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INCOME TAXES (Tables) | 12 Months Ended
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Mar. 31, 2026
INCOME TAXES [Abstract] |
Reconciliation of Income Taxes to Statutory Federal Income Tax Rate | A reconciliation of income taxes computed at the statutory federal income tax rate of 21.0% to the provision for income taxes included in the consolidated statements of operations is as follows (in thousands, except percentages):
|  |  | Year ended March 31, |
|  |  | 2026 |  |  |  | 2025 |  |  |  | 2024 |
|  |  | Amount |  |  |  | Percent |  |  |  | Amount |  |  |  | Percent |  |  |  | Amount |  |  |  | Percent |
U.S. federal statutory tax rate |  | $ | 36,422 |  |  |  | 21.0 | % |  | $ | 22,286 |  |  |  | 21.0 | % |  | $ | 28,400 |  |  |  | 21.0 | %
Domestic federal reconciling items: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Nontaxable or non-deductible items: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-deductible executive compensation |  |  | 2,434 |  |  |  | 1.4 | % |  |  | 2,020 |  |  |  | 1.9 | % |  |  | 1,718 |  |  |  | 1.3 | %
Other |  |  | 403 |  |  |  | 0.2 | % |  |  | (189 | ) |  |  | (0.2 | )% |  |  | 97 |  |  |  | 0.1 | %
Cross border tax laws |  |  | (105 | ) |  |  | 0.0 | % |  |  | (131 | ) |  |  | (0.1 | )% |  |  | (170 | ) |  |  | (0.1 | )%
Other (1) |  |  | (9 | ) |  |  | 0.0 | % |  |  | (97 | ) |  |  | (0.1 | )% |  |  | (172 | ) |  |  | (0.3 | )%
State and local income taxes, net of federal income tax effect (2) |  |  | 9,962 |  |  |  | 5.7 | % |  |  | 5,504 |  |  |  | 5.2 | % |  |  | 8,094 |  |  |  | 6.0 | %
Foreign tax effects |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other foreign jurisdictions |  |  | 211 |  |  |  | 0.1 | % |  |  | 292 |  |  |  | 0.3 | % |  |  | (56 | ) |  |  | 0.0 | %
Total |  | $ | 49,318 |  |  |  | 28.4 | % |  | $ | 29,685 |  |  |  | 28.0 | % |  | $ | 37,911 |  |  |  | 28.0 | %
(1) Represents several adjustments, none of which are significant for separate disclosure. (2) The states and local jurisdictions that contribute to the majority (greater than 50%) of the tax effect in this category include California, Virginia, and New York.
Income (loss) from Continuing Operations Before Income Tax Expense (Benefit) | Income (loss) from continuing operations before income tax expense (benefit):
| Year ended March 31,
|  | 2026 |  |  | 2025 |  |  | 2024 |
U.S. |  | $ | 165,705 |  |  | $ | 101,325 |  |  | $ | 129,317 |
Foreign |  |  | 7,733 |  |  |  | 4,799 |  |  |  | 5,921 |
Total |  | $ | 173,438 |  |  | $ | 106,124 |  |  | $ | 135,238 |
Components of Provision for Income Taxes | The components of the provision for income taxes from continuing operations are as follows (in thousands):
|  |  | Year ended March 31, |
Current: |  |  | 2026 |  |  |  | 2025 |  |  |  | 2024 |
Federal |  | $ | 34,490 |  |  | $ | 21,928 |  |  | $ | 28,394 |
State |  |  | 12,141 |  |  |  | 7,121 |  |  |  | 11,006 |
Foreign |  |  | 1,795 |  |  |  | 1,092 |  |  |  | 1,236 |
Total current expense |  |  | 48,426 |  |  |  | 30,141 |  |  |  | 40,636 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 569 |  |  |  | (551 | ) |  |  | (1,898 | )
State |  |  | 284 |  |  |  | (50 | ) |  |  | (778 | )
Foreign |  |  | 39 |  |  |  | 145 |  |  |  | (49 | )
Total deferred expense (benefit) |  |  | 892 |  |  |  | (456 | ) |  |  | (2,725 | )
Total income tax expense: |  |  |  |  |  |  |  |  |  |  |  |
Total federal |  |  | 35,059 |  |  |  | 21,377 |  |  |  | 26,496 |
Total state |  |  | 12,425 |  |  |  | 7,071 |  |  |  | 10,228 |
Total foreign |  |  | 1,834 |  |  |  | 1,237 |  |  |  | 1,187 |
Provision for income taxes |  | $ | 49,318 |  |  | $ | 29,685 |  |  | $ | 37,911 |
Components of Deferred Tax Assets and Liabilities | Significant components of our deferred tax assets and liabilities were as follows (in thousands):
|  | March 31, 2026 |  |  | March 31, 2025 |
Deferred tax assets: |  |  |  |  |  |  |  |
Accrued vacation |  | $ | 2,875 |  |  | $ | 2,744 |
Deferred revenue |  |  | 7,512 |  |  |  | 7,108 |
Allowance for credit losses |  |  | 785 |  |  |  | 1,745 |
Restricted stock |  |  | 801 |  |  |  | 301 |
Operating leases |  |  | 850 |  |  |  | - |
Other deferred tax assets |  |  | 1,936 |  |  |  | 841 |
Inventory reserve |  |  | 455 |  |  |  | 1,313 |
Capitalized research expenditures |  |  | 374 |  |  |  | 1,666 |
Accrued bonus |  |  | 2,602 |  |  |  | 2,708 |
Lease liabilities |  |  | 4,291 |  |  |  | 5,067 |
Other credits and carryforwards |  |  | 14 |  |  |  | 101 |
Gross deferred tax assets |  |  | 22,495 |  |  |  | 23,594 |
Less: valuation allowance |  |  | (14 | ) |  |  | (63 | )
Net deferred tax assets |  |  | 22,481 |  |  |  | 23,531 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Property and equipment |  |  | (2,296 | ) |  |  | (2,516 | )
Operating leases |  |  | - |  |  |  | (7,804 | )
Prepaid expenses |  |  | (4,090 | ) |  |  | (4,095 | )
Right-of-use assets |  |  | (3,988 | ) |  |  | (4,714 | )
Tax deductible goodwill |  |  | (3,152 | ) |  |  | (2,198 | )
Total deferred tax liabilities |  |  | (13,526 | ) |  |  | (21,327 | )
Net deferred tax asset |  | $ | 8,955 |  |  | $ | 2,204 |
Income Taxes Paid, Net of Refunds | The following table presents income taxes paid, net of refunds, for the year ended March 31, 2026 (in thousands):
|  | Year Ended March 31, |
|  | 2026 |  |  | 2025 |  |  | 2024 |
U.S. federal |  | $ | 33,013 |  |  | $ | 36,119 |  |  | $ | 29,171 |
Domestic state and local: |  |  |  |  |  |  |  |  |  |  |  |
California (1) |  |  | - |  |  |  | 2,491 |  |  |  | 2,598 |
Other |  |  | 11,152 |  |  |  | 9,374 |  |  |  | 8,283 |
Total state and local |  |  | 11,152 |  |  |  | 11,865 |  |  |  | 10,881 |
Foreign |  |  | 1,901 |  |  |  | 748 |  |  |  | 1,474 |
Total |  | $ | 46,066 |  |  | $ | 48,732 |  |  | $ | 41,526 |
(1) The amount of income taxes paid for the year ended March 31, 2026 was less than 5% of total income taxes paid.

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