QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
|
|
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
|
|
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Title of each class
|
Trading symbol(s)
|
Name of each exchange on which registered
|
|
|
|
Large accelerated filer ☐
|
|
Non-accelerated filer ☐
|
Smaller reporting company
|
|
Emerging growth company
|
PART I — FINANCIAL INFORMATION
|
||
4
|
||
4
|
||
5
|
||
6
|
||
7
|
||
8
|
||
9
|
||
22
|
||
30
|
||
30
|
||
PART II — OTHER INFORMATION
|
||
32
|
||
32
|
||
32
|
||
32
|
||
32
|
||
33
|
||
35
|
Item 1. |
Financial Statements
|
December 31, 2022
|
March 31, 2022
|
|||||||
ASSETS
|
(Unaudited)
|
|||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
||||
Short-term investments
|
|
|
||||||
Accounts receivable — net
|
|
|
||||||
Inventory
|
|
|
||||||
Contract assets
|
|
|
||||||
Prepaid expenses and other current assets
|
|
|
||||||
Total current assets
|
|
|
||||||
Plant and equipment — net
|
|
|
||||||
Operating lease assets
|
|
|
||||||
Long-term deferred income taxes
|
|
|
||||||
Long-term contract assets
|
|
|
||||||
Goodwill and intangible assets — net
|
|
|
||||||
Other assets
|
|
|
||||||
TOTAL ASSETS
|
$
|
|
$
|
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||
Current liabilities:
|
||||||||
Accounts payable and accrued liabilities
|
$
|
|
$
|
|
||||
Customer finished goods returns accrual
|
|
|
||||||
Contract liabilities
|
|
|
||||||
Revolving loan
|
|
|
||||||
Other current liabilities
|
|
|
||||||
Operating lease liabilities
|
|
|
||||||
Current portion of term loan
|
|
|
||||||
Total current liabilities
|
|
|
||||||
Term loan, less current portion
|
|
|
||||||
Long-term contract liabilities
|
|
|
||||||
Long-term deferred income taxes
|
|
|
||||||
Long-term operating lease liabilities
|
|
|
||||||
Other liabilities
|
|
|
||||||
Total liabilities
|
|
|
||||||
Commitments and contingencies
|
||||||||
Shareholders’ equity:
|
||||||||
Preferred stock; par value $
|
|
|
||||||
Series A junior participating preferred stock; par value $
|
|
|
||||||
Common stock; par value $
|
|
|
||||||
Additional paid-in capital
|
|
|
||||||
Retained earnings
|
|
|
||||||
Accumulated other comprehensive loss
|
(
|
)
|
(
|
)
|
||||
Total shareholders’ equity
|
|
|
||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
$
|
|
$
|
|
Three Months Ended | Nine Months Ended | |||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
Net sales
|
$
|
|
$
|
|
$ | $ | ||||||||||
Cost of goods sold
|
|
|
||||||||||||||
Gross profit
|
||||||||||||||||
Operating expenses:
|
||||||||||||||||
General and administrative
|
|
|
||||||||||||||
Sales and marketing
|
|
|
||||||||||||||
Research and development
|
|
|
||||||||||||||
Foreign exchange impact of lease liabilities and forward contracts
|
(
|
)
|
|
( |
) | |||||||||||
Total operating expenses
|
|
|
||||||||||||||
Operating income
|
|
|
||||||||||||||
Interest expense, net
|
|
|
||||||||||||||
(Loss) income before income tax (benefit) expense
|
(
|
)
|
|
( |
) | |||||||||||
Income tax (benefit) expense
|
(
|
)
|
|
( |
) | |||||||||||
Net income (loss)
|
$
|
|
$
|
|
$ | ( |
) | $ | ||||||||
Basic net income (loss) per share
|
$
|
|
$
|
|
$ | ( |
) | $ | ||||||||
Diluted net income (loss) per share
|
$
|
|
$
|
|
$ | ( |
) | $ | ||||||||
Weighted average number of shares outstanding:
|
||||||||||||||||
Basic
|
|
|
||||||||||||||
Diluted
|
|
|
Three Months Ended | Nine Months Ended | |||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
Net income (loss)
|
$
|
|
$
|
|
$ | ( |
) | $ | ||||||||
Other comprehensive income (loss), net of tax:
|
||||||||||||||||
Foreign currency translation gain (loss)
|
|
(
|
)
|
|||||||||||||
Total other comprehensive income (loss), net of tax
|
|
(
|
)
|
|||||||||||||
Comprehensive income (loss)
|
$
|
|
$
|
|
$ | ( |
) | $ |
Common Stock
|
||||||||||||||||||||||||
Shares
|
Amount
|
Additional
Paid-in
Capital
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
(Loss) Income
|
Total
|
|||||||||||||||||||
Balance at March 31, 2022
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||||
Compensation recognized under employee stock plans
|
-
|
|
|
|
|
|
||||||||||||||||||
Exercise of stock options, net of shares withheld for employee taxes
|
|
|
|
|
|
|
||||||||||||||||||
Issuance of common stock upon vesting of RSUs, net of shares withheld for employee taxes
|
|
|
(
|
)
|
|
|
(
|
)
|
||||||||||||||||
Foreign currency translation
|
-
|
|
|
|
(
|
)
|
(
|
)
|
||||||||||||||||
Net loss
|
-
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||
Balance at June 30, 2022
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||||
Compensation recognized under employee stock plans
|
-
|
|||||||||||||||||||||||
Exercise of stock options, net of shares withheld for employee taxes
|
||||||||||||||||||||||||
Issuance of common stock upon vesting of RSUs, net of shares withheld for employee taxes
|
( |
) | ( |
) | ||||||||||||||||||||
Foreign currency translation
|
- | |||||||||||||||||||||||
Net loss
|
- | ( |
) | ( |
) | |||||||||||||||||||
Balance at September 30, 2022
|
$ | $ | $ | $ | ( |
) | $ | |||||||||||||||||
Compensation recognized under employee stock plans
|
-
|
|||||||||||||||||||||||
Exercise of stock options, net of shares withheld for employee taxes
|
||||||||||||||||||||||||
Issuance of common stock upon vesting of RSUs, net of shares withheld for employee taxes
|
( |
) | ||||||||||||||||||||||
Foreign currency translation
|
-
|
|||||||||||||||||||||||
Net income
|
-
|
|||||||||||||||||||||||
Balance at December 31, 2022 | $ | $ | $ | $ | ( |
) | $ |
Common Stock
|
||||||||||||||||||||||||
Shares
|
Amount
|
Additional
Paid-in
Capital
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
(Loss) Income
|
Total
|
|||||||||||||||||||
Balance at March 31,2021
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||||
Compensation recognized under employee stock plans
|
-
|
|
|
|
|
|
||||||||||||||||||
Exercise of stock options, net of shares withheld for employee taxes
|
||||||||||||||||||||||||
Issuance of common stock upon vesting of RSUs, net of shares withheld for employee taxes
|
|
|
(
|
)
|
|
|
(
|
)
|
||||||||||||||||
Foreign currency translation
|
-
|
|
|
|
|
|
||||||||||||||||||
Net income
|
-
|
|
|
|
|
|
||||||||||||||||||
Balance at June 30, 2021
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||||
Compensation recognized under employee stock plans
|
- | |||||||||||||||||||||||
Exercise of stock options, net of shares withheld for employee taxes
|
||||||||||||||||||||||||
Issuance of common stock upon vesting of RSUs, net of shares withheld for employee taxes
|
( |
) | ( |
) | ||||||||||||||||||||
Foreign currency translation
|
-
|
|||||||||||||||||||||||
Net income
|
- | |||||||||||||||||||||||
Balance at September 30, 2021
|
$ | $ | $ | $ | ( |
) | $ | |||||||||||||||||
Compensation recognized under employee stock plans
|
-
|
|||||||||||||||||||||||
Exercise of stock options, net of shares withheld for employee taxes
|
||||||||||||||||||||||||
Issuance of common stock upon vesting of RSUs, net of shares withheld for employee taxes
|
||||||||||||||||||||||||
Repurchase and cancellation of treasury stock, including fees
|
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Foreign currency translation
|
-
|
( |
) | ( |
) | |||||||||||||||||||
Net income
|
-
|
|||||||||||||||||||||||
Balance at December 31, 2021 | $ | $ | $ | $ | ( |
) | $ |
Nine Months Ended | ||||||||
December 31,
|
||||||||
2022
|
2021
|
|||||||
Cash flows from operating activities:
|
||||||||
Net (loss) income
|
$
|
(
|
)
|
$
|
|
|||
Adjustments to reconcile net (loss) income to net cash used in operating activities:
|
||||||||
Depreciation and amortization
|
|
|
||||||
Amortization of interest
|
|
|
||||||
Amortization of core premiums paid to customers
|
|
|
||||||
Amortization of finished goods premiums paid to customers
|
|
|
||||||
Noncash lease expense
|
|
|
||||||
Gain due to the change in the fair value of the contingent consideration
|
|
|
||||||
Foreign exchange impact of lease liabilities and forward contracts
|
(
|
)
|
|
|||||
Loss (gain) on short-term investments
|
|
(
|
)
|
|||||
Net provision for inventory reserves
|
|
|
||||||
Net provision for customer payment discrepancies and credit losses
|
|
|
||||||
