Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Jun. 06, 2018 | Sep. 22, 2017 | |
Document and Entity Information [Abstract] | |||
Document Fiscal Period Focus | FY | ||
Entity Common Stock, Shares Outstanding | 7,197,513 | ||
Entity Central Index Key | 99,302 | ||
Current Fiscal Year End Date | --03-31 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Entity Registrant Name | TRANSCAT INC | ||
Document Fiscal Year Focus | 2,018 | ||
Trading Symbol | TRNS | ||
Amendment Flag | false | ||
Document Period End Date | Mar. 31, 2018 | ||
Entity Public Float | $ 91 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 25, 2017 | ||
Total Revenue | [1] | $ 155,141 | $ 143,898 |
Total Cost of Revenue | 117,700 | 108,928 | |
Gross Profit | 37,441 | 34,970 | |
Selling, Marketing and Warehouse Expenses | 16,564 | 16,554 | |
General and Administrative Expenses | 11,851 | 10,482 | |
Total Operating Expenses | 28,415 | 27,036 | |
Operating Income | 9,026 | 7,934 | |
Interest and Other Expenses, net | 1,078 | 770 | |
Income Before Provision for Income Taxes | 7,948 | 7,164 | |
Provision for Income Taxes | 2,026 | 2,642 | |
Net Income | $ 5,922 | $ 4,522 | |
Basic Earnings Per Share | $ 0.83 | $ 0.65 | |
Average Shares Outstanding | 7,124 | 6,994 | |
Diluted Earnings Per Share | $ 0.81 | $ 0.64 | |
Average Shares Outstanding | 7,303 | 7,111 | |
Service Revenue [Member] | |||
Total Revenue | $ 77,445 | $ 71,103 | |
Total Cost of Revenue | 57,523 | 52,064 | |
Distribution Sales [Member] | |||
Total Revenue | 77,696 | 72,795 | |
Total Cost of Revenue | $ 60,177 | $ 56,864 | |
[1] | Revenues are attributed to the countries based on the destination of a product shipment or the location where service is rendered. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2018 | Mar. 25, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 5,922 | $ 4,522 |
Other Comprehensive Income (Loss): | ||
Currency Translation Adjustment | 156 | (41) |
Other, net of tax effects of $(25) and $10 for the years ended March 31, 2018 and March 25, 2017, respectively. | (23) | (15) |
Total Other Comprehensive Income (Loss) | 133 | (56) |
Comprehensive Income | $ 6,055 | $ 4,466 |
CONSOLIDATED STATEMENTS OF COM4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2018 | Mar. 25, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Other, tax expense (benefit) | $ (25) | $ 10 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 25, 2017 |
Current Assets: | ||
Cash | $ 577 | $ 842 |
Accounts Receivable, less allowance for doubtful accounts of $296 and $210 as of March 31, 2018 and March 25, 2017, respectively | 24,684 | 22,049 |
Other Receivables | 1,361 | 1,227 |
Inventory, net | 12,651 | 10,278 |
Prepaid Expenses and Other Current Assets | 1,240 | 1,193 |
Total Current Assets | 40,513 | 35,589 |
Property and Equipment, net | 17,091 | 15,568 |
Goodwill | 32,740 | 32,520 |
Intangible Assets, net | 5,505 | 7,519 |
Other Assets | 973 | 901 |
Total Assets | 96,822 | 92,097 |
Current Liabilities: | ||
Accounts Payable | 13,535 | 11,615 |
Accrued Compensation and Other Liabilities | 5,240 | 5,907 |
Income Taxes Payable | 232 | 805 |
Current Portion of Long-Term Debt | 2,143 | 1,429 |
Total Current Liabilities | 21,150 | 19,756 |
Long-Term Debt | 20,707 | 25,883 |
Deferred Tax Liabilities, net | 1,709 | 1,134 |
Other Liabilities | 1,908 | 1,923 |
Total Liabilities | 45,474 | 48,696 |
Shareholders' Equity: | ||
Common Stock, par value $0.50 per share, 30,000,000 shares authorized; 7,155,050 and 7,043,754 shares issued and outstanding as of March 31, 2018 and March 25, 2017, respectively | 3,578 | 3,522 |
Capital in Excess of Par Value | 14,965 | 12,996 |
Accumulated Other Comprehensive Loss | (281) | (414) |
Retained Earnings | 33,086 | 27,297 |
Total Shareholders' Equity | 51,348 | 43,401 |
Total Liabilities and Shareholders' Equity | $ 96,822 | $ 92,097 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 25, 2017 |
Statement of Financial Position [Abstract] | ||
Accounts Receivable, allowance for doubtful accounts (in Dollars) | $ 296 | $ 210 |
Common Stock, par value per share (in Dollars per share) | $ 0.50 | $ 0.50 |
Common Stock, shares authorized | 30,000,000 | 30,000,000 |
Common Stock, shares issued | 7,155,050 | 7,043,754 |
Common Stock, shares outstanding | 7,155,050 | 7,043,754 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2018 | Mar. 25, 2017 | |
Cash Flows from Operating Activities: | ||
Net Income | $ 5,922 | $ 4,522 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||
Loss (Gain) on Disposal of Property and Equipment | 133 | (4) |
Deferred Income Taxes | 765 | 63 |
Depreciation and Amortization | 5,991 | 6,184 |
Provision for Accounts Receivable and Inventory Reserves | 92 | 376 |
Stock-Based Compensation Expense | 1,411 | 453 |
Changes in Assets and Liabilities, net of acquisitions: | ||
Accounts Receivable and Other Receivables | (2,952) | (4,728) |
Inventory | (1,674) | (3,425) |
Prepaid Expenses and Other Assets | (259) | (224) |
Accounts Payable | 1,920 | 3,107 |
Accrued Compensation and Other Liabilities | (686) | 405 |
Income Taxes Payable | (789) | 815 |
Net Cash Provided by Operating Activities | 9,874 | 7,544 |
Cash Flows from Investing Activities: | ||
Purchase of Property and Equipment | (5,882) | (5,250) |
Proceeds from Sale of Property and Equipment | 11 | 59 |
Business Acquisitions, net of cash acquired | (6,977) | |
Net Cash Used in Investing Activities | (5,871) | (12,168) |
Cash Flows from Financing Activities: | ||
Repayment of Revolving Credit Facility, net | (9,878) | (452) |
Proceeds from Term Loan | 7,143 | 10,000 |
Repayments of Term Loan | (1,726) | (1,310) |
Payment of Contingent Consideration and Holdbacks Related to Business Acquisitions | (3,041) | |
Issuance of Common Stock | 931 | 635 |
Repurchase of Common Stock | (360) | (98) |
Stock Option Redemption | (90) | (966) |
Net Cash (Used In) Provided by Financing Activities | (3,980) | 4,768 |
Effect of Exchange Rate Changes on Cash | (288) | 57 |
Net (Decrease) Increase in Cash | (265) | 201 |
Cash at Beginning of Fiscal Year | 842 | 641 |
Cash at End of Fiscal Year | 577 | 842 |
Cash paid during the fiscal year for: | ||
Interest | 1,015 | 686 |
Income Taxes, net | 2,068 | 1,835 |
Supplemental Disclosure of Non-Cash Investing and Financing Activities: | ||
Contingent Consideration Related to Business Acquisition | ||
Holdback Amounts Related to Business Acquisitions | $ 735 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock Issued $0.50 Par Value [Member] | Capital In Excess of Par Value [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Earnings [Member] | Total |
Balance at Mar. 26, 2016 | $ 3,462 | $ 12,993 | $ (358) | $ 22,814 | $ 38,911 |
Balance (in Shares) at Mar. 26, 2016 | 6,924,000 | ||||
Issuance of Common Stock | $ 40 | 595 | 635 | ||
Issuance of Common Stock (in Shares) | 80,000 | ||||
Repurchase of Common Stock | $ (5) | (54) | (39) | (98) | |
Repurchase of Common Stock (in shares) | (10,000) | ||||
Stock-Based Compensation | $ 25 | 428 | 453 | ||
Stock-Based Compensation (in Shares) | 50,000 | ||||
Redemption of Stock Options | (966) | (966) | |||
Other Comprehensive Loss | (56) | (56) | |||
Net Income | 4,522 | 4,522 | |||
Balance at Mar. 25, 2017 | $ 3,522 | 12,996 | (414) | 27,297 | $ 43,401 |
Balance (in Shares) at Mar. 25, 2017 | 7,044,000 | 7,043,754 | |||
Issuance of Common Stock | $ 57 | 874 | $ 931 | ||
Issuance of Common Stock (in Shares) | 114,000 | ||||
Repurchase of Common Stock | $ (14) | (213) | (133) | (360) | |
Repurchase of Common Stock (in shares) | (28,000) | ||||
Stock-Based Compensation | $ 13 | 1,398 | 1,411 | ||
Stock-Based Compensation (in Shares) | 25,000 | ||||
Redemption of Stock Options | (90) | (90) | |||
Other Comprehensive Loss | 133 | 133 | |||
Net Income | 5,922 | 5,922 | |||
Balance at Mar. 31, 2018 | $ 3,578 | $ 14,965 | $ (281) | $ 33,086 | $ 51,348 |
Balance (in Shares) at Mar. 31, 2018 | 7,155,000 | 7,155,050 |
GENERAL
GENERAL | 12 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
GENERAL | NOTE 1 – GENERAL Description of Business: Transcat, Inc. (“Transcat” or the “Company”) is a leading provider of accredited calibration and laboratory instrument services and a value-added distributor of professional grade handheld test, measurement and control instrumentation. The Company is focused on providing services and products to highly regulated industries, particularly the life science industry, which includes pharmaceutical, biotechnology, medical device and other FDA-regulated businesses. Additional industries served include industrial manufacturing; energy and utilities, including oil and gas and alternative energy; FAA-regulated businesses, including aerospace and defense; and other industries that require accuracy in their processes, confirmation of the capabilities of their equipment, and for which the risk of failure is very costly. Principles of Consolidation: The consolidated financial statements of Transcat include the accounts of Transcat and the Company’s wholly-owned subsidiaries, Transcat Canada Inc., United Scale & Engineering Corporation, WTT Real Estate Acquisition, LLC and Anmar Metrology, Inc. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates: The preparation of Transcat’s Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States (“GAAP”) requires that the Company make estimates and assumptions that affect the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions are used for, but not limited to, allowance for doubtful accounts and returns, inventory reserves, estimated levels of achievement for performance-based restricted stock units, fair value of stock options, depreciable lives of fixed assets, estimated lives of major catalogs and intangible assets, and the valuation of assets acquired and liabilities assumed in business acquisitions. Future events and their effects cannot be predicted with certainty; accordingly, accounting estimates require the exercise of judgment. The accounting estimates used in the preparation of the Consolidated Financial Statements will change as new events occur, as more experience is acquired, as additional information is obtained and as the operating environment changes. Actual results could differ from those estimates. Such changes and refinements in estimation methodologies are reflected in reported results of operations in the period in which the changes are made and, if material, their effects are disclosed in the Notes to the Consolidated Financial Statements. Fiscal Year: Transcat operates on a 52/53 week fiscal year, ending the last Saturday in March. In a 52-week fiscal year, each of the four quarters is a 13-week period. In a 53-week fiscal year, the last quarter is a 14-week period. The fiscal year ended March 31, 2018 (“fiscal year 2018”) consisted of 53 weeks while the fiscal year ended March 25, 2017 (“fiscal year 2017”) consisted of 52 weeks. Accounts Receivable: Accounts receivable represent amounts due from customers in the ordinary course of business. These amounts are recorded net of the allowance for doubtful accounts and returns in the Consolidated Balance Sheets. The allowance for doubtful accounts is based upon the expected collectability of accounts receivable. Transcat applies a specific formula to its accounts receivable aging, which may be adjusted on a specific account basis where the formula may not appropriately reserve for loss exposure. After all attempts to collect a receivable have failed, the receivable is written-off against the allowance for doubtful accounts. The returns reserve is calculated based upon the historical rate of returns applied to revenues over a specific timeframe. The returns reserve will increase or decrease as a result of changes in the level of revenue and/or the historical rate of returns. Inventory: Inventory consists of products purchased for resale and is valued at the lower of cost or net realizable value. Costs are determined using the average cost method of inventory valuation. Inventory is reduced by a reserve for items not saleable at or above cost by applying a specific loss factor, based on historical experience, to specific categories of inventory. The Company evaluates the adequacy of the reserve on a quarterly basis. At March 31, 2018 and March 25, 2017, the Company had reserves for inventory losses totaling $0.4 million and $0.6 million, respectively. Property and Equipment, Depreciation and Amortization: Property and equipment are stated at cost. Depreciation and amortization are computed primarily under the straight-line method over the following estimated useful lives: Years Machinery, Equipment and Software 2 – 15 Rental Equipment 5 – 8 Furniture and Fixtures 3 – 10 Leasehold Improvements 2 – 10 Buildings 39 Property and equipment determined to have no value are written off at their then remaining net book value. Transcat capitalizes certain costs incurred in the procurement and development of computer software used for internal purposes. Leasehold improvements are amortized under the straight-line method over the estimated useful life or the lease term, whichever is shorter. Maintenance and repairs are expensed as incurred. See Note 2 for further information on property and equipment. Business Acquisitions: The Company applies the acquisition method of accounting for business acquisitions. Under the acquisition method, the purchase price of an acquisition is assigned to the underlying tangible and intangible assets acquired and liabilities assumed based on their respective fair values at the date of acquisition. The Company uses a valuation hierarchy, as further described under Fair Value of Financial Instruments below, and typically utilizes independent third-party valuation specialists to determine the fair values used in this allocation. Purchase price allocations are subject to revision within the measurement period, not to exceed one year from the date of acquisition. Costs to acquire a business may include, but are not limited to, fees for accounting, legal and valuation services, and are expensed as incurred in the Consolidated Statements of Income. Goodwill and Intangible Assets: Goodwill represents the excess of the purchase price over the fair values of the underlying net assets of an acquired business. Intangible assets, namely customer base and covenants not to compete, represent an allocation of purchase price to identifiable intangible assets of an acquired business. The Company estimates the fair value of its reporting units using the fair market value measurement requirement. The Company tests goodwill for impairment on an annual basis, or immediately if conditions indicate that such impairment could exist. Other intangible assets are evaluated for impairment when events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. The Company determined that no impairment was indicated as of March 31, 2018 and March 25, 2017. A summary of changes in the Company’s goodwill and intangible assets is as follows: Goodwill Intangible Assets Distribution Service Total Distribution Service Total Net Book Value as of March 26, 2016 $ 8,031 $ 21,081 $ 29,112 $ 124 $ 