Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Mar. 31, 2019 | May 24, 2019 | Sep. 30, 2018 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Period End Date | Mar. 31, 2019 | ||
Entity Registrant Name | TESSCO TECHNOLOGIES INC | ||
Entity Central Index Key | 0000927355 | ||
Current Fiscal Year End Date | --03-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 98,115,679 | ||
Entity Common Stock, Shares Outstanding | 8,513,119 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Mar. 31, 2019 | Apr. 01, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 30,300 | $ 19,400 |
Trade accounts receivable, net of allowance for doubtful accounts of $2,137,900 and $1,094,900, respectively | 93,966,200 | 87,862,300 |
Product inventory, net | 71,845,400 | 72,323,000 |
Prepaid expenses and other current assets | 5,562,800 | 4,489,100 |
Total current assets | 171,404,700 | 164,693,800 |
Property and equipment, net | 15,003,500 | 13,662,800 |
Goodwill | 11,677,700 | 11,677,700 |
Deferred tax assets | 55,300 | 710,500 |
Other long-term assets | 8,354,600 | 8,678,900 |
Total assets | 206,495,800 | 199,423,700 |
Current liabilities: | ||
Trade accounts payable | 73,059,700 | 67,041,100 |
Payroll, benefits and taxes | 5,929,500 | 8,291,100 |
Income and sales tax liabilities | 749,000 | 2,339,200 |
Accrued expenses and other current liabilities | 2,652,400 | 1,397,600 |
Revolving line of credit | 14,378,100 | 10,835,400 |
Total current liabilities | 96,768,700 | 89,904,400 |
Long-term liabilities | 939,900 | 1,467,700 |
Total liabilities | 97,708,600 | 91,372,100 |
Shareholders' equity: | ||
Preferred stock, $0.01 par value per share, 500,000 shares authorized and no shares issued and outstanding | ||
Common stock, $0.01 par value per share, 15,000,000 shares authorized, 14,190,027 shares issued and 8,468,529 shares outstanding as of March 31, 2019, and 14,111,703 shares issued and 8,396,537 shares outstanding as of April 1, 2018 | 99,800 | 99,000 |
Additional paid-in capital | 62,666,400 | 60,611,900 |
Treasury stock, at cost, 5,721,498 shares as of March 31, 2019 and 5,715,166 shares as of April 1, 2018 | (57,614,100) | (57,503,000) |
Retained earnings | 103,635,100 | 104,843,700 |
Total shareholders' equity | 108,787,200 | 108,051,600 |
Total liabilities and shareholders' equity | $ 206,495,800 | $ 199,423,700 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Mar. 31, 2019 | Apr. 01, 2018 |
Current assets: | ||
Trade accounts receivable, allowance for doubtful accounts | $ 2,137,900 | $ 1,094,900 |
Shareholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 500,000 | 500,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars shares) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 15,000,000 | 15,000,000 |
Common stock, issued (in shares) | 14,190,027 | 14,111,703 |
Common stock, outstanding (in shares) | 8,468,529 | 8,396,537 |
Treasury stock (in shares) | 5,721,498 | 5,715,166 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2019 | Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 24, 2017 | Sep. 24, 2017 | Jun. 25, 2017 | Mar. 26, 2017 | Mar. 31, 2019 | Apr. 01, 2018 | Mar. 26, 2017 | |
Consolidated Statements of Income | ||||||||||||
Revenues | $ 144,963,800 | $ 152,294,500 | $ 158,636,100 | $ 150,919,400 | $ 148,920,100 | $ 146,260,300 | $ 145,083,500 | $ 140,010,800 | $ 606,813,800 | $ 580,274,700 | $ 533,295,100 | |
Cost of goods sold | 116,696,600 | 121,295,800 | 127,241,400 | 120,221,300 | 117,381,400 | 116,660,500 | 115,160,400 | 110,844,000 | 485,455,100 | 460,046,300 | 421,527,300 | |
Gross profit | 28,267,200 | 30,998,700 | 31,394,700 | 30,698,100 | 31,538,700 | 29,599,800 | 29,923,100 | 29,166,800 | 121,358,700 | 120,228,400 | 111,767,800 | |
Selling, general and administrative expenses | 27,280,300 | 27,494,800 | 29,477,300 | 28,961,300 | 30,357,600 | 27,413,200 | 26,674,400 | 27,881,500 | 113,213,700 | 112,326,700 | 108,416,300 | |
Restructuring Charge | $ 800,000 | 806,600 | ||||||||||
Income from operations | 986,900 | 3,503,900 | 1,917,400 | 1,736,800 | 1,181,100 | 2,186,600 | 3,248,700 | 1,285,300 | 8,145,000 | 7,901,700 | 2,544,900 | |
Interest expense, net | 186,700 | 247,900 | 244,800 | 174,400 | 89,500 | 114,500 | 156,500 | 68,600 | 853,800 | 429,100 | 58,600 | |
Income before provision for income taxes | 800,200 | 3,256,000 | 1,672,600 | 1,562,400 | 1,091,600 | 2,072,100 | 3,092,200 | 1,216,700 | 7,291,200 | 7,472,600 | 2,486,300 | |
Provision for income taxes | 308,200 | 551,400 | 481,800 | 404,000 | (76,800) | 501,900 | 1,318,300 | 533,800 | 1,745,400 | 2,277,200 | 1,041,200 | |
Net income | $ 492,000 | $ 2,704,600 | $ 1,190,800 | $ 1,158,400 | $ 1,168,400 | $ 1,570,200 | $ 1,773,900 | $ 682,900 | $ 5,545,800 | $ 5,195,400 | $ 1,445,100 | |
Basic earnings per share (in dollars per share) | $ 0.66 | $ 0.62 | $ 0.17 | |||||||||
Diluted earnings per share (in dollars per share) | $ 0.06 | $ 0.32 | $ 0.14 | $ 0.13 | $ 0.14 | $ 0.19 | $ 0.21 | $ 0.08 | $ 0.65 | $ 0.61 | $ 0.17 | |
Basic weighted-average common shares outstanding (in shares) | 8,436,796 | 8,370,742 | 8,312,731 | |||||||||
Effect of dilutive options and other equity instruments (in shares) | 130,163 | 100,263 | 27,686 | |||||||||
Diluted weighted-average common shares outstanding (in shares) | 8,566,959 | 8,471,005 | 8,340,417 | |||||||||
Cash dividends declared per common share (in dollars per share) | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.80 | $ 0.80 | $ 0.80 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) | Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Total |
Balance at Mar. 27, 2016 | $ 97,600 | $ 58,113,800 | $ (57,245,200) | $ 111,561,100 | $ 112,527,300 |
Balance (in shares) at Mar. 27, 2016 | 8,272,124 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Proceeds from issuance of stock | $ 400 | 458,200 | 458,600 | ||
Proceeds from issuance of stock (in shares) | 37,432 | ||||
Treasury stock purchases | (192,400) | (192,400) | |||
Treasury stock purchases (in shares) | (12,453) | ||||
Non-cash stock compensation expense | $ 400 | 434,000 | 434,400 | ||
Non-cash stock compensation expense (in shares) | 40,566 | ||||
Cash dividends paid | (6,656,700) | (6,656,700) | |||
Net income | 1,445,100 | 1,445,100 | |||
Balance at Mar. 26, 2017 | $ 98,400 | 59,006,000 | (57,437,600) | 106,349,500 | 108,016,300 |
Balance (in shares) at Mar. 26, 2017 | 8,337,669 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Proceeds from issuance of stock | $ 400 | 604,000 | 604,400 | ||
Proceeds from issuance of stock (in shares) | 44,458 | ||||
Treasury stock purchases | (65,400) | (65,400) | |||
Treasury stock purchases (in shares) | (4,443) | ||||
Non-cash stock compensation expense | $ 200 | 1,001,900 | 1,002,100 | ||
Non-cash stock compensation expense (in shares) | 18,853 | ||||
Cash dividends paid | (6,701,200) | (6,701,200) | |||
Net income | 5,195,400 | 5,195,400 | |||
Balance at Apr. 01, 2018 | $ 99,000 | 60,611,900 | (57,503,000) | 104,843,700 | $ 108,051,600 |
Balance (in shares) at Apr. 01, 2018 | 8,396,537 | 8,396,537 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Proceeds from issuance of stock | $ 500 | 810,800 | $ 811,300 | ||
Proceeds from issuance of stock (in shares) | 52,067 | ||||
Treasury stock purchases | (111,100) | (111,100) | |||
Treasury stock purchases (in shares) | (6,332) | ||||
Non-cash stock compensation expense | $ 300 | 1,243,700 | 1,244,000 | ||
Non-cash stock compensation expense (in shares) | 26,257 | ||||
Cash dividends paid | (6,754,400) | (6,754,400) | |||
Net income | 5,545,800 | 5,545,800 | |||
Balance at Mar. 31, 2019 | $ 99,800 | $ 62,666,400 | $ (57,614,100) | $ 103,635,100 | $ 108,787,200 |
Balance (in shares) at Mar. 31, 2019 | 8,468,529 | 8,468,529 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Mar. 31, 2019 | Apr. 01, 2018 | Mar. 26, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 5,545,800 | $ 5,195,400 | $ 1,445,100 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 3,618,900 | 3,992,600 | 4,238,900 |
Loss on sale of property and equipment | 114,500 | ||
Non-cash stock-based compensation expense | 1,244,000 | 1,002,100 | 434,400 |
Deferred income taxes and other | 1,604,100 | (2,866,100) | (788,600) |
Change in trade accounts receivable | (6,103,900) | (23,158,400) | (6,388,200) |
Change in product inventory | 477,600 | (8,338,700) | (10,080,400) |
Change in prepaid expenses and other current assets | (1,073,700) | (625,000) | 2,053,000 |
Change in trade accounts payable | 5,073,600 | 13,459,700 | 11,595,400 |
Change in payroll, benefits and taxes | (2,361,600) | 1,519,000 | 1,844,200 |
Change in income and sales tax liabilities | (1,590,200) | 974,500 | (107,700) |
Change in accrued expenses and other current liabilities | 1,812,100 | (402,200) | (1,309,300) |
Net cash provided by (used in) operating activities | 8,246,700 | (9,247,100) | 3,051,300 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Acquisition of property and equipment | (2,855,200) | (1,646,600) | (730,200) |
Purchases of internal use software licenses | (2,309,500) | (1,892,800) | (1,832,800) |
Net cash used in investing activities | (5,164,700) | (3,539,400) | (2,563,000) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Net borrowings from revolving line of credit | 3,542,700 | 10,835,400 | |
Proceeds from note receivable | 75,000 | ||
Payments of debt issuance costs | (218,200) | ||
Payments on long-term debt | (27,300) | (26,700) | (1,901,300) |
Proceeds from issuance of common stock | 279,000 | 148,700 | 137,600 |
Cash dividends paid | (6,754,400) | (6,701,200) | (6,656,700) |
Purchases of treasury stock and repurchases of stock from employees | (111,100) | (65,400) | (192,400) |
Net cash (used in) provided by financing activities | (3,071,100) | 4,265,800 | (8,831,000) |
Net increase (decrease) in cash and cash equivalents | 10,900 | (8,520,700) | (8,342,700) |
CASH AND CASH EQUIVALENTS, beginning of period | 19,400 | 8,540,100 | 16,882,800 |
CASH AND CASH EQUIVALENTS, end of period | $ 30,300 | $ 19,400 | $ 8,540,100 |
Organization
Organization | 12 Months Ended |
Mar. 31, 2019 | |
Organization | |
Description of Business and Basis of Presentation | Note 1. Organization TESSCO Technologies Incorporated, a Delaware corporation (“Tessco”, “we”, “our”, or the “Company”), architects and delivers innovative product and value chain solutions to support wireless systems. The Company provides marketing and sales services, knowledge and supply chain management, product-solution delivery and control systems utilizing extensive internet and information technology. Approximately 97% of the Company’s sales are made to customers in the United States. The Company takes orders in several ways, including phone, fax, online and through electronic data interchange. Almost all of the Company’s sales are made in United States Dollars. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2019 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. Fiscal Year The Company's fiscal year is the 52 or 53 weeks ending on the Sunday falling on or between March 26 and April 1 to allow the financial year to better reflect the Company's natural weekly accounting and business cycle. The fiscal year ended March 31, 2019 contained 52 weeks and the fiscal years ended April 1, 2018 and March 26, 2017 contained 53 weeks and 52 weeks, respectively. Cash and Cash Equivalents Cash and cash equivalents include cash and highly liquid investments with an original maturity of 90 days or less. Allowance for Doubtful Accounts The Company uses estimates to determine the amount of the allowance for doubtful accounts necessary to reduce accounts receivable to their expected net realizable value. The Company estimates the amount of the required allowance by reviewing the status of past-due receivables and analyzing historical bad debt trends and current economic conditions. Actual collection experience has not varied significantly from estimates, due primarily to consistent credit policies, collection experience, as well as the Company’s stability as it relates to its current customer base. Typical payments from a large majority of commercial customers are due 30 days from the date of the invoice. The Company charges-off receivables deemed to be uncollectible to the allowance for doubtful accounts. Accounts receivable balances are not collateralized. Product Inventory Product inventory, consisting primarily of finished goods, is stated at the lower of cost or net realizable value, cost being determined on the first-in, first-out (“FIFO”) method and includes certain charges directly and indirectly incurred in bringing product inventories to the point of sale. Inventory is written down for estimated obsolescence equal to the difference between the cost of inventory and the estimated net realizable value, based upon specifically known inventory-related risks (such as technological obsolescence and the nature of supplier terms surrounding price protection and product returns), and assumptions about future demand. At March 31, 2019 and April 1, 2018, the Company had a reserve for excess and obsolete inventory of $5,870,600 and $5,739,700, respectively. Property and Equipment Property and equipment is stated at cost. Depreciation is recorded using the straight-line method over the estimated useful lives of the assets as follows: Useful lives Information technology equipment - 3 years Furniture, telephone system, equipment and tooling - 10 years Building, building improvements and leasehold improvements - 40 years Leasehold improvements are amortized over the shorter of their useful lives or the remaining lease term. Other Long-Term Assets The Company capitalizes computer software costs incurred in connection with developing or obtaining computer software for internal use when both the preliminary project stage is completed and when management authorizes and commits to funding the project and it is probable that the project will be completed. Development and acquisition costs are capitalized when the focus of the software project is either to develop new software, to increase the life of existing software or to add significantly to the functionality of existing software. Capitalization ceases when the software project is substantially complete and ready for its intended use. Impairment of Long-Lived Assets Long-lived assets, including amortizable intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or group of assets may not be fully recoverable. These events or changes in circumstances may include a significant deterioration of operating results, changes in business plans, or changes in anticipated future cash flows. If an impairment indicator is present, the Company evaluates recoverability by a comparison of the carrying amount of the assets to future undiscounted net cash flows expected to be generated by the assets. Assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of the cash flows generated by other asset groups. If future undiscounted cash flows are less than the carrying value of the asset group, the Company calculates the fair value of the asset group. If the assets are impaired, the impairment recognized is measured by the amount by which the carrying amount exceeds the fair value of the assets. Fair value is generally determined by estimates of discounted cash flows. The discount rate used in any estimate of discounted cash flows would be the rate required for a similar investment of like risk. There were no impairment charges in fiscal years 2019, 2018, or 2017. Assets to be disposed of are reported at the lower of carrying value or fair values, less estimated costs of disposal. Goodwill and Other Intangible Assets Goodwill represents the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Goodwill amounts and indefinite lived intangible assets are not amortized, but rather are tested for impairment at least annually or whenever an impairment indicator is identified. The Company performs its annual impairment test on the first day of its fourth quarter. Intangible assets other than goodwill are recorded within other long-term assets in the Company’s Consolidated Balance Sheets. The goodwill impairment test involves an initial qualitative analysis to determine if it is more likely than not that an intangible asset’s fair value is less than its carrying amount. If qualitative factors suggest a possible impairment, the Company then performs an additional two-step approach. Under the first step, the Company determines the fair value of each reporting unit to which goodwill has been assigned. The Company then compares the fair value of each reporting unit to its carrying value, including goodwill. The Company estimates the fair value of each reporting unit using various valuation techniques, with the primary technique being a discounted cash flow or income approach, under which the Company estimates the present value of the reporting unit’s future cash flows. Key assumptions used to determine the present value of a reporting unit’s future cash flows include (a) a cash flow period; (b) a terminal value based on a growth rate; and (c) a discount rate, which is based on the Company’s weighted average cost of capital adjusted for risks associated with our operations. If the fair value exceeds the carrying value, no impairment loss is recognized. If the carrying value exceeds the fair value, the goodwill of the reporting unit is considered potentially impaired and the second step is completed in order to measure the impairment loss. Under the second step, the Company calculates the implied fair value of goodwill by deducting the fair value of all tangible and intangible net assets, including any unrecognized intangible assets, of the reporting unit from the fair value of the reporting unit as determined in the first step. The Company then compares the implied fair value of goodwill to the carrying value of goodwill. If the implied fair value of goodwill is less than the carrying value of goodwill, the Company recognizes an impairment loss equal to the difference. The indefinite lived intangible asset impairment test involves an initial qualitative analysis to determine if it is more likely than not that an intangible asset’s fair value is less than its carrying amount. If qualitative factors suggest a possible impairment, the Company then determines the fair value of the intangible asset. If the fair value of the intangible asset is less than its carrying value, an impairment loss is recognized for an amount equal to the difference. The intangible asset is then carried at its new fair value. Fair value is determined using estimates of discounted cash flows. These estimates of discounted cash flows will likely change over time as impairment tests are performed. Estimates of fair value are also adversely affected by increases in interest rates and the applicable discount rate. Based on the Company’s qualitative and/or quantitative impairment testing performed, the Company did not recognize an impairment loss on goodwill or other indefinite lived intangible assets in fiscal years 2019, 2018, or 2017. The methods of assessing fair value for our reporting units with goodwill as well as for indefinite lived assets require significant judgments to be made by management, including future revenues, expenses, cash flows and discount rates. Changes in such estimates or the application of alternative assumptions could produce significantly different results. Revenue Recognition We account for revenue in accordance with ASC 606, Revenue from Contracts with Customers, which we adopted on April 2, 2018, using the modified retrospective method. We recognize revenue when control of promised goods is transferred to the customer. