Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2020 | Nov. 25, 2020 | Mar. 31, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Sep. 30, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | HZO | ||
Entity Registrant Name | MarineMax, Inc. | ||
Entity Central Index Key | 0001057060 | ||
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 Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Security Exchange Name | NYSE | ||
Title of 12(b) Security | Common Stock, par value $.001 per share | ||
Entity Interactive Data Current | Yes | ||
Entity File Number | 1-14173 | ||
Entity Incorporation, State or Country Code | FL | ||
Entity Tax Identification Number | 59-3496957 | ||
Entity Address, Address Line One | 2600 McCormick Drive | ||
Entity Address, Address Line Two | Suite 200 | ||
Entity Address, City or Town | Clearwater | ||
Entity Address, State or Province | FL | ||
Entity Address, Postal Zip Code | 33759 | ||
City Area Code | 727 | ||
Local Phone Number | 531-1700 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Common Stock, Shares Outstanding | 22,073,368 | ||
Entity Public Float | $ 215,559,040 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 155,493 | $ 38,511 |
Accounts receivable, net | 40,195 | 42,398 |
Inventories, net | 298,002 | 477,468 |
Prepaid expenses and other current assets | 9,637 | 10,206 |
Total current assets | 503,327 | 568,583 |
Property and equipment, net | 141,934 | 144,298 |
Operating lease right-of-use assets, net | 37,991 | |
Goodwill and other intangible assets, net | 84,293 | 64,077 |
Other long-term assets | 7,774 | 7,125 |
Total assets | 775,319 | 784,083 |
CURRENT LIABILITIES: | ||
Accounts payable | 37,343 | 33,674 |
Contract liabilities (customer deposits) | 31,821 | 24,305 |
Accrued expenses | 52,123 | 42,849 |
Current operating lease liabilities | 6,854 | |
Short-term borrowings | 144,393 | 312,065 |
Total current liabilities | 272,534 | 412,893 |
Noncurrent operating lease liabilities | 33,473 | |
Deferred tax liabilities, net | 4,509 | 1,142 |
Long-term debt, net of current maturities | 7,343 | |
Other long-term liabilities | 2,063 | 1,229 |
Total liabilities | 319,922 | 415,264 |
COMMITMENTS AND CONTINGENCIES (Note 17) | ||
SHAREHOLDERS’ EQUITY: | ||
Preferred stock, $.001 par value, 1,000,000 shares authorized, none issued or outstanding as of September 30, 2019 and 2020 | ||
Common stock, $.001 par value; 40,000,000 shares authorized, 27,508,473 and 28,130,312 shares issued and 21,321,688 and 21,863,291 shares outstanding as of September 30, 2019 and 2020, respectively | 28 | 28 |
Additional paid-in capital | 280,436 | 269,969 |
Accumulated other comprehensive (loss) income | 829 | (669) |
Retained earnings | 277,699 | 202,455 |
Treasury stock, at cost, 6,186,785 and 6,267,021 shares held as of September 30, 2019 and 2020, respectively | (103,595) | (102,964) |
Total shareholders’ equity | 455,397 | 368,819 |
Total liabilities and shareholders’ equity | $ 775,319 | $ 784,083 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2020 | Sep. 30, 2019 |
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 | 28,130,312 | 27,508,473 |
Common stock, shares outstanding | 21,863,291 | 21,321,688 |
Treasury stock, shares | 6,267,021 | 6,186,785 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | |||
Revenue | $ 1,509,713 | $ 1,237,153 | $ 1,177,371 |
Cost of sales | 1,111,000 | 914,321 | 879,138 |
Gross profit | 398,713 | 322,832 | 298,233 |
Selling, general and administrative expenses | 291,998 | 262,300 | 235,050 |
Income from operations | 106,715 | 60,532 | 63,183 |
Interest expense | 9,275 | 11,579 | 9,903 |
Income before income tax provision | 97,440 | 48,953 | 53,280 |
Income tax provision | 22,806 | 12,968 | 13,968 |
Net income | $ 74,634 | $ 35,985 | $ 39,312 |
Basic net income per common share | $ 3.46 | $ 1.61 | $ 1.77 |
Diluted net income per common share | $ 3.37 | $ 1.57 | $ 1.71 |
Weighted average number of common shares used in computing net income per common share: | |||
Basic | 21,547,665 | 22,294,114 | 22,269,378 |
Diluted | 22,125,338 | 22,881,147 | 23,030,662 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 74,634 | $ 35,985 | $ 39,312 |
Other comprehensive (loss) gain, net of tax: | |||
Foreign currency translation adjustments | 1,498 | (669) | |
Total other comprehensive (loss) gain, net of tax | 1,498 | (669) | |
Comprehensive income | $ 76,132 | $ 35,316 | $ 39,312 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment [Member] | Common Stock Issued [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Retained Earnings [Member] | Retained Earnings [Member]Cumulative Effect, Period of Adoption, Adjustment [Member] | Treasury Stock [Member] |
Beginning Balance at Sep. 30, 2017 | $ 302,198 | $ 26 | $ 249,974 | $ 126,759 | $ (74,561) | |||
Beginning Balance, Shares at Sep. 30, 2017 | 26,314,066 | |||||||
Net income | 39,312 | 39,312 | ||||||
Purchase of treasury stock | (695) | (695) | ||||||
Shares issued pursuant to employee stock purchase plan | 950 | 950 | ||||||
Shares issued pursuant to employee stock purchase plan, Shares | 67,187 | |||||||
Shares issued upon vesting of equity awards, net of minimum tax withholding | (1,643) | (1,643) | ||||||
Shares issued upon vesting of equity awards, net of minimum tax withholding, Shares | 163,350 | |||||||
Shares issued upon exercise of stock options | 6,733 | $ 1 | 6,732 | |||||
Shares issued upon exercise of stock options, Shares | 586,531 | |||||||
Stock-based compensation | 6,237 | 6,237 | ||||||
Stock-based compensation, Shares | 10,133 | |||||||
Ending Balance at Sep. 30, 2018 | 353,092 | $ 27 | 262,250 | 166,071 | (75,256) | |||
Ending Balance (Accounting Standards Update 2014-09 [Member]) at Sep. 30, 2018 | $ 399 | $ 399 | ||||||
Ending Balance, Shares at Sep. 30, 2018 | 27,141,267 | |||||||
Net income | 35,985 | 35,985 | ||||||
Purchase of treasury stock | (27,708) | (27,708) | ||||||
Shares issued pursuant to employee stock purchase plan | 1,022 | 1,022 | ||||||
Shares issued pursuant to employee stock purchase plan, Shares | 62,287 | |||||||
Shares issued upon vesting of equity awards, net of minimum tax withholding | (1,216) | (1,216) | ||||||
Shares issued upon vesting of equity awards, net of minimum tax withholding, Shares | 174,606 | |||||||
Shares issued upon exercise of stock options | 1,390 | $ 1 | 1,389 | |||||
Shares issued upon exercise of stock options, Shares | 119,275 | |||||||
Stock-based compensation | 6,524 | 6,524 | ||||||
Stock-based compensation, Shares | 11,038 | |||||||
Foreign currency translation adjustments, net of tax | (669) | $ (669) | ||||||
Ending Balance at Sep. 30, 2019 | $ 368,819 | $ 28 | 269,969 | (669) | 202,455 | (102,964) | ||
Ending Balance (Accounting Standards Update 2016-02 [Member]) at Sep. 30, 2019 | $ 610 | $ 610 | ||||||
Ending Balance, Shares at Sep. 30, 2019 | 27,508,473 | 27,508,473 | ||||||
Net income | $ 74,634 | 74,634 | ||||||
Purchase of treasury stock | (631) | (631) | ||||||
Shares issued pursuant to employee stock purchase plan | 1,004 | 1,004 | ||||||
Shares issued pursuant to employee stock purchase plan, Shares | 94,741 | |||||||
Shares issued upon vesting of equity awards, net of minimum tax withholding | (1,659) | (1,659) | ||||||
Shares issued upon vesting of equity awards, net of minimum tax withholding, Shares | 228,304 | |||||||
Shares issued upon exercise of stock options | 3,625 | 3,625 | ||||||
Shares issued upon exercise of stock options, Shares | 286,702 | |||||||
Stock-based compensation | 7,497 | 7,497 | ||||||
Stock-based compensation, Shares | 12,092 | |||||||
Foreign currency translation adjustments, net of tax | 1,498 | 1,498 | ||||||
Ending Balance at Sep. 30, 2020 | $ 455,397 | $ 28 | $ 280,436 | $ 829 | $ 277,699 | $ (103,595) | ||
Ending Balance, Shares at Sep. 30, 2020 | 28,130,312 | 28,130,312 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 74,634 | $ 35,985 | $ 39,312 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 12,772 | 11,597 | 10,673 |
Deferred income tax provision | 3,157 | 4,384 | 5,361 |
Loss on sale of property and equipment | 366 | 956 | 330 |
Gain on insurance settlements | (1,082) | ||
Proceeds from insurance settlements | 703 | 475 | 2,342 |
Gain on contingent acquisition consideration | (1,440) | ||
Stock-based compensation expense, net | 7,497 | 6,524 | 6,237 |
(Increase) Decrease in, net of effects of acquisitions— | |||
Accounts receivable, net | 2,584 | (5,071) | (11,279) |
Inventories, net | 179,466 | (84,330) | 26,773 |
Prepaid expenses and other assets | 101 | (3,182) | (996) |
(Decrease) Increase in, net of effects of acquisitions — | |||
Accounts payable | 2,887 | 8,701 | (3,325) |
Contract liabilities (customer deposits) | 7,411 | 6,804 | (4,065) |
Accrued expenses and other liabilities | 13,097 | 4,731 | 1,573 |
Net cash provided by (used in) operating activities | 304,675 | (12,426) | 70,414 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of property and equipment | (12,807) | (17,061) | (13,804) |
Proceeds from insurance settlements | 461 | 823 | |
Cash used in acquisition of businesses, net of cash acquired | (19,766) | (40,713) | (10,524) |
Proceeds from sale of property and equipment | 2,464 | 979 | 190 |
Net cash used in investing activities | (30,109) | (56,334) | (23,315) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Net borrowings on short-term borrowings | (167,672) | 85,580 | (43,383) |
Proceeds from long-term debt | 7,437 | ||
Payments for long-term debt | (41) | ||
Net proceeds from issuance of common stock under incentive compensation, and employee purchase plans | 4,629 | 2,412 | 7,683 |
Contingent acquisition consideration payments | (148) | (129) | (3,324) |
Payments on tax withholdings for equity awards | (1,703) | (1,525) | (510) |
Purchase of treasury stock | (631) | (27,708) | (695) |
Net cash provided (used in) provided by financing activities | (158,129) | 58,630 | (40,229) |
Effect of exchange rate changes on cash | 545 | (181) | |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS: | 116,982 | (10,311) | 6,870 |
CASH AND CASH EQUIVALENTS, beginning of year | 38,511 | 48,822 | 41,952 |
CASH AND CASH EQUIVALENTS, end of year | 155,493 | 38,511 | 48,822 |
Cash paid for: | |||
Interest | 13,082 | 13,669 | 12,021 |
Income taxes | 18,930 | 9,152 | 9,424 |
Non-cash items: | |||
Accrued tax withholdings upon vesting of equity awards | 1,153 | 1,198 | 1,525 |
Contingent consideration liabilities from acquisitions | 2,270 | 640 | |
Accrued acquisition of property and equipment | 491 | $ 995 | $ 129 |
Accounting Standards Update 2016-02 [Member] | |||
Non-cash items: | |||
