Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2016 | Dec. 01, 2016 | Mar. 31, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Sep. 30, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | HZO | ||
Entity Registrant Name | MARINEMAX INC | ||
Entity Central Index Key | 1,057,060 | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 26,048,059 | ||
Entity Public Float | $ 444,820,459 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 38,585 | $ 32,611 |
Accounts receivable, net | 24,583 | 18,474 |
Inventories, net | 321,978 | 273,875 |
Prepaid expenses and other current assets | 5,965 | 10,845 |
Total current assets | 391,111 | 335,805 |
Property and equipment, net | 121,353 | 98,987 |
Other long-term assets, net | 13,149 | 5,313 |
Deferred tax assets, net | 21,075 | 27,517 |
Total assets | 546,688 | 467,622 |
CURRENT LIABILITIES: | ||
Accounts payable | 9,597 | 13,510 |
Customer deposits | 30,129 | 12,731 |
Accrued expenses | 25,603 | 19,964 |
Short-term borrowings | 166,550 | 137,186 |
Total current liabilities | 231,879 | 183,391 |
Long-term liabilities | 2,336 | 586 |
Total liabilities | 234,215 | 183,977 |
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERS' EQUITY: | ||
Preferred stock, $.001 par value, 1,000,000 shares authorized, none issued or outstanding as of September 30, 2015 and 2016 | ||
Common stock, $.001 par value; 40,000,000 shares authorized, 25,562,994 and 25,977,632 shares issued and 24,199,661 and 24,285,616 shares outstanding as of September 30, 2015 and 2016, respectively | 26 | 26 |
Additional paid-in capital | 241,058 | 234,478 |
Retained earnings | 103,212 | 75,433 |
Treasury stock, at cost, 1,363,333 and 1,692,016 shares held as of September 30, 2015 and 2016, respectively | (31,823) | (26,292) |
Total shareholders' equity | 312,473 | 283,645 |
Total liabilities and shareholders' equity | $ 546,688 | $ 467,622 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2016 | Sep. 30, 2015 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 25,977,632 | 25,562,994 |
Common stock, shares outstanding | 24,285,616 | 24,199,661 |
Treasury stock, shares | 1,692,016 | 1,363,333 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | |||
Revenue | $ 942,050 | $ 751,370 | $ 624,692 |
Cost of sales | 716,022 | 566,603 | 462,872 |
Gross profit | 226,028 | 184,767 | 161,820 |
Selling, general, and administrative expenses | 185,776 | 159,435 | 146,433 |
Income from operations | 40,252 | 25,332 | 15,387 |
Interest expense | 5,462 | 4,454 | 4,024 |
Income before income tax provision (benefit) | 34,790 | 20,878 | 11,363 |
Income tax provision (benefit) | 12,208 | (27,414) | 91 |
Net income | $ 22,582 | $ 48,292 | $ 11,272 |
Basic net income per common share | $ 0.93 | $ 1.97 | $ 0.47 |
Diluted net income per common share | $ 0.91 | $ 1.92 | $ 0.46 |
Weighted average number of common shares used in computing net income per common share: | |||
Basic | 24,203,947 | 24,466,243 | 23,916,238 |
Diluted | 24,820,847 | 25,102,289 | 24,655,262 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] |
Beginning Balance at Sep. 30, 2013 | $ 221,812 | $ 24 | $ 221,729 | $ 15,869 | $ (15,810) |
Beginning Balance, Shares at Sep. 30, 2013 | 24,336,495 | ||||
Net income | 11,272 | 11,272 | |||
Shares issued pursuant to employee stock purchase plan | 574 | 574 | |||
Shares issued pursuant to employee stock purchase plan, Shares | 55,333 | ||||
Shares issued upon vesting of equity awards, net of minimum tax withholding | (541) | (541) | |||
Shares issued upon vesting of equity awards, net of minimum tax withholding, Shares | 88,729 | ||||
Shares issued upon exercise of stock options | 3,592 | $ 1 | 3,591 | ||
Shares issued upon exercise of stock options, Shares | 512,147 | ||||
Stock-based compensation | 2,586 | 2,586 | |||
Stock-based compensation, Shares | 10,103 | ||||
Ending Balance at Sep. 30, 2014 | 239,295 | $ 25 | 227,939 | 27,141 | (15,810) |
Ending Balance, Shares at Sep. 30, 2014 | 25,002,807 | ||||
Net income | 48,292 | 48,292 | |||
Purchase of treasury stock | (10,482) | (10,482) | |||
Shares issued pursuant to employee stock purchase plan | 669 | 669 | |||
Shares issued pursuant to employee stock purchase plan, Shares | 48,987 | ||||
Shares issued upon vesting of equity awards, net of minimum tax withholding, Shares | 3,340 | ||||
Shares issued upon exercise of stock options | 3,046 | $ 1 | 3,045 | ||
Shares issued upon exercise of stock options, Shares | 477,631 | ||||
Stock-based compensation | 3,018 | 3,018 | |||
Stock-based compensation, Shares | 30,229 | ||||
Stock option tax benefit, net of shortfalls | (193) | (193) | |||
Ending Balance at Sep. 30, 2015 | $ 283,645 | $ 26 | 234,478 | 75,433 | (26,292) |
Ending Balance, Shares at Sep. 30, 2015 | 25,562,994 | 25,562,994 | |||
Net income | $ 22,582 | 22,582 | |||
Adjustment to adopt ASU 2016-09 | 5,197 | 5,197 | |||
Purchase of treasury stock | (5,531) | (5,531) | |||
Shares issued pursuant to employee stock purchase plan | 823 | 823 | |||
Shares issued pursuant to employee stock purchase plan, Shares | 68,495 | ||||
Shares issued upon vesting of equity awards, net of minimum tax withholding | (362) | (362) | |||
Shares issued upon vesting of equity awards, net of minimum tax withholding, Shares | 36,546 | ||||
Shares issued upon exercise of stock options | 1,878 | 1,878 | |||
Shares issued upon exercise of stock options, Shares | 272,510 | ||||
Stock-based compensation | 4,241 | 4,241 | |||
Stock-based compensation, Shares | 37,087 | ||||
Ending Balance at Sep. 30, 2016 | $ 312,473 | $ 26 | $ 241,058 | $ 103,212 | $ (31,823) |
Ending Balance, Shares at Sep. 30, 2016 | 25,977,632 | 25,977,632 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 22,582 | $ 48,292 | $ 11,272 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 7,964 | 7,858 | 7,281 |
Deferred income tax provision (benefit) | 11,639 | (27,710) | |
(Gain) loss on sale of property and equipment and assets held for sale | 51 | (1,846) | (821) |
Gain on insurance settlements | (235) | ||
Stock-based compensation expense, net | 4,241 | 3,018 | 2,586 |
(Increase) Decrease in — | |||
Accounts receivable, net | (5,436) | (5,927) | 6,005 |
Inventories, net | (32,417) | (29,724) | (16,110) |
Prepaid expenses and other assets | (1,517) | 738 | (307) |
(Decrease) Increase in — | |||
Accounts payable | (4,278) | 5,687 | 612 |
Customer deposits | 16,625 | 1,752 | 1,637 |
Accrued expenses and long-term liabilities | 3,409 | 931 | (1,111) |
Net cash provided by operating activities | 22,863 | 3,069 | 10,809 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of property and equipment | (12,913) | (9,746) | (9,194) |
Purchase of note receivable | (6,020) | ||
Net cash used in acquisition of businesses | (17,062) | ||
Proceeds from insurance settlements | 756 | ||
Proceeds from sale of property and equipment | 228 | 5,995 | 1,612 |
Net cash used in investing activities | (29,747) | (3,751) | (12,846) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Net borrowings on short-term borrowings | 15,768 | 12,762 | 1,954 |
Net proceeds from issuance of common stock under incentive compensation, and employee purchase plans | 2,701 | 3,715 | 4,166 |
Payments on tax withholdings for equity awards | (80) | (541) | |
Purchase of treasury stock | (5,531) | (10,482) | |
Net cash provided by financing activities | 12,858 | 5,454 | 6,120 |
NET INCREASE IN CASH AND CASH EQUIVALENTS: | 5,974 | 4,772 | 4,083 |
CASH AND CASH EQUIVALENTS, beginning of period | 32,611 | 27,839 | 23,756 |
CASH AND CASH EQUIVALENTS, end of period | 38,585 | 32,611 | 27,839 |
Cash paid for: | |||
Interest | 6,002 | 4,516 | 3,932 |
Income taxes | 855 | 88 | 58 |
Non-cash items: | |||
Exchange of note receivable for property and equipment | 6,020 | ||
Real estate assets classified as held for sale | $ 6,650 | ||
Held for sale assets classified as property and equipment | 3,800 | ||
Accrued tax withholdings upon vesting of equity awards | 282 | $ 541 | |
Contingent consideration liabilities from acquisitions | 3,307 | ||
Adjustment to retained earnings and deferred tax assets to adopt ASU 2016-09 | 5,197 | ||
Exchange of equity interest for controlling interest | $ 2,860 |
Company Background and Basis of
Company Background and Basis of Presentation | 12 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Company Background and Basis of Presentation | 1. COMPANY BACKGROUND AND BASIS OF PRESENTATION: We are the largest recreational boat retailer in the United States. We engage primarily in the retail sale, brokerage, and service of new and used boats, motors, trailers, marine parts and accessories and offer slip and storage accommodations in certain locations. In addition, we arrange related boat financing, insurance, and extended service contracts. We also offer the charter of power and sailing yachts in the British Virgin Islands. As of September 30, 2016, we operated through 56 retail locations in 16 states, consisting of Alabama, California, Connecticut, Florida, Georgia, Maryland, Massachusetts, Minnesota, Missouri, New Jersey, New York, North Carolina, Ohio, Oklahoma, Rhode Island, and Texas. Our MarineMax Vacations operations maintain a facility in Tortola, British Virgin Islands. We are the nation’s largest retailer of Sea Ray and Boston Whaler recreational boats and yachts which are manufactured by Brunswick Corporation (“Brunswick”). Sales of new Brunswick boats accounted for approximately 40% of our revenue in fiscal 2016. Sales of new Sea Ray and Boston Whaler boats, both divisions of Brunswick, accounted for approximately 24% and 14%, respectively, of our revenue in fiscal 2016. Brunswick is a world leading manufacturer of marine products and marine engines. We believe we represented approximately 53% of Brunswick’s Sea Ray boat sales, during our fiscal 2016. We have dealership agreements with Sea Ray, Boston Whaler, Meridian, and Mercury Marine, all subsidiaries or divisions of Brunswick. We also have dealer agreements with Italy-based Azimut-Benetti Group’s product line for Azimut Yachts. These agreements allow us to purchase, stock, sell, and service these manufacturers’ boats and products. These agreements also allow us to use these manufacturers’ names, trade symbols, and intellectual properties in our operations. We have multi-year dealer agreements with Brunswick covering Sea Ray products that appoint us as the exclusive dealer of Sea Ray boats in our geographic markets. We are the exclusive dealer for Boston Whaler through multi-year dealer agreements for many of our geographic markets. In addition, we are the exclusive dealer for Azimut Yachts for the entire United States through a multi-year dealer agreement. Sales of new Azimut boats accounted for approximately 11% of our revenue in fiscal 2016. We believe non-Brunswick brands offer a migration for our existing customer base or fill a void in our product offerings, and accordingly, do not compete with the business generated from our other prominent brands. As is typical in the industry, we deal with most of our manufacturers, other than Sea Ray, Boston Whaler, Meridian, and Azimut Yachts, under renewable annual dealer agreements, each of which gives us the right to sell various makes and models of boats within a given geographic region. Any change or termination of these agreements, or the agreements discussed above, for any reason, or changes in competitive, regulatory, or marketing practices, including rebate or incentive programs, could adversely affect our results of operations. Although there are a limited number of manufacturers of the type of boats and products that we sell, we believe that adequate alternative sources would be available to replace any manufacturer other than Sea Ray and Azimut as a product source. These alternative sources may not be available at the time of any interruption, and alternative products may not be available at comparable terms, which could affect operating results adversely. General economic conditions and consumer spending patterns can negatively impact our operating results. Unfavorable local, regional, national, or global economic developments or uncertainties regarding future economic prospects could reduce consumer spending in the markets we serve and adversely affect our business. Economic conditions in areas in which we operate dealerships, particularly Florida in which we generated approximately 52%, 53%, and 55% of our revenue during fiscal 2014, 2015, and 2016, respectively, can have a major impact on our operations. Local influences, such as corporate downsizing, military base closings, inclement weather such as Hurricane Sandy, environmental conditions, and specific events, such as the BP oil spill in the Gulf of Mexico in 2010, also could adversely affect, and in certain instances have adversely affected, our operations in certain markets. In an economic downturn, consumer discretionary spending levels generally decline, at times resulting in disproportionately large reductions in the sale of luxury goods. Consumer spending on luxury goods also may decline as a result of lower consumer confidence levels, even if prevailing economic conditions are favorable. As a result, an economic downturn could impact us more than certain of our competitors due to our strategic focus on a higher end of our market. Although we have expanded our operations during periods of stagnant or modestly declining industry trends, the cyclical nature of the recreational boating industry or the lack of industry growth may adversely affect our business, financial condition, and results of operations. Any period of adverse economic conditions or low consumer confidence has a negative effect on our business. Lower consumer spending resulting from a downturn in the housing market and other economic factors adversely affected our business in fiscal 2007, and continued weakness in consumer spending and depressed economic conditions had a substantial negative effect on our business and industry for several years after fiscal 2007. These conditions caused us to substantially reduce our acquisition program, delay new store openings, reduce our inventory purchases, engage in inventory reduction efforts, close a number of our retail locations, reduce our headcount, and amend and replace our credit facility. Acquisitions and new store openings remain important strategies to our company, and we plan to accelerate our growth through these strategies as economic conditions continue to improve. However, we cannot predict the length of unfavorable economic or industry conditions or the extent to which they will continue to adversely affect our operating results nor can we predict the effectiveness of the measures we have taken to address this environment. In order to provide comparability between periods presented, certain amounts have been reclassified from the previously reported consolidated financial statements to conform to the consolidated financial statement presentation of the current period. The consolidated financial statements include our accounts and the accounts of our subsidiaries, all of which are wholly owned. All significant intercompany transactions and accounts have been eliminated. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. SIGNIFICANT ACCOUNTING POLICIES: Cash and Cash Equivalents We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. Vendor Consideration Received We account for consideration received from our vendors in accordance with FASB Accounting Standards Codification 605-50, “Revenue Recognition - Customer Payments and Incentives” (“ASC 605-50”). ASC 605-50 requires us to classify interest assistance received from manufacturers as a reduction of inventory cost and related cost of sales as opposed to netting the assistance against our interest expense incurred with our lenders. Pursuant to ASC 605-50, amounts received by us under our co-op assistance programs from our manufacturers are netted against related advertising expenses. Further pursuant to ASC 605-50, manufacturer incentives based upon cumulative volume of sales and purchases are recorded when the amounts are probable and reasonably estimable. Inventories Inventory costs consist of the amount paid to acquire inventory, net of vendor consideration and purchase discounts, the cost of equipment added, reconditioning costs, and transportation costs relating to acquiring inventory for sale. We state new and used boat, motor, and trailer inventories at the lower of cost, determined on a specific-identification basis, or market. We state parts and accessories at the lower of cost, determined on an average cost basis, or market. We utilize our historical experience, the aging of the inventories, and our consideration of current market trends as the basis for determining a lower of cost or market valuation allowance. As of September 30, 2015 and 2016, our lower of cost or market valuation allowance for new and used boat, motor, and trailer inventories was $1.8 million and $1.0 million, respectively. If events occur and market conditions change, causing the fair value to fall below carrying value, the lower of cost or market valuation allowance could increase. Property and Equipment We record property and equipment at cost, net of accumulated depreciation, and depreciate property and equipment over their estimated useful lives using the straight-line method. We capitalize and amortize leasehold improvements over the lesser of the life of the lease or the estimated useful life of the asset. Useful lives for purposes of computing depreciation are as follows: Years Buildings and improvements 5-40 Machinery and equipment 3-10 Furniture and fixtures 5-10 Vehicles 3-5 We remove the cost of property and equipment sold or retired and the related accumulated depreciation from the accounts at the time of disposition and include any resulting gain or loss in the consolidated statements of operations. We charge maintenance, repairs, and minor replacements to operations as incurred, and we capitalize and amortize major replacements and improvements over their useful lives. Goodwill We account for goodwill in accordance with FASB Accounting Standards Codification 350, “Intangibles - Goodwill and Other” (“ASC 350”), which provides that the excess of cost over net assets of businesses acquired is recorded as goodwill. On April 15, 2016 we purchased Russo Marine, a privately owned boat dealer in the Northeast United States with locations in Massachusetts and Rhode Island, resulting in the recording of $8.8 million in goodwill. In total, current and previous acquisitions have resulted in the recording of $9.9 million in goodwill. In accordance with ASC 350, we review goodwill for impairment at least annually and whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Our annual impairment test is performed during the fourth fiscal quarter. If the carrying amount of goodwill exceeds its fair value we would recognize an impairment loss in accordance with ASC 350. As of September 30, 2016, and based upon our most recent analysis, we determined through our qualitative assessment that it is not “more likely than not” that the fair values of our reporting units are less than their carrying values. As a result, we were not required to perform the two-step goodwill impairment test. Impairment of Long-Lived Assets FASB Accounting Standards Codification 360-10-40, “Property, Plant, and Equipment - Impairment or Disposal of Long-Lived Assets” (“ASC 360-10-40”), requires that long-lived assets, such as property and equipment and purchased intangibles subject to amortization, be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of the asset is measured by comparison of its carrying amount to undiscounted future net cash flows the asset is expected to generate. If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the asset exceeds its fair market value. Estimates of expected future cash flows represent our best estimate based on currently available information and reasonable and supportable assumptions. Any impairment recognized in accordance with ASC 360-10-40 is permanent and may not be restored. The analysis is performed at a regional level for indicators of permanent impairment given the geographical interdependencies amongst our locations. Based upon our most recent analysis, which excludes fixed assets classified as held for sale which are recorded at fair value, we believe no further impairment of long-lived assets existed as of September 30, 2016. Customer Deposits Customer deposits primarily include amounts received from customers toward the purchase of boats. We recognize these deposits as revenue at the time of delivery or acceptance by the customers. Insurance We retain varying levels of risk relating to the insurance policies we maintain, most significantly workers’ compensation insurance and employee medical benefits. We are responsible for the claims and losses incurred under these programs, limited by per occurrence deductibles and paid claims or losses up to pre-determined maximum exposure limits. Our third-party insurance carriers pay any losses above the pre-determined exposure limits. We estimate our liability for incurred but not reported losses using our historical loss experience, our judgment, and industry information. Revenue Recognition We recognize revenue from boat, motor, and trailer sales, and parts and service operations at the time the boat, motor, trailer, or part is delivered to or accepted by the customer or the service is completed. We recognize deferred revenue from service operations and slip and storage services on a straight-line basis over the term of the contract or when service is completed. We recognize commissions earned from a brokerage sale at the time the related brokerage transaction closes. We recognize income from the rentals of chartering power and sailing yachts on a straight-line basis over the term of the contract or when service is completed. We recognize commissions earned by us for placing notes with financial institutions in connection with customer boat financing when we recognize the related boat sales. We recognize marketing fees earned on credit, life, accident, disability, gap, and hull insurance products sold by third-party insurance companies at the later of customer acceptance of the insurance product as evidenced by contract execution or when the related boat sale is recognized. Pursuant to negotiated agreements with financial and insurance institutions, we are charged back for a portion of these fees should the customer terminate or default on the related finance or insurance contract before it is outstanding for a stipulated minimum period of time. We base the chargeback allowance, which was not material to the consolidated financial statements taken as a whole as of September 30, 2016, on our experience with repayments or defaults on the related finance or insurance contracts. We also recognize commissions earned on extended warranty service contracts sold on behalf of third-party insurance companies at the later of customer acceptance of the service contract terms as evidenced by contract execution or recognition of the related boat sale. We are charged back for a portion of these commissions should the customer terminate or default on the service contract prior to its scheduled maturity. We determined the chargeback allowance, which was not material to the consolidated financial statements taken as a whole as of September 30, 2016, based upon our experience with terminations or defaults on the service contracts. The following table sets forth percentages of our revenue generated by certain products and services, for each of last three fiscal years. 2014 2015 2016 New boat sales 65.2 % 64.3 % 68.5 % Used boat sales 16.8 % 19.9 % 17.5 % Maintenance, repair, storage, and charter services 7.8 % 6.9 % 6.0 % Finance and insurance products 2.6 % 2.5 % 2.5 % Parts and accessories 5.1 % 4.1 % 3.5 % Brokerage sales 2.5 % 2.3 % 2.0 % Total revenue 100.0 % 100.0 % 100.0 % Stock-Based Compensation We account for our stock-based compensation plans following the provisions of FASB Accounting Standards Codification 718, “Compensation — Stock Compensation” (“ASC 718”). In accordance with ASC 718, we use the Black-Scholes valuation model for valuing all stock-based compensation and shares purchased under our Employee Stock Purchase Plan. We measure compensation for restricted stock awards and restricted stock units at fair value on the grant date based on the number of shares expected to vest and the quoted market price of our common stock. We recognize compensation cost for all awards in operations, net of estimated forfeitures, on a straight-line basis over the requisite service period for each separately vesting portion of the award. Advertising and Promotional Cost We expense advertising and promotional costs as incurred and include them in selling, general, and administrative expenses in the accompanying consolidated statements of operations. Pursuant to ASC 605-50, we net amounts received by us under our co-op assistance programs from our manufacturers against the related advertising expenses. Total advertising and promotional expenses approximated $9.5 million, $10.5 million, and $13.5 million, net of related co-op assistance of approximately $473,000, $737,000, and $730,000, for the fiscal years ended September 30, 2014, 2015, and 2016, respectively. Income Taxes We account for income taxes in accordance with FASB Accounting Standards Codification 740, “Income Taxes” (“ASC 740”). Under ASC 740, we recognize deferred tax assets and liabilities for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. We measure deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which we expect those temporary differences to be recovered or settled. We record valuation allowances to reduce our deferred tax assets to the amount expected to be realized by considering all available positive and negative evidence. Concentrations of Credit Risk Financial instruments, which potentially subject us to concentrations of credit risk, consist principally of cash and cash equivalents and accounts receivable. Concentrations of credit risk with respect to our cash and cash equivalents are limited primarily to amounts held with financial institutions. Concentrations of credit risk arising from our receivables are limited primarily to amounts due from manufacturers and financial institutions. Fair Value of Financial Instruments The carrying amount of our financial instruments approximates fair value resulting from either length to maturity or existence of interest rates that approximate prevailing market rates unless otherwise disclosed in these consolidated financial statements. Use of Estimates and Assumptions The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates made by us in the accompanying consolidated financial statements relate to valuation allowances, valuation of goodwill and intangible assets, valuation of long-lived assets, and valuation of accruals. Actual results could differ materially from those estimates. Segment Reporting We operate as one reporting segment in accordance with the FASB Accounting Standards Codification 280, “Segment Reporting”. The metrics used by our Chief Executive Officer (as the Company’s chief operating decision maker or the “CODM”) to assess the performance of the Company are focused on viewing the business as a single integrated business. |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Sep. 30, 2016 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Pronouncements | 3. NEW ACCOUNTING PRONOUNCEMENTS: In May 2014, the FASB issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (ASU 2014-9), a converged standard on revenue recognition. The new pronouncement requires revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also specifies the accounting for some costs to obtain or fulfill a contract with a customer, as well as enhanced disclosure requirements. ASU 2014-9 is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Early adoption is permitted for annual reporting periods beginning after December 15, 2016. While we are continuing to evaluate the impact the adoption of ASU 2014-09 will have on our consolidated financial statements, we currently do not believe the adoption of this standard will have a material impact on our consolidated financial statements, or will cause a significant change to our current accounting policies or internal controls over financial reporting for revenue recognition on boat, motor, and trailer sales, parts and service operations, brokerage commissions, slip and storage services, charter rentals, and fee income generated from F&I products. In July 2015, the FASB issued ASU No. 2015-11, “Inventory (Topic 330).” The pronouncement was issued to simplify the measurement of inventory and changes the measurement from lower of cost or market to lower of cost and net realizable value. This pronouncement is effective for reporting periods beginning after December 15, 2016. The adoption of ASU 2015-11 is not expected to have a significant impact on the Company’s consolidated financial position or results of operations. In November 2015, FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes, which eliminates the current requirement to present deferred tax liabilities and assets as current and noncurrent in a classified balance sheet. Instead, entities will be required to classify all deferred tax assets and liabilities as noncurrent. This ASU is effective for annual periods beginning after fiscal December 15, 2017 and early adoption is permitted as of the beginning of an interim or annual reporting period. We retrospectively adopted ASU 2015-17 as of June 30, 2016, and as a result have reported deferred tax assets and liabilities as noncurrent on the balance sheet for all periods presented. This early adoption resulted in approximately $9.3 million in deferred tax assets previously reported as current assets in the consolidated balance sheet as of September 30, 2015 being recorded as noncurrent assets as of September 30, 2015. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (ASU 2016-02). This update requires organizations to recognize lease assets and lease liabilities on the balance sheet and also disclose key information about leasing arrangements. This ASU is effective for annual reporting periods beginning on or after December 15, 2018, and interim periods within those annual periods. Earlier application is permitted for all entities as of the beginning of an interim or annual period. While we are continuing to evaluate the impact of the adoption of ASU 2016-02 on our consolidated financial statements, we believe the adoption of ASU 2016-02 may have a significant and material impact to our consolidated balance sheet given our current lease agreements for our leased retail locations. We are currently evaluating the impact the adoption of this ASU will have on our other consolidated financial statements. Based on a preliminary assessment, we expect that most of our operating lease commitments will be subject to the new guidance and recognized as operating lease liabilities and right-of-use assets upon adoption, resulting in a material increase in the assets and liabilities recorded on our consolidated balance sheet. We are continuing our assessment, which may identify additional impacts this standard will have on our consolidated financial statements and related disclosures and internal controls over financial reporting. In March 2016, the FASB issued ASU 2016-09, “Compensation – Stock Compensation (Topic 718), (ASU 2016-09).” This update was issued as part of the FASB’s simplification initiative and affects all entities that issue share-based payment awards to their employees. The amendments in this update cover such areas as the recognition of excess tax benefits and deficiencies, the classification of those excess tax benefits on the statement of cash flows, an accounting policy election for forfeitures, the amount an employer can withhold to cover income taxes and still qualify for equity classification and the classification of those taxes paid on the statement of cash flows. This update is effective for annual and interim periods beginning after December 15, 2016. We elected to early adopt the new guidance in the fourth quarter of fiscal year 2016 which requires us to reflect any adjustments as of October 1, 2015, the beginning of the annual period that includes the interim period of adoption. The primary effect of adoption was the recognition of excess tax benefits in our provision for income taxes rather than paid-in capital for all periods in fiscal year 2016. This early adoption resulted in an approximately $5.2 million increase in deferred tax assets and retained earnings as of October 1, 2015, the beginning of fiscal year 2016. The recognition of excess tax benefits in our provision for income taxes rather than paid-in capital resulted in an income tax benefit of $633,000 for the three months ended September 30, 2016. Additionally, the adoption in the fourth quarter of fiscal year 2016 of ASU 2016-09 resulted in additional income tax expense of $201,000 for the three months ended December 31, 2015, an income tax benefit of $67,000 for the three months ended March 31, 2016, and an additional income tax expense of $242,000 for the three months ended June 30, 2016, from the previously reported income tax provisions in the condensed consolidated statements of operations for the first, second, and third quarter, respectively, during fiscal year 2016. Lastly, the adoption of ASU 2016-09 resulted in $541,000 for payments for tax withholdings for equity awards previously recorded in operating activities on the consolidated statements of cash flows for fiscal year 2015 now being recorded in financing activities for fiscal year 2015. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Accounts Receivable | 4. ACCOUNTS RECEIVABLE: Trade receivables consist primarily of receivables from financial institutions, which provide funding for customer boat financing and amounts due from financial institutions earned from arranging financing with our customers. We normally collect these receivables within 30 days of the sale. Trade receivables also include amounts due from customers on the sale of boats, parts, service, and storage. Amounts due from manufacturers represent receivables for various manufacturer programs and parts and service work performed pursuant to the manufacturers’ warranties. The allowance for uncollectible receivables, which was not material to the consolidated financial statements as of September 30, 2015 or 2016, was based on our consideration of customer payment practices, past transaction history with customers, and economic conditions. When an account becomes uncollectable, we expense it as a bad debt and we credit payments subsequently received to the bad debt expense account. We review the allowance for uncollectible receivables when an event or other change in circumstances results in a change in the estimate of the ultimate collectability of a specific account. Accounts receivable, net consisted of the following as of September 30, 2015 2016 (Amounts in thousands) Trade receivables $ 13,010 $ 16,296 Amounts due from manufacturers 4,879 7,386 Other receivables 585 901 $ 18,474 $ 24,583 |
Inventories
Inventories | 12 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | 5. INVENTORIES: Inventories, net, consisted of the following as of September 30, 2015 2016 (Amounts in thousands) New boats, motors, and trailers $ 230,359 $ 276,786 Used boats, motors, and trailers 36,992 37,591 Parts, accessories, and other 6,524 7,601 $ 273,875 $ 321,978 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Sep. 30, 2016 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 6. PROPERTY AND EQUIPMENT: Property and equipment consisted of the following as of September 30, 2015 2016 (Amounts in thousands) Land $ 43,090 $ 50,568 Buildings and improvements 78,425 93,175 Machinery and equipment 24,709 27,634 Furniture and fixtures 3,199 3,678 Vehicles 5,846 7,301 155,269 182,356 Accumulated depreciation and amortization (56,282 ) (61,003 ) $ 98,987 $ 121,353 Depreciation and amortization expense on property and equipment totaled approximately $7.3 million, $7.9 million, and $8.0 million for the fiscal years ended September 30, 2014, 2015, and 2016, respectively. |
Other Assets
Other Assets | 12 Months Ended |
Sep. 30, 2016 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Other Assets | 7. OTHER ASSETS: During February 2006, we became party to a joint venture with Brunswick that acquired certain real estate and assets of Great American Marina for an aggregate purchase price of approximately $11.0 million, of which we contributed approximately $4.0 million and Brunswick contributed approximately $7.0 million. The terms of the agreement specify that we operate and maintain the service business and that Brunswick operate and maintain the marina business. Simultaneously with the closing, the acquired entity became Gulfport Marina, LLC (“Gulfport”). We account for our investment in Gulfport in accordance with FASB Accounting Standards Codification 323, “Investment – Equity Method and Joint Venture”. Accordingly, we adjust the carrying amount of our investment in Gulfport to recognize our share of earnings or losses, based on the service business we operate. The carrying amount of our investment is included in other long-term assets on the consolidated balance sheet as of September 30, 2015, and our share of the earnings or losses based on the service business that we operate are included in selling, general and administrative expenses on the consolidated statements of operations. During February 2016, we acquired Brunswick’s interest in the Gulfport joint venture. After the acquisition of Brunswick’s interest, we reported the complete operations of Gulfport in our consolidated balance sheet as of September 30, 2016 and consolidated statement of operations for the remainder of fiscal year 2016 subsequent to the acquisition in accordance with FASB Accounting Standards Codification 805, “Business Combinations”. Approximately $6.7 million and $850,000 of certain real estate assets were classified as held for sale and were included in prepaid expenses and other current assets on the consolidated balance sheet as of September 30, 2015 and September 30, 2016, respectively. |
Short-Term Borrowings
Short-Term Borrowings | 12 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowings | 8. SHORT-TERM BORROWINGS: In June 2016, we entered into an amendment to our Inventory Financing Agreement (the “Amended Credit Facility”), originally entered into in June 2010, as subsequently amended, and led by Wells Fargo Commercial Distribution Finance LLC (formerly GE Commercial Distribution Finance Corporation). The June 2016 amendment extended the maturity date of the Credit Facility to October 2019, and the Amended Credit Facility includes two additional one-year extension periods, with lender approval. The June 2016 amendment, among other things, modified the amount of borrowing availability and maturity date of the Credit Facility. The Amended Credit Facility provides a floor plan financing commitment of up to $300.0 million, an increase from the previous limit of $260.0 million, subject to borrowing base availability resulting from the amount and aging of our inventory. The Amended Credit Facility has certain financial covenants as specified in the agreement. The covenants include provisions that our leverage ratio must not exceed 2.75 to 1.0 and that our current ratio must be greater than 1.2 to 1.0. The interest rate for amounts outstanding under the Amended Credit Facility is 345 basis points above the one-month London Inter-Bank Offering Rate (“LIBOR”). There is an unused line fee of ten basis points on the unused portion of the Amended Credit Facility. Advances under the Amended Credit Facility are initiated by the acquisition of eligible new and used inventory or are re-advances against eligible new and used inventory that have been partially paid-off. Advances on new inventory will generally mature 1,080 days from the original invoice date. Advances on used inventory will mature 361 days from the date we acquire the used inventory. Each advance is subject to a curtailment schedule, which requires that we pay down the balance of each advance on a periodic basis starting after six months. The curtailment schedule varies based on the type and value of the inventory. The collateral for the Amended Credit Facility is all of our personal property with certain limited exceptions. None of our real estate has been pledged for collateral for the Amended Credit Facility. As of September 30, 2015 and 2016, our indebtedness associated with financing our inventory and working capital needs totaled approximately $137.2 million and $166.6 million, respectively. As of September 30, 2015 and 2016, the interest rate on the outstanding short-term borrowings was approximately 3.6% and 3.9%, respectively. As of September 30, 2016, our additional available borrowings under our Amended Credit Facility were approximately $69.8 million based upon the outstanding borrowing base availability. As is common in our industry, we receive interest assistance directly from boat manufacturers, including Brunswick. The interest assistance programs vary by manufacturer, but generally include periods of free financing or reduced interest rate programs. The interest assistance may be paid directly to us or our lender depending on the arrangements the manufacturer has established. We classify interest assistance received from manufacturers as a reduction of inventory cost and related cost of sales as opposed to netting the assistance against our interest expense incurred with our lenders. The availability and costs of borrowed funds can adversely affect our ability to obtain adequate boat inventory and the holding costs of that inventory as well as the ability and willingness of our customers to finance boat purchases. As of September 30, 2016, we had no long-term debt. However, we rely on our Amended Credit Facility to purchase our inventory of boats. The aging of our inventory limits our borrowing capacity as defined curtailments reduce the allowable advance rate as our inventory ages. Our access to funds under our Amended Credit Facility also depends upon the ability of our lenders to meet their funding commitments, particularly if they experience shortages of capital or experience excessive volumes of borrowing requests from others during a short period of time. Unfavorable economic conditions, weak consumer spending, turmoil in the credit markets, and lender difficulties, among other potential reasons, could interfere with our ability to utilize our Amended Credit Facility to fund our operations. Any inability to utilize our Amended Credit Facility could require us to seek other sources of funding to repay amounts outstanding under the credit agreements or replace or supplement our credit agreements, which may not be possible at all or under commercially reasonable terms. Similarly, decreases in the availability of credit and increases in the cost of credit adversely affect the ability of our customers to purchase boats from us and thereby adversely affect our ability to sell our products and impact the profitability of our finance and insurance activities. Tight credit conditions during fiscal 2009, 2010, and 2011 adversely affected the ability of customers to finance boat purchases, which had a negative effect on our operating results. |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. INCOME TAXES: The components of our provision (benefit) from income taxes consisted of the following for the fiscal years ended September 30, 2014 2015 2016 (Amounts in thousands) Current provision: Federal $ 46 $ 209 $ 496 State 45 87 73 Total current provision $ 91 $ 296 $ 569 Deferred provision (benefit): Federal — (22,056 ) 11,691 State — (5,654 ) (52 ) Total deferred provision (benefit) — (27,710 ) 11,639 Total income tax provision (benefit) $ 91 $ (27,414 ) $ 12,208 Below is a reconciliation of the statutory federal income tax rate to our effective tax rate for the fiscal years ended September 30, 2014 2015 2016 Federal tax provision (benefit) 35.0 % 35.0 % 35.0 % State taxes, net of federal effect 4.4 % 3.2 % 3.6 % Stock based compensation 0.2 % 0.4 % (0.5 )% Valuation allowance (42.5 )% (171.5 )% (3.2 )% Foreign rate differential 3.0 % 0.3 % 0.5 % Other 0.7 % 1.3 % (0.3 )% Effective tax rate 0.8 % (131.3 )% 35.1 % Deferred income taxes reflect the impact of temporary differences between the amount of assets and liabilities recognized for financial reporting purposes and such amounts recognized for income tax purposes. The tax effects of these temporary differences representing the components of deferred tax assets as of September 30, 2015 2016 (Amounts in thousands) Deferred tax assets, net: Inventories $ 1,361 $ 1,095 Accrued expenses 911 919 Depreciation and amortization 5,152 1,497 Stock based compensation 3,776 3,566 Tax loss carryforwards 17,450 13,879 Other 585 573 Long-term