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled in exchange for transferring the goods. During fiscal 2018 and 2017, we complied with ASC 605, Revenue Recognition. We recorded revenues when 1) persuasive evidence of an arrangement exists, 2) delivery has occurred or services have been rendered, 3) price to the buyer is fixed or determinable, and 4) collectability is reasonably assured. In most cases, shipments are made using FOB shipping terms. FOB destination terms are used for a portion of sales, and revenue for these sales is recorded when the product is received by the customer. Prices are always fixed at the time of sale. Historically, there have not been any material concessions provided to or by customers, future discounts provided by the Company, or other incentives subsequent to a sale. The Company sells under normal commercial terms and, therefore, only records sales on transactions where collectability is reasonably assured. The Company recognized revenues net of sales tax. We recognize revenues from sales transactions containing sales returns provisions at the time of the sale. The potential for customer returns are considered a component of variable consideration under ASC 606 and it is therefore considered when estimating the transaction price for a sale. We use the most likely amount method to determine the amount of expected returns. The amount of expected returns is recognized as a refund liability, representing the obligation to return the customer’s consideration. The return asset is measured at the former carrying amount of the inventory, less any expected costs to recover the goods . Our current and potential customers are continuing to look for ways to reduce their inventories and lower their total costs, including distribution, order taking and fulfillment costs, while still providing their customers excellent service. Some of these companies have turned to us to implement supply chain solutions, including purchasing inventory, assisting in demand forecasting, configuring, packaging, kitting and delivering products and managing customer and supplier relations, from order taking through cash collections. In performing these solutions, we assume varying levels of involvement in the transactions and varying levels of credit and inventory risk. As our offerings continually evolve to meet the needs of our customers, the Company constantly evaluates its revenue accounting based on the guidance set forth in accounting standards generally accepted in the United States. When applying this guidance in accordance with the ASC No. 606, the Company looks at the following indicators: whether we are the primary obligor in the transaction; whether we have general inventory risk; whether we have latitude in establishing price; whether the customer holds us responsible for the acceptability of the product; whether the product returns are handled by us; and whether obligation exists between the other parties and our customer . Each of the Company’s customer relationships is independently evaluated based on the above guidance and revenues are recorded on the appropriate basis. Based on a review of the factors above, in the majority of the Company’s sales relationships, the Company has concluded that it is the principal in the transaction and records revenues based upon the gross amounts earned and booked. However, the Company does have relationships where it is not the principal and records revenues on a net fee basis, regardless of amounts billed (less than 1% of total revenues for fiscal year 2019). If applying this revenue recognition guidance resulted in recording revenues on a different basis from which the Company has previously concluded, or if the factors above change significantly, revenues could increase or decrease; however, gross profit and net income would remain constant. Service revenue associated with training and other services is recognized when the training or work is complete and the criteria discussed above have been met. Service revenues have represented less than 1% of total revenues for fiscal years 2019, 2018 and 2017. Other than sales relating to the Company’s private brands, we offer no product warranties in excess of original equipment manufacturers’ warranties. The Company’s warranty expense is estimated and accrued at the time of sale. Warranty expense was immaterial for fiscal years 2019, 2018, and 2017. Supplier Programs Funds received from suppliers for price protection, product rebates and marketing/promotion are recorded as a reduction in cost of goods sold in accordance with ASC 705-20: Cost of Sales and Services — Accounting for Consideration Received from a Vendor. Shipping and Handling Costs Shipping costs incurred to ship products from our distribution centers to our customers’ sites are included in selling, general and administrative expenses in the Consolidated Statements of Income and totaled $16,534,200, $14,875,100, and $14,179,700 for fiscal years 2019, 2018, and 2017, respectively. Stock Compensation Awards Granted to Team Members The Company records stock compensation expense for awards in accordance with ASC No. 718. The Company accounts for forfeitures as they occur rather than estimate expected forfeitures. The standard also requires stock awards granted or modified after the adoption of the standard that include both performance conditions and graded vesting based on service to the Company to be amortized by an accelerated method rather than the straight-line method. Income Taxes The Company accounts for income taxes under the asset and liability method in accordance with ASC No. 740. Under this method, deferred income tax assets and liabilities arise from differences between the tax basis of assets or liabilities and their reported amounts in the financial statements. Deferred tax balances are determined by using the enacted tax rate to be in effect when the taxes are paid or refunds received. A valuation allowance related to deferred tax assets is recorded when it is more likely than not that some portion or all of the deferred tax assets will not be realized. In accordance with ASC No. 740, the Company recognizes a provision for tax uncertainties in its financial statements for the year ended April 1, 2018. See Note 11 for further discussion of the standard and its impact on the Company’s consolidated financial statements. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company reviews and evaluates its estimates and assumptions, including but not limited to, those that relate to tax reserves, stock-based compensation, accounts receivable reserves, inventory reserves and future cash flows associated with impairment testing for goodwill and other long-lived assets. Actual results could significantly differ from those estimates. Recently issued accounting pronouncements not yet adopted: In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases. This ASU requires lessees to recognize most leases on their balance sheets related to the rights and obligations created by those leases. The ASU also requires additional qualitative and quantitative disclosures related to the nature, timing and uncertainty of cash flows arising from leases. The guidance is effective for fiscal years beginning December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. The Company has identified the full population of leases. The Company expects to record a right-of-use asset and lease liability on its consolidated balance sheet, of approximately $5.1 million each. The standard will be adopted on the first day of the Company’s 2020 fiscal year. In August 2016, the FASB issued Accounting Standards Update No. 2016-15, Classification of Certain Cash Receipts and Cash Payments. The new standard will change the classification of certain cash payments and receipts within the cash flow statement. Specifically, payments for debt prepayment or debt extinguishment costs, including third-party costs, premiums paid, and other fees paid to lenders that are directly related to the debt prepayment or debt extinguishment, excluding accrued interest, will now be classified as financing activities. Previously, these payments were classified as operating expenses. The guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019, with early adoption permitted, and will be applied retrospectively. The Company does not expect that the adoption of this new standard, on the first day of the Company’s 2020 fiscal year, will have a material impact on its Consolidated Financial Statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses rather than incurred losses to estimate credit losses on certain types of financial instruments, including trade receivables. This may result in the earlier recognition of allowances for losses. This ASU is effective for periods beginning after December 15, 2019. The Company is currently evaluating the impact the adoption of this new standard will have on its Consolidated Financial Statements and will adopt the standard on the first day of the Company’s 2021 fiscal year. Recently issued accounting pronouncements adopted: Effective April 2, 2018, the Company adopted the FASB ASU 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 supersedes the revenue recognition requirements in ASC 605, Revenue Recognition, and is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. It also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue, cash flows arising from customer contracts, including significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. The adoption of ASU 2014-09, using the modified retrospective approach, did not have a significant impact on the timing of revenue recognition, our results of operations, cash flows, or financial position. Revenue continues to be recognized at a point in time for our product sales when products are shipped to or received by the customer depending on the shipping terms. The Company has changed the presentation of its returns reserve. The amount of expected returns are now recognized as a refund liability within the Accrued Expenses line item of the balance sheet. This liability represents the obligation to return customer consideration. The value of the expected goods returned by customers is now recognized as a return asset within the Prepaid expense and other current assets line item of the balance sheet. The return asset value is initially measured at the former carrying amount in inventory, less any expected costs to recover the goods. The Company expects products returned by customers to be in new and salable condition, as required by our standard terms and conditions, and therefore impairment of the return asset is unlikely. Changes to the return liability are recorded as revenue adjustments and changes to the inventory asset are recorded as cost of goods sold. As of March 31, 2019, the return asset and return liability amounts were $1.5 million and $2.0 million, respectively. Prior periods were not adjusted to reflect this change. On December 22, 2017 President Trump signed into law the “Tax Cut and Jobs Act” (the “Tax Act”). In December 2017, the SEC staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”), in response to the Tax Act. SAB 118 allows registrants to include a provisional amount to account for the implications of the Tax Act where a reasonable estimate can be made and requires the completion of the accounting no later than one year from the date of enactment of the Tax Act or December 22, 2018. We completed our accounting for the Tax Act in the third quarter of fiscal 2019 and recorded an immaterial adjustment to the provisional tax benefit amount. Additional tax impacts from the Tax Act may be recorded, if and as appropriate, due to, among other things, changes in the Company’s interpretation of the Tax Act and legislative or administrative actions to clarify the intent of the statutory language in a manner that differs from the our current interpretation. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Mar. 31, 2019 | |
Property and Equipment | |
Property and Equipment | Note 3. Property and Equipment All of the Company’s property and equipment is located in the United States and is summarized as follows: 2019 2018 Land $ 4,740,800 $ 4,740,800 Building, building improvements and leasehold improvements 20,926,500 20,896,300 Information technology equipment 6,026,300 4,988,600 Furniture, telephone system, equipment and tooling 8,582,800 7,569,400 40,276,400 38,195,100 Less accumulated depreciation and amortization (25,272,900) (24,532,300) Property and equipment, net $ 15,003,500 $ 13,662,800 Depreciation and amortization of property and equipment was $3,618,900, $3,992,600, and $4,238,900 for fiscal years 2019, 2018 and 2017, respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Mar. 31, 2019 | |
Goodwill and Other Intangible Assets | |
Goodwill and Other Intangible Assets | Note 4. Goodwill and Other Intangible Assets Other intangible assets, which are included in other long-term assets on the accompanying Consolidated Balance Sheets as of March 31, 2019 and April 1, 2018, consists of indefinite lived intangible assets in the amount of $795,400. There were no changes in the carrying amount of goodwill for the fiscal years ended March 31, 2019 and April 1, 2018. Capitalized internally developed computer software, net of accumulated amortization, as of March 31, 2019 and April 1, 2018 was $2,598,000 and $2,379,100, respectively. Amortization expense of capitalized internally developed computer software was $1,620,800, $1,721,000, and $1,355,000 for fiscal years 2019, 2018, and 2017. |
Accrued expenses and other curr
Accrued expenses and other current liabilities | 12 Months Ended |
Mar. 31, 2019 | |
Accrued expenses and other current liabilities | |
Accrued expenses and other current liabilities | Note 5. Accrued expenses and other current liabilities Accrued expenses and other current liabilities consisted of the following: March 31, 2019 April 1, 2018 Returns Reserve $ 1,985,700 $ 625,700 Other Accrued Expenses 666,700 771,900 Total Accrued Expenses $ 2,652,400 $ 1,397,600 |
Borrowings Under Revolving Cred
Borrowings Under Revolving Credit Facility | 12 Months Ended |
Mar. 31, 2019 | |
Borrowings Under Revolving Credit Facility | |
Borrowings Under Revolving Credit Facility | Note 6. Borrowings Under Revolving Credit Facility Fiscal Year 2018 Revolving Credit Facility Activity On October 19, 2017, the Company and its primary operating subsidiaries, as co-borrowers, and SunTrust Bank, as Administrative Agent and Lender, and Wells Fargo Bank, National Association, as a Lender, entered into an Amended and Restated Credit Agreement (the “Amended and Restated Credit Agreement”). Pursuant to the Amended and Restated Credit Agreement, the Credit Agreement for the secured Revolving Credit Facility was amended and restated in order to, among other things, increase the Company’s borrowing limit from up to $35 million to up to $75 million. Capitalized terms used but not otherwise defined in this and the immediately following three paragraphs have the meanings ascribed to each in the Amended and Restated Credit Agreement. In addition to expanding the Company’s borrowing limit, the Amended and Restated Credit Agreement extends the applicable maturity date to October 19, 2021. The Amended and Restated Credit Agreement otherwise includes representations, warranties, affirmative and negative covenants (including restrictions) and other terms generally consistent with those applicable to the facility as existing prior to the execution and delivery of the Amended and Restated Credit Agreement, but with certain modifications. The Amended and Restated Credit Agreement provides for a $5.0 million sublimit for the issuance of standby letters of credit, a $12.5 million sublimit for swing line loans, and an accordion feature which, subject to certain conditions, could increase the aggregate amount of the commitments to up to $125 million, with the optional commitments being provided by existing Lenders or new lenders reasonably acceptable to the Administrative Agent. No Lender is obligated to increase its commitment. Availability continues to be determined in accordance with a Borrowing Base, which has been expanded to include not only Eligible Receivables but also Eligible Inventory and is generally: (A) the sum of (i) 85% of Eligible Receivables; (ii) the Inventory Formula Amount for all Eligible Inventory which is aged less than 181 days; and (iii) the lesser of (x) $4 million and (y) the Inventory Formula Amount for all Eligible Inventory which is aged at least 181 days; minus (B) Reserves. Upon closing, there was $23.4 million outstanding under the Amended and Restated Credit Agreement. Like the secured Revolving Credit Facility as existing prior to execution and delivery of the Amended and Restated Credit Agreement, borrowings under the secured Revolving Credit Facility as now evidenced by the Amended and Restated Credit Agreement initially accrue interest from the applicable borrowing date at an Applicable Rate equal to the Eurodollar Rate plus the Applicable Margin. The Eurodollar Rate is the rate per annum obtained by dividing (i) LIBOR by (ii) a percentage equal to 1.00 minus the Eurodollar Reserve Percentage. When the Applicable Rate is the Eurodollar Rate plus the Applicable Margin, the Applicable Margin is 1.50% if Average Availability is greater than or equal to $15 million, and 1.75% otherwise. On April 1, 2018, the interest rate applicable to borrowings under the replacement Revolving Credit Facility was 3.17%. The weighted average interest rate on borrowings under the Company’s revolving credit facilities during fiscal year 2018 was 2.89%. Under certain circumstances, the Applicable Rate is subject to change at the Lenders’ option from the Eurodollar Rate plus the Applicable Margin to the Base Rate plus the Applicable Margin. Following an Event of Default, in addition to changing the Applicable Rate to the Base Rate plus the Applicable Margin, the Lenders’ may at their option set the Applicable Margin at 0.50% if