Tessco (TESS) 10-Q28 Jul 222023 Q1 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Jun. 26, 2022	Jul. 22, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 26, 2022
Document Transition Report	false
Entity File Number	001-33938
Entity Registrant Name	TESSCO Technologies Incorporated
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	52-0729657
Entity Address, Address Line One	11126 McCormick Road
Entity Address, City or Town	Hunt Valley
Entity Address, State or Province	MD
Entity Address, Postal Zip Code	21031
City Area Code	410
Local Phone Number	229-1000
Title of 12(b) Security	Common Stock
Trading Symbol	TESS
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		9,132,796
Entity Central Index Key	0000927355
Current Fiscal Year End Date	--03-26
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Jun. 26, 2022	Mar. 27, 2022
Current assets:
Cash and cash equivalents	$ 3,005,900	$ 1,754,000
Trade accounts receivable, net	80,029,700	75,546,300
Product inventory, net	59,785,800	55,945,300
Income taxes receivable	529,900	4,293,400
Prepaid expenses and other current assets	4,449,900	2,961,700
Total current assets	147,801,200	140,500,700
Property and equipment, net	10,658,100	10,835,900
Intangible assets, net	33,447,700	30,595,600
Income taxes receivable, non-current	3,118,600	3,118,600
Lease asset - right of use	8,317,100	8,910,400
Other long-term assets	8,675,000	8,552,100
Assets	212,017,700	202,513,300
Current liabilities:
Trade accounts payable	71,089,000	65,254,900
Payroll, benefits and taxes	5,471,900	5,230,500
Sales tax liabilities	714,900	1,188,100
Accrued expenses and other current liabilities	1,463,300	1,455,500
Lease liability, current	2,592,500	2,566,300
Current portion of long-term debt	340,900	340,300
Total current liabilities	81,672,500	76,035,600
Deferred tax liabilities, net	145,600	145,600
Revolving line of credit	41,675,000	36,914,600
Non-current lease liability	5,921,900	6,586,200
Long-term debt	6,036,400	6,155,000
Other non-current liabilities	737,400	753,200
Total liabilities	136,188,800	126,590,200
Shareholders' equity:
Preferred stock, $0.01 par value per share, 500,000 shares authorized and no shares issued and outstanding
Common stock, $0.01 par value per share, 15,000,000 shares authorized, 9,176,584 shares issued and 9,132,796 shares outstanding as of June 26, 2022, and 9,013,449 shares issued and 8,994,249 shares outstanding as of March 27, 2022	107,100	105,900
Additional paid-in capital	69,482,900	69,166,100
Treasury stock, at cost, 43,788 shares as of June 26, 2022 and 19,200 shares as of March 27, 2022	(266,300)	(129,200)
Retained earnings	6,505,200	6,780,300
Total shareholders' equity	75,828,900	75,923,100
Total liabilities and shareholders' equity	$ 212,017,700	$ 202,513,300

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 26, 2022	Mar. 27, 2022
Shareholders' equity:
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized (in shares)	500,000	500,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Common stock, par value (in dollars shares)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	15,000,000	15,000,000
Common stock, issued (in shares)	9,176,584	9,013,449
Common stock, outstanding (in shares)	9,132,796	8,994,249
Treasury stock (in shares)	43,788	19,200

Consolidated Statements of Inco

Consolidated Statements of Income (Loss) - USD ($)	3 Months Ended
Consolidated Statements of Income (Loss) - USD ($)	Jun. 26, 2022	Jun. 27, 2021
Consolidated Statements of Income (Loss)
Revenues	$ 112,161,200	$ 104,956,100
Cost of goods sold	89,797,800	85,269,900
Gross profit	22,363,400	19,686,200
Selling, general and administrative expenses	22,611,400	21,646,800
Operating income (loss)	(248,000)	(1,960,600)
Interest expense, net	259,400	213,700
Income (loss) from continuing operations before income taxes	(507,400)	(2,174,300)
Provision for (benefit from) income taxes	10,000	38,500
Net income (loss) from continuing operations	(517,400)	(2,212,800)
Income (loss) from discontinued operations, net of taxes	242,300	495,500
Net income (loss)	$ (275,100)	$ (1,717,300)
Basic income (loss) per share
Continuing operations (in dollars per share)	$ (0.06)	$ (0.25)
Discontinued operations (in dollars per share)	0.03	0.06
Consolidated operations (in dollars per share)	(0.03)	(0.19)
Diluted income (loss) income per share
Continuing operations (in dollars per share)	(0.06)	(0.25)
Discontinued operations (in dollars per share)	0.03	0.06
Consolidated operations (in dollars per share)	$ (0.03)	$ (0.19)
Basic weighted-average common shares outstanding (in shares)	9,064,481	8,864,704
Diluted weighted-average common shares outstanding (in shares)	9,064,481	8,864,704