8,087 $ 8,211 Additions (see Note 9) 1,728 1,733 3,461 1,045 1,045 2,090 Amortization - - - (413 ) (2,362 ) (2,775 ) Currency Translation Adjustment - (53 ) (53 ) - (7 ) (7 ) Net Book Value as of March 25, 2017 $ 9,759 $ 22,761 $ 32,520 $ 756 $ 6,763 $ 7,519 Additions (see Note 9) - - - - - - Amortization - - - (269 ) (1,803 ) (2,072 ) Currency Translation Adjustment - 220 220 - 58 58 Net Book Value as of March 31, 2018 $ 9,759 $ 22,981 $ 32,740 $ 487 $ 5,018 $ 5,505 The intangible assets are being amortized on an accelerated basis over their estimated useful lives of up to 10 years. Amortization expense relating to intangible assets is expected to be $1.6 million in fiscal year 2019, $1.2 million in fiscal year 2020, $0.9 million in fiscal year 2021, $0.6 million in fiscal year 2022 and $0.5 million in fiscal year 2023. Catalog Costs: Transcat capitalizes the cost of each Master Catalog mailed and amortizes the cost over the respective catalog’s estimated productive life. The Company reviews response results from catalog mailings on a continuous basis, and if warranted, modifies the period over which costs are recognized. The Company amortizes the cost of each Master Catalog over an eighteen-month period and amortizes the cost of each catalog supplement over a three-month period. Total unamortized catalog costs, included as a component of prepaid expenses and other current assets on the Consolidated Balance Sheets, were $0.1 million as of March 31, 2018 and March 25, 2017. Deferred Taxes: Transcat accounts for certain income and expense items differently for financial reporting purposes than for income tax reporting purposes. Deferred taxes are provided in recognition of these temporary differences. If necessary, a valuation allowance on net deferred tax assets is provided for items for which it is more likely than not that the benefit of such items will not be realized based on an assessment of both positive and negative evidence. See Note 4 for further discussion on income taxes. Stock-Based Compensation: The Company measures the cost of services received in exchange for all equity awards granted, including stock options and restricted stock units, based on the fair market value of the award as of the grant date. The Company records compensation cost related to unvested equity awards by recognizing, on a straight-line basis, the unamortized grant date fair value over the remaining service period of each award. The Financial Accounting Standards Board (“FASB”) issued ASU 2016-09 to simplify certain aspects of the accounting for share-based payment transactions to employees. The Company elected to early adopt this ASU in the fourth quarter of fiscal year 2017. Upon adoption, excess tax benefits for share-based award activity are reflected in the statement of income as a component of the provision for income taxes. Excess tax benefits are realized benefits from tax deductions for exercised awards in excess of the deferred tax asset attributable to stock-based compensation costs for such awards. The Company did not capitalize any stock-based compensation costs as part of an asset. The Company estimates forfeiture rates based on its historical experience. During fiscal years 2018 and 2017, the Company recorded non-cash stock-based compensation cost in the amount of $1.4 million and $0.5 million, respectively, in the Consolidated Statements of Income. Revenue Recognition: Distribution sales are recorded when an order’s title and risk of loss transfers to the customer. The Company recognizes the majority of its Service revenue based upon when the calibration or other activity is performed and then shipped and/or delivered to the customer. Some Service revenue is generated from managing customers’ calibration programs in which the Company recognizes revenue in equal amounts at fixed intervals. The Company generally invoices its customers for freight, shipping, and handling charges. Provisions for customer returns are provided for in the period the related revenue is recorded based upon historical data. Vendor Rebates: Vendor rebates are generally based on specified cumulative levels of purchases and/or incremental distribution sales and are recorded as a reduction of cost of distribution sales. Purchase rebates are calculated and recorded quarterly based upon the volume of purchases with specific vendors during the quarter. Point of sale rebate programs that are based on year-over-year sales performance on a calendar year basis are recorded as earned, on a quarterly basis, based upon the expected level of annual achievement. Point of sale rebate programs that are based on year-over-year sales performance on a quarterly basis are recorded as earned in the respective quarter. The Company recorded vendor rebates of $1.4 million and $1.5 million in fiscal years 2018 and 2017, respectively as a reduction of cost of distribution sales. Cooperative Advertising Income: Transcat records cash consideration received from vendors for advertising as a reduction of cost of distribution sales. The Company recorded consideration in the amount of $1.7 million in each of the fiscal years 2018 and 2017. Advertising Costs: Advertising costs, other than catalog costs, are expensed as they are incurred and are included in Selling, Marketing and Warehouse Expenses in the Consolidated Statements of Income. Advertising costs were approximately $0.8 million and $1.2 million in fiscal years 2018 and 2017, respectively. Shipping and Handling Costs: Freight expense and direct shipping costs are included in the cost of revenue. These costs totaled approximately $2.5 million and $2.2 million in fiscal years 2018 and 2017, respectively. Direct handling costs, the majority of which represent direct compensation of employees who pick, pack, and prepare merchandise for shipment to customers, are reflected in selling, marketing and warehouse expenses. Direct handling costs were $0.9 million in each of the fiscal years 2018 and 2017. Foreign Currency Translation and Transactions: The accounts of Transcat Canada Inc. are maintained in the local currency and have been translated to U.S. dollars. Accordingly, the amounts representing assets and liabilities have been translated at the period-end rates of exchange, and related revenue and expense accounts have been translated at an average rate of exchange during the period. Gains and losses arising from translation of Transcat Canada Inc.’s financial statements into U.S. dollars are recorded directly to the accumulated other comprehensive income (loss) component of shareholders’ equity. Transcat records foreign currency gains and losses on business transactions denominated in foreign currency. The net foreign currency loss was less than $0.1 million in each of the fiscal years 2018 and 2017. The Company continually utilizes short-term foreign exchange forward contracts to reduce the risk that its earnings would be adversely affected by changes in currency exchange rates. The Company does not apply hedge accounting and therefore the net change in the fair value of the contracts, which totaled a net loss of less than $0.1 million in fiscal year 2018 and a net gain of less than $0.1 million in 2017, was recognized as a component of other expense in the Consolidated Statements of Income. The change in the fair value of the contracts is offset by the change in fair value on the underlying accounts receivables denominated in Canadian dollars being hedged. On March 31, 2018, the Company had a foreign exchange contract, which matured in April 2018, outstanding in the notional amount of $5.1 million. This contract was subsequently renewed and remains in place. The Company does not use hedging arrangements for speculative purposes. Other Comprehensive Income: Comprehensive income is composed of currency translation adjustments, unrecognized prior service costs, net of tax, and unrealized gains or losses on other assets, net of tax. At March 31, 2018, accumulated other comprehensive income consisted of cumulative currency translation losses of $0.1 million, unrecognized prior service costs, net of tax, of $0.2 million and an unrealized gain on other assets, net of tax, of less than $0.1 million. At March 25, 2017, accumulated other comprehensive income consisted of cumulative currency translation losses of $0.3 million, unrecognized prior service costs, net of tax, of $0.1 million and an unrealized gain on other assets, net of tax, of less than $0.1 million. Earnings per Share: Basic earnings per share of common stock are computed based on the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share of common stock reflect the assumed conversion of stock options and unvested restricted stock units using the treasury stock method in periods in which they have a dilutive effect. In computing the per share effect of assumed conversion, proceeds received from the exercise of options and unvested restricted stock units and the related tax benefits are considered to have been used to purchase shares of common stock at the average market prices during the period, and the resulting net additional shares of common stock are included in the calculation of average shares of common stock outstanding. For fiscal years 2018 and 2017, the net additional common stock equivalents had a $0.02 and $0.01 per share effect on the calculation of dilutive earnings per share, respectively. The average shares outstanding used to compute basic and diluted earnings per share are as follows: For the Years Ended March 31, March 25, 2018 2017 Average Shares Outstanding – Basic 7,124 6,994 Effect of Dilutive Common Stock Equivalents 179 117 Average Shares Outstanding – Diluted 7,303 7,111 Anti-dilutive Common Stock Equivalents - - Shareholders’ Equity: During each of fiscal years 2018 and 2017, the Company repurchased and subsequently retired less than 0.1 million shares of its common stock. Under letter agreements approved by the Board of Directors, the Company redeemed certain stock options that were previously issued pursuant to the shareholder approved Transcat, Inc. 2003 Incentive Plan, as Amended and Restated (the “2003 Plan”) for $0.1 million in fiscal year 2018 and $1.0 million in fiscal year 2017. Recently Issued Accounting Pronouncements: Revenue Recognition In May 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers, which establishes principles to report useful information to financial statements users about the nature, timing and uncertainty of revenue from contracts with customers. ASU No. 2014-09 along with various related amendments comprise Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers, and provide guidance that is applicable to all contracts with customers regardless of industry-specific or transaction-specific fact patterns. The new standard and its related updates are effective for the Company on April 1, 2018. On the effective date, the Company will apply the new guidance using the modified retrospective approach to each prior reporting period presented. The cumulative effect adjustment upon adoption of the ASU in the first quarter of fiscal 2019 is expected to be immaterial. Overall, the new standard will not have a material impact on the results of the Company's operations or consolidated statements of financial position, but will change the presentation and timing of certain revenue transactions. The Company's evaluation of the new standards included a review of certain vendor arrangements to determine whether the Company acts as principal or agent in such arrangements. The Company does not expect material changes in gross versus net presentation as a result of the adoption of the new standard. There are enhanced disclosure requirements under this standard. Leases In February 2016, the FASB issued ASU No. 2016-02, Leases (ASC Topic 842), which requires lessees to recognize substantially all leases on-balance sheet and disclose key information about leasing arrangements. The new standard establishes a right of use ("ROU") model that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. The new standard is effective for annual and interim periods beginning after December 15, 2018. ASU 2016-02 requires entities to adopt a modified retrospective transition method for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the consolidated financial statements. The Company continues to evaluate the impact that adopting ASU 2016-02 will have on its financial statements, but the most significant impact will be to increase assets and liabilities on the consolidated balance sheet by the present value of the Company’s leasing obligations, which are primarily related to facility and vehicle leases, as well as additional disclosures required. Retirement Plan In March 2017, the FASB issued ASU 2017-07 to Topic 715, Compensation—Retirement Benefits. This ASU provides new guidance as part of FASB’s effort to improve employers’ financial reporting for defined benefit plans. This new guidance changes where on the income statement employers that sponsor defined benefit pension and/or other postretirement benefit plans present the net periodic benefit cost. Under the new guidance, employers will present the service cost component of the net periodic benefit cost in the same income statement line item(s) as other employee compensation costs arising from services rendered during the period. In addition, only the service cost component will be eligible for capitalization in assets. Employers will present the other components separately from the line item(s) that includes the service cost and outside of any subtotal of operating income, if one is presented. Employers will have to disclose the line(s) used to present the other components of net periodic benefit cost, if the components are not presented separately in the income statement. This ASU is effective for fiscal years beginning after December 15, 2017, and interim periods within those years with early adoption permitted. For fiscal years 2018 and 2017, the net periodic benefit cost was approximately $0.1 million. The Company does not expect adoption of this ASU to have a material impact on its Consolidated Financial Statements. Goodwill In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment (Topic 350). This ASU simplifies the accounting for goodwill impairment for all entities by requiring impairment charges to be based on the first step in today’s two-step impairment test under ASC 350. Under the new guidance, if the carrying amount of a reporting unit’s goodwill exceeds its fair value, an entity will record an impairment charge based on that difference. The impairment charge will be limited to the amount of goodwill allocated to that reporting unit. This ASU simplifies today’s requirement to calculate a goodwill impairment charge using a separately calculated implied fair value. This ASU is effective for annual and interim reporting periods beginning after December 15, 2019. Early adoption is permitted beginning January 1, 2017. The Company does not expect adoption of this ASU to have a material impact on its Consolidated Financial Statements. Comprehensive Income In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This ASU allows for stranded tax effects in accumulated other comprehensive income resulting from H.R. 1, originally known as the “Tax Cuts and Jobs Act,” to be reclassified to retained earnings. The new standard is effective for all entities for fiscal years beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the impact of adopting the new standard and does not expect the new standard to have a material impact on the Company’s financial position or results of operations. Reclassification of Amounts: Certain reclassifications of financial information for prior fiscal years have been made to conform to the presentation for the current fiscal year. