Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Mar. 31, 2020 | May 04, 2020 | |
Document Information [Line Items] | ||
Entity Registrant Name | Natural Grocers by Vitamin Cottage, Inc. | |
Entity Central Index Key | 0001547459 | |
Trading Symbol | ngvc | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding (in shares) | 22,510,846 | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Title of 12(b) Security | Common Stock, $0.001 par value |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Sep. 30, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 29,374 | $ 6,214 |
Accounts receivable, net | 5,594 | 5,059 |
Merchandise inventory | 88,411 | 96,179 |
Prepaid expenses and other current assets | 3,253 | 7,728 |
Total current assets | 126,632 | 115,180 |
Property and equipment, net | 154,739 | 201,635 |
Operating lease assets | 349,437 | |
Finance lease assets | 35,429 | |
Deposits and other assets | 657 | 1,638 |
Goodwill and other intangible assets, net | 9,661 | 8,644 |
Deferred financing costs, net | 37 | 17 |
Total assets | 676,592 | 327,114 |
Current liabilities: | ||
Accounts payable | 70,767 | 63,162 |
Accrued expenses | 22,663 | 19,061 |
Capital and financing lease obligations, current portion | 1,045 | |
Operating lease obligations, current portion | 31,765 | |
Finance lease obligations, current portion | 2,550 | |
Total current liabilities | 127,745 | 83,268 |
Long-term liabilities: | ||
Capital and financing lease obligations, net of current portion | 51,475 | |
Operating lease obligations, net of current portion | 336,003 | |
Finance lease obligations, net of current portion | 34,248 | |
Revolving credit facility | 5,692 | |
Deferred income tax liabilities, net | 11,161 | 10,420 |
Deferred rent | 11,393 | |
Leasehold incentives | 7,960 | |
Total long-term liabilities | 381,412 | 86,940 |
Total liabilities | 509,157 | 170,208 |
Commitments (Note 13) | ||
Stockholders’ equity: | ||
Common stock, $0.001 par value, 50,000,000 shares authorized, 22,510,279 shares issued at March 31, 2020 and September 30, 2019 and 22,503,810 and 22,463,057 outstanding at March 31, 2020 and September 30, 2019, respectively | 23 | 23 |
Additional paid-in capital | 56,439 | 56,319 |
Retained earnings | 111,022 | 100,923 |
Common stock in treasury at cost, 6,469 and 47,222 shares, at March 31, 2020 and September 30, 2019, respectively | (49) | (359) |
Total stockholders’ equity | 167,435 | 156,906 |
Total liabilities and stockholders’ equity | $ 676,592 | $ 327,114 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Mar. 31, 2020 | Sep. 30, 2019 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 22,510,279 | 22,510,279 |
Common stock, shares outstanding (in shares) | 22,503,810 | 22,463,057 |
Treasury stock, shares (in shares) | 6,469 | 47,222 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Net sales | $ 277,524 | $ 230,447 | $ 507,554 | $ 451,962 |
Cost of goods sold and occupancy costs | 199,701 | 168,233 | 369,207 | 330,602 |
Gross profit | 77,823 | 62,214 | 138,347 | 121,360 |
Store expenses | 56,878 | 50,175 | 108,305 | 99,298 |
Administrative expenses | 7,038 | 5,761 | 12,857 | 11,076 |
Pre-opening and relocation expenses | 650 | 157 | 1,080 | 829 |
Operating income | 13,257 | 6,121 | 16,105 | 10,157 |
Interest expense, net | (516) | (1,280) | (1,052) | (2,535) |
Income before income taxes | 12,741 | 4,841 | 15,053 | 7,622 |
Provision for income taxes | (3,023) | (981) | (3,467) | (1,565) |
Net income | $ 9,718 | $ 3,860 | $ 11,586 | $ 6,057 |
Net income per common share: | ||||
Basic (in dollars per share) | $ 0.43 | $ 0.17 | $ 0.52 | $ 0.27 |
Diluted (in dollars per share) | $ 0.43 | $ 0.17 | $ 0.51 | $ 0.27 |
Weighted average number of shares of common stock outstanding: | ||||
Basic (in shares) | 22,493,341 | 22,413,055 | 22,482,285 | 22,399,665 |
Diluted (in shares) | 22,543,429 | 22,561,825 | 22,542,319 | 22,579,733 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating activities: | ||
Net income | $ 11,586 | $ 6,057 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 15,595 | 14,576 |
Gain on disposal of property and equipment | (165) | |
Share-based compensation | 552 | 663 |
Deferred income tax expense (benefit) | 475 | (546) |
Non-cash interest expense | 6 | 6 |
Changes in operating assets and liabilities | ||
Accounts receivable, net | (535) | 254 |
Merchandise inventory | 7,768 | (1,107) |
Prepaid expenses and other assets | (483) | 97 |
Income tax receivable | 4,960 | (65) |
Operating lease asset | 14,973 | |
Operating lease liability | (15,285) | |
Accounts payable | 10,146 | 4,469 |
Accrued expenses | 3,602 | (517) |
Deferred compensation | (688) | |
Deferred rent and leasehold incentives | (441) | |
Net cash provided by operating activities | 53,360 | 22,593 |
Investing activities: | ||
Acquisition of property and equipment | (18,759) | (17,644) |
Acquisition of other intangibles | (1,399) | (251) |
Proceeds from sale of property and equipment | 792 | |
Proceeds from property insurance settlements | 27 | 22 |
Net cash used in investing activities | (20,131) | (17,081) |
Financing activities: | ||
Borrowings under credit facility | 226,000 | 185,200 |
Repayments under credit facility | (231,692) | (188,200) |
Capital and financing lease obligation payments | (362) | |
Finance lease obligation payments | (1,082) | |
Dividend to shareholders | (3,148) | |
Loan fees paid | (25) | |
Payments on withholding tax for restricted stock unit vesting | (122) | (265) |
Net cash used in financing activities | (10,069) | (3,627) |
Net increase in cash and cash equivalents | 23,160 | 1,885 |
Cash and cash equivalents, beginning of period | 6,214 | 9,398 |
Cash and cash equivalents, end of period | 29,374 | 11,283 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 328 | 439 |
Cash paid for interest on finance or capital and financing lease obligations, net of capitalized interest of $68 and $59, respectively | 781 | 2,087 |
Income taxes paid | 10 | 2,962 |
Deferred compensation paid | 700 | |
Supplemental disclosures of non-cash investing and financing activities: | ||
Acquisition of property and equipment not yet paid | 3,748 | 1,228 |
Property acquired through capital and financing lease obligations | 4,842 | |
Property acquired through operating lease obligations | 8,170 | |
Property acquired through finance lease obligations | $ 5,232 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Unaudited) (Parentheticals) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Capitalized interest | $ 68 | $ 59 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock Outstanding [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total |
Balance (in shares) | 22,373,382 | ||||
Balance (in shares) at Sep. 30, 2018 | 22,373,382 | ||||
Balance at Sep. 30, 2018 | $ 23 | $ 56,236 | $ 91,507 | $ (1,040) | $ 146,726 |
Net income | 2,197 | 2,197 | |||
Share-based compensation (in shares) | 18,928 | ||||
Share-based compensation | 101 | 144 | 245 | ||
Balance (in shares) at Dec. 31, 2018 | 22,392,310 | ||||
Balance at Dec. 31, 2018 | $ 23 | 56,337 | 93,704 | (896) | 149,168 |
Balance (in shares) | 22,392,310 | ||||
Balance (in shares) at Sep. 30, 2018 | 22,373,382 | ||||
Balance at Sep. 30, 2018 | $ 23 | 56,236 | 91,507 | (1,040) | 146,726 |