Consolidated Statements of Chan

Consolidated Statements of Changes in Shareholders' Equity - USD ($)	Common Stock	Additional Paid-in Capital	Treasury Stock	Retained Earnings	Total
Balance at Mar. 28, 2021	$ 104,200	$ 67,227,700	$ (62,800)	$ 9,481,100	$ 76,750,200
Balance (in shares) at Mar. 28, 2021	8,833,833
Increase (Decrease) in Stockholders' Equity
Issuance of common stock for 401k match	$ 100	102,700			102,800
Issuance of common stock for 401k match (in shares)	13,782
Treasury stock purchases			(28,900)		(28,900)
Treasury stock purchases (in shares)	(3,960)
Non-cash stock compensation expense	$ 500	254,400			254,900
Non-cash stock compensation expense (in shares)	39,182
Exercise of stock options (in dollars)		10,900	(13,300)		(2,400)
Exercise of stock options (in shares)	1,754
Net income (loss)				(1,717,300)	(1,717,300)
Balance at Jun. 27, 2021	$ 104,800	67,595,700	(105,000)	7,763,800	75,359,300
Balance (in shares) at Jun. 27, 2021	8,884,591
Balance at Mar. 27, 2022	$ 105,900	69,166,100	(129,200)	6,780,300	$ 75,923,100
Balance (in shares) at Mar. 27, 2022	8,994,249				8,994,249
Increase (Decrease) in Stockholders' Equity
Issuance of common stock for 401k match	$ 200	94,000			$ 94,200
Issuance of common stock for 401k match (in shares)	15,941
Treasury stock purchases			(137,100)		(137,100)
Treasury stock purchases (in shares)	(23,623)
Non-cash stock compensation expense	$ 1,000	222,800			223,800
Non-cash stock compensation expense (in shares)	146,229
Net income (loss)				(275,100)	(275,100)
Balance at Jun. 26, 2022	$ 107,100	$ 69,482,900	$ (266,300)	$ 6,505,200	$ 75,828,900
Balance (in shares) at Jun. 26, 2022	9,132,796				9,132,796

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
Consolidated Statements of Cash Flows - USD ($)	Jun. 26, 2022	Jun. 27, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ (275,100)	$ (1,717,300)
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Depreciation and amortization	541,900	607,700
Non-cash stock-based compensation expense	222,800	254,900
Change in trade accounts receivable	(4,483,400)	(1,206,200)
Change in product inventory	(3,840,500)	(15,803,200)
Change in prepaid expenses and other current assets	(1,488,200)	(1,430,000)
Change in income taxes receivable	3,763,500	(30,200)
Change in other assets and other liabilities	(138,700)	(487,700)
Change in trade accounts payable	4,666,900	14,632,900
Change in payroll, benefits and taxes	241,400	724,400
Change in sales tax liabilities	(473,200)	(51,000)
Change in accrued expenses and other current liabilities	58,100	(1,326,600)
Net cash provided by (used in) operating activities	(1,204,500)	(5,832,300)
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(2,044,700)	(2,173,900)
Net cash provided by (used in) investing activities	(2,044,700)	(2,173,900)
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings from revolving line of credit long term	70,367,900	66,565,500
Repayments to revolving line of credit long term	(65,607,700)	(57,419,600)
Payments of debt issuance costs	(34,700)
Payments on long term debt	(87,300)
Purchase of treasury stock and repurchase of stock from employees and directors for minimum tax withholdings	(137,100)	(42,200)
Net cash provided by (used in) financing activities	4,501,100	9,103,700
Net increase (decrease) in cash and cash equivalents	1,251,900	1,097,500
CASH AND CASH EQUIVALENTS, beginning of period	1,754,000	1,110,000
CASH AND CASH EQUIVALENTS, end of period	3,005,900	2,207,500
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Capital expenditures included in accounts payable	$ 5,662,100	$ 3,362,900

Description of Business and Bas

Description of Business and Basis of Presentation	3 Months Ended
Description of Business and Basis of Presentation	Jun. 26, 2022
Description of Business and Basis of Presentation
Description of Business and Basis of Presentation	Note 1. Description of Business and Basis of Presentation TESSCO Technologies Incorporated, a Delaware corporation (TESSCO, we, or the Company), architects and delivers innovative product and value chain solutions to support wireless systems. The Company provides marketing and sales services, knowledge and supply chain management, product-solution delivery and control systems utilizing extensive internet and information technology. Approximately 98% of the Company’s sales are made to customers in the United States. The Company takes orders in several ways, including phone, fax, online and through electronic data interchange. Almost all of the Company’s sales are made in United States Dollars. In management’s opinion, the accompanying unaudited interim Consolidated Financial Statements of the Company include all adjustments, consisting only of normal, recurring adjustments, necessary for a fair presentation of the Company’s financial position for the interim periods presented. These statements are presented in accordance with the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) and have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Certain information and footnote disclosures normally included in the Company’s annual financial statements have been omitted from these statements, as permitted under the applicable rules and regulations. The results of operations presented in the accompanying unaudited interim Consolidated Financial Statements are not necessarily representative of operations for an entire year. The information included in this Form 10-Q should be read in conjunction with the Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 27, 2022, filed with SEC on May 26, 2022. On October 28, 2020, the Company entered into a definitive Inventory Purchase Agreement (the “Agreement”) which, at a closing held on December 2, 2020, resulted in the Company’s exit from its retail business through the sale to Voice Comm, LLC, a Delaware limited liability company (“Voice Comm”), of most of the Company’s retail inventory, the Ventev brand as it relates to mobile device accessory products, and certain other retail-related assets. The accompanying unaudited interim Consolidated Financial Statements for all periods presented reflect the results of the Retail segment as a discontinued operation. See Note 10, “Discontinued Operations”, for further information.