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 2 – PROPERTY AND EQUIPMENT Property and equipment consists of: March 31, March 25, 2018 2017 Machinery, Equipment and Software $ 36,460 $ 32,733 Rental Equipment 5,709 4,461 Furniture and Fixtures 2,473 2,405 Leasehold Improvements 2,597 2,491 Buildings and Land 500 500 Total Property and Equipment 47,739 42,590 Less: Accumulated Depreciation and Amortization (30,648 ) (27,022 ) Total Property and Equipment, net $ 17,091 $ 15,568 Total depreciation and amortization expense relating to property and equipment amounted to $3.8 million and $3.3 million in fiscal years 2018 and 2017, respectively. |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | NOTE 3 – LONG-TERM DEBT Description: On October 30, 2017, the Company entered into an Amended and Restated Credit Agreement (the “2017 Agreement”), which amended and restated our prior credit facility agreement. The 2017 Agreement extended the term of the Company’s $30.0 million revolving credit facility (the “Revolving Credit Facility”) to October 29, 2021. As of March 31, 2018, $30.0 million was available under the Revolving Credit Facility, of which $8.7 million was outstanding and included in long-term debt on the Consolidated Balance Sheet. The 2017 Agreement also increased the amount of the Company’s outstanding term loan to $15.0 million (the “2017 Term Loan”), replacing the previous term loan. The excess funds of the 2017 Term Loan over the previous term loan were used to repay amounts outstanding under the Revolving Credit Facility. As of March 31, 2018, $14.1 million was outstanding on the 2017 Term Loan, of which $2.1 million was included in current liabilities on the Consolidated Balance Sheet with the remainder included in long-term debt. The 2017 Term Loan requires principal repayments of $0.2 million per month plus interest through September 2022 with a $4.3 million repayment required on October 29, 2022. Under the 2017 Agreement, borrowings that may be used for business acquisitions are limited to $20.0 million per fiscal year. During the first nine months of fiscal year 2018, no borrowings were used for business acquisitions. Previously, on March 31, 2016, the Company entered into Amendment 3 (“Amendment 3”) to the prior credit agreement. Under Amendment 3, borrowings that could be used for business acquisitions were limited to $15.0 million in fiscal years 2018 and 2019. Amendment 3 also provided the Company with a $10.0 million term loan. The term loan required principal repayments of $0.1 million per month plus interest. Total annual repayment amounts of $1.4 million were required in fiscal years 2017 through 2021 with a $3.0 million repayment required in fiscal year 2022. Amendment 3 also increased the allowable leverage ratio to a maximum of 3.0 from 2.75. As described above, in the third quarter of fiscal year 2018, we entered into the 2017 Agreement that amended and restated the prior credit agreement, including Amendment 3. The allowable leverage ratio under the 2017 Agreement remains at a maximum multiple of 3.0 of total debt outstanding compared to earnings before income taxes, depreciation and amortization, and non-cash stock-based compensation expense for the preceding four consecutive fiscal quarters. Interest and Other Costs: Interest on the Revolving Credit Facility and term loan accrues, at Transcat’s election, at either the variable one-month London Interbank Offered Rate (“LIBOR”) or a fixed rate for a designated period at the LIBOR corresponding to such period, in each case, plus a margin. Commitment fees accrue based on the average daily amount of unused credit available on the Revolving Credit Facility. Interest rate margins and commitment fees are determined on a quarterly basis based upon the Company’s calculated leverage ratio, as defined in the 2017 Agreement. The one-month LIBOR as of March 31, 2018 was 1.9%. The Company’s interest rate for fiscal year 2018 ranged from 3.0% to 3.6%. Covenants: The Credit Agreement has certain covenants with which the Company has to comply, including a fixed charge coverage ratio covenant and a leverage ratio covenant. The Company was in compliance with all loan covenants and requirements during fiscal years 2018 and 2017. Other Terms: The Company has pledged all of its U.S. tangible and intangible personal property, the equity interests of its U.S.-based subsidiaries, and a majority of the common stock of Transcat Canada Inc. as collateral security for the loans made under the Revolving Credit Facility. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 4 – INCOME TAXES On December 22, 2017, the Tax Cuts and Jobs Act (H.R. 1), the tax reform bill (the "Tax Act"), was signed into law. The Tax Act includes numerous changes to existing tax law, including a permanent reduction in the federal corporate income tax rate from 35% to 21%. Since the Company is a fiscal year taxpayer, the lower corporate income tax rate will be phased in and the U.S. federal tax rate recorded is a blended rate of the old rates and the new rates for fiscal year 2018. The Company has concluded that the Tax Act will cause the Company’s U.S. deferred tax assets and liabilities to be revalued. Deferred income taxes result from temporary differences between the tax basis of assets and liabilities and their reported basis in the financial statements that will result in taxable or deductible amounts in future years. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in years in which those temporary differences are expected to be recovered or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are revalued and any change is adjusted through the provision for income tax expense in the reporting period of the enactment. In addition, the Tax Act provides for a one-time “deemed repatriation” of accumulated foreign earnings. The Company has estimated the additional provision for income tax expense on the repatriation to be less than $0.1 million. The Company will pay any amounts owed over eight years. On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. The Company has recognized the provisional tax impacts related to the revaluation of the deferred tax assets and liabilities and other applicable provisions of the Tax Act and included these amounts in its consolidated financial statements for the year ended March 31, 2018. As of March 31, 2018, the Company has completed the majority of the accounting for the tax effects of the Tax Act. If revisions are needed as new information becomes available, the final determination of the deemed revaluation of our deferred tax assets and liabilities or other applicable provisions of the Tax Act will be completed as additional information becomes available, but no later than one year from the enactment of the Tax Act. Transcat’s income before income taxes on the Consolidated Statements of Income is as follows: FY 2018 FY 2017 United States $ 6,995 $ 6,770 Foreign 953 394 Total $ 7,948 $ 7,164 The provision for income taxes for fiscal years 2018 and 2017 is as follows: FY 2018 FY 2017 Current Tax Provision: Federal $ 952 $ 1,945 State 201 344 Foreign 340 279 1,493 2,568 Deferred Tax (Benefit) Provision: Federal $ 487 $ 194 State 156 26 Foreign (110 ) (146 ) 533 74 Provision for Income Taxes $ 2,026 $ 2,642 A reconciliation of the income tax provision computed by applying the statutory U.S. federal income tax rate and the income tax provision reflected in the Consolidated Statements of Income is as follows: FY 2018 FY 2017 Federal Income Tax at Statutory Rate $ 2,448 $ 2,436 State Income Taxes, net of federal benefit 295 284 Federal, State and Foreign Research & Development Credits (107 ) 118 Impact of Tax Act (535 ) - Other, net (75 ) (196 ) Total $ 2,026 $ 2,642 The components of net deferred tax assets (liabilities) are as follows: March 31, March 25, 2018 2017 Deferred Tax Assets: Accrued Liabilities $ 247 $ 338 Performance-Based Stock Award Grants 337 337 Inventory Reserves 82 213 Non-Qualified Deferred Compensation Plan 172 273 Post-Retirement Health Care Plans 294 425 Stock-Based Compensation 199 717 Capitalized Inventory Costs 122 140 Net Operating Loss Carryforward - 12 Other 233 277 Total Deferred Tax Assets $ 1,686 $ 2,732 Deferred Tax Liabilities: Goodwill and Intangible Assets $ (1,085 ) $ (1,486 ) Depreciation (2,264 ) (2,335 ) Other (46 ) (45 ) Total Deferred Tax Liabilities (3,395 ) (3,866 ) Net Deferred Tax Liabilities $ (1,709 ) $ (1,134 ) Deferred U.S. income taxes have not been recorded for basis differences related to the investments in the Company’s foreign subsidiary. The Company considers undistributed earnings, if any, as permanently reinvested in the subsidiary. The determination of a deferred tax liability on unremitted earnings would not be practicable because such liability, if any, would depend on circumstances existing if and when remittance occurs. The Company files income tax returns in the U.S. federal jurisdiction, various states and Canada. The Company is no longer subject to examination by U.S. federal income tax authorities for fiscal years 2014 and prior, by state tax authorities for fiscal years 2012 and prior, and by Canadian tax authorities for fiscal years 2010 and prior. There are no tax years currently under examination by U.S. federal, state or Canadian tax authorities. During fiscal years 2018 and 2017, there were no uncertain tax positions. No interest or penalties related to uncertain tax positions were recognized in fiscal years 2018 and 2017 or were accrued at March 31, 2018 and March 25, 2017. The Company’s effective tax rate for fiscal years 2018 and 2017 was 25.5% and 31.3%, respectively. Its tax rate is affected by recurring items, such as tax rates in foreign jurisdictions and the relative amounts of income the Company earns in those jurisdictions, which the Company expects to be fairly consistent in the near term. It is also affected by discrete items that may occur in any given year but are not consistent from year to year. The Company expects to receive certain federal, state and Canadian tax credits in future years. As such, it expects its effective tax rate in fiscal year 2019 to be between 25.0% and 27.0%. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | NOTE 5 – EMPLOYEE BENEFIT PLANS Defined Contribution Plan. All of Transcat’s U.S. based employees are eligible to participate in a defined contribution plan, the Long-Term Savings and Deferred Profit Sharing Plan (the “Plan”), provided they meet certain qualifications. Currently, the Company matches 50% of the first 6% of pay that eligible employees contribute to the Plan. In the long-term savings portion of the Plan (the “401K Plan”), plan participants are entitled to a distribution of their vested account balance upon termination of employment or retirement. Plan participants are fully vested in their contributions while Company contributions are fully vested after three years of service. The Company’s matching contributions to the 401K Plan were $0.7 million in each of fiscal years 2018 and 2017, respectively. In the deferred profit sharing portion of the Plan, Company contributions are made at the discretion of the board of directors. The Company made no profit sharing contributions in fiscal years 2018 and 2017. Employee Stock Purchase Plan. Non-Qualified Deferred Compensation Plan. The Company has available a non-qualified deferred compensation plan (the “NQDC Plan”) for directors and officers. Participants are fully vested in their contributions. At its discretion, the Company may elect to match employee contributions, subject to legal limitations in conjunction with the 401K Plan, which fully vest after three years of service. During fiscal years 2018 and 2017, the Company did not match any employee contributions. Participant accounts are adjusted to reflect performance, whether positive or negative, of selected investment options chosen by each participant during the deferral period. In the event of bankruptcy, the assets of the NQDC Plan are available to satisfy the claims of the Company’s general creditors. The liability for compensation deferred under the NQDC Plan was $0.7 million as of March 31, 2018 and March 25, 2017 and is included as a component of other liabilities (non-current) on the Consolidated Balance Sheets. Post-retirement Health Care Plans. The Company has a defined benefit post-retirement health care plan which provides long-term care insurance benefits, medical and dental insurance benefits and medical premium reimbursement benefits to eligible retired corporate officers and their eligible spouses (the “Officer Plan”). The change in the postretirement benefit obligation is as follows: FY 2018 FY 2017 Post-retirement benefit obligation, at beginning of fiscal year $ 1,105 $ 1,006 Service cost 34 30 Interest cost 44 38 Benefits paid (72 ) (79 ) Actuarial loss 42 110 Post-retirement benefit obligation, at end of fiscal year 1,153 1,105 Fair value of plan assets, at end of fiscal year - - Funded status, at end of fiscal year $ (1,153 ) $ (1,105 ) Accumulated post-retirement benefit obligation, at end of fiscal year $ 1,153 $ 1,105 The accumulated postretirement benefit obligation is included as a component of other liabilities (non-current) in the Consolidated Balance Sheets. The components of net periodic postretirement benefit cost and other amounts recognized in other comprehensive income are as follows: FY 2018 FY 2017 Net periodic postretirement benefit cost: Service cost $ 34 $ 30 Interest cost 44 38 Amortization of prior service cost 1 25 79 93 Benefit obligations recognized in other comprehensive income: Amortization of prior service cost (1 ) (25 ) Net gain (loss) 4 95 3 70 Total recognized in net periodic benefit cost and other comprehensive income $ 82 $ 163 Amount recognized in accumulated other comprehensive income, at end of fiscal year: Unrecognized prior service cost $ 235 $ 233 The prior service cost is amortized over the average remaining life expectancy of active participants in the Officer Plan. The estimated prior service cost that will be amortized from accumulated other comprehensive income into net periodic postretirement benefit cost during fiscal year 2019 is less than $0.1 million. The postretirement benefit obligation was computed by an independent third-party actuary. Assumptions used to determine the postretirement benefit obligation and the net periodic postretirement benefit cost were as follows: March 31, March 25, 2018 2017 Weighted average discount rate 4.0 % 4.1 % Medical care cost trend rate: Trend rate assumed for next year 8.0 % 8.0 % Ultimate trend rate 6.0 % 6.0 % Year that rate reaches ultimate trend rate 2024 2023 Dental care cost trend rate: Trend rate assumed for next year and remaining at that level thereafter 5.0 % 5.0 % Benefit payments are funded by the Company as needed. Payments toward the cost of a retiree’s medical and dental coverage are initially determined as a percentage of a base coverage plan in the year of retirement and are limited to increase at a rate of no more than 50% of the annual increase in medical and dental costs, as defined in the plan document. The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid as follows: Fiscal Year Amount 2019 $ 102 2020 103 2021 108 2022 112 2023 80 Thereafter 648 Increasing the assumed health care cost trend rate by one percentage point would increase the accumulated postretirement benefit obligation and the annual net periodic postretirement benefit cost by $0.1 million. A one percentage point decrease in the healthcare cost trend would decrease the accumulated postretirement benefit obligation and the annual net periodic postretirement benefit cost by $0.1 million. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | NOTE 6 – STOCK-BASED COMPENSATION The 2003 Plan provides for, among other awards, grants of restricted stock units and stock options to directors, officers and key employees at the fair market value at the date of grant. At March 31, 2018, 1.1 million restricted stock units or stock options were available for future grant under the 2003 Plan. Restricted Stock: The Company grants performance-based restricted stock units as a primary component of executive compensation. The units generally vest following the third fiscal year from the date of grant subject to certain cumulative diluted earnings per share growth targets over the eligible period. Compensation cost ultimately recognized for performance-based restricted stock units will equal the grant date fair market value of the unit that coincides with the actual outcome of the performance conditions. On an interim basis, the Company records compensation cost based on the estimated level of achievement of the performance conditions. The following table summarizes the performance-based restricted stock units vested and shares issued during fiscal years 2017 and 2018: Grant Total Date Number Number Fair Target of Date Date Measurement of Units Value Level Shares Shares Granted Period Granted Per Unit Achieved Issued Issued April 2013 April 2013 - March 2016 99 $ 6.17 50% 50 May 2016 April 2014 April 2014 - March 2017 51 $ 9.28 50% 25 May 2017 The following table summarizes the non-vested performance-based restricted stock units outstanding as of March 31, 2018: Total Grant Date Estimated Number Fair Level of Date Measurement of Units Value Achievement at Granted Period Granted Per Unit March 31, 2018 April 2015 April 2015 - March 2018 63 $ 9.59 50% of target level April 2016 April 2016 - March 2019 84 $ 10.13 125% of target level April 2017 April 2017 – March 2020 77 $ 12.90 100% of target level June 2017 July 2017 – June 2020 3 $ 12.00 Time Vested Total expense relating to performance-based restricted stock units, based on grant date fair value and the achievement criteria, was $0.8 million and $0.3 million in fiscal years 2018 and 2017, respectively. Unearned compensation totaled $1.1 million as of March 31, 2018. Stock Options: Options vest either immediately or over a period of up to four years using a straight-line basis, and expire either five years or ten years from the date of grant. The expense relating to options is recognized on a straight-line basis over the requisite service period for the entire award. During fiscal year 2018, the Company’s Board of Directors granted stock awards of 165,000 shares of common stock under the 2003 Plan to the Company’s executive management team. These awards were immediately vested. During fiscal year 2017, no stock options were awarded. The expense related to these stock awards was $0.4 million and $0.1 million during fiscal year 2018 and 2017, respectively. The following table summarizes the Company’s options for fiscal years 2018 and 2017: Weighted Weighted Average Average Number Exercise Remaining Aggregate of Price Per Contractual Intrinsic Shares Share Term (in Years) Value Outstanding as of March 26, 2016 494 $ 7.03 Exercised (59 ) 7.00 Forfeited (5 ) 8.95 Redeemed (188 ) 6.40 Outstanding as of March 25, 2017 242 7.48 Granted 165 12.00 Exercised (97 ) 7.24 Forfeited (17 ) 7.65 Redeemed (20 ) 7.72 Outstanding as of March 31, 2018 272 10.27 5 $ 1,464 Exercisable as of March 31, 2018 272 $ 10.27 5 $ 1,464 The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on the last trading day of fiscal year 2018 and the exercise price, multiplied by the number of in-the-money stock options) that would have been received by the option holders had all holders exercised their options on March 31, 2018. The amount of aggregate intrinsic value will change based on the fair market value of the Company’s stock. Total expense relating to stock options was $0.4 million during fiscal year 2018 and $0.1 million during fiscal year 2017. There was no unrecognized compensation cost related to non-vested stock options as of March 31, 2018. The aggregate intrinsic value of stock options exercised in fiscal years 2018 and 2017 was $0.8 million and $0.3 million, respectively. Cash received from the exercise of options in fiscal years 2018 and 2017 was $0.7 million and $0.4 million, respectively. |
SEGMENT AND GEOGRAPHIC DATA
SEGMENT AND GEOGRAPHIC DATA | 12 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
SEGMENT AND GEOGRAPHIC DATA | NOTE 7 – SEGMENT AND GEOGRAPHIC DATA Transcat has two reportable segments: Distribution and Service. The accounting policies of the reportable segments are the same as those described above in Note 1 to the Consolidated Financial Statements. The Company has no inter-segment sales. The following table presents segment and geographic data for fiscal years 2018 and 2017: FY 2018 FY 2017 Revenue: Service $ 77,445 $ 71,103 Distribution 77,696 72,795 Total 155,141 Gross Profit: Service 19,922 19,039 Distribution 17,519 15,931 Total 37,441 34,970 Operating Expenses: Service (1) 14,764 14,270 Distribution (1) 13,651 12,766 Total 28,415 27,036 Operating Income: Service 5,158 4,769 Distribution 3,868 3,165 Total 9,026 7,934 Unallocated Amounts: Interest and Other Expense, net 1,078 770 Provision for Income Taxes 2,026 2,642 Total 3,104 3,412 Net Income $ 5,922 $ 4,522 Total Assets: Service $ 53,032 $ 51,756 Distribution 40,652 36,812 Unallocated 3,138 3,529 Total $ 96,822 $ 92,097 Depreciation and Amortization (2): Service $ 4,397 $ 4,660 Distribution 1,594 1,524 Total $ 5,991 $ 6,184 Capital Expenditures: Service $ 3,772 $ 2,662 Distribution 2,110 2,588 Total $ 5,882 $ 5,250 Geographic Data: Revenues to Unaffiliated Customers (3): United States (4) $ 139,456 $ 129,732 Canada 13,757 12,432 Other International 1,928 1,734 Total $ 155,141 $ 143,898 Property and Equipment: United States (4) $ 15,967 $ 14,550 Canada 1,124 1,018 Total $ 17,091 $ 15,568 (1) Operating expense allocations between segments are based on actual amounts, a percentage of revenues, headcount, and management’s estimates. (2) Including amortization of catalog costs and intangible assets. (3) Revenues are attributed to the countries based on the destination of a product shipment or the location where service is rendered. (4) United States includes Puerto Rico. |
COMMITMENTS
COMMITMENTS | 12 Months Ended |
Mar. 31, 2018 | |
Leases, Operating [Abstract] | |
COMMITMENTS | NOTE 8 – COMMITMENTS Leases: Transcat leases facilities, equipment, and vehicles under various non-cancelable operating leases. Total rental expense was approximately $3.1 million and $3.0 million in fiscal years 2018 and 2017, respectively. The minimum future annual rental payments under the non-cancelable leases at March 31, 2018 are as follows (in millions): Fiscal Year 2019 $ 2.1 2020 1.4 2021 1.0 2022 0.7 2023 0.5 Thereafter 2.6 Total minimum lease payments $ 8.3 Effective April 2018, the Company has term loan payments due at a monthly amount of $0.2 million plus interest. These amounts are not reflected in the table above. |
BUSINESS ACQUISITIONS
BUSINESS ACQUISITIONS | 12 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
BUSINESS ACQUISITIONS | NOTE 9 – BUSINESS ACQUISITIONS There were no acquisitions during fiscal year 2018. During fiscal year 2017, Transcat completed the following business acquisition: ● On April 1, 2016, acquired substantially all of the assets of Excalibur Engineering, Inc. (“Excalibur”). Headquartered in Irvine, California, Excalibur is a provider of calibration services, new and used test equipment, and product rentals. The acquisition was accounted for using the acquisition method of accounting. Goodwill, calculated as the excess of the purchase price paid over the fair value of the underlying net assets of the businesses acquired, generally represents expected future economic benefits arising from the reputation of an acquired business, the assembled workforce, expected synergies and other assets acquired that could not be individually identified and separately recognized. Intangible assets, namely customer bases and covenants not to compete, represent an allocation of a portion of the purchase price to identifiable intangible assets of the acquired businesses. Intangible assets are being amortized for financial reporting purposes on an accelerated basis over an estimated useful life of up to 10 years. The total purchase price paid for the business acquired in fiscal year 2017 was approximately $7.6 million, net of less than $0.1 million cash acquired. The following is a summary of the purchase price allocation, in the aggregate, to the fair value, based on Level 3 inputs, of assets and liabilities acquired during each period presented: FY 2017 Goodwill $ 3,455 Intangible Assets – Customer Base 1,990 Intangible Assets – Covenants Not to Compete 100 Deferred Tax Liability - 5,545 Plus: Current Assets 973 Non-Current Assets 1,652 Less: Current Liabilities (606 ) Non-Current Liabilities - Total Purchase Price $ 7,564 The business acquisition completed during fiscal year 2017 included holdback provisions for contingent consideration and other holdback amounts, as defined by the purchase agreement. The Company accrues contingent consideration, if any, based on its estimated fair value at the date of acquisition, in addition to other amounts relating to the holdback provisions. Contingent consideration of $0.3 million and other holdback amounts of $2.7 million were paid during fiscal year 2017. As of March 31, 2018 and March 25, 2017, no contingent consideration or other holdback amounts were unpaid and included on the Consolidated Balance Sheets. No acquisition costs were incurred in fiscal year 2018. During fiscal year 2017, acquisition costs of $0.1 million were incurred and recorded as general and administrative expenses in the Consolidated Statement of Income. The results of the acquired business are included in Transcat’s consolidated operating results as of the date the business was acquired. The following unaudited pro forma information presents the Company’s results of operations as if the acquisition had occurred at the beginning of the respective fiscal year. The pro forma results do not purport to represent what the Company’s results of operations actually would have been if the transaction had occurred at the beginning of the period presented or what the Company’s operating results will be in future periods. March 25, 2017 Total Revenue $ 144,048 Net Income 4,525 Basic Earnings Per Share 0.65 Diluted Earnings Per Share 0.64 |
QUARTERLY DATA (Unaudited)
QUARTERLY DATA (Unaudited) | 12 Months Ended |
Mar. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY DATA (Unaudited) | NOTE 10 – QUARTERLY DATA (Unaudited) The following table presents a summary of certain unaudited quarterly financial data for fiscal years 2018 and 2017: Basic Diluted Total Gross Net Earnings Earnings Revenues Profit Income Per Share (a) Per Share (a) FY 2018: Fourth Quarter $ 42,452 $ 10,895 $ 2,454 $ 0.34 $ 0.33 Third Quarter 40,483 9,701 1,831 0.26 0.25 Second Quarter 35,927 8,154 781 0.11 0.11 First Quarter 36,279 8,691 856 0.12 0.12 FY 2017: Fourth Quarter $ 38,453 $ 9,782 $ 1,429 $ 0.20 $ 0.20 Third Quarter 37,813 8,915 1,271 0.18 0.18 Second Quarter 34,485 8,027 916 0.13 0.13 First Quarter 33,147 8,246 906 0.13 0.13 (a) Earnings per share calculations for each quarter include the weighted average effect of stock issuances and common stock equivalents for the quarter; therefore the sum of quarterly earnings per share amounts may not equal full-year earnings per share amounts, which reflect the weighted average effect on an annual basis. Diluted earnings per share calculations for each quarter include the effect of stock options and non-vested restricted stock units, when dilutive to the quarter. In addition, basic earnings per share and diluted earnings per share may not add due to rounding. |
GENERAL (Policies)
GENERAL (Policies) | 12 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business: Transcat, Inc. (“Transcat” or the “Company”) is a leading provider of accredited calibration and laboratory instrument services and a value-added distributor of professional grade handheld test, measurement and control instrumentation. The Company is focused on providing services and products to highly regulated industries, particularly the life science industry, which includes pharmaceutical, biotechnology, medical device and other FDA-regulated businesses. Additional industries served include industrial manufacturing; energy and utilities, including oil and gas and alternative energy; FAA-regulated businesses, including aerospace and defense; and other industries that require accuracy in their processes, confirmation of the capabilities of their equipment, and for which the risk of failure is very costly. |
Principles of Consolidation | Principles of Consolidation: The consolidated financial statements of Transcat include the accounts of Transcat and the Company’s wholly-owned subsidiaries, Transcat Canada Inc., United Scale & Engineering Corporation, WTT Real Estate Acquisition, LLC and Anmar Metrology, Inc. All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates: The preparation of Transcat’s Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States (“GAAP”) requires that the Company make estimates and assumptions that affect the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions are used for, but not limited to, allowance for doubtful accounts and returns, inventory reserves, estimated levels of achievement for performance-based restricted stock units, fair value of stock options, depreciable lives of fixed assets, estimated lives of major catalogs and intangible assets, and the valuation of assets acquired and liabilities assumed in business acquisitions. Future events and their effects cannot be predicted with certainty; accordingly, accounting estimates require the exercise of judgment. The accounting estimates used in the preparation of the Consolidated Financial Statements will change as new events occur, as more experience is acquired, as additional information is obtained and as the operating environment changes. Actual results could differ from those estimates. Such changes and refinements in estimation methodologies are reflected in reported results of operations in the period in which the changes are made and, if material, their effects are disclosed in the Notes to the Consolidated Financial Statements. |