Deferred income taxes
|
|
(
|
)
|
|||||
Share-based compensation expense
|
|
|
||||||
Loss on disposal of plant and equipment
|
|
|
||||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
|
|
||||||
Inventory
|
(
|
)
|
(
|
)
|
||||
Prepaid expenses and other current assets
|
(
|
)
|
|
|||||
Other assets
|
|
|
||||||
Accounts payable and accrued liabilities
|
(
|
)
|
(
|
)
|
||||
Customer finished goods returns accrual
|
(
|
)
|
|
|||||
Contract assets, net
|
(
|
)
|
(
|
)
|
||||
Contract liabilities, net
|
|
|
||||||
Operating lease liabilities
|
(
|
)
|
(
|
)
|
||||
Other liabilities
|
(
|
)
|
(
|
)
|
||||
Net cash used in operating activities
|
(
|
)
|
(
|
)
|
||||
Cash flows from investing activities:
|
||||||||
Purchase of plant and equipment
|
(
|
)
|
(
|
)
|
||||
Purchase of short-term investments
|
(
|
)
|
(
|
)
|
||||
Net cash used in investing activities
|
(
|
)
|
(
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Borrowings under revolving loan
|
|
|
||||||
Repayments of revolving loan
|
(
|
)
|
(
|
)
|
||||
Repayments of term loan
|
(
|
)
|
(
|
)
|
||||
Payments for debt issuance costs
|
(
|
)
|
(
|
)
|
||||
Payments on finance lease obligations
|
(
|
)
|
(
|
)
|
||||
Exercise of stock options, net of cash used to pay employee taxes
|
|
|
||||||
Cash used to net share settle equity awards
|
(
|
)
|
(
|
)
|
||||
Repurchase of common stock, including fees
|
( |
) | ||||||
Net cash provided by financing activities
|
|
|
||||||
Effect of exchange rate changes on cash and cash equivalents
|
(
|
)
|
|
|||||
Net decrease in cash and cash equivalents
|
(
|
)
|
(
|
)
|
||||
Cash and cash equivalents — Beginning of period
|
|
|
||||||
Cash and cash equivalents — End of period
|
$
|
|
$
|
|
||||
Supplemental disclosures of cash flow information:
|
||||||||
Cash paid for interest, net
|
$
|
|
$
|
|
||||
Cash paid for income taxes, net of refunds
|
|
|
||||||
Cash paid for operating leases
|
|
|
||||||
Cash paid for finance leases
|
|
|
||||||
Plant and equipment acquired under finance leases
|
|
|
||||||
Assets acquired under operating leases
|
|
|
||||||
Non-cash capital expenditures
|
|
|
|
December 31, 2022
|
March 31, 2022
|
||||||
Accounts receivable — trade
|
$
|
|
$
|
|
||||
Allowance for credit losses
|
(
|
)
|
(
|
)
|
||||
Customer payment discrepancies
|
(
|
)
|
(
|
)
|
||||
Customer returns RGA issued
|
(
|
)
|
(
|
)
|
||||
Total accounts receivable — net
|
$
|
|
$
|
|
|
December 31, 2022
|
March 31, 2022
|
||||||
Inventory
|
||||||||
Raw materials
|
$
|
|
$
|
|
||||
Work-in-process
|
|
|
||||||
Finished goods
|
|
|
||||||
|
|
|
||||||
Less allowance for excess and obsolete inventory
|
(
|
)
|
(
|
)
|
||||
Inventory — net
|
|
|
||||||
Inventory unreturned
|
|
|
||||||
Total inventory
|
$
|
|
$
|
|
|
December 31, 2022
|
March 31, 2022
|
||||||
Short-term contract assets
|
||||||||
Cores expected to be returned by customers
|
$
|
|
$
|
|
||||
Core premiums paid to customers | ||||||||
Upfront payments to customers
|
|
|
||||||
Finished goods premiums paid to customers
|
|
|
||||||
Total short-term contract assets
|
$
|
|
$
|
|
||||
Remanufactured cores held at customers’ locations
|
$
|
|
$
|
|
||||
Core premiums paid to customers | ||||||||
Long-term core inventory deposits | ||||||||
Finished goods premiums paid to customers | ||||||||
Upfront payments to customers
|
|
|
||||||
Total long-term contract assets
|
$
|
|
$
|
|
|
Three Months Ended
December 31,
|
Nine Months
Ended
December 31,
|
||||||||||||||
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
Net sales
|
||||||||||||||||
Customer A
|
|
%
|
|
%
|
|
%
|
|
%
|
||||||||
Customer B
|
|
%
|
|
%
|
|
%
|
|
%
|
||||||||
Customer C
|
|
%
|
|
%
|
|
%
|
|
%
|
||||||||
Customer D |
% | % | % | % |
|
December 31, 2022
|
March 31, 2022
|
||||||
Accounts receivable - trade
|
||||||||
Customer A
|
|
%
|
|
%
|
||||
Customer B
|
|
%
|
|
%
|
||||
Customer C | % | % | ||||||
Customer D |
% | % |
|
Three Months Ended
December 31,
|
Nine Months
Ended
December 31,
|
||||||||||||||
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
Product line |
||||||||||||||||
Rotating electrical products
|
|
%
|
|
%
|
|
%
|
|
%
|
||||||||
Wheel hub products
|
|
%
|
|
%
|
|
%
|
|
%
|
||||||||
Brake-related products
|
|
%
|
|
%
|
|
%
|
|
%
|
||||||||
Other products
|
|
%
|
|
%
|
|
%
|
|
%
|
||||||||
|
|
%
|
|
%
|
|
%
|
|
%
|
|
December 31, 2022
|
March 31, 2022
|
||||||
Principal amount of Term Loans
|
$
|
|
$
|
|
||||
Unamortized financing fees
|
(
|
)
|
(
|
)
|
||||
Net carrying amount of Term Loans
|
|
|
||||||
Less current portion of Term Loans
|
(
|
)
|
(
|
)
|
||||
Long-term portion of Term Loans
|
$
|
|
$
|
|
Year Ending March 31,
|
||||
2023
- remaining three months
|
$
|
|
||
2024
|
|
|||
2025
|
|
|||
2026
|
|
|||
2027
|
|
|||
Total payments
|
$
|
|
|
December 31, 2022
|
March 31, 2022
|
||||||
Short-term contract liabilities
|
||||||||
Customer allowances earned
|
$
|
|
$
|
|
||||
Customer core returns accruals
|
|
|
||||||
Customer deposits
|
|
|
||||||
Accrued core payment
|
|
|
||||||
Core bank liability
|
|
|
||||||
Finished goods liabilities
|
|
|
||||||
Total short-term contract liabilities
|
$
|
|
$
|
|
||||
|
||||||||
Long-term contract liabilities
|
||||||||
Customer core returns accruals
|
$
|
|
$
|
|
||||
Core bank liability
|
|
|
||||||
Accrued core payment
|
|
|
||||||
Finished goods liabilities
|
|
|
||||||
Customer allowances earned
|
|
|
||||||
Total long-term contract liabilities
|
$
|
|
$
|
|
Leases
|
Classification
|
December 31, 2022
|
March 31, 2022
|
|||||||
Assets:
|
|
|||||||||
Operating
|
|
$
|
|
$
|
|
|||||
Finance
|
|
|
|
|||||||
Total leased assets
|
|
$
|
|
$
|
|
|||||
|
|
|||||||||
Liabilities:
|
|
|||||||||
Current
|
|
|||||||||
Operating
|
|
$
|
|
$
|
|
|||||
Finance
|
|
|
|
|||||||
Long-term
|
|
|||||||||
Operating
|
|
|
|
|||||||
Finance
|
|
|
|
|||||||
Total lease liabilities
|
|
$
|
|
$
|
|
Three Months Ended
|
Nine Months
Ended |
|||||||||||||||
|
December 31,
|
December 31, |
||||||||||||||
|
2022
|
2021
|
2022 |
2021 |
||||||||||||
Lease cost
|
||||||||||||||||
Operating lease cost
|
$
|
|
$
|
|
$ |
$ |
||||||||||
Short-term lease cost
|
|
|
||||||||||||||
Variable lease cost
|
|
|
||||||||||||||
Finance lease cost:
|
||||||||||||||||
Amortization of finance lease assets
|
|
|
||||||||||||||
Interest on finance lease liabilities
|
|
|
||||||||||||||
Total lease cost
|
$
|
|
$
|
|
$ |
$ |
Maturity of lease liabilities
|
Operating Leases
|
Finance Leases
|
Total
|
|||||||||
2023
- remaining three months
|
$
|
|
$
|
|
$
|
|
||||||
2024
|
|
|
|
|||||||||
2025
|
|
|
|
|||||||||
2026
|
|
|
|
|||||||||
2027
|
|
|
|
|||||||||
Thereafter
|
|
|
|
|||||||||
Total lease payments
|
|
|
|
|||||||||
Less amount representing interest
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Present value of lease liabilities
|
$
|
|
$
|
|
$
|
|
|
December 31, 2022
|
March 31, 2022
|
||||||
Lease term and discount rate
|
||||||||
Weighted-average remaining lease term (years):
|
||||||||
Finance leases
|
|
|
||||||
Operating leases
|
|
|
||||||
Weighted-average discount rate:
|
||||||||
Finance leases
|
|
%
|
|
%
|
||||
Operating leases
|
|
%
|
|
%
|
Nine Months
Ended
|
||||||||
|
December 31,
|
|||||||
|
2022
|
2021
|
||||||
Receivables discounted
|
$
|
|
$
|
|
||||
Weighted average number of days collection was accelerated
|
|
|
||||||
Annualized weighted average discount rate
|
|
%
|
|
%
|
||||
Amount of discount recognized as interest expense
|
$
|
|
$
|
|
Three Months Ended | Nine
Months Ended |
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
Net income (loss)
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||
Basic shares
|
|
|
|
|
||||||||||||
Effect of potentially dilutive securities
|
|
|
|
|
||||||||||||
Diluted shares
|
|
|
|
|
||||||||||||
Net income (loss) per share:
|
||||||||||||||||
Basic net income (loss) per
share
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||
Diluted net income (loss) per
share
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
Gain (Loss) Recognized as Foreign Exchange Impact
of Lease Liabilities and Forward Contracts
|
||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
Derivatives Not Designated as
|
December 31,
|
December 31,
|
||||||||||||||
Hedging Instruments
|
2022
|
2021
|
2022 |
2021
|
||||||||||||