deferred tax assets 29,235 21,529 Valuation allowance (1,718 ) (454 ) Net long-term deferred tax assets $ 27,517 $ 21,075 Pursuant to ASC 740, we must consider all positive and negative evidence regarding the realization of deferred tax assets. ASC 740 provides for four possible sources of taxable income to realize deferred tax assets: 1) taxable income in prior carryback years, 2) reversals of existing deferred tax liabilities, 3) tax planning strategies and 4) projected future taxable income. As of September 30, 2016, we have no available taxable income in prior carryback years, limited reversals of existing deferred tax liabilities or prudent and feasible tax planning strategies. Therefore, the recoverability of our deferred tax assets is dependent upon generating future taxable income. Since the fourth quarter of fiscal 2008, the Company had maintained a full valuation allowance against its deferred tax assets, having determined it was more likely than not that the deferred tax assets would not be realized. The determination of releasing valuation allowances against deferred tax assets is made, in part, pursuant to our assessment as to whether it is more likely than not that we will generate sufficient future taxable income against which benefits of the deferred tax assets may or may not be realized. Significant judgment is required in making estimates regarding our ability to generate income in future periods. In the fourth quarter of fiscal 2015, we reached the conclusion that it was appropriate to release our valuation allowance against the majority of our deferred tax assets due to the sustained positive operating performance of our operations throughout the entire fiscal year and the projection of future taxable income. Additionally, we maintained a cumulative three year income position throughout fiscal year 2015, reached six consecutive quarters of positive pre-tax operating earnings, and experienced a continued recovery in industry and general economic conditions, all of which were positive factors that overcame prior negative evidence. We also considered forecasts of future operating results and utilization of net operating losses and tax credits prior to their expiration. As a result, we recorded a $27.5 million net reversal of substantially all of our deferred tax asset valuation allowance in the fourth quarter of fiscal year 2015 after determining it was more likely than not that certain deferred tax assets would be realized. A portion of our valuation allowance was retained against our state net operating losses deferred tax asset, due to differences between state and federal tax laws. In the fourth quarter of fiscal 2016, we reached the conclusion that it was appropriate to release the majority of our valuation allowance against our state net operating loss deferred tax assets due to our operating performance in fiscal 2016 being greater than projected at fiscal 2015 year end. We considered forecasts of future operating results and the utilization of net operating losses within the statutory mandated carryforward periods and determined it was more likely than not that the majority of our state net operating loss deferred tax assets would be realized. As a result of the release of a portion of our deferred tax asset valuation allowance, we recorded approximately $1.1 million reduction in our income tax provision. A portion of the valuation allowance was retained based on particular jurisdictions. Specifically, states with a shorter statutory carryforward periods and states where our economic presence, as defined by the jurisdiction’s tax laws, has been reduced. As of September 30, 2016, we had federal net operating loss (NOL) carryforwards for federal income tax purposes of $21.0 million that will begin to expire in 2031 which excludes benefits for share based payments of $14.6 million. State NOL carryforwards for state income tax purposes will expire at various dates through 2032. Under ASC 740, the impact of uncertain tax positions taken or expected to be taken on an income tax return must be recognized in the financial statements at the largest amount that is more likely than not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized in the financial statements unless it is more likely than not of being sustained. As of September 30, 2015 and 2016, we had approximately $244,000 and $254,000, respectively, of gross unrecognized tax benefits, of which approximately $154,000 and $154,000, respectively, if recognized, would impact the effective tax rate before considering a change in valuation allowance. The reconciliation of the total amount recorded for unrecognized tax benefits at the beginning and end of the fiscal years ended September 30, 2015 and 2016 is as follows: 2015 2016 (Amounts in thousands) Unrecognized tax benefits at the beginning of the year $ 234 $ 244 Increases in tax positions for prior years 10 10 Unrecognized tax benefits as of September 30, $ 244 $ 254 Consistent with our prior practices, we recognize interest and penalties related to uncertain tax positions as a component of income tax expense. As of September 30, 2015 and 2016, interest and penalties represented approximately $120,000 and $130,000, respectively, of the gross unrecognized tax benefits. We are subject to tax by both federal and state taxing authorities. Until the respective statutes of limitations expire, we are subject to income tax audits in the jurisdictions in which we operate. We are no longer subject to U.S. Federal tax assessments for fiscal years prior to 2012, and we are not subject to assessments prior to the 2011 fiscal year for the majority of the State jurisdictions. We do not expect a change to the total amount of unrecognized tax benefits in the next 12 months based on examinations by tax authorities, the expiration of statutes of limitations, or potential settlements of outstanding positions. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Shareholders' Equity | 10. SHAREHOLDERS’ EQUITY: In February 2016, our Board of Directors approved a new share repurchase plan allowing our company to repurchase up to 1,250,000 shares of our common stock through February 28, 2018. Under the plan, we may buy back common stock from time to time in the open market or in privately negotiated blocks, dependent upon various factors, including price and availability of the shares, and general market conditions. Through September 30, 2016 we had purchased an aggregate of 1,692,016 shares of common stock under the current and historical share repurchase plans for an aggregate purchase price of approximately $31.8 million. As of September 30, 2016, approximately 1.1 million shares remained available for future purchases under the share repurchase program. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Sep. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 11. STOCK-BASED COMPENSATION: We account for our stock-based compensation plans following the provisions of FASB Accounting Standards Codification 718, “Compensation — Stock Compensation” (“ASC 718”). In accordance with ASC 718, we use the Black-Scholes valuation model for valuing all stock-based compensation and shares purchased under our Employee Stock Purchase Plan. We measure compensation for restricted stock awards and restricted stock units at fair value on the grant date based on the number of shares expected to vest and the quoted market price of our common stock. We recognize compensation cost for all awards in operations, net of estimated forfeitures, on a straight-line basis over the requisite service period for each separately vesting portion of the award. Cash received from option exercises under all share-based compensation arrangements for the fiscal years ended September 30, 2014, 2015, and 2016 was approximately $4.2 million, $3.7 million, and $2.7 million, respectively. There were no tax benefits realized for tax deductions from option exercises for the fiscal years ended September 30, 2014, 2015, and 2016. We currently expect to satisfy share-based awards with registered shares available to be issued. |
The Incentive Stock Plans
The Incentive Stock Plans | 12 Months Ended |
Sep. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
The Incentive Stock Plans | 12. THE INCENTIVE STOCK PLANS: During February 2013, our shareholders approved a proposal to amend the 2011 Stock-Based Compensation Plan (“2011 Plan”) to increase the 1,200,456 share threshold by 1,000,000 shares to 2,200,456 shares. During January 2011, our shareholders approved a proposal to authorize our 2011 Plan, which replaced our 2007 Incentive Compensation Plan (“2007 Plan”). Our 2011 Plan provides for the grant of stock options, stock appreciation rights, restricted stock, stock units, bonus stock, dividend equivalents, other stock related awards, and performance awards (collectively “awards”), that may be settled in cash, stock, or other property. Our 2011 Plan is designed to attract, motivate, retain, and reward our executives, employees, officers, directors, and independent contractors by providing such persons with annual and long-term performance incentives to expend their maximum efforts in the creation of stockholder value. Subsequent to the February 2013 amendment described above, the total number of shares of our common stock that may be subject to awards under the 2011 Plan is equal to 2,000,000 shares, plus: (i) any shares available for issuance and not subject to an award under the 2007 Plan, which was 200,456 shares at the time of approval of the 2011 Plan; (ii) the number of shares with respect to which awards granted under the 2011 Plan and the 2007 Plan terminate without the issuance of the shares or where the shares are forfeited or repurchased; (iii) with respect to awards granted under the 2011 Plan and the 2007 Plan, the number of shares that are not issued as a result of the award being settled for cash or otherwise not issued in connection with the exercise or payment of the award; and (iv) the number of shares that are surrendered or withheld in payment of the exercise price of any award or any tax withholding requirements in connection with any award granted under the 2011 Plan or the 2007 Plan. The 2011 Plan terminates in January 2021, and awards may be granted at any time during the life of the 2011 Plan. The date on which awards vest are determined by the Board of Directors or the Plan Administrator. The Board of Directors has appointed the Compensation Committee as the Plan Administrator. The exercise prices of options are determined by the Board of Directors or the Plan Administrator and are at least equal to the fair market value of shares of common stock on the date of grant. The term of options under the 2011 Plan may not exceed ten years. The options granted have varying vesting periods. To date, we have not settled or been under any obligation to settle any awards in cash. The following table summarizes option activity from September 30, 2015 through September 30, 2016: Shares Available for Grant Options Outstanding Aggregate Intrinsic Value (in thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Life Balance as of September 30, 2015 829,854 1,937,874 $ 6,285 $ 12.95 6.5 Options authorized — — — Options granted (5,000 ) 5,000 16.97 Options cancelled/forfeited/expired 219,262 (219,262 ) 24.70 Options exercised — (272,510 ) 6.89 Restricted stock awards granted (281,260 ) — — Restricted stock awards forfeited 11,500 — — Additional shares of stock issued (42,253 ) — — Balance as of September 30, 2016 732,103 1,451,102 $ 12,397 $ 12.33 6.0 Exercisable as of September 30, 2016 767,434 $ 9,064 $ 9.21 4.8 The weighted-average grant date fair value of options granted during the fiscal years ended September 30, 2014, 2015, and 2016 was $6.23, $5.80, and $6.88, respectively. The total intrinsic value of options exercised during the fiscal years ended September 30, 2014, 2015, and 2016 was approximately $4.5 million, $8.5 million, and $3.6 million, respectively. As of September 30, 2015 and 2016, there were approximately $2.2 million and $1.0 million, respectively, of unrecognized compensation costs related to non-vested options that are expected to be recognized over a weighted average period of 0.6 years. The total fair value of options vested during the fiscal years ended September 30, 2014, 2015, and 2016 was approximately $1.9 million, $766,000 , and $163,000, respectively. We used the Black-Scholes model to estimate the fair value of options granted. The expected term of options granted is derived from the output of the option pricing model and represents the period of time that options granted are expected to be outstanding. Volatility is based on the historical volatility of our common stock. The risk-free rate for periods within the contractual term of the options is based on the U.S. Treasury yield curve in effect at the time of grant. The following are the weighted-average assumptions used for the fiscal years ended September 30, 2014 2015 2016 Dividend yield 0.0% 0.0% 0.0% Risk-free interest rate 0.7% 0.9% 1.0% Volatility 55.7% 47.4% 48.2% Expected life 3.2 years 3.1 years 5.0 years |
Employee Stock Purchase Plan
Employee Stock Purchase Plan | 12 Months Ended |
Sep. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Employee Stock Purchase Plan | 13. EMPLOYEE STOCK PURCHASE PLAN: During February 2012, our shareholders approved a proposal to amend our 2008 Employee Stock Purchase Plan (“Stock Purchase Plan”) to increase the number of shares available under that plan by 500,000 shares. The Stock Purchase Plan as amended provides for up to 1,000,000 shares of common stock to be available for purchase by our regular employees who have completed at least one year of continuous service. In addition, there were 52,837 shares of common stock available under our 1998 Employee Stock Purchase Plan, which have been made available for issuance under our Stock Purchase Plan. The Stock Purchase Plan provides for implementation of up to 10 annual offerings beginning on the first day of October starting in 2008, with each offering terminating on September 30 of the following year. Each annual offering may be divided into two six-month offerings. For each offering, the purchase price per share will be the lower of (i) 85% of the closing price of the common stock on the first day of the offering or (ii) 85% of the closing price of the common stock on the last day of the offering. The purchase price is paid through periodic payroll deductions not to exceed 10% of the participant’s earnings during each offering period. However, no participant may purchase more than $25,000 worth of common stock annually. We used the Black-Scholes model to estimate the fair value of options granted to purchase shares issued pursuant to the Stock Purchase Plan. The expected term of options granted is derived from the output of the option pricing model and represents the period of time that options granted are expected to be outstanding. Volatility is based on the historical volatility of our common stock. The risk-free rate for periods within the contractual term of the options is based on the U.S. Treasury yield curve in effect at the time of grant. The following are the weighted-average assumptions used for the fiscal years ended September 30, 2014 2015 2016 Dividend yield 0.0% 0.0% 0.0% Risk-free interest rate 0.1% 0.1% 0.2% Volatility 39.6% 36.1% 50.9% Expected life Six months Six months Six months As of September 30, 2016, we had issued 767,950 shares of common stock under our Stock Purchase Plan. |