Fiscal Year | Fiscal Year: Transcat operates on a 52/53 week fiscal year, ending the last Saturday in March. In a 52-week fiscal year, each of the four quarters is a 13-week period. In a 53-week fiscal year, the last quarter is a 14-week period. The fiscal year ended March 31, 2018 (“fiscal year 2018”) consisted of 53 weeks while the fiscal year ended March 25, 2017 (“fiscal year 2017”) consisted of 52 weeks. |
Accounts Receivable | Accounts Receivable: Accounts receivable represent amounts due from customers in the ordinary course of business. These amounts are recorded net of the allowance for doubtful accounts and returns in the Consolidated Balance Sheets. The allowance for doubtful accounts is based upon the expected collectability of accounts receivable. Transcat applies a specific formula to its accounts receivable aging, which may be adjusted on a specific account basis where the formula may not appropriately reserve for loss exposure. After all attempts to collect a receivable have failed, the receivable is written-off against the allowance for doubtful accounts. The returns reserve is calculated based upon the historical rate of returns applied to revenues over a specific timeframe. The returns reserve will increase or decrease as a result of changes in the level of revenue and/or the historical rate of returns. |
Inventory | Inventory: Inventory consists of products purchased for resale and is valued at the lower of cost or net realizable value. Costs are determined using the average cost method of inventory valuation. Inventory is reduced by a reserve for items not saleable at or above cost by applying a specific loss factor, based on historical experience, to specific categories of inventory. The Company evaluates the adequacy of the reserve on a quarterly basis. At March 31, 2018 and March 25, 2017, the Company had reserves for inventory losses totaling $0.4 million and $0.6 million, respectively. |
Property and Equipment, Depreciation and Amortization | Property and Equipment, Depreciation and Amortization: Property and equipment are stated at cost. Depreciation and amortization are computed primarily under the straight-line method over the following estimated useful lives: Years Machinery, Equipment and Software 2 – 15 Rental Equipment 5 – 8 Furniture and Fixtures 3 – 10 Leasehold Improvements 2 – 10 Buildings 39 Property and equipment determined to have no value are written off at their then remaining net book value. Transcat capitalizes certain costs incurred in the procurement and development of computer software used for internal purposes. Leasehold improvements are amortized under the straight-line method over the estimated useful life or the lease term, whichever is shorter. Maintenance and repairs are expensed as incurred. See Note 2 for further information on property and equipment. |
Business Acquisitions | Business Acquisitions: The Company applies the acquisition method of accounting for business acquisitions. Under the acquisition method, the purchase price of an acquisition is assigned to the underlying tangible and intangible assets acquired and liabilities assumed based on their respective fair values at the date of acquisition. The Company uses a valuation hierarchy, as further described under Fair Value of Financial Instruments below, and typically utilizes independent third-party valuation specialists to determine the fair values used in this allocation. Purchase price allocations are subject to revision within the measurement period, not to exceed one year from the date of acquisition. Costs to acquire a business may include, but are not limited to, fees for accounting, legal and valuation services, and are expensed as incurred in the Consolidated Statements of Income. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets: Goodwill represents the excess of the purchase price over the fair values of the underlying net assets of an acquired business. Intangible assets, namely customer base and covenants not to compete, represent an allocation of purchase price to identifiable intangible assets of an acquired business. The Company estimates the fair value of its reporting units using the fair market value measurement requirement. The Company tests goodwill for impairment on an annual basis, or immediately if conditions indicate that such impairment could exist. Other intangible assets are evaluated for impairment when events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. The Company determined that no impairment was indicated as of March 31, 2018 and March 25, 2017. A summary of changes in the Company’s goodwill and intangible assets is as follows: Goodwill Intangible Assets Distribution Service Total Distribution Service Total Net Book Value as of March 26, 2016 $ 8,031 $ 21,081 $ 29,112 $ 124 $ 8,087 $ 8,211 Additions (see Note 9) 1,728 1,733 3,461 1,045 1,045 2,090 Amortization - - - (413 ) (2,362 ) (2,775 ) Currency Translation Adjustment - (53 ) (53 ) - (7 ) (7 ) Net Book Value as of March 25, 2017 $ 9,759 $ 22,761 $ 32,520 $ 756 $ 6,763 $ 7,519 Additions (see Note 9) - - - - - - Amortization - - - (269 ) (1,803 ) (2,072 ) Currency Translation Adjustment - 220 220 - 58 58 Net Book Value as of March 31, 2018 $ 9,759 $ 22,981 $ 32,740 $ 487 $ 5,018 $ 5,505 The intangible assets are being amortized on an accelerated basis over their estimated useful lives of up to 10 years. Amortization expense relating to intangible assets is expected to be $1.6 million in fiscal year 2019, $1.2 million in fiscal year 2020, $0.9 million in fiscal year 2021, $0.6 million in fiscal year 2022 and $0.5 million in fiscal year 2023. |
Catalog Costs | Catalog Costs: Transcat capitalizes the cost of each Master Catalog mailed and amortizes the cost over the respective catalog’s estimated productive life. The Company reviews response results from catalog mailings on a continuous basis, and if warranted, modifies the period over which costs are recognized. The Company amortizes the cost of each Master Catalog over an eighteen-month period and amortizes the cost of each catalog supplement over a three-month period. Total unamortized catalog costs, included as a component of prepaid expenses and other current assets on the Consolidated Balance Sheets, were $0.1 million as of March 31, 2018 and March 25, 2017. |
Deferred Taxes | Deferred Taxes: Transcat accounts for certain income and expense items differently for financial reporting purposes than for income tax reporting purposes. Deferred taxes are provided in recognition of these temporary differences. If necessary, a valuation allowance on net deferred tax assets is provided for items for which it is more likely than not that the benefit of such items will not be realized based on an assessment of both positive and negative evidence. See Note 4 for further discussion on income taxes. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments: Transcat has determined the fair value of debt and other financial instruments using a valuation hierarchy. The hierarchy, which prioritizes the inputs used in measuring fair value, consists of three levels. Level 1 uses observable inputs such as quoted prices in active markets; Level 2 uses inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, which is defined as unobservable inputs in which little or no market data exists, requires the Company to develop its own assumptions. The carrying amount of debt on the Consolidated Balance Sheets approximates fair value due to variable interest rate pricing, and the carrying amounts for cash, accounts receivable and accounts payable approximate fair value due to their short-term nature. Investment assets, which fund the Company’s non-qualified deferred compensation plan, consist of mutual funds and are valued based on Level 1 inputs. At each of March 31, 2018 and March 25, 2017, investment assets totaled $0.7 million and are included as a component of other assets (non-current) on the Consolidated Balance Sheets. |
Stock-Based Compensation | Stock-Based Compensation: The Company measures the cost of services received in exchange for all equity awards granted, including stock options and restricted stock units, based on the fair market value of the award as of the grant date. The Company records compensation cost related to unvested equity awards by recognizing, on a straight-line basis, the unamortized grant date fair value over the remaining service period of each award. The Financial Accounting Standards Board (“FASB”) issued ASU 2016-09 to simplify certain aspects of the accounting for share-based payment transactions to employees. The Company elected to early adopt this ASU in the fourth quarter of fiscal year 2017. Upon adoption, excess tax benefits for share-based award activity are reflected in the statement of income as a component of the provision for income taxes. Excess tax benefits are realized benefits from tax deductions for exercised awards in excess of the deferred tax asset attributable to stock-based compensation costs for such awards. The Company did not capitalize any stock-based compensation costs as part of an asset. The Company estimates forfeiture rates based on its historical experience. During fiscal years 2018 and 2017, the Company recorded non-cash stock-based compensation cost in the amount of $1.4 million and $0.5 million, respectively, in the Consolidated Statements of Income. |
Revenue Recognition | Revenue Recognition: Distribution sales are recorded when an order’s title and risk of loss transfers to the customer. The Company recognizes the majority of its Service revenue based upon when the calibration or other activity is performed and then shipped and/or delivered to the customer. Some Service revenue is generated from managing customers’ calibration programs in which the Company recognizes revenue in equal amounts at fixed intervals. The Company generally invoices its customers for freight, shipping, and handling charges. Provisions for customer returns are provided for in the period the related revenue is recorded based upon historical data. |
Vendor Rebates | Vendor Rebates: Vendor rebates are generally based on specified cumulative levels of purchases and/or incremental distribution sales and are recorded as a reduction of cost of distribution sales. Purchase rebates are calculated and recorded quarterly based upon the volume of purchases with specific vendors during the quarter. Point of sale rebate programs that are based on year-over-year sales performance on a calendar year basis are recorded as earned, on a quarterly basis, based upon the expected level of annual achievement. Point of sale rebate programs that are based on year-over-year sales performance on a quarterly basis are recorded as earned in the respective quarter. The Company recorded vendor rebates of $1.4 million and $1.5 million in fiscal years 2018 and 2017, respectively as a reduction of cost of distribution sales. |
Cooperative Advertising Income | Cooperative Advertising Income: Transcat records cash consideration received from vendors for advertising as a reduction of cost of distribution sales. The Company recorded consideration in the amount of $1.7 million in each of the fiscal years 2018 and 2017. |
Advertising Costs | Advertising Costs: Advertising costs, other than catalog costs, are expensed as they are incurred and are included in Selling, Marketing and Warehouse Expenses in the Consolidated Statements of Income. Advertising costs were approximately $0.8 million and $1.2 million in fiscal years 2018 and 2017, respectively. |
Shipping and Handling Costs | Shipping and Handling Costs: Freight expense and direct shipping costs are included in the cost of revenue. These costs totaled approximately $2.5 million and $2.2 million in fiscal years 2018 and 2017, respectively. Direct handling costs, the majority of which represent direct compensation of employees who pick, pack, and prepare merchandise for shipment to customers, are reflected in selling, marketing and warehouse expenses. Direct handling costs were $0.9 million in each of the fiscal years 2018 and 2017. |
Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions: The accounts of Transcat Canada Inc. are maintained in the local currency and have been translated to U.S. dollars. Accordingly, the amounts representing assets and liabilities have been translated at the period-end rates of exchange, and related revenue and expense accounts have been translated at an average rate of exchange during the period. Gains and losses arising from translation of Transcat Canada Inc.’s financial statements into U.S. dollars are recorded directly to the accumulated other comprehensive income (loss) component of shareholders’ equity. Transcat records foreign currency gains and losses on business transactions denominated in foreign currency. The net foreign currency loss was less than $0.1 million in each of the fiscal years 2018 and 2017. The Company continually utilizes short-term foreign exchange forward contracts to reduce the risk that its earnings would be adversely affected by changes in currency exchange rates. The Company does not apply hedge accounting and therefore the net change in the fair value of the contracts, which totaled a net loss of less than $0.1 million in fiscal year 2018 and a net gain of less than $0.1 million in 2017, was recognized as a component of other expense in the Consolidated Statements of Income. The change in the fair value of the contracts is offset by the change in fair value on the underlying accounts receivables denominated in Canadian dollars being hedged. On March 31, 2018, the Company had a foreign exchange contract, which matured in April 2018, outstanding in the notional amount of $5.1 million. This contract was subsequently renewed and remains in place. The Company does not use hedging arrangements for speculative purposes. |
Other Comprehensive Income | Other Comprehensive Income: Comprehensive income is composed of currency translation adjustments, unrecognized prior service costs, net of tax, and unrealized gains or losses on other assets, net of tax. At March 31, 2018, accumulated other comprehensive income consisted of cumulative currency translation losses of $0.1 million, unrecognized prior service costs, net of tax, of $0.2 million and an unrealized gain on other assets, net of tax, of less than $0.1 million. At March 25, 2017, accumulated other comprehensive income consisted of cumulative currency translation losses of $0.3 million, unrecognized prior service costs, net of tax, of $0.1 million and an unrealized gain on other assets, net of tax, of less than $0.1 million. |