Forward foreign currency exchange contracts
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
December 31, 2022
|
March 31, 2022
|
|||||||||||||||||||||||||||||||
Fair Value Measurements
|
Fair Value Measurements
|
|||||||||||||||||||||||||||||||
Using Inputs Considered as
|
Using Inputs Considered as
|
|||||||||||||||||||||||||||||||
Fair Value
|
Level 1
|
Level 2
|
Level 3
|
Fair Value
|
Level 1
|
Level 2
|
Level 3
|
|||||||||||||||||||||||||
Assets
|
||||||||||||||||||||||||||||||||
Short-term investments Mutual funds
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Prepaid expenses and other current assets Forward foreign currency
exchange contracts
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Liabilities
|
||||||||||||||||||||||||||||||||
Other current liabilities
|
||||||||||||||||||||||||||||||||
Deferred compensation
|
|
|
|
|
|
|
|
|
|
Number of
Shares
|
Weighted Average
Exercise Price
|
||||||
Outstanding at March 31, 2022
|
|
$
|
|
|||||
Granted
|
|
$
|
|
|||||
Exercised
|
(
|
)
|
$
|
|
||||
Forfeited/Cancelled
|
(
|
)
|
$
|
|
||||
Expired
|
( |
) | $ | |||||
Outstanding at December 31, 2022
|
|
$
|
|
|
Number of
Shares
|
Weighted Average
Grant Date Fair
Value
|
||||||
Outstanding at March 31, 2022
|
|
$
|
|
|||||
Granted
|
|
$
|
|
|||||
Vested
|
(
|
)
|
$
|
|
||||
Forfeited/Cancelled
|
(
|
)
|
$
|
|
||||
Outstanding at December 31, 2022
|
|
$
|
|
Nine Months Ended
December 31,
|
||||||||
|
2022
|
2021 |
||||||
Risk free interest rate
|
|
|
%
|
% | ||||
Expected life in years
|
|
|||||||
Expected volatility of MPA common stock
|
|
%
|
% | |||||
Expected average volatility of peer companies
|
|
%
|
% | |||||
Average correlation coefficient of peer companies
|
|
%
|
||||||
Expected dividend yield
|
|
|||||||
Grant date fair value
|
$
|
|
$ |
|
Number of
Shares
|
Weighted Average
Grant Date Fair
Value
|
||||||
Outstanding at March 31, 2022
|
|
$
|
|
|||||
Granted
|
|
$
|
|
|||||
Vested
|
|
$
|
|
|||||
Forfeited
|
(
|
)
|
$
|
|
||||
Outstanding at December 31, 2022
|
|
$
|
|
|
Three Months Ended
December 31,
|
Nine Months
Ended
December 31,
|
||||||||||||||
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
Balance at beginning of period
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Charged to expense
|
|
|
|
|
||||||||||||
Amounts processed
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Balance at end of period
|
$
|
|
$
|
|
$
|
|
$
|
|
Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
Three Months Ended
December 31,
|
||||||||
2022
|
2021
|
|||||||
Cash flow (used in) provided by operations
|
$
|
(4,474,000
|
)
|
$
|
2,165,000
|
|||
Finished goods turnover (annualized) (1)
|
3.1
|
4.0
|
(1) |
Annualized finished goods turnover for the fiscal quarter is calculated by multiplying cost of goods sold for the quarter by 4 and dividing the result by the average between beginning and ending non-core finished goods inventory values
for the fiscal quarter. We believe this provides a useful measure of our ability to turn our inventory into revenues. Our finished goods turnover ratio for the three months ended December 31, 2022 was impacted by our investment in inventory
to address disruptions related to the global supply chain and logistics challenges to meet higher anticipated future sales.
|
Three Months Ended
December 31,
|
||||||||
2022
|
2021
|
|||||||
Net sales
|
$
|
151,819,000
|
$
|
161,810,000
|
||||
Cost of goods sold
|
130,826,000
|
129,235,000
|
||||||
Gross profit
|
20,993,000
|
32,575,000
|
||||||
Gross profit percentage
|
13.8
|
%
|
20.1
|
%
|
Three Months Ended
December 31,
|
||||||||
2022
|
2021
|
|||||||
General and administrative
|
$
|
13,599,000
|
$
|
14,605,000
|
||||
Sales and marketing
|
5,634,000
|
6,274,000
|
||||||
Research and development
|
2,547,000
|
2,635,000
|
||||||
Foreign exchange impact of lease liabilities and forward contracts
|
(4,313,000
|
)
|
385,000
|
|||||
Percent of net sales
|
||||||||
General and administrative
|
9.0
|
%
|
9.0
|
%
|
||||
Sales and marketing
|
3.7
|
%
|
3.9
|
%
|
||||
Research and development
|
1.7
|
%
|
1.6
|
%
|
||||
Foreign exchange impact of lease liabilities and forward contracts
|
(2.8
|
)%
|
0.2
|
%
|
Nine Months Ended
December 31,
|
||||||||
2022
|
2021
|
|||||||
Cash flow used in operations
|
$
|
(21,428,000
|
)
|
$
|
(22,174,000
|
)
|
||
Finished goods turnover (annualized) (1)
|
3.3
|
4.2
|
(1) |
Annualized finished goods turnover for the fiscal period is calculated by multiplying cost of goods sold for the period by 1.33 and dividing the result by the average between beginning and ending non-core finished goods inventory values
for the fiscal period. We believe this provides a useful measure of our ability to turn our inventory into revenues. Our finished goods turnover ratio for the nine months ended December 31, 2022 was impacted by our investment in inventory
to address disruptions related to the global supply chain and logistics challenges to meet higher anticipated future sales.
|
Nine Months Ended
December 31,
|
||||||||
2022
|
2021
|
|||||||
Net sales
|
$
|
488,347,000
|
$
|
486,392,000
|
||||
Cost of goods sold
|
410,536,000
|
394,295,000
|
||||||
Gross profit
|
77,811,000
|
92,097,000
|
||||||
Gross profit percentage
|
15.9
|
%
|
18.9
|
%
|
Nine Months Ended
December 31,
|
||||||||
2022
|
2021
|
|||||||
General and administrative
|
$
|
42,079,000
|
$
|
41,556,000
|
||||
Sales and marketing
|
17,242,000
|
17,162,000
|
||||||
Research and development
|
8,330,000
|
7,631,000
|
||||||
Foreign exchange impact of lease liabilities and forward contracts
|
(2,553,000
|
)
|
1,769,000
|
|||||
Percent of net sales
|
||||||||
General and administrative
|
8.6
|
%
|
8.5
|
%
|
||||
Sales and marketing
|
3.5
|
%
|
3.5
|
%
|
||||
Research and development
|
1.7
|
%
|
1.6
|
%
|
||||
Foreign exchange impact of lease liabilities and forward contracts
|
(0.5
|
)%
|
0.4
|
%
|
Nine Months Ended
December 31,
|
||||||||
2022
|
2021
|
|||||||
Cash flows (used in) provided by:
|
||||||||
Operating activities
|
$
|
(21,428,000
|
)
|
$
|
(22,174,000
|
)
|
||
Investing activities
|
(3,855,000
|
)
|
(5,426,000
|
)
|
||||
Financing activities
|
14,898,000
|
19,770,000
|
||||||
Effect of exchange rates on cash and cash equivalents
|
(52,000
|
)
|
76,000
|
|||||
Net decrease in cash and cash equivalents
|
$
|
(10,437,000
|
)
|
$
|
(7,754,000
|
)
|
||
Additional selected cash flow data:
|
||||||||
Depreciation and amortization
|
$
|
9,322,000
|
$
|
9,591,000
|
||||
Capital expenditures
|
3,607,000
|
5,111,000
|
Nine Months Ended
December 31,
|
||||||||
2022
|
2021
|
|||||||
Receivables discounted
|
$
|
428,868,000
|
$
|
418,044,000
|
||||
Weighted average number of days collection was accelerated
|
323
|
335
|
||||||
Annualized weighted average discount rate
|
5.0
|
%
|
1.7
|
%
|
||||
Amount of discount recognized as interest expense
|
$
|
19,131,000
|
$
|
6,798,000
|
Item 3. |
Quantitative and Qualitative Disclosures About Market Risk
|
Item 4. |
Controls and Procedures
|
Item 1. |
Legal Proceedings
|
Item 1A. |
Risk Factors
|
Item 2. |
Unregistered Sales of Equity Securities and Use of Proceeds
|
Periods
|
Total Number of Shares Purchased
|
Average Price Paid Per Share
|
Total Number of
Shares Purchased
as Part of Publicly
Announced Plans
or Programs
|
Approximate
Dollar Value of
Shares That May
Yet Be Purchased
Under the Plans
or Programs (1)
|
||||||||||||
October 1 - October 31, 2022:
|
||||||||||||||||
Open market and privately negotiated purchases
|
-
|
$
|
-
|
-
|
$
|
18,255,000
|
||||||||||
November 1 - November 30, 2022:
|
||||||||||||||||
Open market and privately negotiated purchases
|
-
|
$
|
-
|
-
|
18,255,000
|
|||||||||||
December 1 - December 31, 2022:
|
||||||||||||||||
Open market and privately negotiated purchases
|
-
|
$
|
-
|
-
|
18,255,000
|
|||||||||||
Total
|
0
|
0
|
$
|
18,255,000
|
(1) |
As of December 31, 2022, $18,745,000 was utilized and $18,255,000 remains available to repurchase shares under the authorized share repurchase program, subject to the limit in our Credit Facility. We retired the 837,007 shares
repurchased under this program through December 31, 2022. Our share repurchase program does not obligate us to acquire any specific number of shares and shares may be repurchased in privately negotiated and/or open market transactions.