Recently Issued Accounting Pron

Recently Issued Accounting Pronouncements	3 Months Ended
Recently Issued Accounting Pronouncements	Jun. 26, 2022
Recently Issued Accounting Pronouncements
Recently Issued Accounting Pronouncements	Note 2. Recently Issued Accounting Pronouncements Recently issued accounting pronouncements not yet adopted: In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses rather than incurred losses to estimate credit losses on certain types of financial instruments, including trade receivables. This may result in the earlier recognition of allowances for losses. This ASU is effective for periods beginning after December 15, 2022. The Company is currently evaluating the impact the adoption of this new standard will have on its Consolidated Financial Statements and will adopt the standard on the first day of the Company’s 2024 fiscal year.

Intangible Assets

Intangible Assets	3 Months Ended
Intangible Assets	Jun. 26, 2022
Intangible Assets
Intangible Assets	Note 3. Intangible Assets Intangible assets, net on our Consolidated Balance Sheets as of June 26, 2022, consists of capitalized software for internal use, indefinite-lived intangible assets, and an immaterial amount of costs capitalized for software costs to be sold. Capitalized software for internal use, net of accumulated amortization, was $32,208,600 and $29,463,100 as of June 26, 2022 and March 27, 2022, respectively. Amortization expense of capitalized software for internal use was $189,500 and $175,500 for the fiscal quarter ended June 26, 2022 and June 27, 2021, respectively. The Company continues to capitalize costs related to an ongoing information technology project, which will be amortized after the project has been completed and placed in-service. This project is expected to be completed during fiscal 2023. Indefinite-lived intangible assets were $795,400 as of June 26, 2022 and March 27, 2022.

