Note 5 - Income Taxes

12 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Income Tax Disclosure [Text Block]

( 5 ) Income Taxes

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities are as follows (in thousands):

	March 31,
	2019			2018
Deferred tax assets:
Accrued expenses	$	298		$	346
Deferred stock compensation		412			353
Bad debt and inventory reserves		22			22
Total deferred tax assets		732			721
Deferred tax liabilities:
Property and equipment		1,853			1,717
Total net deferred taxes	$	(1,121	)	$	(996	)

At

March 31, 2019,

the Company had

no

federal net operating loss carryforwards.

The components of the income tax provision consist of the following (in thousands):

	Year Ended March 31,
	2019		2018			2017
Current taxes
Federal	$	9,718	$	15,012		$	11,095
State		1,538		1,586			1,059
Total current taxes		11,256		16,598			12,154
Deferred taxes
Federal		108		(83	)		1,781
State		17		(9	)		170
Total deferred taxes		125		(92	)		1,951
Total provision for income taxes	$	11,381	$	16,506		$	14,105

The reconciliation of income tax provision computed at the U.S. federal statutory tax rates to income tax expense is as follows (in thousands):

	Year Ended March 31,
	2019			2018			2017
Income taxes at U.S. statutory rates	$	10,315		$	16,943		$	13,274
State income taxes, net of federal tax benefit		1,233			1,078			858
Restricted stock windfall adjustment		(176	)		(1,086	)		-
Reduction of deferred tax liability due to rate reduction		-			(430	)		-
Other		9			1			(27	)
Total provision for income taxes	$	11,381		$	16,506		$	14,105

The

2017

Tax Cuts and Jobs Act (the

“2017

Tax Act”) was signed into law on

December 22, 2017.  

The

2017

Tax Act made a significant number of changes to the existing U.S. Internal Revenue Code, including a permanent reduction of the U.S. corporate income tax rate from

35%

to

21%

for tax years beginning after

December 31, 2017.

In accordance with SEC Staff Bulletin

No.

118,

fiscal year end companies were required to determine the appropriate blended rate to apply based on their respective fiscal year end dates. Therefore, instead of applying a

35.0%

federal tax rate for the fiscal year ended

March 31, 2018,

the Company applied a blended federal rate of

31.5%.

This blended rate was applied to fiscal

2018,

resulting in a tax benefit of approximately

$1.9

million. As a result, the Company recorded a provisional income tax benefit of approximately

$430,000

related to the re-measurement of deferred tax assets and liabilities resulting from the reduction of the federal corporate tax rate.  In fiscal

2019

the Company recognized a stock compensation windfall benefit of approximately

$176,000,

and recognized a

one

-time charge of approximately

$8,000

related to a return to provision true up of the fiscal

2018

income tax provision. In fiscal

2018

the Company also recognized a stock compensation windfall benefit of approximately

$1.1

million, and recognized a

one

-time net benefit of approximately

$150,000

related to a return to provision true up of the fiscal

2017

income tax provision.