Restricted Stock Awards
Restricted Stock Awards | 12 Months Ended |
Sep. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Restricted Stock Awards | 14. RESTRICTED STOCK AWARDS: We have granted non-vested (restricted) stock awards (“restricted stock”) and restricted stock units (“RSUs”) to employees and Officers pursuant to the 2011 Plan and the 2007 Plan. The restricted stock awards and RSUs have varying vesting periods, but generally become fully vested between two and four years after the grant date, depending on the specific award, performance targets met for performance based awards granted to Officers, and vesting period for time based awards. Officer performance based awards are granted at the target amount of shares that may be earned and the actual amount of the award earned generally could range from 0% to 200% of the target number of shares based on the actual specified performance target met. We accounted for the restricted stock awards granted using the measurement and recognition provisions of ASC 718. Accordingly, the fair value of the restricted stock awards, including performance based awards, is measured on the grant date and recognized in earnings over the requisite service period for each separately vesting portion of the award. The following table summarizes restricted stock award activity from September 30, 2015 through September 30, 2016: Shares/ Units Weighted Average Grant Date Fair Value Non-vested balance as of September 30, 2015 111,000 $ 19.23 Changes during the period Awards granted 281,260 $ 14.97 Awards vested (49,855 ) $ 18.13 Awards forfeited (11,500 ) $ 15.01 Non-vested balance as of September 30, 2016 330,905 $ 16.07 As of September 30, 2016, we had approximately $4.2 million of total unrecognized compensation cost related to non-vested restricted stock awards. We expect to recognize that cost over a weighted-average period of 2.4 years. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | 15. NET INCOME PER SHARE: The following is a reconciliation of the shares used in the denominator for calculating basic and diluted net income per share for the fiscal years ended September 30, 2014 2015 2016 Weighted average common shares outstanding used in calculating basic income per share 23,916,238 24,466,243 24,203,947 Effect of dilutive options and non-vested restricted stock awards 739,024 636,046 616,900 Weighted average common and common equivalent shares used in calculating diluted income per share 24,655,262 25,102,289 24,820,847 During the fiscal years ended September 30, 2014, 2015, and 2016 there were 1,144,600, 1,553,207, and 140,521 weighted average shares of options outstanding, respectively, that were not included in the computation of diluted income per share because the options’ exercise prices were greater than the average market price of our common stock, and therefore, their effect would be anti-dilutive. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 16. COMMITMENTS AND CONTINGENCIES: Lease Commitments We lease certain land, buildings, machinery, equipment, and vehicles related to our dealerships under non-cancelable third-party operating leases. Certain of our leases include options for renewal periods and provisions for escalation. Rental expenses, including month-to-month rentals, were approximately $5.8 million, $6.0 million, and $7.1 million for the fiscal years ended September 30, 2014, 2015, and 2016, respectively. Future minimum lease payments under non-cancelable operating leases as of September 30, 2016, were as follows: (Amounts in thousands) 2017 5,810 2018 5,306 2019 5,071 2020 5,131 2021 4,477 Thereafter 23,548 Total $ 49,343 Other Commitments and Contingencies We are party to various legal actions arising in the ordinary course of business. We believe that these matters should not have a material adverse effect on our consolidated financial condition, results of operations, or cash flows. In fiscal 2014 we recognized a recovery of approximately $555,000, net of taxes and other expenses, respectively, from the Deepwater Horizon Settlement Program for damages suffered as a result of the Deepwater Horizon Oil Spill. The recovery was recorded as a reduction in selling, general, and administrative expenses on our consolidated statements of operations. While additional claims are outstanding, we cannot be certain of the amount of any further recovery. During the fiscal years ended September 30, 2014, 2015, and 2016, we incurred costs associated with store closings and lease terminations of approximately $217,000, $581,000, and $0, respectively. These costs primarily related to the future minimum operating lease payments of the closed locations. The store closings were a key component in our effort to better match our fixed costs with the decline in retail business caused by the soft economic conditions. The store closing costs have been included in selling, general, and administrative expenses in the consolidated statements of operations during the fiscal years ended September 30, 2014, 2015, and 2016. In connection with certain of our workers’ compensation insurance policies, we maintain standby letters of credit for our insurance carriers in the amount of $1.0 million relating primarily to retained risk on our workers compensation claims. We are subject to federal and state environmental regulations, including rules relating to air and water pollution and the storage and disposal of gasoline, oil, other chemicals and waste. We believe that we are in compliance with such regulations. |
Employee 401(k) Profit Sharing
Employee 401(k) Profit Sharing Plans | 12 Months Ended |
Sep. 30, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee 401(k) Profit Sharing Plans | 17. EMPLOYEE 401(k) PROFIT SHARING PLANS: Employees are eligible to participate in our 401(k) Profit Sharing Plan (the “Plan”) following their 90-day introductory period starting either April 1 or October 1, provided that they are 21 years of age. Under the Plan, we match 25% of participants’ contributions, up to a maximum of 5% of each participant’s compensation. We contributed, under the Plan, or pursuant to previous similar plans, approximately $463,000, $605,000, and $713,000 for the fiscal years ended September 30, 2014, 2015, and 2016, respectively. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Sep. 30, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | 18. QUARTERLY FINANCIAL DATA (UNAUDITED): The following table sets forth certain unaudited quarterly financial data for each of our last eight quarters. The information has been derived from unaudited financial statements that we believe reflect all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of such quarterly financial information. December 31, 2014 March 31, 2015 June 30, 2015 September 30, 2015 December 31, 2015 March 31, 2016 June 30, 2016 September 30, 2016 (Amounts in thousands except share and per share data) Revenue $ 158,126 $ 172,143 $ 231,849 $ 189,252 $ 169,537 $ 199,566 $ 345,592 $ 227,355 Cost of sales 120,671 129,943 174,809 141,180 127,923 150,539 266,690 170,870 Gross profit 37,455 42,200 57,040 48,072 41,614 49,027 78,902 56,485 Selling, general, and administrative expenses 36,095 40,557 41,049 41,734 38,951 43,459 54,325 49,041 Income from operations 1,360 1,643 15,991 6,338 2,663 5,568 24,577 7,444 Interest expense 1,146 1,253 1,141 914 1,227 1,582 1,473 1,180 Income before income income tax (benefit) provision 214 390 14,850 5,424 1,436 3,986 23,104 6,264 Income tax (benefit) provision — — — (27,414 ) 748 1,497 9,285 678 Net income $ 214 $ 390 $ 14,850 $ 32,838 $ 688 $ 2,489 $ 13,819 $ 5,586 Net income per share: Diluted $ 0.01 $ 0.02 $ 0.59 $ 1.32 $ 0.03 $ 0.10 $ 0.56 $ 0.22 Weighted average number of shares: Diluted 24,947,968 25,265,857 25,316,092 24,883,360 24,742,330 24,758,826 24,770,980 25,010,193 |
Significant Accounting Polici25
Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. |
Vendor Consideration Received | Vendor Consideration Received We account for consideration received from our vendors in accordance with FASB Accounting Standards Codification 605-50, “Revenue Recognition - Customer Payments and Incentives” (“ASC 605-50”). ASC 605-50 requires us to classify interest assistance received from manufacturers as a reduction of inventory cost and related cost of sales as opposed to netting the assistance against our interest expense incurred with our lenders. Pursuant to ASC 605-50, amounts received by us under our co-op assistance programs from our manufacturers are netted against related advertising expenses. Further pursuant to ASC 605-50, manufacturer incentives based upon cumulative volume of sales and purchases are recorded when the amounts are probable and reasonably estimable. |
Inventories | Inventories Inventory costs consist of the amount paid to acquire inventory, net of vendor consideration and purchase discounts, the cost of equipment added, reconditioning costs, and transportation costs relating to acquiring inventory for sale. We state new and used boat, motor, and trailer inventories at the lower of cost, determined on a specific-identification basis, or market. We state parts and accessories at the lower of cost, determined on an average cost basis, or market. We utilize our historical experience, the aging of the inventories, and our consideration of current market trends as the basis for determining a lower of cost or market valuation allowance. As of September 30, 2015 and 2016, our lower of cost or market valuation allowance for new and used boat, motor, and trailer inventories was $1.8 million and $1.0 million, respectively. If events occur and market conditions change, causing the fair value to fall below carrying value, the lower of cost or market valuation allowance could increase. |
Property and Equipment | Property and Equipment We record property and equipment at cost, net of accumulated depreciation, and depreciate property and equipment over their estimated useful lives using the straight-line method. We capitalize and amortize leasehold improvements over the lesser of the life of the lease or the estimated useful life of the asset. Useful lives for purposes of computing depreciation are as follows: Years Buildings and improvements 5-40 Machinery and equipment 3-10 Furniture and fixtures 5-10 Vehicles 3-5 We remove the cost of property and equipment sold or retired and the related accumulated depreciation from the accounts at the time of disposition and include any resulting gain or loss in the consolidated statements of operations. We charge maintenance, repairs, and minor replacements to operations as incurred, and we capitalize and amortize major replacements and improvements over their useful lives. |
Goodwill | Goodwill We account for goodwill in accordance with FASB Accounting Standards Codification 350, “Intangibles - Goodwill and Other” (“ASC 350”), which provides that the excess of cost over net assets of businesses acquired is recorded as goodwill. On April 15, 2016 we purchased Russo Marine, a privately owned boat dealer in the Northeast United States with locations in Massachusetts and Rhode Island, resulting in the recording of $8.8 million in goodwill. In total, current and previous acquisitions have resulted in the recording of $9.9 million in goodwill. In accordance with ASC 350, we review goodwill for impairment at least annually and whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Our annual impairment test is performed during the fourth fiscal quarter. If the carrying amount of goodwill exceeds its fair value we would recognize an impairment loss in accordance with ASC 350. As of September 30, 2016, and based upon our most recent analysis, we determined through our qualitative assessment that it is not “more likely than not” that the fair values of our reporting units are less than their carrying values. As a result, we were not required to perform the two-step goodwill impairment test. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets FASB Accounting Standards Codification 360-10-40, “Property, Plant, and Equipment - Impairment or Disposal of Long-Lived Assets” (“ASC 360-10-40”), requires that long-lived assets, such as property and equipment and purchased intangibles subject to amortization, be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of the asset is measured by comparison of its carrying amount to undiscounted future net cash flows the asset is expected to generate. If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the asset exceeds its fair market value. Estimates of expected future cash flows represent our best estimate based on currently available information and reasonable and supportable assumptions. Any impairment recognized in accordance with ASC 360-10-40 is permanent and may not be restored. The analysis is performed at a regional level for indicators of permanent impairment given the geographical interdependencies amongst our locations. Based upon our most recent analysis, which excludes fixed assets classified as held for sale which are recorded at fair value, we believe no further impairment of long-lived assets existed as of September 30, 2016. |
Customer Deposits | Customer Deposits Customer deposits primarily include amounts received from customers toward the purchase of boats. We recognize these deposits as revenue at the time of delivery or acceptance by the customers. |
Insurance | Insurance We retain varying levels of risk relating to the insurance policies we maintain, most significantly workers’ compensation insurance and employee medical benefits. We are responsible for the claims and losses incurred under these programs, limited by per occurrence deductibles and paid claims or losses up to pre-determined maximum exposure limits. Our third-party insurance carriers pay any losses above the pre-determined exposure limits. We estimate our liability for incurred but not reported losses using our historical loss experience, our judgment, and industry information. |