Net income | 6,057 | ||||
Balance (in shares) at Mar. 31, 2019 | 22,431,553 | ||||
Balance at Mar. 31, 2019 | $ 23 | 56,192 | 97,564 | (598) | 153,181 |
Balance (in shares) | 22,431,553 | ||||
Balance (in shares) | 22,392,310 | ||||
Balance (in shares) at Dec. 31, 2018 | 22,392,310 | ||||
Balance at Dec. 31, 2018 | $ 23 | 56,337 | 93,704 | (896) | 149,168 |
Net income | 3,860 | 3,860 | |||
Share-based compensation (in shares) | 39,243 | ||||
Share-based compensation | (145) | 298 | 153 | ||
Balance (in shares) at Mar. 31, 2019 | 22,431,553 | ||||
Balance at Mar. 31, 2019 | $ 23 | 56,192 | 97,564 | (598) | 153,181 |
Balance (in shares) | 22,431,553 | ||||
Balance (in shares) | 22,431,553 | ||||
Balance (in shares) | 22,463,057 | ||||
Balance (in shares) at Sep. 30, 2019 | 22,463,057 | ||||
Balance at Sep. 30, 2019 | $ 23 | 56,319 | 100,923 | (359) | 156,906 |
Net income | 1,868 | 1,868 | |||
Cash dividends | (1,573) | (1,573) | |||
Share-based compensation (in shares) | 12,661 | ||||
Share-based compensation | 135 | 96 | 231 | ||
Topic 842 transition impact | 1,660 | 1,660 | |||
Balance (in shares) at Dec. 31, 2019 | 22,475,718 | ||||
Balance at Dec. 31, 2019 | $ 23 | 56,454 | 102,878 | (263) | 159,092 |
Balance (in shares) | 22,475,718 | ||||
Balance (in shares) at Sep. 30, 2019 | 22,463,057 | ||||
Balance at Sep. 30, 2019 | $ 23 | 56,319 | 100,923 | (359) | 156,906 |
Net income | 11,586 | ||||
Balance (in shares) at Mar. 31, 2020 | 22,503,810 | ||||
Balance at Mar. 31, 2020 | $ 23 | 56,439 | 111,022 | (49) | 167,435 |
Balance (in shares) | 22,503,810 | ||||
Balance (in shares) | 22,475,718 | ||||
Balance (in shares) at Dec. 31, 2019 | 22,475,718 | ||||
Balance at Dec. 31, 2019 | $ 23 | 56,454 | 102,878 | (263) | 159,092 |
Net income | 9,718 | 9,718 | |||
Cash dividends | (1,574) | (1,574) | |||
Share-based compensation (in shares) | 28,092 | ||||
Share-based compensation | (15) | 214 | 199 | ||
Balance (in shares) at Mar. 31, 2020 | 22,503,810 | ||||
Balance at Mar. 31, 2020 | $ 23 | $ 56,439 | $ 111,022 | $ (49) | $ 167,435 |
Balance (in shares) | 22,503,810 | ||||
Balance (in shares) | 22,503,810 |
Note 1 - Organization
Note 1 - Organization | 6 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Nature of Operations [Text Block] | 1. Organization Nature of Business Natural Grocers by Vitamin Cottage, Inc. (Natural Grocers or the holding company) and its consolidated subsidiaries (collectively, the Company) operate retail stores that specialize in natural and organic groceries, body care products and dietary supplements. The Company operates its retail stores under its trademark Natural Grocers by Vitamin Cottage March 31, 2020, 157 20 153 19 September 30, 2019. |
Note 2 - Basis of Presentation
Note 2 - Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Basis of Presentation and Significant Accounting Policies [Text Block] | 2. Consolidated Financial Statements The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial statements and are in the form prescribed by Article 10 X. not 10 7 10 not September 30. The accompanying unaudited consolidated financial statements include all the accounts of the holding company’s wholly owned subsidiaries, Vitamin Cottage Natural Food Markets, Inc. (the operating company) and Vitamin Cottage Two Ltd. Liability Company ( VC2 The Company has one three six March 31, 2020 2019, Three months ended March 31, Six months ended March 31, 2020 2019 2020 2019 Grocery 67 % 68 68 68 Dietary supplements 23 22 22 21 Other 10 10 10 11 100 % 100 100 100 Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities (including the fair value of assets acquired and liabilities assumed in a business combination), the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management reviews its estimates on an ongoing basis, including those related to: allowances for self-insurance reserves; valuation of inventories; useful lives of property and equipment for depreciation and amortization; impairment of finite-lived intangible assets, long-lived assets, and goodwill; lease assumptions; and litigation based on currently available information. Changes in facts and circumstances may Recently Adopted Accounting Pronouncements The Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016 02, 842 February 2016 2018 2019 842” 842 12 842, The Company adopted ASC 842 October 1, 2019, first 2020, not not The adoption of ASC 842 $359.6 $377.8 October 1, 2019. Additionally, the Company recognized a cumulative effect adjustment, which increased retained earnings by $1.7 three six March 31, 2020. $41.9 $40.2 October 1, 2019, 7 In June 2018, 2018 07, 718, 2018 07 2018 07 718 2018 07 first September 30, 2020, not three six March 31, 2020. Recent Accounting Pronouncements In June 2016, 2016 13, 326, 2016 13 2016 13 2016 13 2019 10, November 2019, 2016 13 2016 13 first September 30, 2024. In January 2017, 2017 04, 350, 2017 04 2017 04 first two not 2019 10 2016 13 2017 04 first September 30, 2024. In March 2020, 2020 04, 848, 2020 04 not |
Note 3 - Revenue Recognition
Note 3 - Revenue Recognition | 6 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | 3. Revenue Recognition The nature of the goods the Company transfers to customers at the point of sale consists of merchandise purchased for resale. In these transactions, the Company acts as a principal and recognizes revenue (net sales) from the sale of goods when control of the promised goods is transferred to the customer. Control refers to the ability of the customer to direct the use of, and obtain substantially all the remaining benefits from, the transferred goods. The Company’s performance obligations are satisfied upon the transfer of goods to the customer (at the point of sale), and payment from the customer is also due at that time. Transaction prices are considered fixed. Discounts provided to customers at the point of sale are recognized as a reduction in revenue as the goods are sold. Revenue excludes sales and usage-based taxes collected. Proceeds from the sale of gift cards are recorded as a liability at the time of sale and recognized as revenue when the gift cards are redeemed by the customer and the performance obligation is satisfied by the Company. The Company also recognizes revenue for a portion of gift card values that is not not The balance of contract liabilities related to unredeemed gift cards was $1.2 $1.0 March 31, 2020 September 30, 2019, three March 31, 2020 2019 $0 $0.2 September 30, 2019 2018, six March 31, 2020 2019 $0.8 $0.5 September 30, 2019 2018, The following table disaggregates our revenue by product category for the three six March 31, 2020 2019, Three months ended March 31, Six months ended March 31, 2020 2019 2020 2019 Grocery $ 186,171 157,802 344,106 309,103 Dietary supplements 63,969 49,700 111,870 95,484 Other 27,384 22,945 51,578 47,375 $ 277,524 230,447 507,554 451,962 |
Note 4 - Earnings Per Share