Earnings Per Share | Earnings per Share: Basic earnings per share of common stock are computed based on the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share of common stock reflect the assumed conversion of stock options and unvested restricted stock units using the treasury stock method in periods in which they have a dilutive effect. In computing the per share effect of assumed conversion, proceeds received from the exercise of options and unvested restricted stock units and the related tax benefits are considered to have been used to purchase shares of common stock at the average market prices during the period, and the resulting net additional shares of common stock are included in the calculation of average shares of common stock outstanding. For fiscal years 2018 and 2017, the net additional common stock equivalents had a $0.02 and $0.01 per share effect on the calculation of dilutive earnings per share, respectively. The average shares outstanding used to compute basic and diluted earnings per share are as follows: For the Years Ended March 31, March 25, 2018 2017 Average Shares Outstanding – Basic 7,124 6,994 Effect of Dilutive Common Stock Equivalents 179 117 Average Shares Outstanding – Diluted 7,303 7,111 Anti-dilutive Common Stock Equivalents - - |
Shareholders' Equity | Shareholders’ Equity: During each of fiscal years 2018 and 2017, the Company repurchased and subsequently retired less than 0.1 million shares of its common stock. Under letter agreements approved by the Board of Directors, the Company redeemed certain stock options that were previously issued pursuant to the shareholder approved Transcat, Inc. 2003 Incentive Plan, as Amended and Restated (the “2003 Plan”) for $0.1 million in fiscal year 2018 and $1.0 million in fiscal year 2017. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements: Revenue Recognition In May 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers, which establishes principles to report useful information to financial statements users about the nature, timing and uncertainty of revenue from contracts with customers. ASU No. 2014-09 along with various related amendments comprise Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers, and provide guidance that is applicable to all contracts with customers regardless of industry-specific or transaction-specific fact patterns. The new standard and its related updates are effective for the Company on April 1, 2018. On the effective date, the Company will apply the new guidance using the modified retrospective approach to each prior reporting period presented. The cumulative effect adjustment upon adoption of the ASU in the first quarter of fiscal 2019 is expected to be immaterial. Overall, the new standard will not have a material impact on the results of the Company's operations or consolidated statements of financial position, but will change the presentation and timing of certain revenue transactions. The Company's evaluation of the new standards included a review of certain vendor arrangements to determine whether the Company acts as principal or agent in such arrangements. The Company does not expect material changes in gross versus net presentation as a result of the adoption of the new standard. There are enhanced disclosure requirements under this standard. Leases In February 2016, the FASB issued ASU No. 2016-02, Leases (ASC Topic 842), which requires lessees to recognize substantially all leases on-balance sheet and disclose key information about leasing arrangements. The new standard establishes a right of use ("ROU") model that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. The new standard is effective for annual and interim periods beginning after December 15, 2018. ASU 2016-02 requires entities to adopt a modified retrospective transition method for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the consolidated financial statements. The Company continues to evaluate the impact that adopting ASU 2016-02 will have on its financial statements, but the most significant impact will be to increase assets and liabilities on the consolidated balance sheet by the present value of the Company’s leasing obligations, which are primarily related to facility and vehicle leases, as well as additional disclosures required. Retirement Plan In March 2017, the FASB issued ASU 2017-07 to Topic 715, Compensation—Retirement Benefits. This ASU provides new guidance as part of FASB’s effort to improve employers’ financial reporting for defined benefit plans. This new guidance changes where on the income statement employers that sponsor defined benefit pension and/or other postretirement benefit plans present the net periodic benefit cost. Under the new guidance, employers will present the service cost component of the net periodic benefit cost in the same income statement line item(s) as other employee compensation costs arising from services rendered during the period. In addition, only the service cost component will be eligible for capitalization in assets. Employers will present the other components separately from the line item(s) that includes the service cost and outside of any subtotal of operating income, if one is presented. Employers will have to disclose the line(s) used to present the other components of net periodic benefit cost, if the components are not presented separately in the income statement. This ASU is effective for fiscal years beginning after December 15, 2017, and interim periods within those years with early adoption permitted. For fiscal years 2018 and 2017, the net periodic benefit cost was approximately $0.1 million. The Company does not expect adoption of this ASU to have a material impact on its Consolidated Financial Statements. Goodwill In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment (Topic 350). This ASU simplifies the accounting for goodwill impairment for all entities by requiring impairment charges to be based on the first step in today’s two-step impairment test under ASC 350. Under the new guidance, if the carrying amount of a reporting unit’s goodwill exceeds its fair value, an entity will record an impairment charge based on that difference. The impairment charge will be limited to the amount of goodwill allocated to that reporting unit. This ASU simplifies today’s requirement to calculate a goodwill impairment charge using a separately calculated implied fair value. This ASU is effective for annual and interim reporting periods beginning after December 15, 2019. Early adoption is permitted beginning January 1, 2017. The Company does not expect adoption of this ASU to have a material impact on its Consolidated Financial Statements. Comprehensive Income In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This ASU allows for stranded tax effects in accumulated other comprehensive income resulting from H.R. 1, originally known as the “Tax Cuts and Jobs Act,” to be reclassified to retained earnings. The new standard is effective for all entities for fiscal years beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the impact of adopting the new standard and does not expect the new standard to have a material impact on the Company’s financial position or results of operations. |
Reclassification of Amounts | Reclassification of Amounts: Certain reclassifications of financial information for prior fiscal years have been made to conform to the presentation for the current fiscal year. |
GENERAL (Tables)
GENERAL (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives | Years Machinery, Equipment and Software 2 – 15 Rental Equipment 5 – 8 Furniture and Fixtures 3 – 10 Leasehold Improvements 2 – 10 Buildings 39 |
Schedule of Goodwill and Intangible Assets | A summary of changes in the Company’s goodwill and intangible assets is as follows: Goodwill Intangible Assets Distribution Service Total Distribution Service Total Net Book Value as of March 26, 2016 $ 8,031 $ 21,081 $ 29,112 $ 124 $ 8,087 $ 8,211 Additions (see Note 9) 1,728 1,733 3,461 1,045 1,045 2,090 Amortization - - - (413 ) (2,362 ) (2,775 ) Currency Translation Adjustment - (53 ) (53 ) - (7 ) (7 ) Net Book Value as of March 25, 2017 $ 9,759 $ 22,761 $ 32,520 $ 756 $ 6,763 $ 7,519 Additions (see Note 9) - - - - - - Amortization - - - (269 ) (1,803 ) (2,072 ) Currency Translation Adjustment - 220 220 - 58 58 Net Book Value as of March 31, 2018 $ 9,759 $ 22,981 $ 32,740 $ 487 $ 5,018 $ 5,505 |
Schedule of Weighted Average Number of Shares | The average shares outstanding used to compute basic and diluted earnings per share are as follows: For the Years Ended March 31, March 25, 2018 2017 Average Shares Outstanding – Basic 7,124 6,994 Effect of Dilutive Common Stock Equivalents 179 117 Average Shares Outstanding – Diluted 7,303 7,111 Anti-dilutive Common Stock Equivalents - - |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | March 31, March 25, 2018 2017 Machinery, Equipment and Software $ 36,460 $ 32,733 Rental Equipment 5,709 4,461 Furniture and Fixtures 2,473 2,405 Leasehold Improvements 2,597 2,491 Buildings and Land 500 500 Total Property and Equipment 47,739 42,590 Less: Accumulated Depreciation and Amortization (30,648 ) (27,022 ) Total Property and Equipment, net $ 17,091 $ 15,568 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Net Income before Income Taxes | Transcat’s income before income taxes on the Consolidated Statements of Income is as follows: FY 2018 FY 2017 United States $ 6,995 $ 6,770 Foreign 953 394 Total $ 7,948 $ 7,164 |
Schedule of Net Provision for Income Taxes | The provision for income taxes for fiscal years 2018 and 2017 is as follows: FY 2018 FY 2017 Current Tax Provision: Federal $ 952 $ 1,945 State 201 344 Foreign 340 279 1,493 2,568 Deferred Tax (Benefit) Provision: Federal $ 487 $ 194 State 156 26 Foreign (110 ) (146 ) 533 74 Provision for Income Taxes $ 2,026 $ 2,642 |
Reconciliation of the Income Tax Provision | A reconciliation of the income tax provision computed by applying the statutory U.S. federal income tax rate and the income tax provision reflected in the Consolidated Statements of Income is as follows: FY 2018 FY 2017 Federal Income Tax at Statutory Rate $ 2,448 $ 2,436 State Income Taxes, net of federal benefit 295 284 Federal, State and Foreign Research & Development Credits (107 ) 118 Impact of Tax Act (535 ) - Other, net (75 ) (196 ) Total $ 2,026 $ 2,642 |
Schedule of Components of the Net Deferred Tax Assets (liabilities) | The components of net deferred tax assets (liabilities) are as follows: March 31, March 25, 2018 2017 Deferred Tax Assets: Accrued Liabilities $ 247 $ 338 Performance-Based Stock Award Grants 337 337 Inventory Reserves 82 213 Non-Qualified Deferred Compensation Plan 172 273 Post-Retirement Health Care Plans 294 425 Stock-Based Compensation 199 717 Capitalized Inventory Costs 122 140 Net Operating Loss Carryforward - 12 Other 233 277 Total Deferred Tax Assets $ 1,686 $ 2,732 Deferred Tax Liabilities: Goodwill and Intangible Assets $ (1,085 ) $ (1,486 ) Depreciation (2,264 ) (2,335 ) Other (46 ) (45 ) Total Deferred Tax Liabilities (3,395 ) (3,866 ) Net Deferred Tax Liabilities $ (1,709 ) $ (1,134 ) |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of Change in the Postretirement Benefit Obligation | The change in the postretirement benefit obligation is as follows: FY 2018 FY 2017 Post-retirement benefit obligation, at beginning of fiscal year $ 1,105 $ 1,006 Service cost 34 30 Interest cost 44 38 Benefits paid (72 ) (79 ) Actuarial loss 42 110 Post-retirement benefit obligation, at end of fiscal year 1,153 1,105 Fair value of plan assets, at end of fiscal year - - Funded status, at end of fiscal year $ (1,153 ) $ (1,105 ) Accumulated post-retirement benefit obligation, at end of fiscal year $ 1,153 $ 1,105 |
Schedule of Net Periodic Postretirement Benefit Cost and Other Amounts Recognized in Other Comprehensive Income | The components of net periodic postretirement benefit cost and other amounts recognized in other comprehensive income are as follows: FY 2018 FY 2017 Net periodic postretirement benefit cost: Service cost $ 34 $ 30 Interest cost 44 38 Amortization of prior service cost 1 25 79 93 Benefit obligations recognized in other comprehensive income: Amortization of prior service cost (1 ) (25 ) Net gain (loss) 4 95 3 70 Total recognized in net periodic benefit cost and other comprehensive income $ 82 $ 163 Amount recognized in accumulated other comprehensive income, at end of fiscal year: Unrecognized prior service cost $ 235 $ 233 |
Schedule of Assumptions Used | Assumptions used to determine the postretirement benefit obligation and the net periodic postretirement benefit cost were as follows: March 31, March 25, 2018 2017 Weighted average discount rate 4.0 % 4.1 % Medical care cost trend rate: Trend rate assumed for next year 8.0 % 8.0 % Ultimate trend rate 6.0 % 6.0 % Year that rate reaches ultimate trend rate 2024 2023 Dental care cost trend rate: Trend rate assumed for next year and remaining at that level thereafter 5.0 % 5.0 % |
Schedule of Expected Benefit Payments | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid as follows: Fiscal Year Amount 2019 $ 102 2020 103 2021 108 2022 112 2023 80 Thereafter 648 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | The following table summarizes the performance-based restricted stock units vested and shares issued during fiscal years 2017 and 2018: Grant Total Date Number Number Fair Target of Date Date Measurement of Units Value Level Shares Shares Granted Period Granted Per Unit Achieved Issued Issued April 2013 April 2013 - March 2016 99 $ 6.17 50% 50 May 2016 April 2014 April 2014 - March 2017 51 $ 9.28 50% 25 May 2017 |
Schedule of Restricted Stock Units Award Activity | The following table summarizes the non-vested performance-based restricted stock units outstanding as of March 31, 2018: Total Grant Date Estimated Number Fair Level of Date Measurement of Units Value Achievement at Granted Period Granted Per Unit March 31, 2018 April 2015 April 2015 - March 2018 63 $ 9.59 50% of target level April 2016 April 2016 - March 2019 84 $ 10.13 125% of target level April 2017 April 2017 – March 2020 77 $ 12.90 100% of target level June 2017 July 2017 – June 2020 3 $ 12.00 Time Vested |
Schedule of Stock Options Activity | The following table summarizes the Company’s options for fiscal years 2018 and 2017: Weighted Weighted Average Average Number Exercise Remaining Aggregate of Price Per Contractual Intrinsic Shares Share Term (in Years) Value Outstanding as of March 26, 2016 494 $ 7.03 Exercised (59 ) 7.00 Forfeited (5 ) 8.95 Redeemed (188 ) 6.40 Outstanding as of March 25, 2017 242 7.48 Granted 165 12.00 Exercised (97 ) 7.24 Forfeited (17 ) 7.65 Redeemed (20 ) 7.72 Outstanding as of March 31, 2018 272 10.27 5 $ 1,464 Exercisable as of March 31, 2018 272 $ 10.27 5 $ 1,464 |
SEGMENT AND GEOGRAPHIC DATA (Ta