Initial operating lease right-of-use assets for adoption of ASU 2016-02 | 42,070 | ||
Initial current and noncurrent operating lease liabilities for adoption of ASU 2016-02 | $ 43,953 |
Company Background and Basis of
Company Background and Basis of Presentation | 12 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Company Background and Basis of Presentation | 1. COMPANY BACKGROUND AND BASIS OF PRESENTATION: We are the largest recreational boat and yacht 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 yachts in the British Virgin Islands. As of September 30, 2020, we operated through 57 retail locations in 16 states, consisting of Alabama, Connecticut, Florida, Georgia, Maryland, Massachusetts, Minnesota, Missouri, New Jersey, New York, North Carolina, Ohio, Oklahoma, Rhode Island, South Carolina, and Texas. Our MarineMax Vacations operations maintain a facility in Tortola, British Virgin Islands. We also own Fraser Yachts Group and Northrop & Johnson, leading superyacht brokerage and luxury yacht services companies with operations in multiple countries. 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 33% of our revenue in fiscal 2020. Sales of new Sea Ray and Boston Whaler boats, both divisions of Brunswick, accounted for approximately 15% and 16%, respectively, of our revenue in fiscal 2020. Brunswick is a world leading manufacturer of marine products and marine engines. We have dealership agreements with Sea Ray, Boston Whaler, Harris, 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 and Benetti yachts and mega 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. The agreements for Sea Ray and Boston Whaler products appoint us as the exclusive dealer of Sea Ray or Boston Whaler boats in our geographic markets. In addition, we are the exclusive dealer for Azimut Yachts for the entire United States. Sales of new Azimut boats and yachts accounted for approximately 9% of our revenue in fiscal 2020. 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. Beginning in March 2020, we had temporarily closed certain departments or locations based on guidance from local government or health officials as a result of the COVID-19 global pandemic . We are As the COVID-19 pandemic is complex and evolving rapidly with many unknowns, the Company will continue to monitor ongoing developments and respond accordingly. As is typical in the industry, we deal with most of our manufacturers, other than Sea Ray, Boston Whaler, 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 51%, 54% and 54% of our revenue during fiscal 2018, 2019, and 2020, respectively, can have a major impact on our operations. Local influences, such as corporate downsizing, military base closings, inclement weather such as Hurricane Sandy in 2012 or Hurricanes Harvey and Irma in 2017, 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 would likely 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 is likely to have a negative effect on our business. Historically, in periods of lower consumer spending and depressed economic conditions, we have, among other things, substantially reduced our acquisition program, delayed new store openings, reduced our inventory purchases, engaged in inventory reduction efforts, closed a number of our retail locations, reduced our headcount, and amended and replaced our credit facility. Acquisitions remain an important strategy for us, and, subject to a number of conditions, including macro-economic conditions and finding attractive acquisition targets, we plan to explore opportunities through this strategy. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2020 | |
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. Fraser Yachts Group customer charter management cash accounts are excluded from cash and cash equivalents. These accounts belong to our customers and we provide management assistance at the request of the customer and for the benefit of the customer. Vendor Consideration Received We account for consideration received from our vendors in accordance with ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)”. ASC 606 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 606, amounts received by us under our co-op assistance programs from our manufacturers are netted against related advertising expenses. Our consideration received from our vendors contains uncertainties because the calculation requires management to make assumptions and to apply judgment regarding a number of factors, including our ability to collect amounts due from vendors and the ability to meet certain criteria stipulated by our vendors. We do not believe there is a reasonable likelihood that there will be a change in the future estimates or assumptions we use to calculate our vendor considerations which would result in a material effect on our operating results. 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 net realizable value. We state parts and accessories at the lower of cost, determined on an average cost basis, or net realizable value. We utilize our historical experience, the aging of the inventories, and our consideration of current market trends as the basis for determining lower of cost or net realizable value. We do not believe there is a reasonable likelihood that there will be a change in the future estimates or assumptions we use to calculate our valuation allowance which would result in a material effect on our operating results. As of September 30, 2019 and 2020, our valuation allowance for new and used boat, motor and trailer inventories was $2.2 million and $2.4 million, respectively. If events occur and market conditions change, causing the fair value to fall below carrying value, the 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 requires the excess purchase price over the estimated fair value of net assets acquired in a business combination to be recorded as goodwill. In July 2020, we purchased Northrop & Johnson, a leading superyacht brokerage and services company. In March 2020, we purchased Boatyard, a digital platform with an expansive range of on-demand services to streamline the boating experience by qualified service providers from a smartphone. In July 2019, we purchased Fraser Yachts Group , a leading superyacht brokerage and largest luxury yacht services company . In April 2019, we purchased Sail & Ski Center, a privately owned boat dealer located in Texas. Goodwill and other intangible assets increased, due to acquisitions, by $37.0 million and $20.2 million, for the fiscal years ended September 30, 2019 and 2020, respectively. These acquisitions have resulted in the recording of goodwill for tax purposes of $10.5 million and $16.8 million, for the fiscal years ended September 30, 2019 and 2020, respectively. In total, current and previous acquisitions have resulted in the recording of $84.3 million in goodwill and other intangible assets as of September 30, 2020. In accordance with ASC 350, we test 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 a reporting unit’s goodwill exceeds its fair value we recognize an impairment loss in accordance with ASC 350. As of September 30, 2020 , 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 a quantitative goodwill impairment. 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 intangible assets 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 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. The analysis is performed at a regional level for indicators of permanent impairment given the geographical interdependencies among our locations. Based upon our most recent analysis, we believe no impairment of long-lived assets existed as of September 30, 2020. 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 The majority of our revenue is from contracts with customers for the sale of boats, motors, and trailers. We recognize revenue from boat, motor, and trailer sales upon transfer of control of the boat, motor, or trailer to the customer, which is generally upon acceptance or delivery to the customer. The transaction price is determined with the customer at time of sale. Customers may trade in boats to apply toward the purchase of a new or used boat. The trade-in is a type of noncash consideration measured at fair value, based on external and internal market data and applied as payment to the contract price for the purchased boat. At the time of acceptance or delivery, the customer is able to direct the use of, and obtain substantially all of the benefits of the boat, motor, or trailer at such time. We recognize commissions earned from a brokerage sale when the related brokerage transaction closes upon transfer of control of the boat, motor, or trailer to the customer, which is generally upon acceptance or delivery to the customer. We do not directly finance our customers’ boat, motor, or trailer purchases. In many cases, we assist with third-party financing for boat, motor, and trailer sales. 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. Pursuant to negotiated agreements with financial institutions, we are charged back for a portion of these fees should the customer terminate or default on the related finance contract before it is outstanding for a stipulated minimum period of time. We base the chargeback allowance, which was not mate rial to the consolidated financial statements taken as a whole as of September 30, 2020 , on our experience with repayments or defaults on the related finance contracts. We recognize variable consideration from commissions earned on extended warranty service contracts sold on behalf of third-party insurance companies at generally the later of customer acceptance of the service contract terms as evidenced by contract execution or recognition of the related boat sale. We also recognize variable consideration from marketing fees earned on 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. We recognize revenue from parts and service operations (boat maintenance and repairs) over time as services are performed. Each boat maintenance and repair service is a single performance obligation that includes both the parts and labor associated with the service. Payment for boat maintenance and repairs is typically due upon the completion of the service, which is generally completed within a short period of time from contract inception. We satisfy our performance obligations, transfer control, and recognize revenue over time for parts and service operations because we are creating a contract asset with no alternative use and we have an enforceable right to payment for performance completed to date. Contract assets primarily relate to our