Borrowings Under Revolving Cred

Borrowings Under Revolving Credit Facility	3 Months Ended
Borrowings Under Revolving Credit Facility	Jun. 26, 2022
Borrowings Under Revolving Credit Facility
Borrowings Under Revolving Credit Facility	Note 4. Borrowings Under Revolving Credit Facility On October 29, 2020, the Company entered into a Credit Agreement (the “Credit Agreement”) among the Company, the Company’s primary operating subsidiaries as co-borrowers, the Lender(s) party thereto from time to time, and Wells Fargo Bank, National Association (“Wells”), as Administrative Agent, swingline lender and an issuing bank. Terms used, but not defined, in this and the following paragraphs of this Note 4 have the meanings set forth in the Credit Agreement or the related Guaranty and Security Agreement. This facility replaced a previously existing credit facility among the Company and certain subsidiaries, the lenders party thereto (which included Wells) and Truist Bank (successor by merger to SunTrust Bank), as administrative agent. The discussion below is a summary and is qualified in its entirety by the actual terms of the Credit Agreement and related documents, including Amendment Nos. 1, 2, and 3, and references below to the Credit Agreement include such amendments, except where otherwise indicated. The Credit Agreement provides for a senior secured asset based revolving credit facility of up to $80 million (the “2020 Revolving Credit Facility”), which matures on April 29, 2024. The 2020 Revolving Credit Facility includes a $5.0 million letter of credit sublimit and provides for the issuance of Swingline Loans. The applicable Credit Agreement also includes a provision permitting the Company, subject to certain conditions, to increase the aggregate amount of the commitments under the 2020 Revolving Credit Facility to an aggregate commitment amount of up to $125 million with optional additional commitments from then existing Lenders or new commitments from additional lenders, although no Lender is obligated to increase its commitment. Availability is determined in accordance with the Borrowing Base, which is generally 85% of Eligible Accounts minus plus plus minus Borrowings initially accrued interest from the applicable borrowing date: (A) if a LIBOR Rate Loan, at a per annum rate equal to the LIBOR Rate plus the LIBOR Rate Margin of 2.25% until the March 28, 2021 financial statements were delivered, and thereafter (i) if the Fixed Charge Coverage Ratio was less than 1.10 :1.00, then the LIBOR Rate plus 2.25% or (ii) if the Fixed Charge Coverage Ratio was greater than or equal to 1.10 :1.00, then the LIBOR Rate plus 2.00% ; (B) if a Base Rate Loan, at a per annum rate equal to the Base Rate plus the Base Rate Margin of 1.25% per annum until the March 28, 2021 financial statements were delivered, and thereafter (i) if the Fixed Charge Coverage Ratio was less than 1.10 :1.00, then the Base Rate plus 1.25% or (ii) if the Fixed Charge Coverage Ratio was greater than or equal to 1.10 :1.00, then the Base Rate plus 1.00% . Pursuant to Amendment No. 3, the Base Rate Margin was changed and is now equal to 1.25% through December 31, 2022 and at all times thereafter that the Monthly Average Excess Availability for the most recently ended calendar month is less than 40% of the Maximum Revolver Amount, or 1.00% , if, after December 31, 2022, the Monthly Average Excess Availability is equal to or more than 40% of the Maximum Revolver Amount ; and the LIBOR Rate Margin (or the Daily One Month LIBOR Rate Margin for LIBOR Rate Loans determined by reference to the Daily One Month LIBOR), is now equal to 2.25% through December 31, 2022 and at all times thereafter that the Monthly Average Excess Availability for the most recently ended calendar month is less than 40% of the Maximum Revolver Amount, or 2.00% if, after December 31, 2022, equal to or more than 40% of the Maximum Revolver Amount. The Credit Agreement previously contained a LIBOR floor of 0.25% so that if the LIBOR Rate is below 0.25% , then the LIBOR Rate will be deemed to be equal to 0.25% for purposes of the Credit Agreement, but that floor is now equal to 0.00% The Company is required to pay a monthly Unused Line Fee on the average daily unused portion of the 2020 Revolving Credit Facility, at a per annum rate equal to 0.25% . The Credit Agreement previously contained one financial covenant, a Fixed Charge Coverage Ratio, which under the terms of the Credit Agreement as initially established, was tested only if Excess Availability (generally, borrowing availability less the aggregate of trade payables and book overdrafts, each in excess of historical amounts) is less than the greater of (a) 16.7% of the maximum amount of the Credit Facility (at closing, $12,525,000 ) and (b) $12,500,000 . The application of this covenant and the Excess Availability requirement have since been modified pursuant to Amendment No. 3 discussed below. In addition, the Credit Agreement contains provisions that could limit our ability to engage in specified transactions or activities, including (but not limited to) investments and acquisitions, sales of assets, payment of dividends, issuance of additional debt and other matters. Borrowings under the 2020 Revolving Credit Facility were initially used to pay all indebtedness outstanding under the previously existing credit facility among the Company and certain subsidiaries, the lenders party thereto and Truist Bank as administrative agent, and may be used for working capital and other general corporate purposes, and as further provided in, and subject to the applicable terms of, the Credit Agreement. As amended as discussed below, the 2020 Revolving Credit Facility currently provides for borrowings of up to $80.0 million. As of June 26, 2022, borrowings under the 2020 Revolving Credit Facility totaled $41.7 million and, therefore, the Company had $38.3 million available for borrowing, subject to the Borrowing Base limitation and compliance with the other applicable terms referenced here, including the Availability Block discussed below. The 2020 Revolving Credit Facility has no lockbox arrangement associated with it and, therefore the outstanding balance is classified as a long-term liability on the Consolidated Balance Sheet as of June 26, 2022. Accordingly, borrowings from and repayments to the Company’s current line of credit are reflected on a gross basis in the cash flows from financing activities in the Consolidated Statements of Cash Flows. The Company is required to make certain prepayments under the 2020 Revolving Credit Facility under certain circumstances, including from net cash proceeds from certain asset dispositions in excess of certain thresholds. The Credit Agreement contains representations, warranties and affirmative covenants. The Credit Agreement also contains negative covenants and restrictions on, among other things: (i) Indebtedness, (ii) liens, (iii) fundamental changes, (iv) disposition of assets, (v) restricted payments (including certain restrictions on redemptions and dividends), (vi) investments and (vii) transactions with affiliates. The Credit Agreement also contains events of default, such as payment defaults, cross-defaults to other material indebtedness, misrepresentations, bankruptcy and insolvency, the occurrence of a Change of Control and the failure to observe the negative covenants and other covenants contained in the Credit Agreement and the other loan documents. Pursuant to a related Guaranty and Security Agreement, by and among the Company, the other borrowers under the Credit Agreement and other operating subsidiaries of the Company (collectively, the “Loan Parties”), and Wells, as Administrative Agent, the Obligations, which include the obligations under the Credit Agreement, are guaranteed by the Loan Parties, and secured by continuing first priority security interests in the Company’s and the other Loan Parties’ (including both borrowers and guarantors) Accounts, Books, Chattel Paper, Deposit Accounts, General Intangibles, Inventory, Negotiable Collateral, Supporting Obligations, and all Money, Cash Equivalents or other assets that come into the possession, custody or control of the Agent or any Lender, and certain related assets, and the proceeds and products of any of the foregoing (the “Collateral”). The security interests in the Collateral are in favor of the Administrative Agent, for the benefit of the Lenders party to the Credit Agreement from time to time and any other holders of the Obligations. The Obligations secured also include certain other obligations of the Loan Parties to the Lenders and their affiliates arising from time to time, relating to swaps, hedges and cash management and other bank products. The 2020 Revolving Credit Facility also restricts our ability to pay dividends and to repurchase our shares. Assuming that no default exists, we may redeem or repurchase up to $2,000,000 of our shares in any twelve thirty-day thirty-day On June 26, 2022, the interest rate applicable to borrowings under the 2020 Revolving Credit Facility was 3.88% . The weighted average interest rate on borrowings under the Company’s Revolving Credit Facility for the first quarter of fiscal year 2023 was 3.25% . Under certain circumstances, the Applicable Rate is subject to change at the Lenders’ option from the Eurodollar Rate plus the Applicable Margin to the Base Rate plus the Applicable Margin. Following an Event of Default, the Lenders may at their option increase the applicable per annum rate to a rate equal to two percentage points above the otherwise applicable rate and, with certain events of default, such increase is automatic, and, at the written election of the Agent or the Required Lenders at any time while an Event of Default exists, the Company will no longer have the option to request that revolving loans be based on the LIBOR Rate or the Daily One Month Libor Rate. Amendment No. 1 Pursuant to Amendment No. 1 to Credit Agreement dated July 12, 2021 (“Amendment No. 1”), between Tessco and Wells, Wells agreed to a 25 -basis point reduction in certain otherwise applicable rates and fees over an agreed period, and the Company and Wells agreed to, among others, certain changes related to the LIBOR rate option to simplify day-to-day management of the 2020 Revolving Credit Facility. These terms have since been further amended and, pursuant to Amendment No. 3, the interest rate terms have been superseded, with the methodology for determining the Applicable Margin now as discussed above. Amendment No. 2 In anticipation of TESSCO Reno Holding, LLC (“Reno Holding”) entering into the Real Estate Note of Reno Holding (the “Note”), as discussed further in Note 5, the Company, TESSCO Inc. and our other operating subsidiaries, and Wells, entered into Amendment No. 2 to Credit Agreement and Consent dated December 29, 2021 (“Amendment No. 2”). Pursuant to Amendment No. 2, and subject to its terms and conditions, among other things, Wells consented to the Note, without requiring that Reno Holding become a borrower or guarantor under the Credit Agreement. Amendment No. 3 On January 5, 2022, at the Company’s request, the Company and its operating subsidiaries, and Wells, entered into Amendment No. 3 to Credit Agreement and Amendment No. 1 to Guaranty and Security Agreement (“Amendment No. 3”), subject to the terms and conditions of which Wells agreed to increase the Commitment under the 2020 Revolving Credit Facility from $75 million to $80 million. Among the terms and conditions, the Company agreed to revert to the interest rate margins originally provided for under the terms of the 2020 Revolving Credit Facility (and which had previously been modified pursuant to Amendment No. 1 to Credit Agreement), as well as change to the methodology for determining the Applicable Margin, as discussed above, and agreed to a $10 million Availability Block for a one year period, but was relieved of any Fixed Charge Coverage Ratio testing for the same one year period without regard to the amount of Excess Availability during that period. Following this one-year period, a $15 million Excess Availability requirement will be imposed unless a Fixed Charge Coverage Ratio of 1:1 is achieved. As a result, and assuming the Company is otherwise in compliance with the terms of the 2020 Revolving Credit Agreement, as amended, and has sufficient Borrowing Base assets, the amount available for borrowing under the 2020 Revolving Credit Facility, without having to meet any Fixed Charge Coverage Ratio, is increased from approximately $62.5 million to $70 million for calendar year 2022.