Note 4 - Earnings Per Share | 6 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 4 . Earnings Per Share Basic earnings per share (EPS) is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted EPS reflects the potential dilution that could occur if the Company’s granted but unvested restricted stock units (RSUs) were to vest, resulting in the issuance of common stock that would then share in the Company’s earnings. Presented below are basic and diluted EPS for the three six March 31, 2020 2019, Three months ended Six months ended 2020 2019 2020 2019 Net income $ 9,718 3,860 11,586 6,057 Weighted average number of shares of common stock outstanding 22,493,341 22,413,055 22,482,285 22,399,665 Effect of dilutive securities 50,088 148,770 60,034 180,068 Weighted average number of shares of common stock outstanding including effect of dilutive securities 22,543,429 22,561,825 22,542,319 22,579,733 Basic earnings per share $ 0.43 0.17 0.52 0.27 Diluted earnings per share $ 0.43 0.17 0.51 0.27 There were 142,020 181,720 three six March 31, 2020, 72,599 27,574 three six March 31, 2019, The Company paid a dividend of $0.07 first two 2020. not three six March 31, 2019. |
Note 5 - Debt
Note 5 - Debt | 6 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Debt and Capital Leases Disclosures [Text Block] | 5 . Debt Credit Facility On January 28, 2016, VC2. $50.0 $5.0 November 13, 2024. The Credit Facility requires compliance with certain customary operational and financial covenants, including a leverage ratio. The Credit Facility also contains certain other customary limitations on the Company’s ability to incur additional debt, guarantee other obligations, grant liens on assets and make investments or acquisitions, among other limitations. Additionally, the Credit Facility prohibits the payment of cash dividends to the holding company from the operating company without the administrative agent’s consent, provided that so long as no may not $10.0 The Company had $0 $5.7 March 31, 2020 September 30, 2019, March 31, 2020 September 30, 2019, $1.0 $49.0 $43.3 March 31, 2020 September 30, 2019, As of March 31, 2020 September 30, 2019, Lease Obligations As of September 30, 2019, 23 7 October 1, 2019, 842: March 31, 2020, 17 No Interest The Company incurred gross interest expense of approximately $0.5 $1.3 three March 31, 2020 2019, $1.1 $2.6 six March 31, 2020 2019, three six March 31, 2020 2019 $0.1 three March 31, 2020 2019 $0.1 six March 31, 2020 2019. |
Note 6 - Stockholders' Equity
Note 6 - Stockholders' Equity | 6 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 6. tock holders’ Equity Share Repurchases In May 2016, two may $10.0 May 2018, two May 4, 2020, May 31, 2022 ( 14 10b 18 1934, may 10b5 1 not may Prior to October 1, 2018, 199,543 not October 1, 2018 March 31, 2020. may $8.3 Prior to October 1, 2019, 152,321 $1.3 three six March 31, 2020, 28,092 $0.2 40,753 $0.3 three six March 31, 2019, 39,243 $0.3 58,171 $0.4 March 31, 2020 September 30, 2019, 6,469 47,222 $0.1 $0.4 |
Note 7 - Lease Obligations
Note 7 - Lease Obligations | 6 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Lessee, Operating and Finance Leases [Text Block] | 7. Lease Obligations The Company leases most of its stores, a bulk food repackaging facility and distribution center and its administrative offices. The Company determines if an arrangement is a lease or contains a lease at inception. Lease terms generally range from 10 25 Operating lease liabilities represent the present value of lease payments not Most leases include one five Variable payments related to pass-through costs for maintenance, taxes and insurance or adjustments based on an index such as Consumer Price Index are not As most of the Company’s lease agreements do not third Leases are recorded at the commencement date (the date the underlying asset becomes available for use) for the present value of lease payments, less tenant improvement allowances received or receivable. Leases with a term of 12 not The Company’s lease agreements do not The Company subleases certain real estate or portions thereof to third 2030. The Company has five one one 12 November 1999, February 2027 $7.3 $7.6 $0.3 $0.7 three six March 31, 2020, The components of total lease cost for the three six March 31, 2020 Lease cost Classification Three months ended March 31, 2020 Six months ended March 31, 2020 Operating lease cost: Cost of goods sold and occupancy costs $ 10,586 21,252 Store expenses 79 159 Administrative expenses 77 159 Pre-opening and relocation expenses 122 122 Finance lease cost: Depreciation of right-of-use assets Store expenses ( 1 ) 726 1,487 Interest on lease liabilities Interest expense, net (1) 385 803 Short-term lease cost Store expenses 443 528 Variable lease cost Cost of goods sold and occupancy costs (2) 1,367 2,605 Sublease income Store expenses (92 ) (185 ) Total lease cost $ 13,693 26,930 1 not 2 Additional information related to the Company’s leases for the three six March 31, 2020 Three months ended March 31, 2020 Six months ended March 31, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 11,003 22,004 Operating cash flows from finance leases 431 849 Financing cash flows from finance leases 564 1,082 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases 1,792 7,230 Finance leases 3,910 5,232 Weighted-average remaining lease term (in years): Operating leases 12.0 Finance leases 12.0 Weighted-average discount rate: Operating leases 3.6 % Finance leases 4.9 % In addition, during the six March 31, 2020, one $2.5 $2.4 Future lease payments under non-cancellable leases as of March 31, 2020 Fiscal Year Operating leases Finance leases Total Remainder of 2020 $ 22,276 2,132 24,408 2021 44,151 4,367 48,518 2022 43,444 4,389 47,833 2023 42,561 4,433 46,994 2024 40,458 4,499 44,957 Thereafter 265,950 30,579 296,529 Total future undiscounted lease payments 458,840 50,399 509,239 Less tenant improvement allowance receivable from landlord (401 ) (218 ) (619 ) Less imputed interest (90,671 ) (13,383 ) (104,054 ) Total reported lease liability 367,768 36,798 404,566 Less current portion (31,765 ) (2,550 ) (34,315 ) Noncurrent lease liability $ 336,003 34,248 370,251 The table above excludes $10.7 March 31, 2020 not Prior to the Company’s adoption of ASC 842, 842, 842. 842 10 September 30, 2019) Minimum rental commitments and sublease rental income under the terms of the Company’s operating leases as of September 30, 2019 Fiscal Year Third Related Sublease rental income Total operating 2020 $ 41,646 1,081 (422 ) 42,305 2021 41,484 1,058 (418 ) 42,124 2022 41,081 1,056 (424 ) 41,713 2023 40,175 1,056 (413 ) 40,818 2024 38,012 1,056 (257 ) 38,811 Thereafter 262,086 2,062 (772 ) 263,376 Total payments $ 464,484 7,369 (2,706 ) 469,147 Future payments under the terms of the leases for opened stores included in capital lease finance obligations and capital lease obligations as of September 30, 2019 Fiscal Year Interest Principal Interest Principal payments on Total future capital lease finance and capital lease obligations 2020 $ 3,871 569 605 333 5,378 2021 3,816 656 570 368 5,410 2022 3,751 747 532 407 5,437 2023 3,675 880 488 460 5,503 2024 3,578 1,095 439 515 5,627 Thereafter 15,088 8,244 2,142 3,889 29,363 Non-cash derecognition of capital lease finance obligations at end of lease term — 27,367 — — 27,367 Total future payments $ 33,779 39,558 4,776 5,972 84,085 Future payments under the terms of the leases for the store locations at which construction was in progress as of September 30, 2019, two 2020, Fiscal Year Interest expense on capital lease finance obligations for assets under construction Principal payments on capital lease finance obligations for assets under construction Interest for assets under construction Principal payments on capital lease for assets under construction 2020 $ 118 18 237 123 2021 161 26 236 132 2022 160 28 228 139 2023 158 30 221 147 2024 155 33 213 155 Thereafter 1,368 756 1,827 3,944 Non-cash derecognition of capital lease finance obligations at end of lease term — 1,459 — — Total future payments $ 2,120 2,350 2,962 4,640 |