right to consideration for work in process not yet billed at the reporting date associated with maintenance and repair services. We use an input method to recognize revenue and measure progress based on labor hours expended to satisfy the performance obligation at average labor rates. We have determined labor hours expended to be the relevant measure of work performed to complete the maintenance and repair service for the customer. As a practical expedient, because repair and maintenance service contracts have an original duration of one year or less, we do not consider the time value of money, and we do not disclose estimated revenue expected to be recognized in the future for performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period or when we expect to recognize such revenue. Contract liabilities primarily consist of customer deposits. We recognize contract liabilities (customer deposits) as revenue at the time of delivery or acceptance by the customers. Total contract liabilities of approximately $24.3 million recorded as of September 30, 2019 were recognized in revenue during the fiscal year ended September 30, 2020. Contract assets, recorded in prepaid expenses and other current assets, totaled approximately $2.5 million and $2.6 million as of September 30, 2019 and September 30, 2020, respectively. We recognize deferred revenue from service operations and slip and storage services over time on a straight-line basis over the term of the contract as our performance obligations are met. We recognize income from the rentals of chartering power and sailing yachts over time on a straight-line basis over the term of the contract as our performance obligations are met. The following table sets forth percentages on the timing of revenue recognition for the fiscal years ended September 30, Fiscal Year Ended Fiscal Year Ended September 30, September 30, 2019 2020 Goods and services transferred at a point in time 90.8 % 92.7 % Goods and services transferred over time 9.2 % 7.3 % Total Revenue 100.0 % 100.0 % The following table sets forth percentages of our revenue generated by certain products and services, for each of last three fiscal years. 2018 2019 2020 New boat sales 71.2 % 70.1 % 70.2 % Used boat sales 14.8 % 14.9 % 15.1 % Maintenance, repair, storage, and charter services 6.2 % 6.9 % 6.4 % Finance and insurance products 2.4 % 2.6 % 2.7 % Parts and accessories 3.6 % 3.6 % 3.0 % Brokerage sales 1.8 % 1.9 % 2.6 % 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. Leases We lease numerous facilities relating to our operations. See Note 7 of the Notes to Consolidated Financial Statements for a discussion of our significant accounting policies related to leases. Foreign Currency Transactions For the Company’s foreign subsidiaries that use a currency other than the U.S. dollar as their functional currency, the assets and liabilities are translated at exchange rates in effect at the balance sheet date, and revenues and expenses are translated at the weighted average exchange rate for the period. The effects of these translation adjustments are reported in accumulated other comprehensive income. Gains and losses arising from transactions denominated in a currency other than the functional currency of the entity involved are included in operating income. As of September 30, 2020, our accumulated other comprehensive income, net of tax, was $0.8 million. As of September 30, 2019, our accumulated other comprehensive loss, net of tax, was $0.7 million. The change in accumulated other comprehensive income was the result of foreign currency translation adjustments net of taxes. No amounts were reclassified out of accumulated other comprehensive income in fiscal 2020. 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 606, 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 $16.5 million, $18.8 million and $14.0 million, net of related co-op assistance of approximately $653,000, $807,000, and $589,000, for the fiscal years ended September 30, 2018, 2019, and 2020, 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 Our financial instruments include cash and cash equivalents, accounts receivable, accounts payable, other payables and accrued expenses and debt. The carrying values of cash and cash equivalents, accounts receivable, accounts payable, other payables and accrued expenses approximate their fair values due to their short-term nature. The carrying value of debt approximates its fair value due to the debt agreements bearing interest at rates that approximate current market rates for debt agreements with similar maturities and credit quality. 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, valuation of contingent consideration, 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, 2020 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Pronouncements | 3. NEW ACCOUNTING PRONOUNCEMENTS: Revenue Recognition In May 2014, the FASB issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”), 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. The FASB also subsequently issued several amendments to the standard, including clarification on principal versus agent guidance, identifying performance obligations, and immaterial goods and services in a contract. The new accounting standard update must be applied using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a modified retrospective approach with the cumulative effect of initially adopting the standard recognized at the date of adoption (which requires additional footnote disclosures). The new accounting standard is effective for reporting periods beginning after December 15, 2017. We adopted the accounting standard effective October 1, 2018, using the modified retrospective approach applied only to contracts not completed as of the date of adoption, with no restatement of comparative periods. Therefore, the comparative information has not been adjusted and continues to be reported under ASC Topic 605. We recognized a net after-tax cumulative effect adjustment to retained earnings of $399,000 as of the date of adoption. The details and quantitative impacts of the significant changes are described below. We previously recognized revenue for parts and service operations (boat maintenance and repairs) when the services were completed and recorded amounts due to us as receivables. Under ASC Topic 606, performance obligations associated with parts and service operations are satisfied over time, which results in the acceleration of revenue recognition, and amounts due to us are reflected as a contract asset until the right to such consideration becomes unconditional, at which time amounts due to us are reclassified to receivables. Consolidated Balance Sheet Line Items Impact of changes in accounting policies Balances without Impact of adoption of ASC adoption September 30, 2019 As Reported Topic 606 Higher/(Lower) Inventories, net $ 477,468 $ 477,405 $ 63 Prepaid expenses and other current assets 10,206 7,681 2,525 Accounts payable 33,674 33,708 (34 ) Accrued expenses 42,849 40,669 2,180 Deferred tax liabilities 1,142 1,005 137 Retained earnings $ 202,455 $ 202,150 $ 305 Consolidated Statements of Operations Line Items Impact of changes in accounting policies Balances without Impact of adoption of ASC adoption Fiscal Year Ended September 30, 2019 As Reported Topic 606 Higher/(Lower) Revenue $ 1,237,153 $ 1,237,899 $ (746 ) Cost of sales 914,321 914,939 (618 ) Income from operations 60,532 60,660 (128 ) Income before income tax provision 48,953 49,081 (128 ) Income tax provision 12,968 13,002 (34 ) Net Income $ 35,985 $ 36,079 $ (94 ) Consolidated Statements of Cash flows Impact of changes in accounting policies Balances without Impact of adoption of ASC adoption Fiscal Year Ended September 30, 2019 As Reported Topic 606 Higher/(Lower) Net income $ 35,985 $ 36,079 $ (94 ) (Increase) decrease in — Inventories, net (84,330 ) (83,712 ) (618 ) Prepaid expenses and other assets (3,182 ) (1,748 ) (1,434 ) Increase (decrease) in — Accounts payable 8,701 8,735 (34 ) Accrued expenses and other long-term liabilities $ 4,731 $ 2,551 $ 2,180 Accounting for Leases 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. ASU 2016-02 was effective for annual reporting periods beginning on or after December 15, 2018, and interim periods within those annual periods. Earlier application was permitted for all entities as of the beginning of an interim or annual period. Subsequent amendments to the standard provide an additional and optional transition method that allows entities to initially apply the new standard at the adoption date and recognize a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. An entity’s reporting for the comparative periods presented in the financial statements in which it adopts the new leases standard will continue to be in accordance with current GAAP (ASC Topic 840) if the optional transition method is elected. We adopted ASU 2016-02 effective October 1, 2019 the first day of fiscal 2020. We elected the package of practical expedients available under the transition guidance within the new standard, which among other things, allowed us to carry forward the historical lease classification of our existing leases. Consequently, on adoption, we recognized additional operating lease liabilities of $ 44.0 million and right-of-use (“ROU”) assets of $ 42.1 million. The new standard also provides practical expedients for an entity’s ongoing accounting. We elected the short-term lease recognition exemption for all leases that qualify. As a result, for those leases that qualify, we will not recognize ROU assets or lease liabilities, and we did not recognize ROU assets or lease liabilities for existing short-term leases of those assets in transition. We also elected the practical expedient to not separate lease and non-lease components. We recognized a net after-tax cumulative effect adjustment to retained earnings of $ 0.6 million as of the date of adoption. See Note 7 for additional information on our leases. Other New Pronouncements In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract, which aligns the accounting for implementation costs incurred in a cloud computing arrangement that is a service contract with the guidance on capitalizing costs associated with developing or obtaining internal-use software. The guidance amends Accounting Standards Codification (ASC) 350 to include in its scope implementation costs of a cloud computing arrangement that is a service contract and clarifies that a customer should apply ASC 350 to determine which implementation costs should be capitalized in such a cloud computing arrangement. This guidance is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2019. We are currently evaluating the impact that this standard will have on our consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses. ASU 2016-13 requires entities to report “expected” credit losses on financial instruments and other commitments to extend credit rather than the current “incurred loss” model. These expected credit losses for financial assets held at the reporting date are to be based on historical experience, current conditions, and reasonable and supportable forecasts. This ASU will also require enhanced disclosures relating to significant estimates and judgments used in estimating credit losses, as well as the credit quality. This guidance is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2019. We are currently evaluating the impact that this standard will have on our consolidated financial statements . |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Sep. 30, 2020 | |