Revenue Recognition | Revenue Recognition We recognize revenue from boat, motor, and trailer sales, and parts and service operations at the time the boat, motor, trailer, or part is delivered to or accepted by the customer or the service is completed. We recognize deferred revenue from service operations and slip and storage services on a straight-line basis over the term of the contract or when service is completed. We recognize commissions earned from a brokerage sale at the time the related brokerage transaction closes. We recognize income from the rentals of chartering power and sailing yachts on a straight-line basis over the term of the contract or when service is completed. We recognize commissions earned by us for placing notes with financial institutions in connection with customer boat financing when we recognize the related boat sales. We recognize marketing fees earned on credit, life, accident, disability, gap, and hull insurance products sold by third-party insurance companies at the later of customer acceptance of the insurance product as evidenced by contract execution or when the related boat sale is recognized. Pursuant to negotiated agreements with financial and insurance institutions, we are charged back for a portion of these fees should the customer terminate or default on the related finance or insurance contract before it is outstanding for a stipulated minimum period of time. We base the chargeback allowance, which was not material to the consolidated financial statements taken as a whole as of September 30, 2016, on our experience with repayments or defaults on the related finance or insurance contracts. We also recognize commissions earned on extended warranty service contracts sold on behalf of third-party insurance companies at the later of customer acceptance of the service contract terms as evidenced by contract execution or recognition of the related boat sale. We are charged back for a portion of these commissions should the customer terminate or default on the service contract prior to its scheduled maturity. We determined the chargeback allowance, which was not material to the consolidated financial statements taken as a whole as of September 30, 2016, based upon our experience with terminations or defaults on the service contracts. The following table sets forth percentages of our revenue generated by certain products and services, for each of last three fiscal years. 2014 2015 2016 New boat sales 65.2 % 64.3 % 68.5 % Used boat sales 16.8 % 19.9 % 17.5 % Maintenance, repair, storage, and charter services 7.8 % 6.9 % 6.0 % Finance and insurance products 2.6 % 2.5 % 2.5 % Parts and accessories 5.1 % 4.1 % 3.5 % Brokerage sales 2.5 % 2.3 % 2.0 % Total revenue 100.0 % 100.0 % 100.0 % |
Stock-Based Compensation | Stock-Based Compensation We account for our stock-based compensation plans following the provisions of FASB Accounting Standards Codification 718, “Compensation — Stock Compensation” (“ASC 718”). In accordance with ASC 718, we use the Black-Scholes valuation model for valuing all stock-based compensation and shares purchased under our Employee Stock Purchase Plan. We measure compensation for restricted stock awards and restricted stock units at fair value on the grant date based on the number of shares expected to vest and the quoted market price of our common stock. We recognize compensation cost for all awards in operations, net of estimated forfeitures, on a straight-line basis over the requisite service period for each separately vesting portion of the award. |
Advertising and Promotional Costs | Advertising and Promotional Cost We expense advertising and promotional costs as incurred and include them in selling, general, and administrative expenses in the accompanying consolidated statements of operations. Pursuant to ASC 605-50, we net amounts received by us under our co-op assistance programs from our manufacturers against the related advertising expenses. Total advertising and promotional expenses approximated $9.5 million, $10.5 million, and $13.5 million, net of related co-op assistance of approximately $473,000, $737,000, and $730,000, for the fiscal years ended September 30, 2014, 2015, and 2016, respectively. |
Income Taxes | Income Taxes We account for income taxes in accordance with FASB Accounting Standards Codification 740, “Income Taxes” (“ASC 740”). Under ASC 740, we recognize deferred tax assets and liabilities for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. We measure deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which we expect those temporary differences to be recovered or settled. We record valuation allowances to reduce our deferred tax assets to the amount expected to be realized by considering all available positive and negative evidence. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments, which potentially subject us to concentrations of credit risk, consist principally of cash and cash equivalents and accounts receivable. Concentrations of credit risk with respect to our cash and cash equivalents are limited primarily to amounts held with financial institutions. Concentrations of credit risk arising from our receivables are limited primarily to amounts due from manufacturers and financial institutions. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amount of our financial instruments approximates fair value resulting from either length to maturity or existence of interest rates that approximate prevailing market rates unless otherwise disclosed in these consolidated financial statements. |
Use of Estimates and Assumptions | Use of Estimates and Assumptions The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates made by us in the accompanying consolidated financial statements relate to valuation allowances, valuation of goodwill and intangible assets, valuation of long-lived assets, and valuation of accruals. Actual results could differ materially from those estimates. |
Segment Reporting | Segment Reporting We operate as one reporting segment in accordance with the FASB Accounting Standards Codification 280, “Segment Reporting”. The metrics used by our Chief Executive Officer (as the Company’s chief operating decision maker or the “CODM”) to assess the performance of the Company are focused on viewing the business as a single integrated business. |
New Accounting Pronouncements | In May 2014, the FASB issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (ASU 2014-9), a converged standard on revenue recognition. The new pronouncement requires revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also specifies the accounting for some costs to obtain or fulfill a contract with a customer, as well as enhanced disclosure requirements. ASU 2014-9 is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Early adoption is permitted for annual reporting periods beginning after December 15, 2016. While we are continuing to evaluate the impact the adoption of ASU 2014-09 will have on our consolidated financial statements, we currently do not believe the adoption of this standard will have a material impact on our consolidated financial statements, or will cause a significant change to our current accounting policies or internal controls over financial reporting for revenue recognition on boat, motor, and trailer sales, parts and service operations, brokerage commissions, slip and storage services, charter rentals, and fee income generated from F&I products. In July 2015, the FASB issued ASU No. 2015-11, “Inventory (Topic 330).” The pronouncement was issued to simplify the measurement of inventory and changes the measurement from lower of cost or market to lower of cost and net realizable value. This pronouncement is effective for reporting periods beginning after December 15, 2016. The adoption of ASU 2015-11 is not expected to have a significant impact on the Company’s consolidated financial position or results of operations. In November 2015, FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes, which eliminates the current requirement to present deferred tax liabilities and assets as current and noncurrent in a classified balance sheet. Instead, entities will be required to classify all deferred tax assets and liabilities as noncurrent. This ASU is effective for annual periods beginning after fiscal December 15, 2017 and early adoption is permitted as of the beginning of an interim or annual reporting period. We retrospectively adopted ASU 2015-17 as of June 30, 2016, and as a result have reported deferred tax assets and liabilities as noncurrent on the balance sheet for all periods presented. This early adoption resulted in approximately $9.3 million in deferred tax assets previously reported as current assets in the consolidated balance sheet as of September 30, 2015 being recorded as noncurrent assets as of September 30, 2015. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (ASU 2016-02). This update requires organizations to recognize lease assets and lease liabilities on the balance sheet and also disclose key information about leasing arrangements. This ASU is effective for annual reporting periods beginning on or after December 15, 2018, and interim periods within those annual periods. Earlier application is permitted for all entities as of the beginning of an interim or annual period. While we are continuing to evaluate the impact of the adoption of ASU 2016-02 on our consolidated financial statements, we believe the adoption of ASU 2016-02 may have a significant and material impact to our consolidated balance sheet given our current lease agreements for our leased retail locations. We are currently evaluating the impact the adoption of this ASU will have on our other consolidated financial statements. Based on a preliminary assessment, we expect that most of our operating lease commitments will be subject to the new guidance and recognized as operating lease liabilities and right-of-use assets upon adoption, resulting in a material increase in the assets and liabilities recorded on our consolidated balance sheet. We are continuing our assessment, which may identify additional impacts this standard will have on our consolidated financial statements and related disclosures and internal controls over financial reporting. In March 2016, the FASB issued ASU 2016-09, “Compensation – Stock Compensation (Topic 718), (ASU 2016-09).” This update was issued as part of the FASB’s simplification initiative and affects all entities that issue share-based payment awards to their employees. The amendments in this update cover such areas as the recognition of excess tax benefits and deficiencies, the classification of those excess tax benefits on the statement of cash flows, an accounting policy election for forfeitures, the amount an employer can withhold to cover income taxes and still qualify for equity classification and the classification of those taxes paid on the statement of cash flows. This update is effective for annual and interim periods beginning after December 15, 2016. We elected to early adopt the new guidance in the fourth quarter of fiscal year 2016 which requires us to reflect any adjustments as of October 1, 2015, the beginning of the annual period that includes the interim period of adoption. The primary effect of adoption was the recognition of excess tax benefits in our provision for income taxes rather than paid-in capital for all periods in fiscal year 2016. This early adoption resulted in an approximately $5.2 million increase in deferred tax assets and retained earnings as of October 1, 2015, the beginning of fiscal year 2016. The recognition of excess tax benefits in our provision for income taxes rather than paid-in capital resulted in an income tax benefit of $633,000 for the three months ended September 30, 2016. Additionally, the adoption in the fourth quarter of fiscal year 2016 of ASU 2016-09 resulted in additional income tax expense of $201,000 for the three months ended December 31, 2015, an income tax benefit of $67,000 for the three months ended March 31, 2016, and an additional income tax expense of $242,000 for the three months ended June 30, 2016, from the previously reported income tax provisions in the condensed consolidated statements of operations for the first, second, and third quarter, respectively, during fiscal year 2016. Lastly, the adoption of ASU 2016-09 resulted in $541,000 for payments for tax withholdings for equity awards previously recorded in operating activities on the consolidated statements of cash flows for fiscal year 2015 now being recorded in financing activities for fiscal year 2015. |
Significant Accounting Polici26
Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Estimated Life of Property and Equipment | Useful lives for purposes of computing depreciation are as follows: Years Buildings and improvements 5-40 Machinery and equipment 3-10 Furniture and fixtures 5-10 Vehicles 3-5 |
Product Concentration Risk [Member] | Sales [Member] | |
Summary of Percentages of Revenue Generated by Products and Services | The following table sets forth percentages of our revenue generated by certain products and services, for each of last three fiscal years. 2014 2015 2016 New boat sales 65.2 % 64.3 % 68.5 % Used boat sales 16.8 % 19.9 % 17.5 % Maintenance, repair, storage, and charter services 7.8 % 6.9 % 6.0 % Finance and insurance products 2.6 % 2.5 % 2.5 % Parts and accessories 5.1 % 4.1 % 3.5 % Brokerage sales 2.5 % 2.3 % 2.0 % Total revenue 100.0 % 100.0 % 100.0 % |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Accounts Receivable, Net | Accounts receivable, net consisted of the following as of September 30, 2015 2016 (Amounts in thousands) Trade receivables $ 13,010 $ 16,296 Amounts due from manufacturers 4,879 7,386 Other receivables 585 901 $ 18,474 $ 24,583 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories, net, consisted of the following as of September 30, 2015 2016 (Amounts in thousands) New boats, motors, and trailers $ 230,359 $ 276,786 Used boats, motors, and trailers 36,992 37,591 Parts, accessories, and other 6,524 7,601 $ 273,875 $ 321,978 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of the following as of September 30, 2015 2016 (Amounts in thousands) Land $ 43,090 $ 50,568 Buildings and improvements 78,425 93,175 Machinery and equipment 24,709 27,634 Furniture and fixtures 3,199 3,678 Vehicles 5,846 7,301 155,269 182,356 Accumulated depreciation and amortization (56,282 ) (61,003 ) $ 98,987 $ 121,353 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Components of Income Taxes Provision (Benefit) | The components of our provision (benefit) from income taxes consisted of the following for the fiscal years ended September 30, 2014 2015 2016 (Amounts in thousands) Current provision: Federal $ 46 $ 209 $ 496 State 45 87 73 Total current provision $ 91 $ 296 $ 569 Deferred provision (benefit): Federal — (22,056 ) 11,691 State — (5,654 ) (52 ) Total deferred provision (benefit) — (27,710 ) 11,639 Total income tax provision (benefit) $ 91 $ (27,414 ) $ 12,208 |
Summary of Tax Rates | Below is a reconciliation of the statutory federal income tax rate to our effective tax rate for the fiscal years ended September 30, 2014 2015 2016 Federal tax provision (benefit) 35.0 % 35.0 % 35.0 % State taxes, net of federal effect 4.4 % 3.2 % 3.6 % Stock based compensation 0.2 % 0.4 % (0.5 )% Valuation allowance (42.5 )% (171.5 )% (3.2 )% Foreign rate differential 3.0 % 0.3 % 0.5 % Other 0.7 % 1.3 % (0.3 )% Effective tax rate 0.8 % (131.3 )% 35.1 % |