the Base Rate applies or 1.75% if the Eurodollar Rate applies, and increase the Applicable Rate by an additional 200 basis points. The Applicable Rate adjusts on the first Business Day of each calendar month. The Company is required to pay a monthly Commitment Fee on the average daily unused portion of the Revolving Credit Facility provided for pursuant to the Amended and Restated Credit Agreement, at a per annum rate equal to 0.25%. In connection with the entering into of the Amended and Restated Credit Agreement, the Company and other Loan Parties executed and delivered to SunTrust Bank, as Administrative Agent, a Reaffirmation Agreement, pursuant to which the obligations of the Loan Parties under the Guaranty and Security Agreement delivered by them in connection with the secured credit facility as previously existing (including the previously existing guaranty by the Loan Parties not otherwise Borrowers and the previously existing grant by the Company and the other Loan Parties of a continuing first priority security interest in inventory, accounts receivable and deposit accounts, and on all documents, instruments, general intangibles, letter of credit rights, and all proceeds) were ratified and confirmed as respects the Obligations arising under the Amended and Restated Credit Facility from time to time. Interest expense on this Revolving Credit Facility for fiscal year 2018 totaled $444,200. Average borrowings under this Revolving Credit Facility totaled $14,938,800 and maximum borrowings totaled $28,596,600 for fiscal year 2018. In addition to the interest charged on borrowings, the Company is subject to a 0.25% fee on the unused portion of the Revolving Credit Facility, which is included in interest expense, net on the consolidated statements of income. Borrowings under the Revolving Credit Facility may be used for working capital and other general corporate purposes, and as further provided in, and subject to the applicable terms of, the Credit Agreement. As of April 1, 2018, borrowings under this Revolving Credit Facility totaled $10.8 million and, therefore, the Company had $64.2 million available for borrowing as of April 1, 2018, subject to the Borrowing Base limitation and compliance with the other applicable terms of the Amended and Restated Credit Agreement, including the covenants referenced above. The line of credit has a lockbox arrangement associated with it and therefore the outstanding balance is classified as a current liability on our balance sheet. Fiscal Year 2019 Revolving Credit Facility Activity On March 31, 2019, the interest rate applicable to borrowings under the replacement Revolving Credit Facility was 3.99%. The weighted average interest rate on borrowings under the Company’s revolving credit facilities during fiscal year 2019 was 3.71%. Under certain circumstances, the Applicable Rate is subject to change at the Lenders’ option from the Eurodollar Rate plus the Applicable Margin to the Base Rate plus the Applicable Margin. Interest expense on this Revolving Credit Facility for fiscal year 2019 totaled $836,300. Average borrowings under this Revolving Credit Facility totaled $22,360,200 and maximum borrowings totaled $33,639,500 for fiscal year 2019. In addition to the interest charged on borrowings, the Company is subject to a 0.25% fee on the unused portion of the Revolving Credit Facility. Borrowings under the Revolving Credit Facility may be used for working capital and other general corporate purposes, and as further provided in, and subject to the applicable terms of, the Credit Agreement. As of March 31, 2019, borrowings under this Revolving Credit Facility totaled $14.4 million and, therefore, the Company had $60.6 million available for borrowing as of March 31, 2019, subject to the Borrowing Base limitation and compliance with the other applicable terms of the Amended and Restated Credit Agreement, including the covenants referenced above. The line of credit has a lockbox arrangement associated with it and therefore the outstanding balance is classified as a current liability on our balance sheet. The Company was in compliance with the terms and financial covenants applicable to the revolving credit facility at the end of fiscal year 2019 and through the date that these financial statements were issued. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 7. Commitments and Contingencies The Company is committed to making rental payments under non-cancelable operating leases covering various facilities and equipment. Rent expense for fiscal years 2019, 2018 and 2017 totaled $3,001,800, $3,041,700, and $3,047,500, respectively. The Company leases office space in Timonium, Maryland, where the Company’s sales, marketing and administrative offices are located. This space is nearby to the Company’s Global Logistics Center in Hunt Valley, Maryland. The Agreement of Lease expires on December 31, 2020. Monthly rent payments now range from $174,500 to $185,100 through the remaining lease term. The Company also leases office and warehouse space in Hunt Valley, Maryland, adjacent to the Company’s Global Logistics Center, expiring on July 31, 2020; however, the Company has an ongoing annual option to terminate the lease. The monthly rental fee ranges from $38,200 to $39,300 through the remaining lease term. Additional sales and marketing offices are located in additional leased office space in San Antonio, Texas. This space is leased pursuant to a lease agreement expiring on October 31, 2021. Monthly rent payments range from $18,000 to $19,100 through the remaining lease term. The Company’s minimum future obligations as of March 31, 2019 under existing operating leases are as follows: Fiscal year: 2020 $ 2,996,700 2021 2,111,600 2022 203,200 2023 14,900 2024 — Thereafter — $ 5,326,400 Lawsuits and claims are filed against the Company from time to time in the ordinary course of business. The Company does not believe that any lawsuits or claims pending against the Company, individually or in the aggregate, are material, or will have a material adverse effect on the Company’s financial condition or results of operations. In addition, from time to time, the Company is also subject to review from federal and state taxing authorities in order to validate the amounts of income, sales and/or use taxes which have been claimed and remitted. Currently, our New York income tax return for tax year 2016 and California sales tax returns for the period January 1, 2016 through December 31, 2018 are under examination. As the Company is routinely audited by state taxing authorities, the Company has estimated exposure and established reserves for its estimated sales tax audit liability. |
Operating Segments
Operating Segments | 12 Months Ended |
Mar. 31, 2019 | |
Operating Segments | |
Operating Segments | Note 8. Operating Segments Beginning with the first quarter of fiscal year 2018, the Company modified the structure of its internal organization in an effort to better serve the market place. Retail inventory typically has a shorter more defined life cycle and is, typically, ultimately used by individual end users. Commercial inventory typically has a life cycle that tends to be tied to changes in regulation or technology and includes products typically used by business entities or governments. Reflective of these differences, our sales and product teams have been reorganized and each now report to either a retail or commercial leader. The Company concluded that corresponding changes to its reportable segments were warranted and now evaluates its business within two segments: commercial and retail. The commercial segment consists of the following customer markets: (1) public carriers, that are generally responsible for building and maintaining the infrastructure system and provide airtime service to individual subscribers; and (2) value-added resellers and integrators, which is a newly identified market within our internal structure resulting from the Company’s recent implementation of an enhanced go-to-market strategy and the consolidation of our previously identified value-added resellers, government channels and private system operator markets. This new strategy and the corresponding consolidation of these customer markets is expected to increase sales opportunities across the consolidated group as well as provide better coverage to customers and better align territories with supplier partners. In conjunction with our identification of the value-added resellers and integrators as a newly identified market, as described above, market revenue and gross profit as reported for the periods prior to the first quarter of fiscal 2018 have been restated to reflect this change. The retail segment consists of the market which includes retailers, independent dealer agents and carriers. The Company evaluates revenue, gross profit and net profit contribution, and income before provision for income taxes in the in the aggregate for both the commercial and retail segments. Net profit contribution is defined as gross profit less any expenses that can be directly attributed. This includes sales, product management, purchasing, credit and collections and distribution team expenses, plus freight out and internal and external marketing costs. Corporate support expenses include administrative costs – finance, human resources, information technology, operating facility occupancy expenses, depreciation, amortization and interest, plus the company-wide pay on performance bonus expense. Certain cost of sales and other applicable expenses have been allocated to each market based on a percentage of revenues and/or gross profit, where appropriate. Segment activity for the fiscal years ended 2019, 2018 and 2017 is as follows (in thousands): Year Ended March 31, 2019 Commercial Retail Segment Segment Total Revenues Public Carrier $ 156,983 $ — $ 156,983 Value-added resellers and Integrators 262,062 — 262,062 Retail — 187,769 187,769 Total revenues $ 419,045 $ 187,769 $ 606,814 Gross Profit Public Carrier $ 20,275 $ — $ 20,275 Value-added resellers and Integrators 64,130 — 64,130 Retail — 36,954 36,954 Total gross profit $ 84,405 $ 36,954 $ 121,359 Directly allocable expenses 33,475 16,152 49,627 Segment net profit contribution $ 50,930 $ 20,802 71,732 Corporate support expenses 64,441 Income before provision for income taxes $ 7,291 Year Ended April 1, 2018 Commercial Retail Segment Segment Total Revenues Public Carrier $ 115,061 $ — $ 115,061 Value-added resellers and Integrators 270,615 — 270,615 Retail — 194,599 194,599 Total revenues $ 385,676 $ 194,599 $ 580,275 Gross Profit Public Carrier $ 16,707 $ — $ 16,707 Value-added resellers and Integrators 64,620 — 64,620 Retail — 38,901 38,901 Total gross profit $ 81,327 $ 38,901 $ 120,228 Directly allocable expenses 32,592 15,535 48,127 Segment net profit contribution $ 48,735 $ 23,366 72,101 Corporate support expenses 64,628 Income before provision for income taxes $ 7,473 Year Ended March 26, 2017 Commercial Retail Segment Segment Total Revenues Public Carrier $ 82,015 $ — $ 82,015 Value-added resellers and Integrators 249,670 — 249,670 Retail — 201,610 201,610 Total revenues $ 331,685 $ 201,610 $ 533,295 Gross Profit Public Carrier $ 13,706 $ — $ 13,706 Value-added resellers and Integrators 61,838 — 61,838 Retail — 36,224 36,224 Total gross profit $ 75,544 $ 36,224 $ 111,768 Directly allocable expenses 32,455 16,399 48,854 Segment net profit contribution $ 43,089 $ 19,825 62,914 Corporate support expenses 60,428 Income before provision for income taxes $ 2,486 To provide investors with better visibility, the Company also discloses revenue and gross profit by its four product categories: · Base station infrastructure products are used to build, repair and upgrade wireless telecommunications systems. Products include base station antennas, cable and transmission lines, small towers, lightning protection devices, connectors, power systems, miscellaneous hardware, and mobile antennas. Base station infrastructure service offerings include connector installation, custom jumper assembly, site kitting and logistics integration. · Network systems products are used to build and upgrade computing and internet networks. Products include fixed and mobile broadband equipment, distributed antenna systems (DAS), wireless networking, filtering systems, two-way radios and security and surveillance products. This product category also includes training classes, technical support and engineering design services. · Installation, test and maintenance products are used to install, tune, maintain and repair wireless communications equipment. Products include sophisticated analysis equipment and various frequency, voltage- and power-measuring devices, as well as an assortment of tools, hardware, GPS, safety and replacement and component parts and supplies required by service technicians. · Mobile device accessories products include cellular phone and data device accessories such as replacement batteries, cases, speakers, mobile amplifiers, power supplies, headsets, mounts, car antennas, music accessories and data and memory cards. Retail merchandising displays, promotional programs, customized order fulfillment services and affinity-marketing programs, including private label internet sites, complement our mobile devices and accessory product offering. Supplemental revenue and gross profit information by product category for the fiscal years 2019, 2018 and 2017 are as follows (in thousands): March 31, 2019 April 1, 2018 March 26, 2017 Revenues Base station infrastructure $ 292,787 $ 248,949 $ 209,869 Network systems 86,555 98,642 87,222 Installation, test and maintenance 32,595 33,200 31,851 Mobile device accessories 194,877 199,484 204,353 Total revenues $ 606,814 $ 580,275 $ 533,295 Gross Profit Base station infrastructure 61,458 58,015 54,280 Network systems 13,604 14,649 11,897 Installation, test and maintenance 6,433 6,266 5,921 Mobile device accessories 39,864 41,298 39,670 Total gross profit $ 121,359 $ 120,228 $ 111,768 |
Restructuring Charge
Restructuring Charge | 12 Months Ended |
Mar. 31, 2019 | |
Restructuring Charge | |
Restructuring Charge | Note 9. Restructuring Charge In the fourth quarter of fiscal year 2017, in an effort to streamline the organization, the Company took actions to restructure its operations thereby reducing costs, resulting in a $0.8 million pre-tax charge, which is included in our Consolidated Statements of Income for fiscal year 2017. The restructuring charge primarily consisted of severance-related expenses associated with a reduction in headcount paid in the fourth quarter of fiscal year 2017 through the first quarter of fiscal year 2018. |
Stock Buyback
Stock Buyback | 12 Months Ended |
Mar. 31, 2019 | |
Stock Buyback | |
Shares Withheld | Note 10. Stock Buyback The Company withholds shares of common stock from its employees and directors, at their request, equal to the minimum federal and state tax withholdings related to vested performance stock units, stock option exercises and restricted stock awards. For fiscal years 2019, 2018, and 2017 the total value of shares withheld for taxes was $111,100, $65,400, and $192,400, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2019 | |
Income Taxes | |
Income Taxes | Note 11. Income Taxes A reconciliation of the difference between the provision for income taxes computed at statutory rates and the provision for income taxes provided in the consolidated statements of income is as follows: 2019 2018 2017 Statutory federal rate % 31.3 % 34.0 % State taxes, net of federal benefit 4.0 4.6 Non-deductible expenses 4.4 5.4 Change in uncertain tax positions (4.6) — — Change in valuation allowance 1.9 — — Change in deferred tax related to key man life insurance — (7.3) — Other — (1.9) (2.1) Effective rate 23.9 % 30.5 % 41.9 % The provision for income taxes was comprised of the following: 2019 2018 2017 Federal: Current $ 1,037,600 $ 3,073,400 $ 1,083,600 Deferred 576,200 (1,081,600) (69,100) State: Current 52,600 433,400 53,100 Deferred 79,000 (148,000) (26,400) Provision for income taxes $ 1,745,400 $ 2,277,200 $ 1,041,200 Total net deferred tax assets (liabilities) as of March 31, 2019 and April 1, 2018, and the sources of the differences between financial accounting and tax basis of the Company's assets and liabilities which give rise to the deferred tax assets, are as follows: 2019 2018 Deferred tax assets : Deferred compensation $ 267,300 $ 160,600 Accrued vacation 312,300 340,200 Deferred rent 34,500 37,200 Allowance for doubtful accounts 488,000 249,700 Inventory reserves 1,406,100 1,414,600 Sales tax reserves 192,900 217,500 Sales return assets 478,600 — Other liabilities 205,700 — Net operating loss 141,600 — Tax contingency reserve — 83,400 Other assets 652,800 1,364,900 4,179,800 3,868,100 Valuation allowance (141,600) — Total deferred tax assets 4,038,200 3,868,100 Deferred tax liabilities : Depreciation and amortization (3,094,000) (2,542,800) Sales return liabilities (365,200) — Prepaid expenses (523,700) (614,800) Total deferred tax liabilities (3,982,900) (3,157,600) Net Deferred Tax Assets $ 55,300 $ 710,500 The Company has reviewed its deferred tax assets realization and has determined that a valuation allowance on certain separate company state net operating losses are required as of March 31, 2019. No valuation allowance was required as of April 1, 2018. The Company has net operating loss carryforwards of 141,600 which will generally begin to expire in fiscal year 2030 through fiscal year 2048. Certain net operating loss carryovers do not expire. As of March 31, 2019, the Company had no unrecognized tax benefits. As of April 1, 2018, the Company had a gross amount of unrecognized tax benefits of $112,700 ($87,200 net of federal benefit). The Company’s accounting policy with respect to interest and penalties related to tax uncertainties is to classify these amounts as part of the provision for income taxes. The total amount of interest and penalties related to tax uncertainties recognized in the consolidated statement of income for fiscal year 2019 was a benefit of $250,500 (net of federal benefit). The cumulative amount included in the consolidated balance sheet as of March 31, 2019 was $0. The total amount of interest and penalties related to tax uncertainties recognized in the consolidated statement of income for fiscal year 2018 was a benefit of $38,100 (net of federal expense) and the cumulative amount included as a liability in the consolidated balance sheet as of April 1, 2018 was $250,500 (net of federal benefit). The total amount of interest and penalties related to tax uncertainties recognized in the consolidated statement of income for fiscal year 2017 was a benefit of $10,000 (net of federal expense). A reconciliation of the changes in the gross balance of unrecognized tax benefit amounts, net of interest, is as follows: 2019 2018 2017 Beginning balance of unrecognized tax benefit $ 112,700 $ 204,500 $ 290,400 Increases related to current period tax positions 3,500 — 3,100 Reductions as a result of a lapse in the applicable statute of limitations (116,200) (91,800) (89,000) Ending balance of unrecognized tax benefits $ — $ 112,700 $ 204,500 On December 22, 2017, President Trump signed into law the Tax Cuts and Jobs Act, which we refer to herein as the 2017 Tax Act. While the changes from the Tax Act were generally effective for tax years beginning after December 31, 2017, ASC 740, Accounting for Income Taxes, requires companies to recognize the effect of tax law changes in the period of enactment. Given the significance of the legislation, the SEC staff issued Staff Accounting Bulletin No. 118 (SAB 118), which allowed registrants to record provisional amounts in earnings for the year ended April 1, 2018. The Company was required to complete its tax accounting for the 2017 Tax Act when it had obtained, prepared and analyzed the information to complete the income tax accounting but no later than December 22, 2018. Accordingly, during fiscal year 2019, the Company completed its accounting for the tax effects of the enactment of the 2017 Tax Act based on the Company’s interpretation on the new tax regulations and related guidance issued by the U.S. Department of the Treasury and the IRS. The Company did not record material adjustment to the previously provided provisional amount of $0.2 million. The Company files income tax returns in U.S. federal, state and local jurisdictions. Certain income tax returns for fiscal years 2015 through 2018 remain open to examination by U.S. federal, state and local tax authorities. Currently, our New York income tax return for tax year 2016 are under examination. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Mar. 31, 2019 | |