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, 2019 or 2020, 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, 2019 2020 (Amounts in thousands) Trade receivables, net $ 29,750 $ 31,289 Amounts due from manufacturers 11,245 7,575 Other receivables 1,403 1,331 $ 42,398 $ 40,195 |
Inventories
Inventories | 12 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | 5. INVENTORIES: Inventories, net, consisted of the following as of September 30, 2019 2020 (Amounts in thousands) New boats, motors, and trailers $ 413,335 $ 252,605 Used boats, motors, and trailers 56,363 36,686 Parts, accessories, and other 7,770 8,711 $ 477,468 $ 298,002 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Sep. 30, 2020 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 6. PROPERTY AND EQUIPMENT: Property and equipment consisted of the following as of September 30, 2019 2020 (Amounts in thousands) Land $ 56,549 $ 55,549 Buildings and improvements 112,892 115,394 Machinery and equipment 36,368 39,416 Furniture and fixtures 4,995 5,233 Vehicles 11,292 12,612 222,096 228,204 Accumulated depreciation and amortization (77,798 ) (86,270 ) $ 144,298 $ 141,934 Depreciation and amortization expense on property and equipment totaled approximately $10.7 million, $11.6 million, and $12.8 million for the fiscal years ended September 30, 2018, 2019, and 2020, respectively. |
Leases
Leases | 12 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | 7. LEASES: The majority of leases that we enter into are real estate leases. consolidated balance sheet. Our real estate and equipment leases often require that we pay maintenance in addition to rent. Additionally, our real estate leases generally require payment of real estate taxes and insurance. Maintenance, real estate taxes, and insurance payments are generally variable and based on actual costs incurred by the lessor. Therefore, these amounts are not included in the consideration of the contract when determining the ROU asset and lease liability, but are reflected as variable lease expenses. A majority of our lease agreements include fixed rental payments. Certain of our lease agreements include fixed rental payments that are adjusted periodically by a fixed rate or changes in an index. The fixed payments, including the effects of changes in the fixed rate or amount, and renewal options reasonably certain to be exercised, are included in the measurement of the related lease liability. Most of our real estate leases include one or more options to renew, with renewal terms that can extend the lease term from one to five years or more. The exercise of lease renewal options is at our sole discretion. If it is reasonably certain that we will exercise such options, the periods covered by such options are included in the lease term and are recognized as part of our right of use assets and lease liabilities. The depreciable life of assets and leasehold improvements are limited by the expected lease term, which includes renewal options reasonably certain to be exercised . For our incremental borrowing rate, we generally use a portfolio approach to determine the discount rate for leases with similar characteristics . As of September 30, 2020, maturities of lease liabilities are summarized as follows: (Amounts in thousands) 2021 $ 9,433 2022 7,658 2023 6,654 2024 5,138 2025 3,590 Thereafter 27,768 Total lease payments 60,241 Less: interest (19,914 ) Present value of lease liabilities $ 40,327 Under the previous lease accounting prior to the adoption of ASC 842, future minimum annual rental commitments for operating leases as of September 30, 2019 were as follows: (Amounts in thousands) 2020 9,480 2021 8,148 2022 6,906 2023 6,329 2024 5,003 Thereafter 29,111 Total $ 64,977 Supplemental cash flow information related to leases was as follows (amounts in thousands): For the Year Ended September 30, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 10,209 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 3,811 The Company reports the amortization of ROU assets and the change in operating lease liabilities on a net basis in accrued expenses and other liabilities in the accompanying Consolidated Statements of Cash Flows. |
Goodwill Intangible Assets and
Goodwill Intangible Assets and Other Long Term Assets | 12 Months Ended |
Sep. 30, 2020 | |
Goodwill Intangible Assets And Other Long Term Assets Disclosure [Abstract] | |
Goodwill Intangible Assets and Other Long Term Assets | 8. GOODWILL, INTANGIBLE ASSETS, AND OTHER LONG-TERM ASSETS: In total, current and previous acquisitions have resulted in the recording of $64.1 million and $84.3 million in goodwill and other intangible assets as of September 30, 2019 and 2020, respectively. Our previous acquisitions and fiscal 2020 acquisitions have not resulted in recording any significant identifiable intangible assets besides goodwill. See Note 2 of the Notes to Consolidated Financial Statements for more information about our annual impairment tests of goodwill and recent acquisitions. |
Short-Term Borrowings and Long-
Short-Term Borrowings and Long-Term Debt | 12 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowings and Long-Term Debt | 9. SHORT-TERM BORROWINGS AND LONG-TERM DEBT: Short-term Borrowings In May 2020, we entered into a Loan and Security Agreement (the “Credit Facility”), with Wells Fargo Commercial Distribution Finance LLC, M&T Bank, Bank of the West, and Truist Bank. The Credit Facility provides the Company a line of credit with asset based borrowing availability of up to $440 million for working capital and inventory financing, with the amount permissible pursuant to a borrowing base formula. The Credit Facility has a three-year May 2023 The 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 Credit Facility is 345 basis points plus the greater of 75 basis points or the one-month LIBOR. There is an unused line fee of ten basis points on the unused portion of the Credit Facility. New inventory borrowing eligibility will generally mature 1,080 days from the original invoice date. Used inventory borrowing eligibility will generally mature 361 days from the date we acquire the used inventory. The collateral for the Credit Facility is all of our personal property with certain limited exceptions. None of our real estate has been pledged for collateral for the Credit Facility. As of September 30, 2020, our indebtedness associated with financing our inventory and working capital needs totaled approximately $144.4 million. As of September 30, 2019 and 2020, the interest rate on the outstanding short-term borrowings was approximately 5.6% and 4.2%, respectively. As of September 30, 2020, our additional available borrowings under our Credit Facility were approximately $82.0 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. However, we rely on our 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 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 Credit Facility to fund our operations. Any inability to utilize our 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. Long-term Debt As of September 30, 2020 we had approximately $7.4 million under a mortgage facility secured by one of our retail locations. The interest rate for amounts outstanding under the mortgage facility is prime minus 100 basis points with a floor of 2.00%. As of September 30, 2020, the interest rate on amounts outstanding was 2.25%. The mortgage facility requires monthly principal and interest payments with a balloon payment of approximately $4.0 million due August 2027 |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. INCOME TAXES: Earnings before income taxes consisted of the following components for the fiscal years ended September 30, 2018 2019 2020 (Amounts in thousands) Earnings before income taxes United States $ 53,280 $ 46,986 $ 94,854 Other — 1,967 2,586 Total $ 53,280 $ 48,953 $ 97,440 The components of our provision from income taxes consisted of the following for the fiscal years ended September 30, 2018 2019 2020 (Amounts in thousands) Current provision: Federal $ 8,055 $ 7,933 $ 17,654 Foreign — 516 654 State 195 135 1,365 Total current provision $ 8,250 $ 8,584 $ 19,673 Deferred provision: Federal 4,205 2,285 2,262 Foreign — — — State 1,513 2,099 871 Total deferred provision 5,718 4,384 3,133 Total income tax provision $ 13,968 $ 12,968 $ 22,806 On December 22, 2017, the Tax Act was enacted which, among a number of its provisions, lowered the U.S. corporate tax rate from 35% to 21%, effective January 1, 2018. The Company’s blended statutory tax rate for fiscal year 2018 was approximately 24.5% as a result of the change in statutory rates. For fiscal year 2018, we recorded a non-cash adjustment to income tax expense of $805,000 for the remeasurement of deferred taxes on the enactment date. Below is a reconciliation of the statutory federal income tax rate to our effective tax rate for the fiscal years ended September 30, 2018 2019 2020 Federal tax provision 24.5 % 21.0 % 21.0 % State taxes, net of federal effect 4.1 % 4.1 % 3.1 % Stock based compensation (2.0 )% — (0.5 )% Valuation allowance (0.3 )% (0.1 )% (0.2 )% Foreign rate differential — 0.2 % 0.1 % Effect of Federal Tax Reform 1.5 % — — Other (1.6 )% 1.3 % (0.1 )% Effective tax rate 26.2 % 26.5 % 23.4 % 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, 2019 2020 (Amounts in thousands) Deferred tax assets: Inventories $ 774 $ 808 Operating lease right-of-use assets - $ 9,926 Accrued expenses 492 640 Stock based compensation 2,388 2,170 Tax loss carryforwards 2,316 810 Other 562 268 Valuation allowance (164 ) - Total long-term deferred tax assets 