Note 8 - Property and Equipment
Note 8 - Property and Equipment | 6 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 8. The Company had the following property and equipment balances as of March 31, 2020 September 30, 2019, As of Useful lives (in years) March 31 , 20 20 September 30, 201 9 Construction in process n/a $ 6,158 15,145 Capitalized real estate leases for build-to-suit stores, including unamortized land of $0 and $617, respectively 40 — 42,320 Capitalized real estate leases 15 — 7,241 Land n/a 1,390 1,230 Buildings 40 26,735 23,571 Land improvements 5 – 24 1,572 1,498 Leasehold and building improvements 1 – 25 152,977 144,318 Fixtures and equipment 5 – 7 136,897 131,491 Computer hardware and software 3 – 5 22,981 21,672 348,710 388,486 Less accumulated depreciation and amortization (193,971 ) (186,851 ) Property and equipment, net $ 154,739 201,635 Prior to the Company’s adoption of ASC 842 October 1, 2019, 842, 7 Depreciation and amortization expense for the three six March 31, 2020 2019 Three months ended Six months ended 2020 2019 2020 2019 Depreciation and amortization expense included in cost of goods sold and occupancy costs $ 194 185 383 367 Depreciation and amortization expense included in store expenses 7,393 6,848 14,633 13,690 Depreciation and amortization expense included in administrative expenses 301 257 579 519 Total depreciation and amortization expense $ 7,888 7,290 15,595 14,576 |
Note 9 - Goodwill and Other Int
Note 9 - Goodwill and Other Intangible Assets | 6 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 9 . Goodwill and Other Intangible Assets The Company had the following goodwill and other intangible asset balances as of March 31, 2020 September 30, 2019, Useful lives As of (in years) March 31 , 20 20 September 30, 201 9 Amortizable intangible assets: Other intangibles 0.5 - 3 $ 3,496 2,677 Amortizable intangible assets 3,496 2,677 Less accumulated amortization (1,974 ) (1,592 ) Amortizable intangible assets, net 1,522 1,085 Other intangibles in process 2,552 1,972 Trademark Indefinite 389 389 Total other intangibles, net 4,463 3,446 Goodwill Indefinite 5,198 5,198 Total goodwill and other intangibles, net $ 9,661 8,644 |
Note 10 - Accrued Expenses
Note 10 - Accrued Expenses | 6 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 10 . Accrued Expenses The composition of accrued expenses as of March 31, 2020 September 30, 2019 As of March 31 , September 30, 20 20 201 9 Payroll and employee-related expenses $ 11,193 8,447 Accrued property, sales and use tax payable 7,738 7,761 Accrued marketing expenses 994 477 Deferred revenue related to gift card sales 1,599 1,410 Other 1,139 966 Total accrued expenses $ 22,663 19,061 |
Note 11 - Income Taxes
Note 11 - Income Taxes | 6 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 1 1 . Income Taxes Income taxes are accounted for in accordance with the provisions of ASC 740. On March 27, 2020, 19 As a result of the technical amendments made by the CARES Act to QIP, the Company is currently analyzing the acceleration of depreciation expenses. These accelerated tax depreciation expenses of approximately $4.0 no not |
Note 12 - Related Party Transac
Note 12 - Related Party Transactions | 6 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 1 2 . Related Party Transactions The Company has ongoing relationships with related entities as noted below: Chalet Properties, LLC: five four $0.2 $0.3 three March 31, 2020 2019, $0.5 $0.6 six March 31, 2020 2019, Isely Family Land Trust LLC: one $0.1 three March 31, 2020 2019. $0.2 six March 31, 2020 2019. FTVC LLC: one four $0.1 three March 31, 2020 2019. $0.1 six March 31, 2020 2019. |
Note 13 - Commitments and Conti
Note 13 - Commitments and Contingencies | 6 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 1 3 . Commitments and Contingencies The Company is periodically involved in various legal proceedings that are incidental to the conduct of its business, including but not may not |
Note 14 - Subsequent Event
Note 14 - Subsequent Event | 6 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 1 4 . Subsequent Event On May 4, 2020, May 31, 2022. On May 6, 2020, $0.07 June 16, 2020 June 1, 2020. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Consolidated Financial Statements The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial statements and are in the form prescribed by Article 10 X. not 10 7 10 not September 30. The accompanying unaudited consolidated financial statements include all the accounts of the holding company’s wholly owned subsidiaries, Vitamin Cottage Natural Food Markets, Inc. (the operating company) and Vitamin Cottage Two Ltd. Liability Company ( VC2 The Company has one three six March 31, 2020 2019, Three months ended March 31, Six months ended March 31, 2020 2019 2020 2019 Grocery 67 % 68 68 68 Dietary supplements 23 22 22 21 Other 10 10 10 11 100 % 100 100 100 |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities (including the fair value of assets acquired and liabilities assumed in a business combination), the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management reviews its estimates on an ongoing basis, including those related to: allowances for self-insurance reserves; valuation of inventories; useful lives of property and equipment for depreciation and amortization; impairment of finite-lived intangible assets, long-lived assets, and goodwill; lease assumptions; and litigation based on currently available information. Changes in facts and circumstances may |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Pronouncements The Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016 02, 842 February 2016 2018 2019 842” 842 12 842, The Company adopted ASC 842 October 1, 2019, first 2020, not not The adoption of ASC 842 $359.6 $377.8 October 1, 2019. Additionally, the Company recognized a cumulative effect adjustment, which increased retained earnings by $1.7 three six March 31, 2020. $41.9 $40.2 October 1, 2019, 7 In June 2018, 2018 07, 718, 2018 07 2018 07 718 2018 07 first September 30, 2020, not three six March 31, 2020. Recent Accounting Pronouncements In June 2016, 2016 13, 326, 2016 13 2016 13 2016 13 2019 10, November 2019, 2016 13 2016 13 first September 30, 2024. In January 2017, 2017 04, 350, 2017 04 2017 04 first two not 2019 10 2016 13 2017 04 first September 30, 2024. In March 2020, 2020 04, 848, 2020 04 not |
Note 2 - Basis of Presentatio_2
Note 2 - Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Schedule of Product Information [Table Text Block] | Three months ended March 31, Six months ended March 31, 2020 2019 2020 2019 Grocery 67 % 68 68 68 Dietary supplements 23 22 22 21 Other 10 10 10 11 100 % 100 100 100 |
Note 3 - Revenue Recognition (T