Debt

Debt	3 Months Ended
Debt	Jun. 26, 2022
Debt
Debt	Note 5. Debt On December 30, 2021, Reno Holding, an indirect wholly owned subsidiary and now owner of the Company’s approximately 115,000 square foot operating facility located in Reno, Nevada (the “Reno Facility”), borrowed an aggregate sum of $6.5 million from Symetra Life Insurance Company (“Symetra”). The indebtedness is evidenced by the Note that provides for monthly payments of $47,858, bears interest at a fixed rate of 3.38% per annum for the first 5 years, is subject to adjustment after 5 years and again after 10 years, and matures in approximately 15 years. The Note and related obligations are secured by a Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing (the “Deed of Trust”) on the Reno Facility. The net proceeds from this borrowing transaction (the “Symetra Loan”) have since been applied to repayment of a portion of the revolving balance under the Company’s 2020 Revolving Credit Facility. An additional $250,000 is to be advanced under the Symetra Loan after roof and possible related repairs to the Reno Facility are satisfactorily completed. The Symetra Loan is limited recourse to the Reno Facility, with typical exceptions in which case it is recourse to Reno Holding, a special purpose entity formed by the Company to own the Reno Facility and related assets. The principal maturities of debt outstanding at June 26, 2022, were as follows: 2023 $ 266,300 2024 365,700 2025 378,200 2026 391,200 2027 404,600 Thereafter 4,799,000 Total $ 6,605,000

Earnings Per Share

Earnings Per Share	3 Months Ended
Earnings Per Share	Jun. 26, 2022
Earnings Per Share
Earnings Per Share	Note 6. Earnings Per Share The Company presents the computation of earnings per share (“EPS”) on a basic and diluted basis. Basic EPS is computed by dividing net income by the weighted average number of shares outstanding during the reported period. Diluted EPS is computed similarly to basic EPS, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential additional common shares that were dilutive had been issued. Common shares are excluded from the calculation if they are determined to be anti-dilutive. Diluted EPS was equal to basic EPS for the three-month period ended June 26, 2022 because the Company operated at a loss. The number of diluted weighted-average common shares would have been 9,167,381 for the three months ended June 26, 2022, if the Company was in a positive earning position. At June 26, 2022, stock options with respect to 709,500 shares of common stock were outstanding, of which 594,500 were anti-dilutive and not included in diluted EPS because the stock options’ exercise price was greater than the average market price of the common shares. There were no anti-dilutive performance stock units (“PSUs”) or restricted stock units (RSUs”) outstanding

Business Segments

Business Segments	3 Months Ended
Business Segments	Jun. 26, 2022
Business Segments
Business Segments	Note 7. Business Segments The Company has two reportable segments, Carrier and Commercial, which are identified based on the information reviewed by the Chief Operating Decision Maker (“CODM”) and are consistent with how the business is managed. Carrier is generally comprised of customers responsible for building and maintaining the infrastructure system and provide airtime service to individual subscribers and Commercial includes value-added resellers, the government channel and private system operator markets. Ventev ® , the Company’s proprietary brand that manufactures products, is included primarily in the Commercial segment. There is a mix of products that the Company sells that are marketed to both segments, as well as certain product classes that primarily serve one segment. As a value-add distributor of products from over 300 manufacturers, the Company sells products across a large number of product groups and industries and, as a result, it is impracticable to provide segment information at the product group level. Inventory typically has a life cycle that tends to be tied to changes in regulation or technology and includes products typically used by business entities or governments. Segment activity for the first quarter of fiscal years 2023 and 2022 are as follows (in thousands): Three Months Ended June 26, 2022 June 27, 2021 Revenues Carrier $ 47,065 $ 46,020 Commercial 65,096 58,936 Total revenues $ 112,161 $ 104,956 Gross Profit Carrier $ 6,265 $ 5,322 Commercial 16,098 14,364 Total gross profit $ 22,363 $ 19,686 The table below presents total assets by reportable segments, which are primarily comprised of accounts receivable. June 26, 2022 March 27, 2022 Total Assets Carrier $ 39,534 $ 38,705 Commercial 39,131 36,797 Corporate 133,353 127,012 Total assets $ 212,018 $ 202,513 The CODM reviews segment results using Gross profit as the segment measure of profit or loss and the Company does not allocate expenses below Gross profit to the segments.

