INCOME TAXES (Tables)

12 Months Ended

Mar. 31, 2025

INCOME TAXES [Abstract]

Reconciliation of Income Taxes to Statutory Federal Income Tax Rate

A reconciliation of income taxes computed at the statutory federal income tax rate of 21.0% to the provision for income taxes included in the consolidated statements of operations is as follows (in thousands, except percentages):

	Year Ended March 31,
	2025			2024			2023
Income tax expense computed at the US statutory federal rate	$	31,256		$	33,830		$	34,224
State income tax expense—net of federal benefit		7,722			9,624			8,754
Non-deductible executive compensation		2,020			1,718			1,708
Other		(137	)		145			(1,068	)
Provision for income taxes	$	40,861		$	45,317		$	43,618
Effective income tax rate		27.5	%		28.1	%		26.8	%

Components of Provision for Income Taxes

The components of the provision for income taxes are as follows (in thousands):

	Year Ended March 31,
	2025		2024			2023
Current:
Federal	$	26,708	$	34,232		$	30,928
State		9,648		12,371			10,110
Foreign		1,092		1,370			499
Total current expense		37,448		47,973			41,537
Deferred:
Federal		3,141		(2,419	)		1,301
State		127		(188	)		970
Foreign		145		(49	)		(190	)
Total deferred expense (benefit)		3,413		(2,656	)		2,081
Provision for income taxes	$	40,861	$	45,317		$	43,618

Components of Deferred Tax Assets and Liabilities

Significant components of our deferred tax assets and liabilities were as follows (in thousands):

	March 31,
	2025			2024
Deferred tax assets:
Accrued vacation	$	2,744		$	2,666
Deferred revenue		7,108			6,934
Allowance for credit losses		1,745			1,278
Restricted stock		301			738
Other deferred tax assets		841			689
Inventory reserve		1,313			546
Capitalized research expenditures		1,666			502
Accrued bonus		2,708			2,641
Lease liabilities		5,067			4,503
Other credits and carryforwards		101			251
Gross deferred tax assets		23,594			20,748
Less: valuation allowance		(63	)		(70	)
Net deferred tax assets		23,531			20,678
Deferred tax liabilities:
Property and equipment		(2,516	)		(2,724	)
Operating leases		(7,804	)		(3,889	)
Prepaid expenses		(4,095	)		(1,807	)
Right-of-use assets		(4,714	)		(4,113	)
Tax deductible goodwill		(2,198	)		(2,525	)
Total deferred tax liabilities		(21,327	)		(15,058	)
Net deferred tax asset	$	2,204		$	5,620