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Revenue Recognition (Tables) | 9 Months Ended
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Dec. 31, 2018
Revenue Recognition [Abstract] |
Impact of New Revenue Recognition Standard on Revised Financial Statements | The adoption of the new revenue recognition standard impacted the revised consolidated statements of operations for the three and nine months ended December 31, 2017 as follows:
|  | Three Months Ended December 31, 2017 |  |  | Nine Months Ended December 31, 2017 |
|  | As Revised |  |  | Adoption of ASC 606 |  |  | As Adjusted |  |  | As Revised |  |  | Adoption of ASC 606 |  |  | As Adjusted |
Net sales |  | $ | 101,713,000 |  |  | $ | 1,165,000 |  |  | $ | 102,878,000 |  |  | $ | 306,805,000 |  |  | $ | 1,029,000 |  |  | $ | 307,834,000 |
Cost of goods sold |  |  | 75,833,000 |  |  |  | 984,000 |  |  |  | 76,817,000 |  |  |  | 229,669,000 |  |  |  | 225,000 |  |  |  | 229,894,000 |
Gross profit |  |  | 25,880,000 |  |  |  | 181,000 |  |  |  | 26,061,000 |  |  |  | 77,136,000 |  |  |  | 804,000 |  |  |  | 77,940,000 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
General and administrative |  |  | 11,915,000 |  |  |  | - |  |  |  | 11,915,000 |  |  |  | 26,418,000 |  |  |  | - |  |  |  | 26,418,000 |
Sales and marketing |  |  | 4,048,000 |  |  |  | - |  |  |  | 4,048,000 |  |  |  | 10,899,000 |  |  |  | - |  |  |  | 10,899,000 |
Research and development |  |  | 1,678,000 |  |  |  | - |  |  |  | 1,678,000 |  |  |  | 3,920,000 |  |  |  | - |  |  |  | 3,920,000 |
Total operating expenses |  |  | 17,641,000 |  |  |  | - |  |  |  | 17,641,000 |  |  |  | 41,237,000 |  |  |  | - |  |  |  | 41,237,000 |
Operating income |  |  | 8,239,000 |  |  |  | 181,000 |  |  |  | 8,420,000 |  |  |  | 35,899,000 |  |  |  | 804,000 |  |  |  | 36,703,000 |
Interest expense, net |  |  | 3,953,000 |  |  |  | - |  |  |  | 3,953,000 |  |  |  | 10,789,000 |  |  |  | - |  |  |  | 10,789,000 |
Income before income tax expense |  |  | 4,286,000 |  |  |  | 181,000 |  |  |  | 4,467,000 |  |  |  | 25,110,000 |  |  |  | 804,000 |  |  |  | 25,914,000 |
Income tax expense |  |  | 6,936,000 |  |  |  | 58,000 |  |  |  | 6,994,000 |  |  |  | 14,742,000 |  |  |  | 284,000 |  |  |  | 15,026,000 |
Net (loss) income |  | $ | (2,650,000 | ) |  | $ | 123,000 |  |  | $ | (2,527,000 | ) |  | $ | 10,368,000 |  |  | $ | 520,000 |  |  | $ | 10,888,000 |
Basic net (loss) income per share |  | $ | (0.14 | ) |  | $ | 0.01 |  |  | $ | (0.13 | ) |  | $ | 0.55 |  |  | $ | 0.03 |  |  | $ | 0.58 |
Diluted net (loss) income per share |  | $ | (0.14 | ) |  | $ | 0.01 |  |  | $ | (0.13 | ) |  | $ | 0.53 |  |  | $ | 0.03 |  |  | $ | 0.56 |
Weighted average number of shares outstanding: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  |  | 19,069,152 |  |  |  | 19,069,152 |  |  |  | 19,069,152 |  |  |  | 18,814,967 |  |  |  | 18,814,967 |  |  |  | 18,814,967 |
Diluted |  |  | 19,069,152 |  |  |  | 19,069,152 |  |  |  | 19,069,152 |  |  |  | 19,400,744 |  |  |  | 19,400,744 |  |  |  | 19,400,744 |
The adoption of the new revenue recognition standard impacted the revised consolidated balance sheet at March 31, 2018 as follows:
|  | March 31, 2018 |
|  | As Revised |  |  | Adoption of ASC 606 |  |  | As Adjusted |
ASSETS |  |  |  |  |  |  |  |  |
Current assets: |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 13,049,000 |  |  | $ | - |  |  | $ | 13,049,000 |
Short-term investments |  |  | 2,828,000 |  |  |  | - |  |  |  | 2,828,000 |
Accounts receivable — net |  |  | 15,738,000 |  |  |  | 47,436,000 |  |  |  | 63,174,000 |
Inventory— net |  |  | 76,275,000 |  |  |  | 84,935,000 |  |  |  | 161,210,000 |
Inventory unreturned |  |  | 7,508,000 |  |  |  | - |  |  |  | 7,508,000 |
Contract assets |  |  | - |  |  |  | 23,206,000 |  |  |  | 23,206,000 |
Income tax receivable |  |  | 7,972,000 |  |  |  | - |  |  |  | 7,972,000 |
Prepaid expenses and other current assets |  |  | 15,104,000 |  |  |  | (6,496,000 | ) |  |  | 8,608,000 |
Total current assets |  |  | 138,474,000 |  |  |  | 149,081,000 |  |  |  | 287,555,000 |
Plant and equipment — net |  |  | 28,322,000 |  |  |  | - |  |  |  | 28,322,000 |
Long-term core inventory — net |  |  | 298,294,000 |  |  |  | (298,294,000 | ) |  |  | - |
