Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Dec. 04, 2023 | Mar. 31, 2023 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Sep. 30, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 001-35608 | ||
Entity Registrant Name | Natural Grocers by Vitamin Cottage, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 45-5034161 | ||
Entity Address, Address Line One | 12612 West Alameda Parkway | ||
Entity Address, City or Town | Lakewood | ||
Entity Address, State or Province | CO | ||
Entity Address, Postal Zip Code | 80228 | ||
City Area Code | 303 | ||
Local Phone Number | 986-4600 | ||
Title of 12(b) Security | Common Stock, $0.001 par value | ||
Trading Symbol | NGVC | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | true | ||
Document Financial Statement Restatement Recovery Analysis [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 108,522,084 | ||
Entity Common Stock, Shares Outstanding (in shares) | 22,752,413 | ||
Auditor Name | KPMG LLP | ||
Auditor Location | Denver, CO | ||
Auditor Firm ID | 185 | ||
Entity Central Index Key | 0001547459 | ||
Current Fiscal Year End Date | --09-30 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 18,342 | $ 12,039 |
Accounts receivable, net | 10,797 | 10,496 |
Merchandise inventory | 119,260 | 113,756 |
Prepaid expenses and other current assets | 4,151 | 4,369 |
Total current assets | 152,550 | 140,660 |
Property and equipment, net | 169,060 | 157,179 |
Other assets: | ||
Operating lease assets, net | 287,941 | 307,132 |
Finance lease assets, net | 45,110 | 43,554 |
Deposits and other assets | 395 | 452 |
Goodwill and other intangible assets, net | 14,129 | 14,131 |
Total other assets | 347,575 | 365,269 |
Total assets | 669,185 | 663,108 |
Current liabilities: | ||
Accounts payable | 80,675 | 71,283 |
Accrued expenses | 33,064 | 26,737 |
Term loan facility, current portion | 1,750 | 1,750 |
Operating lease obligations, current portion | 34,850 | 34,735 |
Finance lease obligations, current portion | 3,690 | 3,223 |
Total current liabilities | 154,029 | 137,728 |
Long-term liabilities: | ||
Term loan facility, net of current portion | 5,938 | 13,938 |
Operating lease obligations, net of current portion | 276,808 | 295,064 |
Finance lease obligations, net of current portion | 47,142 | 44,664 |
Deferred income tax liabilities, net | 14,427 | 15,902 |
Total long-term liabilities | 344,315 | 369,568 |
Total liabilities | 498,344 | 507,296 |
Stockholders’ equity: | ||
Common stock, $0.001 par value. 50,000,000 shares authorized, 22,745,412 and 22,690,188 shares issued at September 30, 2023 and 2022, and 22,738,915 and 22,690,188 shares outstanding at September 30, 2023 and 2022, respectively | 23 | 23 |
Additional paid-in capital | 59,013 | 58,072 |
Retained earnings | 111,871 | 97,717 |
Common stock in treasury at cost, 6,497 shares at September 30, 2023 | (66) | 0 |
Total stockholders’ equity | 170,841 | 155,812 |
Total liabilities and stockholders’ equity | $ 669,185 | $ 663,108 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Sep. 30, 2023 | Sep. 30, 2022 |
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) | 22,745,412 | 22,690,188 |
Common Stock, Shares, Outstanding (in shares) | 22,738,915 | 22,690,188 |
Treasury Stock, Common, Shares (in shares) | 6,497 | 0 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Net sales | $ 1,140,568 | $ 1,089,625 | $ 1,055,516 |
Cost of goods sold and occupancy costs | 813,637 | 784,744 | 763,328 |
Gross profit | 326,931 | 304,881 | 292,188 |
Store expenses | 257,282 | 242,057 | 234,586 |
Administrative expenses | 35,973 | 31,562 | 28,355 |
Pre-opening expenses | 2,007 | 1,107 | 920 |
Operating income | 31,669 | 30,155 | 28,327 |
Interest expense, net | (3,299) | (2,371) | (2,271) |
Income before income taxes | 28,370 | 27,784 | 26,056 |
Provision for income taxes | (5,127) | (6,419) | (5,475) |
Net income | $ 23,243 | $ 21,365 | $ 20,581 |
Net income per share of common stock: | |||
Basic (in dollars per share) | $ 1.02 | $ 0.94 | $ 0.91 |
Diluted (in dollars per share) | $ 1.02 | $ 0.94 | $ 0.91 |
Weighted average number of shares of common stock outstanding: | |||
Basic (in shares) | 22,725,088 | 22,666,773 | 22,591,816 |
Diluted (in shares) | 22,834,316 | 22,816,614 | 22,711,003 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Operating activities: | |||
Net income | $ 23,243 | $ 21,365 | $ 20,581 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 28,906 | 27,906 | 29,633 |
Impairment of long-lived assets and store closing costs | 1,268 | 2,920 | 1,155 |
Loss on disposal of property and equipment | 379 | 78 | 209 |
Share-based compensation | 1,360 | 1,186 | 877 |
Deferred income tax (benefit) expense | (1,475) | 609 | 864 |
Non-cash interest expense | 19 | 22 | 24 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | 315 | (2,973) | 30 |
Income tax receivable | 378 | (631) | 3,004 |
Merchandise inventory | (5,504) | (13,210) | (371) |
Prepaid expenses and other assets | (128) | (1,025) | (141) |
Operating lease assets | 33,067 | 31,895 | 31,090 |
Operating lease liabilities | (33,899) | (29,044) | (32,030) |
Accounts payable | 10,350 | 447 | (2,639) |
Accrued expenses | 6,327 | 148 | 1,594 |
Net cash provided by operating activities | 64,606 | 39,693 | 53,880 |
Investing activities: | |||
Acquisition of property and equipment | (36,568) | (28,038) | (26,350) |
Acquisition of other intangibles | (1,525) | (3,406) | (1,937) |
Proceeds from sale of property and equipment | 107 | 21 | 89 |
Proceeds from property insurance settlements | 36 | 280 | 443 |
Net cash used in investing activities | (37,950) | (31,143) | (27,755) |
Financing activities: | |||
Borrowings under revolving facility | 531,100 | 129,000 | 65,900 |
Repayments under revolving facility | (531,100) | (129,000) | (65,900) |
Borrowings under term loan facility | 0 | 0 | 35,000 |
Repayments under term loan facility | (8,000) | (8,000) | (11,313) |
Finance lease obligation payments | (2,779) | (2,719) | (2,823) |
Dividends to shareholders | (9,089) | (9,067) | (51,453) |
Repurchase of common stock | (181) | 0 | 0 |
Loan fees paid | 0 | 0 | (52) |
Payments on withholding tax for restricted stock unit vesting | (304) | (403) | (340) |
Net cash used in financing activities | (20,353) | (20,189) | (30,981) |
Net increase (decrease) in cash and cash equivalents | 6,303 | (11,639) | (4,856) |
Cash and cash equivalents, beginning of period | 12,039 | 23,678 | 28,534 |
Cash and cash equivalents, end of period | 18,342 | 12,039 | 23,678 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 1,305 | 627 | 370 |
Cash paid for interest on financing lease obligations, net of capitalized interest of $318, $313 and $194, respectively | 2,002 | 1,801 | 1,782 |
Income taxes paid | 5,048 | 7,012 | 6,747 |
Supplemental disclosures of non-cash investing and financing activities: | |||
Acquisition of property and equipment not yet paid | 6,016 | 6,965 | 4,770 |
Acquisition of other intangibles not yet paid | 3 | 12 | 319 |
Property acquired through operating lease obligations | 15,274 | 24,429 | 9,216 |
Property acquired through finance lease obligations | $ 5,724 | $ 9,625 | $ 3,025 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Capitalized interest | $ 318 | $ 313 | $ 194 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Common Stock Outstanding [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock, Common [Member] | Total |
Balances (in shares) at Sep. 30, 2020 | 22,546,765 | ||||
Balances at Sep. 30, 2020 | $ 23 | $ 56,752 | $ 116,291 | $ 0 | $ 173,066 |
Net income | 0 | 0 | 20,581 | 0 | 20,581 |
Share-based compensation | $ 0 | 537 | 0 | 0 | 537 |
Issuance of common stock (in shares) | 73,652 | ||||
Cash dividend | $ 0 | 0 | (51,453) | 0 | $ (51,453) |
Repurchase of common stock (in shares) | 0 | ||||
Balances December 31, 2022 (in shares) at Sep. 30, 2021 | 22,620,417 | ||||
Balances December 31, 2022 at Sep. 30, 2021 | $ 23 | 57,289 | 85,419 | 0 | $ 142,731 |
Net income | 0 | 0 | 21,365 | 0 | 21,365 |
Share-based compensation | $ 0 | 783 | 0 | 0 | 783 |
Issuance of common stock (in shares) | 69,771 | ||||
Cash dividend | $ 0 | 0 | (9,067) | 0 | (9,067) |
Share-based compensation (in shares) | 0 | ||||
Issuance of common stock | $ 0 | 0 | 0 | 0 | $ 0 |
Repurchase of common stock (in shares) | 0 | ||||
Balances December 31, 2022 (in shares) at Sep. 30, 2022 | 22,690,188,000 | ||||
Balances December 31, 2022 at Sep. 30, 2022 | $ 23 | 58,072 | 97,717 | 0 | $ 155,812 |
Net income | 0 | 0 | 23,243 | 0 | 23,243 |
Share-based compensation | $ 0 | 941 | 0 | 115 | 1,056 |
Issuance of common stock (in shares) | 66,725 | ||||
Cash dividend | $ 0 | 0 | (9,089) | 0 | (9,089) |
Issuance of common stock | $ 0 | 0 | 0 | 0 | $ 0 |
Repurchase of common stock (in shares) | (17,998) | (17,998) | |||
Repurchase of common stock | $ 0 | 0 | 0 | (181) | $ (181) |
Balances December 31, 2022 (in shares) at Sep. 30, 2023 | 22,738,915 | ||||
Balances December 31, 2022 at Sep. 30, 2023 | $ 23 | $ 59,013 | $ 111,871 | $ (66) | $ 170,841 |
Note 1 - Organization
Note 1 - Organization | 12 Months Ended |
Sep. 30, 2023 | |
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, dietary supplements and body care products. The Company operated 165 retail stores as of September 30, 2023, including 44 stores in Colorado, 23 in Texas, 14 in Oregon, 12 in Arizona, eight seven six five four three two one |
Note 2 - Basis of Presentation
Note 2 - Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Basis of Presentation and Significant Accounting Policies [Text Block] | 2. Basis of Presentation and Summary of Significant Accounting Policies Principles of Consolidation The accompanying 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). All significant intercompany balances and transactions have been eliminated in consolidation. 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, 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 valuation of inventories, useful lives of long-lived assets for depreciation and amortization, impairment of finite-lived intangible assets, long-lived assets, and goodwill, lease assumptions, allowances for self-insurance reserves, deferred tax assets and liabilities, and litigation based on currently available information. Changes in facts and circumstances may result in revised estimates and actual results could differ from those estimates. Segment Information The Company has one Other Comprehensive Income The Company has no other comprehensive income. Cash and Cash Equivalents Cash and cash equivalents include currency on hand, demand deposits with banks, money market funds, and credit and debit card transactions that typically settle within three business days. The Company considers all highly liquid investments with a remaining maturity of 90 days or less when acquired to be cash equivalents. Accounts Receivable Accounts receivable consists primarily of receivables from vendors for certain promotional programs, magazine advertising and other miscellaneous receivables and are presented net of any allowances for doubtful accounts. Accounts receivable also includes receivables from Landlords for tenant improvement allowances. Vendor receivable balances are generally presented on a gross basis separate from any related payable due. Allowance for doubtful accounts is calculated based on historical experience and application of the specific identification method. Allowance for doubtful accounts totaled $0.2 million and $0.1 million as of September 30, 2023 and 2022, respectively. Concentration of Credit Risk Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of investments in cash and cash equivalents. The Company’s cash and cash equivalent account balances, which are held in major financial institutions, exceeded the Federal Deposit Insurance Corporation’s federally insured limits by approximately $17.2 million as of September 30, 2023. Vendor Concentration For each of the years ended September 30, 2023 and 2022, purchases from the Company’s largest vendor and its subsidiaries represented approximately 68% of all product purchases made during such periods. However, the Company believes that, if necessary, alternate vendors could supply similar products in adequate quantities to avoid material disruptions to operations. Merchandise Inventory Merchandise inventory consists of goods held for sale. The cost of inventory includes certain costs associated with the preparation of inventory for sale, including inventory overhead costs. Merchandise inventory is carried at the lower of cost or net realizable value. Cost is determined using the weighted average cost method. Long-Lived Assets Depreciable long-lived assets primarily consist of leasehold and building improvements, which are stated at historical cost less accumulated depreciation. Depreciation is provided using the straight-line method over the useful life of the relevant asset. For land improvements and leasehold and building improvements, depreciation is recorded over the shorter of the assets’ useful lives or the lease terms. Maintenance, repairs and renewals that neither add to the value of the property nor appreciably prolong its life are charged to expense as incurred. Gains and losses on disposition of property and equipment are included in store expenses in the year of disposition, and primarily relate to store relocations and closures. The Company capitalizes interest, if applicable, as part of the historical costs of buildings and leasehold and building improvements. Impairment of Finite-Lived Intangible and Long-Lived Assets We assess our long-lived assets, principally property and equipment, lease assets, and intangible assets subject to amortization, for possible impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. These events or changes primarily include a significant change in current period performance combined with a history of losses and a projection of continuing losses, or a decision to close or relocate a store. If the carrying value of such assets over their respective remaining lives is not recoverable through projected undiscounted future cash flows, impairment is recognized for any excess of the carrying value over the estimated fair value of the asset group. The fair value of the asset group is estimated based on either: (i) discounted future cash