Note 3 - Revenue Recognition (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three months ended March 31, Six months ended March 31, 2020 2019 2020 2019 Grocery $ 186,171 157,802 344,106 309,103 Dietary supplements 63,969 49,700 111,870 95,484 Other 27,384 22,945 51,578 47,375 $ 277,524 230,447 507,554 451,962 |
Note 4 - Earnings Per Share (Ta
Note 4 - Earnings Per Share (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three months ended Six months ended 2020 2019 2020 2019 Net income $ 9,718 3,860 11,586 6,057 Weighted average number of shares of common stock outstanding 22,493,341 22,413,055 22,482,285 22,399,665 Effect of dilutive securities 50,088 148,770 60,034 180,068 Weighted average number of shares of common stock outstanding including effect of dilutive securities 22,543,429 22,561,825 22,542,319 22,579,733 Basic earnings per share $ 0.43 0.17 0.52 0.27 Diluted earnings per share $ 0.43 0.17 0.51 0.27 |
Note 7 - Lease Obligations (Tab
Note 7 - Lease Obligations (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Lease, Cost [Table Text Block] | Lease cost Classification Three months ended March 31, 2020 Six months ended March 31, 2020 Operating lease cost: Cost of goods sold and occupancy costs $ 10,586 21,252 Store expenses 79 159 Administrative expenses 77 159 Pre-opening and relocation expenses 122 122 Finance lease cost: Depreciation of right-of-use assets Store expenses ( 1 ) 726 1,487 Interest on lease liabilities Interest expense, net (1) 385 803 Short-term lease cost Store expenses 443 528 Variable lease cost Cost of goods sold and occupancy costs (2) 1,367 2,605 Sublease income Store expenses (92 ) (185 ) Total lease cost $ 13,693 26,930 |
Additional Information Related to Leases | Three months ended March 31, 2020 Six months ended March 31, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 11,003 22,004 Operating cash flows from finance leases 431 849 Financing cash flows from finance leases 564 1,082 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases 1,792 7,230 Finance leases 3,910 5,232 Weighted-average remaining lease term (in years): Operating leases 12.0 Finance leases 12.0 Weighted-average discount rate: Operating leases 3.6 % Finance leases 4.9 % |
Operating and Finance Lease, Liability, Maturity [Table Text Block] | Fiscal Year Operating leases Finance leases Total Remainder of 2020 $ 22,276 2,132 24,408 2021 44,151 4,367 48,518 2022 43,444 4,389 47,833 2023 42,561 4,433 46,994 2024 40,458 4,499 44,957 Thereafter 265,950 30,579 296,529 Total future undiscounted lease payments 458,840 50,399 509,239 Less tenant improvement allowance receivable from landlord (401 ) (218 ) (619 ) Less imputed interest (90,671 ) (13,383 ) (104,054 ) Total reported lease liability 367,768 36,798 404,566 Less current portion (31,765 ) (2,550 ) (34,315 ) Noncurrent lease liability $ 336,003 34,248 370,251 |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Fiscal Year Third Related Sublease rental income Total operating 2020 $ 41,646 1,081 (422 ) 42,305 2021 41,484 1,058 (418 ) 42,124 2022 41,081 1,056 (424 ) 41,713 2023 40,175 1,056 (413 ) 40,818 2024 38,012 1,056 (257 ) 38,811 Thereafter 262,086 2,062 (772 ) 263,376 Total payments $ 464,484 7,369 (2,706 ) 469,147 |
Asset under Construction, Capital Lease Finance Obligations [Member] | |
Notes Tables | |
Schedule of Future Minimum Lease Payments for Capital and Finance Lease Obligations for Assets Under Construction [Table Text Block] | Fiscal Year Interest expense on capital lease finance obligations for assets under construction Principal payments on capital lease finance obligations for assets under construction Interest for assets under construction Principal payments on capital lease for assets under construction 2020 $ 118 18 237 123 2021 161 26 236 132 2022 160 28 228 139 2023 158 30 221 147 2024 155 33 213 155 Thereafter 1,368 756 1,827 3,944 Non-cash derecognition of capital lease finance obligations at end of lease term — 1,459 — — Total future payments $ 2,120 2,350 2,962 4,640 |
Asset Held under Real Estate Leases for Build-to-suit Stores, Capital and Financing Lease Obligations [Member] | |
Notes Tables | |
Schedule of Future Minimum Lease Payments for Capital and Finance Lease Obligations for Assets Under Construction [Table Text Block] | Fiscal Year Interest Principal Interest Principal payments on Total future capital lease finance and capital lease obligations 2020 $ 3,871 569 605 333 5,378 2021 3,816 656 570 368 5,410 2022 3,751 747 532 407 5,437 2023 3,675 880 488 460 5,503 2024 3,578 1,095 439 515 5,627 Thereafter 15,088 8,244 2,142 3,889 29,363 Non-cash derecognition of capital lease finance obligations at end of lease term — 27,367 — — 27,367 Total future payments $ 33,779 39,558 4,776 5,972 84,085 |
Note 8 - Property and Equipme_2
Note 8 - Property and Equipment (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | As of Useful lives (in years) March 31 , 20 20 September 30, 201 9 Construction in process n/a $ 6,158 15,145 Capitalized real estate leases for build-to-suit stores, including unamortized land of $0 and $617, respectively 40 — 42,320 Capitalized real estate leases 15 — 7,241 Land n/a 1,390 1,230 Buildings 40 26,735 23,571 Land improvements 5 – 24 1,572 1,498 Leasehold and building improvements 1 – 25 152,977 144,318 Fixtures and equipment 5 – 7 136,897 131,491 Computer hardware and software 3 – 5 22,981 21,672 348,710 388,486 Less accumulated depreciation and amortization (193,971 ) (186,851 ) Property and equipment, net $ 154,739 201,635 |
Depreciation and Amortization Expense [Table Text Block] | Three months ended Six months ended 2020 2019 2020 2019 Depreciation and amortization expense included in cost of goods sold and occupancy costs $ 194 185 383 367 Depreciation and amortization expense included in store expenses 7,393 6,848 14,633 13,690 Depreciation and amortization expense included in administrative expenses 301 257 579 519 Total depreciation and amortization expense $ 7,888 7,290 15,595 14,576 |
Note 9 - Goodwill and Other I_2
Note 9 - Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | Useful lives As of (in years) March 31 , 20 20 September 30, 201 9 Amortizable intangible assets: Other intangibles 0.5 - 3 $ 3,496 2,677 Amortizable intangible assets 3,496 2,677 Less accumulated amortization (1,974 ) (1,592 ) Amortizable intangible assets, net 1,522 1,085 Other intangibles in process 2,552 1,972 Trademark Indefinite 389 389 Total other intangibles, net 4,463 3,446 Goodwill Indefinite 5,198 5,198 Total goodwill and other intangibles, net $ 9,661 8,644 |
Note 10 - Accrued Expenses (Tab
Note 10 - Accrued Expenses (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | As of March 31 , September 30, 20 20 201 9 Payroll and employee-related expenses $ 11,193 8,447 Accrued property, sales and use tax payable 7,738 7,761 Accrued marketing expenses 994 477 Deferred revenue related to gift card sales 1,599 1,410 Other 1,139 966 Total accrued expenses $ 22,663 19,061 |
Note 1 - Organization (Details
Note 1 - Organization (Details Textual) | Mar. 31, 2020 | Sep. 30, 2019 |
Number of Stores | 157 | 153 |
Number of States in which Entity Operates | 20 | 19 |
Note 2 - Basis of Presentatio_3
Note 2 - Basis of Presentation and Summary of Significant Accounting Policies (Details Textual) $ in Thousands | 6 Months Ended | ||