Components of Deferred Tax Assets | Deferred income taxes reflect the impact of temporary differences between the amount of assets and liabilities recognized for financial reporting purposes and such amounts recognized for income tax purposes. The tax effects of these temporary differences representing the components of deferred tax assets as of September 30, 2015 2016 (Amounts in thousands) Deferred tax assets, net: Inventories $ 1,361 $ 1,095 Accrued expenses 911 919 Depreciation and amortization 5,152 1,497 Stock based compensation 3,776 3,566 Tax loss carryforwards 17,450 13,879 Other 585 573 Long-term deferred tax assets 29,235 21,529 Valuation allowance (1,718 ) (454 ) Net long-term deferred tax assets $ 27,517 $ 21,075 |
Summary of Reconciliation of Unrecognized Tax Benefits | The reconciliation of the total amount recorded for unrecognized tax benefits at the beginning and end of the fiscal years ended September 30, 2015 and 2016 is as follows: 2015 2016 (Amounts in thousands) Unrecognized tax benefits at the beginning of the year $ 234 $ 244 Increases in tax positions for prior years 10 10 Unrecognized tax benefits as of September 30, $ 244 $ 254 |
The Incentive Stock Plans (Tabl
The Incentive Stock Plans (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Incentive Stock Plans Option Activity | The following table summarizes option activity from September 30, 2015 through September 30, 2016: Shares Available for Grant Options Outstanding Aggregate Intrinsic Value (in thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Life Balance as of September 30, 2015 829,854 1,937,874 $ 6,285 $ 12.95 6.5 Options authorized — — — Options granted (5,000 ) 5,000 16.97 Options cancelled/forfeited/expired 219,262 (219,262 ) 24.70 Options exercised — (272,510 ) 6.89 Restricted stock awards granted (281,260 ) — — Restricted stock awards forfeited 11,500 — — Additional shares of stock issued (42,253 ) — — Balance as of September 30, 2016 732,103 1,451,102 $ 12,397 $ 12.33 6.0 Exercisable as of September 30, 2016 767,434 $ 9,064 $ 9.21 4.8 |
Weighted Average Assumptions of Incentive Stock Plans | The following are the weighted-average assumptions used for the fiscal years ended September 30, 2014 2015 2016 Dividend yield 0.0% 0.0% 0.0% Risk-free interest rate 0.7% 0.9% 1.0% Volatility 55.7% 47.4% 48.2% Expected life 3.2 years 3.1 years 5.0 years |
Employee Stock Purchase Plan (T
Employee Stock Purchase Plan (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Weighted Average Assumptions of Employee Stock Purchase Plan | The following are the weighted-average assumptions used for the fiscal years ended September 30, 2014 2015 2016 Dividend yield 0.0% 0.0% 0.0% Risk-free interest rate 0.1% 0.1% 0.2% Volatility 39.6% 36.1% 50.9% Expected life Six months Six months Six months |
Restricted Stock Awards (Tables
Restricted Stock Awards (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Restricted Stock Award Activity | The following table summarizes restricted stock award activity from September 30, 2015 through September 30, 2016: Shares/ Units Weighted Average Grant Date Fair Value Non-vested balance as of September 30, 2015 111,000 $ 19.23 Changes during the period Awards granted 281,260 $ 14.97 Awards vested (49,855 ) $ 18.13 Awards forfeited (11,500 ) $ 15.01 Non-vested balance as of September 30, 2016 330,905 $ 16.07 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Income Per Share | The following is a reconciliation of the shares used in the denominator for calculating basic and diluted net income per share for the fiscal years ended September 30, 2014 2015 2016 Weighted average common shares outstanding used in calculating basic income per share 23,916,238 24,466,243 24,203,947 Effect of dilutive options and non-vested restricted stock awards 739,024 636,046 616,900 Weighted average common and common equivalent shares used in calculating diluted income per share 24,655,262 25,102,289 24,820,847 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Future Minimum Lease Payments Under Non-cancelable Operating Leases | Future minimum lease payments under non-cancelable operating leases as of September 30, 2016, were as follows: (Amounts in thousands) 2017 5,810 2018 5,306 2019 5,071 2020 5,131 2021 4,477 Thereafter 23,548 Total $ 49,343 |
Quarterly Financial Data (Una36
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Financial Information | The following table sets forth certain unaudited quarterly financial data for each of our last eight quarters. The information has been derived from unaudited financial statements that we believe reflect all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of such quarterly financial information. December 31, 2014 March 31, 2015 June 30, 2015 September 30, 2015 December 31, 2015 March 31, 2016 June 30, 2016 September 30, 2016 (Amounts in thousands except share and per share data) Revenue $ 158,126 $ 172,143 $ 231,849 $ 189,252 $ 169,537 $ 199,566 $ 345,592 $ 227,355 Cost of sales 120,671 129,943 174,809 141,180 127,923 150,539 266,690 170,870 Gross profit 37,455 42,200 57,040 48,072 41,614 49,027 78,902 56,485 Selling, general, and administrative expenses 36,095 40,557 41,049 41,734 38,951 43,459 54,325 49,041 Income from operations 1,360 1,643 15,991 6,338 2,663 5,568 24,577 7,444 Interest expense 1,146 1,253 1,141 914 1,227 1,582 1,473 1,180 Income before income income tax (benefit) provision 214 390 14,850 5,424 1,436 3,986 23,104 6,264 Income tax (benefit) provision — — — (27,414 ) 748 1,497 9,285 678 Net income $ 214 $ 390 $ 14,850 $ 32,838 $ 688 $ 2,489 $ 13,819 $ 5,586 Net income per share: Diluted $ 0.01 $ 0.02 $ 0.59 $ 1.32 $ 0.03 $ 0.10 $ 0.56 $ 0.22 Weighted average number of shares: Diluted 24,947,968 25,265,857 25,316,092 24,883,360 24,742,330 24,758,826 24,770,980 25,010,193 |
Company Background and Basis 37
Company Background and Basis of Presentation - Additional Information (Detail) | 12 Months Ended | ||
Sep. 30, 2016StoreState | Sep. 30, 2015 | Sep. 30, 2014 | |
Concentration Risk [Line Items] | |||
Number of retail locations | Store | 56 | ||
Number of states wherein retail locations are established | State | 16 | ||
Product Concentration Risk [Member] | Sales [Member] | |||
Concentration Risk [Line Items] | |||
Revenue percentage from sale of boats | 100.00% | 100.00% | 100.00% |
Product Concentration Risk [Member] | Brunswick [Member] | Sales [Member] | |||
Concentration Risk [Line Items] | |||
Revenue percentage from sale of boats | 40.00% | ||
Product Concentration Risk [Member] | Brunswick Sea Ray Boat [Member] | Brunswick [Member] | Sales [Member] | |||
Concentration Risk [Line Items] | |||
Revenue percentage from sale of boats | 24.00% | ||
Product Concentration Risk [Member] | Brunswick Boston Whaler Boats [Member] | Brunswick [Member] | Sales [Member] | |||
Concentration Risk [Line Items] | |||
Revenue percentage from sale of boats | 14.00% | ||
Product Concentration Risk [Member] | Azimut Benetti Groups | Sales [Member] | |||
Concentration Risk [Line Items] | |||
Revenue percentage from sale of boats | 11.00% | ||
Supplier Concentration Risk [Member] | Brunswick [Member] | Sales [Member] | |||
Concentration Risk [Line Items] | |||
Revenue percentage from sale of boats | 53.00% | ||
Geographic Concentration Risk [Member] | Sales [Member] | Florida [Member] | |||
Concentration Risk [Line Items] | |||
Revenue percentage from sale of boats | 55.00% | 53.00% | 52.00% |
Significant Accounting Polici38
Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | |||
Sep. 30, 2016USD ($)Segment | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Apr. 15, 2016USD ($) | |
Significant Accounting Policies [Line Items] | ||||
Inventories market valuation allowance | $ 1,000,000 | $ 1,800,000 | ||
Goodwill | 9,900,000 | |||
Impairment charges | 0 | |||
Total advertising and promotional expenses | 13,500,000 | 10,500,000 | $ 9,500,000 | |
Net of related co-op assistance | $ 730,000 | $ 737,000 | $ 473,000 | |
Number of reporting segment | Segment | 1 | |||
Russo Marine [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Goodwill | $ 8,800,000 |
Significant Accounting Polici39
Significant Accounting Policies - Estimated Life of Property and Equipment (Detail) | 12 Months Ended |
Sep. 30, 2016 | |
Buildings and Improvements [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Property and equipment useful life | 5 years |
Buildings and Improvements [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Property and equipment useful life | 40 years |
Machinery and Equipment [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Property and equipment useful life | 3 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Property and equipment useful life | 10 years |
Furniture and Fixtures [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Property and equipment useful life | 5 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Property and equipment useful life | 10 years |
Vehicles [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Property and equipment useful life | 3 years |
Vehicles [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Property and equipment useful life | 5 years |
Significant Accounting Polici40
Significant Accounting Policies - Summary of Percentages of Revenue Generated by Products and Services (Detail) - Product Concentration Risk [Member] - Sales [Member] | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Product Information [Line Items] | |||
Sales Revenue Goods And Services Net Percentage | 100.00% | 100.00% | 100.00% |
New Boat Sales [Member] | |||
Product Information [Line Items] | |||
Sales Revenue Goods And Services Net Percentage | 68.50% | 64.30% | 65.20% |
Used Boat Sales [Member] | |||
Product Information [Line Items] | |||
Sales Revenue Goods And Services Net Percentage | 17.50% | 19.90% | 16.80% |
Maintenance, Repair, Storage and Charter Services [Member] | |||
Product Information [Line Items] | |||
Sales Revenue Goods And Services Net Percentage | 6.00% | 6.90% | 7.80% |
Finance and Insurance Products [Member] | |||
Product Information [Line Items] | |||
Sales Revenue Goods And Services Net Percentage | 2.50% | 2.50% | 2.60% |
Parts and Accessories [Member] | |||
Product Information [Line Items] | |||
Sales Revenue Goods And Services Net Percentage | 3.50% | 4.10% | 5.10% |
Brokerage Sales [Member] | |||
Product Information [Line Items] | |||
Sales Revenue Goods And Services Net Percentage | 2.00% | 2.30% | 2.50% |
New Accounting Pronouncements -
New Accounting Pronouncements - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||||
Reclassification of current deferred tax assets to noncurrent deferred tax assets | $ 21,075,000 | $ 21,075,000 | $ 27,517,000 | |||
Increase in deferred tax assets and retained earnings | 5,197,000 | |||||
Payments for tax withholdings for equity awards previously recorded in operating activities | 80,000 | 541,000 | ||||
New Accounting Pronouncement, Early Adoption, Effect [Member] | Accounting Standards Update 2015-17 [Member] | ||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||||
Reclassification of current deferred tax assets to noncurrent deferred tax assets | 9,300,000 | |||||
New Accounting Pronouncement, Early Adoption, Effect [Member] | Accounting Standards Update 2016-09 [Member] | ||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||||
Increase in deferred tax assets and retained earnings | $ 5,200,000 | |||||
Income tax benefit | $ 633,000 | $ 67,000 | ||||
Additional income tax expense | $ 242,000 | $ 201,000 | ||||
Payments for tax withholdings for equity awards previously recorded in operating activities | $ 541,000 |
Accounts Receivable - Additiona
Accounts Receivable - Additional Information (Detail) | 12 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Receivable Collection Period | 30 days |
Accounts Receivable - Accounts
Accounts Receivable - Accounts Receivable, Net (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Receivables [Abstract] | ||
Trade receivables | $ 16,296 | $ 13,010 |
Amounts due from manufacturers | 7,386 | 4,879 |
Other receivables | 901 | 585 |
Accounts receivable, net | $ 24,583 | $ 18,474 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Inventory [Line Items] | ||
Inventories, net | $ 321,978 | $ 273,875 |
New Boats, Motors, and Trailers [Member] | ||
Inventory [Line Items] | ||
Inventories, net | 276,786 | 230,359 |
Used Boats, Motors, and Trailers [Member] | ||
Inventory [Line Items] | ||
Inventories, net | 37,591 | 36,992 |
Parts, Accessories, and Other [Member] | ||
Inventory [Line Items] | ||
Inventories, net | $ 7,601 | $ 6,524 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 182,356 | $ 155,269 |
Accumulated depreciation and amortization | (61,003) | (56,282) |
Property and equipment, net | 121,353 | 98,987 |
Land [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 50,568 | 43,090 |
Buildings and Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 93,175 | 78,425 |
Machinery and Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 27,634 | 24,709 |
Furniture and Fixtures [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 3,678 | 3,199 |
Vehicles [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 7,301 | $ 5,846 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Property Plant And Equipment [Abstract] | |||
Depreciation and amortization | $ 7,964 | $ 7,858 | $ 7,281 |
Other Assets - Additional Infor
Other Assets - Additional Information (Detail) - USD ($) | 1 Months Ended | ||
Feb. 28, 2006 | Sep. 30, 2016 | Sep. 30, 2015 | |
Prepaid Expenses and Other Current Assets [Member] | |||
Business Acquisition [Line Items] | |||
Certain real estate assets, held for sale | $ 850,000 | $ 6,700,000 | |
Corporate Joint Venture [Member] | |||
Business Acquisition [Line Items] | |||
Acquired certain real estate and assets | $ 4,000,000 | ||
Great American Marina [Member] | Corporate Joint Venture [Member] | |||
Business Acquisition [Line Items] | |||
Acquired certain real estate and assets | 11,000,000 | ||
Brunswick's Contribution [Member] | Corporate Joint Venture [Member] | |||
Business Acquisition [Line Items] | |||
Acquired certain real estate and assets | $ 7,000,000 |
Short-Term Borrowings - Additio
Short-Term Borrowings - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Jun. 30, 2016 | Oct. 31, 2015 | |
Line Of Credit Facility [Line Items] | ||||
Additional borrowings | $ 69,800,000 | |||
Long-term debt | $ 0 | |||
Minimum [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Current ratio | 1.20% | |||
Borrowing Base Amount and Aging Inventory [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Inventory and working capital needs | $ 166,600,000 | $ 137,200,000 | ||
Interest rate on short-term borrowings | 3.90% | 3.60% | ||
Amended Credit Facility [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Additional extension for two one-year periods | Oct. 31, 2019 | |||
Interest rate for amounts outstanding under the Amended Credit Facility | 3.45% | |||
Amended Credit Facility [Member] | Borrowing Base Amount and Aging Inventory [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Amount of borrowing availability | $ 300,000,000 | $ 260,000,000 | ||