|
Item 3. |
Defaults Upon Senior Securities
|
Item 5. |
Other Information
|
Item 6. |
Exhibits
|
(a) |
Exhibits:
|
Number
|
Description of Exhibit
|
Method of Filing
|
||
3.1
|
Certificate of Incorporation of the Company
|
Incorporated by reference to Exhibit 3.1 to the Company’s Registration Statement on Form SB-2 declared effective on March 22, 1994 (the “1994 Registration Statement”).
|
||
3.2
|
Amendment to Certificate of Incorporation of the Company
|
Incorporated by reference to Exhibit 3.2 to the Company’s Registration Statement on Form S-1 (No. 33-97498) declared effective on November 14, 1995.
|
||
3.3
|
Amendment to Certificate of Incorporation of the Company
|
|||
3.4
|
Amendment to Certificate of Incorporation of the Company
|
|||
3.5
|
Amendment to Certificate of Incorporation of the Company
|
|||
3.6
|
Amended and Restated By-Laws of Motorcar Parts of America, Inc.
|
|||
3.7
|
Certificate of Amendment of the Certificate of Incorporation of the Company
|
|||
3.8
|
Amendment to the Amended and Restated By-Laws of Motorcar Parts of America, Inc., as adopted on June 9, 2016
|
|||
3.9
|
Amendment to the Amended and Restated By-Laws of the Company
|
|||
3.10
|
Third Amendment to the Amended and Restated By-Laws of Motorcar Parts of America, Inc., as adopted on January 26, 2022
|
|||
4.1
|
Description of the Registrant’s Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934
|
|||
4.2
|
2004 Non-Employee Director Stock Option Plan
|
|||
4.3
|
2010 Incentive Award Plan
|
|||
4.4
|
Amended and Restated 2010 Incentive Award Plan
|
Number
|
Description of Exhibit
|
Method of Filing
|
||
4.5
|
Second Amended and Restated 2010 Incentive Award Plan
|
|||
4.6
|
2014 Non-Employee Director Incentive Award Plan
|
|||
4.7
|
Third Amended and Restated 2010 Incentive Award Plan
|
|||
4.8
|
Fourth Amended and Restated 2010 Incentive Award Plan
|
|||
4.9
|
2022 Incentive Award Plan
|
|||
10.1
|
Fourth Amendment to Amended and Restated Loan Agreement, dated as of November 3, 2022, among Motorcar Parts of America, Inc., D&V Electronics Ltd., Dixie Electric Ltd., Dixie Electric Inc., each lender from time to time party
thereto, and PNC Bank, National Association, as administrative agent
|
|||
Fifth Amendment to Amended and Restated Loan Agreement, dated as of February 3, 2023, among Motorcar Parts of America, Inc., D&V Electronics Ltd., Dixie Electric Ltd., Dixie Electric Inc., each lender from time to time party
thereto, and PNC Bank, National Association, as administrative agent
|
Filed herewith
|
|||
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002
|
Filed herewith.
|
|||
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002
|
Filed herewith.
|
|||
Certification of Chief Accounting Officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002
|
Filed herewith.
|
|||
Certifications of Chief Executive Officer, Chief Financial Officer and Chief Accounting Officer pursuant to Section 906 of the Sarbanes Oxley Act of 2002
|
Filed herewith.
|
|||
Number
|
Description of Exhibit
|
Method of Filing
|
||
101.INS
|
Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the inline XBRL document).
|
|||
101.SCM
|
Inline XBRL Taxonomy Extension Schema Document
|
|||
101.CAL
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document
|
|||
101.DEF
|
Inline XBRL Taxonomy Extension Definition Linkbase Document
|
|||
101.LAB
|
Inline XBRL Taxonomy Extension Label Linkbase Document
|
|||
101.PRE
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document
|
|||
104
|
Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)
|
MOTORCAR PARTS OF AMERICA, INC.
|
||
Dated: February 9, 2023
|
By:
|
/s/ David Lee
|
David Lee
|
||
Chief Financial Officer
|
||
Dated: February 9, 2023
|
By:
|
/s/ Kamlesh Shah
|
Kamlesh Shah
|
||
Chief Accounting Officer
|
TOTAL
LEVERAGE
RATIO
|
APPLICABLE MARGINS FOR
DOMESTIC RATE LOANS
|
APPLICABLE MARGINS FOR
TERM SOFR RATE LOANS
|
||
Revolving Advances, Swing Loans
|
Term Loan
|
Revolving Advances
|
Term Loan
|
|
Less than or equal to 0.50 to 1.00
|
1.25%
|
1.25%
|
2.25%
|
2.25%
|
Greater than 0.50 to 1.00 but less than 1.50 to 1.00
|
1.50%
|
1.50%
|
2.50%
|
2.50%
|
Greater than or equal to 1.50 to 1.00
|
1.75%
|
1.75%
|
2.75%
|
2.75%
|
TOTAL
LEVERAGE
RATIO
|
APPLICABLE MARGINS FOR
DOMESTIC RATE LOANS
|
APPLICABLE MARGINS FOR
TERM SOFR RATE LOANS
|
||
Revolving Advances, Swing Loans
|
Term Loan
|
Revolving Advances
|
Term Loan
|
|
Less than or equal to 0.50 to 1.00
|
1.75%
|
1.75%
|
2.75%
|
2.75%
|
Greater than 0.50 to 1.00 but less than 1.50 to 1.00
|
2.00%
|
2.00%
|
3.00%
|
3.00%
|
Greater than or equal to 1.50 to 1.00
|
2.25%
|
2.25%
|
3.25%
|
3.25%
|
(a) |
Fixed Charge Coverage Ratio. Cause to be maintained as of the end of each fiscal quarter, (i) beginning with the fiscal quarter ended March 31, 2018, a Fixed Charge
Coverage Ratio of not less than 1.15 to 1.0, (ii) commencing with the fiscal quarter ended June 30, 2018, a Fixed Charge Coverage Ratio of not less than 1.1 to 1.0, (iii) for the fiscal quarter ended June 30, 2022, a Fixed Charge
Coverage Ratio of not less than 1.15 to 1.0, (iv) for the fiscal quarter ended September 30, 2022, a Fixed Charge Coverage Ratio of not less than 1.01 to 1.0, (v) for the fiscal quarter ended December 31, 2022, a Fixed Charge Coverage
Ratio of not less than 1.05 to 1.0, (vi) for the fiscal quarters ending March 31, 2023 and June 30, 2023, a Fixed Charge Coverage Ratio of not less than 1.01 to 1.0, and (vii) for the fiscal quarter ending September 30, 2023 and
thereafter, a Fixed Charge Coverage Ratio of not less than 1.15 to 1.0, in each case, measured on a rolling four (4) quarter basis.
|
(b) |
Total Leverage Ratio. Maintain as of end of each fiscal quarter, (i) beginning with the fiscal quarter ended March 31, 2018, a Total Leverage Ratio of not greater than
2.5 to 1.0, (ii) commencing with the fiscal quarter ended June 30, 2018, a Total Leverage Ratio of not greater than 3.0 to 1.0, (iii) for the fiscal quarter ended September 30, 2022, a Total Leverage Ratio of not greater than 3.25 to
1.0, (iv) for the fiscal quarter ended December 31, 2022, a Total Leverage Ratio of not greater than 3.0 to 1.0, (v) for the fiscal quarter ending March 31, 2023, a Total Leverage Ratio of not greater than 3.50 to 1.0, (vi) for the
fiscal quarter ending June 30, 2023, a Total Leverage Ratio of not greater than 3.25 to 1.0 and (vii) for the fiscal quarter ending September 30, 2023 and thereafter, a Total Leverage Ratio of not greater than 3.0 to 1.0, in each
case, measured on a rolling four (4) quarter basis.
|
(c) |
Minimum Undrawn Availability. Maintain at all times Unsuppressed Undrawn Availability of not less than 17.5% of the Maximum Revolving Advance Amount which, as of the
Fifth Amendment Effective Date, equals $41,758,500; provided, however, that compliance with this covenant shall cease to be required if the Compliance Certificates for the fiscal quarters ended March 31, 2023 and June
30, 2023 show compliance with the requirements of Sections 6.5 and 7.7 as of the end of such fiscal quarters.”
|
US BORROWER:
|
||
MOTORCAR PARTS OF AMERICA, INC.
|
||
By:
|
/s/ Selwyn Joffe
|
Name:
|
Selwyn Joffe
|
|
Title:
|
President and Chief Executive Officer
|
CANADIAN BORROWERS:
|
||
D & V ELECTRONICS LTD.
|
||
By:
|
/s/ Kalina Loukanov
|
Name:
|
Kalina Loukanov
|
|
Title:
|
Acting Chief Executive Officer
|
DIXIE ELECTRIC LTD.
|
||
By:
|
/s/ Selwyn Joffe
|
Name:
|
Selwyn Joffe
|
|
Title:
|
Chief Executive Officer
|
|
DIXIE ELECTRIC INC.
|
By:
|
/s/ Selwyn Joffe
|
Name:
|
Selwyn Joffe
|
|
Title:
|
Chief Executive Officer
|
AGENT AND LENDER:
|
||
PNC BANK, NATIONAL ASSOCIATION
|
||
By:
|
/s/ Albert Sarkis
|
Name:
|
Albert Sarkis
|
|
Title:
|
Senior Vice President
|
WEBSTER BUSINESS CREDIT, A
DIVISION OF WEBSTER BANK, N.A.
|
||
By:
|
/s/ John R. Saffioti
|
Name:
|
John R. Saffioti
|
|
Title:
|
Director
|
BANK HAPOALIM B.M.