Retirement Plans | |
Retirement Plans | Note 12. Retirement Plans The Company has a 401(k) plan that covers all eligible employees. Contributions to the plan can be made by employees and the Company may make matching contributions at its discretion. Expense related to this matching contribution was $957,100, $928,100, and $621,600 during fiscal years 2019, 2018, and 2017, respectively. As of March 31, 2019, plan assets included 171,300 shares of common stock of the Company. The Company maintains a Supplemental Executive Retirement Plan for Robert B. Barnhill, Jr., the Company’s Chairman of the Board. This plan is funded through life insurance policies for which the Company is the sole beneficiary. The cash surrender value of the life insurance policies and the net present value of the benefit obligation of approximately $2,326,800 and $853,400, respectively, as of March 31, 2019 and $2,204,500 and $901,400, respectively, as of April 1, 2018, are included in other long-term assets and other long-term liabilities, respectively, in the accompanying Consolidated Balance Sheets. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share | |
Earnings Per Share | Note 13. Earnings Per Share The Company presents the computation of earnings per share (“EPS”) on a basic and diluted basis. Basic EPS is computed by dividing net income by the weighted average number of shares outstanding during the reported period. Diluted earnings per share are computed similarly to basic earnings per share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential additional common shares that were dilutive had been issued. Shares of common stock are excluded from the calculation if they are determined to be anti-dilutive. The following table presents the calculation of basic and diluted earnings per common share: Amounts in thousands, except per share amounts Amounts in thousands, except per share amounts 2019 2018 2017 Earnings per share – Basic: Net earnings $ 5,546 $ 5,195 $ 1,445 Less: Distributed and undistributed earnings allocated to nonvested stock — — — Earnings available to common shareholders – Basic $ 5,546 $ 5,195 $ 1,445 Weighted average common shares outstanding – Basic 8,437 8,371 8,313 Earnings per common share – Basic $ 0.66 $ 0.62 $ 0.17 Earnings per share – Diluted: Net earnings $ 5,546 $ 5,195 $ 1,445 Less: Distributed and undistributed earnings allocated to nonvested stock — — — Earnings available to common shareholders – Diluted $ 5,546 $ 5,195 $ 1,445 Weighted average common shares outstanding – Basic 8,437 8,371 8,313 Effect of dilutive options 130 100 27 Weighted average common shares outstanding – Diluted 8,567 8,471 8,340 Earnings per common share – Diluted $ 0.65 $ 0.61 $ 0.17 Anti-dilutive equity awards not included above 94 40 60 At March 31, 2019, April 1, 2018, and March 26, 2017 stock options with respect to 591,500, 540,000 and 420,000 shares of common stock were outstanding, respectively. The anti-dilutive stock options outstanding at March 31, 2019, April 1, 2018 and March 26, 2017 total 94,000, 40,000 and 60,000, respectively. There were no anti-dilutive Performance Stock Units or Restricted Stock outstanding as of March 31, 2019, April 1, 2018 or March 26, 2017. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Mar. 31, 2019 | |
Stock-Based Compensation | |
Stock-Based Compensation | Note 14. Stock‑Based Compensation The Company’s selling, general and administrative expenses for the fiscal years ended March 31, 2019, April 1, 2018, and March 26, 2017 includes $1,244,000, $1,002,100, and $434,400, respectively, of stock compensation expense. Provision for income taxes for the fiscal years ended March 31, 2019, April 1, 2018, and March 26, 2017 includes $297,300, $305,400, and $181,900, respectively, of income tax benefits related to our stock-based compensation arrangements. Stock compensation expense is primarily related to our Performance Stock Units (PSUs), Restricted Stock Units (RSUs) and Stock Options, granted or outstanding under the Company’s Third Amended and Restated Stock and Incentive Plan (the “1994 Plan”). As of March 31, 2019, 247,200 shares were available for issue in respect of future awards under the 1994 Plan. Subsequent to the Company’s 2019 fiscal year end, on May 10, 2019, based on fiscal year 2019 results, 21,750 shares related to PSUs were canceled, and as a result, these shares were made available for future grants. On May 10, 2019, additional PSUs and restricted stock awards were made providing recipients with the opportunity to earn up to an aggregate of 45,500 and 21,000 additional shares, respectively of the Company’s common stock. Also, on May 10, 2019, the Compensation Committee of the Board of Directors with concurrence of the full Board of Directors, granted stock options to select key employees to purchase an aggregate of 135,000 shares of the Company’s common stock. Accordingly, as of May 10, 2019, an aggregate of 67,450 shares were available for issue pursuant to future awards. No additional awards can be made under the 1994 Plan after July 21, 2021, without or unless made subject to shareholder approval of an extension of the plan term. Stock Options, restricted stock and PSU awards have historically been granted as awards under the 1994 Plan. Shares which are subject to outstanding PSU or other awards under the 1994 Plan, and which are not earned, are returned to the 1994 Plan and become available for future issuance in accordance with and otherwise subject to the terms of the 1994 Plan. Performance Stock Units: Under a program established by the Board of Directors, PSUs have been granted under the 1994 Plan to selected employees. Each PSU entitles the participant to earn TESSCO common stock, but only after earnings per share and, for non-director employee participants, individual performance targets are met over a defined performance cycle. Performance cycles, which are fixed for each grant at the date of grant, are one year. Once earned, shares vest and are issued over a specified period of time determined at the time of the grant, provided that the participant remains employed by or associated with the Company at the time of share issuance. Earnings per share targets, which take into account the earnings impact of this program, are set by the Board of Directors in advance for the complete performance cycle at levels designed to grow shareholder value. If actual performance does not reach the minimum annual or threshold targets, no shares are issued. In accordance with ASC No. 718, the Company records compensation expense on its PSUs over the service period, based on the number of shares management estimates will ultimately be issued. Accordingly, the Company determines the periodic financial statement compensation expense based upon the stock price at the PSU grant date, net of the present value of dividends expected to be paid on TESSCO common stock before the PSU vests, management’s projections of future EPS performance over the performance period, and the resulting amount of estimated share issuances. As discussed in Note 2 above, the Company now accounts for forfeitures as they occur rather than estimate expected forfeitures. To the extent that forfeitures occur, stock based compensation related to the restricted awards may be different from the Company’s expectations. The following table summarizes the activity under the Company’s PSU program for fiscal years 2019, 2018 and 2017: 2019 2018 2017 Weighted Weighted Weighted Average Fair Average Fair Average Fair Shares Value at Grant Shares Value at Grant Shares Value at Grant Unvested shares available for issue under outstanding PSUs, beginning of period 67,000 $ 12.65 170,100 $ 11.17 138,925 $ 21.46 PSU’s Granted 71,000 15.58 86,000 12.67 207,000 10.77 PSU’s Vested (14,257) 12.66 (7,600) 19.58 (27,671) 19.40 PSU’s Forfeited/Cancelled (25,437) 13.46 (181,500) 10.99 (148,154) 18.72 Unvested shares available for issue under outstanding PSUs, end of period 98,306 $ 14.55 67,000 $ 12.65 170,100 $ 11.17 As of March 31, 2019, there was $0.3 million unrecognized compensation cost, related to fiscal year 2019 PSUs earned. Total fair value of shares vested during fiscal years 2019, 2018 and 2017 was $460,800, $277,600 and $628,200, respectively. The PSUs canceled during fiscal year 2019 primarily related to the fiscal year 2018 grant of PSUs which had a one-year measurement period (fiscal 2018). The PSUs were canceled because the minimum applicable fiscal 2018 performance targets were not fully satisfied. Per the provisions of the 1994 Plan, the shares related to these forfeited and canceled PSUs were added back to the 1994 Plan and became available for future issuance under the 1994 Plan. Of the PSUs outstanding at the end of fiscal year 2019 covering 98,306 non-vested shares, PSUs covering 24,000 shares were subsequently canceled in May 2019, based on fiscal year 2019 performance. These PSUs were canceled because fiscal year 2019 earnings per share did not fully reach the target performance set forth in the PSU award agreements. The remaining 74,300 shares covered by PSUs outstanding at the end of fiscal year 2019 were earned based on fiscal year 2019 and 2018 performance, but were not yet vested as of March 31, 2019. Assuming the respective participants remain employed by, or affiliated with the Company, these shares will vest on or about May 1 of 2019, 2020, 2021, and 2022 as follows: Number of Shares 2019 21,446 2020 21,446 2021 21,446 2022 9,994 74,332 Subsequent to the Company’s 2019 fiscal year end, on May 10, 2019, the Compensation Committee, with the concurrence of the full Board of Directors, granted additional PSUs to selected key employees, providing them with the opportunity to earn up to 45,500 additional shares of the Company’s common stock in the aggregate, depending upon whether certain threshold or goal earnings per share targets are met and individual performance metrics are satisfied in fiscal year 2020. These PSUs have only one measurement year (fiscal year 2020), with any shares earned at the end of fiscal year 2020 to vest 25% on or about each of May 1 of 2020, 2021, 2022 and 2023. Pursuant to the typical PSU award agreement, however, performance metrics are deemed met upon the occurrence of a change in control, and shares earned are issued earlier upon the occurrence of a change in control, or death or disability of the participant, or upon termination of the participant’s employment without cause or by the participant for good reason, as those terms are defined in the agreement. Restricted Stock/Restricted Stock Units: On May 11, 2016, the Compensation Committee, with the concurrence of the full Board of Directors, granted an aggregate of 10,000 RSU awards to non-employee directors of the Company. These awards provide for the issuance of the shares of the Company’s common stock in accordance with a vesting schedule. These awards have vested or will vest, and shares have been or will be issued 25% on or about each of May 1 of 2017, 2018, 2019 and 2020, provided that the participant remains associated with the Company (or meets other criteria as prescribed in the agreement) on each such date. As of March 31, 2019, there was less than $0.7 million of total unrecognized compensation costs related to these awards. Unrecognized compensation costs related to these awards are expected to be recognized ratably over a period of approximately one year. On May 10, 2017, the Compensation Committee, with the concurrence of the full Board of Directors, granted an aggregate of 18,000 RSU awards to non-employee directors of the Company and to the Executive Chairman. These awards provide for the issuance of shares of the Company’s common stock in accordance with a vesting schedule. These awards have vested or will vest, and shares have been or will be issued, 25% on or about each of May 1 of 2018, 2019, 2020 and 2021, provided that the participant remains associated with the Company (or meets other criteria as prescribed in the agreement) on each such date. As of March 31, 2019, there was approximately $0.1 million of total unrecognized compensation costs related to these awards. Unrecognized compensation costs related to these awards are expected to be recognized ratably over a period of approximately two years. On May 10, 2018 and June 6, 2018, the Compensation Committee, with the concurrence of the full Board of Directors, granted an aggregate of 21,000 RSU awards to non-employee directors of the Company and to the Executive Chairman. These awards provide for the issuance of shares of the Company’s common stock in accordance with a vesting schedule. These awards have vested or will vest, and shares have been or will be issued, 25% on or about each of May 1 of 2019, 2020, 2021 and 2022, provided that the participant remains associated with the Company (or meets other criteria as prescribed in the agreement) on each such date. As of March 31, 2019, there was approximately $0.2 million of total unrecognized compensation costs related to these awards. Unrecognized compensation costs related to these awards are expected to be recognized ratably over a period of approximately three years. On August 8, 2017, the Compensation Committee, with the concurrence of the full Board of Directors, awarded an aggregate of up to 56,000 RSUs to several senior executives. The number of shares earned by a recipient will be determined by multiplying the number of RSUs covered by the award by a fraction, the numerator of which is the cumulative amount of dividends (regular, ordinary and special) declared and paid, per share, on the common stock, over an earnings period of up to four years, and the denominator of which is $3.20. Subject to earlier issuance upon the occurrence of certain events (as described in the applicable award agreement), any earned shares are issued and distributed to the recipient upon the fourth anniversary of the award date. As of April 1, 2018, 8,000 of these 56,000 RSUs have been canceled due to employee departures, leaving 48,000 of these RSUs outstanding. An additional 2,000 RSU’s with similar terms were awarded in fiscal 2019. As of March 31, 2019, there was approximately $0.6 million of total unrecognized compensation cost related to all outstanding RSUs noted above, assuming all shares are earned. Unrecognized compensation costs are expected to be recognized ratably over a weighted average period of approximately two years. Subsequent to the Company’s 2019 fiscal year end, on May 10, 2019, the Compensation Committee, with the concurrence of the full Board of Directors, granted an aggregate of 21,000 RSU awards to non-employee directors and the Executive Chairman of the Company. These awards provide for the issuance of shares of the Company’s common stock in accordance with a vesting schedule. These awards will vest and shares will be issued 25% on or about each of May 1 of 2020, 2021, 2022 and 2023, provided that the participant remains associated with the Company (or meets other criteria as prescribed in the agreement) on each such date. PSUs and RSUs are expensed based on the grant date fair value, calculated as the closing price of TESSCO common stock as reported by Nasdaq on the date of grant minus the present value of dividends expected to be paid on the common stock before the award vests, because dividends or dividend-equivalent amounts do not accrue and are not paid on unvested PSUs and RSUs. The Company now accounts for forfeitures as they occur rather than estimate expected forfeitures. To the extent that forfeitures occur, stock based compensation related to the restricted awards may be different from the Company’s expectations. Stock Options: The grant date value of the Company’s stock options has been determined using the Black-Scholes-Merton pricing model, based upon facts and assumptions existing at the date of grant. Stock options granted have exercise prices equal to the market price of the Company’s stock on the grant date. The stock options vest 25% after one year and then 1/36 per month for the following three years. During fiscal 2019, stock options for 15,000 shares were forfeited due to an employee departure. The value of each option at the date of grant is amortized as compensation expense over the service period. This occurs without regard to subsequent changes in stock price, volatility or interest rates over time, provided the option remains outstanding. The following tables summarize the pertinent information for outstanding options. 2019 2018 Weighted Weighted Average Fair Average Fair Shares Value at Grant Shares Value at Grant Unvested options, beginning of period 392,500 $ 2.21 395,000 1.96 Options Granted 66,500 3.38 230,000 2.57 Options Vested (162,708) 2.20 (122,500) 1.87 Options Forfeited/Cancelled (15,000) 4.26 (110,000) 2.42 Unvested options, end of period 281,292 $ 2.39 392,500 $ 2.21 March 31, 2019 Grant Fiscal Year Options Granted Option Exercise Price Options Outstanding Options Exercisable 66,500 $ 16.31 61,500 - 230,000 $ 15.12 160,000 71,458 410,000 $ 12.57 330,000 202,083 100,000 $ 22.42 40,000 36,667 Total 591,500 310,208 Grant Fiscal Year Expected Stock Price Volatility Risk-Free Interest rate Expected Dividend Yield Average Expected Term Resulting Black Scholes Value 2019 % % % 4.0 $ 3.38 2018 % % % 4.0 $ 2.57 2017 % % % 4.0 $ 1.85 As of March 31, 2019, there was approximately $0.6 million of total unrecognized compensation costs related to these awards. Unrecognized compensation costs related to these awards are expected to be recognized ratably over a period of approximately three years. No options were exercised during fiscal 2019, 2018, or 2017. Team Member Stock Purchase Plan: The Company has a Team Member Stock Purchase Plan that permits eligible employees to purchase up to an aggregate of 450,000 shares of the Company's common stock at 85% of the lower of the market price on the first day of a six-month period or the market price on the last day of that same six-month period. Expenses incurred for the Team Member Stock Purchase Plan during the fiscal years ended March 31, 2019, April 1, 2018, and March 26, 2017 were $82,600, $49,700, and $47,300, respectively. During the fiscal years ended March 31, 2019, April 1, 2018, and March 26, 2017, 19,183, 13,423, and 12,901 shares were sold to employees under this plan, having a weighted average market value of $14.54, $11.08, and $10.68, respectively. |