Line of Credit Facility, Description | The June 2016 amendment extended the maturity date of the Credit Facility to October 2019, and the Amended Credit Facility includes two additional one-year extension periods, with lender approval. | |||
Leverage ratio | 2.75% | |||
Credit Facility interest rate description | The interest rate for amounts outstanding under the Amended Credit Facility is 345 basis points above the one-month London Inter-Bank Offering Rate (“LIBOR”). | |||
Debt instrument, covenant compliance | The covenants include provisions that our leverage ratio must not exceed 2.75 to 1.0 and that our current ratio must be greater than 1.2 to 1.0. | |||
Unused line fee on the unused portion of the amended Credit Facility | 0.10% | |||
Advances on new inventory mature date | 1080 days | |||
Advances on used inventory maturity period | 361 days | |||
Advance is subject to a curtailment schedule, periodic basis | 6 months | |||
Real estate property pledged for collateral | $ 0 |
Income Taxes - Components of In
Income Taxes - Components of Income Taxes Provision (Benefit) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Current provision: | ||||||||
Federal | $ 496 | $ 209 | $ 46 | |||||
State | 73 | 87 | 45 | |||||
Total current provision | 569 | 296 | 91 | |||||
Deferred provision (benefit): | ||||||||
Federal | 11,691 | (22,056) | ||||||
State | (52) | (5,654) | ||||||
Total deferred provision (benefit) | 11,639 | (27,710) | ||||||
Total income tax provision (benefit) | $ 678 | $ 9,285 | $ 1,497 | $ 748 | $ (27,414) | $ 12,208 | $ (27,414) | $ 91 |
Income Taxes - Summary of Tax R
Income Taxes - Summary of Tax Rates (Detail) | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | |||
Federal tax provision (benefit) | 35.00% | 35.00% | 35.00% |
State taxes, net of federal effect | 3.60% | 3.20% | 4.40% |
Stock based compensation | (0.50%) | 0.40% | 0.20% |
Valuation allowance | (3.20%) | (171.50%) | (42.50%) |
Foreign rate differential | 0.50% | 0.30% | 3.00% |
Other | (0.30%) | 1.30% | 0.70% |
Effective tax rate | 35.10% | (131.30%) | 0.80% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Asset (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Deferred tax assets, net: | ||
Inventories | $ 1,095 | $ 1,361 |
Accrued expenses | 919 | 911 |
Depreciation and amortization | 1,497 | 5,152 |
Stock based compensation | 3,566 | 3,776 |
Tax loss carryforwards | 13,879 | 17,450 |
Other | 573 | 585 |
Long-term deferred tax assets | 21,529 | 29,235 |
Valuation allowance | (454) | (1,718) |
Net long-term deferred tax assets | $ 21,075 | $ 27,517 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Taxes [Line Items] | |||||
Reversal of deferred tax asset valuation allowance | $ 27,500,000 | ||||
Reduction in income tax provision | $ 1,100,000 | ||||
Unrecognized tax benefits | 254,000 | 244,000 | $ 254,000 | $ 244,000 | $ 234,000 |
Impact on effective tax rate if recognized | 154,000 | $ 154,000 | 154,000 | 154,000 | |
Interest and penalties | 130,000 | $ 120,000 | |||
Domestic Country | |||||
Income Taxes [Line Items] | |||||
Net operating loss (NOL) carryforwards | $ 21,000,000 | $ 21,000,000 | |||
Operating loss carry forwards expiration year | 2,031 | ||||
Share based compensation expenses excludes from net operating loss carryforwards | $ 14,600,000 | ||||
Maximum [Member] | State And Local Jurisdiction | |||||
Income Taxes [Line Items] | |||||
Operating loss carry forwards expiration year | 2,032 |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||
Unrecognized tax benefits at the beginning of the year | $ 244 | $ 234 |
Increases in tax positions for prior years | 10 | 10 |
Unrecognized tax benefits at the ending of the year | $ 254 | $ 244 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Feb. 29, 2016 | Sep. 30, 2015 |
Equity [Abstract] | |||
Shares approved to repurchase | 1,250,000 | ||
Shares purchased | 1,692,016 | 1,363,333 | |
Aggregate purchase price | $ 31,823 | $ 26,292 | |
Remaining shares available for future purchases under share repurchase program, amount | $ 1,100 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Net proceeds from issuance of common stock under incentive compensation, and employee purchase plans | $ 2,701,000 | $ 3,715,000 | $ 4,166,000 |
Tax benefits of options exercised | $ 0 | $ 0 | $ 0 |
The Incentive Stock Plans - Add
The Incentive Stock Plans - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Feb. 28, 2013 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | Jan. 31, 2011 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Weighted average grant fair value of options granted | $ 6.88 | $ 5.80 | $ 6.23 | ||
Total intrinsic value of options exercised | $ 3,600,000 | $ 8,500,000 | $ 4,500,000 | ||
Unrecognized compensation costs related to non-vested options | 1,000,000 | 2,200,000 | |||
Fair value of options vested | $ 163,000 | $ 766,000 | $ 1,900,000 | ||
Incentive Stock Plan 2011 [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Common stock, shares authorized | 1,200,456 | ||||
Additional Common Shares Authorized | 1,000,000 | ||||
Expiration of Plan 2011 | 2021-01 | ||||
Contractual term of plan 2011 | 10 years | ||||
Incentive Stock Plan 2011 [Member] | Subject To Award [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Common stock, shares authorized | 2,000,000 | ||||
Incentive Stock Plan 2011 [Member] | Maximum [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Common stock, shares authorized | 2,200,456 | ||||
Incentive Stock Plan 2007 [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of Common stock shares available | 200,456 | ||||
Incentive Stock Plans [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Weighted average period unrecognized compensation costs related to non-vested options are expected to be recognized | 7 months 6 days | 7 months 6 days |
The Incentive Stock Plans - Inc
The Incentive Stock Plans - Incentive Stock Plans Option Activity (Detail) - Stock Options [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Shares Available for Grant, Beginning Balance | 829,854 | |
Options granted, Shares Available for Grant | (5,000) | |
Options cancelled/forfeited/expired, Shares Available for Grant | 219,262 | |
Restricted stock awards granted, Shares Available for Grant | (281,260) | |
Restricted stock awards forfeited, Shares Available for Grant | 11,500 | |
Additional shares of stock issued, Shares Available for Grant | (42,253) | |
Shares Available for Grant, Ending Balance | 732,103 | 829,854 |
Options Outstanding, Beginning Balance | 1,937,874 | |
Options granted, Options Outstanding | 5,000 | |
Options cancelled/forfeited/expired, Options Outstanding | (219,262) | |
Options exercised, Options Outstanding | (272,510) | |
Options Outstanding, Ending Balance | 1,451,102 | 1,937,874 |
Exercisable as of September 30, 2016, Options Outstanding | 767,434 | |
Aggregate Intrinsic Value | $ 12,397 | $ 6,285 |
Exercisable as of September 30, 2016, Aggregate Intrinsic Value | $ 9,064 | |
Weighted Average Exercise Price, Beginning Balance | $ 12.95 | |
Options granted, Weighted Average Exercise Price | 16.97 | |
Options cancelled/forfeited/expired, Weighted Average Exercise Price | 24.70 | |
Options exercised, Weighted Average Exercise Price | 6.89 | |
Weighted Average Exercise Price, Ending Balance | 12.33 | $ 12.95 |
Exercisable as of September 30, 2016, Weighted Average Exercise Price | $ 9.21 | |
Weighted Average Remaining Contractual Life | 6 years | 6 years 6 months |
Exercisable as of September 30, 2016, Weighted Average Remaining Contractual Life | 4 years 9 months 18 days |
The Incentive Stock Plans - Wei
The Incentive Stock Plans - Weighted Average Assumptions of Incentive Stock Plans (Detail) - Incentive Stock Plans [Member] | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Dividend yield | 0.00% | 0.00% | 0.00% |
Risk-free interest rate | 1.00% | 0.90% | 0.70% |
Volatility | 48.20% | 47.40% | 55.70% |
Expected life | 5 years | 3 years 1 month 6 days | 3 years 2 months 12 days |
Employee Stock Purchase Plan -
Employee Stock Purchase Plan - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |
Feb. 29, 2012 | Sep. 30, 2016 | Sep. 30, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Common stock, shares issued | 25,977,632 | 25,562,994 | |
Stock Purchase Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Additional Common Shares Authorized | 500,000 | ||
Additional Common Shares Authorized | 1,000,000 | ||
Stock Purchase Plan, requisite continuous service | 1 year | ||
Annual offerings description | implementation of up to 10 annual offerings beginning on the first day of October starting in 2008, with each offering terminating on September 30 of the following year. | ||
Closing price of common stock on the first and last day of the offering | 85.00% | ||
Percentage not exceeding to periodic payment of purchase price | 10.00% | ||
Maximum common stock value purchased by participant annually | $ 25,000 | ||
Common stock, shares issued | 767,950 | ||
1998 Employee Stock Purchase Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Additional Common Shares Authorized | 52,837 |
Employee Stock Purchase Plan 60
Employee Stock Purchase Plan - Weighted Average Assumptions of Employee Stock Purchase Plan (Detail) - Stock Purchase Plan [Member] | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Dividend yield | 0.00% | 0.00% | 0.00% |
Risk-free interest rate | 0.20% | 0.10% | 0.10% |
Volatility | 50.90% | 36.10% | 39.60% |
Expected life | 6 months | 6 months | 6 months |
Restricted Stock Awards - Addit
Restricted Stock Awards - Additional Information (Detail) - Restricted Stock Awards [Member] $ in Millions | 12 Months Ended |
Sep. 30, 2016USD ($) | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized compensation cost related to non-vested restricted stock awards | $ 4.2 |
Weighted average period unrecognized compensation costs related to non-vested restricted awards are expected to be recognized | 2 years 4 months 24 days |
Minimum [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Vesting periods of restricted stock award | 2 years |
Percentage of actual amount of award earned based on actual specified performance target met | 0.00% |
Maximum [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Vesting periods of restricted stock award | 4 years |
Percentage of actual amount of award earned based on actual specified performance target met | 200.00% |
Restricted Stock Awards - Restr
Restricted Stock Awards - Restricted Stock Award Activity (Detail) - Restricted Stock Awards [Member] | 12 Months Ended |
Sep. 30, 2016$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Shares/ Units, Non-vested beginning balance | shares | 111,000 |
Shares/ Units, Awards granted | shares | 281,260 |
Shares/ Units, Awards vested | shares | (49,855) |
Shares/ Units, Awards forfeited | shares | (11,500) |
Shares/ Units, Non-vested ending balance | shares | 330,905 |
Weighted Average Grant Date Fair Value, Non-vested beginning balance | $ / shares | $ 19.23 |
Weighted Average Grant Date Fair Value, Awards granted | $ / shares | 14.97 |
Weighted Average Grant Date Fair Value, Awards vested | $ / shares | 18.13 |
Weighted Average Grant Date Fair Value, Awards forfeited | $ / shares | 15.01 |
Weighted Average Grant Date Fair Value, Non-vested ending balance | $ / shares | $ 16.07 |
Net Income Per Share - Basic an
Net Income Per Share - Basic and Diluted Net Income Per Share (Detail) - shares | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | |||||||||||
Weighted average common shares outstanding used in calculating basic income per share | 24,203,947 | 24,466,243 | 23,916,238 | ||||||||
Effect of dilutive options and non-vested restricted stock awards | 616,900 | 636,046 | 739,024 | ||||||||
Weighted average common and common equivalent shares used in calculating diluted income per share | 25,010,193 | 24,770,980 | 24,758,826 | 24,742,330 | 24,883,360 | 25,316,092 | 25,265,857 | 24,947,968 | 24,820,847 | 25,102,289 | 24,655,262 |
Net Income Per Share - Addition
Net Income Per Share - Additional Information (Detail) - shares | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Stock Options [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from earnings per share calculation | 140,521 | 1,553,207 | 1,144,600 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Rental expenses of operating leases | $ 7,100 | $ 6,000 | $ 5,800 |
Recovery of direct costs | 555 | ||
Costs incurred for store closings and lease terminations | 0 | $ 581 | $ 217 |
Workers compensation insurance policies | $ 1,000 |
Commitments and Contingencies66
Commitments and Contingencies - Summary of Future Minimum Lease Payments Under Non-cancelable Operating Leases (Detail) $ in Thousands | Sep. 30, 2016USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2,017 | $ 5,810 |
2,018 | 5,306 |
2,019 | 5,071 |
2,020 | 5,131 |
2,021 | 4,477 |
Thereafter | 23,548 |
Total | $ 49,343 |
Employee 401(k) Profit Sharin67
Employee 401(k) Profit Sharing Plans - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Compensation And Retirement Disclosure [Abstract] | |||
Duration of profit sharing plan | 90 days | ||
Introductory period of profit sharing | April 1 or October 1 | ||
Employees eligibility age for participating in profit sharing plan | 21 years | ||
Total participants contributions in Profit sharing plan | 25.00% | ||
Maximum of each participants compensation | 5.00% | ||
Contribution under the Profit sharing plan | $ 713 | $ 605 | $ 463 |
Quarterly Financial Data - Summ
Quarterly Financial Data - Summary of Quarterly Financial Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 227,355 | $ 345,592 | $ 199,566 | $ 169,537 | $ 189,252 | $ 231,849 | $ 172,143 | $ 158,126 | $ 942,050 | $ 751,370 | $ 624,692 |
Cost of sales | 170,870 | 266,690 | 150,539 | 127,923 | 141,180 | 174,809 | 129,943 | 120,671 | 716,022 | 566,603 | 462,872 |
Gross profit | 56,485 | 78,902 | 49,027 | 41,614 | 48,072 | 57,040 | 42,200 | 37,455 | 226,028 | 184,767 | 161,820 |
Selling, general, and administrative expenses | 49,041 | 54,325 | 43,459 | 38,951 | 41,734 | 41,049 | 40,557 | 36,095 | 185,776 | 159,435 | 146,433 |
Income from operations | 7,444 | 24,577 | 5,568 | 2,663 | 6,338 | 15,991 | 1,643 | 1,360 | 40,252 | 25,332 | 15,387 |
Interest expense | 1,180 | 1,473 | 1,582 | 1,227 | 914 | 1,141 | 1,253 | 1,146 | 5,462 | 4,454 | 4,024 |
Income before income tax provision (benefit) | 6,264 | 23,104 | 3,986 | 1,436 | 5,424 | 14,850 | 390 | 214 | 34,790 | 20,878 | 11,363 |
Income tax (benefit) provision | 678 | 9,285 | 1,497 | 748 | (27,414) | 12,208 | (27,414) | 91 | |||
Net income | $ 5,586 | $ 13,819 | $ 2,489 | $ 688 | $ 32,838 | $ 14,850 | $ 390 | $ 214 | $ 22,582 | $ 48,292 | $ 11,272 |
Net income per share: | |||||||||||
Diluted | $ 0.22 | $ 0.56 | $ 0.10 | $ 0.03 | $ 1.32 | $ 0.59 | $ 0.02 | $ 0.01 | $ 0.91 | $ 1.92 | $ 0.46 |
Weighted average number of shares: | |||||||||||
Diluted | 25,010,193 | 24,770,980 | 24,758,826 | 24,742,330 | 24,883,360 | 25,316,092 | 25,265,857 | 24,947,968 | 24,820,847 | 25,102,289 | 24,655,262 |