Shares Withheld

Shares Withheld	3 Months Ended
Shares Withheld	Jun. 26, 2022
Shares Withheld
Shares Withheld	Note 8. Shares Withheld The Company withholds shares of common stock from its employees and directors at their request, equal to the minimum federal and state tax withholdings or proceeds due to the Company related to vested PSUs, stock option exercises and vested RSUs. For the three months ended June 26, 2022 and June 27, 2021, the aggregate value of the shares withheld totaled $137,100 and $28,900 , respectively.

Concentration of Risk

Concentration of Risk	3 Months Ended
Concentration of Risk	Jun. 26, 2022
Concentration of Risk Related to Continuing Operations
Concentration of Risk	Note 9. Concentration of Risk The Company’s future results could be negatively impacted by the loss of certain customer and/or vendor relationships. For the fiscal quarters ended June 26, 2022 and June 27, 2021, no customers accounted for more than 10% of consolidated revenues in either quarter. For the fiscal quarters ended June 26, 2022 and June 27, 2021, sales of products purchased from the Company’s largest supplier accounted for 31.4% and 33.3% of revenue from continuing operations, respectively. No other suppliers accounted for more than 10% of consolidated revenues in either quarter.

Discontinued Operations

Discontinued Operations	3 Months Ended
Discontinued Operations	Jun. 26, 2022
Discontinued Operations
Discontinued Operations	Note 10. Discontinued Operations At a closing on December 2, 2020, the Company sold most of its retail inventory, the Ventev brand as it relates to mobile device accessory products, and certain other retail-related assets to Voice Comm, LLC (“Voice Comm”). As part of the sale agreement, the Company is entitled to royalty payments of up to $3.0 million in the aggregate on the sale of Ventev branded products by Voice Comm over a four-year period after the closing. As a result of the disposal described above, the operating results of the former Retail segment have been included in Income (loss) from discontinued operations, net of taxes, in the Consolidated Statements of Income (Loss) for all periods presented. The accompanying unaudited interim Consolidated Financial Statements for all periods presented reflect the results of the Retail segment as a discontinued operation. The following table presents the financial results of the Retail segment for the three months ended June 26, 2022 and June 27, 2021: Three Months Ended June 26, 2022 June 27, 2021 Revenues $ 164,000 $ 1,498,800 Cost of goods sold — 424,900 Gross profit 164,000 1,073,900 Selling, general and administrative expenses (73,800) 584,400 Income (loss) from operations 237,800 489,500 Income (loss) from operations before income taxes 237,800 489,500 Provision for (benefit from) income taxes (4,500) (6,000) Net income (loss) attributable to discontinued operations $ 242,300 $ 495,500 The financial results reflected above may not fully represent our former Retail segment stand-alone operating net income, as the results reported within Income (loss) from discontinued operations, net of taxes, include only certain costs that are directly attributable to this former segment and exclude certain corporate overhead and operational costs that may have been previously allocated for each period. In our Consolidated Statements of Cash Flows, the cash flows from discontinued operations are not separately classified. Cash provided by operating activities from discontinued operations for the three months ended June 26, 2022 and June 27, 2021 was $0.5 million and $4.1 million, respectively.

Recently Issued Accounting Pr_2

Recently Issued Accounting Pronouncements (Policies)	3 Months Ended
Recently Issued Accounting Pronouncements (Policies)	Jun. 26, 2022
Recently Issued Accounting Pronouncements
Recently Issued Accounting Pronouncements	Recently issued accounting pronouncements not yet adopted: In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses rather than incurred losses to estimate credit losses on certain types of financial instruments, including trade receivables. This may result in the earlier recognition of allowances for losses. This ASU is effective for periods beginning after December 15, 2022. The Company is currently evaluating the impact the adoption of this new standard will have on its Consolidated Financial Statements and will adopt the standard on the first day of the Company’s 2024 fiscal year.