6,368 14,622 Deferred tax liabilities: Depreciation and amortization (7,510 ) (9,095 ) Operating lease liabilities - (10,036 ) Total long-term deferred tax liabilities $ (7,510 ) $ (19,131 ) Net deferred tax liabilities $ (1,142 ) $ (4,509 ) Pursuant to ASC 740, we must consider all positive and negative evidence regarding the realization of deferred tax assets. ASC 740 provides 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, 2020, 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. The Company included a $164,000 reversal of its outstanding valuation allowance due to the likelihood that the Company would use these deferred tax assets prior to the statute of limitations. The valuation allowance related to net operating loss (NOL) carryforwards in jurisdictions where the Company has expanded operations. As of September 30, 2017, we no longer had federal NOL carryforwards for federal income tax purposes. As of September 30, 2020, the Company has state NOL carryforwards of approximately $15.4 million for state income tax purposes, which resulted in a deferred tax asset of $0.8 million, and expire at various dates from 2029 through 2032. Significant judgment is required in evaluating our uncertain tax positions. Although we believe our tax return positions are sustainable, we recognize tax benefits from uncertain tax positions in the financial statements only when it is more likely than not that the positions will not be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits and a consideration of the relevant taxing authority’s administrative practices and precedents. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will impact the provision for income taxes in the period in which such determination is made. The provision for income taxes includes the impact of reserve provisions and changes to reserves that are considered appropriate, as well as the related net interest and penalties. 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 2015, we are not subject to assessments prior to the 2014 fiscal year for the majority of the State jurisdictions and we are not subject to assessments prior to the 2014 calendar year for the majority of the foreign jurisdictions. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Shareholders' Equity | 11. SHAREHOLDERS’ EQUITY: In March 2020, our Board of Directors approved a new share repurchase plan allowing the Company to repurchase up to 10 million shares of our common stock through March 2022. 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, 2020 we had purchased an aggregate of 6,267,021 shares of common stock under the current and historical share repurchase plans for an aggregate purchase price of approximately $103.6 million. As of September 30, 2020, approximately 9.9 million shares remained available for future purchases under the share repurchase program. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 12. 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 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, 2018, 2019 and 2020 was approximately $7.7 million, $2.4 million, and $4.6 million, respectively. 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, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
The Incentive Stock Plans | 13. THE INCENTIVE STOCK PLANS: During February 2020, our shareholders approved a proposal to amend the 2011 Stock-Based Compensation Plan (“2011 Plan”) to increase the 3,200,456 share threshold by 1,000,000 shares to 4,200,456 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 shareholder value. Subsequent to the February 2020 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 4,000,000 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 dates 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, 2019 through September 30, 2020: 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, 2019 715,590 484,031 $ 1,569 $ 12.42 3.7 Shares authorized 1,000,000 — — — Options granted — — — — Options cancelled/forfeited/expired — — — — Options exercised — (287,702 ) — 12.63 Restricted stock awards granted (477,271 ) — — — Restricted stock awards forfeited 49,188 — — — Additional shares of stock issued (12,092 ) — — — Balance as of September 30, 2020 1,275,415 196,329 $ 2,636 $ 12.12 2.5 Exercisable as of September 30, 2020 196,239 $ 2,636 $ 12.12 2.5 The weighted-average grant date fair value of options granted during the fiscal year ended September 30, 2018 was $8.42. No options were granted during the fiscal years ended September 30, 2019 and September 30, 2020. The total intrinsic value of options exercised during the fiscal years ended September 30, 2018, 2019 and 2020 was approximately $6.3 million, $1.4 million, and $3.8 million, respectively. The total fair value of options vested during the fiscal year ended September 30, 2018, was approximately $1.3 million. We used the Black-Scholes model to estimate the fair value of options granted. The expected term of options granted is estimated based on historical experience. 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. Below are the weighted-average assumptions used for the fiscal year ended September 30, 2018. No options were granted for the fiscal years ended September 30, 2019 or September 30, 2020. 2018 2019 2020 Dividend yield 0.0% — — Risk-free interest rate 2.7% — — Volatility 45.4% — — Expected life 5.0 years — — |
Employee Stock Purchase Plan
Employee Stock Purchase Plan | 12 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Employee Stock Purchase Plan | 14. EMPLOYEE STOCK PURCHASE PLAN: During February 2019, our shareholders approved a proposal to amend our Amended 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 1,500,000 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 annual offerings beginning on the first day of October in each of the years 2008 through 2027, 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. 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, 2018 2019 2020 Dividend yield 0.0% 0.0% 0.0% Risk-free interest rate 1.5% 2.4% 0.8% Volatility 49.9% 48.3% 69.7% Expected life Six months Six months Six months As of September 30, 2020, we had issued 1,017,563 shares of common stock under our Stock Purchase Plan. |
Restricted Stock Awards
Restricted Stock Awards | 12 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Restricted Stock Awards | 15. RESTRICTED STOCK AWARDS: We have granted non-vested (restricted) stock awards (“restricted stock”) and restricted stock units (“RSUs”) to employees, Directors, 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 175% 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, 2019 through September 30, 2020: Shares/ Units Weighted Average Grant Date Fair Value Non-vested balance as of September 30, 2019 779,627 $ 18.71 Changes during the period Awards granted 477,271 $ 17.07 Awards vested (305,079 ) $ 17.78 Awards forfeited (49,188 ) $ 20.08 Non-vested balance as of September 30, 2020 902,631 $ 18.08 As of September 30, 2020, we had approximately $8.1 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 2.1 years. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | 16. 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, 2018 2019 2020 Weighted average common shares outstanding used in calculating basic income per share 22,269,378 22,294,114 21,547,665 Effect of dilutive options and non-vested restricted stock awards 761,284 587,033 577,673 Weighted average common and common equivalent shares used in calculating diluted income per share 23,030,662 22,881,147 22,125,338 During the fiscal years ended September 30, 2018, 2019, and 2020 there were 1,288, 10,988, and 9,650 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, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 17. 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. During the fiscal years ended September 30, 2018, 2019, and 2020, we incurred costs associated with store closings and lease terminations of approximately $0, $3.1 million, and $1.7 million, respectively. 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, 2018, 2019, and 2020. In connection with certain of our workers’ compensation insurance policies, we maintain standby letters of credit for our insurance carriers in the amount of $1.1 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, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee 401(k) Profit Sharing Plans | 18. 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 matched 50% 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 $1.9 million, $2.3 million, and $2.7 million for the fiscal years ended September 30, 2018, 2019 and 2020, respectively. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 19. SUBSEQUENT EVENTS: On October 1, 2020, under the Equity Purchase Agreement, dated October 1, 2020, by and among (a) Skipper Marine Holdings, Inc., SSY Holdings, Inc., Michael J. Pretasky, Sr., Michael John Pretasky, Jr. 2014 Trust, Mark Ellerbrock and Robert Ross Tefft, Jr. (collectively the “Skippers Sellers”) and (b) Michael J. Pretasky, Jr., as the representative of the Skippers Sellers, the Company acquired all of the outstanding equity of Skipper Marine Corp., Skipper Marine of Madison, Inc., Skipper Marine of Fox Valley, Inc., Skipper Bud’s of Illinois, Inc., Skipper Marine of Chicago-Land, Inc., Skipper Marine of Michigan, Inc., and Skipper Marine of Ohio, LLC, (collectively, the “Skippers Companies”) for an aggregate purchase price of $55,000,000, subject to certain customary closing and post-closing adjustments including certain holdbacks. The Skippers Sellers have the opportunity to earn additional consideration as part of an earnout subject to the achievement of certain pre-tax earnings levels. The Skippers Sellers will be subject to certain customary post-closing covenants and indemnities. Through the transaction, the Company added 20 locations in Wisconsin, Michigan, Illinois, Ohio, California, Washington and Florida, including 11 marina and storage facilities, expanding the Company’s marina portfolio, and adding to its overall geographic reach in the Great Lakes and the West Coast. The Company is retaining the management of the Skippers Companies. On October 30, 2020, we and the Sea Ray and Boston Whaler Divisions of Brunswick Corporation (each separately “Builder”) each entered into a new Sales and Service Agreement relating to the Builder’s products effective September 1, 2021 and extending through August 31, 2024, under certain conditions, with automatic renewal for successive three-year extensions, unless the agreements are terminated earlier or either party gives the other written notice not less than 6 months prior to the end of the then current term of the agreement that the agreement will not renew at the end of such term. See our Form 8-K filed on November 5, 2020 for a further summary of the agreements. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Sep. 30, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | 20. 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, 2018 March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 March 31, 2020 June 30, 2020 September 30, 2020 Revenue $ 241,937 $ 303,586 $ 383,494 $ 308,136 $ 304,172 $ 308,475 $ 498,304 $ 398,762 Cost of sales 178,459 229,384 285,784 220,694 224,154 229,699 374,851 282,296 Gross profit 63,478 74,202 97,710 87,442 80,018 78,776 123,453 116,466 Selling, general and administrative expenses 54,492 63,976 68,968 74,864 64,386 69,060 74,838 83,714 Income from operations 8,986 10,226 28,742 12,578 15,632 9,716 48,615 32,752 Interest expense 2,516 3,033 2,936 3,094 3,344 3,013 2,133 785 Income before income income tax provision 6,470 7,193 25,806 9,484 12,288 6,703 46,482 31,967 Income tax provision 1,560 1,890 6,719 2,799 3,229 1,638 11,555 6,384 Net income $ 4,910 $ 5,303 $ 19,087 $ 6,685 $ 9,059 $ 5,065 $ 34,927 $ 25,583 Net income per share: Diluted $ 0.21 $ 0.23 $ 0.84 $ 0.31 $ 0.41 $ 0.23 $ 1.58 $ 1.13 Weighted average number of shares: Diluted 23,400,685 23,417,688 22,821,202 21,896,257 21,890,065 21,960,285 22,045,900 22,604,060 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2020 | |