flows using a market participant’s discount rate; or (ii) an appropriate third-party market appraisal or other valuation technique. The Company considers factors such as historic and forecasted operating results, trends and future prospects, current market value, significant industry trends and other economic and regulatory factors in performing these analyses. As of September 30, 2023 and 2022, the Company had property and equipment assets of $169.1 million and $157.2 million, respectively, operating lease assets of $287.9 million and $307.1 million, respectively, finance lease assets of $45.1 million and $43.6 million, respectively, and intangible assets subject to amortization of $8.5 million. The Company recorded impairment charges related to long-lived assets of $1.3 million, $2.9 million and $1.1 million in fiscal years 2023, 2022 and 2021, respectively. Goodwill and Other Intangible Assets Intangible assets primarily consist of goodwill, internal-use software, and trademarks. Goodwill and the Company’s trademarks have indefinite lives and are not amortized; rather, they are tested for impairment at least annually on July 1. The Company capitalizes certain costs incurred with developing or obtaining internal-use software. Software costs that do not meet capitalization criteria are expensed as incurred. Intangible assets with definite lives are amortized over their estimated useful lives. The Company evaluates the reasonableness of the useful lives of these intangibles at least annually. The Company’s annual impairment testing of goodwill is performed as of July 1. In performing the Company’s analysis of goodwill, the Company first evaluates qualitative factors, including relevant events and circumstances, to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. An impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value should be recognized; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. As of September 30, 2023, the Company has recorded no impairment charges related to goodwill. Deferred Financing Costs Certain costs incurred with borrowings or establishment of credit facilities are deferred. These costs are amortized over the life of the credit facility using the straight-line method. Leases The Company leases retail stores, a bulk food repackaging facility and distribution center, and administrative offices under long-term operating or finance leases. These leases include scheduled increases in minimum rents and renewal provisions at the option of the Company. The lease term for accounting purposes commences with the date the Company takes possession of the space and ends on the later of the primary lease term or the expiration of any renewal periods that are deemed to be reasonably assured at the inception of the lease. The Company recognizes a lease asset and corresponding lease liability for all leases with terms greater than 12 months, with the recognition, measurement, and presentation of lease expenses dependent on whether the lease is classified as an operating or finance lease. Operating Leases Operating lease liabilities represent the present value of lease payments not yet paid. Operating lease assets represent the Company’s right to use an underlying asset and are based upon the operating lease liabilities adjusted for prepayments or accrued lease payments, initial direct costs, lease incentives and impairment of operating lease assets. The rent payment pursuant to the lease agreement is recorded as a reduction of the operating lease liability and lease asset and as single lease expense over the remaining term of the applicable lease. Finance Leases Finance lease liabilities represent the present value of lease payments not yet paid. Finance lease assets represent the Company’s right to use an underlying asset and are based upon the lease liabilities adjusted for prepayments or accrued lease payments, initial direct costs, lease incentives and impairment of finance lease assets. The Company does not record single lease expense for the rental payments under finance leases, but rather payments under the finance lease obligations are recognized as a reduction of the finance lease obligation and as interest expense over the remaining term of the lease. The lease asset is depreciated on a straight-line basis over the remaining term of the applicable lease. Self-Insurance The Company is self-insured for certain losses relating to employee medical and dental benefits and workers compensation. Stop-loss coverage has been purchased to limit exposure to any significant level of claims. Self-insured losses are accrued based upon the Company’s estimates of the aggregate claims incurred but not reported using historical experience. The estimated accruals for these liabilities could be significantly affected if future occurrences and claims differ from historical trends. Revenue Recognition Revenue is recognized at the point of sale, net of in-house coupons, discounts and returns. Sales taxes are not included in sales. The Company charges sales tax on all taxable customer purchases and remits these taxes monthly to the appropriate taxing jurisdiction. The Company records a contract liability within accrued expenses when it sells the Company’s gift cards and records a sale when a customer redeems the gift card. Cost of Goods Sold and Occupancy Costs Cost of goods sold and occupancy costs includes the cost of inventory sold during the period net of discounts and allowances, as well as, distribution, shipping and handling costs, store occupancy costs and costs of the bulk food repackaging facility and distribution center. The amount shown is net of various rebates from third-party vendors in the form of quantity discounts and payments. Vendor consideration associated with product discounts is recorded as a reduction in the cost of the product. Store occupancy costs include rent, common area maintenance and real estate taxes. Store occupancy costs do not include any rent amounts for the store leases classified as finance leases. Store Expenses Store expenses consist of store-level expenses such as salaries, benefits and share-based compensation, supplies, utilities, depreciation, gain or loss on disposal of assets, long-lived asset impairment charges, store closing costs and other related expenses associated with operations support. Store expenses also include purchasing support services and advertising and marketing costs. Administrative Expenses Administrative expenses consist of salaries, benefits and share-based compensation, occupancy costs, depreciation, office supplies, hardware and software expenses, professional services expenses and other general and administrative expenses. Pre-Opening Expenses Costs associated with the opening of new stores or relocating/remodeling existing stores are expensed as incurred. Advertising and Marketing Advertising and marketing costs are expensed as incurred and are included in store expenses and pre-opening expenses in the consolidated statements of income. Total advertising and marketing expenses for the years ended September 30, 2023, 2022 and 2021 were $6.9 million, $6.2 million and $6.3 million, respectively, net of vendor reimbursements of $7.1 million, $6.3 million and $5.4 million for the years ended September 30, 2023, 2022 and 2021, respectively. Share-Based Compensation The Company adopted the 2012 Omnibus Incentive Plan in connection with its initial public offering on July 25, 2012. Restricted stock units are granted at the market price of the Company’s common stock on the date of grant and expensed over the applicable vesting period. The excess tax benefits for recognized compensation costs are reported as a credit to income tax expense and as operating cash outflows when such excess tax benefits are realized by a reduction to current taxes payable. Income Taxes The Company accounts for income taxes using the asset and liability method. This method requires recognition of deferred tax assets and liabilities for expected future tax consequences of temporary differences that currently exist between the tax basis and financial reporting basis of the Company’s assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates in the respective jurisdictions in which the Company operates. The Company considers the need to establish valuation allowances to reduce deferred income tax assets to the amounts the Company believes are more likely than not to be recovered. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. Although the Company believes that its estimates are reasonable, actual results could differ from these estimates. In addition, the Company is subject to periodic audits and examinations by the Internal Revenue Service (IRS) and other state and local taxing authorities. Any interest or penalties incurred related to income taxes are expensed as incurred and treated as permanent differences for tax purposes. Recently Adopted Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform,” Topic 848, “Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (ASU 2020-04), which was subsequently amended by a standard update in December 2022. The new guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The guidance applies only to contracts, hedging relationships and other transactions that reference the London Interbank Offered Rate (LIBOR) or another reference rate expected to be discontinued because of reference rate reform. As amended, the guidance only applies to modifications made prior to December 31, 2024. On December 15, 2022, the Company amended the Credit Facility (as defined in Note 10 below) to, among other things, replace the LIBOR-based interest rate benchmark provisions with interest rate benchmark provisions based on the Secured Overnight Financing Rate (SOFR). The Company elected to apply ASU 2020-04’s amendments for contract modifications during the first quarter of the fiscal year ending September 30, 2023. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements for the year ended September 30, 2023. In December 2019, the FASB issued ASU 2019-12, “Income Taxes,” Topic 740, “Simplifying the Accounting for Income Taxes” (ASU 2019-12). The new guidance simplified the accounting for income taxes by removing certain exceptions to the general principles and also simplified areas such as franchise taxes, step-up in tax basis goodwill, separate entity financial statements, and interim recognition of enactment of tax laws or rate changes. The provisions of ASU 2019-12 were effective for the Company’s first quarter of the fiscal year ended September 30, 2022. The adoption of this ASU did not have an impact on the Company’s consolidated financial statements for the year ended September 30, 2022. Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses,” Topic 326, “Measurement of Credit Losses on Financial Instruments” (ASU 2016-13), subsequently amended by various standard updates. ASU 2016-13 replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information when determining credit loss estimates. ASU 2016-13 also requires financial assets to be measured net of expected credit losses at the time of initial recognition. ASU 2019-10, issued in November 2019, delayed the effective date of ASU 2016-13 for smaller reporting companies such as the Company. The provisions of ASU 2016-13 will be effective for the Company’s first quarter of the fiscal year ending September 30, 2024. The Company is evaluating the impact that the adoption of these provisions will have on its consolidated financial statements but does not anticipate that these provisions will have material impacts on its consolidated financial statements. No other new accounting pronouncements issued or effective during fiscal year 2023 had, or are expected to have, a material impact on the Company’s consolidated financial statements. |
Note 3 - Revenue Recognition
Note 3 - Revenue Recognition | 12 Months Ended |
Sep. 30, 2023 | |
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 the Company’s 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. As of September 30, 2023 and 2022, the balance of contract liabilities related to unredeemed gift cards was $1.5 million and $1.3 million, respectively. Revenue for the fiscal year ended September 30, 2023 includes $0.6 million that was included in the contract liability balance of unredeemed gift cards at September 30, 2022. Rewards program points are accrued as deferred revenue at the retail value per point, net of estimated breakage based on historical redemption rates experienced within the rewards program. Rewards points are forfeited at the end of each calendar year. The following table disaggregates the Company’s revenue by product category for the fiscal years ended September 30, 2023, 2022 and 2021, dollars in thousands and as a percentage of net sales: Year ended September 30, 2023 2022 2021 Grocery $ 796,241 70 % 759,328 70 731,894 69 Dietary supplements 235,714 21 227,220 21 220,000 21 Body care, pet care and other 108,613 9 103,077 9 103,622 10 $ 1,140,568 100 % 1,089,625 100 1,055,516 100 |
Note 4 - Earnings Per Share
Note 4 - Earnings Per Share | 12 Months Ended |
Sep. 30, 2023 | |
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 is computed using the treasury stock method and reflects the potential dilution that could occur if the Company’s granted but unvested restricted stock units were to vest, resulting in the issuance of common stock that would then share in the earnings of the Company. The following table presents the Company’s basic and diluted EPS for the years ended September 30, 2023, 2022 and 2021, dollars in thousands, except per share data: Year ended September 30, 2023 2022 2021 Net income $ 23,243 21,365 20,581 Weighted average number of shares of common stock outstanding 22,725,088 22,666,773 22,591,816 Effect of dilutive securities 109,228 149,841 119,187 Weighted average number of shares of common stock outstanding including the effect of dilutive securities 22,834,316 22,816,614 22,711,003 Basic earnings per share $ 1.02 0.94 0.91 Diluted earnings per share $ 1.02 0.94 0.91 There were 62,752, 43,542 and 166,362 non-vested restricted stock units for the years ended September 30, 2023, 2022 and 2021, respectively, excluded from the calculation as they are antidilutive. As of September 30, 2023, the Company had 50,000,000 shares of common stock authorized, of which 22,745,412 shares were issued and 22,738,915 shares were outstanding, as well as 6,497 shares of treasury common stock that was not outstanding, and 10,000,000 shares of preferred common stock authorized, of which none |
