] | |||
Foreign Currency Exchange Contracts [Abstract] | |||
Notional amount of foreign currency derivatives | 36,307,000 | $ 42,052,000 | |
Forward Foreign Currency Exchange Contracts [Member] | General and Administrative Expenses [Member] | |||
Foreign Currency Exchange Contracts [Abstract] | |||
Forward foreign currency exchange contracts | $ 2,832,000 | $ 35,000 | |
Forward Foreign Currency Exchange Contracts [Member] | Maximum [Member] | |||
Foreign Currency Exchange Contracts [Abstract] | |||
Derivative, term of contract | 1 year |
Fair Value Measurements (Detail
Fair Value Measurements (Details) | 3 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2020USD ($) | Jan. 31, 2019USD ($) | Dec. 31, 2018USD ($) | ||
Contingent Consideration [Member] | ||||||
Change in contingent consideration measured at fair value recurring basis using significant unobservable inputs (Level 3) [Roll Forward] | ||||||
Beginning balance | $ 2,653,000 | $ 4,721,000 | $ 4,721,000 | |||
Changes in revaluation of contingent consideration included in earnings | (47,000) | 249,000 | ||||
Ending balance | 2,606,000 | $ 4,970,000 | 2,653,000 | |||
Recurring [Member] | ||||||
Short-term investments [Abstract] | ||||||
Mutual funds | 1,061,000 | 850,000 | ||||
Accrued liabilities [Abstract] | ||||||
Short-term contingent consideration | 2,076,000 | 2,190,000 | ||||
Other current liabilities [Abstract] | ||||||
Deferred compensation | 1,061,000 | 850,000 | ||||
Forward foreign currency exchange contracts | 3,452,000 | 6,284,000 | ||||
Other liabilities [Abstract] | ||||||
Long-term contingent consideration | 530,000 | 463,000 | ||||
Recurring [Member] | Level 1 [Member] | ||||||
Short-term investments [Abstract] | ||||||
Mutual funds | 1,061,000 | 850,000 | ||||
Accrued liabilities [Abstract] | ||||||
Short-term contingent consideration | 0 | 0 | ||||
Other current liabilities [Abstract] | ||||||
Deferred compensation | 1,061,000 | 850,000 | ||||
Forward foreign currency exchange contracts | 0 | 0 | ||||
Other liabilities [Abstract] | ||||||
Long-term contingent consideration | 0 | 0 | ||||
Recurring [Member] | Level 2 [Member] | ||||||
Short-term investments [Abstract] | ||||||
Mutual funds | 0 | 0 | ||||
Accrued liabilities [Abstract] | ||||||
Short-term contingent consideration | 0 | 0 | ||||
Other current liabilities [Abstract] | ||||||
Deferred compensation | 0 | 0 | ||||
Forward foreign currency exchange contracts | 3,452,000 | 6,284,000 | ||||
Other liabilities [Abstract] | ||||||
Long-term contingent consideration | 0 | 0 | ||||
Recurring [Member] | Level 3 [Member] | ||||||
Short-term investments [Abstract] | ||||||
Mutual funds | 0 | 0 | ||||
Accrued liabilities [Abstract] | ||||||
Short-term contingent consideration | 2,076,000 | 2,190,000 | ||||
Other current liabilities [Abstract] | ||||||
Deferred compensation | 0 | 0 | ||||
Forward foreign currency exchange contracts | 0 | 0 | ||||
Other liabilities [Abstract] | ||||||
Long-term contingent consideration | $ 530,000 | 463,000 | ||||
Two-year R&D Milestone Event [Member] | Risk Free Interest Rate [Member] | ||||||
Fair Value Assumptions [Abstract] | ||||||
Assumptions for fair value of contingent consideration | 0.0018 | |||||
Two-year R&D Milestone Event [Member] | Counter Party Rate [Member] | ||||||
Fair Value Assumptions [Abstract] | ||||||
Assumptions for fair value of contingent consideration | 0.0670 | |||||
Two-year R&D Milestone Event [Member] | Probability [Member] | ||||||
Fair Value Assumptions [Abstract] | ||||||
Assumptions for fair value of contingent consideration | 1 | |||||
Gross Profit Earn-out Consideration [Member] | Risk Free Interest Rate [Member] | ||||||
Fair Value Assumptions [Abstract] | ||||||
Assumptions for fair value of contingent consideration | 0.0016 | |||||
Gross Profit Earn-out Consideration [Member] | Counter Party Rate [Member] | ||||||
Fair Value Assumptions [Abstract] | ||||||
Assumptions for fair value of contingent consideration | 0.0670 | |||||
Gross Profit Earn-out Consideration [Member] | Expected Volatility [Member] | ||||||
Fair Value Assumptions [Abstract] | ||||||