SEGMENT AND GEOGRAPHIC DATA (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | The following table presents segment and geographic data for fiscal years 2018 and 2017: FY 2018 FY 2017 Revenue: Service $ 77,445 $ 71,103 Distribution 77,696 72,795 Total 155,141 Gross Profit: Service 19,922 19,039 Distribution 17,519 15,931 Total 37,441 34,970 Operating Expenses: Service (1) 14,764 14,270 Distribution (1) 13,651 12,766 Total 28,415 27,036 Operating Income: Service 5,158 4,769 Distribution 3,868 3,165 Total 9,026 7,934 Unallocated Amounts: Interest and Other Expense, net 1,078 770 Provision for Income Taxes 2,026 2,642 Total 3,104 3,412 Net Income $ 5,922 $ 4,522 Total Assets: Service $ 53,032 $ 51,756 Distribution 40,652 36,812 Unallocated 3,138 3,529 Total $ 96,822 $ 92,097 Depreciation and Amortization (2): Service $ 4,397 $ 4,660 Distribution 1,594 1,524 Total $ 5,991 $ 6,184 Capital Expenditures: Service $ 3,772 $ 2,662 Distribution 2,110 2,588 Total $ 5,882 $ 5,250 Geographic Data: Revenues to Unaffiliated Customers (3): United States (4) $ 139,456 $ 129,732 Canada 13,757 12,432 Other International 1,928 1,734 Total $ 155,141 $ 143,898 Property and Equipment: United States (4) $ 15,967 $ 14,550 Canada 1,124 1,018 Total $ 17,091 $ 15,568 (1) Operating expense allocations between segments are based on actual amounts, a percentage of revenues, headcount, and management’s estimates. (2) Including amortization of catalog costs and intangible assets. (3) Revenues are attributed to the countries based on the destination of a product shipment or the location where service is rendered. (4) United States includes Puerto Rico. |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Leases, Operating [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | The minimum future annual rental payments under the non-cancelable leases at March 31, 2018 are as follows (in millions): Fiscal Year 2019 $ 2.1 2020 1.4 2021 1.0 2022 0.7 2023 0.5 Thereafter 2.6 Total minimum lease payments $ 8.3 |
BUSINESS ACQUISITIONS (Tables)
BUSINESS ACQUISITIONS (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of Purchase Price Allocation | The following is a summary of the purchase price allocation, in the aggregate, to the fair value, based on Level 3 inputs, of assets and liabilities acquired during each period presented: FY 2017 Goodwill $ 3,455 Intangible Assets – Customer Base 1,990 Intangible Assets – Covenants Not to Compete 100 Deferred Tax Liability - 5,545 Plus: Current Assets 973 Non-Current Assets 1,652 Less: Current Liabilities (606 ) Non-Current Liabilities - Total Purchase Price $ 7,564 |
Schedule of Pro Forma Information | The pro forma results do not purport to represent what the Company’s results of operations actually would have been if the transaction had occurred at the beginning of the period presented or what the Company’s operating results will be in future periods. March 25, 2017 Total Revenue $ 144,048 Net Income 4,525 Basic Earnings Per Share 0.65 Diluted Earnings Per Share 0.64 |
QUARTERLY DATA (Unaudited) (Tab
QUARTERLY DATA (Unaudited) (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Data | The following table presents a summary of certain unaudited quarterly financial data for fiscal years 2018 and 2017: Basic Diluted Total Gross Net Earnings Earnings Revenues Profit Income Per Share (a) Per Share (a) FY 2018: Fourth Quarter $ 42,452 $ 10,895 $ 2,454 $ 0.34 $ 0.33 Third Quarter 40,483 9,701 1,831 0.26 0.25 Second Quarter 35,927 8,154 781 0.11 0.11 First Quarter 36,279 8,691 856 0.12 0.12 FY 2017: Fourth Quarter $ 38,453 $ 9,782 $ 1,429 $ 0.20 $ 0.20 Third Quarter 37,813 8,915 1,271 0.18 0.18 Second Quarter 34,485 8,027 916 0.13 0.13 First Quarter 33,147 8,246 906 0.13 0.13 (a) Earnings per share calculations for each quarter include the weighted average effect of stock issuances and common stock equivalents for the quarter; therefore the sum of quarterly earnings per share amounts may not equal full-year earnings per share amounts, which reflect the weighted average effect on an annual basis. Diluted earnings per share calculations for each quarter include the effect of stock options and non-vested restricted stock units, when dilutive to the quarter. In addition, basic earnings per share and diluted earnings per share may not add due to rounding. |
GENERAL (Narrative) (Details)
GENERAL (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Mar. 31, 2018 | Mar. 25, 2017 | |
General [Line Items] | ||
Inventory Valuation Reserves | $ 400 | $ 600 |
Finite-Lived Intangible Asset, Useful Life | 10 years | 10 years |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 1,600 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 1,200 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 900 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 600 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 500 | |
Prepaid Expense and Other Assets, Current | 1,240 | $ 1,193 |
Investments | 700 | 700 |
Allocated Share-based Compensation Expense | 1,400 | 500 |
Vendor rebates | 1,400 | 1,500 |
Cooperative advertising amount | 1,700 | 1,700 |
Advertising costs | 800 | 1,200 |
Cost of goods sold | 117,700 | 108,928 |
Foreign Currency Transaction Gain (Loss), Realized | (100) | (100) |
Foreign Currency Transaction Gain (Loss), Unrealized | 100 | 100 |
Derivative Asset, Notional Amount | 5,100 | |
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | (100) | (300) |
Defined Benefit Plan, Accumulated Other Comprehensive Income Net Prior Service Cost (Credit), after Tax | (200) | (100) |
Accumulated Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | $ 100 | $ 100 |
Dilutive Securities Effect Per Share on Earnings (in Dollars per share) | $ 0.02 | $ 0.01 |
Freight Expense [Member] | ||
General [Line Items] | ||
Cost of goods sold | $ 2,500 | $ 2,200 |
Shipping and Handling [Member] | ||
General [Line Items] | ||
Cost of goods sold | $ 900 | 900 |
Catalog Supplement [Member] | ||
General [Line Items] | ||
Catalog costs, term | 3 months | |
Master Catalog Costs [Member] | ||
General [Line Items] | ||
Catalog costs, term | 18 months | |
Catalog Costs [Member] | ||
General [Line Items] | ||
Prepaid Expense and Other Assets, Current | $ 100 | $ 100 |
GENERAL (Property and Equipment
GENERAL (Property and Equipment, Estimated Useful Lives) (Details) | 12 Months Ended |
Mar. 31, 2018 | |
Machinery, Equipment and Software [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant, and Equipment Useful Lives | 2 years |
Machinery, Equipment and Software [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant, and Equipment Useful Lives | 15 years |
Rental Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant, and Equipment Useful Lives | 5 years |
Rental Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant, and Equipment Useful Lives | 8 years |
Furniture and Fixtures [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant, and Equipment Useful Lives | 3 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant, and Equipment Useful Lives | 10 years |
Leasehold Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant, and Equipment Useful Lives | 2 years |
Leasehold Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant, and Equipment Useful Lives | 10 years |
Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant, and Equipment Useful Lives | 39 years |
GENERAL (Goodwill) (Details)
GENERAL (Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2018 | Mar. 25, 2017 | |
Goodwill [Line Items] | ||
Net Book Value | $ 32,520 | $ 29,112 |
Additions (see Note 9) | 3,461 | |
Currency Translation Adjustment | 220 | (53) |
Net Book Value | 32,740 | 32,520 |
Distribution [Member] | ||
Goodwill [Line Items] | ||
Net Book Value | 9,759 | 8,031 |
Additions (see Note 9) | 1,728 | |
Currency Translation Adjustment | ||
Net Book Value | 9,759 | 9,759 |
Service Segment [Member] | ||
Goodwill [Line Items] | ||
Net Book Value | 22,761 | 21,081 |
Additions (see Note 9) | 1,733 | |
Currency Translation Adjustment | 220 | (53) |
Net Book Value | $ 22,981 | $ 22,761 |
GENERAL (Intangible Assets) (De
GENERAL (Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2018 | Mar. 25, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Net Book Value | $ 7,519 | $ 8,211 |
Additions (see Note 9) | 2,090 | |
Amortization | (2,072) | (2,775) |
Currency Translation Adjustment | 58 | (7) |
Net Book Value | 5,505 | 7,519 |
Distribution [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Net Book Value | 756 | 124 |
Additions (see Note 9) | 1,045 | |
Amortization | (269) | (413) |
Currency Translation Adjustment | ||
Net Book Value | 487 | 756 |
Service Segment [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Net Book Value | 6,763 | 8,087 |
Additions (see Note 9) | 1,045 | |
Amortization | (1,803) | (2,362) |
Currency Translation Adjustment | 58 | (7) |
Net Book Value | $ 5,018 | $ 6,763 |
GENERAL (Average Shares Outstan
GENERAL (Average Shares Outstanding Used to Compute Basic and Diluted Earnings per Share) (Details) - shares shares in Thousands | 12 Months Ended | |
Mar. 31, 2018 | Mar. 25, 2017 | |
Accounting Policies [Abstract] | ||
Average Shares Outstanding - Basic | 7,124 | 6,994 |
Effect of Dilutive Common Stock Equivalents | 179 | 117 |
Average Shares Outstanding - Diluted | 7,303 | 7,111 |
Anti-dilutive Common Stock Equivalents |
PROPERTY AND EQUIPMENT (Narrati
PROPERTY AND EQUIPMENT (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2018 | Mar. 25, 2017 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation, Depletion and Amortization, Nonproduction | $ 3.8 | $ 3.3 |
PROPERTY AND EQUIPMENT (Propert
PROPERTY AND EQUIPMENT (Property and Equipment) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 25, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property and Equipment | $ 47,739 | $ 42,590 |
Less: Accumulated Depreciation and Amortization | (30,648) | (27,022) |
Total Property and Equipment, net | 17,091 | 15,568 |
Machinery, Equipment and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment | 36,460 | 32,733 |
Rental Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment | 5,709 | 4,461 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment | 2,473 | 2,405 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment | 2,597 | 2,491 |
Buildings and Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment | $ 500 | $ 500 |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) $ in Thousands | 12 Months Ended | |
Mar. 31, 2018USD ($) | Mar. 25, 2017USD ($) | |
Debt Instrument [Line Items] | ||
Current portion of loan outstanding | $ 2,143 | $ 1,429 |
Allowable leverage ratio | 3 | 2.75 |
Loans Payable [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount of loan | $ 15,000 | |
Loan outstanding | 14,100 | |
Current portion of loan outstanding | 2,100 | |
Monthly principal payments | 200 | |
Annual payments | 20,000 | |
Amount due in 2022 | 4,300 | |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 30,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 1.90% | |
Maturity date | Oct. 29, 2021 | |
Amount available | $ 30,000 | |
Amount outstanding | $ 8,700 | |
Allowable leverage ratio | 3 | |
Revolving Credit Facility [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate for period | 3.00% | |
Revolving Credit Facility [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate for period | 3.60% | |
Revolving Credit Facility [Member] | Borrowings for Business Acquisitions [Member] | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 15,000 | $ 15,000 |
Principal amount of loan | 10,000 | |
Monthly principal payments | 100 | |
Annual payments | 1,400 | |
Amount due in 2022 | $ 3,000 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2018 | Mar. 25, 2017 | |
Statutory U.S. federal income tax rate | 25.00% | 27.00% |
Additional provision for income tax expense | $ 0.1 | |
Pay any amounts owed over period | 8 Years | |
Effective tax rate | 25.50% | 31.30% |
Minimum [Member] | ||
Statutory U.S. federal income tax rate | 35.00% | |
Maximum [Member] | ||
Statutory U.S. federal income tax rate | 21.00% |
INCOME TAXES (Net Income Before
INCOME TAXES (Net Income Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2018 | Mar. 25, 2017 | |
Income Tax Disclosure [Abstract] | ||
United States | $ 6,995 | $ 6,770 |
Foreign | 953 | 394 |
Income Before Provision for Income Taxes | $ 7,948 | $ 7,164 |
INCOME TAXES (Net Provision for
INCOME TAXES (Net Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2018 | Mar. 25, 2017 | |
Current Tax Provision: | ||
Federal | $ 952 | $ 1,945 |
State | 201 | 344 |
Foreign | 340 | 279 |
Current Tax Provision | 1,493 | 2,568 |
Deferred Tax (Benefit) Provision: | ||
Federal | 487 | 194 |
State | 156 | 26 |
Foreign | (110) | (146) |
Deferred Tax (Benefit) Provision | 533 | 74 |
Total | $ 2,026 | $ 2,642 |
INCOME TAXES (Reconciliation of
INCOME TAXES (Reconciliation of the Income Tax Provision) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2018 | Mar. 25, 2017 | |
Income Tax Disclosure [Abstract] | ||
Federal Income Tax at Statutory Rate | $ 2,448 | $ 2,436 |
State Income Taxes, net of federal benefit | 295 | 284 |
Federal, State and Foreign Research & Development Credits | (107) | 118 |
Impact of Tax Act | (535) | |
Other, net | (75) | (196) |
Total | $ 2,026 | $ 2,642 |
INCOME TAXES (Components of the
INCOME TAXES (Components of the Net Deferred Tax Assets (Liabilities)) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 25, 2017 |
Deferred Tax Assets: | ||
Accrued Liabilities | $ 247 | $ 338 |
Performance-Based Stock Award Grants | 337 | 337 |
Inventory Reserves | 82 | 213 |
Non-Qualified Deferred Compensation Plan | 172 | 273 |
Post-retirement Health Care Plans | 294 | 425 |
Stock-Based Compensation | 199 | 717 |
Capitalized Inventory Costs | 122 | 140 |
Net Operating Loss Carryforward | 12 | |
Other | 233 | 277 |
Total Deferred Tax Assets | 1,686 | 2,732 |
Deferred Tax Liabilities: | ||
Goodwill and Intangible Assets | (1,085) | (1,486) |
Depreciation | (2,264) | (2,335) |
Other | (46) | (45) |
Total Deferred Tax Liabilities | (3,395) | (3,866) |
Net Deferred Tax Liabilities | $ (1,709) | $ (1,134) |
EMPLOYEE BENEFIT PLANS (Narrati
EMPLOYEE BENEFIT PLANS (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 25, 2017 | Mar. 25, 2017 | |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Matching percentage | 50.00% | ||
Percentage of contributions matched | 6.00% | ||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 700 | $ 700 | |
Compensation expense | $ 1,411 | 453 | |
ESPP [Member] | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Number of shares authorized under ESPP | 650,000 | ||
Maximum [Member] | ESPP [Member] | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Compensation expense | $ 100 | $ 100 | |
NQDC Plan [Member] | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Deferred Compensation Liability, Current and Noncurrent | $ 700 | $ 700 | $ 700 |
Other Postretirement Benefit Plan, Defined Benefit [Member] | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase | 50.00% | ||
Defined Benefit Plan, Effect of One Percentage Point Increase on Service and Interest Cost Components | $ 100 | ||
Defined Benefit Plan, Effect of One Percentage Point Decrease on Service and Interest Cost Components | 100 | ||