Note 5 - Fair Value Measurement
Note 5 - Fair Value Measurements | 12 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 5. Fair Value Measurements The Company records its financial assets and liabilities at fair value in accordance with the framework for measuring fair value. The framework establishes a fair value hierarchy that distinguishes between assumptions based on market data (observable inputs) and market participant’s assumptions (unobservable inputs). Non-financial assets, such as goodwill and long-lived assets, are accounted for at fair value on a non-recurring basis. These items are tested for impairment on the occurrence of a triggering event or, in the case of goodwill and intangibles with indefinite lives, at least on an annual basis. During fiscal year 2023, long-lived assets, including lease assets, with an aggregate carrying value of $5.9 million were written down to their fair value of $4.6 million, resulting in asset impairment charges of $1.3 million. During fiscal year 2022, long-lived assets with an aggregate carrying value of $7.4 million were written down to their fair value of $4.5 million, resulting in asset impairment charges of $2.9 million. During fiscal year 2021, long-lived assets with an aggregate carrying value of $3.3 million were written down to their fair value of $2.1 million, resulting in asset impairment charges of $1.1 million. The carrying amounts of the Company’s financial assets and liabilities, including cash and cash equivalents, accounts receivable, accounts payable and other accrued expenses, approximate fair value because of the short maturity of those assets and liabilities. |
Note 6 - Property and Equipment
Note 6 - Property and Equipment | 12 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 6. Property and Equipment The Company had the following property and equipment balances as of September 30, 2023 and 2022, dollars in thousands: Useful lives As of September 30, (in years) 2023 2022 Construction in process n/a $ 15,221 8,651 Land n/a 6,746 6,746 Buildings 16 – 40 46,412 43,010 Land improvements 1 – 24 2,112 1,822 Leasehold and building improvements 1 – 25 173,407 163,721 Fixtures and equipment 5 – 7 157,710 151,242 Computer hardware and software 3 – 5 27,080 25,545 428,688 400,737 Less accumulated depreciation and amortization (259,628 ) (243,558 ) Property and equipment, net $ 169,060 157,179 Total costs capitalized for qualifying construction projects of leasehold and building improvements included $0.5 million for each of the years ended September 30, 2023 and 2021 and $0.4 million for the year ended September 30, 2022, related to internal staff compensation. Depreciation expense related to capitalized internal staff compensation was $0.7 million for the year ended September 30, 2023 and $0.6 million for each of the years ended September 30, 2022 and 2021. Capitalized interest costs were $0.3 million for each of the years ended September 30, 2023 and 2022 and $0.2 million for the year ended September 30, 2021. Depreciation and amortization expense for the years ended September 30, 2023, 2022 and 2021 is summarized as follows, dollars in thousands: Year ended September 30, 2023 2022 2021 Depreciation and amortization expense included in cost of goods sold and occupancy costs $ 1,083 1,029 873 Depreciation and amortization expense included in store expenses 25,770 25,257 27,476 Depreciation and amortization expense included in administrative expenses 1,607 1,410 1,218 Depreciation and amortization expense included in pre-opening expenses (1) 446 210 66 Total depreciation and amortization expenses $ 28,906 27,906 29,633 1 |
Note 7 - Impairment of Long-liv
Note 7 - Impairment of Long-lived Assets | 12 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Asset Impairment Charges [Text Block] | 7. Impairment of Long-Lived Assets Long-lived assets, such as property and equipment, lease assets, and intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. The Company assesses the recoverability of the assets at an individual store level, which we consider to be the lowest level in the organization for which independent identifiable cash flows are available. If the carrying value of such assets over their respective remaining lives is not recoverable through projected undiscounted future cash flows, impairment is recognized. The amount of impairment is measured based on projected discounted future cash flows using a market participant’s discount rate. The Company considers factors such as historic and forecasted operating results, trends and future prospects, current market value, significant industry trends, and other economic and regulatory factors in performing these analyses. As of September 30, 2023 and 2022, the Company had property and equipment assets of $169.1 million and $157.2 million, respectively, and lease assets of $333.1 million and $350.7 million, respectively. In fiscal years 2023, 2022 and 2021, the Company concluded, as a result of its review of potential long-lived asset impairments, that certain long-lived assets were impaired. The Company recorded impairments of $1.3 million, $2.9 million and $1.1 million for the years ended September 30, 2023, 2022 and 2021, respectively. Such charges are reflected within store expenses on the consolidated statements of income. |
Note 8 - Goodwill and Other Int
Note 8 - Goodwill and Other Intangible Assets | 12 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 8. Goodwill and Other Intangible Assets Goodwill and other intangible assets as of September 30, 2023 and 2022, are summarized as follows, dollars in thousands: Useful lives As of September 30, (in years) 2023 2022 Amortizable intangible assets: Other intangibles 0.5 - 7 $ 13,207 11,965 Less accumulated amortization (5,326 ) (3,827 ) Amortizable intangible assets, net 7,881 8,138 Other intangibles in process 643 369 Trademarks Indefinite 389 389 Deferred financing costs, net 3 - 5 18 37 Total other intangibles, net 8,931 8,933 Goodwill Indefinite 5,198 5,198 Total goodwill and other intangibles, net $ 14,129 14,131 Amortization expense was $1.5 million, $0.7 million and $0.8 million for the years ended September 30, 2023, 2022 and 2021, respectively. Future aggregate amortization expense associated with intangibles assets for the fiscal years subsequent to 2023 is estimated to be approximately as follows, dollars in thousands: Fiscal year Amortization 2024 $ 1,684 2025 1,659 2026 1,550 2027 1,314 2028 1,194 Thereafter 1,141 Total amortization expense $ 8,542 Capitalized costs for internal-use software development were $1.1 million, $3.1 million and $2.0 million for the years ended September 30, 2023, 2022 and 2021, respectively, primarily due to capitalization of expenses related to external consultants. |
Note 9 - Accrued Expenses
Note 9 - Accrued Expenses | 12 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 9. Accrued Expenses The composition of accrued expenses as of September 30, 2023 and 2022 is summarized as follows, dollars in thousands: As of September 30, 2023 2022 Payroll and employee-related expenses $ 17,719 14,527 Accrued property, sales and use tax payable 9,844 8,450 Accrued marketing expenses 466 153 Deferred revenue 1,866 1,757 Other 3,169 1,850 Total accrued expenses $ 33,064 26,737 |
Note 10 - Debt
Note 10 - Debt | 12 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Long-Term Debt [Text Block] | 10. Debt Credit Facility The Company is party to a Credit Facility, entered into on January 28, 2016 and subsequently amended, consisting of a $75.0 million revolving loan facility (the Revolving Facility), which was increased on November 16, 2023 from $50.0 million to $75.0 million, and a $35.0 million term loan facility (the Term Loan Facility, and together with the Revolving Facility, the Credit Facility). The operating company is the borrower under the Credit Facility and its obligations under the Credit Facility are guaranteed by the holding company and VC2. The Credit Facility is secured by a lien on substantially all of the Company’s assets. The revolving commitment amount under the Revolving Facility is $75.0 million, subject to reduction as described below, including a $5.0 million sublimit for standby letters of credit. The Company has the right to borrow, prepay and re-borrow amounts under the Revolving Facility at any time prior to the maturity date without premium or penalty. The Term Loan Facility matures on November 13, 2024 and the Revolving Facility matures on November 16, 2028. Base rate loans under the Credit Facility bear interest at a fluctuating base rate, as determined by the lenders’ administrative agent based on the most recent compliance certificate of the operating company and stated at the highest of (i) the federal funds rate plus 0.50%, (ii) the prime rate, and (iii) Term SOFR plus 1.00%, less the lender spread based upon the Company’s consolidated leverage ratio. Term SOFR borrowings under the Credit Facility bear interest based on Term SOFR for the interest period plus the lender spread based upon the Company’s consolidated leverage ratio. The unused commitment fee is based upon the Company’s consolidated leverage ratio. The Company is required to repay principal amounts outstanding under the Term Loan Facility in equal installments of approximately $0.4 million on the last day of each fiscal quarter, beginning on March 31, 2021 and ending on September 30, 2024, with the remaining principal amount payable on the maturity date. Amounts repaid on the Term Loan Facility may not be reborrowed. The Credit Facility requires compliance with certain customary operational and financial covenants, including a consolidated 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 default or event of default exists or would arise as a result thereof, the operating company may pay cash dividends to the holding company in an amount sufficient to allow the holding company to: (i) pay various audit, accounting, tax, securities, indemnification, reimbursement, insurance and other reasonable expenses incurred in the ordinary course of business and (ii) repurchase shares of common stock and pay dividends on the Company’s common stock in an aggregate amount not to exceed $15.0 million during any fiscal year. On November 16, 2023, the Company amended the Credit Facility to (i) increase its aggregate revolving commitments from $50.0 million to $75.0 million; (ii) extend the maturity date of the Revolving Facility to November 16, 2028; (iii) permit payment of a one-time cash dividend of up to $25.0 million no later than December 31, 2023; and (iv) increase the Company’s restricted payment capacity by $2.5 million, allowing the Company to repurchase shares of common stock and pay dividends on its common stock in an aggregate amount not to exceed $15.0 million during any fiscal year. The aggregate revolving commitment amount will be automatically and permanently reduced by $2,500,000 annually until the Revolving Facility matures in November 2028, unless the Company has previously exercised its option to reduce the aggregate revolving commitments to a lower amount. The Company had no As of September 30, 2023 and 2022, the Company was in compliance with all covenants under the Credit Facility. Lease Obligations The Company had 24 and 21 leases that were classified as finance leases as of September 30, 2023 and 2022, respectively. No rent expense is recorded for these finance leases; rather, rental payments under such leases are recognized as a reduction of the lease obligation and as interest expense. The interest rate on finance lease obligations is determined at the commencement of the lease. Interest The Company incurred gross interest expense of $3.6 million, $2.7 million and $2.5 million for the years ended September 30, 2023, 2022 and 2021, respectively. Interest expense relates primarily to interest on finance lease obligations and the Credit Facility. The Company capitalized interest of $0.3 million for each of the years ended September 30, 2023 and 2022 and $0.2 million for the year ended September 30, 2021. |
Note 11 - Lease Commitments