Fair Value Disclosure
Fair Value Disclosure | 12 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosure | |
Fair Value Disclosure | Note 15. Fair Value Disclosure Assets and liabilities carried at fair value are classified and disclosed in one of the following three categories: · Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. · Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets, and quoted prices for identical or similar assets or liabilities in markets that are not active. · Level 3: Unobservable inputs for the asset or liability that reflect the reporting entity’s own assumptions about the inputs used in pricing the asset or liability. As of March 31, 2019 and April 1, 2018, the Company has no assets or liabilities recorded at fair value. The carrying amounts of cash and cash equivalents, trade accounts receivable, product inventory, trade accounts payable, accrued expenses, our term loan, life insurance policies and other current liabilities approximate their fair values as of March 31, 2019 and April 1, 2018 due to their short-term nature. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Mar. 31, 2019 | |
Supplemental Cash Flow Information | |
Supplemental Cash Flow Information | Note 16. Supplemental Cash Flow Information Cash paid for income taxes net of refunds, for fiscal years 2019, 2018, and 2017 totaled $1,835,400, $2,440,000, and $55,600, respectively. Cash paid for interest during fiscal years 2019, 2018, and 2017 totaled $809,000, $406,200, and $60,600, respectively. No interest was capitalized during fiscal years 2019, 2018 and 2017. |
Concentration of Risk
Concentration of Risk | 12 Months Ended |
Mar. 31, 2019 | |
Concentration of Risk | |
Concentration of Risk | Note 17. Concentration of Risk Sales to customers and purchases from suppliers are largely governed by individual sales or purchase orders, so there is no guarantee of future business. In some cases, the Company has more formal agreements with significant customers or suppliers, but they are largely administrative in nature and are terminable by either party upon several months or otherwise short notice and they typically contain no obligation to make purchases from TESSCO. In the event a significant customer decides to make its purchases from another source, experiences a significant change in demand internally or from its own customer base, becomes financially unstable, or is acquired by another company, the Company’s ability to generate revenues from these customers may be significantly affected, resulting in an adverse effect on its financial position and results of operations. The Company is dependent on third-party equipment manufacturers, distributors and dealers for all of its supply of wireless communications equipment. For fiscal years 2019, 2018, and 2017, sales of products purchased from the Company's top ten suppliers accounted for 48%, 43%, and 41% of total revenues, respectively. Products purchased from the Company’s largest commercial supplier accounted for approximately 16%, 11%, and 10% of total revenues in fiscal years 2019, 2018, and 2017, respectively. Products purchased from the Company’s largest retail supplier accounted for approximately 8%, 10%, and 11% of total revenues in fiscal years 2019, 2018, and 2017, respectively. The Company is dependent on the ability of its suppliers to provide products on a timely basis and on favorable pricing terms. The Company believes that alternative sources of supply are available for many of the product types it carries, but not for all products offered by the Company. The loss of certain principal suppliers, including the suppliers referenced above, or of other suppliers whose products may be difficult to source on comparable terms elsewhere, or the loss of one or more of certain ongoing affinity relationships, would have a material adverse effect on the Company. As noted, the Company's future results could also be negatively impacted by the loss of certain customers, and/or supplier relationships. For fiscal years 2019, 2018, and 2017, sales of products to the Company's top ten customer relationships accounted for 32%, 28%, and 26% of total revenues, respectively. No customer accounted for more than 10% of total revenues in fiscal year 2019, 2018 and 2017. |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Mar. 31, 2019 | |
Quarterly Results of Operations (Unaudited) | |
Quarterly Results of Operations (Unaudited) | Note 18. Quarterly Results of Operations (Unaudited) Summarized quarterly financial data for the fiscal years ended March 31, 2019 and April 1, 2018 is presented in the table below. For comparison purposes, fiscal quarter ended April 1, 2018 has fourteen weeks, all other quarters have thirteen weeks. Fiscal Year 2019 Quarters Ended Fiscal Year 2018 Quarters Ended March 31, December 30, September 30, July 1, April 1, December 24, September 24, June 25, 2019 2018 2018 2018 2018 2017 2017 2017 Revenues $ 144,963,800 $ 152,294,500 $ 158,636,100 $ 150,919,400 $ 148,920,100 $ 146,260,300 $ 145,083,500 $ 140,010,800 Cost of goods sold 116,696,600 121,295,800 127,241,400 120,221,300 117,381,400 116,660,500 115,160,400 110,844,000 Gross profit 28,267,200 30,998,700 31,394,700 30,698,100 31,538,700 29,599,800 29,923,100 29,166,800 Selling, general and administrative expenses 27,280,300 27,494,800 29,477,300 28,961,300 30,357,600 27,413,200 26,674,400 27,881,500 Income from operations 986,900 3,503,900 1,917,400 1,736,800 1,181,100 2,186,600 3,248,700 1,285,300 Interest, net 186,700 247,900 244,800 174,400 89,500 114,500 156,500 68,600 Income before provision for income taxes 800,200 3,256,000 1,672,600 1,562,400 1,091,600 2,072,100 3,092,200 1,216,700 Provision for income taxes 308,200 551,400 481,800 404,000 (76,800) 501,900 1,318,300 533,800 Net income $ 492,000 $ 2,704,600 $ 1,190,800 $ 1,158,400 $ 1,168,400 $ 1,570,200 $ 1,773,900 $ 682,900 Diluted earnings per share $ 0.06 $ 0.32 $ 0.14 $ 0.13 $ 0.14 $ 0.19 $ 0.21 $ 0.08 Cash dividends declared per common share $ 0.20 $ 0.20 $ 0.20 $ 0.20 $ 0.20 $ 0.20 $ 0.20 $ 0.20 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Mar. 31, 2019 | |
Schedule II - Valuation and Qualifying Accounts | |
Schedule II - Valuation and Qualifying Accounts | Schedule II: Valuation and Qualifying Accounts For the fiscal years ended: 2019 2018 2017 Allowance for doubtful accounts: Balance, beginning of period $ 1,094,900 $ 782,200 $ 841,400 Provision for bad debts 1,721,200 797,100 674,200 Write-offs and other adjustments (678,200) (484,400) (733,400) Balance, end of period $ 2,137,900 $ 1,094,900 $ 782,200 2019 2018 2017 Inventory Reserve: Balance, beginning of period $ 5,739,700 $ 6,360,600 $ 6,071,100 Inventory reserve expense 4,863,100 4,361,400 3,193,200 Write-offs and other adjustments (4,732,200) (4,982,300) (2,903,700) Balance, end of period $ 5,870,600 $ 5,739,700 $ 6,360,600 2019 2018 2017 Allowance for deferred tax asset: Balance, beginning of period $ — $ — $ — Income tax expense 141,600 — — Write-offs and other adjustments — — — Balance, end of period $ 141,600 $ — $ — |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2019 | |
Summary of Significant Accounting Policies | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. |
Fiscal Year | Fiscal Year The Company's fiscal year is the 52 or 53 weeks ending on the Sunday falling on or between March 26 and April 1 to allow the financial year to better reflect the Company's natural weekly accounting and business cycle. The fiscal year ended March 31, 2019 contained 52 weeks and the fiscal years ended April 1, 2018 and March 26, 2017 contained 53 weeks and 52 weeks, respectively. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash and highly liquid investments with an original maturity of 90 days or less. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company uses estimates to determine the amount of the allowance for doubtful accounts necessary to reduce accounts receivable to their expected net realizable value. The Company estimates the amount of the required allowance by reviewing the status of past-due receivables and analyzing historical bad debt trends and current economic conditions. Actual collection experience has not varied significantly from estimates, due primarily to consistent credit policies, collection experience, as well as the Company’s stability as it relates to its current customer base. Typical payments from a large majority of commercial customers are due 30 days from the date of the invoice. The Company charges-off receivables deemed to be uncollectible to the allowance for doubtful accounts. Accounts receivable balances are not collateralized. |
Product Inventory | Product Inventory Product inventory, consisting primarily of finished goods, is stated at the lower of cost or net realizable value, cost being determined on the first-in, first-out (“FIFO”) method and includes certain charges directly and indirectly incurred in bringing product inventories to the point of sale. Inventory is written down for estimated obsolescence equal to the difference between the cost of inventory and the estimated net realizable value, based upon specifically known inventory-related risks (such as technological obsolescence and the nature of supplier terms surrounding price protection and product returns), and assumptions about future demand. At March 31, 2019 and April 1, 2018, the Company had a reserve for excess and obsolete inventory of $5,870,600 and $5,739,700, respectively. |
Property and Equipment | Property and Equipment Property and equipment is stated at cost. Depreciation is recorded using the straight-line method over the estimated useful lives of the assets as follows: Useful lives Information technology equipment - 3 years Furniture, telephone system, equipment and tooling - 10 years Building, building improvements and leasehold improvements - 40 years Leasehold improvements are amortized over the shorter of their useful lives or the remaining lease term. |
Other Long-Term Assets | Other Long-Term Assets The Company capitalizes computer software costs incurred in connection with developing or obtaining computer software for internal use when both the preliminary project stage is completed and when management authorizes and commits to funding the project and it is probable that the project will be completed. Development and acquisition costs are capitalized when the focus of the software project is either to develop new software, to increase the life of existing software or to add significantly to the functionality of existing software. Capitalization ceases when the software project is substantially complete and ready for its intended use. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets, including amortizable intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or group of assets may not be fully recoverable. These events or changes in circumstances may include a significant deterioration of operating results, changes in business plans, or changes in anticipated future cash flows. If an impairment indicator is present, the Company evaluates recoverability by a comparison of the carrying amount of the assets to future undiscounted net cash flows expected to be generated by the assets. Assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of the cash flows generated by other asset groups. If future undiscounted cash flows are less than the carrying value of the asset group, the Company calculates the fair value of the asset group. If the assets are impaired, the impairment recognized is measured by the amount by which the carrying amount exceeds the fair value of the assets. Fair value is generally determined by estimates of discounted cash flows. The discount rate used in any estimate of discounted cash flows would be the rate required for a similar investment of like risk. There were no impairment charges in fiscal years 2019, 2018, or 2017. Assets to be disposed of are reported at the lower of carrying value or fair values, less estimated costs of disposal. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill represents the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Goodwill amounts and indefinite lived intangible assets are not amortized, but rather are tested for impairment at least annually or whenever an impairment indicator is identified. The Company performs its annual impairment test on the first day of its fourth quarter. Intangible assets other than goodwill are recorded within other long-term assets in the Company’s Consolidated Balance Sheets. The goodwill impairment test involves an initial qualitative analysis to determine if it is more likely than not that an intangible asset’s fair value is less than its carrying amount. If qualitative factors suggest a possible impairment, the Company then performs an additional two-step approach. Under the first step, the Company determines the fair value of each reporting unit to which goodwill has been assigned. The Company then compares the fair value of each reporting unit to its carrying value, including goodwill. The Company estimates the fair value of each reporting unit using various valuation techniques, with the primary technique being a discounted cash flow or income approach, under which the Company estimates the present value of the reporting unit’s future cash flows. Key assumptions used to determine the present value of a reporting unit’s future cash flows include (a) a cash flow period; (b) a terminal value based on a growth rate; and (c) a discount rate, which is based on the Company’s weighted average cost of capital adjusted for risks associated with our operations. If the fair value exceeds the carrying value, no impairment loss is recognized. If the carrying value exceeds the fair value, the goodwill of the reporting unit is considered potentially impaired and the second step is completed in order to measure the impairment loss. Under the second step, the Company calculates the implied fair value of goodwill by deducting the fair value of all tangible and intangible net assets, including any unrecognized intangible assets, of the reporting unit from the fair value of the reporting unit as determined in the first step. The Company then compares the implied fair value of goodwill to the carrying value of goodwill. If the implied fair value of goodwill is less than the carrying value of goodwill, the Company recognizes an impairment loss equal to the difference. The indefinite lived intangible asset impairment test involves an initial qualitative analysis to determine if it is more likely than not that an intangible asset’s fair value is less than its carrying amount. If qualitative factors suggest a possible impairment, the Company then determines the fair value of the intangible asset. If the fair value of the intangible asset is less than its carrying value, an impairment loss is recognized for an amount equal to the difference. The intangible asset is then carried at its new fair value. Fair value is determined using estimates of discounted cash flows. These estimates of discounted cash flows will likely change over time as impairment tests are performed. Estimates of fair value are also adversely affected by increases in interest rates and the applicable discount rate. Based on the Company’s qualitative and/or quantitative impairment testing performed, the Company did not recognize an impairment loss on goodwill or other indefinite lived intangible assets in fiscal years 2019, 2018, or 2017. The methods of assessing fair value for our reporting units with goodwill as well as for indefinite lived assets require significant judgments to be made by management, including future revenues, expenses, cash flows and discount rates. Changes in such estimates or the application of alternative assumptions could produce significantly different results. |