|
||
By:
|
/s/ John Yoler
|
Name:
|
John Yoler
|
|
Title:
|
EVP
|
|
By:
|
/s/ Michael Gorman III
|
Name:
|
Michael Gorman III
|
|
Title:
|
FVP
|
CATHAY BANK
|
||
By:
|
/s/ James Campbell
|
Name:
|
James Campbell
|
|
Title:
|
First Vice President
|
ISRAEL DISCOUNT BANK OF NEW YORK
|
||
By:
|
/s/ Frank Mancini
|
Name:
|
Frank Mancini
|
|
Title:
|
First Vice President
|
|
By:
|
/s/ Richard Miller
|
Name:
|
Richard Miller
|
|
Title:
|
Senior Vice President
|
Date: February 9, 2023
|
/s/ Selwyn Joffe
|
Selwyn Joffe
|
|
Chief Executive Officer
|
Date: February 9, 2023
|
/s/ David Lee
|
David Lee
|
|
Chief Financial Officer
|
Date: February 9, 2023
|
/s/ Kamlesh Shah
|
Kamlesh Shah
|
|
Chief Accounting Officer
|
1. |
The Quarterly Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities and Exchange Act of 1934; and
|
2. |
The information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Selwyn Joffe
|
|
Selwyn Joffe
|
|
Chief Executive Officer
|
|
February 9, 2023
|
1. |
The Quarterly Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities and Exchange Act of 1934; and
|
2. |
The information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ David Lee
|
|
David Lee
|
|
Chief Financial Officer
|
|
February 9, 2023
|
1. |
The Quarterly Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities and Exchange Act of 1934; and
|
2. |
The information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Kamlesh Shah
|
|
Kamlesh Shah
|
|
Chief Accounting Officer
|
|
February 9, 2023
|
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares |
Dec. 31, 2022 |
Mar. 31, 2022 |
---|---|---|
Shareholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, issued (in shares) | 19,490,859 | 19,104,751 |
Common stock, outstanding (in shares) | 19,490,859 | 19,104,751 |
Series A Junior Participating Preferred Stock [Member] | ||
Shareholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 20,000 | 20,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Condensed Consolidated Statements of Operations - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Condensed Consolidated Statements of Operations [Abstract] | ||||
Net sales | $ 151,819,000 | $ 161,810,000 | $ 488,347,000 | $ 486,392,000 |
Cost of goods sold | 130,826,000 | 129,235,000 | 410,536,000 | 394,295,000 |
Gross profit | 20,993,000 | 32,575,000 | 77,811,000 | 92,097,000 |
Operating expenses: | ||||
General and administrative | 13,599,000 | 14,605,000 | 42,079,000 | 41,556,000 |
Sales and marketing | 5,634,000 | 6,274,000 | 17,242,000 | 17,162,000 |
Research and development | 2,547,000 | 2,635,000 | 8,330,000 | 7,631,000 |
Foreign exchange impact of lease liabilities and forward contracts | (4,313,000) | 385,000 | (2,553,000) | 1,769,000 |
Total operating expenses | 17,467,000 | 23,899,000 | 65,098,000 | 68,118,000 |
Operating income | 3,526,000 | 8,676,000 | 12,713,000 | 23,979,000 |
Interest expense, net | 11,471,000 | 3,949,000 | 27,675,000 | 11,510,000 |
(Loss) income before income tax (benefit) expense | (7,945,000) | 4,727,000 | (14,962,000) | 12,469,000 |
Income tax (benefit) expense | (8,971,000) | 1,588,000 | (9,296,000) | 4,786,000 |
Net income (loss) | $ 1,026,000 | $ 3,139,000 | $ (5,666,000) | $ 7,683,000 |
Basic net income (loss) per share (in dollars per share) | $ 0.05 | $ 0.16 | $ (0.29) | $ 0.4 |
Diluted net income (loss) per share (in dollars per share) | $ 0.05 | $ 0.16 | $ (0.29) | $ 0.39 |
Weighted average number of shares outstanding: | ||||
Basic (in shares) | 19,474,871 | 19,184,339 | 19,383,531 | 19,124,824 |
Diluted (in shares) | 19,634,153 | 19,544,174 | 19,383,531 | 19,604,780 |
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Condensed Consolidated Statements of Comprehensive Income (Loss) [Abstract] | ||||
Net income (loss) | $ 1,026,000 | $ 3,139,000 | $ (5,666,000) | $ 7,683,000 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation gain (loss) | 2,123,000 | (414,000) | 1,942,000 | 2,030,000 |
Total other comprehensive income (loss), net of tax | 2,123,000 | (414,000) | 1,942,000 | 2,030,000 |
Comprehensive income (loss) | $ 3,149,000 | $ 2,725,000 | $ (3,724,000) | $ 9,713,000 |
Company Background and Organization |
9 Months Ended |
---|---|
Dec. 31, 2022 | |
Company Background and Organization [Abstract] | |
Company Background and Organization |
1. Company Background and Organization
Motorcar Parts of America, Inc. and its subsidiaries (the “Company”, or “MPA”) is a leading supplier of automotive aftermarket non-discretionary replacement
parts, and test solutions and diagnostic equipment. These replacement parts are primarily sold to automotive retail chain stores and warehouse distributors throughout North America and to major automobile manufacturers for both their aftermarket
programs and warranty replacement programs (“OES”). The Company’s test solutions and diagnostic equipment primarily serves the global automotive component and powertrain testing market. The Company’s products include (i) rotating electrical products
such as alternators and starters, (ii) wheel hub assemblies and bearings, (iii) brake-related products, which include brake calipers, brake boosters, brake rotors, brake pads, and brake master cylinders, and (iv) other products, which include (a)
turbochargers and (b) test solutions and diagnostic equipment used for electric vehicle powertrain development and manufacturing including electric motor test systems, e-axle test systems, advanced power emulators, charging unit test systems, test
systems for alternators and starters, belt starter generators, bench-top testers, and specialized test services for electric vehicle inverters.
Pursuant to the guidance provided under the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) for segment reporting, the
Company has identified its chief operating decision maker (“CODM”), reviewed the documents used by the CODM, and understands how such documents are used by the CODM to make financial and operating decisions. The Company has determined through this
review process that its business comprises three separate operating segments. The operating segments meet all the criteria to be
aggregated and are presented as such.
Impact of the COVID-19 Pandemic
The COVID-19 pandemic continues to adversely impact the U.S. and global economies – creating uncertainty regarding the potential effects on the supply chain
disruptions, rate of inflation, increasing interest rates, and customer demand. The extent to which these may impact the Company will depend on numerous factors and future developments, which are highly uncertain and cannot be predicted. The Company
may continue to experience adverse impacts to its business because of an economic recession or depression that has occurred or may occur in the future.
|
Basis of Presentation and New Accounting Pronouncements |
9 Months Ended |
---|---|
Dec. 31, 2022 | |
Basis of Presentation and New Accounting Pronouncements [Abstract] | |
Basis of Presentation and New Accounting Pronouncements |
2. Basis of Presentation and New Accounting Pronouncements
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles
(“GAAP”) for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all
adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended December 31, 2022 are not necessarily indicative of the results that may be
expected for the fiscal year ending March 31, 2023. This report should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the fiscal year ended March 31, 2022, which are included in the
Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on June 14, 2022.
The accompanying condensed consolidated financial statements have been prepared
on a consistent basis with, and there have been no material changes to the accounting policies described in Note 2, Summary of Significant Accounting Policies, to
the consolidated financial statements that are presented in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2022.
|
Accounts Receivable - Net |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable - Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable - Net |
3. Accounts Receivable — Net
The Company has trade accounts receivable that result from the sale of goods and services. Accounts receivable — net includes offset accounts related to
allowances for credit losses, customer payment discrepancies, and returned goods authorizations (“RGAs”) issued for in-transit unit returns. The Company uses receivable discount programs with certain customers and their respective banks (see Note
10).
Accounts receivable — net is comprised of the following:
|
Inventory |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory |
4. Inventory
Inventory is comprised of the following:
|
Contract Assets |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract Assets |
5. Contract Assets
During the three months ended December 31, 2022 and 2021, the Company reduced the
carrying value of Remanufactured Cores held at customers’ locations by $863,000 and $846,000,
respectively. During
the nine months ended December 31, 2022 and 2021, the Company reduced the carrying value of Remanufactured Cores held at customers’ locations by $2,704,000
and $3,517,000, respectively.
Contract assets are comprised of the following:
|
Significant Customer and Other Information |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Customer and Other Information [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Customer and Other Information |
6. Significant Customer and Other Information
Significant Customer Concentrations
The largest customers accounted for the following percentage of net sales:
The largest customers accounted for the following percentage of accounts receivable – trade:
Geographic and Product Information
The Company’s products are sold predominantly in the U.S. and accounted for the following percentages of net sales:
Significant Supplier Concentrations
The Company had no suppliers that accounted for more than 10% of inventory purchases for the three and nine months ended December 31, 2022 and 2021.
|
Debt |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt |
7. Debt
The Company is party to a $268,620,000 senior
secured financing, (as amended from time to time, the “Credit Facility”) with a syndicate of lenders and PNC Bank, National Association, as administrative agent, consisting of (i) a $238,620,000 revolving loan facility, subject to borrowing base restrictions, a $24,000,000
sublimit for borrowings by Canadian borrowers, and a $20,000,000 sublimit for letters of credit (the “Revolving Facility”) and (ii) a $30,000,000 term loan facility (the “Term Loans”). The loans under the Credit Facility mature on May 28, 2026. The Credit Facility currently permits the payment of up to $29,043,000
of dividends and share repurchases for fiscal year 2023, subject to pro forma compliance with financial covenants. In connection with the Credit Facility, the lenders have a security interest in substantially all of the assets of the Company.