Note 11 - Lease Commitments | 12 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Lessee, Operating and Finance Leases [Text Block] | 11. Lease Commitments 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 to 25 years, with scheduled increases in minimum rent payments. Operating and finance lease liabilities represent the present value of lease payments not yet paid. Operating and finance lease assets represent the Company’s right to use an underlying asset and are based upon the operating and finance lease liabilities adjusted for prepayments or accrued lease payments, initial direct costs, lease incentives and impairment of operating and finance lease assets. Most leases include one or more options to renew, with renewal terms normally expressed in periods of five ten 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 included in the measurement of the lease liability or asset and are expensed as incurred. As most of the Company’s lease agreements do not provide an implicit discount rate, the Company uses an estimated incremental borrowing rate, which is derived from third-party lenders, to determine the present value of lease payments. The Company uses other observable market data to evaluate the appropriateness of the rate derived from the lenders. The estimated incremental borrowing rate is based on the borrowing rate for a secured loan with a term similar to the expected term of the lease. 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 months or less (short-term leases) are not presented on the balance sheet. The Company has elected to account for the lease and non-lease components as a single lease component for all current classes of leases. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company subleases certain real estate or portions thereof to third parties. Such subleases have all been classified as operating leases. Remaining lease terms extend through fiscal year 2030. Although some sublease arrangements provide renewal options, the exercise of sublease renewal options is at the sole discretion of the subtenant. The Company recognizes sublease income on a straight-line basis. The Company has four one one The components of total lease cost for the years ended September 30, 2023, 2022 and 2021 were as follows, dollars in thousands: Year ended September 30, Lease cost Classification 2023 2022 2021 Operating lease cost: Cost of goods sold and occupancy costs $ 43,913 42,979 42,652 Store expenses 319 337 319 Administrative expenses 327 309 305 Pre-opening expenses 269 275 233 Finance lease cost: Depreciation of lease Store expenses 3,746 3,832 3,618 Pre-opening expenses (1) 446 210 68 Interest on lease liabilities Interest expense, net 1,837 1,896 1,931 Pre-opening expenses (1) 482 218 22 Short-term lease cost Store expenses 3,071 2,900 326 Variable lease cost Cost of goods sold and occupancy costs (2) 6,429 5,851 5,611 Sublease income Store expenses (323 ) (302 ) (313 ) Total lease cost $ 60,516 58,505 54,772 1 2 Additional information related to the Company’s leases for the years ended September 30, 2023, 2022 and 2021 was as follows, dollars in thousands: Year ended September 30, 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 45,661 41,050 44,473 Operating cash flows from finance leases 2,320 2,114 1,976 Financing cash flows from finance leases 2,779 2,719 2,823 Lease assets obtained in exchange for new lease liabilities: Operating leases 15,274 24,429 9,216 Finance leases 5,724 9,625 3,025 Additional information related to the Company’s leases as of September 30, 2023 and 2022 was as follows: September 30, 2023 2022 Weighted-average remaining lease term (in years): Operating leases 10.3 10.7 Finance leases 14.2 14.2 Weighted-average discount rate: Operating leases 3.8 % 3.7 Finance leases 4.9 % 4.8 During the year ended September 30, 2023, the Company paid $0.2 million in lease termination costs to early terminate the lease associated with a store that closed in fiscal year 2022. As a result of this lease termination, the Company wrote off $0.1 million in operating lease assets and $0.2 million in operating lease liabilities and recorded a $0.1 loss in store expenses. In addition, during the year ended September 30, 2022, the Company purchased one store’s building and land that had previously been leased. This resulted in a $1.5 million reduction in finance lease liability and the reclassification of $1.4 million of corresponding finance lease assets to property and equipment. Future lease payments under non-cancellable leases as of September 30, 2023 were as follows, dollars in thousands: Fiscal year Operating leases Finance leases Total 2024 $ 45,966 5,961 51,927 2025 44,628 6,051 50,679 2026 41,777 6,093 47,870 2027 39,983 6,138 46,121 2028 37,151 5,053 42,204 Thereafter 170,998 40,841 211,839 Total future undiscounted lease payments 380,503 70,137 450,640 Less imputed interest (68,845 ) (19,305 ) (88,150 ) Total reported lease liability 311,658 50,832 362,490 Less current portion (34,850 ) (3,690 ) (38,540 ) Noncurrent lease liability $ 276,808 47,142 323,950 The table above excludes $2.4 million of legally binding minimum lease payments for leases that had been executed as of September 30, 2023 but whose terms had not yet commenced. Future minimum rental commitments and sublease rental income under the terms of the Company’s operating and finance leases were as follows as of September 30, 2023, dollars in thousands: Fiscal year Third Related Sublease rental income Total 2024 $ 50,709 1,218 (353 ) 51,574 2025 49,461 1,218 (277 ) 50,402 2026 46,730 1,140 (279 ) 47,591 2027 45,275 846 (192 ) 45,929 2028 41,474 730 (85 ) 42,119 Thereafter 205,755 6,084 (67 ) 211,772 Total payments $ 439,404 11,236 (1,253 ) 449,387 Total rent expense, including common area expenses and warehouse rent, for the years ended September 30, 2023, 2022 and 2021 totaled $58.4 million, $56.0 million and $55.3 million, respectively, which is included in cost of goods sold and occupancy costs and administrative expenses in the consolidated statements of income. In addition, $0.3 million, $0.3 million and $0.2 million is included in pre-opening expense associated with rent expense for stores prior to their opening date for the years ended September 30, 2023, 2022 and 2021, respectively. |
Note 12 - Share-based Compensat
Note 12 - Share-based Compensation | 12 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Share-Based Payment Arrangement [Text Block] | 12. Share-Based Compensation The Company adopted the 2012 Omnibus Incentive Plan (as amended, the Plan) on July 17, 2012. Restricted stock unit awards granted pursuant to the Plan, if they vest, will be settled in new shares of the Company’s common stock or shares of common stock held in treasury. At the adoption of the Plan, there were 1,090,151 shares of common stock available for issuance or delivery under the Plan. In March 2019, the Company’s stockholders approved a proposal to amend the Plan to: (i) increase the number of shares of common stock reserved for issuance thereunder by 600,000 shares and (ii) extend its term by five five The shares of non-vested restricted stock units as of September 30, 2023 were as follows: Shares Weighted average grant date fair value Non-vested as of September 30, 2021 388,139 $ 10.38 Granted 45,542 12.87 Forfeited (6,168 ) 9.93 Vested (96,719 ) 10.29 Non-vested as of September 30, 2022 330,794 10.68 Granted 195,067 11.74 Forfeited (17,213 ) 11.16 Vested (93,698 ) 10.41 Non-vested as of September 30, 2023 414,950 11.28 During the year ended September 30, 2023, the Company awarded fully vested stock grants totaling 2,000 shares of the Company’s common stock to 20 employees who were not named executive officers. Share-based compensation expense for restricted stock unit awards to certain employees who are not named executive officers was $0.9 million, $0.8 million and $0.5 million for the years ended September 30, 2023, 2022 and 2021, respectively. Share-based compensation expense for restricted stock unit awards to one named executive officer was $0.3 million for the year ended September 30, 2023 and $0.2 million for each of the years ended September 30, 2022 and 2021. Each independent member of the Board receives an annual grant of restricted stock units equal to $60,000 (based on the closing price of common stock on the New York Stock Exchange on the date of grant). Such grants are made each year on the date of the Company’s annual meeting of stockholders, or on a pro rata basis in the case of a mid-year appointment. Share-based compensation expense for the Company’s awards to its Board members was $0.2 million for each of the years ended September 30, 2023, 2022 and 2021. The Company recorded total share-based compensation expense before income taxes of $1.4 million, $1.2 million and $0.9 million for the years ended September 30, 2023, 2022 and 2021, respectively. The share-based compensation expense is included in cost of goods sold and occupancy costs, store expenses or administrative expenses in the consolidated statements of income consistent with the manner in which the applicable officer, Board member or key employee’s compensation expense is presented. The Company realized a tax benefit from share-based compensation of less than $0.1 million for the year ended September 30, 2023 and $0.1 million for each of the years ended September 30, 2022 and 2021. As of September 30, 2023, there was $2.1 million of unrecognized share-based compensation expense related to non-vested restricted stock units, net of estimated forfeitures, which the Company anticipates will be recognized over a weighted average period of approximately two |
Note 13 - Stockholders' Equity
Note 13 - Stockholders' Equity | 12 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Equity [Text Block] | 13. Stockholders Equity Share Repurchases In May 2016, the Board authorized a two The following table summarizes share repurchase activity for the years ended September 30, 2023, 2022 and 2021, dollars in thousands, except average price per common share acquired: Year Ended September 30, 2023 2022 2021 Number of common shares acquired 17,998 — — Average price per common share acquired (including commissions) $ 10.07 — — Total cost of common shares acquired $ 181 — — During fiscal year 2023, the Company reissued 11,501 treasury shares at a cost of $0.1 million to satisfy the issuance of common stock pursuant to the vesting of certain restricted stock unit awards and the award of stock grants. During fiscal years 2022 and 2021, the Company did not no Between October 1, 2023 and December 4, 2023 (the latest practical date for making the determination), the Company has not Dividends The Company paid a quarterly cash dividend of $0.10, $0.10 and $0.07 per share of common stock in each quarter of fiscal years 2023, 2022 and 2021, respectively, and a special cash dividend of $2.00 per share of common stock in the first quarter of fiscal year 2021. |
Note 14 - Related Party Transac
Note 14 - Related Party Transactions | 12 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 14. Related Party Transactions The Company has ongoing relationships with related entities as noted below: Chalet Properties, LLC: four four Isely Family Land Trust LLC: one FTVC LLC: one four |
Note 15 - Income Taxes
Note 15 - Income Taxes | 12 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 15. Income Taxes The following are the components of the provision for income taxes for the years ended September 30, 2023, 2022 and 2021, respectively, dollars in thousands: Year ended September 30, 2023 2022 2021 Current federal income tax expense $ 5,291 4,667 3,859 Current state income tax expense 1,311 1,143 752 Total current income tax expense 6,602 5,810 4,611 Deferred federal income tax (benefit) expense (1,334 ) 559 836 Deferred state income tax (benefit) expense (141 ) 50 28 Total deferred income tax (benefit) expense (1,475 ) 609 864 Total provision for income taxes $ 5,127 6,419 5,475 The differences between the United States federal statutory income tax rate and the Company’s effective tax rate are as follows: Year ended September 30, 2023 2022 2021 Statutory tax rate 21.0 % 21.0 21.0 State income taxes, net of federal income tax expense 3.1 3.4 3.6 Enhanced food deduction (3.1 ) (0.5 ) (0.5 ) Deferred tax liability adjustment — 1.0 0.8 Other, net (2.9 ) (1.8 ) (3.9 ) Effective tax rate 18.1 % 23.1 21.0 Deferred taxes have been classified on the consolidated balance sheets as follows, dollars in thousands: As of September 30, 2023 2022 Long-term assets $ — — Long-term liabilities (14,427 ) (15,902 ) Net deferred tax liabilities $ (14,427 ) (15,902 ) The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities are as follows, dollars in thousands: As of September 30, 2023 2022 Deferred tax assets: Trademarks $ 576 593 Finance lease obligations 12,403 11,684 Operating lease obligations 76,045 80,468 Research and experimental expenditures 963 — Accrued paid time off 708 750 Other 764 666 Gross deferred tax assets 91,459 94,161 Deferred tax liabilities: Property and equipment (21,539 ) (21,654 ) Finance lease assets (11,003 ) (10,627 ) Operating lease assets (70,517 ) (75,055 ) Leasehold improvements (2,095 ) (2,217 ) Other (732 ) (510 ) Gross deferred tax liabilities (105,886 ) (110,063 ) Net deferred tax liabilities $ (14,427 ) (15,902 ) The Company believes that it is more likely than not that it will fully realize all deferred tax assets in the form of future deductions based on the nature of the deductible temporary differences and expected future taxable income. The Company did not utilize federal income tax carryforwards or federal tax credit carryforwards for the years ended September 30, 2023, 2022 and 2021. The Company utilized $0.1 million in tax effected state income tax carryforwards for each of the years ended September 30, 2023, 2022 and 2021. The Company did not The Company files income tax returns with federal, state and local tax authorities. With limited exceptions, the Company is no longer subject to federal income tax examinations for fiscal years 2019 and prior and is no longer subject to state and local income tax examinations for fiscal years 2018 and prior. |
Note 16 - Defined Contribution
Note 16 - Defined Contribution Plan | 12 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Retirement Benefits [Text Block] | 16. Defined Contribution Plan The Company has a defined contribution retirement plan (the Retirement Plan) covering substantially all employees who meet certain eligibility requirements as to age and length of service. The Retirement Plan incorporates the salary deferral provisions of Section 401(k) of the Internal Revenue Code of 1986, as amended (the Code). Employees may defer up to the annual maximum limit prescribed by the Code. The Company, on a discretionary basis, may match up to 25% of participant contributions up to a maximum annual employer match of $2,500. As of September 30, 2023, the Company had accrued $0.9 million for matching contributions to be paid out after the plan year ending December 31, 2023. Subsequent to plan years ending December 31, 2022 and 2021, the Company funded matching contributions to participants’ accounts of $1.1 and $1.2 million, respectively. |
Note 17 - Segment Reporting
Note 17 - Segment Reporting | 12 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 17. Segment Reporting The Company has one |
Note 18 - Commitments and Conti