Mar. 31, 2020USD ($) | Oct. 01, 2019USD ($) | Sep. 30, 2019USD ($) | |
Number of Reportable Segments | 1 | ||
Operating Lease, Right-of-Use Asset | $ 349,437 | ||
Operating Lease, Liability, Total | 367,768 | ||
Retained Earnings (Accumulated Deficit), Ending Balance | 111,022 | $ 100,923 | |
Accounting Standards Update 2016-01 [Member] | |||
Operating Lease, Right-of-Use Asset | $ 359,600 | ||
Operating Lease, Liability, Total | $ 377,800 | ||
Capital Lease Obligations, Total | (41,900) | ||
Capital Leases, Balance Sheet, Assets by Major Class, Net, Total | (40,200) | ||
Accounting Standards Update 2016-01 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
Retained Earnings (Accumulated Deficit), Ending Balance | $ 1,700 |
Note 2 - Basis of Presentatio_4
Note 2 - Basis of Presentation and Summary of Significant Accounting Policies - Sales From Natural and Organic Retail Stores (Details) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Sales percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Grocery [Member] | ||||
Sales percentage | 67.00% | 68.00% | 68.00% | 68.00% |
Dietary Supplements [Member] | ||||
Sales percentage | 23.00% | 22.00% | 22.00% | 21.00% |
Other [Member] | ||||
Sales percentage | 10.00% | 10.00% | 10.00% | 11.00% |
Note 3 - Revenue Recognition (D
Note 3 - Revenue Recognition (Details Textual) - Gift Cards [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Sep. 30, 2019 | |
Contract with Customer, Liability, Total | $ 1,200 | $ 1,200 | $ 1,000 | ||
Contract with Customer, Liability, Revenue Recognized | $ 0 | $ 200 | $ 800 | $ 500 |
Note 3 - Revenue Recognition -
Note 3 - Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Net sales | $ 277,524 | $ 230,447 | $ 507,554 | $ 451,962 |
Grocery [Member] | ||||
Net sales | 186,171 | 157,802 | 344,106 | 309,103 |
Dietary Supplements [Member] | ||||
Net sales | 63,969 | 49,700 | 111,870 | 95,484 |
Manufactured Product, Other [Member] | ||||
Net sales | $ 27,384 | $ 22,945 | $ 51,578 | $ 47,375 |
Note 4 - Earnings Per Share (De
Note 4 - Earnings Per Share (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Dividends, Total (in dollars per share) | $ 0.07 | $ 0.07 | ||
Dividends, Total | $ 0 | $ 0 | ||
Restricted Stock Units (RSUs) [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 142,020 | 72,599 | 181,720 | 27,574 |
Note 4 - Earnings Per Share - B
Note 4 - Earnings Per Share - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Net income | $ 9,718 | $ 3,860 | $ 11,586 | $ 6,057 |
Weighted average number of shares of common stock outstanding (in shares) | 22,493,341 | 22,413,055 | 22,482,285 | 22,399,665 |
Effect of dilutive securities (in shares) | 50,088 | 148,770 | 60,034 | 180,068 |
Weighted average number of shares of common stock outstanding including effect of dilutive securities (in shares) | 22,543,429 | 22,561,825 | 22,542,319 | 22,579,733 |
Basic earnings per share (in dollars per share) | $ 0.43 | $ 0.17 | $ 0.52 | $ 0.27 |
Diluted earnings per share (in dollars per share) | $ 0.43 | $ 0.17 | $ 0.51 | $ 0.27 |
Note 5 - Debt (Details Textual)
Note 5 - Debt (Details Textual) $ in Thousands | Jan. 28, 2016USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Sep. 30, 2019USD ($) |
Capital and Financing Lease Obligations Number of Leases | 17 | 17 | 23 | |||
Interest Expense, Debt, Excluding Amortization | $ 500 | $ 1,300 | $ 1,100 | $ 2,600 | ||
Interest Costs Capitalized | 100 | $ 100 | 100 | $ 100 | ||
Letter of Credit [Member] | ||||||
Letters of Credit Outstanding, Amount | 1,000 | 1,000 | ||||
The New Credit Facility [Member] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50,000 | |||||
Line of Credit Facility, Dividend Restrictions, Maximum Amount | 10,000 | |||||
Long-term Line of Credit, Total | 0 | 0 | $ 5,700 | |||
Line of Credit Facility, Remaining Borrowing Capacity | $ 49,000 | $ 49,000 | $ 43,300 | |||
The New Credit Facility [Member] | Standby Letters of Credit [Member] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000 |
Note 6 - Stockholders' Equity (
Note 6 - Stockholders' Equity (Details Textual) - USD ($) $ in Thousands | May 02, 2018 | May 04, 2016 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Sep. 30, 2019 | Mar. 31, 2020 | Sep. 30, 2018 |
Stock Repurchase Program, Period in Force (Year) | 2 years | 2 years | |||||||
Stock Repurchase Program, Authorized Amount | $ 10,000 | ||||||||
Stock Repurchased During Period, Shares (in shares) | 0 | 199,543 | |||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 8,300 | $ 8,300 | $ 8,300 | ||||||
Stock Issued During Period, Shares, Treasury Stock Reissued for Equity-based Compensation Obligations (in shares) | 28,092 | 39,243 | 40,753 | 58,171 | 152,321 | ||||
Stock Issued During Period, Value, Treasury Stock Reissued for Equity-based Compensation Obligations | $ 200 | $ 300 | $ 300 | $ 400 | $ 1,300 | ||||
Treasury Stock, Shares, Ending Balance (in shares) | 6,469 | 6,469 | 47,222 | 6,469 | |||||
Treasury Stock, Shares, Ending Balance | $ 49 | $ 49 | $ 359 | $ 49 |
Note 7 - Lease Obligations (Det
Note 7 - Lease Obligations (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | |
Lessee, Operating Lease, Renewal Term (Year) | 5 years | 5 years | |
Operating Lease, Right-of-Use Asset | $ 349,437 | $ 349,437 | |
Operating Lease, Liability, Total | 367,768 | 367,768 | |
Increase (Decrease) in Operating Lease Liability for Purchase | (2,500) | ||
Decrease in Operating Right-of-use Asset for Assets Transferred in Property and Equipment | 2,400 | ||
Lessee, Operating Lease, Lease Not yet Commenced, Minimum Lease Payments | 10,700 | 10,700 | |
Related Parties [Member] | |||
Operating Lease, Right-of-Use Asset | 7,300 | 7,300 | |
Operating Lease, Liability, Total | 7,600 | 7,600 | |
Operating Lease, Expense | $ 300 | $ 700 | |
Minimum [Member] | |||
Lessee, Operating Lease, Term of Contract (Year) | 10 years | 10 years | |
Maximum [Member] | |||
Lessee, Operating Lease, Term of Contract (Year) | 25 years | 25 years |
Note 7 - Lease Obligations - Le
Note 7 - Lease Obligations - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2020 | ||
Total lease cost | $ 13,693 | $ 26,930 | |
Cost of Sales [Member] | |||
Operating lease cost | 10,586 | 21,252 | |
Variable lease cost | [1] | 1,367 | 2,605 |
Store Expenses [Member] | |||
Operating lease cost | 79 | 159 | |
Depreciation of right-of-use assets | [2] | 726 | 1,487 |
Short-term lease cost | 443 | 528 | |
Sublease income | (92) | (185) | |
General and Administrative Expense [Member] | |||
Operating lease cost | 77 | 159 | |
Pre-opening Costs and Relocation Expenses [Member] | |||
Operating lease cost | 122 | 122 | |
Interest Expense [Member] | |||
Interest on lease liabilities | [2] | $ 385 | $ 803 |
[1] | Immaterial balances related to corporate headquarters and distribution center are included in administrative expenses and store expenses, respectively. | ||
[2] | Immaterial balances related to stores not yet open are included in pre-opening and relocation expenses. |
Note 7 - Lease Obligations - Ad
Note 7 - Lease Obligations - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Mar. 31, 2020USD ($) | Mar. 31, 2020USD ($) | |
Operating cash flows from operating leases | $ 11,003 | $ 22,004 |
Operating cash flows from finance leases | 431 | 849 |