Revenue Recognition and Supplier Programs | Revenue Recognition We account for revenue in accordance with ASC 606, Revenue from Contracts with Customers, which we adopted on April 2, 2018, using the modified retrospective method. We recognize revenue when control of promised goods is transferred to the customer. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled in exchange for transferring the goods. During fiscal 2018 and 2017, we complied with ASC 605, Revenue Recognition. We recorded revenues when 1) persuasive evidence of an arrangement exists, 2) delivery has occurred or services have been rendered, 3) price to the buyer is fixed or determinable, and 4) collectability is reasonably assured. In most cases, shipments are made using FOB shipping terms. FOB destination terms are used for a portion of sales, and revenue for these sales is recorded when the product is received by the customer. Prices are always fixed at the time of sale. Historically, there have not been any material concessions provided to or by customers, future discounts provided by the Company, or other incentives subsequent to a sale. The Company sells under normal commercial terms and, therefore, only records sales on transactions where collectability is reasonably assured. The Company recognized revenues net of sales tax. We recognize revenues from sales transactions containing sales returns provisions at the time of the sale. The potential for customer returns are considered a component of variable consideration under ASC 606 and it is therefore considered when estimating the transaction price for a sale. We use the most likely amount method to determine the amount of expected returns. The amount of expected returns is recognized as a refund liability, representing the obligation to return the customer’s consideration. The return asset is measured at the former carrying amount of the inventory, less any expected costs to recover the goods . Our current and potential customers are continuing to look for ways to reduce their inventories and lower their total costs, including distribution, order taking and fulfillment costs, while still providing their customers excellent service. Some of these companies have turned to us to implement supply chain solutions, including purchasing inventory, assisting in demand forecasting, configuring, packaging, kitting and delivering products and managing customer and supplier relations, from order taking through cash collections. In performing these solutions, we assume varying levels of involvement in the transactions and varying levels of credit and inventory risk. As our offerings continually evolve to meet the needs of our customers, the Company constantly evaluates its revenue accounting based on the guidance set forth in accounting standards generally accepted in the United States. When applying this guidance in accordance with the ASC No. 606, the Company looks at the following indicators: whether we are the primary obligor in the transaction; whether we have general inventory risk; whether we have latitude in establishing price; whether the customer holds us responsible for the acceptability of the product; whether the product returns are handled by us; and whether obligation exists between the other parties and our customer . Each of the Company’s customer relationships is independently evaluated based on the above guidance and revenues are recorded on the appropriate basis. Based on a review of the factors above, in the majority of the Company’s sales relationships, the Company has concluded that it is the principal in the transaction and records revenues based upon the gross amounts earned and booked. However, the Company does have relationships where it is not the principal and records revenues on a net fee basis, regardless of amounts billed (less than 1% of total revenues for fiscal year 2019). If applying this revenue recognition guidance resulted in recording revenues on a different basis from which the Company has previously concluded, or if the factors above change significantly, revenues could increase or decrease; however, gross profit and net income would remain constant. Service revenue associated with training and other services is recognized when the training or work is complete and the criteria discussed above have been met. Service revenues have represented less than 1% of total revenues for fiscal years 2019, 2018 and 2017. Other than sales relating to the Company’s private brands, we offer no product warranties in excess of original equipment manufacturers’ warranties. The Company’s warranty expense is estimated and accrued at the time of sale. Warranty expense was immaterial for fiscal years 2019, 2018, and 2017. Supplier Programs Funds received from suppliers for price protection, product rebates and marketing/promotion are recorded as a reduction in cost of goods sold in accordance with ASC 705-20: Cost of Sales and Services — Accounting for Consideration Received from a Vendor. |
Shipping and Handling Costs | Shipping and Handling Costs Shipping costs incurred to ship products from our distribution centers to our customers’ sites are included in selling, general and administrative expenses in the Consolidated Statements of Income and totaled $16,534,200, $14,875,100, and $14,179,700 for fiscal years 2019, 2018, and 2017, respectively. |
Stock Compensation Awards Granted to Team Members | Stock Compensation Awards Granted to Team Members The Company records stock compensation expense for awards in accordance with ASC No. 718. The Company accounts for forfeitures as they occur rather than estimate expected forfeitures. The standard also requires stock awards granted or modified after the adoption of the standard that include both performance conditions and graded vesting based on service to the Company to be amortized by an accelerated method rather than the straight-line method. |
Income Taxes | Income Taxes The Company accounts for income taxes under the asset and liability method in accordance with ASC No. 740. Under this method, deferred income tax assets and liabilities arise from differences between the tax basis of assets or liabilities and their reported amounts in the financial statements. Deferred tax balances are determined by using the enacted tax rate to be in effect when the taxes are paid or refunds received. A valuation allowance related to deferred tax assets is recorded when it is more likely than not that some portion or all of the deferred tax assets will not be realized. In accordance with ASC No. 740, the Company recognizes a provision for tax uncertainties in its financial statements for the year ended April 1, 2018. See Note 11 for further discussion of the standard and its impact on the Company’s consolidated financial statements. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company reviews and evaluates its estimates and assumptions, including but not limited to, those that relate to tax reserves, stock-based compensation, accounts receivable reserves, inventory reserves and future cash flows associated with impairment testing for goodwill and other long-lived assets. Actual results could significantly differ from those estimates. |
Recently Issued Accounting Pronouncements | Recently issued accounting pronouncements not yet adopted: In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases. This ASU requires lessees to recognize most leases on their balance sheets related to the rights and obligations created by those leases. The ASU also requires additional qualitative and quantitative disclosures related to the nature, timing and uncertainty of cash flows arising from leases. The guidance is effective for fiscal years beginning December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. The Company has identified the full population of leases. The Company expects to record a right-of-use asset and lease liability on its consolidated balance sheet, of approximately $5.1 million each. The standard will be adopted on the first day of the Company’s 2020 fiscal year. In August 2016, the FASB issued Accounting Standards Update No. 2016-15, Classification of Certain Cash Receipts and Cash Payments. The new standard will change the classification of certain cash payments and receipts within the cash flow statement. Specifically, payments for debt prepayment or debt extinguishment costs, including third-party costs, premiums paid, and other fees paid to lenders that are directly related to the debt prepayment or debt extinguishment, excluding accrued interest, will now be classified as financing activities. Previously, these payments were classified as operating expenses. The guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019, with early adoption permitted, and will be applied retrospectively. The Company does not expect that the adoption of this new standard, on the first day of the Company’s 2020 fiscal year, will have a material impact on its Consolidated Financial Statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses rather than incurred losses to estimate credit losses on certain types of financial instruments, including trade receivables. This may result in the earlier recognition of allowances for losses. This ASU is effective for periods beginning after December 15, 2019. The Company is currently evaluating the impact the adoption of this new standard will have on its Consolidated Financial Statements and will adopt the standard on the first day of the Company’s 2021 fiscal year. Recently issued accounting pronouncements adopted: Effective April 2, 2018, the Company adopted the FASB ASU 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 supersedes the revenue recognition requirements in ASC 605, Revenue Recognition, and is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. It also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue, cash flows arising from customer contracts, including significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. The adoption of ASU 2014-09, using the modified retrospective approach, did not have a significant impact on the timing of revenue recognition, our results of operations, cash flows, or financial position. Revenue continues to be recognized at a point in time for our product sales when products are shipped to or received by the customer depending on the shipping terms. The Company has changed the presentation of its returns reserve. The amount of expected returns are now recognized as a refund liability within the Accrued Expenses line item of the balance sheet. This liability represents the obligation to return customer consideration. The value of the expected goods returned by customers is now recognized as a return asset within the Prepaid expense and other current assets line item of the balance sheet. The return asset value is initially measured at the former carrying amount in inventory, less any expected costs to recover the goods. The Company expects products returned by customers to be in new and salable condition, as required by our standard terms and conditions, and therefore impairment of the return asset is unlikely. Changes to the return liability are recorded as revenue adjustments and changes to the inventory asset are recorded as cost of goods sold. As of March 31, 2019, the return asset and return liability amounts were $1.5 million and $2.0 million, respectively. Prior periods were not adjusted to reflect this change. On December 22, 2017 President Trump signed into law the “Tax Cut and Jobs Act” (the “Tax Act”). In December 2017, the SEC staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”), in response to the Tax Act. SAB 118 allows registrants to include a provisional amount to account for the implications of the Tax Act where a reasonable estimate can be made and requires the completion of the accounting no later than one year from the date of enactment of the Tax Act or December 22, 2018. We completed our accounting for the Tax Act in the third quarter of fiscal 2019 and recorded an immaterial adjustment to the provisional tax benefit amount. Additional tax impacts from the Tax Act may be recorded, if and as appropriate, due to, among other things, changes in the Company’s interpretation of the Tax Act and legislative or administrative actions to clarify the intent of the statutory language in a manner that differs from the our current interpretation. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Summary of Significant Accounting Policies | |
Property and Equipment Useful Life | Useful lives Information technology equipment - 3 years Furniture, telephone system, equipment and tooling - 10 years Building, building improvements and leasehold improvements - 40 years |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Property and Equipment | |
Property and Equipment | 2019 2018 Land $ 4,740,800 $ 4,740,800 Building, building improvements and leasehold improvements 20,926,500 20,896,300 Information technology equipment 6,026,300 4,988,600 Furniture, telephone system, equipment and tooling 8,582,800 7,569,400 40,276,400 38,195,100 Less accumulated depreciation and amortization (25,272,900) (24,532,300) Property and equipment, net $ 15,003,500 $ 13,662,800 |
Accrued expenses and other cu_2
Accrued expenses and other current liabilities (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Accrued expenses and other current liabilities | |
Accrued Expenses and Other Current Liabilities | March 31, 2019 April 1, 2018 Returns Reserve $ 1,985,700 $ 625,700 Other Accrued Expenses 666,700 771,900 Total Accrued Expenses $ 2,652,400 $ 1,397,600 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies | |
Minimum Future Obligations Under Operating Leases | The Company’s minimum future obligations as of March 31, 2019 under existing operating leases are as follows: Fiscal year: 2020 $ 2,996,700 2021 2,111,600 2022 203,200 2023 14,900 2024 — Thereafter — $ 5,326,400 |
Operating Segments (Tables)
Operating Segments (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Operating Segments | |
Schedule of Revenue and Gross Profit by Market | Segment activity for the fiscal years ended 2019, 2018 and 2017 is as follows (in thousands): Year Ended March 31, 2019 Commercial Retail Segment Segment Total Revenues Public Carrier $ 156,983 $ — $ 156,983 Value-added resellers and Integrators 262,062 — 262,062 Retail — 187,769 187,769 Total revenues $ 419,045 $ 187,769 $ 606,814 Gross Profit Public Carrier $ 20,275 $ — $ 20,275 Value-added resellers and Integrators 64,130 — 64,130 Retail — 36,954 36,954 Total gross profit $ 84,405 $ 36,954 $ 121,359 Directly allocable expenses 33,475 16,152 49,627 Segment net profit contribution $ 50,930 $ 20,802 71,732 Corporate support expenses 64,441 Income before provision for income taxes $ 7,291 Year Ended April 1, 2018 Commercial Retail Segment Segment Total Revenues Public Carrier $ 115,061 $ — $ 115,061 Value-added resellers and Integrators 270,615 — 270,615 Retail — 194,599 194,599 Total revenues $ 385,676 $ 194,599 $ 580,275 Gross Profit Public Carrier $ 16,707 $ — $ 16,707 Value-added resellers and Integrators 64,620 — 64,620 Retail — 38,901 38,901 Total gross profit $ 81,327 $ 38,901 $ 120,228 Directly allocable expenses 32,592 15,535 48,127 Segment net profit contribution $ 48,735 $ 23,366 72,101 Corporate support expenses 64,628 Income before provision for income taxes $ 7,473 Year Ended March 26, 2017 Commercial Retail Segment Segment Total Revenues Public Carrier $ 82,015 $ — $ 82,015 Value-added resellers and Integrators 249,670 — 249,670 Retail — 201,610 201,610 Total revenues $ 331,685 $ 201,610 $ 533,295 Gross Profit Public Carrier $ 13,706 $ — $ 13,706 Value-added resellers and Integrators 61,838 — 61,838 Retail — 36,224 36,224 Total gross profit $ 75,544 $ 36,224 $ 111,768 Directly allocable expenses 32,455 16,399 48,854 Segment net profit contribution $ 43,089 $ 19,825 62,914 Corporate support expenses 60,428 Income before provision for income taxes $ 2,486 |
Schedule of Revenue and Gross Profit by Product | Supplemental revenue and gross profit information by product category for the fiscal years 2019, 2018 and 2017 are as follows (in thousands): March 31, 2019 April 1, 2018 March 26, 2017 Revenues Base station infrastructure $ 292,787 $ 248,949 $ 209,869 Network systems 86,555 98,642 87,222 Installation, test and maintenance 32,595 33,200 31,851 Mobile device accessories 194,877 199,484 204,353 Total revenues $ 606,814 $ 580,275 $ 533,295 Gross Profit Base station infrastructure 61,458 58,015 54,280 Network systems 13,604 14,649 11,897 Installation, test and maintenance 6,433 6,266 5,921 Mobile device accessories 39,864 41,298 39,670 Total gross profit $ 121,359 $ 120,228 $ 111,768 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Income Taxes | |
Effective Income Tax Rate Reconciliation | 2019 2018 2017 Statutory federal rate % 31.3 % 34.0 % State taxes, net of federal benefit 4.0 4.6 Non-deductible expenses 4.4 5.4 Change in uncertain tax positions (4.6) — — Change in valuation allowance 1.9 — — Change in deferred tax related to key man life insurance — (7.3) — Other — (1.9) (2.1) Effective rate 23.9 % 30.5 % 41.9 % |
Provision for Income Taxes | 2019 2018 2017 Federal: Current $ 1,037,600 $ 3,073,400 $ 1,083,600 Deferred 576,200 (1,081,600) (69,100) State: Current 52,600 433,400 53,100 Deferred 79,000 (148,000) (26,400) Provision for income taxes $ 1,745,400 $ 2,277,200 $ 1,041,200 |
Deferred Tax Assets and Liabilities | 2019 2018 Deferred tax assets : Deferred compensation $ 267,300 $ 160,600 Accrued vacation 312,300 340,200 Deferred rent 34,500 37,200 Allowance for doubtful accounts 488,000 249,700 Inventory reserves 1,406,100 1,414,600 Sales tax reserves 192,900 217,500 Sales return assets 478,600 — Other liabilities 205,700 — Net operating loss 141,600 — Tax contingency reserve — 83,400 Other assets 652,800 1,364,900 4,179,800 3,868,100 Valuation allowance (141,600) — Total deferred tax assets 4,038,200 3,868,100 Deferred tax liabilities : Depreciation and amortization (3,094,000) (2,542,800) Sales return liabilities (365,200) — Prepaid expenses (523,700) (614,800) Total deferred tax liabilities (3,982,900) (3,157,600) Net Deferred Tax Assets $ 55,300 $ 710,500 |
Reconciliation of changes in unrecognized tax benefit amounts, net of interest | 2019 2018 2017 Beginning balance of unrecognized tax benefit $ 112,700 $ 204,500 $ 290,400 Increases related to current period tax positions 3,500 — 3,100 Reductions as a result of a lapse in the applicable statute of limitations (116,200) (91,800) (89,000) Ending balance of unrecognized tax benefits $ — $ 112,700 $ 204,500 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share | |
Calculation of Basic and Diluted Earnings Per Common Share | Amounts in thousands, except per share amounts Amounts in thousands, except per share amounts 2019 2018 2017 Earnings per share – Basic: Net earnings $ 5,546 $ 5,195 $ 1,445 Less: Distributed and undistributed earnings allocated to nonvested stock — — — Earnings available to common shareholders – Basic $ 5,546 $ 5,195 $ 1,445 Weighted average common shares outstanding – Basic 8,437 8,371 8,313 Earnings per common share – Basic $ 0.66 $ 0.62 $ 0.17 Earnings per share – Diluted: Net earnings $ 5,546 $ 5,195 $ 1,445 Less: Distributed and undistributed earnings allocated to nonvested stock — — — Earnings available to common shareholders – Diluted $ 5,546 $ 5,195 $ 1,445 Weighted average common shares outstanding – Basic 8,437 8,371 8,313 Effect of dilutive options 130 100 27 Weighted average common shares outstanding – Diluted 8,567 8,471 8,340 Earnings per common share – Diluted $ 0.65 $ 0.61 $ 0.17 Anti-dilutive equity awards not included above 94 40 60 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Stock-Based Compensation | |
Schedule of Performance Stock Unit activity | 2019 2018 2017 Weighted Weighted Weighted Average Fair Average Fair Average Fair Shares Value at Grant Shares Value at Grant Shares Value at Grant Unvested shares available for issue under outstanding PSUs, beginning of period 67,000 $ 12.65 170,100 $ 11.17 138,925 $ 21.46 PSU’s Granted 71,000 15.58 86,000 12.67 207,000 10.77 PSU’s Vested (14,257) 12.66 (7,600) 19.58 (27,671) 19.40 PSU’s Forfeited/Cancelled (25,437) 13.46 (181,500) 10.99 (148,154) 18.72 Unvested shares available for issue under outstanding PSUs, end of period 98,306 $ 14.55 67,000 $ 12.65 170,100 $ 11.17 |
Nonvested Performance-based Units expected to vest by period | Number of Shares 2019 21,446 2020 21,446 2021 21,446 2022 9,994 74,332 |