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. Fraser Yachts Group customer charter management cash accounts are excluded from cash and cash equivalents. These accounts belong to our customers and we provide management assistance at the request of the customer and for the benefit of the customer. |
Vendor Consideration Received | Vendor Consideration Received We account for consideration received from our vendors in accordance with ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)”. ASC 606 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 606, amounts received by us under our co-op assistance programs from our manufacturers are netted against related advertising expenses. Our consideration received from our vendors contains uncertainties because the calculation requires management to make assumptions and to apply judgment regarding a number of factors, including our ability to collect amounts due from vendors and the ability to meet certain criteria stipulated by our vendors. We do not believe there is a reasonable likelihood that there will be a change in the future estimates or assumptions we use to calculate our vendor considerations which would result in a material effect on our operating results. |
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 net realizable value. We state parts and accessories at the lower of cost, determined on an average cost basis, or net realizable value. We utilize our historical experience, the aging of the inventories, and our consideration of current market trends as the basis for determining lower of cost or net realizable value. We do not believe there is a reasonable likelihood that there will be a change in the future estimates or assumptions we use to calculate our valuation allowance which would result in a material effect on our operating results. As of September 30, 2019 and 2020, our valuation allowance for new and used boat, motor and trailer inventories was $2.2 million and $2.4 million, respectively. If events occur and market conditions change, causing the fair value to fall below carrying value, the 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 requires the excess purchase price over the estimated fair value of net assets acquired in a business combination to be recorded as goodwill. In July 2020, we purchased Northrop & Johnson, a leading superyacht brokerage and services company. In March 2020, we purchased Boatyard, a digital platform with an expansive range of on-demand services to streamline the boating experience by qualified service providers from a smartphone. In July 2019, we purchased Fraser Yachts Group , a leading superyacht brokerage and largest luxury yacht services company . In April 2019, we purchased Sail & Ski Center, a privately owned boat dealer located in Texas. Goodwill and other intangible assets increased, due to acquisitions, by $37.0 million and $20.2 million, for the fiscal years ended September 30, 2019 and 2020, respectively. These acquisitions have resulted in the recording of goodwill for tax purposes of $10.5 million and $16.8 million, for the fiscal years ended September 30, 2019 and 2020, respectively. In total, current and previous acquisitions have resulted in the recording of $84.3 million in goodwill and other intangible assets as of September 30, 2020. In accordance with ASC 350, we test 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 a reporting unit’s goodwill exceeds its fair value we recognize an impairment loss in accordance with ASC 350. As of September 30, 2020 , 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 a quantitative goodwill impairment. |
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 intangible assets 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 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. The analysis is performed at a regional level for indicators of permanent impairment given the geographical interdependencies among our locations. Based upon our most recent analysis, we believe no impairment of long-lived assets existed as of September 30, 2020. |
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 The majority of our revenue is from contracts with customers for the sale of boats, motors, and trailers. We recognize revenue from boat, motor, and trailer sales upon transfer of control of the boat, motor, or trailer to the customer, which is generally upon acceptance or delivery to the customer. The transaction price is determined with the customer at time of sale. Customers may trade in boats to apply toward the purchase of a new or used boat. The trade-in is a type of noncash consideration measured at fair value, based on external and internal market data and applied as payment to the contract price for the purchased boat. At the time of acceptance or delivery, the customer is able to direct the use of, and obtain substantially all of the benefits of the boat, motor, or trailer at such time. We recognize commissions earned from a brokerage sale when the related brokerage transaction closes upon transfer of control of the boat, motor, or trailer to the customer, which is generally upon acceptance or delivery to the customer. We do not directly finance our customers’ boat, motor, or trailer purchases. In many cases, we assist with third-party financing for boat, motor, and trailer sales. 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. Pursuant to negotiated agreements with financial institutions, we are charged back for a portion of these fees should the customer terminate or default on the related finance contract before it is outstanding for a stipulated minimum period of time. We base the chargeback allowance, which was not mate rial to the consolidated financial statements taken as a whole as of September 30, 2020 , on our experience with repayments or defaults on the related finance contracts. We recognize variable consideration from commissions earned on extended warranty service contracts sold on behalf of third-party insurance companies at generally the later of customer acceptance of the service contract terms as evidenced by contract execution or recognition of the related boat sale. We also recognize variable consideration from marketing fees earned on 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. We recognize revenue from parts and service operations (boat maintenance and repairs) over time as services are performed. Each boat maintenance and repair service is a single performance obligation that includes both the parts and labor associated with the service. Payment for boat maintenance and repairs is typically due upon the completion of the service, which is generally completed within a short period of time from contract inception. We satisfy our performance obligations, transfer control, and recognize revenue over time for parts and service operations because we are creating a contract asset with no alternative use and we have an enforceable right to payment for performance completed to date. Contract assets primarily relate to our right to consideration for work in process not yet billed at the reporting date associated with maintenance and repair services. We use an input method to recognize revenue and measure progress based on labor hours expended to satisfy the performance obligation at average labor rates. We have determined labor hours expended to be the relevant measure of work performed to complete the maintenance and repair service for the customer. As a practical expedient, because repair and maintenance service contracts have an original duration of one year or less, we do not consider the time value of money, and we do not disclose estimated revenue expected to be recognized in the future for performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period or when we expect to recognize such revenue. Contract liabilities primarily consist of customer deposits. We recognize contract liabilities (customer deposits) as revenue at the time of delivery or acceptance by the customers. Total contract liabilities of approximately $24.3 million recorded as of September 30, 2019 were recognized in revenue during the fiscal year ended September 30, 2020. Contract assets, recorded in prepaid expenses and other current assets, totaled approximately $2.5 million and $2.6 million as of September 30, 2019 and September 30, 2020, respectively. We recognize deferred revenue from service operations and slip and storage services over time on a straight-line basis over the term of the contract as our performance obligations are met. We recognize income from the rentals of chartering power and sailing yachts over time on a straight-line basis over the term of the contract as our performance obligations are met. The following table sets forth percentages on the timing of revenue recognition for the fiscal years ended September 30, Fiscal Year Ended Fiscal Year Ended September 30, September 30, 2019 2020 Goods and services transferred at a point in time 90.8 % 92.7 % Goods and services transferred over time 9.2 % 7.3 % Total Revenue 100.0 % 100.0 % The following table sets forth percentages of our revenue generated by certain products and services, for each of last three fiscal years. 2018 2019 2020 New boat sales 71.2 % 70.1 % 70.2 % Used boat sales 14.8 % 14.9 % 15.1 % Maintenance, repair, storage, and charter services 6.2 % 6.9 % 6.4 % Finance and insurance products 2.4 % 2.6 % 2.7 % Parts and accessories 3.6 % 3.6 % 3.0 % Brokerage sales 1.8 % 1.9 % 2.6 % 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. |