Financing cash flows from finance leases | 564 | 1,082 |
Operating leases | 1,792 | 7,230 |
Finance leases | $ 3,910 | $ 5,232 |
Operating leases (Year) | 12 years | 12 years |
Finance leases (Year) | 12 years | 12 years |
Operating leases | 3.60% | 3.60% |
Finance leases | 4.90% | 4.90% |
Note 7 - Lease Obligations - Fu
Note 7 - Lease Obligations - Future Lease Payments (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Sep. 30, 2019 |
Remainder of 2020, operating leases | $ 22,276 | |
Remainder of 2020, finance leases | 2,132 | |
Remainder of 2020 | 24,408 | |
2021, operating leases | 44,151 | |
2021, finance leases | 4,367 | |
2021 | 48,518 | |
2022, operating leases | 43,444 | |
2022, finance leases | 4,389 | |
2022 | 47,833 | |
2023, operating leases | 42,561 | |
2023, finance leases | 4,433 | |
2023 | 46,994 | |
2024, operating leases | 40,458 | |
2024, finance leases | 4,499 | |
2024 | 44,957 | |
Thereafter, operating leases | 265,950 | |
Thereafter, finance leases | 30,579 | |
Thereafter | 296,529 | |
Total future undiscounted lease payments, operating leases | 458,840 | |
Total future undiscounted lease payments, finance leases | 50,399 | |
Total future undiscounted lease payments | 509,239 | |
Less tenant improvement allowance receivable from landlord, operating leases | (401) | |
Less tenant improvement allowance receivable from landlord, finance leases | (218) | |
Less tenant improvement allowance receivable from landlord | (619) | |
Less imputed interest, operating leases | (90,671) | |
Less imputed interest, finance leases | (13,383) | |
Less imputed interest | (104,054) | |
Total reported lease liability, operating leases | 367,768 | |
Total reported lease liability, finance leases | 36,798 | |
Total reported lease liability | 404,566 | |
Less current portion, operating leases | (31,765) | |
Less current portion, finance leases | (2,550) | |
Less current portion | (34,315) | |
Noncurrent lease liability, operating leases | 336,003 | |
Noncurrent lease liability, finance leases | 34,248 | |
Noncurrent lease liability | $ 370,251 |
Note 7 - Lease Obligations - _2
Note 7 - Lease Obligations - Future Minimum Annual Payments Under Operating Leases (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Sublease rental income, 2020 | $ (422) |
Total operating leases, 2020 | 42,305 |
Sublease rental income, 2021 | (418) |
Total operating leases, 2021 | 42,124 |
Sublease rental income, 2022 | (424) |
Total operating leases, 2022 | 41,713 |
Sublease rental income, 2023 | (413) |
Total operating leases, 2023 | 40,818 |
Sublease rental income, 2024 | (257) |
Total operating leases, 2024 | 38,811 |
Sublease rental income, thereafter | (772) |
Total operating leases, thereafter | 263,376 |
Sublease rental income, total payments | (2,706) |
Total operating leases, total payments | 469,147 |
Related Parties [Member] | |
2020 | 1,081 |
2021 | 1,058 |
2022 | 1,056 |
2023 | 1,056 |
2024 | 1,056 |
Thereafter | 2,062 |
Total payments | 7,369 |
Third Parties [Member] | |
2020 | 41,646 |
2021 | 41,484 |
2022 | 41,081 |
2023 | 40,175 |
2024 | 38,012 |
Thereafter | 262,086 |
Total payments | $ 464,484 |
Note 7 - Lease Obligations - Sc
Note 7 - Lease Obligations - Schedule of Future Payments Under the Terms of the Leases (Details) (Assets Held Under Real Estate Leases for Build to Suit Stores (Details) - Asset Held under Real Estate Leases for Build-to-suit Stores, Capital Lease Finance Obligations [Member] $ in Thousands | Sep. 30, 2019USD ($) |
2020, Interest expense on capital lease finance obligations | $ 3,871 |
2020, Principle payments on capital lease finance obligations | 569 |
2020, Interest expense on capital lease obligations | 605 |
2020, Principal payments on capital lease obligations | 333 |
2020, Future payments on capital lease finance and capital lease obligations | 5,378 |
2021, Interest expense on capital lease finance obligations | 3,816 |
2021, Principle payments on capital lease finance obligations | 656 |
2021, Interest expense on capital lease obligations | 570 |
2021, Principal payments on capital lease obligations | 368 |
2021, Future payments on capital lease finance and capital lease obligations | 5,410 |
2022, Interest expense on capital lease finance obligations | 3,751 |
2022, Principle payments on capital lease finance obligations | 747 |
2022, Interest expense on capital lease obligations | 532 |
2022, Principal payments on capital lease obligations | 407 |
2022, Future payments on capital lease finance and capital lease obligations | 5,437 |
2023, Interest expense on capital lease finance obligations | 3,675 |
2023, Principle payments on capital lease finance obligations | 880 |
2023, Interest expense on capital lease obligations | 488 |
2023, Principal payments on capital lease obligations | 460 |
2023, Future payments on capital lease finance and capital lease obligations | 5,503 |
2024, Interest expense on capital lease finance obligations | 3,578 |
2024, Principle payments on capital lease finance obligations | 1,095 |
2024, Interest expense on capital lease obligations | 439 |
2024, Principal payments on capital lease obligations | 515 |
2024, Future payments on capital lease finance and capital lease obligations | 5,627 |
Thereafter, Interest expense on capital lease finance obligations | 15,088 |
Thereafter, Principle payments on capital lease finance obligations | 8,244 |
Thereafter, Interest expense on capital lease obligations | 2,142 |
Thereafter, Principal payments on capital lease obligations | 3,889 |
Thereafter, Future payments on capital lease finance and capital lease obligations | 29,363 |
Non-cash derecognition of capital lease finance obligations at end of lease term | 27,367 |
Non-cash derecognition of capital lease finance obligations at end of lease term | 27,367 |
Total future payments, interest expense on capital lease finance obligations | 33,779 |
Total future payments, principle payments on capital lease finance obligations | 39,558 |
Total future payments, interest expense on capital lease obligations | 4,776 |
Total future payments, principal payments on capital lease obligations | 5,972 |
Total future payments, future payments on capital lease finance and capital lease obligations | $ 84,085 |
Note 7 - Lease Obligations - _3
Note 7 - Lease Obligations - Future Minimum Lease Payments for Stores Under Construction (Details) - Asset under Construction, Capital Lease Finance Obligations [Member] $ in Thousands | Sep. 30, 2019USD ($) |
2020, Interest expense on capital lease finance obligations | $ 118 |
2020, Principle payments on capital lease finance obligations | 18 |
2020, Interest expense on capital lease obligations for assets under construction | 237 |
2020, Total future payments on capital lease obligations for assets under construction | 123 |
2021, Interest expense on capital lease finance obligations | 161 |
2021, Principle payments on capital lease finance obligations | 26 |
2021, Interest expense on capital lease obligations for assets under construction | 236 |
2021, Total future payments on capital lease obligations for assets under construction | 132 |
2022, Interest expense on capital lease finance obligations | 160 |
2022, Principle payments on capital lease finance obligations | 28 |