Debt (Tables)

Debt (Tables)	3 Months Ended
Debt (Tables)	Jun. 26, 2022
Debt
Schedule of principal maturities of debt outstanding	2023 $ 266,300 2024 365,700 2025 378,200 2026 391,200 2027 404,600 Thereafter 4,799,000 Total $ 6,605,000

Business Segments (Tables)

Business Segments (Tables)	3 Months Ended
Business Segments (Tables)	Jun. 26, 2022
Business Segments
Schedule of segment activity and total assets by segment	Segment activity for the first quarter of fiscal years 2023 and 2022 are as follows (in thousands): Three Months Ended June 26, 2022 June 27, 2021 Revenues Carrier $ 47,065 $ 46,020 Commercial 65,096 58,936 Total revenues $ 112,161 $ 104,956 Gross Profit Carrier $ 6,265 $ 5,322 Commercial 16,098 14,364 Total gross profit $ 22,363 $ 19,686 The table below presents total assets by reportable segments, which are primarily comprised of accounts receivable. June 26, 2022 March 27, 2022 Total Assets Carrier $ 39,534 $ 38,705 Commercial 39,131 36,797 Corporate 133,353 127,012 Total assets $ 212,018 $ 202,513

Discontinued Operations (Tables

Discontinued Operations (Tables)	3 Months Ended
Discontinued Operations (Tables)	Jun. 26, 2022
Discontinued Operations
Summary of financial results of the retail segment discontinued operations	Three Months Ended June 26, 2022 June 27, 2021 Revenues $ 164,000 $ 1,498,800 Cost of goods sold — 424,900 Gross profit 164,000 1,073,900 Selling, general and administrative expenses (73,800) 584,400 Income (loss) from operations 237,800 489,500 Income (loss) from operations before income taxes 237,800 489,500 Provision for (benefit from) income taxes (4,500) (6,000) Net income (loss) attributable to discontinued operations $ 242,300 $ 495,500

Description of Business and B_2

Description of Business and Basis of Presentation (Details)	3 Months Ended
Description of Business and Basis of Presentation (Details)	Jun. 26, 2022
US \| Geographic Concentration Risk \| Revenue
Concentration Risk
Concentration risk (as a percent)	98%

Intangible Assets - (Details)

Intangible Assets - (Details) - USD ($)	3 Months Ended
Intangible Assets - (Details) - USD ($)	Jun. 26, 2022	Jun. 27, 2021	Mar. 27, 2022
Goodwill and Other Intangible Assets
Capitalized computer software	$ 32,208,600		$ 29,463,100
Indefinite lived intangible assets	795,400		$ 795,400
Internally developed computer software
Goodwill and Other Intangible Assets
Amortization expense	$ 189,500	$ 175,500

Borrowings Under Revolving Cr_2

Borrowings Under Revolving Credit Facility - Credit Agreements (Details) - 2020 Revolving Credit Facility					3 Months Ended
	Jan. 01, 2023	Jan. 05, 2022 USD ($)	Jul. 12, 2021	Oct. 29, 2020 USD ($) item	Jun. 26, 2022 USD ($)
Credit Facility
Maximum borrowing capacity		$ 80,000,000		$ 75,000,000	$ 80,000,000
Maximum aggregate commitment amount				$ 125,000,000
Borrowing base as a percent of eligible accounts				85%
Amount of current Aged Inventory Cap				$ 2,750,000
Amount of future Aged Inventory Cap				$ 2,000,000
Fixed charge coverage ratio		1
Average Excess Availability threshold as a percent of maximum revolver amount		40%
Floor percentage					0%
Fee on unused portion of revolving credit facility (as a percent)				0.25%
Number of financial covenants \| item				1
Percentage of maximum amount of credit facility				16.70%
Debt instrument, excess availability amount				$ 12,525,000
Debt instrument, excess availability, threshold amount		$ 15,000,000		$ 12,500,000
Outstanding balance					$ 41,700,000
Available borrowing capacity					38,300,000
Maximum amount of shares that may be repurchased in twelve consecutive month period in connection with payment of tax withholding obligations under equity compensation plans					$ 2,000,000
Consecutive period for limit on share repurchase amount					12 months
Minimum average excess availability threshold required for paying dividends					$ 20,000,000
Period for determining average excess availability threshold required for paying dividend					30 days
Minimum daily excess availability threshold required for paying dividends					$ 13,280,000
Interest rate (as a percent)					3.88%
Weighted average interest rate during the period (as a percent)					3.25%
Reduction in applicable rates and fees			0.0025
Increase of applicable rate upon event of default (as a percent)				2%
Amount of Availability Block		$ 10,000,000
Period of Availability Block		1 year
Period over which entity may be relieved of any Fixed Charge Coverage Ratio testing without regard to the amount of Excess Availability		1 year
Maximum borrowing availability without maintaining fixed charge coverage ratio		$ 70,000,000		$ 62,500,000
Debt Instrument Covenant, If Monthly Average Excess Availability is Greater Than or Equal To 40 Percent of Maximum Revolver Amount
Credit Facility
Interest rate spread on variable rate basis (as a percent)	2%
Minimum
Credit Facility
Inventory age				180 days
Maximum
Credit Facility
Inventory age				181 days
LIBOR
Credit Facility
Interest rate spread on variable rate basis (as a percent)				2.25%	2.25%
Floor percentage				0.25%
LIBOR \| Debt Instrument Covenant, If Fixed Coverage Ratio is Less Than 1.10
Credit Facility
Fixed charge coverage ratio				1.10
Interest rate spread on variable rate basis (as a percent)				2.25%
LIBOR \| Debt Instrument Covenant, If Fixed Coverage Ratio is Greater Than Or Equal To 1.10
Credit Facility
Fixed charge coverage ratio				1.10
Interest rate spread on variable rate basis (as a percent)				2%
Base rate
Credit Facility
Interest rate spread on variable rate basis (as a percent)				1.25%	1.25%
Base rate \| Debt Instrument Covenant, If Fixed Coverage Ratio is Less Than 1.10
Credit Facility
Fixed charge coverage ratio				1.10
Interest rate spread on variable rate basis (as a percent)				1.25%
Base rate \| Debt Instrument Covenant, If Fixed Coverage Ratio is Greater Than Or Equal To 1.10
Credit Facility
Fixed charge coverage ratio				1.10
Interest rate spread on variable rate basis (as a percent)				1%
Base rate \| Debt Instrument Covenant, If Monthly Average Excess Availability is Greater Than or Equal To 40 Percent of Maximum Revolver Amount
Credit Facility
Interest rate spread on variable rate basis (as a percent)	1%
Letter of Credit
Credit Facility
Maximum borrowing capacity				$ 5,000,000