Assumptions for fair value of contingent consideration | [1] | 0.3700 | ||||
Gross Profit Earn-out Consideration [Member] | Expected Volatility [Member] | Minimum [Member] | ||||||
Fair Value Assumptions [Abstract] | ||||||
Assumptions for fair value of contingent consideration | 0.325 | |||||
Gross Profit Earn-out Consideration [Member] | Expected Volatility [Member] | Maximum [Member] | ||||||
Fair Value Assumptions [Abstract] | ||||||
Assumptions for fair value of contingent consideration | 0.425 | |||||
Gross Profit Earn-out Consideration [Member] | Weighted Average Cost of Capital [Member] | ||||||
Fair Value Assumptions [Abstract] | ||||||
Assumptions for fair value of contingent consideration | [1] | 0.1330 | ||||
Gross Profit Earn-out Consideration [Member] | Weighted Average Cost of Capital [Member] | Minimum [Member] | ||||||
Fair Value Assumptions [Abstract] | ||||||
Assumptions for fair value of contingent consideration | 0.125 | |||||
Gross Profit Earn-out Consideration [Member] | Weighted Average Cost of Capital [Member] | Maximum [Member] | ||||||
Fair Value Assumptions [Abstract] | ||||||
Assumptions for fair value of contingent consideration | 0.140 | |||||
Mechanical Power Conversion, LLC [Member] | ||||||
Contingent Consideration [Abstract] | ||||||
Aggregate contingent consideration obligation | $ 5,200,000 | |||||
Contingent consideration payment period | 3 years | |||||
Mechanical Power Conversion, LLC [Member] | Two-year R&D Milestone Event [Member] | ||||||
Contingent Consideration [Abstract] | ||||||
Fair value of contingent consideration obligations | $ 1,200,000 | $ 1,130,000 | ||||
Term of R&D event milestone | 2 years | 2 years | ||||
Mechanical Power Conversion, LLC [Member] | Gross Profit Earn-out Consideration [Member] | ||||||
Contingent Consideration [Abstract] | ||||||
Fair value of contingent consideration obligations | $ 1,350,000 | $ 1,230,000 | ||||
Term of gross profit earn-out arrangement | 3 years | 3 years | ||||
Dixie Electric, Ltd [Member] | ||||||
Contingent Consideration [Abstract] | ||||||
Contingent consideration payment period | 2 years | |||||
Dixie Electric, Ltd [Member] | Maximum [Member] | ||||||
Contingent Consideration [Abstract] | ||||||
Aggregate contingent consideration obligation | $ 1,130,000 | |||||
Dixie Electric, Ltd [Member] | Gross Profit Earn-out Consideration [Member] | Revenue Volatility [Member] | Minimum [Member] | ||||||
Fair Value Assumptions [Abstract] | ||||||
Assumptions for fair value of contingent consideration | 0.055 | |||||
Dixie Electric, Ltd [Member] | Gross Profit Earn-out Consideration [Member] | Revenue Volatility [Member] | Maximum [Member] | ||||||
Fair Value Assumptions [Abstract] | ||||||
Assumptions for fair value of contingent consideration | 0.075 | |||||
Dixie Electric, Ltd [Member] | Revenue Earn-out Consideration [Member] | ||||||
Contingent Consideration [Abstract] | ||||||
Fair value of contingent consideration obligations | $ 56,000 | $ 293,000 | ||||
Term of revenue earn-out arrangement | 2 years | 2 years | ||||
Dixie Electric, Ltd [Member] | Revenue Earn-out Consideration [Member] | Risk Free Interest Rate [Member] | ||||||
Fair Value Assumptions [Abstract] | ||||||
Assumptions for fair value of contingent consideration | 0.0016 | |||||
Dixie Electric, Ltd [Member] | Revenue Earn-out Consideration [Member] | Counter Party Rate [Member] | ||||||
Fair Value Assumptions [Abstract] | ||||||
Assumptions for fair value of contingent consideration | 0.1055 | |||||
Dixie Electric, Ltd [Member] | Revenue Earn-out Consideration [Member] | Asset Volatility [Member] | ||||||
Fair Value Assumptions [Abstract] | ||||||
Assumptions for fair value of contingent consideration | [2] | 0.4100 | ||||
Dixie Electric, Ltd [Member] | Revenue Earn-out Consideration [Member] | Asset Volatility [Member] | Minimum [Member] | ||||||
Fair Value Assumptions [Abstract] | ||||||
Assumptions for fair value of contingent consideration | 0.36 | |||||
Dixie Electric, Ltd [Member] | Revenue Earn-out Consideration [Member] | Asset Volatility [Member] | Maximum [Member] | ||||||
Fair Value Assumptions [Abstract] | ||||||