2022, Interest expense on capital lease obligations for assets under construction | 228 |
2022, Total future payments on capital lease obligations for assets under construction | 139 |
2023, Interest expense on capital lease finance obligations | 158 |
2023, Principle payments on capital lease finance obligations | 30 |
2023, Interest expense on capital lease obligations for assets under construction | 221 |
2023, Total future payments on capital lease obligations for assets under construction | 147 |
2024, Interest expense on capital lease finance obligations | 155 |
2024, Principle payments on capital lease finance obligations | 33 |
2024, Interest expense on capital lease obligations for assets under construction | 213 |
2024, Total future payments on capital lease obligations for assets under construction | 155 |
Thereafter, Interest expense on capital lease finance obligations | 1,368 |
Thereafter, Principle payments on capital lease finance obligations | 756 |
Thereafter, Interest expense on capital lease obligations for assets under construction | 1,827 |
Thereafter, Total future payments on capital lease obligations for assets under construction | 3,944 |
Non-cash derecognition of capital lease finance obligations at end of lease term | 1,459 |
Total future payments, interest expense on capital lease finance obligations | 2,120 |
Total future payments, principle payments on capital lease finance obligations | 2,350 |
Total future payments of capital lease obligations for assets under construction, Interest expense on capital lease obligations for assets under construction | 2,962 |
Total future payments of capital lease obligations for assets under construction | $ 4,640 |
Note 8 - Property and Equipme_3
Note 8 - Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Sep. 30, 2019 | |
Property, plant, and equipment, gross | $ 348,710 | $ 388,486 |
Less accumulated depreciation and amortization | (193,971) | (186,851) |
Property and equipment, net | 154,739 | 201,635 |
Construction in Progress [Member] | ||
Property, plant, and equipment, gross | 6,158 | 15,145 |
Assets Held Under Real Estate Leases for Build to Suit Stores [Member] | ||
Property, plant, and equipment, gross | 42,320 | |
Useful life (Year) | 40 years | |
Assets Held under Capital Leases [Member] | ||
Property, plant, and equipment, gross | 7,241 | |
Useful life (Year) | 15 years | |
Land [Member] | ||
Property, plant, and equipment, gross | $ 1,390 | 1,230 |
Building [Member] | ||
Property, plant, and equipment, gross | $ 26,735 | 23,571 |
Useful life (Year) | 40 years | |
Land Improvements [Member] | ||
Property, plant, and equipment, gross | $ 1,572 | 1,498 |
Land Improvements [Member] | Minimum [Member] | ||
Useful life (Year) | 5 years | |
Land Improvements [Member] | Maximum [Member] | ||
Useful life (Year) | 24 years | |
Leasehold and Building Improvements [Member] | ||
Property, plant, and equipment, gross | $ 152,977 | 144,318 |
Leasehold and Building Improvements [Member] | Minimum [Member] | ||
Useful life (Year) | 1 year | |
Leasehold and Building Improvements [Member] | Maximum [Member] | ||
Useful life (Year) | 25 years | |
Furniture and Fixtures [Member] | ||
Property, plant, and equipment, gross | $ 136,897 | 131,491 |
Furniture and Fixtures [Member] | Minimum [Member] | ||
Useful life (Year) | 5 years | |
Furniture and Fixtures [Member] | Maximum [Member] | ||
Useful life (Year) | 7 years | |
Computer Hardware and Software [Member] | ||
Property, plant, and equipment, gross | $ 22,981 | $ 21,672 |
Computer Hardware and Software [Member] | Minimum [Member] | ||
Useful life (Year) | 3 years | |
Computer Hardware and Software [Member] | Maximum [Member] | ||
Useful life (Year) | 5 years |
Note 8 - Property and Equipme_4
Note 8 - Property and Equipment - Schedule of Property and Equipment (Details) (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2020 | Sep. 30, 2019 |
Property, plant, and equipment, gross | $ 348,710 | $ 388,486 |
Unamortized Land [Member] | ||
Property, plant, and equipment, gross | $ 0 | $ 617 |
Note 8 - Property and Equipme_5
Note 8 - Property and Equipment - Depreciation and Amortization Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Depreciation and amortization expense | $ 7,888 | $ 7,290 | $ 15,595 | $ 14,576 |
Cost of Sales [Member] | ||||
Depreciation and amortization expense | 194 | 185 | 383 | 367 |
Stores [Member] | ||||
Depreciation and amortization expense | 7,393 | 6,848 | 14,633 | 13,690 |
General and Administrative Expense [Member] | ||||
Depreciation and amortization expense | $ 301 | $ 257 | $ 579 | $ 519 |
Note 9 - Goodwill and Other I_3
Note 9 - Goodwill and Other Intangible Assets - Summary of Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Sep. 30, 2019 | |
Amortizable intangible assets | $ 3,496 | $ 2,677 |
Less accumulated amortization | (1,974) | (1,592) |
Amortizable intangible assets, net | 1,522 | 1,085 |
Other intangibles in process | 2,552 | 1,972 |
Trademark | 389 | 389 |
Total other intangibles, net | 4,463 | 3,446 |
Goodwill | 5,198 | 5,198 |
Total goodwill and other intangibles, net | 9,661 | 8,644 |
Other Intangible Assets [Member] | ||
Amortizable intangible assets | $ 3,496 | $ 2,677 |
Other Intangible Assets [Member] | Minimum [Member] | ||
Intangible assets useful life (Year) | 182 days | |
Other Intangible Assets [Member] | Maximum [Member] | ||
Intangible assets useful life (Year) | 3 years |
Note 10 - Accrued Expenses - Co
Note 10 - Accrued Expenses - Composition of Accrued Expenses (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Sep. 30, 2019 |
Payroll and employee-related expenses | $ 11,193 | $ 8,447 |
Accrued property, sales and use tax payable | 7,738 | 7,761 |
Accrued marketing expenses | 994 | 477 |
Deferred revenue related to gift card sales | 1,599 | 1,410 |
Other | 1,139 | 966 |
Total accrued expenses | $ 22,663 | $ 19,061 |
Note 11 - Income Taxes (Details
Note 11 - Income Taxes (Details Textual) $ in Millions | Mar. 31, 2020USD ($) |
Deferred Income Tax Liabilities, Net [Member] | |
Accelerated Tax Depreciation Expenses | $ 4 |
Note 12 - Related Party Trans_2
Note 12 - Related Party Transactions (Details Textual) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | |
Chalet [Member] | ||||
Number of Operating Leases | 5 | 5 | ||
Related Party Transaction Number of Owners That Are Non-Independent Board Members of the Entity | 4 | |||
Related Party Transaction, Expenses from Transactions with Related Party | $ 0.2 | $ 0.3 | $ 0.5 | $ 0.6 |
Isely Family Land Trust LLC [Member] | ||||
Number of Operating Leases | 1 | 1 | ||
Related Party Transaction, Expenses from Transactions with Related Party | $ 0.1 | 0.1 | $ 0.2 | 0.2 |
FTVC, LLC [Member] | ||||
Number of Operating Leases | 1 | 1 | ||
Related Party Transaction Number of Owners That Are Non-Independent Board Members of the Entity | 4 | |||
FTVC, LLC [Member] | Maximum [Member] | ||||
Related Party Transaction, Expenses from Transactions with Related Party | $ 0.1 | $ 0.1 | $ 0.1 | $ 0.1 |
Note 14 - Subsequent Event (Det
Note 14 - Subsequent Event (Details Textual) - $ / shares | May 06, 2020 | Mar. 31, 2020 |
Dividends, Total (in dollars per share) | $ 0.07 | |
Subsequent Event [Member] | ||
Dividends, Total (in dollars per share) | $ 0.07 |