Schedule of Stock Options | 2019 2018 Weighted Weighted Average Fair Average Fair Shares Value at Grant Shares Value at Grant Unvested options, beginning of period 392,500 $ 2.21 395,000 1.96 Options Granted 66,500 3.38 230,000 2.57 Options Vested (162,708) 2.20 (122,500) 1.87 Options Forfeited/Cancelled (15,000) 4.26 (110,000) 2.42 Unvested options, end of period 281,292 $ 2.39 392,500 $ 2.21 March 31, 2019 Grant Fiscal Year Options Granted Option Exercise Price Options Outstanding Options Exercisable 66,500 $ 16.31 61,500 - 230,000 $ 15.12 160,000 71,458 410,000 $ 12.57 330,000 202,083 100,000 $ 22.42 40,000 36,667 Total 591,500 310,208 |
Schedule of assumptions of Black-Scholes-Merton option pricing model | Grant Fiscal Year Expected Stock Price Volatility Risk-Free Interest rate Expected Dividend Yield Average Expected Term Resulting Black Scholes Value 2019 % % % 4.0 $ 3.38 2018 % % % 4.0 $ 2.57 2017 % % % 4.0 $ 1.85 |
Quarterly Results of Operatio_2
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Quarterly Results of Operations (Unaudited) | |
Summarized Quarterly Financial Data | Fiscal Year 2019 Quarters Ended Fiscal Year 2018 Quarters Ended March 31, December 30, September 30, July 1, April 1, December 24, September 24, June 25, 2019 2018 2018 2018 2018 2017 2017 2017 Revenues $ 144,963,800 $ 152,294,500 $ 158,636,100 $ 150,919,400 $ 148,920,100 $ 146,260,300 $ 145,083,500 $ 140,010,800 Cost of goods sold 116,696,600 121,295,800 127,241,400 120,221,300 117,381,400 116,660,500 115,160,400 110,844,000 Gross profit 28,267,200 30,998,700 31,394,700 30,698,100 31,538,700 29,599,800 29,923,100 29,166,800 Selling, general and administrative expenses 27,280,300 27,494,800 29,477,300 28,961,300 30,357,600 27,413,200 26,674,400 27,881,500 Income from operations 986,900 3,503,900 1,917,400 1,736,800 1,181,100 2,186,600 3,248,700 1,285,300 Interest, net 186,700 247,900 244,800 174,400 89,500 114,500 156,500 68,600 Income before provision for income taxes 800,200 3,256,000 1,672,600 1,562,400 1,091,600 2,072,100 3,092,200 1,216,700 Provision for income taxes 308,200 551,400 481,800 404,000 (76,800) 501,900 1,318,300 533,800 Net income $ 492,000 $ 2,704,600 $ 1,190,800 $ 1,158,400 $ 1,168,400 $ 1,570,200 $ 1,773,900 $ 682,900 Diluted earnings per share $ 0.06 $ 0.32 $ 0.14 $ 0.13 $ 0.14 $ 0.19 $ 0.21 $ 0.08 Cash dividends declared per common share $ 0.20 $ 0.20 $ 0.20 $ 0.20 $ 0.20 $ 0.20 $ 0.20 $ 0.20 |
Organization (Details)
Organization (Details) | 12 Months Ended |
Mar. 31, 2019 | |
US | Geographic Concentration Risk | Revenue | |
Concentration Risk | |
Concentration risk (as a percent) | 97.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - FY, Allowance for Doubtful Accounts and Inventory (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2019 | Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 24, 2017 | Sep. 24, 2017 | Jun. 25, 2017 | Mar. 31, 2019 | Apr. 01, 2018 | Mar. 26, 2017 | |
Fiscal Year | |||||||||||
Fiscal year duration | 91 days | 91 days | 91 days | 91 days | 98 days | 91 days | 91 days | 91 days | 364 days | 371 days | 364 days |
Allowance for Doubtful Accounts | |||||||||||
Payment period from large majority of commercial customers | 30 days | ||||||||||
Product Inventory | |||||||||||
Reserves for excess or obsolescence inventory | $ 5,870,600 | $ 5,739,700 | $ 5,870,600 | $ 5,739,700 | |||||||
Minimum | |||||||||||
Fiscal Year | |||||||||||
Fiscal year duration | 364 days | ||||||||||
Maximum | |||||||||||
Fiscal Year | |||||||||||
Fiscal year duration | 371 days |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Property, Equipment and Long-Lived Assets (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2019 | Apr. 01, 2018 | Mar. 26, 2017 | |
Impairment of Long-Lived Assets | |||
Impairment charges | $ 0 | $ 0 | $ 0 |
Minimum | Information technology equipment | |||
Property and Equipment | |||
Useful Lives | 1 year | ||
Minimum | Furniture, telephone system, equipment and tooling | |||
Property and Equipment | |||
Useful Lives | 3 years | ||
Minimum | Building, building improvements and leasehold improvements | |||
Property and Equipment | |||
Useful Lives | 2 years | ||
Maximum | Information technology equipment | |||
Property and Equipment | |||
Useful Lives | 3 years | ||
Maximum | Furniture, telephone system, equipment and tooling | |||
Property and Equipment | |||
Useful Lives | 10 years | ||
Maximum | Building, building improvements and leasehold improvements | |||
Property and Equipment | |||
Useful Lives | 40 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Intangible Assets (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2019 | Apr. 01, 2018 | Mar. 26, 2017 | |
Summary of Significant Accounting Policies | |||
Impairment loss on goodwill or other indefinite lived intangible assets | $ 0 | $ 0 | $ 0 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Revenue Recognition, Expenses and Shipping and Handling Costs (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2019 | Apr. 01, 2018 | Mar. 26, 2017 | |
Shipping and Handling Costs | |||
Shipping and handling costs | $ 16,534,200 | $ 14,875,100 | $ 14,179,700 |
Maximum | |||
Revenue Recognition | |||
Revenue recorded on net fee basis (as a percent) | 1.00% | ||
Service revenue (as a percent) | 1.00% | 1.00% | 1.00% |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Pronouncements not yet adopted (Details) - ASU 2016-02 - Adjustment $ in Millions | Apr. 01, 2019USD ($) |
Recently Issued Accounting Pronouncements | |
Right-of-use assets | $ 5.1 |
Lease liability | $ 5.1 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Pronouncements adopted (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Apr. 01, 2018 | Mar. 26, 2017 | |
Recently Issued Accounting Pronouncements | |||
Return asset | $ 1.5 | ||
Refund liability | $ 2 | ||
Income tax benefit to re-measure deferred tax liabilities | $ 0.2 | ||
Statutory federal rate (as a percent) | 21.00% | 31.30% | 34.00% |
Property and Equipment - (Detai
Property and Equipment - (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2019 | Apr. 01, 2018 | Mar. 26, 2017 | |
Property and Equipment | |||
Property and equipment, gross | $ 40,276,400 | $ 38,195,100 | |
Less: Accumulated depreciation and amortization | (25,272,900) | (24,532,300) | |
Property and equipment, net | 15,003,500 | 13,662,800 | |
Depreciation and amortization | 3,618,900 | 3,992,600 | $ 4,238,900 |
Land | |||
Property and Equipment | |||
Property and equipment, gross | 4,740,800 | 4,740,800 | |
Building, building improvements and leasehold improvements | |||
Property and Equipment | |||
Property and equipment, gross | 20,926,500 | 20,896,300 | |
Information technology equipment | |||
Property and Equipment | |||
Property and equipment, gross | 6,026,300 | 4,988,600 | |
Furniture, telephone system, equipment and tooling | |||
Property and Equipment | |||
Property and equipment, gross | $ 8,582,800 | $ 7,569,400 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets - (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2019 | Apr. 01, 2018 | Mar. 26, 2017 | |
Goodwill and Other Intangible Assets | |||
Increase (decrease) in carrying amount of goodwill | $ 0 | $ 0 | |
Internally developed computer software | |||
Goodwill and Other Intangible Assets | |||
Capitalized computer software | 2,598,000 | 2,379,100 | |
Amortization of capitalized computer software | 1,620,800 | 1,721,000 | $ 1,355,000 |
Other long-term assets | |||
Goodwill and Other Intangible Assets | |||
Other intangible assets | $ 795,400 | $ 795,400 |
Accrued expenses and other cu_3
Accrued expenses and other current liabilities - (Details) - USD ($) | Mar. 31, 2019 | Apr. 01, 2018 |
Accrued expenses and other current liabilities | ||
Deferred Revenue | $ 1,985,700 | $ 625,700 |
Other Accrued Expenses | 666,700 | 771,900 |
Total Accrued Expenses | $ 2,652,400 | $ 1,397,600 |
Borrowings Under Revolving Cr_2
Borrowings Under Revolving Credit Facility (Details) - USD ($) | Oct. 19, 2017 | Mar. 31, 2019 | Apr. 01, 2018 | Oct. 18, 2017 |
Credit Facility | ||||
Revolving line of credit | $ 14,378,100 | $ 10,835,400 | ||
Revolving Credit Facility | ||||
Credit Facility | ||||
Interest rate (as a percent) | 3.99% | 3.17% | ||
Weighted average interest rate during the period (as a percent) | 3.71% | 2.89% | ||
Interest expense | $ 836,300 | $ 444,200 | ||
Average borrowings during period | 22,360,200 | 14,938,800 | ||
Maximum borrowings during period | $ 33,639,500 | $ 28,596,600 | ||
Commitment fee on unused portion of revolving credit facility (as a percent) | 0.25% | 0.25% | ||
Revolving line of credit | $ 23,400,000 | $ 14,400,000 | $ 10,800,000 | |
Available borrowing capacity | $ 60,600,000 | $ 64,200,000 | ||
Maximum borrowing capacity | $ 75,000,000 | $ 35,000,000 | ||
Borrowing base as a percent of eligible receivables | 85.00% | |||
Interest rate spread on variable rate when average availability is greater or equal to $15 million | 1.50% | |||
Average availability threshold | $ 15,000,000 | |||
Interest rate spread on variable rate when average availability otherwise | 1.75% | |||
Increase of applicable rate upon event of default (as a percent) | 200.00% | |||
Fee commitment (as a percent) | 0.25% | |||
Maximum aggregate commitment amount | $ 125,000,000 | |||
Revolving Credit Facility | Minimum | ||||
Credit Facility | ||||
Inventory age | 181 days | |||
Revolving Credit Facility | Maximum | ||||
Credit Facility | ||||
Amount included in formula to determine borrowing base | $ 4,000,000 | |||
Inventory age | 181 days | |||
Revolving Credit Facility | Base rate | ||||
Credit Facility | ||||
Interest rate spread on variable rate basis (as a percent) | 0.50% | |||
Revolving Credit Facility | Eurodollar rate | ||||
Credit Facility | ||||
Value from which Eurodollar Reserve Percentage is subtracted | 1 | |||
Interest rate spread on variable rate basis (as a percent) | 1.75% | |||
Revolving Credit Facility | Standby letters of credit | ||||
Credit Facility | ||||
Maximum borrowing capacity | $ 5,000,000 | |||
Revolving Credit Facility | Swingline loan | ||||
Credit Facility | ||||
Maximum borrowing capacity | $ 12,500,000 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2019 | Apr. 01, 2018 | Mar. 26, 2017 | |
Commitments and contingencies | |||
Rent expense | $ 3,001,800 | $ 3,041,700 | $ 3,047,500 |
Minimum future obligations | |||
2020 | 2,996,700 | ||
2021 | 2,111,600 | ||
2022 | 203,200 | ||
2023 | 14,900 | ||
Total | 5,326,400 | ||
Leased office space in Timonium, Maryland | Minimum | |||
Commitments and contingencies | |||
Base rental rate per month | 174,500 | ||
Leased office space in Timonium, Maryland | Maximum | |||
Commitments and contingencies | |||
Base rental rate per month | 185,100 | ||
Leased office and warehouse space in Hunt Valley, Maryland | Minimum | |||
Commitments and contingencies | |||
Base rental rate per month | 38,200 | ||
Leased office and warehouse space in Hunt Valley, Maryland | Maximum | |||
Commitments and contingencies | |||
Base rental rate per month | 39,300 | ||
Leased office and warehouse space in San Antonio, Texas | Minimum | |||
Commitments and contingencies | |||
Base rental rate per month | 18,000 | ||
Leased office and warehouse space in San Antonio, Texas | Maximum | |||
Commitments and contingencies | |||
Base rental rate per month | $ 19,100 |
Operating Segments - Market Act
Operating Segments - Market Activity (Details) | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2019USD ($) | Dec. 30, 2018USD ($) | Sep. 30, 2018USD ($) | Jul. 01, 2018USD ($) | Apr. 01, 2018USD ($) | Dec. 24, 2017USD ($) | Sep. 24, 2017USD ($) | Jun. 25, 2017USD ($) | Mar. 31, 2019USD ($)segmentproduct | Apr. 01, 2018USD ($) | Mar. 26, 2017USD ($) | |
Business Segments | |||||||||||
Number of reportable segment | segment | 2 | ||||||||||
Number of product categories | product | 4 | ||||||||||
Market unit activity | |||||||||||
Revenues | $ 144,963,800 | $ 152,294,500 | $ 158,636,100 | $ 150,919,400 | $ 148,920,100 | $ 146,260,300 | $ 145,083,500 | $ 140,010,800 | $ 606,813,800 | $ 580,274,700 | $ 533,295,100 |
Gross Profit | 28,267,200 | 30,998,700 | 31,394,700 | 30,698,100 | 31,538,700 | 29,599,800 | 29,923,100 | 29,166,800 | 121,358,700 | 120,228,400 | 111,767,800 |
Income before provision for income taxes | $ 800,200 | $ 3,256,000 | $ 1,672,600 | $ 1,562,400 | $ 1,091,600 | $ 2,072,100 | $ 3,092,200 | $ 1,216,700 | 7,291,200 | 7,472,600 | 2,486,300 |
Segments | |||||||||||
Market unit activity | |||||||||||
Directly allocable expenses | 49,627,000 | 48,127,000 | 48,854,000 | ||||||||
Income before provision for income taxes | 71,732,000 | 72,101,000 | 62,914,000 | ||||||||
Corporate | |||||||||||
Market unit activity | |||||||||||
Directly allocable expenses | 64,441,000 | 64,628,000 | 60,428,000 | ||||||||
Public Carrier | |||||||||||
Market unit activity | |||||||||||
Revenues | 156,983,000 | 115,061,000 | 82,015,000 | ||||||||
Gross Profit | 20,275,000 | 16,707,000 | 13,706,000 | ||||||||
Value-added resellers and integrators | |||||||||||
Market unit activity | |||||||||||
Revenues | 262,062,000 | 270,615,000 | 249,670,000 | ||||||||
Gross Profit | 64,130,000 | 64,620,000 | 61,838,000 | ||||||||
Retail | |||||||||||
Market unit activity | |||||||||||
Revenues | 187,769,000 | 194,599,000 | 201,610,000 | ||||||||
Gross Profit | 36,954,000 | 38,901,000 | 36,224,000 | ||||||||
Commercial Segment | |||||||||||
Market unit activity | |||||||||||
Revenues | 419,045,000 | 385,676,000 | 331,685,000 | ||||||||
Gross Profit | 84,405,000 | 81,327,000 | 75,544,000 | ||||||||
Commercial Segment | Segments | |||||||||||
Market unit activity | |||||||||||
Directly allocable expenses | 33,475,000 | 32,592,000 | 32,455,000 | ||||||||
Income before provision for income taxes | 50,930,000 | 48,735,000 | 43,089,000 | ||||||||
Commercial Segment | Public Carrier | |||||||||||
Market unit activity | |||||||||||
Revenues | 156,983,000 | 115,061,000 | 82,015,000 | ||||||||
Gross Profit | 20,275,000 | 16,707,000 | 13,706,000 | ||||||||
Commercial Segment | Value-added resellers and integrators | |||||||||||
Market unit activity | |||||||||||
Revenues | 262,062,000 | 270,615,000 | 249,670,000 | ||||||||
Gross Profit | 64,130,000 | 64,620,000 | 61,838,000 | ||||||||
Retail Segment | |||||||||||
Market unit activity | |||||||||||
Revenues | 187,769,000 | 194,599,000 | 201,610,000 | ||||||||
Gross Profit | 36,954,000 | 38,901,000 | 36,224,000 | ||||||||
Retail Segment | Segments | |||||||||||
Market unit activity | |||||||||||
Directly allocable expenses | 16,152,000 | 15,535,000 | 16,399,000 | ||||||||
Income before provision for income taxes | 20,802,000 | 23,366,000 | 19,825,000 | ||||||||
Retail Segment | Retail | |||||||||||
Market unit activity | |||||||||||
Revenues | 187,769,000 | 194,599,000 | 201,610,000 | ||||||||
Gross Profit | $ 36,954,000 | $ 38,901,000 | $ 36,224,000 |
Operating Segments - Product Ca
Operating Segments - Product Category (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2019 | Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 24, 2017 | Sep. 24, 2017 | Jun. 25, 2017 | Mar. 31, 2019 | Apr. 01, 2018 | Mar. 26, 2017 | |
Revenue and Gross Profit from External Customers | |||||||||||
Revenues | $ 144,963,800 | $ 152,294,500 | $ 158,636,100 | $ 150,919,400 | $ 148,920,100 | $ 146,260,300 | $ 145,083,500 | $ 140,010,800 | $ 606,813,800 | $ 580,274,700 | $ 533,295,100 |
Gross Profit | $ 28,267,200 | $ 30,998,700 | $ 31,394,700 | $ 30,698,100 | $ 31,538,700 | $ 29,599,800 | $ 29,923,100 | $ 29,166,800 | 121,358,700 | 120,228,400 | 111,767,800 |
Base station infrastructure | |||||||||||
Revenue and Gross Profit from External Customers | |||||||||||
Revenues | 292,787,000 | 248,949,000 | 209,869,000 | ||||||||
Gross Profit | 61,458,000 | 58,015,000 | 54,280,000 | ||||||||
Network systems | |||||||||||
Revenue and Gross Profit from External Customers | |||||||||||
Revenues | 86,555,000 | 98,642,000 | 87,222,000 | ||||||||
Gross Profit | 13,604,000 | 14,649,000 | 11,897,000 | ||||||||
Installation, test and maintenance | |||||||||||
Revenue and Gross Profit from External Customers | |||||||||||
Revenues | 32,595,000 | 33,200,000 | 31,851,000 | ||||||||
Gross Profit | 6,433,000 | 6,266,000 | 5,921,000 | ||||||||
Mobile device accessories | |||||||||||
Revenue and Gross Profit from External Customers | |||||||||||
Revenues | 194,877,000 | 199,484,000 | 204,353,000 | ||||||||
Gross Profit | $ 39,864,000 | $ 41,298,000 | $ 39,670,000 |
Restructuring Charge (Details)
Restructuring Charge (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 26, 2017 | Mar. 26, 2017 | |
Restructuring Charge | ||
Restructuring charges | $ 800,000 | $ 806,600 |
Stock Buyback (Details)
Stock Buyback (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2019 | Apr. 01, 2018 | Mar. 26, 2017 | |
Stock Buyback | |||
Tax withholding for share based compensation | $ 111,100 | $ 65,400 | $ 192,400 |
Income Taxes - Reconciliation (
Income Taxes - Reconciliation (Details) | 12 Months Ended | ||
Mar. 31, 2019 | Apr. 01, 2018 | Mar. 26, 2017 | |
Effective income tax rate reconciliation | |||
Statutory federal rate (as a percent) | 21.00% | 31.30% | 34.00% |
State taxes, net of federal benefit (as a percent) | 3.50% | 4.00% | 4.60% |
Non-deductible expenses (as a percent) | 2.10% | 4.40% | 5.40% |
Change in uncertain tax positions (as a percent) | (4.60%) | ||
Change in valuation allowance (as a percent) | 1.90% | ||
Change in deferred tax related to key man life insurance (as a percent) | (7.30%) | ||
Other (as a percent) | (1.90%) | (2.10%) | |
Effective rate (as a percent) | 23.90% | 30.50% | 41.90% |
Income Taxes - Provision (Detai
Income Taxes - Provision (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2019 | Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 24, 2017 | Sep. 24, 2017 | Jun. 25, 2017 | Mar. 31, 2019 | Apr. 01, 2018 | Mar. 26, 2017 | |
Federal | |||||||||||
Current | $ 1,037,600 | $ 3,073,400 | $ 1,083,600 | ||||||||
Deferred | 576,200 | (1,081,600) | (69,100) | ||||||||
State | |||||||||||
Current | 52,600 | 433,400 | 53,100 | ||||||||
Deferred | 79,000 | (148,000) | (26,400) | ||||||||
Provision for income taxes | $ 308,200 | $ 551,400 | $ 481,800 | $ 404,000 | $ (76,800) | $ 501,900 | $ 1,318,300 | $ 533,800 | $ 1,745,400 | $ 2,277,200 | $ 1,041,200 |
Income Taxes - Deferred Taxes (
Income Taxes - Deferred Taxes (Details) - USD ($) | Mar. 31, 2019 | Apr. 01, 2018 |
Deferred tax assets : | ||
Deferred compensation | $ 267,300 | $ 160,600 |
Accrued vacation | 312,300 | 340,200 |
Deferred rent | 34,500 | 37,200 |
Allowance for doubtful accounts | 488,000 | 249,700 |
Inventory reserves | 1,406,100 | 1,414,600 |
Sales tax reserves | 192,900 | 217,500 |
Sales return assets | 478,600 | |
Other liabilities | 205,700 | |
Net operating loss | 141,600 | |
Tax contingency reserve | 83,400 | |
Other assets | 652,800 | 1,364,900 |