Note 18 - Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 18. Commitments and Contingencies Self-Insurance The Company is self-insured for certain losses relating to employee medical and dental benefits and workers compensation, subject to a stop loss policy. The self-insurance liability related to claims under the Company’s health benefit plans is determined based on analysis of actual claims. The amounts related to these claims are included as a component of payroll and employee-related expenses in accrued expenses. Liabilities associated with the risks that are retained by the Company are estimated, in part, by considering historical claims experience, demographic factors and other actuarial assumptions. While the Company believes that its assumptions are appropriate, the estimated accrual for these liabilities could be significantly affected if future occurrences and claims materially differ from these assumptions and historical trends. Legal The Company is periodically involved in various legal proceedings that are incidental to the conduct of its business, including but not limited to employment discrimination claims, customer injury claims, and investigations. When the potential liability from a matter can be estimated and the loss is considered probable, the Company records the estimated loss. Due to uncertainties related to the resolution of lawsuits, investigations, and claims, the ultimate outcome may differ from the estimates. Although the Company cannot predict with certainty the ultimate resolution of any lawsuits, investigations, and claims asserted against it, management does not believe any currently pending legal proceeding to which the Company is a party will have a material adverse effect on its financial statements. |
Note 19 - Subsequent Events
Note 19 - Subsequent Events | 12 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 19. Subsequent Events On November 16, 2023, the Board approved a special cash dividend of $1.00 per share and a quarterly cash dividend of $0.10 per share, which will be paid on December 13, 2023 to stockholders of record as of the close of business on November 27, 2023. The special cash dividend will be funded through available cash and borrowings under the Company’s Revolving Facility. On November 16, 2023, the Company entered into the Seventh Amendment to the Credit Facility to (i) increase its aggregate revolving commitments from $50.0 million to $75.0 million, subject to reductions; (ii) extend the maturity date of the Revolving Facility to November 16, 2028; (iii) permit payment of a one-time cash dividend of up to $25.0 million no later than December 31, 2023; and (iv) increase the Company’s restricted payment capacity by $2.5 million, allowing the Company to repurchase shares of common stock and pay dividends on its common stock in an aggregate amount not to exceed $15.0 million during any fiscal year. See Note 10, Debt |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The accompanying 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). All significant intercompany balances and transactions have been eliminated in consolidation. |
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, 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 valuation of inventories, useful lives of long-lived assets for depreciation and amortization, impairment of finite-lived intangible assets, long-lived assets, and goodwill, lease assumptions, allowances for self-insurance reserves, deferred tax assets and liabilities, and litigation based on currently available information. Changes in facts and circumstances may result in revised estimates and actual results could differ from those estimates. |
Segment Reporting, Policy [Policy Text Block] | Segment Information The Company has one |
Comprehensive Income, Policy [Policy Text Block] | Other Comprehensive Income The Company has no other comprehensive income. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents Cash and cash equivalents include currency on hand, demand deposits with banks, money market funds, and credit and debit card transactions that typically settle within three business days. The Company considers all highly liquid investments with a remaining maturity of 90 days or less when acquired to be cash equivalents. |
Accounts Receivable [Policy Text Block] | Accounts Receivable Accounts receivable consists primarily of receivables from vendors for certain promotional programs, magazine advertising and other miscellaneous receivables and are presented net of any allowances for doubtful accounts. Accounts receivable also includes receivables from Landlords for tenant improvement allowances. Vendor receivable balances are generally presented on a gross basis separate from any related payable due. Allowance for doubtful accounts is calculated based on historical experience and application of the specific identification method. Allowance for doubtful accounts totaled $0.2 million and $0.1 million as of September 30, 2023 and 2022, respectively. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Credit Risk Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of investments in cash and cash equivalents. The Company’s cash and cash equivalent account balances, which are held in major financial institutions, exceeded the Federal Deposit Insurance Corporation’s federally insured limits by approximately $17.2 million as of September 30, 2023. |
Vendor Concentration [Policy Text Block] | Vendor Concentration For each of the years ended September 30, 2023 and 2022, purchases from the Company’s largest vendor and its subsidiaries represented approximately 68% of all product purchases made during such periods. However, the Company believes that, if necessary, alternate vendors could supply similar products in adequate quantities to avoid material disruptions to operations. |
Inventory, Policy [Policy Text Block] | Merchandise Inventory Merchandise inventory consists of goods held for sale. The cost of inventory includes certain costs associated with the preparation of inventory for sale, including inventory overhead costs. Merchandise inventory is carried at the lower of cost or net realizable value. Cost is determined using the weighted average cost method. |
Property, Plant and Equipment, Policy [Policy Text Block] | Long-Lived Assets Depreciable long-lived assets primarily consist of leasehold and building improvements, which are stated at historical cost less accumulated depreciation. Depreciation is provided using the straight-line method over the useful life of the relevant asset. For land improvements and leasehold and building improvements, depreciation is recorded over the shorter of the assets’ useful lives or the lease terms. Maintenance, repairs and renewals that neither add to the value of the property nor appreciably prolong its life are charged to expense as incurred. Gains and losses on disposition of property and equipment are included in store expenses in the year of disposition, and primarily relate to store relocations and closures. The Company capitalizes interest, if applicable, as part of the historical costs of buildings and leasehold and building improvements. |
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block] | Impairment of Finite-Lived Intangible and Long-Lived Assets We assess our long-lived assets, principally property and equipment, lease assets, and intangible assets subject to amortization, for possible impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. These events or changes primarily include a significant change in current period performance combined with a history of losses and a projection of continuing losses, or a decision to close or relocate a store. If the carrying value of such assets over their respective remaining lives is not recoverable through projected undiscounted future cash flows, impairment is recognized for any excess of the carrying value over the estimated fair value of the asset group. The fair value of the asset group is estimated based on either: (i) discounted future cash flows using a market participant’s discount rate; or (ii) an appropriate third-party market appraisal or other valuation technique. The Company considers factors such as historic and forecasted operating results, trends and future prospects, current market value, significant industry trends and other economic and regulatory factors in performing these analyses. As of September 30, 2023 and 2022, the Company had property and equipment assets of $169.1 million and $157.2 million, respectively, operating lease assets of $287.9 million and $307.1 million, respectively, finance lease assets of $45.1 million and $43.6 million, respectively, and intangible assets subject to amortization of $8.5 million. The Company recorded impairment charges related to long-lived assets of $1.3 million, $2.9 million and $1.1 million in fiscal years 2023, 2022 and 2021, respectively. |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill and Other Intangible Assets Intangible assets primarily consist of goodwill, internal-use software, and trademarks. Goodwill and the Company’s trademarks have indefinite lives and are not amortized; rather, they are tested for impairment at least annually on July 1. The Company capitalizes certain costs incurred with developing or obtaining internal-use software. Software costs that do not meet capitalization criteria are expensed as incurred. Intangible assets with definite lives are amortized over their estimated useful lives. The Company evaluates the reasonableness of the useful lives of these intangibles at least annually. The Company’s annual impairment testing of goodwill is performed as of July 1. In performing the Company’s analysis of goodwill, the Company first evaluates qualitative factors, including relevant events and circumstances, to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. An impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value should be recognized; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. As of September 30, 2023, the Company has recorded no impairment charges related to goodwill. |
Deferred Charges, Policy [Policy Text Block] | Deferred Financing Costs Certain costs incurred with borrowings or establishment of credit facilities are deferred. These costs are amortized over the life of the credit facility using the straight-line method. |
Lessee, Leases [Policy Text Block] | Leases The Company leases retail stores, a bulk food repackaging facility and distribution center, and administrative offices under long-term operating or finance leases. These leases include scheduled increases in minimum rents and renewal provisions at the option of the Company. The lease term for accounting purposes commences with the date the Company takes possession of the space and ends on the later of the primary lease term or the expiration of any renewal periods that are deemed to be reasonably assured at the inception of the lease. The Company recognizes a lease asset and corresponding lease liability for all leases with terms greater than 12 months, with the recognition, measurement, and presentation of lease expenses dependent on whether the lease is classified as an operating or finance lease. Operating Leases Operating lease liabilities represent the present value of lease payments not yet paid. Operating lease assets represent the Company’s right to use an underlying asset and are based upon the operating lease liabilities adjusted for prepayments or accrued lease payments, initial direct costs, lease incentives and impairment of operating lease assets. The rent payment pursuant to the lease agreement is recorded as a reduction of the operating lease liability and lease asset and as single lease expense over the remaining term of the applicable lease. Finance Leases Finance lease liabilities represent the present value of lease payments not yet paid. Finance lease assets represent the Company’s right to use an underlying asset and are based upon the lease liabilities adjusted for prepayments or accrued lease payments, initial direct costs, lease incentives and impairment of finance lease assets. The Company does not record single lease expense for the rental payments under finance leases, but rather payments under the finance lease obligations are recognized as a reduction of the finance lease obligation and as interest expense over the remaining term of the lease. The lease asset is depreciated on a straight-line basis over the remaining term of the applicable lease. |
Self Insurance Reserve [Policy Text Block] | Self-Insurance The Company is self-insured for certain losses relating to employee medical and dental benefits and workers compensation. Stop-loss coverage has been purchased to limit exposure to any significant level of claims. Self-insured losses are accrued based upon the Company’s estimates of the aggregate claims incurred but not reported using historical experience. The estimated accruals for these liabilities could be significantly affected if future occurrences and claims differ from historical trends. |
Revenue [Policy Text Block] | Revenue Recognition Revenue is recognized at the point of sale, net of in-house coupons, discounts and returns. Sales taxes are not included in sales. The Company charges sales tax on all taxable customer purchases and remits these taxes monthly to the appropriate taxing jurisdiction. The Company records a contract liability within accrued expenses when it sells the Company’s gift cards and records a sale when a customer redeems the gift card. |
Cost of Goods Sold and Occupancy Costs [Policy Text Block] | Cost of Goods Sold and Occupancy Costs Cost of goods sold and occupancy costs includes the cost of inventory sold during the period net of discounts and allowances, as well as, distribution, shipping and handling costs, store occupancy costs and costs of the bulk food repackaging facility and distribution center. The amount shown is net of various rebates from third-party vendors in the form of quantity discounts and payments. Vendor consideration associated with product discounts is recorded as a reduction in the cost of the product. Store occupancy costs include rent, common area maintenance and real estate taxes. Store occupancy costs do not include any rent amounts for the store leases classified as finance leases. |
Store Expenses [Policy Text Block] | Store Expenses Store expenses consist of store-level expenses such as salaries, benefits and share-based compensation, supplies, utilities, depreciation, gain or loss on disposal of assets, long-lived asset impairment charges, store closing costs and other related expenses associated with operations support. Store expenses also include purchasing support services and advertising and marketing costs. |
Selling, General and Administrative Expenses, Policy [Policy Text Block] | Administrative Expenses Administrative expenses consist of salaries, benefits and share-based compensation, occupancy costs, depreciation, office supplies, hardware and software expenses, professional services expenses and other general and administrative expenses. |