Defined Benefit Plan, Effect of One Percentage Point Decrease on Accumulated Postretirement Benefit Obligation | $ 100 |
EMPLOYEE BENEFIT PLANS (Change
EMPLOYEE BENEFIT PLANS (Change in the Postretirement Benefit Obligation) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2018 | Mar. 25, 2017 | |
Retirement Benefits [Abstract] | ||
Post-retirement benefit obligation, at beginning of fiscal year | $ 1,105 | $ 1,006 |
Service cost | 34 | 30 |
Interest cost | 44 | 38 |
Benefits paid | (72) | (79) |
Actuarial loss | 42 | 110 |
Post-retirement benefit obligation, at end of fiscal year | 1,153 | 1,105 |
Fair value of plan assets, at end of fiscal year | ||
Funded status, at end of fiscal year | (1,153) | (1,105) |
Accumulated post-retirement benefit obligation, at end of fiscal year | $ 1,153 | $ 1,105 |
EMPLOYEE BENEFIT PLANS (Compone
EMPLOYEE BENEFIT PLANS (Components of Net Periodic Postretirement Benefit Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2018 | Mar. 25, 2017 | |
Net periodic postretirement benefit cost: | ||
Service cost | $ 34 | $ 30 |
Interest cost | 44 | 38 |
Amortization of prior service cost | 1 | 25 |
Net periodic postretirement benefit cost | 79 | 93 |
Benefit obligations recognized in other comprehensive income: | ||
Amortization of prior service cost | (1) | (25) |
Net gain (loss) | 4 | 95 |
Benefit obligations recognized in other comprehensive income | 3 | 70 |
Total recognized in net periodic benefit cost and other comprehensive income | 82 | 163 |
Amount recognized in accumulated other comprehensive income, at end of fiscal year: | ||
Unrecognized prior service cost | $ 235 | $ 233 |
EMPLOYEE BENEFIT PLANS (Assumpt
EMPLOYEE BENEFIT PLANS (Assumptions Used to Determine the Postretirement Benefit Obligation and the Net Periodic Benefit Cost) (Details) | 12 Months Ended | |
Mar. 31, 2018 | Mar. 25, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Line Items] | ||
Weighted average discount rate | 4.00% | 4.10% |
Medical care cost trend rate: | ||
Ultimate trend rate | 6.00% | 6.00% |
Year that rate reaches ultimate trend rate | 2,024 | 2,023 |
Medical Care Cost [Member] | ||
Medical care cost trend rate: | ||
Trend rate assumed for next year | 8.00% | 8.00% |
Dental Care Cost [Member] | ||
Medical care cost trend rate: | ||
Trend rate assumed for next year | 5.00% | 5.00% |
EMPLOYEE BENEFIT PLANS (Future
EMPLOYEE BENEFIT PLANS (Future Benefit Payments) (Details) $ in Thousands | Mar. 31, 2018USD ($) |
Retirement Benefits [Abstract] | |
2,019 | $ 102 |
2,020 | 103 |
2,021 | 108 |
2,022 | 112 |
2,023 | 80 |
Thereafter | $ 648 |
STOCK-BASED COMPENSATION (Narra
STOCK-BASED COMPENSATION (Narrative) (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Mar. 31, 2018 | Mar. 25, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Granted | 165 | |
Allocated Share-based Compensation Expense | $ 1,400 | $ 500 |
Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted Stock or Unit Expense | 400 | 100 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 800 | 300 |
Proceeds from Stock Options Exercised | $ 700 | 400 |
Employee Stock Option [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 5 years | |
Employee Stock Option [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |
Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted Stock or Unit Expense | $ 800 | $ 300 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 1,100 | |
2003 Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in Shares) | 1,100 | |
2003 Plan [Member] | Employee Stock Option [Member] | Board of Directors [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Granted | 165 | |
Allocated Share-based Compensation Expense | $ 400 | $ 100 |
STOCK-BASED COMPENSATION (Non-V
STOCK-BASED COMPENSATION (Non-Vested Performance-Based Restricted Stock Units) (Details) - Performance Shares [Member] shares in Thousands | 12 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Performance Based Restricted Stock Awards Granted 2013 [Member] | |
Schedule of Stock Based Compensation Details Non Vested Performance Based Restricted Stock Units [Line Items] | |
Total Number of Units Granted | 99 |
Grant Date Fair Value Per Unit (in Dollars per share) | $ / shares | $ 6.17 |
Target Level Achieved | 50.00% |
Number of Shares Issued | 50 |
Performance Based Restricted Stock Awards Granted in 2014 [Member] | |
Schedule of Stock Based Compensation Details Non Vested Performance Based Restricted Stock Units [Line Items] | |
Total Number of Units Granted | 51 |
Grant Date Fair Value Per Unit (in Dollars per share) | $ / shares | $ 9.28 |
Target Level Achieved | 50.00% |
Number of Shares Issued | 25 |
Performance Based Restricted Stock Awards Granted In 2015 [Member] | |
Schedule of Stock Based Compensation Details Non Vested Performance Based Restricted Stock Units [Line Items] | |
Total Number of Units Granted | 63 |
Grant Date Fair Value Per Unit (in Dollars per share) | $ / shares | $ 9.59 |
Estimated Level of Achievement | 50.00% |
Performance Based Restricted Stock Awards Granted In 2016 [Member] | |
Schedule of Stock Based Compensation Details Non Vested Performance Based Restricted Stock Units [Line Items] | |
Total Number of Units Granted | 84 |
Grant Date Fair Value Per Unit (in Dollars per share) | $ / shares | $ 10.13 |
Estimated Level of Achievement | 125.00% |
Performance Based Restricted Stock Awards Granted In 2017 [Member] | |
Schedule of Stock Based Compensation Details Non Vested Performance Based Restricted Stock Units [Line Items] | |
Total Number of Units Granted | 77 |
Grant Date Fair Value Per Unit (in Dollars per share) | $ / shares | $ 12.90 |
Estimated Level of Achievement | 100.00% |
Performance Based Restricted Stock Awards Granted In June 2017 [Member] | |
Schedule of Stock Based Compensation Details Non Vested Performance Based Restricted Stock Units [Line Items] | |
Total Number of Units Granted | 3 |
Grant Date Fair Value Per Unit (in Dollars per share) | $ / shares | $ 12 |
STOCK-BASED COMPENSATION (Stock
STOCK-BASED COMPENSATION (Stock Options) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Mar. 31, 2018 | Mar. 25, 2017 | |
Number of Shares | ||
Outstanding, beginning balance | 242 | 494 |
Granted | 165 | |
Exercised | (97) | (59) |
Forfeited | (17) | (5) |
Redeemed | (20) | (188) |
Outstanding, ending balance | 272 | 242 |
Exercisable | 272 | |
Weighted Average Exercise Price Per Share | ||
Outstanding, beginning balance | $ 7.48 | $ 7.03 |
Granted | 12 | |
Exercised | 7.24 | 7 |
Forfeited | 7.65 | 8.95 |
Redeemed | 7.72 | 6.40 |
Outstanding, ending balance | 10.27 | $ 7.48 |
Exercisable | $ 10.27 | |
Weighted Average Remaining Contractual Term (in Years) | ||
Outstanding | 5 years | |
Exercisable | 5 years | |
Aggregate Intrinsic Value | ||
Outstanding | $ 1,464 | |
Exercisable | $ 1,464 |
SEGMENT AND GEOGRAPHIC DATA (Na
SEGMENT AND GEOGRAPHIC DATA (Narrative) (Details) | 12 Months Ended |
Mar. 31, 2018item | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 2 |
SEGMENT AND GEOGRAPHIC DATA (De
SEGMENT AND GEOGRAPHIC DATA (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Mar. 31, 2018 | Dec. 23, 2017 | Sep. 23, 2017 | Jun. 24, 2017 | Mar. 25, 2017 | Dec. 24, 2016 | Sep. 24, 2016 | Jun. 25, 2016 | Mar. 31, 2018 | Mar. 25, 2017 | ||||
Revenue: | |||||||||||||
Revenue | $ 42,452 | $ 40,483 | $ 35,927 | $ 36,279 | $ 38,453 | $ 37,813 | $ 34,485 | $ 33,147 | $ 155,141 | [1] | $ 143,898 | [1] | |
Gross Profit: | |||||||||||||
Gross Profit | 10,895 | 9,701 | 8,154 | 8,691 | 9,782 | 8,915 | 8,027 | 8,246 | 37,441 | 34,970 | |||
Operating Expenses: | |||||||||||||
Operating Expenses | 28,415 | 27,036 | |||||||||||
Operating Income: | |||||||||||||
Operating Income | 9,026 | 7,934 | |||||||||||
Unallocated Amounts: | |||||||||||||
Interest and Other Expense, net | 1,078 | 770 | |||||||||||
Provision for Income Taxes | 2,026 | 2,642 | |||||||||||
Net Income | 2,454 | $ 1,831 | $ 781 | $ 856 | 1,429 | $ 1,271 | $ 916 | $ 906 | 5,922 | 4,522 | |||
Total Assets: | |||||||||||||
Assets | 96,822 | 92,097 | 96,822 | 92,097 | |||||||||
Depreciation and Amortization: | |||||||||||||
Depreciation and Amortization | 5,991 | 6,184 | |||||||||||
Capital Expenditures: | |||||||||||||
Capital Expenditures | 5,882 | 5,250 | |||||||||||
Property and Equipment: | |||||||||||||
Property and Equipment | 17,091 | 15,568 | 17,091 | 15,568 | |||||||||
United States [Member] | |||||||||||||
Revenue: | |||||||||||||
Revenue | [1],[2] | 139,456 | 129,732 | ||||||||||
Property and Equipment: | |||||||||||||
Property and Equipment | [2] | 15,967 | 14,550 | 15,967 | 14,550 | ||||||||
Canada [Member] | |||||||||||||
Revenue: | |||||||||||||
Revenue | [1] | 13,757 | 12,432 | ||||||||||
Property and Equipment: | |||||||||||||
Property and Equipment | 1,124 | 1,018 | 1,124 | 1,018 | |||||||||
Other International [Member] | |||||||||||||
Revenue: | |||||||||||||
Revenue | [1] | 1,928 | 1,734 | ||||||||||
Service Segment [Member] | |||||||||||||
Revenue: | |||||||||||||
Revenue | 77,445 | 71,103 | |||||||||||
Gross Profit: | |||||||||||||
Gross Profit | 19,922 | 19,039 | |||||||||||
Operating Expenses: | |||||||||||||
Operating Expenses | [3] | 14,764 | 14,270 | ||||||||||
Operating Income: | |||||||||||||
Operating Income | 5,158 | 4,769 | |||||||||||
Total Assets: | |||||||||||||
Assets | 53,032 | 51,756 | 53,032 | 51,756 | |||||||||
Depreciation and Amortization: | |||||||||||||
Depreciation and Amortization | [4] | 4,397 | 4,660 | ||||||||||
Capital Expenditures: | |||||||||||||
Capital Expenditures | 3,772 | 2,662 | |||||||||||
Distribution [Member] | |||||||||||||
Revenue: | |||||||||||||
Revenue | 77,696 | 72,795 | |||||||||||
Gross Profit: | |||||||||||||
Gross Profit | 17,519 | 15,931 | |||||||||||
Operating Expenses: | |||||||||||||
Operating Expenses | [3] | 13,651 | 12,766 | ||||||||||
Operating Income: | |||||||||||||
Operating Income | 3,868 | 3,165 | |||||||||||
Total Assets: | |||||||||||||
Assets | 40,652 | 36,812 | 40,652 | 36,812 | |||||||||
Depreciation and Amortization: | |||||||||||||
Depreciation and Amortization | [4] | 1,594 | 1,524 | ||||||||||
Capital Expenditures: | |||||||||||||
Capital Expenditures | 2,110 | 2,588 | |||||||||||
Segment Reconciling Items [Member] | |||||||||||||
Unallocated Amounts: | |||||||||||||
Interest and Other Expense, net | 1,078 | 770 | |||||||||||
Provision for Income Taxes | 2,026 | 2,642 | |||||||||||
Unallocated Amounts | 3,104 | 3,412 | |||||||||||
Unallocated [Member] | |||||||||||||
Total Assets: | |||||||||||||
Assets | $ 3,138 | $ 3,529 | $ 3,138 | $ 3,529 | |||||||||
[1] | Revenues are attributed to the countries based on the destination of a product shipment or the location where service is rendered. | ||||||||||||
[2] | United States includes Puerto Rico. | ||||||||||||
[3] | Operating expense allocations between segments are based on actual amounts, a percentage of revenues, headcount, and management's estimates. | ||||||||||||
[4] | Including amortization of catalog costs and intangible assets. |
COMMITMENTS (Details)
COMMITMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2018 | Mar. 25, 2017 | |
Other Commitments [Line Items] | ||
Total rental expense | $ 3,100 | $ 3,000 |
2,019 | 2,100 | |
2,020 | 1,400 | |
2,021 | 1,000 | |
2,022 | 700 | |
2,023 | 500 | |
Thereafter | 2,600 | |
Total minimum lease payments | 8,300 | |
Loans Payable [Member] | ||
Other Commitments [Line Items] | ||
Monthly repayment amount | $ 200 |
BUSINESS ACQUISITIONS (Narrativ
BUSINESS ACQUISITIONS (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2018 | Mar. 25, 2017 | |
Business Acquisition [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 10 years | 10 years |
Business Combination, Contingent Consideration, Liability, Current | ||
Other holdback amounts unpaid | ||
Acquisition costs | 0.1 | |
Payments for contingent consideration | 0.3 | |
Payments for other holdbacks | 2.7 | |
Fiscal 2017 Acquisitions [Member] | ||
Business Acquisition [Line Items] | ||
Business Combination, Consideration Transferred | 7.6 | |
Cash Acquired from Acquisition | $ 0.1 |
BUSINESS ACQUISITIONS (Purchase
BUSINESS ACQUISITIONS (Purchase Price Paid for Businesses Acquired) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 25, 2017 | Mar. 26, 2016 |
Allocation of Purchase Price: | |||
Goodwill | $ 32,740 | $ 32,520 | $ 29,112 |
Fiscal 2017 Acquisitions [Member] | |||
Allocation of Purchase Price: | |||
Goodwill | 3,455 | ||
Deferred Tax Liability | |||
Total | 5,545 | ||
Plus: Current Assets | 973 | ||
Non-Current Assets | 1,652 | ||
Less: Current Liabilities | (606) | ||
Non-Current Liabilities | |||
Total Purchase Price | 7,564 | ||
Fiscal 2017 Acquisitions [Member] | Customer Base [Member] | |||
Allocation of Purchase Price: | |||
Intangible Assets | 1,990 | ||
Fiscal 2017 Acquisitions [Member] | Covenants Not to Compete [Member] | |||
Allocation of Purchase Price: | |||
Intangible Assets | $ 100 |
BUSINESS ACQUISITIONS (Proforma
BUSINESS ACQUISITIONS (Proforma Information for Business Acquisitions) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Mar. 25, 2017USD ($)$ / shares | |
Business Combinations [Abstract] | |
Total Revenue | $ | $ 144,048 |
Net Income | $ | $ 4,525 |
Basic Earnings Per Share | $ / shares | $ 0.65 |
Diluted Earnings Per Share | $ / shares | $ 0.64 |
QUARTERLY DATA (Unaudited) (Det
QUARTERLY DATA (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Mar. 31, 2018 | Dec. 23, 2017 | Sep. 23, 2017 | Jun. 24, 2017 | Mar. 25, 2017 | Dec. 24, 2016 | Sep. 24, 2016 | Jun. 25, 2016 | Mar. 31, 2018 | Mar. 25, 2017 | |||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||
Total Revenues | $ 42,452 | $ 40,483 | $ 35,927 | $ 36,279 | $ 38,453 | $ 37,813 | $ 34,485 | $ 33,147 | $ 155,141 | [1] | $ 143,898 | [1] | ||||||||
Gross Profit | 10,895 | 9,701 | 8,154 | 8,691 | 9,782 | 8,915 | 8,027 | 8,246 | 37,441 | 34,970 | ||||||||||
Net Income | $ 2,454 | $ 1,831 | $ 781 | $ 856 | $ 1,429 | $ 1,271 | $ 916 | $ 906 | $ 5,922 | $ 4,522 | ||||||||||
Basic Earnings Per Share (in Dollars per share) | $ 0.34 | [2] | $ 0.26 | [2] | $ 0.11 | [2] | $ 0.12 | [2] | $ 0.20 | [2] | $ 0.18 | [2] | $ 0.13 | [2] | $ 0.13 | [2] | $ 0.83 | $ 0.65 | ||
Diluted Earnings Per Share (in Dollars per share) | $ 0.33 | [2] | $ 0.25 | [2] | $ 0.11 | [2] | $ 0.12 | [2] | $ 0.20 | [2] | $ 0.18 | [2] | $ 0.13 | [2] | $ 0.13 | [2] | $ 0.81 | $ 0.64 | ||
[1] | Revenues are attributed to the countries based on the destination of a product shipment or the location where service is rendered. | |||||||||||||||||||
[2] | Earnings per share calculations for each quarter include the weighted average effect of stock issuances and common stock equivalents for the quarter; therefore the sum of quarterly earnings per share amounts may not equal full-year earnings per share amounts, which reflect the weighted average effect on an annual basis. Diluted earnings per share calculations for each quarter include the effect of stock options and non-vested restricted stock units, when dilutive to the quarter. In addition, basic earnings per share and diluted earnings per share may not add due to rounding. |