Note 8 - Income Taxes

9 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Income Tax Disclosure [Text Block]

Note 8: Income Taxes

For the quarters ended December 31, 2021 and 2020, the Company recorded an income tax provision of approximately $1.3 million and $2.1 million, respectively, and for the nine months ended December 31, 2021 and 2020, the Company recorded an income tax provision of approximately $4.6 million and $6.6 million, respectively. The decrease in the income tax provision for the three and nine months ended December 31, 2021 is related to a decrease in operating income during the periods. The effective tax rate for the quarter ended December 31, 2021 was approximately 22.9% compared to 21.6% for the quarter ended December 31, 2020, and the effective tax rate for the nine months ended December 31, 2021 was approximately 23.4%, compared to 21.7% for the nine months ended December 31, 2020. The increase to the effective rate for the quarter ended December 31, 2021 was due to a one-time income tax charge of $29,000 related to the reconciliation of the Company’s tax return for the fiscal year ending March 31, 2021, with the Company receiving a one-time income tax benefit of $194,000 related to the reconciliation of the Company’s tax return for the fiscal year ending March 31, 2020 the prior year. The decrease to the effective rate for the nine months ended December 31, 2020 can be attributed to the Company receiving a one-time state income tax refund of $285,000 in the June 2020 quarter and a $106,000 income tax benefit related to restricted stock compensation in the September 2020 quarter.