Pre-Opening Costs and Relocation Expenses [Policy Text Block] | Pre-Opening Expenses Costs associated with the opening of new stores or relocating/remodeling existing stores are expensed as incurred. |
Advertising Cost [Policy Text Block] | Advertising and Marketing Advertising and marketing costs are expensed as incurred and are included in store expenses and pre-opening expenses in the consolidated statements of income. Total advertising and marketing expenses for the years ended September 30, 2023, 2022 and 2021 were $6.9 million, $6.2 million and $6.3 million, respectively, net of vendor reimbursements of $7.1 million, $6.3 million and $5.4 million for the years ended September 30, 2023, 2022 and 2021, respectively. |
Share-Based Payment Arrangement [Policy Text Block] | Share-Based Compensation The Company adopted the 2012 Omnibus Incentive Plan in connection with its initial public offering on July 25, 2012. Restricted stock units are granted at the market price of the Company’s common stock on the date of grant and expensed over the applicable vesting period. The excess tax benefits for recognized compensation costs are reported as a credit to income tax expense and as operating cash outflows when such excess tax benefits are realized by a reduction to current taxes payable. |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company accounts for income taxes using the asset and liability method. This method requires recognition of deferred tax assets and liabilities for expected future tax consequences of temporary differences that currently exist between the tax basis and financial reporting basis of the Company’s assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates in the respective jurisdictions in which the Company operates. The Company considers the need to establish valuation allowances to reduce deferred income tax assets to the amounts the Company believes are more likely than not to be recovered. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. Although the Company believes that its estimates are reasonable, actual results could differ from these estimates. In addition, the Company is subject to periodic audits and examinations by the Internal Revenue Service (IRS) and other state and local taxing authorities. Any interest or penalties incurred related to income taxes are expensed as incurred and treated as permanent differences for tax purposes. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform,” Topic 848, “Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (ASU 2020-04), which was subsequently amended by a standard update in December 2022. The new guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The guidance applies only to contracts, hedging relationships and other transactions that reference the London Interbank Offered Rate (LIBOR) or another reference rate expected to be discontinued because of reference rate reform. As amended, the guidance only applies to modifications made prior to December 31, 2024. On December 15, 2022, the Company amended the Credit Facility (as defined in Note 10 below) to, among other things, replace the LIBOR-based interest rate benchmark provisions with interest rate benchmark provisions based on the Secured Overnight Financing Rate (SOFR). The Company elected to apply ASU 2020-04’s amendments for contract modifications during the first quarter of the fiscal year ending September 30, 2023. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements for the year ended September 30, 2023. In December 2019, the FASB issued ASU 2019-12, “Income Taxes,” Topic 740, “Simplifying the Accounting for Income Taxes” (ASU 2019-12). The new guidance simplified the accounting for income taxes by removing certain exceptions to the general principles and also simplified areas such as franchise taxes, step-up in tax basis goodwill, separate entity financial statements, and interim recognition of enactment of tax laws or rate changes. The provisions of ASU 2019-12 were effective for the Company’s first quarter of the fiscal year ended September 30, 2022. The adoption of this ASU did not have an impact on the Company’s consolidated financial statements for the year ended September 30, 2022. Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses,” Topic 326, “Measurement of Credit Losses on Financial Instruments” (ASU 2016-13), subsequently amended by various standard updates. ASU 2016-13 replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information when determining credit loss estimates. ASU 2016-13 also requires financial assets to be measured net of expected credit losses at the time of initial recognition. ASU 2019-10, issued in November 2019, delayed the effective date of ASU 2016-13 for smaller reporting companies such as the Company. The provisions of ASU 2016-13 will be effective for the Company’s first quarter of the fiscal year ending September 30, 2024. The Company is evaluating the impact that the adoption of these provisions will have on its consolidated financial statements but does not anticipate that these provisions will have material impacts on its consolidated financial statements. No other new accounting pronouncements issued or effective during fiscal year 2023 had, or are expected to have, a material impact on the Company’s consolidated financial statements. |
Note 3 - Revenue Recognition (T
Note 3 - Revenue Recognition (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Year ended September 30, 2023 2022 2021 Grocery $ 796,241 70 % 759,328 70 731,894 69 Dietary supplements 235,714 21 227,220 21 220,000 21 Body care, pet care and other 108,613 9 103,077 9 103,622 10 $ 1,140,568 100 % 1,089,625 100 1,055,516 100 |
Note 4 - Earnings Per Share (Ta
Note 4 - Earnings Per Share (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Year ended September 30, 2023 2022 2021 Net income $ 23,243 21,365 20,581 Weighted average number of shares of common stock outstanding 22,725,088 22,666,773 22,591,816 Effect of dilutive securities 109,228 149,841 119,187 Weighted average number of shares of common stock outstanding including the effect of dilutive securities 22,834,316 22,816,614 22,711,003 Basic earnings per share $ 1.02 0.94 0.91 Diluted earnings per share $ 1.02 0.94 0.91 |
Note 6 - Property and Equipme_2
Note 6 - Property and Equipment (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | Useful lives As of September 30, (in years) 2023 2022 Construction in process n/a $ 15,221 8,651 Land n/a 6,746 6,746 Buildings 16 – 40 46,412 43,010 Land improvements 1 – 24 2,112 1,822 Leasehold and building improvements 1 – 25 173,407 163,721 Fixtures and equipment 5 – 7 157,710 151,242 Computer hardware and software 3 – 5 27,080 25,545 428,688 400,737 Less accumulated depreciation and amortization (259,628 ) (243,558 ) Property and equipment, net $ 169,060 157,179 |
Depreciation and Amortization Expense [Table Text Block] | Year ended September 30, 2023 2022 2021 Depreciation and amortization expense included in cost of goods sold and occupancy costs $ 1,083 1,029 873 Depreciation and amortization expense included in store expenses 25,770 25,257 27,476 Depreciation and amortization expense included in administrative expenses 1,607 1,410 1,218 Depreciation and amortization expense included in pre-opening expenses (1) 446 210 66 Total depreciation and amortization expenses $ 28,906 27,906 29,633 |
Note 8 - Goodwill and Other I_2
Note 8 - Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | Useful lives As of September 30, (in years) 2023 2022 Amortizable intangible assets: Other intangibles 0.5 - 7 $ 13,207 11,965 Less accumulated amortization (5,326 ) (3,827 ) Amortizable intangible assets, net 7,881 8,138 Other intangibles in process 643 369 Trademarks Indefinite 389 389 Deferred financing costs, net 3 - 5 18 37 Total other intangibles, net 8,931 8,933 Goodwill Indefinite 5,198 5,198 Total goodwill and other intangibles, net $ 14,129 14,131 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Fiscal year Amortization 2024 $ 1,684 2025 1,659 2026 1,550 2027 1,314 2028 1,194 Thereafter 1,141 Total amortization expense $ 8,542 |
Note 9 - Accrued Expenses (Tabl
Note 9 - Accrued Expenses (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | As of September 30, 2023 2022 Payroll and employee-related expenses $ 17,719 14,527 Accrued property, sales and use tax payable 9,844 8,450 Accrued marketing expenses 466 153 Deferred revenue 1,866 1,757 Other 3,169 1,850 Total accrued expenses $ 33,064 26,737 |
Note 11 - Lease Commitments (Ta
Note 11 - Lease Commitments (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Lease, Cost [Table Text Block] | Year ended September 30, Lease cost Classification 2023 2022 2021 Operating lease cost: Cost of goods sold and occupancy costs $ 43,913 42,979 42,652 Store expenses 319 337 319 Administrative expenses 327 309 305 Pre-opening expenses 269 275 233 Finance lease cost: Depreciation of lease Store expenses 3,746 3,832 3,618 Pre-opening expenses (1) 446 210 68 Interest on lease liabilities Interest expense, net 1,837 1,896 1,931 Pre-opening expenses (1) 482 218 22 Short-term lease cost Store expenses 3,071 2,900 326 Variable lease cost Cost of goods sold and occupancy costs (2) 6,429 5,851 5,611 Sublease income Store expenses (323 ) (302 ) (313 ) Total lease cost $ 60,516 58,505 54,772 |
Additional Information Related to Leases [Table Text Block] | Year ended September 30, 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 45,661 41,050 44,473 Operating cash flows from finance leases 2,320 2,114 1,976 Financing cash flows from finance leases 2,779 2,719 2,823 Lease assets obtained in exchange for new lease liabilities: Operating leases 15,274 24,429 9,216 Finance leases 5,724 9,625 3,025 September 30, 2023 2022 Weighted-average remaining lease term (in years): Operating leases 10.3 10.7 Finance leases 14.2 14.2 Weighted-average discount rate: Operating leases 3.8 % 3.7 Finance leases 4.9 % 4.8 |
Operating and Finance Lease, Liability, Maturity [Table Text Block] | Fiscal year Operating leases Finance leases Total 2024 $ 45,966 5,961 51,927 2025 44,628 6,051 50,679 2026 41,777 6,093 47,870 2027 39,983 6,138 46,121 2028 37,151 5,053 42,204 Thereafter 170,998 40,841 211,839 Total future undiscounted lease payments 380,503 70,137 450,640 Less imputed interest (68,845 ) (19,305 ) (88,150 ) Total reported lease liability 311,658 50,832 362,490 Less current portion (34,850 ) (3,690 ) (38,540 ) Noncurrent lease liability $ 276,808 47,142 323,950 |
Lessee, Operating and Financing Lease, Liability, Maturity [Table Text Block] | Fiscal year Third Related Sublease rental income Total 2024 $ 50,709 1,218 (353 ) 51,574 2025 49,461 1,218 (277 ) 50,402 2026 46,730 1,140 (279 ) 47,591 2027 45,275 846 (192 ) 45,929 2028 41,474 730 (85 ) 42,119 Thereafter 205,755 6,084 (67 ) 211,772 Total payments $ 439,404 11,236 (1,253 ) 449,387 |
Note 12 - Share-based Compens_2
Note 12 - Share-based Compensation (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | Shares Weighted average grant date fair value Non-vested as of September 30, 2021 388,139 $ 10.38 Granted 45,542 12.87 Forfeited (6,168 ) 9.93 Vested (96,719 ) 10.29 Non-vested as of September 30, 2022 330,794 10.68 Granted 195,067 11.74 Forfeited (17,213 ) 11.16 Vested (93,698 ) 10.41 Non-vested as of September 30, 2023 414,950 11.28 |
Note 13 - Stockholders' Equity
Note 13 - Stockholders' Equity (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Class of Treasury Stock [Table Text Block] | Year Ended September 30, 2023 2022 2021 Number of common shares acquired 17,998 — — Average price per common share acquired (including commissions) $ 10.07 — — Total cost of common shares acquired $ 181 — — |
Note 15 - Income Taxes (Tables)
Note 15 - Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Year ended September 30, 2023 2022 2021 Current federal income tax expense $ 5,291 4,667 3,859 Current state income tax expense 1,311 1,143 752 Total current income tax expense 6,602 5,810 4,611 Deferred federal income tax (benefit) expense (1,334 ) 559 836 Deferred state income tax (benefit) expense (141 ) 50 28 Total deferred income tax (benefit) expense (1,475 ) 609 864 Total provision for income taxes $ 5,127 6,419 5,475 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Year ended September 30, 2023 2022 2021 Statutory tax rate 21.0 % 21.0 21.0 State income taxes, net of federal income tax expense 3.1 3.4 3.6 Enhanced food deduction (3.1 ) (0.5 ) (0.5 ) Deferred tax liability adjustment — 1.0 0.8 Other, net (2.9 ) (1.8 ) (3.9 ) Effective tax rate 18.1 % 23.1 21.0 |
Schedule of Classification of Deferred Tax Assets and Liabilities [Table Text Block] | As of September 30, 2023 2022 Long-term assets $ — — Long-term liabilities (14,427 ) (15,902 ) Net deferred tax liabilities $ (14,427 ) (15,902 ) |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | As of September 30, 2023 2022 Deferred tax assets: Trademarks $ 576 593 Finance lease obligations 12,403 11,684 Operating lease obligations 76,045 80,468 Research and experimental expenditures 963 — Accrued paid time off 708 750 Other 764 666 Gross deferred tax assets 91,459 94,161 Deferred tax liabilities: Property and equipment (21,539 ) (21,654 ) Finance lease assets (11,003 ) (10,627 ) Operating lease assets (70,517 ) (75,055 ) Leasehold improvements (2,095 ) (2,217 ) Other (732 ) (510 ) Gross deferred tax liabilities (105,886 ) (110,063 ) Net deferred tax liabilities $ (14,427 ) (15,902 ) |
Note 1 - Organization (Details
Note 1 - Organization (Details Textual) | Sep. 30, 2023 | Sep. 30, 2022 |
Number of Stores | 165 | 164 |
COLORADO | ||
Number of Stores | 44 | |
TEXAS | ||
Number of Stores | 23 | |
OREGON | ||
Number of Stores | 14 | |
ARIZONA | ||
Number of Stores | 12 | |
UTAH | ||
Number of Stores | 8 | |
KANSAS | ||
Number of Stores | 8 | |
MISSOURI | ||
Number of Stores | 7 | |
IOWA | ||
Number of Stores | 6 | |
NEW MEXICO | ||
Number of Stores | 6 | |
OKLAHOMA | ||
Number of Stores | 6 | |
IDAHO | ||
Number of Stores | 5 | |
WASHINGTON | ||
Number of Stores | 5 | |
MONTANA | ||
Number of Stores | 4 | |
ARKANSAS | ||
Number of Stores | 3 | |
NEBRASKA | ||
Number of Stores | 3 | |
NEVADA | ||
