Income Taxes

12 Months Ended

Mar. 31, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Note 6 — Income Taxes

The income tax provision consisted of the following for the fiscal years ended March 31, 2022, 2021 and 2020:

	2022		2021			2020
Current — Federal	$	11,977,000	$	16,608,000		$	9,212,000
Current — State		3,823,000		4,587,000			2,652,000
Subtotal		15,800,000		21,195,000			11,864,000
Deferred — Federal		1,784,000		(6,809,000	)		1,418,000
Deferred — State		518,000		(1,567,000	)		52,000
Subtotal		2,302,000		(8,376,000	)		1,470,000
	$	18,102,000	$	12,819,000		$	13,334,000

The following is a reconciliation of the income tax provision from the statutory federal income tax rate to the effective rate for the fiscal years ended March 31, 2022, 2021 and 2020:

	2022			2021			2020
Income taxes at federal statutory rate	$	17,748,000		$	12,427,000		$	12,749,000
State income taxes, net of federal benefit		3,658,000			3,102,000			2,243,000
Uncertain tax positions		(222,000	)		(693,000	)		(263,000	)
Stock-based compensation and §162(m) limitation		(2,697,000	)		(1,654,000	)		(1,453,000	)
Permanent items and tax credits		(465,000	)		(364,000	)		(179,000	)
Adjustments to returns as filed		176,000			192,000			110,000
Valuation allowance		(96,000	)		(191,000	)		127,000
	$	18,102,000		$	12,819,000		$	13,334,000

Deferred tax assets and liabilities at March 31, 2022 and 2021 are, as follows:

	2022			2021
Deferred tax assets:
Accrued liabilities not currently deductible	$	6,277,000		$	7,908,000
Allowance for doubtful accounts		658,000			849,000
Stock-based compensation		2,090,000			2,242,000
Deferred lease liability		11,002,000			14,080,000
Deferred payroll taxes		1,332,000			2,693,000
Other		675,000			877,000
Deferred tax assets		22,034,000			28,649,000
Deferred tax liabilities:
Excess of book over tax basis of fixed assets		(7,313,000	)		(9,166,000	)
Intangible assets		(4,937,000	)		(4,820,000	)
Right-of-use asset		(8,939,000	)		(11,668,000	)
Accrued revenue		(1,665,000	)		(1,526,000	)
Other		(476,000	)		(367,000	)
Total deferred tax liabilities		(23,330,000	)		(27,547,000	)
Valuation allowance		(393,000	)		(489,000	)
Deferred tax liabilities		(23,723,000	)		(28,036,000	)
Net deferred tax assets (liabilities)	$	(1,689,000	)	$	613,000

Prepaid income taxes are $2,367,000 at March 31, 2022. There were no prepaid taxes at March 31, 2021.

A reconciliation of the financial statement recognition and measurement of uncertain tax positions during the current fiscal year is as follows:

Balance as of March 31, 2021	$	418,000
Additions based on tax positions related to the current year		—
Additions for tax positions of prior years		—
Reductions for tax positions related to the current year		—
Reductions for tax positions of prior years		(201,000	)
Balance as of March 31, 2022	$	217,000

The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. During the fiscal years ended March 31, 2022, 2021 and 2020, the Company recognized approximately $(40,000), $(99,000) and $(10,000) in interest and penalties, respectively. As of March 31, 2022, 2021 and 2020, accrued interest and penalties related to uncertain tax positions were $67,000, $107,000 and $206,000, respectively.

The tax fiscal years from 2016-2021 remain open to examination by the major taxing jurisdictions to which the Company is subject.