Note 5 - Income Taxes

12 Months Ended

Mar. 31, 2021

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,
	2021			2020
Deferred tax assets:
Accrued expenses	$	406		$	287
Deferred stock compensation		321			469
Bad debt and inventory reserves		29			24
Total deferred tax assets		756			780
Deferred tax liabilities:
Property and equipment		(2,037	)		(1,750	)
Total net deferred tax liabilities	$	(1,281	)	$	(970	)

At March 31, 2021, 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,
	2021		2020			2019
Current taxes
Federal	$	7,446	$	7,352		$	9,718
State		856		841			1,538
Total current taxes		8,302		8,193			11,256
Deferred taxes
Federal		279		(135	)		108
State		32		(16	)		17
Total deferred taxes		311		(151	)		125
Total provision for income taxes	$	8,613	$	8,042		$	11,381

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,
	2021			2020			2019
Income taxes at U.S. statutory rates	$	8,235		$	7,118		$	10,315
State income taxes, net of federal tax benefit		708			649			1,233
Restricted stock (windfall) shortfall adjustment		(135	)		322			(176	)
Other		(195	)		(47	)		9
Total provision for income taxes	$	8,613		$	8,042		$	11,381

In fiscal 2021 the Company recognized a stock compensation windfall benefit of approximately $135,000, and recognized a one-time benefit of approximately $194,000, related to a return to provision true up of the fiscal 2020 income tax provision. In fiscal 2020 the Company recognized a stock compensation shortfall charge of approximately $322,000, and recognized a one-time benefit of approximately $93,000, related to a return to provision true up of the fiscal 2019 income tax provision. 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.