Number of Stores | 3 | |
NORTH DAKOTA | ||
Number of Stores | 3 | |
WYOMING | ||
Number of Stores | 2 | |
LOUISIANA | ||
Number of Stores | 1 | |
MINNESOTA | ||
Number of Stores | 1 | |
SOUTH DAKOTA | ||
Number of Stores | 1 |
Note 2 - Basis of Presentatio_2
Note 2 - Basis of Presentation and Summary of Significant Accounting Policies (Details Textual) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Number of Reportable Segments | 1 | ||
Accounts Receivable, Allowance for Credit Loss | $ 200 | $ 100 | |
Cash, Uninsured Amount | 17,200 | ||
Property, Plant and Equipment, Net | 169,060 | 157,179 | |
Operating Lease, Right-of-Use Asset | 287,941 | 307,132 | |
Finance Lease, Right-of-Use Asset, after Accumulated Amortization | 45,110 | 43,554 | |
Finite-Lived Intangible Assets Acquired | 8,500 | ||
Asset Impairment Charges | 1,300 | 2,900 | $ 1,100 |
Marketing and Advertising Expense | 6,900 | 6,200 | 6,300 |
Revenue from Contract with Customer, Excluding Assessed Tax | 1,140,568 | 1,089,625 | 1,055,516 |
Vendor Reimbursements [Member] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 7,100 | $ 6,300 | $ 5,400 |
Cost of Goods and Service, Product and Service Benchmark [Member] | Supplier Concentration Risk [Member] | Vendor and Subsidiaries [Member] | |||
Concentration Risk, Percentage | 68% | 68% |
Note 3 - Revenue Recognition (D
Note 3 - Revenue Recognition (Details Textual) - Gift Cards [Member] - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Contract with Customer, Liability, Total | $ 1.5 | $ 1.3 |
Contract with Customer, Liability, Revenue Recognized | $ 0.6 |
Note 3 - Revenue Recognition -
Note 3 - Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Net sales | $ 1,140,568 | $ 1,089,625 | $ 1,055,516 |
Net Sales, percent | 100% | 100% | 100% |
Grocery [Member] | |||
Net sales | $ 796,241 | $ 759,328 | $ 731,894 |
Net Sales, percent | 70% | 70% | 69% |
Dietary Supplements [Member] | |||
Net sales | $ 235,714 | $ 227,220 | $ 220,000 |
Net Sales, percent | 21% | 21% | 21% |
Manufactured Product, Other [Member] | |||
Net sales | $ 108,613 | $ 103,077 | $ 103,622 |
Net Sales, percent | 9% | 9% | 10% |
Note 4 - Earnings Per Share (De
Note 4 - Earnings Per Share (Details Textual) - shares | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Common Stock, Shares Authorized | 50,000,000 | 50,000,000 | |
Common Stock, Shares, Issued | 22,745,412 | 22,690,188 | |
Common Stock, Shares, Outstanding (in shares) | 22,738,915 | 22,690,188 | |
Treasury Stock, Common, Shares (in shares) | 6,497 | 0 | |
Preferred Stock, Shares Authorized | 10,000,000 | ||
Preferred Stock, Shares Issued (in shares) | 0 | ||
Preferred Stock, Shares Outstanding (in shares) | 0 | ||
Restricted Stock Units (RSUs) [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 62,752 | 43,542 | 166,362 |
Note 4 - Earnings Per Share - B
Note 4 - Earnings Per Share - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Net income | $ 23,243 | $ 21,365 | $ 20,581 |
Weighted average number of shares of common stock outstanding (in shares) | 22,725,088 | 22,666,773 | 22,591,816 |
Effect of dilutive securities (in shares) | 109,228 | 149,841 | 119,187 |
Weighted average number of shares of common stock outstanding including effect of dilutive securities (in shares) | 22,834,316 | 22,816,614 | 22,711,003 |
Basic earnings per share (in dollars per share) | $ 1.02 | $ 0.94 | $ 0.91 |
Diluted earnings per share (in dollars per share) | $ 1.02 | $ 0.94 | $ 0.91 |
Note 5 - Fair Value Measureme_2
Note 5 - Fair Value Measurements (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Long-Lived Assets | $ 5.9 | $ 7.4 | $ 3.3 |
Assets, Fair Value Disclosure | 4.6 | 4.5 | 2.1 |
Asset Impairment Charges | $ 1.3 | $ 2.9 | $ 1.1 |
Note 6 - Property and Equipme_3
Note 6 - Property and Equipment (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Interest Paid, Capitalized, Investing Activities | $ 318 | $ 313 | $ 194 |
Leasehold and Building Improvements and Fixtures and Equipment [Member] | |||
Property, Plant and Equipment, Additions | 500 | 400 | 500 |
Property, Plant and Equipment, Additions, Capitalized Internal Staff Compensation [Member] | |||
Depreciation | 700 | 600 | 600 |
Capital and Financing Lease Obligations [Member] | |||
Interest Paid, Capitalized, Investing Activities | $ 300 | $ 300 | $ 200 |
Note 6 - Property and Equipme_4
Note 6 - Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Property, plant, and equipment, gross | $ 428,688 | $ 400,737 |
Less accumulated depreciation and amortization | (259,628) | (243,558) |
Property and equipment, net | 169,060 | 157,179 |
Construction in Progress [Member] | ||
Property, plant, and equipment, gross | 15,221 | 8,651 |
Land [Member] | ||
Property, plant, and equipment, gross | $ 6,746 | 6,746 |
Building [Member] | ||
Property, plant, and equipment, gross | 43,010 | |
Building [Member] | Minimum [Member] | ||
Property, Plant and Equipment, Useful Life (Year) | 16 years | |
Building [Member] | Maximum [Member] | ||
Property, plant, and equipment, gross | $ 46,412 | |
Property, Plant and Equipment, Useful Life (Year) | 40 years | |
Leasehold Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment, Useful Life (Year) | 1 year | |
Leasehold Improvements [Member] | Maximum [Member] | ||
Property, plant, and equipment, gross | $ 2,112 | |
Land Improvements [Member] | ||
Property, plant, and equipment, gross | 1,822 | |
Land Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment, Useful Life (Year) | 1 year | |
Land Improvements [Member] | Maximum [Member] | ||
Property, plant, and equipment, gross | $ 173,407 | |
Property, Plant and Equipment, Useful Life (Year) | 24 years | |
Leasehold and Building Improvements [Member] | ||
Property, plant, and equipment, gross | 163,721 | |
Leasehold and Building Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment, Useful Life (Year) | 25 years | |
Furniture and Fixtures [Member] | ||
Property, plant, and equipment, gross | 151,242 | |
Furniture and Fixtures [Member] | Minimum [Member] | ||
Property, Plant and Equipment, Useful Life (Year) | 5 years | |
Furniture and Fixtures [Member] | Maximum [Member] | ||
Property, plant, and equipment, gross | $ 157,710 | |
Property, Plant and Equipment, Useful Life (Year) | 7 years | |
Computer Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment, Useful Life (Year) | 3 years | |
Computer Equipment [Member] | Maximum [Member] | ||
Property, plant, and equipment, gross | $ 27,080 | |
Computer Hardware and Software [Member] | ||
Property, plant, and equipment, gross | $ 25,545 | |
Computer Hardware and Software [Member] | Maximum [Member] | ||
Property, Plant and Equipment, Useful Life (Year) | 5 years |
Note 6 - Property and Equipme_5
Note 6 - Property and Equipment - Depreciation and Amortization Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Depreciation and amortization expense | $ 28,906 | $ 27,906 | $ 29,633 | |
Cost of Sales [Member] | ||||
Depreciation and amortization expense | 1,083 | 1,029 | 873 | |
Stores [Member] | ||||
Depreciation and amortization expense | 25,770 | 25,257 | 27,476 | |
General and Administrative Expense [Member] | ||||
Depreciation and amortization expense | 1,607 | 1,410 | 1,218 | |
Pre-opening Costs and Relocation Expenses [Member] | ||||
Depreciation and amortization expense | [1] | $ 446 | $ 210 | $ 66 |
[1]Pre-opening depreciation and amortization expenses for fiscal year 2021 have been reclassified from store expenses to be consistent with the presentation for fiscal years 2023 and 2022. |
Note 7 - Impairment of Long-l_2
Note 7 - Impairment of Long-lived Assets (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Property, Plant and Equipment, Net | $ 169,060 | $ 157,179 | |
Lease, Right-of-use Asset | 333,100 | 350,700 | |
Asset Impairment Charges | $ 1,300 | $ 2,900 | $ 1,100 |
Note 8 - Goodwill and Other I_3
Note 8 - Goodwill and Other Intangible Assets (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Amortization of Intangible Assets | $ 1.5 | $ 0.7 | $ 0.8 |
Capitalized Computer Software, Period Increase (Decrease), Total | $ 1.1 | $ 3.1 | $ 2 |
Note 8 - Goodwill and Other I_4
Note 8 - Goodwill and Other Intangible Assets - Summary of Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Less accumulated amortization | $ (5,326) | $ (3,827) |
Amortizable intangible assets, net | 7,881 | 8,138 |
Other intangibles in process | 643 | 369 |
Trademarks | 389 | 389 |
Deferred financing costs, net | 18 | 37 |
Total other intangibles, net | 8,931 | 8,933 |
Goodwill | 5,198 | 5,198 |
Total goodwill and other intangibles, net | $ 14,129 | 14,131 |
Minimum [Member] | ||
Indefinite Lived Asset, Useful Life (Year) | 3 years | |
Maximum [Member] | ||
Indefinite Lived Asset, Useful Life (Year) | 5 years | |
Other Intangible Assets [Member] | ||
Finite-lived intangibles, gross | $ 13,207 | $ 11,965 |
Other Intangible Assets [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets, Useful Life (Year) | 6 months | |
Other Intangible Assets [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets, Useful Life (Year) | 7 years |
Note 8 - Goodwill and Other I_5
Note 8 - Goodwill and Other Intangible Assets - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
2024 | $ 1,684 |
2025 | 1,659 |
2026 | 1,550 |
2027 | 1,314 |
2028 | 1,194 |
Thereafter | 1,141 |
Total amortization expense | $ 8,542 |
Note 9 - Accrued Expenses - Com
Note 9 - Accrued Expenses - Composition of Accrued Expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Payroll and employee-related expenses | $ 17,719 | $ 14,527 |
Accrued property, sales, and use tax payable | 9,844 | 8,450 |
Accrued marketing expenses | 466 | 153 |
Deferred revenue | 1,866 | 1,757 |
Other | 3,169 | 1,850 |
Total accrued expenses | $ 33,064 | $ 26,737 |
Note 10 - Debt (Details Textual
Note 10 - Debt (Details Textual) | 12 Months Ended | ||||
Nov. 16, 2023 USD ($) | Jan. 28, 2016 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Capital and Financing Lease Obligations Number of Leases | 24 | 21 | |||
Interest Expense, Debt, Excluding Amortization | $ 3,600,000 | $ 2,700,000 | $ 2,500,000 | ||
Interest Costs Capitalized | 300,000 | 300,000 | $ 200,000 | ||
Letter of Credit [Member] | |||||
Letters of Credit Outstanding, Amount | 1,500,000 | 1,100,000 | |||
The New Credit Facility [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1% | ||||
Debt Instrument, Periodic Payment, Principal | 400,000 | ||||
Line of Credit Facility, Dividend Restrictions, Maximum Amount | $ 15,000,000 | ||||
Line of Credit Facility, Remaining Borrowing Capacity | 48,500,000 | 48,900,000 | |||
Long-Term Debt, Total | 7,700,000 | ||||
The New Credit Facility [Member] | Prime Rate [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||||
The New Credit Facility [Member] | Term Loan [Member] | |||||
Debt Instrument, Face Amount | 35,000,000 | ||||
The New Credit Facility [Member] | Revolving Credit Facility [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 50,000,000 | ||||
Long-Term Line of Credit, Total | $ 0 | $ 0 | |||
The New Credit Facility [Member] | Revolving Credit Facility [Member] | Subsequent Event [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 75,000,000 | ||||
Debt Instrument, Periodic Payment, Principal | 2,500,000 | ||||
Line of Credit Facility, Dividend Restrictions, Maximum Amount | 15,000,000 | ||||
Debt Instrument, Maximum Dividend Payment Permitted | 25,000,000 | ||||
Line of Credit Facility, Restricted Payment Capacity | $ 2,500,000 | ||||
The New Credit Facility [Member] | Standby Letters of Credit [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000,000 |
Note 11 - Lease Commitments (De
Note 11 - Lease Commitments (Details Textual) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Operating Lease, Right-of-Use Asset | $ 287,941 | $ 307,132 | |
Operating Lease, Liability | 311,658 | ||
Operating Lease, Liability, Current | 34,850 | 34,735 | |
Operating Lease, Expense | 58,400 | 56,000 | $ 55,300 |
Payments for Lease Termination Fee | 200 | ||
Operating Lease, Right-of-Use Asset, Write-off | 100 | ||
Operating Lease, Liability, Write-off | 200 | ||
Early Lease Relocation Expense | 100 | ||
Finance Lease, Impairment Loss | 1,500 | ||
Decrease in Operating Right-of-use Asset for Assets Transferred in Property and Equipment | 1,400 | ||
Lessee, Operating Lease, Lease Not yet Commenced, Minimum Lease Payments | 2,400 | ||
Pre-Opening Costs and Relocation Expenses for Stores Not Yet Opened Rent Expense | 300 | 300 | $ 200 |
Related Party [Member] | |||
Operating Lease, Right-of-Use Asset | 8,400 | ||
Operating Lease, Liability | 8,500 | ||
Operating Lease, Liability, Current | 900 | ||
Operating Lease, Expense | $ 1,200 | $ 1,300 | |
Chalet [Member] | |||
Number of Operating Leases | 4 | ||
Isely Family Land Trust LLC [Member] | |||
Number of Operating Leases | 1 | ||
FTVC, LLC [Member] | |||
Number of Operating Leases | 1 | ||
Minimum [Member] | |||
Lessee, Operating Lease, Term of Contract | 10 years | ||
Lessee, Operating Lease, Renewal Term | 5 years | ||
Maximum [Member] | |||
Lessee, Operating Lease, Term of Contract | 25 years | ||
Lessee, Operating Lease, Renewal Term | 10 years |
Note 11- Lease Commitments - Le
Note 11- Lease Commitments - Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Total lease cost | $ 60,516 | $ 58,505 | $ 54,772 | |
Cost of Sales [Member] | ||||
Operating lease cost | 43,913 | 42,979 | 42,652 | |
Variable lease cost | [1] | 6,429 | 5,851 | 5,611 |
Store Expenses [Member] | ||||
Operating lease cost | 319 | 337 | 319 | |
Depreciation of lease assets | 3,746 | 3,832 | 3,618 | |
Short-term lease cost | 3,071 | 2,900 | 326 | |
Sublease income | (323) | (302) | (313) | |
General and Administrative Expense [Member] | ||||
Operating lease cost | 327 | 309 | 305 | |
Pre-opening Costs and Relocation Expenses [Member] | ||||
Operating lease cost | 269 | 275 | 233 | |
Depreciation of lease assets | [2] | 446 | 210 | 68 |
Interest on lease liabilities | [2] | 482 | 218 | 22 |
Interest Expense [Member] | ||||
Interest on lease liabilities | $ 1,837 | $ 1,896 | $ 1,931 | |
[1]Immaterial balances related to corporate headquarters and distribution center are included in administrative expenses and store expenses, respectively.[2]Pre-opening expenses for fiscal year 2021 have been reclassified from store expenses and interest expense, net to be consistent with the presentation for fiscal years 2023 and 2022. |