The Term Loans require quarterly principal payments of $937,500. The Credit Facility bears interest at rates equal
to either SOFR (as defined below) plus a margin of 2.25%, 2.50% or 2.75% or a reference rate plus a margin of 1.25%, 1.50% or 1.75%, in each case depending on the senior leverage ratio as of the applicable measurement date. There is also a facility fee of 0.375% to 0.50%, depending on the senior
leverage ratio as of the applicable measurement date. The interest rate on the Company’s Term Loans and Revolving Facility was 6.98% and
7.16% respectively, at December 31, 2022, and 2.99% and 3.13% respectively, at March 31, 2022.
The Credit Facility, among other things, requires the Company to maintain certain financial covenants including a maximum senior leverage
ratio and a minimum fixed charge coverage ratio. In addition, the Credit Facility places limits on the Company’s ability to incur liens, incur additional indebtedness, make loans and investments, engage in mergers and acquisitions, engage in
asset sales, redeem, or repurchase capital stock, alter the business conducted by the Company and its subsidiaries, transact with affiliates, prepay, redeem, or purchase subordinated debt, and amend or otherwise alter debt agreements.
On November 3, 2022, the Company entered into a fourth amendment to the Credit Facility (the “Fourth Amendment”). The Fourth Amendment,
among other things, (i) modified the fixed charge coverage ratio financial covenant for the fiscal quarters ending September 30, 2022 and December 31, 2022, (ii) modified the total leverage ratio financial covenant for the fiscal quarter ending
September 30, 2022, (iii) modified the definition of “Consolidated EBITDA”, and (iv) replaced LIBOR as the benchmark rate with a replacement benchmark based on the Secured Overnight Financing Rate (“SOFR”) effective beginning November 3, 2022.
The modifications to the financial covenants were effective as of September 30, 2022.
As of December 31, 2022, the Company identified certain defaults with respect to
the Credit Facility, which arose from non-compliance with certain financial covenants. On February 3, 2023, the Company entered into a fifth amendment to the Credit Facility (the “Fifth Amendment”). The Fifth Amendment, among other things, (i)
waived certain existing defaults and events of default arising from non-compliance with the fixed charge coverage ratio and senior leverage ratio financial covenants as of the end of the fiscal quarter ended December 31, 2022, (ii) modified the
fixed charge coverage ratio and senior leverage ratio financial covenants for the quarters ending March 31, 2023 and June 30, 2023, (iii) modified the definitions of “Applicable Margin” and “Consolidated EBITDA”, and (iv) added a new minimum
undrawn availability financial covenant.
The following summarizes information about the Term Loans:
Future repayments of the Term Loans are as follows:
The Company had $175,000,000 and $155,000,000 outstanding under the Revolving Facility at December 31, 2022 and March 31, 2022, respectively. In addition, $6,370,000 was outstanding for letters of credit at December
31, 2022. At December 31, 2022, after certain contractual adjustments, $57,250,000 was available under the Revolving Facility.
|
Contract Liabilities |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract Liabilities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract Liabilities |
8. Contract Liabilities
Contract liabilities are comprised of the following:
|
Leases |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases |
9. Leases
The Company leases various facilities in North America and Asia under operating leases expiring through August 2033. The Company has material nonfunctional currency leases that could have a material impact on the Company’s
condensed consolidated statements of operations. As required for other monetary liabilities, lessees remeasure foreign currency-denominated lease liabilities using the exchange rate at each reporting date, but the lease assets are nonmonetary
assets measured at historical rates and are not affected by subsequent changes in the exchange rates. In connection with the remeasurement of these leases, the Company recorded a gain of $3,129,000 and a loss of $985,000 during the three months ended December 31,
2022 and 2021, respectively. During the nine months ended December 31, 2022 and 2021, the Company recorded gains of $2,108,000 and $64,000, respectively, in connection with the remeasurement of
these leases. These amounts are included in “foreign exchange impact of lease liabilities and forward contracts” in the condensed consolidated statements of operations.
Balance sheet information for leases is as follows:
Lease cost recognized in the condensed consolidated statements of operations is as follows:
Maturities of lease commitments at December 31, 2022
by fiscal year were as follows:
Other information about leases is as follows:
|
Accounts Receivable Discount Programs |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable Discount Programs [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable Discount Programs |
10. Accounts Receivable Discount Programs
The Company uses receivable discount programs with certain customers and their respective banks. Under these programs, the Company may sell those customers’
receivables to those banks at a discount to be agreed upon at the time the receivables are sold. These discount arrangements allow the Company to accelerate receipt of payment on customers’ receivables.
The following is a summary of accounts receivable discount programs:
|
Net Income (Loss) per Share |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income (Loss) per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income (Loss) per Share |
11. Net Income (Loss) per Share
Basic net income (loss) per share is computed by dividing net income (loss) by
the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per share includes the effect, if any, from the potential exercise or conversion of securities, such as stock options, which would result in the issuance of incremental shares of common stock to the extent
such impact is not anti-dilutive.
The following presents a reconciliation of basic and diluted net income (loss) per
share:
Potential common shares that would have the effect of increasing diluted net
income per share or decreasing diluted net loss per share are considered to be anti-dilutive and as such, these shares are not included in calculating diluted net income
(loss) per share. For the three months ended December 31, 2022 and 2021, there were 1,201,984 and 1,130,694, respectively, of potential common shares not included in the calculation of diluted net income (loss) per share because their effect was anti-dilutive. For the nine months ended December 31, 2022 and 2021, there were 1,897,876 and 720,756, respectively, of potential common shares not included in the calculation of
diluted net income (loss) per share because their effect was anti-dilutive.
|
Income Taxes |
9 Months Ended |
---|---|
Dec. 31, 2022 | |
Income Taxes [Abstract] | |
Income Taxes |
12. Income Taxes
The Company recorded an income tax benefit of $8,971,000, or an effective tax rate of 112.9%, and income tax expense of $1,588,000, or an effective tax rate of 33.6%,
for the three months ended December 31, 2022 and 2021, respectively. The Company recorded an income tax benefit of $9,296,000, or an
effective tax rate of 62.1%, and income tax expense of $4,786,000, or an effective tax rate of 38.4%, for the nine months ended
December 31, 2022 and 2021, respectively. Effective tax rates are based on current annual projections and any changes in future periods could result in an effective tax rate that is materially different from the current estimate. The effective tax
rate for the three and nine months ended December 31, 2022, was primarily impacted by (i) specific jurisdictions that the Company does not expect to recognize the benefit of losses, (ii) foreign income taxed at rates that are different from the
federal statutory rate, and (iii) non-deductible executive compensation under Internal Revenue Code Section 162(m).
The Company and its subsidiaries file income tax returns in the U.S. federal, various state, and foreign jurisdictions with varying
statutes of limitations. At December 31, 2022, the Company is not under examination in any jurisdiction, and remain subject to examination from the years ended March 31, 2017. The Company believes no significant changes in the unrecognized tax
benefits will occur within the next 12 months.
|
Financial Risk Management and Derivatives |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Risk Management and Derivatives [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Risk Management and Derivatives |
13. Financial Risk Management and Derivatives
Purchases and expenses denominated in currencies other than the U.S. dollar, which are primarily related to the Company’s overseas facilities, expose the
Company to market risk from material movements in foreign exchange rates between the U.S. dollar and the foreign currencies. The Company’s primary risk exposure is from fluctuations in the value of the Mexican peso and to a lesser extent the Chinese
yuan. To mitigate these risks, the Company enters into forward foreign currency exchange contracts to exchange U.S. dollars for these foreign currencies. The extent to which forward foreign currency exchange contracts are used, is modified
periodically in response to the Company’s estimate of market conditions and the terms and length of anticipated requirements.
The Company enters into forward foreign currency exchange contracts in order to reduce the impact of foreign currency fluctuations and not to engage in
currency speculation. The use of derivative financial instruments allows the Company to reduce its exposure to the risk that the eventual cash outflow resulting from funding the expenses of the foreign operations will be materially affected by
changes in exchange rates between the U.S. dollar and the foreign currencies. The Company does not hold or issue financial instruments for trading purposes. The Company designates forward foreign currency exchange contracts for forecasted expenditure
requirements to fund foreign operations.
The Company had forward foreign currency exchange contracts with a U.S. dollar
equivalent notional value of $47,369,000 and $44,968,000 at December 31, 2022 and March 31, 2022, respectively. These contracts generally have a term of one year or less, at rates agreed at the inception of the contracts. The counterparty to this derivative transaction is a major financial institution with investment grade credit
rating; however, the Company is exposed to credit risk with this institution. The credit risk is limited to the potential unrealized gains (which offset currency fluctuations adverse to the Company) in any such contract should this counterparty
fail to perform as contracted. Any changes in the fair values of forward foreign currency exchange contracts are included in “foreign exchange impact of lease liabilities and forward contracts” in the condensed consolidated statements of
operations.
The following shows the effect of derivative instruments on the condensed consolidated statements of operations:
The fair value of the forward foreign currency exchange contracts of $1,558,000 and $1,113,000 is included in prepaid expenses and other current assets in the condensed consolidated balance sheets at December 31, 2022 and March 31, 2022, respectively. The changes in the
fair values of forward foreign currency exchange contracts are included in “foreign exchange impact of lease liabilities and forward contracts” in the condensed consolidated statements of cash flows for the nine months ended December 31, 2022 and
2021.
|
Fair Value Measurements |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements |
14. Fair Value Measurements
The following summarizes financial assets and liabilities measured at fair value, by level within the fair value hierarchy:
Short-term Investments and Deferred Compensation
The Company’s short-term investments,
which fund its deferred compensation liabilities, consist of investments in mutual funds. These investments are classified as Level 1 as the shares of these mutual funds trade with sufficient frequency and volume to enable the Company to obtain pricing information on an ongoing basis.