Total gross deferred tax assets | 4,179,800 | 3,868,100 |
Valuation allowance | (141,600) | |
Total deferred tax assets | 4,038,200 | 3,868,100 |
Deferred tax liabilities : | ||
Depreciation and amortization | (3,094,000) | (2,542,800) |
Sales return liabilities | (365,200) | |
Prepaid expenses | (523,700) | (614,800) |
Total deferred tax liabilities | (3,982,900) | (3,157,600) |
Net Deferred Tax Assets | $ 55,300 | $ 710,500 |
Income Taxes - Unrecognized tax
Income Taxes - Unrecognized tax benefits (Details) - USD ($) | 12 Months Ended | |||
Mar. 31, 2019 | Apr. 01, 2018 | Mar. 26, 2017 | Mar. 27, 2016 | |
Income Taxes | ||||
Gross amount of unrecognized tax benefits | $ 112,700 | $ 204,500 | $ 290,400 | |
Unrecognized tax benefits, net of federal benefit | 87,200 | |||
Amount of interest and penalties expense (benefit) related to tax uncertainties recognized, net of federal expense/benefit | $ (250,500) | (38,100) | $ (10,000) | |
Cumulative amount of interest and penalties related to tax uncertainties, net of federal expense (benefit) | $ 0 | $ 250,500 |
Income Taxes - Changes in unrec
Income Taxes - Changes in unrecognized tax benefits (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2019 | Apr. 01, 2018 | Mar. 26, 2017 | |
Reconciliation of unrecognized tax benefit amounts | |||
Beginning balance of unrecognized tax benefit | $ 112,700 | $ 204,500 | $ 290,400 |
Increases related to current period tax positions | 3,500 | 3,100 | |
Reductions as a result of a lapse in the applicable statute of limitations | $ (116,200) | (91,800) | (89,000) |
Ending balance of unrecognized tax benefits | $ 112,700 | $ 204,500 |
Income Taxes - New tax legislat
Income Taxes - New tax legislation (Details) $ in Millions | 12 Months Ended |
Apr. 01, 2018USD ($) | |
Income Taxes | |
Income tax benefit to re-measure deferred tax liabilities | $ 0.2 |
Retirement Plans - 401(k) (Deta
Retirement Plans - 401(k) (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2019 | Apr. 01, 2018 | Mar. 26, 2017 | |
Retirement Plans | |||
Defined contribution plan expense | $ 957,100 | $ 928,100 | $ 621,600 |
Common stock shares included in plan assets (in shares) | 171,300 |
Retirement Plans - Supplemental
Retirement Plans - Supplemental Plan (Details) - USD ($) | Mar. 31, 2019 | Apr. 01, 2018 |
Defined Benefit Plan | ||
Plan type | us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember | us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember |
Other long-term assets | ||
Defined Benefit Plan | ||
Cash surrender value of life insurance policy | $ 2,326,800 | $ 2,204,500 |
Other long-term liabilities | ||
Defined Benefit Plan | ||
Net present value of benefit obligation | $ 853,400 | $ 901,400 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2019 | Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 24, 2017 | Sep. 24, 2017 | Jun. 25, 2017 | Mar. 31, 2019 | Apr. 01, 2018 | Mar. 26, 2017 | |
Earnings per share - Basic | |||||||||||
Net earnings | $ 492,000 | $ 2,704,600 | $ 1,190,800 | $ 1,158,400 | $ 1,168,400 | $ 1,570,200 | $ 1,773,900 | $ 682,900 | $ 5,545,800 | $ 5,195,400 | $ 1,445,100 |
Earnings available to common shareholders - Basic | $ 5,546,000 | $ 5,195,000 | $ 1,445,000 | ||||||||
Weighted average common shares outstanding - Basic (in shares) | 8,436,796 | 8,370,742 | 8,312,731 | ||||||||
Basic earnings per share (in dollars per share) | $ 0.66 | $ 0.62 | $ 0.17 | ||||||||
Earnings per share - Diluted | |||||||||||
Net earnings | $ 492,000 | $ 2,704,600 | $ 1,190,800 | $ 1,158,400 | $ 1,168,400 | $ 1,570,200 | $ 1,773,900 | $ 682,900 | $ 5,545,800 | $ 5,195,400 | $ 1,445,100 |
Earnings available to common shareholders – Diluted | $ 5,546,000 | $ 5,195,000 | $ 1,445,000 | ||||||||
Weighted average common shares outstanding - Basic (in shares) | 8,436,796 | 8,370,742 | 8,312,731 | ||||||||
Effect of dilutive options (in shares) | 130,163 | 100,263 | 27,686 | ||||||||
Diluted weighted-average common shares outstanding (in shares) | 8,566,959 | 8,471,005 | 8,340,417 | ||||||||
Diluted earnings per share (in dollars per share) | $ 0.06 | $ 0.32 | $ 0.14 | $ 0.13 | $ 0.14 | $ 0.19 | $ 0.21 | $ 0.08 | $ 0.65 | $ 0.61 | $ 0.17 |
Anti-dilutive equity awards (in shares) | 94,000 | 40,000 | 60,000 | ||||||||
Stock Options | |||||||||||
Earnings per share - Diluted | |||||||||||
Anti-dilutive equity awards (in shares) | 94,000 | 40,000 | 60,000 | ||||||||
Options outstanding (in shares) | 591,500 | 540,000 | 591,500 | 540,000 | 420,000 | ||||||
Performance Stock Units | |||||||||||
Earnings per share - Diluted | |||||||||||
Anti-dilutive equity awards (in shares) | 0 | 0 | 0 |
Stock-Based Compensation - Plan
Stock-Based Compensation - Plan (Details) - USD ($) | May 10, 2019 | May 30, 2019 | Mar. 31, 2019 | Apr. 01, 2018 | Mar. 26, 2017 |
Stock-based compensation | |||||
Income tax benefit from share-based compensation (in dollars) | $ 297,300 | $ 305,400 | $ 181,900 | ||
Options Granted (in shares) | 66,500 | 230,000 | |||
Performance Stock Units | |||||
Stock-based compensation | |||||
Cancelled (in shares) | 25,437 | 181,500 | 148,154 | ||
Granted (in shares) | 71,000 | 86,000 | 207,000 | ||
RSU awards | |||||
Stock-based compensation | |||||
Granted (in shares) | 2,000 | ||||
1994 Plan | |||||
Stock-based compensation | |||||
Number of shares available for grant (in shares) | 247,200 | ||||
Selling, general and administrative expenses | |||||
Stock-based compensation | |||||
Stock-based compensation (in dollars) | $ 1,244,000 | $ 1,002,100 | $ 434,400 | ||
Subsequent Event | |||||
Stock-based compensation | |||||
Options Granted (in shares) | 135,000 | ||||
Subsequent Event | Performance Stock Units | |||||
Stock-based compensation | |||||
Cancelled (in shares) | 21,750 | 24,000 | |||
Granted (in shares) | 45,500 | ||||
Subsequent Event | RSU awards | |||||
Stock-based compensation | |||||
Granted (in shares) | 21,000 | ||||
Subsequent Event | 1994 Plan | |||||
Stock-based compensation | |||||
Number of shares available for grant (in shares) | 67,450 |
Stock-Based Compensation - Perf
Stock-Based Compensation - Performance Stock Units (Details) - Performance Stock Units - USD ($) | May 01, 2022 | May 01, 2021 | May 01, 2020 | May 10, 2019 | May 01, 2019 | May 30, 2019 | Mar. 31, 2019 | Apr. 01, 2018 | Mar. 26, 2017 | May 01, 2022 |
Stock-based compensation | ||||||||||
Measurement period | 1 year | 1 year | ||||||||
PSU Activity | ||||||||||
Unvested shares available for issue under outstanding PSUs, beginning of period (in shares) | 67,000 | 170,100 | 138,925 | |||||||
Granted (in shares) | 71,000 | 86,000 | 207,000 | |||||||
Vested (in shares) | (14,257) | (7,600) | (27,671) | |||||||
Forfeited/cancelled (in shares) | (25,437) | (181,500) | (148,154) | |||||||
Unvested shares available for issue under outstanding PSUs, end of period (in shares) | 98,306 | 67,000 | 170,100 | |||||||
Unvested PSUs, Weighted-Average Fair Value at Grant Date | ||||||||||
Unvested shares available for issue under outstanding PSUs, beginning of period (in dollars per share) | $ 12.65 | $ 11.17 | $ 21.46 | |||||||
Granted (in dollars per share) | 15.58 | 12.67 | 10.77 | |||||||
Vested (in dollars per share) | 12.66 | 19.58 | 19.40 | |||||||
Forfeited/cancelled (in dollars per share) | 13.46 | 10.99 | 18.72 | |||||||
Unvested shares available for issue under outstanding PSUs, end of period (in dollars per share) | $ 14.55 | $ 12.65 | $ 11.17 | |||||||
Additional stock based compensation information | ||||||||||
Unrecognized compensation costs (in dollars) | $ 300,000 | |||||||||
Total fair value of shares vested during period (in dollars) | $ 460,800 | $ 277,600 | $ 628,200 | |||||||
Shares earned, but not yet vested (in shares) | 74,300 | |||||||||
Forecast | ||||||||||
PSU Activity | ||||||||||
Vested (in shares) | (9,994) | (21,446) | (21,446) | (21,446) | (74,332) | |||||
Subsequent Event | ||||||||||
Stock-based compensation | ||||||||||
Measurement period | 1 year | |||||||||
PSU Activity | ||||||||||
Granted (in shares) | 45,500 | |||||||||
Forfeited/cancelled (in shares) | (21,750) | (24,000) | ||||||||
Additional stock based compensation information | ||||||||||
Annual vesting percentage | 25.00% |
Stock-Based Compensation - RSUs
Stock-Based Compensation - RSUs (Details) - RSU awards - USD ($) $ / shares in Units, $ in Millions | May 10, 2019 | May 10, 2018 | Aug. 08, 2017 | May 10, 2017 | May 11, 2016 | Mar. 31, 2019 | Apr. 01, 2018 |
Stock-based compensation | |||||||
Granted (in shares) | 2,000 | ||||||
Unrecognized compensation costs (in dollars) | $ 0.6 | ||||||
Unrecognized compensation costs, period for recognition | 2 years | ||||||
Award Date May 11, 2016 | |||||||
Stock-based compensation | |||||||
Granted (in shares) | 10,000 | ||||||
Annual vesting percentage | 25.00% | ||||||
Unrecognized compensation costs (in dollars) | $ 0.7 | ||||||
Unrecognized compensation costs, period for recognition | 1 year | ||||||
Award Date May 10, 2017 | |||||||
Stock-based compensation | |||||||
Granted (in shares) | 18,000 | ||||||
Annual vesting percentage | 25.00% | ||||||
Unrecognized compensation costs (in dollars) | $ 0.1 | ||||||
Unrecognized compensation costs, period for recognition | 2 years | ||||||
Award Date August 8, 2017 | |||||||
Stock-based compensation | |||||||
Granted (in shares) | 56,000 | ||||||
Vesting period | 4 years | ||||||
Denominator in fraction used to calculate number of awards earned | $ 3.20 | ||||||
Cancelled (in shares) | 8,000 | ||||||
Shares outstanding (in shares) | 48,000 | ||||||
Award Dates, May 10, 2018 and June 6, 2018 | |||||||
Stock-based compensation | |||||||
Granted (in shares) | 21,000 | ||||||
Annual vesting percentage | 25.00% | ||||||
Unrecognized compensation costs (in dollars) | $ 0.2 | ||||||
Unrecognized compensation costs, period for recognition | 3 years | ||||||
Subsequent Event | |||||||
Stock-based compensation | |||||||
Granted (in shares) | 21,000 | ||||||
Annual vesting percentage | 25.00% |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Mar. 31, 2019 | Apr. 01, 2018 | Mar. 26, 2017 | Mar. 27, 2016 | |
Shares | ||||
Unvested options, beginning of period | 392,500 | 395,000 | ||
Options Granted (in shares) | 66,500 | 230,000 | ||
Options Vested (in shares) | (162,708) | (122,500) | ||
Options Forfeited/Cancelled (in shares) | (15,000) | (110,000) | ||
Unvested options, end of period | 281,292 | 392,500 | 395,000 | |
Weighted Average Fair Value at Grant | ||||
Unvested shares available for issue under outstanding options, beginning of period | $ 2.21 | $ 1.96 | ||
Options Granted | 3.38 | 2.57 | ||
Options Vested | 2.20 | 1.87 | ||
Options Forfeited/Cancelled | 4.26 | 2.42 | ||
Unvested shares available for issue under outstanding options, end of period | $ 2.39 | 2.21 | $ 1.96 | |
Additional Disclosures | ||||
Options Outstanding (in shares) | 591,500 | |||
Options Exercisable (in shares) | 310,208 | |||
Valuation assumptions | ||||
Resulting Black Scholes Value (in dollars per share) | $ 3.38 | $ 2.57 | ||
Grant Fiscal Year 2019 | ||||
Shares | ||||
Options Granted (in shares) | 66,500 | |||
Weighted Average Fair Value at Grant | ||||
Options Granted | $ 3.38 | |||
Additional Disclosures | ||||
Option Exercise Price (in dollars per share) | $ 16.31 | |||
Options Outstanding (in shares) | 61,500 | |||
Valuation assumptions | ||||
Expected Stock Price Volatility (as a percent) | 35.59% | |||
Risk-Free Interest rate (as a percent) | 3.11% | |||
Expected Dividend Yield (as a percent) | 4.99% | |||
Average Expected Term | 4 years | |||
Resulting Black Scholes Value (in dollars per share) | $ 3.38 | |||
Grant Fiscal Year 2018 | ||||
Shares | ||||
Options Granted (in shares) | 230,000 | |||
Weighted Average Fair Value at Grant | ||||
Options Granted | $ 2.57 | |||
Additional Disclosures | ||||
Option Exercise Price (in dollars per share) | $ 15.12 | |||
Options Outstanding (in shares) | 160,000 | |||
Options Exercisable (in shares) | 71,458 | |||
Valuation assumptions | ||||
Expected Stock Price Volatility (as a percent) | 32.63% | |||
Risk-Free Interest rate (as a percent) | 1.96% | |||
Expected Dividend Yield (as a percent) | 5.34% | |||
Average Expected Term | 4 years | |||
Resulting Black Scholes Value (in dollars per share) | $ 2.57 | |||
Grant Fiscal Year 2017 | ||||
Shares | ||||
Options Granted (in shares) | 410,000 | |||
Weighted Average Fair Value at Grant | ||||
Options Granted | $ 1.85 | |||
Additional Disclosures | ||||
Option Exercise Price (in dollars per share) | $ 12.57 | |||
Options Outstanding (in shares) | 330,000 | |||
Options Exercisable (in shares) | 202,083 | |||
Valuation assumptions | ||||
Expected Stock Price Volatility (as a percent) | 32.85% | |||
Risk-Free Interest rate (as a percent) | 1.32% | |||
Expected Dividend Yield (as a percent) | 6.30% | |||
Average Expected Term | 4 years | |||
Resulting Black Scholes Value (in dollars per share) | $ 1.85 | |||
Grant Fiscal Year 2016 | ||||
Shares | ||||
Options Granted (in shares) | 100,000 | |||
Additional Disclosures | ||||
Option Exercise Price (in dollars per share) | $ 22.42 | |||
Options Outstanding (in shares) | 40,000 | |||
Options Exercisable (in shares) | 36,667 | |||
Stock Options | ||||
Stock Options: | ||||
Unrecognized compensation costs (in dollars) | $ 0.6 | |||
Unrecognized compensation costs, period for recognition | 3 years | |||
Options exercised | 0 | 0 | 0 | |
First year vesting | Stock Options | ||||
Stock Options: | ||||
Vesting percentage | 25.00% | |||
Vesting period | 1 year | |||
Monthly vesting over 36 months | Stock Options | ||||
Stock Options: | ||||
Monthly percentage of vesting of share based compensation | 2.78% | |||
Additional vesting period after the initial period | 3 years |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock Purchase Plan (Details) - Team Member Stock Purchase - Team Member Stock Purchase Plan - USD ($) | 12 Months Ended | ||
Mar. 31, 2019 | Apr. 01, 2018 | Mar. 26, 2017 | |
Stock-based compensation | |||
Number of shares authorized (in shares) | 450,000 | ||
Purchase price of common stock (as a percent) | 85.00% | ||
Purchase period | 6 months | ||
Stock-based compensation (in dollars) | $ 82,600 | $ 49,700 | $ 47,300 |
Shares sold to employees (in shares) | 19,183 | 13,423 | 12,901 |
Weighted-average market value (in dollars per share) | $ 14.54 | $ 11.08 | $ 10.68 |
Fair Value Disclosure (Details)
Fair Value Disclosure (Details) - Recurring - USD ($) | Mar. 31, 2019 | Apr. 01, 2018 |
Fair Value | ||
Assets, measured at fair value | $ 0 | $ 0 |
Liabilities, measured at fair value | $ 0 | $ 0 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2019 | Apr. 01, 2018 | Mar. 26, 2017 | |
Supplemental Cash Flow Information | |||
Cash paid for income taxes, net of refunds | $ 1,835,400 | $ 2,440,000 | $ 55,600 |
Cash paid for interest | 809,000 | 406,200 | 60,600 |
Interest capitalized | $ 0 | $ 0 | $ 0 |
Concentration of Risk (Details)
Concentration of Risk (Details) - Revenue | 12 Months Ended | ||
Mar. 31, 2019itemcustomer | Apr. 01, 2018itemcustomer | Mar. 26, 2017itemcustomer | |
Customer Concentration Risk | Top ten customers | |||
Concentration Risk | |||
Number of customers | customer | 10 | 10 | 10 |
Concentration risk (as a percent) | 32.00% | 28.00% | 26.00% |
Supplier Concentration Risk | Top ten suppliers | |||
Concentration Risk | |||
Number of suppliers | item | 10 | 10 | 10 |
Concentration risk (as a percent) | 48.00% | 43.00% | 41.00% |
Supplier Concentration Risk | Largest commercial supplier | |||
Concentration Risk | |||
Concentration risk (as a percent) | 16.00% | 11.00% | 10.00% |
Supplier Concentration Risk | Largest retail supplier | |||
Concentration Risk | |||
Concentration risk (as a percent) | 8.00% | 10.00% | 11.00% |
Quarterly Results of Operatio_3
Quarterly Results of Operations (Unaudited) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2019 | Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 24, 2017 | Sep. 24, 2017 | Jun. 25, 2017 | Mar. 31, 2019 | Apr. 01, 2018 | Mar. 26, 2017 | |
Summarized quarterly financial data | |||||||||||
Fiscal period duration | 91 days | 91 days | 91 days | 91 days | 98 days | 91 days | 91 days | 91 days | 364 days | 371 days | 364 days |
Revenues | $ 144,963,800 | $ 152,294,500 | $ 158,636,100 | $ 150,919,400 | $ 148,920,100 | $ 146,260,300 | $ 145,083,500 | $ 140,010,800 | $ 606,813,800 | $ 580,274,700 | $ 533,295,100 |
Cost of goods sold | 116,696,600 | 121,295,800 | 127,241,400 | 120,221,300 | 117,381,400 | 116,660,500 | 115,160,400 | 110,844,000 | 485,455,100 | 460,046,300 | 421,527,300 |
Gross profit | 28,267,200 | 30,998,700 | 31,394,700 | 30,698,100 | 31,538,700 | 29,599,800 | 29,923,100 | 29,166,800 | 121,358,700 | 120,228,400 | 111,767,800 |
Selling, general and administrative expenses | 27,280,300 | 27,494,800 | 29,477,300 | 28,961,300 | 30,357,600 | 27,413,200 | 26,674,400 | 27,881,500 | 113,213,700 | 112,326,700 | 108,416,300 |
Income from operations | 986,900 | 3,503,900 | 1,917,400 | 1,736,800 | 1,181,100 | 2,186,600 | 3,248,700 | 1,285,300 | 8,145,000 | 7,901,700 | 2,544,900 |
Interest, net | 186,700 | 247,900 | 244,800 | 174,400 | 89,500 | 114,500 | 156,500 | 68,600 | 853,800 | 429,100 | 58,600 |
Income before provision for income taxes | 800,200 | 3,256,000 | 1,672,600 | 1,562,400 | 1,091,600 | 2,072,100 | 3,092,200 | 1,216,700 | 7,291,200 | 7,472,600 | 2,486,300 |
Provision for income taxes | 308,200 | 551,400 | 481,800 | 404,000 | (76,800) | 501,900 | 1,318,300 | 533,800 | 1,745,400 | 2,277,200 | 1,041,200 |
Net income | $ 492,000 | $ 2,704,600 | $ 1,190,800 | $ 1,158,400 | $ 1,168,400 | $ 1,570,200 | $ 1,773,900 | $ 682,900 | $ 5,545,800 | $ 5,195,400 | $ 1,445,100 |
Diluted earnings per share (in dollars per share) | $ 0.06 | $ 0.32 | $ 0.14 | $ 0.13 | $ 0.14 | $ 0.19 | $ 0.21 | $ 0.08 | $ 0.65 | $ 0.61 | $ 0.17 |
Cash dividends declared per common share (in dollars per share) | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.80 | $ 0.80 | $ 0.80 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2019 | Apr. 01, 2018 | Mar. 26, 2017 | |
Allowance for doubtful accounts: | |||
Change in valuation allowances and reserves | |||
Balance, beginning of period | $ 1,094,900 | $ 782,200 | $ 841,400 |
Provision/expense | 1,721,200 | 797,100 | 674,200 |
Write-offs and other adjustments | (678,200) | (484,400) | (733,400) |
Balance, end of period | 2,137,900 | 1,094,900 | 782,200 |
Inventory Reserve: | |||
Change in valuation allowances and reserves | |||
Balance, beginning of period | 5,739,700 | 6,360,600 | 6,071,100 |
Provision/expense | 4,863,100 | 4,361,400 | 3,193,200 |
Write-offs and other adjustments | (4,732,200) | (4,982,300) | (2,903,700) |
Balance, end of period | 5,870,600 | $ 5,739,700 | $ 6,360,600 |
Allowance for deferred tax asset: | |||
Change in valuation allowances and reserves | |||
Provision/expense | 141,600 | ||
Balance, end of period | $ 141,600 |