Note 11 - Lease Commitments - A
Note 11 - Lease Commitments - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Operating cash flows from operating leases | $ 45,661 | $ 41,050 | $ 44,473 |
Operating leases (Year) | 10 years 3 months 18 days | 10 years 8 months 12 days | |
Finance leases (Year) | 14 years 2 months 12 days | 14 years 2 months 12 days | |
Operating cash flows from finance leases | $ 2,320 | $ 2,114 | 1,976 |
Operating leases | 3.80% | 3.70% | |
Financing cash flows from finance leases | $ 2,779 | $ 2,719 | 2,823 |
Finance leases | 4.90% | 4.80% | |
Operating leases | $ 15,274 | $ 24,429 | 9,216 |
Finance leases | $ 5,724 | $ 9,625 | $ 3,025 |
Note 11 - Lease Commitments - F
Note 11 - Lease Commitments - Future Lease Payments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Lessee, Operating Lease, Liability, to be Paid, Year One | $ 45,966 | |
Finance Lease, Liability, to be Paid, Year One | 5,961 | |
Lessee, Operating and Finance Lease, Liability, Payments, Due Next Twelve Months | 51,927 | |
Lessee, Operating Lease, Liability, to be Paid, Year Two | 44,628 | |
Finance Lease, Liability, to be Paid, Year Two | 6,051 | |
Lessee, Operating and Finance Lease, Liability, Payments, Due Year Two | 50,679 | |
Lessee, Operating Lease, Liability, to be Paid, Year Three | 41,777 | |
Finance Lease, Liability, to be Paid, Year Three | 6,093 | |
Lessee, Operating and Finance Lease, Liability, Payments, Due Year Three | 47,870 | |
Lessee, Operating Lease, Liability, to be Paid, Year Four | 39,983 | |
Finance Lease, Liability, to be Paid, Year Four | 6,138 | |
Lessee, Operating and Finance Lease, Liability, Payments, Due Year Four | 46,121 | |
Lessee, Operating Lease, Liability, to be Paid, Year Five | 37,151 | |
Finance Lease, Liability, to be Paid, Year Five | 5,053 | |
Lessee, Operating and Finance Lease, Liability, Payments, Due Year Five | 42,204 | |
Thereafter, operating lease | 170,998 | |
Thereafter, finance lease | 40,841 | |
Thereafter | 211,839 | |
Total future undiscounted operating lease payments | 380,503 | |
Total future undiscounted finance lease payments | 70,137 | |
Total future undiscounted lease payments | 450,640 | |
Less imputed interest, operating lease | (68,845) | |
Less imputed interest, finance lease | (19,305) | |
Less imputed interest | (88,150) | |
Total reported operating lease liability | 311,658 | |
Total reported finance lease liability | 50,832 | |
Total reported lease liability | 362,490 | |
Less current portion, operating lease | (34,850) | $ (34,735) |
Less current portion, finance lease | (3,690) | (3,223) |
Less current portion | (38,540) | |
Operating lease obligations, net of current portion | 276,808 | 295,064 |
Finance lease obligations, net of current portion | 47,142 | $ 44,664 |
Noncurrent lease liability | $ 323,950 |
Note 11 - Lease Commitments -_2
Note 11 - Lease Commitments - Future Minimum Annual Payments (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Operating and Financing Leases, Future Minimum Sublease Rentals, Next Twelve Months | $ (353) |
Operating and Financing Leases, Future Minimum Payments Due, Next Twelve Months, Net | 51,574 |
Operating and Financing Leases, Future Minimum Sublease Rentals, Due in Two Years | (277) |
Operating and Financing Leases, Future Minimum Payments, Due in Two Years, Net | 50,402 |
Operating and Financing Leases, Future Minimum Sublease Rentals, Due in Three Years | (279) |
Operating and Financing Leases, Future Minimum Payments, Due in Three Years, Net | 47,591 |
Operating and Financing Leases, Future Minimum Sublease Rentals, Due in Four Years | (192) |
Operating and Financing Leases, Future Minimum Payments, Due in Four Years, Net | 45,929 |
Operating and Financing Leases, Future Minimum Sublease Rentals, Due in Five Years | (85) |
Operating and Financing Leases, Future Minimum Payments, Due in Five Years, Net | 42,119 |
Thereafter, sublease | (67) |
Thereafter | 211,772 |
Total sublease payments | (1,253) |
Total payments | 449,387 |
Nonrelated Party [Member] | |
Lessee, Operating and Finance Lease, Liability, Payments, Due Next Twelve Months, Before Sublease Rental Income | 50,709 |
Lessee, Operating and Finance Lease, Liability, Payments, Due Year Two, Before Sublease Rental Income | 49,461 |
Lessee, Operating and Finance Lease, Liability, Payments, Due Year Three, Before Sublease Rental Income | 46,730 |
Lessee, Operating and Finance Lease, Liability, Payments, Due Year Four, Before Sublease Rental Income | 45,275 |
Lessee, Operating and Finance Lease, Liability, Payments, Due Year Five, Before Sublease Rental Income | 41,474 |
Thereafter, leases | 205,755 |
Total lease payments | 439,404 |
Related Party [Member] | |
Lessee, Operating and Finance Lease, Liability, Payments, Due Next Twelve Months, Before Sublease Rental Income | 1,218 |
Lessee, Operating and Finance Lease, Liability, Payments, Due Year Two, Before Sublease Rental Income | 1,218 |
Lessee, Operating and Finance Lease, Liability, Payments, Due Year Three, Before Sublease Rental Income | 1,140 |
Lessee, Operating and Finance Lease, Liability, Payments, Due Year Four, Before Sublease Rental Income | 846 |
Lessee, Operating and Finance Lease, Liability, Payments, Due Year Five, Before Sublease Rental Income | 730 |
Thereafter, leases | 6,084 |
Total lease payments | $ 11,236 |
Note 12 - Share-based Compens_3
Note 12 - Share-based Compensation (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Mar. 31, 2019 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Jul. 17, 2012 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized | 1,090,151 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Additional Shares Authorized | 600,000 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period | 5 years | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant | 253,544 | ||||
Share-Based Payment Arrangement, Expense, Tax Benefit | $ 100,000 | $ 100,000 | $ 100,000 | ||
Cost of Goods Sold and Occupancy Costs [Member] | |||||
Share-Based Payment Arrangement, Expense | 1,400,000 | 1,200,000 | 900,000 | ||
Certain Employees [Member] | |||||
Share-Based Payment Arrangement, Expense | 900,000 | 800,000 | 500,000 | ||
Executive Officer [Member] | |||||
Share-Based Payment Arrangement, Expense | 300,000 | 200,000 | 200,000 | ||
Board [Member] | |||||
Share-Based Payment Arrangement, Expense | 200,000 | $ 200,000 | $ 200,000 | ||
Restricted Stock Units (RSUs) [Member] | |||||
Share-Based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | $ 2,100,000 | ||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years | ||||
Restricted Stock Units (RSUs) [Member] | Board [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award Equivalent Value of Shares Authorized to Grant | $ 60,000 | ||||
Restricted Stock Units (RSUs) [Member] | Minimum [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period | 5 years |
Note 12 - Share-based Compens_4
Note 12 - Share-based Compensation - Changes in Non-vested RSUs Outstanding (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Non-vested as of September 30, 2019 (in shares) | 330,794 | 388,139 |
Non-vested as of September 30, 2019 (in dollars per share) | $ 10.68 | $ 10.38 |
Granted (in shares) | 195,067 | 45,542 |
Granted, weighted average grant date fair value (in dollars per share) | $ 11.74 | $ 12.87 |
Forfeited (in shares) | (17,213) | (6,168) |
Forfeited, weighted average grant date fair value (in dollars per share) | $ 11.16 | $ 9.93 |
Vested (in shares) | (93,698) | (96,719) |
Vested (in dollars per share) | $ 10.41 | $ 10.29 |
Non-vested as of September 30, 2020 (in shares) | 414,950 | 330,794 |
Non-vested as of September 30, 2020 (in dollars per share) | $ 11.28 | $ 10.68 |
Note 13 - Stockholders' Equit_2
Note 13 - Stockholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | |||
Nov. 16, 2023 | May 31, 2016 | Dec. 01, 2023 | Dec. 31, 2021 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Stock Repurchase Program, Period in Force (Year) | 2 years | ||||||
Stock Repurchase Program, Authorized Amount | $ 10 | ||||||
Stock Issued During Period, Shares, Treasury Stock Reissued | 11,501 | 0 | 0 | ||||
Stock Issued During Period, Value, Treasury Stock Reissued | $ 0.1 | ||||||
Treasury Stock, Common, Shares (in shares) | 6,497 | 0 | |||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 8.1 | ||||||
Quarterly Cash dividend [Member] | |||||||
Common Stock, Dividends, Per Share, Declared (in dollars per share) | $ 0.1 | $ 0.1 | $ 0.07 | ||||
Special Cash Dividend [Member] | |||||||
Common Stock, Dividends, Per Share, Declared (in dollars per share) | $ 2 | ||||||
Subsequent Event [Member] | |||||||
Stock Repurchased During Period, Shares (in shares) | 0 | ||||||
Subsequent Event [Member] | Quarterly Cash dividend [Member] | |||||||
Common Stock, Dividends, Per Share, Declared (in dollars per share) | $ 0.1 | ||||||
Subsequent Event [Member] | Special Cash Dividend [Member] | |||||||
Common Stock, Dividends, Per Share, Declared (in dollars per share) | $ 1 |
Note 13 - Stockholders' Equit_3
Note 13 - Stockholders' Equity - Share Repurchase Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Number of common shares acquired (in shares) | 17,998 | 0 | 0 |
Average price per common share acquired (including commissions) (in dollars per share) | $ 10.07 | $ 0 | $ 0 |
Total cost of common shares acquired | $ 181 | $ 0 | $ 0 |
Note 14 - Related Party Trans_2
Note 14 - Related Party Transactions (Details Textual) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Chalet [Member] | |||
Number of Operating Leases | 4 | ||
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 | $ 0.9 | $ 0.9 | $ 1 |
Isely Family Land Trust LLC [Member] | |||
Number of Operating Leases | 1 | ||
Related Party Transaction, Expenses from Transactions with Related Party | $ 0.3 | 0.3 | 0.3 |
FTVC, LLC [Member] | |||
Number of Operating Leases | 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 |
Note 15 - Income Taxes (Details
Note 15 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Unrecognized Tax Benefits | $ 0 | $ 0 | |
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | |||
Operating Loss Carryforwards Utilized | $ 100 | $ 100 | $ 100 |
Note 15 - Income Taxes - Compon
Note 15 - Income Taxes - Components of the Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Current federal income tax expense | $ 5,291 | $ 4,667 | $ 3,859 |
Current state income tax expense | 1,311 | 1,143 | 752 |
Total current income tax expense | 6,602 | 5,810 | 4,611 |
Deferred federal income tax expense | (1,334) | 559 | 836 |
Deferred state income tax expense | (141) | 50 | 28 |
Total deferred income tax expense | (1,475) | 609 | 864 |
Total provision for income taxes | $ 5,127 | $ 6,419 | $ 5,475 |
Note 15 - Income Taxes - Reconc
Note 15 - Income Taxes - Reconciliation Between the U.S. Federal Statutory Income Tax Rate and the Company's Effective Tax Rate (Details) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statutory tax rate | 21% | 21% | 21% |
State income taxes, net of federal income tax expense | 3.10% | 3.40% | 3.60% |
Enhanced food deduction | (3.10%) | (0.50%) | (0.50%) |
Deferred tax liability adjustment | 0% | 1% | 0.80% |
Other, net | (2.90%) | (1.80%) | (3.90%) |
Effective tax rate | 18.10% | 23.10% | 21% |
Note 15 - Income Taxes - Deferr
Note 15 - Income Taxes - Deferred Taxes (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Long-term assets | $ 0 | $ 0 |
Long-term liabilities | (14,427) | (15,902) |
Net deferred tax liabilities | $ 14,427 | $ 15,902 |
Note 15 - Income Taxes - Tax Ef
Note 15 - Income Taxes - Tax Effects of Temporary Differences That Give Rise to Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Deferred tax assets: | ||
Trademarks | $ 576 | $ 593 |
Finance lease obligations | 12,403 | 11,684 |
Operating lease obligations | 76,045 | 80,468 |
Research and experimental expenditures | 963 | 0 |
Accrued paid time off | 708 | 750 |
Other | 764 | 666 |
Gross deferred tax assets | 91,459 | 94,161 |
Deferred tax liabilities: | ||
Property and equipment | (21,539) | (21,654) |
Finance lease assets | (11,003) | (10,627) |
Operating lease assets | (70,517) | (75,055) |
Leasehold improvements | (2,095) | (2,217) |
Other | (732) | (510) |
Gross deferred tax liabilities | (105,886) | (110,063) |
Net deferred tax liabilities | $ (14,427) | $ (15,902) |
Note 16 - Defined Contributio_2
Note 16 - Defined Contribution Plan (Details Textual) - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 25% | ||
Defined Contribution Plan Employer Maximum Discretionary Contribution Amount per Employee | $ 2,500 | ||
Defined Contribution Plan, Cost | $ 900,000 | $ 1,100,000 | $ 1,200,000 |
Note 17 - Segment Reporting (De
Note 17 - Segment Reporting (Details Textual) | 12 Months Ended |
Sep. 30, 2023 | |
Number of Reportable Segments | 1 |
Note 19 - Subsequent Events (De
Note 19 - Subsequent Events (Details Textual) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Nov. 16, 2023 | Jan. 28, 2016 | Dec. 31, 2021 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
The New Credit Facility [Member] | ||||||
Line of Credit Facility, Dividend Restrictions, Maximum Amount | $ 15 | |||||
The New Credit Facility [Member] | Revolving Credit Facility [Member] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50 | |||||
Special Cash Dividend [Member] | ||||||
Common Stock, Dividends, Per Share, Declared (in dollars per share) | $ 2 | |||||
Quarterly Cash dividend [Member] | ||||||
Common Stock, Dividends, Per Share, Declared (in dollars per share) | $ 0.1 | $ 0.1 | $ 0.07 | |||
Subsequent Event [Member] | The New Credit Facility [Member] | Revolving Credit Facility [Member] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 75 | |||||
Debt Instrument, Maximum Dividend Payment Permitted | 25 | |||||
Line of Credit Facility, Restricted Payment Capacity | 2.5 | |||||
Line of Credit Facility, Dividend Restrictions, Maximum Amount | $ 15 | |||||
Subsequent Event [Member] | Special Cash Dividend [Member] | ||||||
Common Stock, Dividends, Per Share, Declared (in dollars per share) | $ 1 | |||||
Subsequent Event [Member] | Quarterly Cash dividend [Member] | ||||||
Common Stock, Dividends, Per Share, Declared (in dollars per share) | $ 0.1 |