Forward Foreign Currency Exchange Contracts
The forward foreign currency exchange
contracts are primarily measured based on the foreign currency spot and forward rates quoted by the banks or foreign currency dealers (See Note 13).
The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities
approximate their fair value due to the short-term nature of these instruments. The carrying amounts of the revolving loan, term loan and other long-term liabilities approximate their fair value based on the variable nature of interest rates and
current rates for instruments with similar characteristics.
|
Share-based Payments |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payments |
15. Share-based Payments
Stock Options
During the nine months ended December 31, 2022 and 2021,
no options to purchase shares of the Company’s common stock were granted.
The following is a summary of stock option transactions:
At December 31, 2022, options to purchase 99,839 shares of common stock were unvested at a weighted average exercise price of $15.16.
At December 31, 2022, there was $295,000 of total unrecognized compensation expense related to unvested stock option awards, which will be recognized over the weighted average remaining vesting period of
approximately six months.
Restricted Stock Units and Restricted Stock Awards (collectively
“RSUs”)
During the nine months ended December 31, 2022 and 2021, the Company granted (i)
performance-based restricted stock awards which had a threshold performance level of 33,333 shares, a target performance level
of 66,667 shares, and a maximum performance level of 100,000 shares at the grant date for both periods and (ii) 229,121 and 163,703 of time-based vesting restricted stock units, respectively, based on the closing market price on the grant date.
The following is a summary of non-vested RSUs:
At December 31, 2022, there was $4,143,000 of unrecognized compensation expense related to RSUs, which will be recognized over the weighted average remaining vesting period of approximately 1.7 years.The Company’s unrecognized compensation expense includes restricted stock awards at
the target performance level as deemed probable at quarter-end.
Performance Stock Units (“PSUs”)
During the nine months ended December 31, 2022 and 2021, the Company granted 126,028 and 84,593 PSUs (at target
performance levels), respectively, which typically cliff vest after three-years subject to continued employment. These awards
are contingent and granted separately for each of the following metrics: adjusted EBITDA, net sales, and relative total shareholder return (“TSR”). Compensation cost is determined at the grant date and recognized on a straight-line basis over the
requisite service period to the extent the conditions are deemed probable. The number of shares earned at the end of the three-year period will vary, based only on actual performance, from 0% to 150% of the target number of PSUs granted. PSUs are not
considered issued or outstanding ordinary shares of the Company.
Adjusted EBITDA and net sales are considered performance conditions. The Company will reassess the probability of achieving each performance condition
separately each reporting period. TSR is considered a market condition because it measures the Company’s return against the performance of the Russell 3000, excluding companies classified as financials and real estate, over a given period of
time. Compensation cost related to the TSR award will not be adjusted even if the market condition is not met.
The Company calculated the fair value of the PSUs for each component individually. The fair value of PSUs subject to performance conditions is equal to
the closing stock price on the grant date. The fair value of PSUs subject to the market condition is determined using the Monte Carlo valuation model.
The following table summarizes the assumptions used in determining the fair value of the TSR awards:
The following is a summary of non-vested PSUs:
At December 31,
2022, there was $2,231,000 of unrecognized
compensation expense related to these awards, which will be recognized over the weighted average remaining vesting period of approximately 2.1 years.
|
Commitments and Contingencies |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies |
16. Commitments and Contingencies
Warranty Returns
The Company allows its customers to return goods that their consumers have returned to them, whether or not the returned item is defective (“warranty
returns”). The Company accrues an estimate of its exposure to warranty returns based on a historical analysis of the level of this type of return as a percentage of unit sales. Amounts charged to expense for these warranty returns are considered in
arriving at the Company’s net sales.
The following summarizes the changes in the warranty return accrual:
Contingencies
The Company is subject to various lawsuits and claims. In addition, government agencies and self-regulatory organizations have the ability to conduct
periodic examinations of and administrative proceedings regarding the Company’s business. Following an audit in fiscal 2019, the U.S. Customs and Border Protection stated that it believed that the Company owed additional duties of approximately $17 million from 2011 through mid-2018 relating to products that it imported from Mexico. The Company does not believe that this amount is correct and
believes that it has numerous defenses and intends to dispute this amount vigorously. The Company cannot assure that the U.S. Customs and Border Protection will agree or that it will not need to accrue or pay additional amounts in the future.
|
Share Repurchases |
9 Months Ended |
---|---|
Dec. 31, 2022 | |
Share Repurchases [Abstract] | |
Share Repurchases |
17. Share Repurchases
In August 2018, the Company’s board of directors approved an increase in its share repurchase program
from $20,000,000 to $37,000,000
of its common stock. During the three and nine months ended December 31, 2022, the Company did not repurchase any shares of its common
stock. As of December 31, 2022, $18,745,000 was utilized and $18,255,000 remains available to repurchase shares under the authorized share repurchase program, subject to the limit in the Company’s Credit Facility. The Company retired the 837,007 shares repurchased under this program through December 31, 2022. The Company’s share repurchase program does not obligate it to acquire any
specific number of shares and shares may be repurchased in privately negotiated and/or open market transactions.
|
Related Party Transactions |
9 Months Ended |
---|---|
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions |
18. Related Party
Transactions
Operating Lease
In December 2022, the Company entered into an
operating lease for its 35,000 square foot manufacturing, warehouse, and office facility in Ontario, Canada, with a company co-owned by
a member of management. The lease, commencing January 1, 2023, has an initial term of one year with a base rent of approximately $27,000 per month and includes options to renew for up to four years.
|
Basis of Presentation and New Accounting Pronouncements (Policies) |
9 Months Ended |
---|---|
Dec. 31, 2022 | |
Basis of Presentation and New Accounting Pronouncements [Abstract] | |
Basis of Presentation |
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles
(“GAAP”) for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all
adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended December 31, 2022 are not necessarily indicative of the results that may be
expected for the fiscal year ending March 31, 2023. This report should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the fiscal year ended March 31, 2022, which are included in the
Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on June 14, 2022.
The accompanying condensed consolidated financial statements have been prepared
on a consistent basis with, and there have been no material changes to the accounting policies described in Note 2, Summary of Significant Accounting Policies, to
the consolidated financial statements that are presented in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2022.
|
Accounts Receivable - Net (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable - Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable |
Accounts receivable — net is comprised of the following:
|
Inventory (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Net |
Inventory is comprised of the following:
|
Contract Assets (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract Assets |
Contract assets are comprised of the following:
|
Significant Customer and Other Information (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Customer and Other Information [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Concentrations of Risk |
Significant Customer Concentrations
The largest customers accounted for the following percentage of net sales:
The largest customers accounted for the following percentage of accounts receivable – trade:
Geographic and Product Information
The Company’s products are sold predominantly in the U.S. and accounted for the following percentages of net sales:
|
Debt (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Information About the Term Loan |
The following summarizes information about the Term Loans:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
Future Repayments of the Amended Term Loan, by Fiscal Year |
Future repayments of the Term Loans are as follows:
|
Contract Liabilities (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract Liabilities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract Liabilities |
Contract liabilities are comprised of the following:
|
Leases (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Information for Leases |
Balance sheet information for leases is as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease Cost Recognized in Consolidated Statements of Operations |
Lease cost recognized in the condensed consolidated statements of operations is as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maturity of Lease Commitments |
Maturities of lease commitments at December 31, 2022
by fiscal year were as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Information about Leases |
Other information about leases is as follows:
|
Accounts Receivable Discount Programs (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable Discount Programs [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable Discount Programs |
The following is a summary of accounts receivable discount programs:
|
Net Income (Loss) per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income (Loss) per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Basic and Diluted Net Income (Loss) Per Share |