Long-term core inventory deposits |  |  | 5,569,000 |  |  |  | (5,569,000 | ) |  |  | - |
Long-term deferred income taxes |  |  | 6,937,000 |  |  |  | (239,000 | ) |  |  | 6,698,000 |
Long-term contract assets |  |  | - |  |  |  | 222,731,000 |  |  |  | 222,731,000 |
Goodwill |  |  | 2,551,000 |  |  |  | - |  |  |  | 2,551,000 |
Intangible assets — net |  |  | 3,766,000 |  |  |  | - |  |  |  | 3,766,000 |
Other assets |  |  | 21,995,000 |  |  |  | (21,191,000 | ) |  |  | 804,000 |
TOTAL ASSETS |  | $ | 505,908,000 |  |  | $ | 46,519,000 |  |  | $ | 552,427,000 |
LIABILITIES AND SHAREHOLDERS’ EQUITY |  |  |  |  |  |  |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable |  | $ | 73,273,000 |  |  | $ | - |  |  | $ | 73,273,000 |
Accrued liabilities |  |  | 12,048,000 |  |  |  | - |  |  |  | 12,048,000 |
Customer finished goods returns accrual |  |  | 17,805,000 |  |  |  | - |  |  |  | 17,805,000 |
Accrued core payment |  |  | 16,536,000 |  |  |  | (16,536,000 | ) |  |  | - |
Contract liabilities |  |  | - |  |  |  | 32,603,000 |  |  |  | 32,603,000 |
Revolving loan |  |  | 54,000,000 |  |  |  | - |  |  |  | 54,000,000 |
Other current liabilities |  |  | 4,471,000 |  |  |  | - |  |  |  | 4,471,000 |
Current portion of term loan |  |  | 3,068,000 |  |  |  | - |  |  |  | 3,068,000 |
Total current liabilities |  |  | 181,201,000 |  |  |  | 16,067,000 |  |  |  | 197,268,000 |
Term loan, less current portion |  |  | 13,913,000 |  |  |  | - |  |  |  | 13,913,000 |
Long-term accrued core payment |  |  | 18,473,000 |  |  |  | (18,473,000 | ) |  |  | - |
Long-term deferred income taxes |  |  | 226,000 |  |  |  | - |  |  |  | 226,000 |
Long-term contract liabilities |  |  | - |  |  |  | 48,183,000 |  |  |  | 48,183,000 |
Other liabilities |  |  | 5,957,000 |  |  |  | - |  |  |  | 5,957,000 |
Total liabilities |  |  | 219,770,000 |  |  |  | 45,777,000 |  |  |  | 265,547,000 |
Commitments and contingencies |  |  |  |  |  |  |  |  |  |  |  |
Shareholders’ equity: |  |  |  |  |  |  |  |  |  |  |  |
Preferred stock; par value $.01 per share, 5,000,000 shares authorized; none issued |  |  | - |  |  |  | - |  |  |  | - |
Series A junior participating preferred stock; par value $.01 per share, 20,000 shares authorized; none issued |  |  | - |  |  |  | - |  |  |  | - |
Common stock; par value $.01 per share, 50,000,000 shares authorized; 18,893,102 shares issued and outstanding at March 31, 2018 |  |  | 189,000 |  |  |  | - |  |  |  | 189,000 |
Additional paid-in capital |  |  | 213,609,000 |  |  |  | - |  |  |  | 213,609,000 |
Retained earnings |  |  | 77,768,000 |  |  |  | 742,000 |  |  |  | 78,510,000 |
Accumulated other comprehensive loss |  |  | (5,428,000 | ) |  |  | - |  |  |  | (5,428,000 | )
Total shareholders’ equity |  |  | 286,138,000 |  |  |  | 742,000 |  |  |  | 286,880,000 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |  | $ | 505,908,000 |  |  | $ | 46,519,000 |  |  | $ | 552,427,000 |
The adoption of the new revenue recognition standard impacted the revised statement of cash flows for the nine months ended December 31, 2017 as follows:
|  | Nine Months Ended December 31, 2017 |
Cash flows from operating activities: |  | As Revised |  |  | Adoption of ASC 606 |  |  | As Adjusted |
Net income |  | $ | 10,368,000 |  |  | $ | 520,000 |  |  | $ | 10,888,000 |
Deferred income taxes |  |  | (2,714,000 | ) |  |  | 284,000 |  |  |  | (2,430,000 | )
Accounts receivable |  |  | 23,127,000 |  |  |  | (27,367,000 | ) |  |  | (4,240,000 | )
Inventory |  |  | (11,162,000 | ) |  |  | (23,481,000 | ) |  |  | (34,643,000 | )
Prepaid expenses and other current assets |  |  | (1,576,000 | ) |  |  | 1,543,000 |  |  |  | (33,000 | )
Other assets |  |  | (163,000 | ) |  |  | 10,000 |  |  |  | (153,000 | )
Long-term core inventory |  |  | (38,361,000 | ) |  |  | 38,361,000 |  |  |  | - |
Contract assets, net |  |  | - |  |  |  | (16,208,000 | ) |  |  | (16,208,000 | )
Contract liabilities, net |  |  | - |  |  |  | 41,175,000 |  |  |  | 41,175,000 |
Accrued core payments |  |  | 14,837,000 |  |  |  | (14,837,000 | ) |  |  | - |
Net cash used in operating activities |  | $ | (9,803,000 | ) |  | $ | - |  |  | $ | (9,803,000 | )

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