Debt - Terms (Details)

Debt - Terms (Details) ft² in Thousands	Dec. 30, 2021 USD ($) ft²
Debt instrument
Area of operating facility owned (in square feet) \| ft²	115
Symetra Loan
Debt instrument
Aggregate sum borrowed	$ 6,500,000
Monthly payment	$ 47,858
Fixed interest rate (as a percent)	3.38%
First interest period	5 years
Interest rate adjustment period, one	5 years
Interest rate adjustment period, two	10 years
Debt instrument term	15 years
Potential additional amount to be advanced	$ 250,000

Debt - Maturities (Details)

Debt - Maturities (Details) - Debt, excluding revolving line of credit	Jun. 26, 2022 USD ($)
Maturities of debt
2023	$ 266,300
2024	365,700
2025	378,200
2026	391,200
2027	404,600
Thereafter	4,799,000
Total	$ 6,605,000

Earnings Per Share (Details)

Earnings Per Share (Details)	3 Months Ended
Earnings Per Share (Details)	Jun. 26, 2022 shares
Antidilutive Securities
Diluted weighted average common shares, at positive earning position	9,167,381
Options outstanding (in shares)	709,500
Stock Options
Antidilutive Securities
Anti-dilutive equity awards (in shares)	594,500
Performance Stock Units
Antidilutive Securities
Anti-dilutive equity awards (in shares)	0
RSUs
Antidilutive Securities
Anti-dilutive equity awards (in shares)	0

Business Segments - Segment Act

Business Segments - Segment Activity (Details)	3 Months Ended
Business Segments - Segment Activity (Details)	Jun. 26, 2022 USD ($) segment item	Jun. 27, 2021 USD ($)	Mar. 27, 2022 USD ($)
Segments
Number of reportable segments \| segment	2
Market unit activity
Revenues	$ 112,161,200	$ 104,956,100
Gross Profit	22,363,400	19,686,200
Assets	$ 212,017,700		$ 202,513,300
Minimum
Segments
Number manufacturers of products for which the Company is a distributor. \| item	300
Corporate
Market unit activity
Assets	$ 133,353,000		127,012,000
Carrier Segment
Market unit activity
Revenues	47,065,000	46,020,000
Gross Profit	6,265,000	5,322,000
Carrier Segment \| Segments
Market unit activity
Assets	39,534,000		38,705,000
Commercial Segment
Market unit activity
Revenues	65,096,000	58,936,000
Gross Profit	16,098,000	$ 14,364,000
Commercial Segment \| Segments
Market unit activity
Assets	$ 39,131,000		$ 36,797,000

Shares Withheld (Details)

Shares Withheld (Details) - USD ($)	3 Months Ended
Shares Withheld (Details) - USD ($)	Jun. 26, 2022	Jun. 27, 2021
Shares Withheld
Tax withholding for share based compensation	$ 137,100	$ 28,900

Concentration of Risk (Details)

Concentration of Risk (Details)	3 Months Ended
Concentration of Risk (Details)	Jun. 26, 2022	Jun. 27, 2021
Revenue \| Supplier Concentration Risk \| Largest Supplier \| Continuing Operations
Concentration Risk
Concentration risk (as a percent)	31.40%	33.30%

Discontinued Operations - Gener

Discontinued Operations - General (Details) - Discontinued Operations, Disposed of by Sale - Ventev brand and other retail-related assets $ in Millions	Dec. 02, 2020 USD ($)
Discontinued Operations
Maximum royalty payments receivable	$ 3
Royalty payment period	4 years

Discontinued Operations - Finan

Discontinued Operations - Financial Results of Retail Segment (Details) - USD ($)	3 Months Ended
	Sep. 25, 2022	Jun. 26, 2022	Sep. 26, 2021	Jun. 27, 2021
Discontinued Operations Income Statement Disclosures
Net income (loss) attributable to discontinued operations		$ 242,300		$ 495,500
Discontinued Operations, Disposed of by Sale \| Ventev brand and other retail-related assets
Discontinued Operations Income Statement Disclosures
Revenues		164,000		1,498,800
Cost of goods sold				424,900
Gross profit		164,000		1,073,900
Selling, general and administrative expenses		(73,800)		584,400
Income (loss) from operations		237,800		489,500
Income (loss) from operations before income taxes		237,800		489,500
Provision for (benefit from) income taxes		(4,500)		(6,000)
Net income (loss) attributable to discontinued operations		$ 242,300		$ 495,500
Discontinued Operation, Name of Segment	tess:RetailMarketSegmentMember	tess:RetailMarketSegmentMember	tess:RetailMarketSegmentMember	tess:RetailMarketSegmentMember
Cash provided by operating activities from discontinued operations		$ 500,000		$ 4,100,000