The following presents a reconciliation of basic and diluted net income (loss) per
share:
|
Financial Risk Management and Derivatives (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Risk Management and Derivatives [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments on Consolidated Statements of Operations |
The following shows the effect of derivative instruments on the condensed consolidated statements of operations:
|
Fair Value Measurements (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Assets and Liabilities Measured at Fair Value Recurring Basis |
The following summarizes financial assets and liabilities measured at fair value, by level within the fair value hierarchy:
|
Share-based Payments (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Option Transactions |
The following is a summary of stock option transactions:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted Stock Units Activity |
The following is a summary of non-vested RSUs:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Monte Carlo Valuation Model Assumptions used in Determining Fair Value of TSR Awards |
The following table summarizes the assumptions used in determining the fair value of the TSR awards:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performance Stock Units Activity |
The following is a summary of non-vested PSUs:
|
Commitments and Contingencies (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Warranty Return Accrual |
The following summarizes the changes in the warranty return accrual:
|
Company Background and Organization (Details) |
9 Months Ended |
---|---|
Dec. 31, 2022
Segment
| |
Company Background and Organization [Abstract] | |
Number of operating segments | 3 |
Accounts Receivable - Net (Details) - USD ($) |
Dec. 31, 2022 |
Mar. 31, 2022 |
---|---|---|
Components of accounts receivable [Abstract] | ||
Accounts receivable - trade | $ 92,112,000 | $ 98,734,000 |
Allowance for credit losses | (192,000) | (375,000) |
Customer payment discrepancies | (1,446,000) | (1,375,000) |
Customer returns RGA issued | (14,941,000) | (11,909,000) |
Total accounts receivable - net | $ 75,533,000 | $ 85,075,000 |
Inventory (Details) - USD ($) |
Dec. 31, 2022 |
Mar. 31, 2022 |
---|---|---|
Inventory [Abstract] | ||
Raw materials | $ 152,094,000 | $ 150,414,000 |
Work-in-process | 6,512,000 | 6,880,000 |
Finished goods | 231,175,000 | 226,729,000 |
Inventory, gross | 389,781,000 | 384,023,000 |
Less allowance for excess and obsolete inventory | (15,083,000) | (13,520,000) |
Inventory - net | 374,698,000 | 370,503,000 |
Inventory unreturned | 15,876,000 | 15,001,000 |
Total inventory | $ 390,574,000 | $ 385,504,000 |
Contract Assets (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2022 |
Dec. 31, 2021 |
Mar. 31, 2022 |
|
Contract Assets [Abstract] | |||||
Long-term contract assets, write-down | $ 863,000 | $ 846,000 | $ 2,704,000 | $ 3,517,000 | |
Short-term contract assets [Abstract] | |||||
Cores expected to be returned by customers | 17,454,000 | 17,454,000 | $ 15,778,000 | ||
Core premiums paid to customers | 9,605,000 | 9,605,000 | 10,621,000 | ||
Upfront payments to customers | 1,454,000 | 1,454,000 | 517,000 | ||
Finished goods premiums paid to customers | 559,000 | 559,000 | 584,000 | ||
Total short-term contract assets | 29,072,000 | 29,072,000 | 27,500,000 | ||
Long-term contract assets [Abstract] | |||||
Remanufactured cores held at customers' locations | 265,378,000 | 265,378,000 | 258,376,000 | ||
Core premiums paid to customers | 40,475,000 | 40,475,000 | 43,294,000 | ||
Long-term core inventory deposits | 5,569,000 | 5,569,000 | 5,569,000 | ||
Finished goods premiums paid to customers | 2,588,000 | 2,588,000 | 2,806,000 | ||
Upfront payments to customers | 25,000 | 25,000 | 210,000 | ||
Total long-term contract assets | $ 314,035,000 | $ 314,035,000 | $ 310,255,000 |
Contract Liabilities (Details) - USD ($) |
Dec. 31, 2022 |
Mar. 31, 2022 |
---|---|---|
Short-term contract liabilities [Abstract] | ||
Customer allowances earned | $ 18,088,000 | $ 22,018,000 |
Customer core returns accruals | 16,901,000 | 12,322,000 |
Customer deposits | 3,236,000 | 3,306,000 |
Accrued core payment | 3,015,000 | 1,679,000 |
Core bank liability | 1,673,000 | 1,634,000 |
Finished goods liabilities | 1,599,000 | 1,537,000 |
Total short-term contract liabilities | 44,512,000 | 42,496,000 |
Long-term contract liabilities [Abstract] | ||
Customer core returns accruals | 160,980,000 | 154,940,000 |
Core bank liability | 14,009,000 | 15,267,000 |
Accrued core payment | 10,045,000 | 928,000 |
Finished goods liabilities | 825,000 | 1,588,000 |
Customer allowances earned | 0 | 41,000 |
Total long-term contract liabilities | $ 185,859,000 | $ 172,764,000 |
Leases, General Information (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Leases [Abstract] | ||||
Gain (Loss) in foreign currency-denominated lease liabilities | $ 3,129,000 | $ (985,000) | $ 2,108,000 | $ 64,000 |
Leases, Cost Recognized in Consolidated Statements of Income (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Lease cost [Abstract] | ||||
Operating lease cost | $ 3,232,000 | $ 3,134,000 | $ 9,527,000 | $ 9,325,000 |
Short-term lease cost | 340,000 | 361,000 | 1,353,000 | 1,112,000 |
Variable lease cost | 164,000 | 225,000 | 528,000 | 716,000 |
Finance lease cost [Abstract] | ||||
Amortization of finance lease assets | 503,000 | 515,000 | 1,531,000 | 1,579,000 |
Interest on finance lease liabilities | 68,000 | 83,000 | 200,000 | 269,000 |
Total lease cost | $ 4,307,000 | $ 4,318,000 | $ 13,139,000 | $ 13,001,000 |
Leases, Maturities of Lease Commitments (Details) - USD ($) |
Dec. 31, 2022 |
Mar. 31, 2022 |
---|---|---|
Operating Leases [Abstract] | ||
2023 - remaining three months | $ 3,335,000 | |
2024 | 13,364,000 | |
2025 | 12,498,000 | |
2026 | 12,065,000 | |
2027 | 10,782,000 | |
Thereafter | 64,621,000 | |
Total lease payments | 116,665,000 | |
Less amount representing interest | (26,824,000) | |
Present value of lease liabilities | 89,841,000 | |
Finance Leases [Abstract] | ||
2023 - remaining three months | 600,000 | |
2024 | 1,915,000 | |
2025 | 1,414,000 | |
2026 | 682,000 | |
2027 | 191,000 | |
Thereafter | 44,000 | |
Total lease payments | 4,846,000 | |
Less amount representing interest | (336,000) | |
Present value of lease liabilities | 4,510,000 | |
Total [Abstract] | ||
2023 - remaining three months | 3,935,000 | |
2024 | 15,279,000 | |
2025 | 13,912,000 | |
2026 | 12,747,000 | |
2027 | 10,973,000 | |
Thereafter | 64,665,000 | |
Total lease payments | 121,511,000 | |
Less amount representing interest | (27,160,000) | |
Present value of lease liabilities | $ 94,351,000 | $ 93,346,000 |
Leases, Other Information (Details) |
Dec. 31, 2022 |
Mar. 31, 2022 |
---|---|---|
Weighted-average remaining lease term (years) [Abstract] | ||
Finance leases | 2 years 8 months 12 days | 2 years 10 months 24 days |
Operating leases | 9 years 2 months 12 days | 10 years 4 months 24 days |
Weighted-average discount rate [Abstract] | ||
Finance leases | 5.40% | 5.10% |
Operating leases | 5.80% | 5.70% |
Accounts Receivable Discount Programs (Details) - USD ($) |
9 Months Ended | |
---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Accounts Receivable Discount Programs [Abstract] | ||
Receivables discounted | $ 428,868,000 | $ 418,044,000 |
Weighted average number of days collection was accelerated | 323 days | 335 days |
Annualized weighted average discount rate | 5.00% | 1.70% |
Amount of discount recognized as interest expense | $ 19,131,000 | $ 6,798,000 |
Income Taxes (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Income Taxes [Abstract] | ||||
Income tax (benefit) expense | $ (8,971,000) | $ 1,588,000 | $ (9,296,000) | $ 4,786,000 |
Effective income tax rate | 112.90% | 33.60% | 62.10% | 38.40% |
Financial Risk Management and Derivatives (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2022 |
Dec. 31, 2021 |
Mar. 31, 2022 |
|
Foreign Currency Exchange Contracts [Abstract] | |||||
Forward foreign currency exchange contracts included in prepaid and other current assets | $ 1,558,000 | $ 1,558,000 | $ 1,113,000 | ||
Forward Foreign Currency Exchange Contracts [Member] | |||||
Foreign Currency Exchange Contracts [Abstract] | |||||
Notional amount of foreign currency derivatives | 47,369,000 | 47,369,000 | $ 44,968,000 | ||
Forward Foreign Currency Exchange Contracts [Member] | Foreign Exchange Impact of Lease Liabilities and Forward Contracts [Member] | |||||
Foreign Currency Exchange Contracts [Abstract] | |||||
Forward foreign currency exchange contracts | $ 1,184,000 | $ 600,000 | $ 445,000 | $ (1,833,000) | |
Forward Foreign Currency Exchange Contracts [Member] | Maximum [Member] | |||||
Foreign Currency Exchange Contracts [Abstract] | |||||
Derivative, term of contract | 1 year |
Commitments and Contingencies (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2022 |
Dec. 31, 2021 |
Mar. 31, 2019 |
|
Change in warranty return accrual [Roll Forward] | |||||
Balance at beginning of period | $ 18,461,000 | $ 20,875,000 | $ 20,125,000 | $ 21,093,000 | |
Charged to expense | 31,621,000 | 30,282,000 | 96,436,000 | 88,380,000 | |
Amounts processed | (32,510,000) | (32,425,000) | (98,989,000) | (90,741,000) | |
Balance at end of period | $ 17,572,000 | $ 18,732,000 | $ 17,572,000 | $ 18,732,000 | |
Contingencies [Abstract] | |||||
Estimated additional import duties | $ 17,000,000 |
Share Repurchases (Details) - Common Stock [Member] - USD ($) |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2022 |
Aug. 31, 2018 |
|
Stock Repurchase Program [Abstract] | |||
Stock repurchase program, approved amount | $ 37,000,000 | $ 37,000,000 | $ 20,000,000 |
Repurchase of shares (in shares) | 0 | 0 | |
Shares utilized, amount | $ 18,745,000 | ||
Shares available for repurchase, amount | $ 18,255,000 | $ 18,255,000 | |
Shares repurchased and retired (in shares) | 837,007 |
Related Party Transactions (Details) - Company Co-owned by Member of Management [Member] - Manufacturing Facility [Member] |
Dec. 31, 2022
USD ($)
ft²
|
---|---|
Operating Lease [Abstract] | |
Area of facility | ft² | 35,000 |
Initial lease term | 1 year |
Base rent | $ | $ 27,000 |
Lease renewal term | 4 years |
&PO=V]R:W-H965T ]^.'3MI>KAVU^-8F111#UDI/D@7#JWN9.=Q%"9OF85=3D$N
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M4T>F.T:ZIIJ"OKEY;XX:ZYK:AL7LW3QV&*61XMF-E ]HZG9%NS6+O7IL6JL%#5<:F::JN+Z_ARDVIV,DE&W<"56
M:TL+X]/C#5_!-=C/FTN-=^,>I105U$:HFFE8GHS.DK?G$Y)W E\$[,S@FI$G
M-TK=TLVOYL$=R*-BVU'.Q_PD.YXD-7B9*97_)_F#K
M]TBV55I4!V=D4/&Z^6=/ASB\Q8$>'*CEW6QD67YDFDU&4NR)--:(9A[L4:TW
MDN.U$66A)7[EZ*?D39ED66_Z2\?5A