Assumptions for fair value of contingent consideration | 0.46 | |||||
Dixie Electric, Ltd [Member] | Revenue Earn-out Consideration [Member] | Revenue Volatility [Member] | ||||||
Fair Value Assumptions [Abstract] | ||||||
Assumptions for fair value of contingent consideration | [2] | 0.0650 | ||||
Dixie Electric, Ltd [Member] | Revenue Earn-out Consideration [Member] | Revenue Discount Rate [Member] | ||||||
Fair Value Assumptions [Abstract] | ||||||
Assumptions for fair value of contingent consideration | [2] | 0.0200 | ||||
Dixie Electric, Ltd [Member] | Revenue Earn-out Consideration [Member] | Revenue Discount Rate [Member] | Minimum [Member] | ||||||
Fair Value Assumptions [Abstract] | ||||||
Assumptions for fair value of contingent consideration | 0.015 | |||||
Dixie Electric, Ltd [Member] | Revenue Earn-out Consideration [Member] | Revenue Discount Rate [Member] | Maximum [Member] | ||||||
Fair Value Assumptions [Abstract] | ||||||
Assumptions for fair value of contingent consideration | 0.025 | |||||
[1] | The range for expected volatility was 32.5% to 42.5% and the range for the weighted average cost of capital was 12.5% to 14.0%. | |||||
[2] | The range for revenue volatility was 5.5% to 7.5%, 1.5% to 2.5% for the revenue discount rate, and 36% to 46% for asset volatility. |
Share-based Payments - Stock Op
Share-based Payments - Stock Options Activity (Details) - Stock Options [Member] - USD ($) | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Black-Scholes option pricing model assumptions used to derive weighted average fair value of stock options granted [Abstract] | ||
Weighted average risk free interest rate | 0.44% | |
Weighted average expected holding period | 5 years 11 months 19 days | |
Weighted average expected volatility | 44.92% | |
Weighted average expected dividend yield | 0.00% | |
Weighted average fair value of options granted (in dollars per share) | $ 6.43 | |
Number of Shares [Roll Forward] | ||
Outstanding at beginning of period (in shares) | 1,536,123 | |
Granted (in shares) | 341,825 | 0 |
Exercised (in shares) | (3,000) | |
Forfeited (in shares) | (11,509) | |
Outstanding at end of period (in shares) | 1,863,439 | |
Weighted Average Exercise Price [Roll Forward] | ||
Outstanding at beginning of period (in dollars per share) | $ 18.18 | |
Granted (in dollars per share) | 15.14 | |
Exercised (in dollars per share) | 6.62 | |
Forfeited (in dollars per share) | 24.20 | |
Outstanding at end of period (in dollars per share) | $ 17.60 | |
Number of stock options unvested (in shares) | 722,577 | |
Weighted average exercise price of stock options unvested (in dollars per share) | $ 17.51 | |
Total unrecognized compensation expense | $ 4,498,000 | |
Weighted average vesting period over which compensation expense is expected to be recognized | 2 years 3 months 18 days |
Share-based Payments - Restrict
Share-based Payments - Restricted Stock Units (Details) - Restricted Stock [Member] - USD ($) | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Number of Shares [Roll Forward] | ||
Non-vested at beginning of period (in shares) | 201,983 | |
Granted (in shares) | 112,293 | 0 |
Vested (in shares) | (43,929) | |
Non-vested at end of period (in shares) | 270,347 | |
Weighted Average Grant Date Fair Value [Roll Forward] | ||
Non-vested at beginning of period (in dollars per share) | $ 20.06 | |
Granted (in dollars per share) | 15.15 | |
Vested (in dollars per share) | 22.63 | |
Non-vested at end of period (in dollars per share) | $ 17.60 | |
Estimated fair value of awards granted | $ 1,701,000 | |
Total unrecognized compensation expense | $ 3,839,000 | |
Weighted average vesting period over which compensation expense is expected to be recognized | 2 years 3 months 18 days |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Change in warranty return accrual [Roll Forward] | ||
Balance at beginning of period | $ 18,300,000 | $ 19,475,000 |
Charged to expense | 23,089,000 | 23,185,000 |
Amounts processed | (19,197,000) | (26,842,000) |
Balance at end of period | 22,192,000 | $ 15,818,000 |
Contingencies [Abstract] | ||
Estimated additional import duties | $ 17,000,000 |