Leases | Leases We lease numerous facilities relating to our operations. See Note 7 of the Notes to Consolidated Financial Statements for a discussion of our significant accounting policies related to leases. |
Foreign Currency Transactions | Foreign Currency Transactions For the Company’s foreign subsidiaries that use a currency other than the U.S. dollar as their functional currency, the assets and liabilities are translated at exchange rates in effect at the balance sheet date, and revenues and expenses are translated at the weighted average exchange rate for the period. The effects of these translation adjustments are reported in accumulated other comprehensive income. Gains and losses arising from transactions denominated in a currency other than the functional currency of the entity involved are included in operating income. As of September 30, 2020, our accumulated other comprehensive income, net of tax, was $0.8 million. As of September 30, 2019, our accumulated other comprehensive loss, net of tax, was $0.7 million. The change in accumulated other comprehensive income was the result of foreign currency translation adjustments net of taxes. No amounts were reclassified out of accumulated other comprehensive income in fiscal 2020. |
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 606, 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 $16.5 million, $18.8 million and $14.0 million, net of related co-op assistance of approximately $653,000, $807,000, and $589,000, for the fiscal years ended September 30, 2018, 2019, and 2020, 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 Our financial instruments include cash and cash equivalents, accounts receivable, accounts payable, other payables and accrued expenses and debt. The carrying values of cash and cash equivalents, accounts receivable, accounts payable, other payables and accrued expenses approximate their fair values due to their short-term nature. The carrying value of debt approximates its fair value due to the debt agreements bearing interest at rates that approximate current market rates for debt agreements with similar maturities and credit quality. |
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, valuation of contingent consideration, 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 | Revenue Recognition In May 2014, the FASB issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”), 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. The FASB also subsequently issued several amendments to the standard, including clarification on principal versus agent guidance, identifying performance obligations, and immaterial goods and services in a contract. The new accounting standard update must be applied using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a modified retrospective approach with the cumulative effect of initially adopting the standard recognized at the date of adoption (which requires additional footnote disclosures). The new accounting standard is effective for reporting periods beginning after December 15, 2017. We adopted the accounting standard effective October 1, 2018, using the modified retrospective approach applied only to contracts not completed as of the date of adoption, with no restatement of comparative periods. Therefore, the comparative information has not been adjusted and continues to be reported under ASC Topic 605. We recognized a net after-tax cumulative effect adjustment to retained earnings of $399,000 as of the date of adoption. The details and quantitative impacts of the significant changes are described below. We previously recognized revenue for parts and service operations (boat maintenance and repairs) when the services were completed and recorded amounts due to us as receivables. Under ASC Topic 606, performance obligations associated with parts and service operations are satisfied over time, which results in the acceleration of revenue recognition, and amounts due to us are reflected as a contract asset until the right to such consideration becomes unconditional, at which time amounts due to us are reclassified to receivables. Consolidated Balance Sheet Line Items Impact of changes in accounting policies Balances without Impact of adoption of ASC adoption September 30, 2019 As Reported Topic 606 Higher/(Lower) Inventories, net $ 477,468 $ 477,405 $ 63 Prepaid expenses and other current assets 10,206 7,681 2,525 Accounts payable 33,674 33,708 (34 ) Accrued expenses 42,849 40,669 2,180 Deferred tax liabilities 1,142 1,005 137 Retained earnings $ 202,455 $ 202,150 $ 305 Consolidated Statements of Operations Line Items Impact of changes in accounting policies Balances without Impact of adoption of ASC adoption Fiscal Year Ended September 30, 2019 As Reported Topic 606 Higher/(Lower) Revenue $ 1,237,153 $ 1,237,899 $ (746 ) Cost of sales 914,321 914,939 (618 ) Income from operations 60,532 60,660 (128 ) Income before income tax provision 48,953 49,081 (128 ) Income tax provision 12,968 13,002 (34 ) Net Income $ 35,985 $ 36,079 $ (94 ) Consolidated Statements of Cash flows Impact of changes in accounting policies Balances without Impact of adoption of ASC adoption Fiscal Year Ended September 30, 2019 As Reported Topic 606 Higher/(Lower) Net income $ 35,985 $ 36,079 $ (94 ) (Increase) decrease in — Inventories, net (84,330 ) (83,712 ) (618 ) Prepaid expenses and other assets (3,182 ) (1,748 ) (1,434 ) Increase (decrease) in — Accounts payable 8,701 8,735 (34 ) Accrued expenses and other long-term liabilities $ 4,731 $ 2,551 $ 2,180 Accounting for Leases 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. ASU 2016-02 was effective for annual reporting periods beginning on or after December 15, 2018, and interim periods within those annual periods. Earlier application was permitted for all entities as of the beginning of an interim or annual period. Subsequent amendments to the standard provide an additional and optional transition method that allows entities to initially apply the new standard at the adoption date and recognize a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. An entity’s reporting for the comparative periods presented in the financial statements in which it adopts the new leases standard will continue to be in accordance with current GAAP (ASC Topic 840) if the optional transition method is elected. We adopted ASU 2016-02 effective October 1, 2019 the first day of fiscal 2020. We elected the package of practical expedients available under the transition guidance within the new standard, which among other things, allowed us to carry forward the historical lease classification of our existing leases. Consequently, on adoption, we recognized additional operating lease liabilities of $ 44.0 million and right-of-use (“ROU”) assets of $ 42.1 million. The new standard also provides practical expedients for an entity’s ongoing accounting. We elected the short-term lease recognition exemption for all leases that qualify. As a result, for those leases that qualify, we will not recognize ROU assets or lease liabilities, and we did not recognize ROU assets or lease liabilities for existing short-term leases of those assets in transition. We also elected the practical expedient to not separate lease and non-lease components. We recognized a net after-tax cumulative effect adjustment to retained earnings of $ 0.6 million as of the date of adoption. See Note 7 for additional information on our leases. Other New Pronouncements In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract, which aligns the accounting for implementation costs incurred in a cloud computing arrangement that is a service contract with the guidance on capitalizing costs associated with developing or obtaining internal-use software. The guidance amends Accounting Standards Codification (ASC) 350 to include in its scope implementation costs of a cloud computing arrangement that is a service contract and clarifies that a customer should apply ASC 350 to determine which implementation costs should be capitalized in such a cloud computing arrangement. This guidance is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2019. We are currently evaluating the impact that this standard will have on our consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses. ASU 2016-13 requires entities to report “expected” credit losses on financial instruments and other commitments to extend credit rather than the current “incurred loss” model. These expected credit losses for financial assets held at the reporting date are to be based on historical experience, current conditions, and reasonable and supportable forecasts. This ASU will also require enhanced disclosures relating to significant estimates and judgments used in estimating credit losses, as well as the credit quality. This guidance is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2019. We are currently evaluating the impact that this standard will have on our consolidated financial statements . |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
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 |
Summary of Percentage on Timing of Revenue Recognition | The following table sets forth percentages on the timing of revenue recognition for the fiscal years ended September 30, Fiscal Year Ended Fiscal Year Ended September 30, September 30, 2019 2020 Goods and services transferred at a point in time 90.8 % 92.7 % Goods and services transferred over time 9.2 % 7.3 % Total Revenue 100.0 % 100.0 % |
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. 2018 2019 2020 New boat sales 71.2 % 70.1 % 70.2 % Used boat sales 14.8 % 14.9 % 15.1 % Maintenance, repair, storage, and charter services 6.2 % 6.9 % 6.4 % Finance and insurance products 2.4 % 2.6 % 2.7 % Parts and accessories 3.6 % 3.6 % 3.0 % Brokerage sales 1.8 % 1.9 % 2.6 % Total revenue 100.0 % 100.0 % 100.0 % |
New Accounting Pronouncements (
New Accounting Pronouncements (Table) | 12 Months Ended |
Sep. 30, 2020 | |
Accounting Standards Update 2014-09 [Member] | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |
Schedule of Impact of Adoption of New Revenue Standard | Consolidated Balance Sheet Line Items Impact of changes in accounting policies Balances without Impact of adoption of ASC adoption September 30, 2019 As Reported Topic 606 Higher/(Lower) Inventories, net $ 477,468 $ 477,405 $ 63 Prepaid expenses and other current assets 10,206 7,681 2,525 Accounts payable 33,674 33,708 (34 ) Accrued expenses 42,849 40,669 2,180 Deferred tax liabilities 1,142 1,005 137 Retained earnings $ 202,455 $ 202,150 $ 305 Consolidated Statements of Operations Line Items Impact of changes in accounting policies Balances without Impact of adoption of ASC adoption Fiscal Year Ended September 30, 2019 As Reported Topic 606 Higher/(Lower) Revenue $ 1,237,153 $ 1,237,899 $ (746 ) Cost of sales 914,321 914,939 (618 ) Income from operations 60,532 60,660 (128 ) Income before income tax provision 48,953 49,081 (128 ) Income tax provision 12,968 13,002 (34 ) Net Income $ 35,985 $ 36,079 $ (94 ) Consolidated Statements of Cash flows Impact of changes in accounting policies Balances without Impact of adoption of ASC adoption Fiscal Year Ended September 30, 2019 As Reported Topic 606 Higher/(Lower) Net income $ 35,985 $ 36,079 $ (94 ) (Increase) decrease in — Inventories, net (84,330 ) (83,712 ) (618 ) Prepaid expenses and other assets (3,182 ) (1,748 ) (1,434 ) Increase (decrease) in — Accounts payable 8,701 8,735 (34 ) Accrued expenses and other long-term liabilities $ 4,731 $ 2,551 $ 2,180 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Accounts Receivable, Net | Accounts receivable, net consisted of the following as of September 30, 2019 2020 (Amounts in thousands) Trade receivables, net $ 29,750 $ 31,289 Amounts due from manufacturers 11,245 7,575 Other receivables 1,403 1,331 $ 42,398 $ 40,195 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories, net, consisted of the following as of September 30, 2019 2020 (Amounts in thousands) New boats, motors, and trailers $ 413,335 $ 252,605 Used boats, motors, and trailers 56,363 36,686 Parts, accessories, and other 7,770 8,711 $ 477,468 $ 298,002 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of the following as of September 30, 2019 2020 (Amounts in thousands) Land $ 56,549 $ 55,549 Buildings and improvements 112,892 115,394 Machinery and equipment 36,368 39,416 Furniture and fixtures 4,995 5,233 Vehicles 11,292 12,612 222,096 228,204 Accumulated depreciation and amortization (77,798 ) (86,270 ) $ 144,298 $ 141,934 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Summary of Maturities of Lease Liabilities | As of September 30, 2020, maturities of lease liabilities are summarized as follows: (Amounts in thousands) 2021 $ 9,433 2022 7,658 2023 6,654 2024 5,138 2025 3,590 Thereafter 27,768 Total lease payments 60,241 Less: interest (19,914 ) Present value of lease liabilities $ 40,327 |
Summary of Future Minimum Annual Rental Commitments for Operating Leases | Under the previous lease accounting prior to the adoption of ASC 842, future minimum annual rental commitments for operating leases as of September 30, 2019 were as follows: (Amounts in thousands) 2020 9,480 2021 8,148 2022 6,906 2023 6,329 2024 5,003 Thereafter 29,111 Total $ 64,977 |
Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows (amounts in thousands): For the Year Ended September 30, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 10,209 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 3,811 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Summary of Earnings Before Income Taxes | Earnings before income taxes consisted of the following components for the fiscal years ended September 30, 2018 2019 2020 (Amounts in thousands) Earnings before income taxes United States $ 53,280 $ 46,986 $ 94,854 Other — 1,967 2,586 Total $ 53,280 $ 48,953 $ 97,440 |
Components of Income Taxes Provision | The components of our provision from income taxes consisted of the following for the fiscal years ended September 30, 2018 2019 2020 (Amounts in thousands) Current provision: Federal $ 8,055 $ 7,933 $ 17,654 Foreign — 516 654 State 195 135 1,365 Total current provision $ 8,250 $ 8,584 $ 19,673 Deferred provision: Federal 4,205 2,285 2,262 Foreign — — — State 1,513 2,099 871 Total deferred provision 5,718 4,384 3,133 Total income tax provision $ 13,968 $ 12,968 $ 22,806 |
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, 2018 2019 2020 Federal tax provision 24.5 % 21.0 % 21.0 % State taxes, net of federal effect 4.1 % 4.1 % 3.1 % Stock based compensation (2.0 )% — (0.5 )% Valuation allowance (0.3 )% (0.1 )% (0.2 )% Foreign rate differential — 0.2 % 0.1 % Effect of Federal Tax Reform 1.5 % — — Other (1.6 )% 1.3 % (0.1 )% Effective tax rate 26.2 % 26.5 % 23.4 % |
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, 2019 2020 (Amounts in thousands) Deferred tax assets: Inventories $ 774 $ 808 Operating lease right-of-use assets - $ 9,926 Accrued expenses 492 640 Stock based compensation 2,388 2,170 Tax loss carryforwards 2,316 810 Other 562 268 Valuation allowance (164 ) - Total long-term deferred tax assets 6,368 14,622 Deferred tax liabilities: Depreciation and amortization (7,510 ) (9,095 ) Operating lease liabilities - (10,036 ) Total long-term deferred tax liabilities $ (7,510 ) $ (19,131 ) Net deferred tax liabilities $ (1,142 ) $ (4,509 ) |
The Incentive Stock Plans (Tabl
The Incentive Stock Plans (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Incentive Stock Plans Option Activity | The following table summarizes option activity from September 30, 2019 through September 30, 2020: 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, 2019 715,590 484,031 $ 1,569 $ 12.42 3.7 Shares authorized 1,000,000 — — — Options granted — — — — Options cancelled/forfeited/expired — — — — Options exercised — (287,702 ) — 12.63 Restricted stock awards granted (477,271 ) — — — Restricted stock awards forfeited 49,188 — — — Additional shares of stock issued (12,092 ) — — — Balance as of September 30, 2020 1,275,415 196,329 $ 2,636 $ 12.12 2.5 Exercisable as of September 30, 2020 196,239 $ 2,636 $ 12.12 2.5 |
Weighted Average Assumptions of Incentive Stock Plans | Below are the weighted-average assumptions used for the fiscal year ended September 30, 2018. No options were granted for the fiscal years ended September 30, 2019 or September 30, 2020. 2018 2019 2020 Dividend yield 0.0% — — Risk-free interest rate 2.7% — — Volatility 45.4% — — Expected life 5.0 years — — |
Employee Stock Purchase Plan (T
Employee Stock Purchase Plan (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
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, 2018 2019 2020 Dividend yield 0.0% 0.0% 0.0% Risk-free interest rate 1.5% 2.4% 0.8% Volatility 49.9% 48.3% 69.7% Expected life Six months Six months Six months |
Restricted Stock Awards (Tables
Restricted Stock Awards (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Restricted Stock Award Activity | The following table summarizes restricted stock award activity from September 30, 2019 through September 30, 2020: Shares/ Units Weighted Average Grant Date Fair Value Non-vested balance as of September 30, 2019 779,627 $ 18.71 Changes during the period Awards granted 477,271 $ 17.07 Awards vested (305,079 ) $ 17.78 Awards forfeited (49,188 ) $ 20.08 Non-vested balance as of September 30, 2020 902,631 $ 18.08 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
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, 2018 2019 2020 Weighted average common shares outstanding used in calculating basic income per share 22,269,378 22,294,114 21,547,665 Effect of dilutive options and non-vested restricted stock awards 761,284 587,033 577,673 Weighted average common and common equivalent shares used in calculating diluted income per share 23,030,662 22,881,147 22,125,338 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
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, 2018 March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 March 31, 2020 June 30, 2020 September 30, 2020 Revenue $ 241,937 $ 303,586 $ 383,494 $ 308,136 $ 304,172 $ 308,475 $ 498,304 $ 398,762 Cost of sales 178,459 229,384 285,784 220,694 224,154 229,699 374,851 282,296 Gross profit 63,478 74,202 97,710 87,442 80,018 78,776 123,453 116,466 Selling, general and administrative expenses 54,492 63,976 68,968 74,864 64,386 69,060 74,838 83,714 Income from operations 8,986 10,226 28,742 12,578 15,632 9,716 48,615 32,752 Interest expense 2,516 3,033 2,936 3,094 3,344 3,013 2,133 785 Income before income income tax provision 6,470 7,193 25,806 9,484 12,288 6,703 46,482 31,967 Income tax provision 1,560 1,890 6,719 2,799 3,229 1,638 11,555 6,384 Net income $ 4,910 $ 5,303 $ 19,087 $ 6,685 $ 9,059 $ 5,065 $ 34,927 $ 25,583 Net income per share: Diluted $ 0.21 $ 0.23 $ 0.84 $ 0.31 $ 0.41 $ 0.23 $ 1.58 $ 1.13 Weighted average number of shares: Diluted 23,400,685 23,417,688 22,821,202 21,896,257 21,890,065 21,960,285 22,045,900 22,604,060 |
Company Background and Basis _2
Company Background and Basis of Presentation - Additional Information (Detail) | 12 Months Ended | ||
Sep. 30, 2020StoreState | Sep. 30, 2019 | Sep. 30, 2018 | |
Concentration Risk [Line Items] | |||
Number of retail locations | Store | 57 | ||
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 | 33.00% | ||
Product Concentration Risk [Member] | Brunswick Sea Ray Boat [Member] | Brunswick [Member] | Sales [Member] | |||
Concentration Risk [Line Items] | |||
Revenue percentage from sale of boats | 15.00% | ||
Product Concentration Risk [Member] | Brunswick Boston Whaler Boats [Member] | Brunswick [Member] | Sales [Member] | |||
Concentration Risk [Line Items] | |||
Revenue percentage from sale of boats | 16.00% | ||
Product Concentration Risk [Member] | Azimut Benetti Groups and Yachts | Sales [Member] | |||
Concentration Risk [Line Items] | |||
Revenue percentage from sale of boats | 9.00% | ||
Geographic Concentration Risk [Member] | Sales [Member] | Florida [Member] | |||
Concentration Risk [Line Items] | |||
Revenue percentage from sale of boats | 54.00% | 54.00% | 51.00% |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||
Sep. 30, 2020USD ($)Segment | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | |
Accounting Policies [Abstract] | |||
Inventories valuation allowance | $ 2,400,000 | $ 2,200,000 | |
Goodwill and other intangible assets increased from acquisitions | 20,200,000 | 37,000,000 | |
Goodwill and other intangible assets | 84,293,000 | 64,077,000 | |
Business acquisition, goodwill for tax purposes | 16,800,000 | 10,500,000 | |
Impairment charges | 0 | ||
Contract assets recorded in prepaid expenses and other current assets | $ 2,600,000 | 2,500,000 | |
Revenue remaining obligation description | As a practical expedient, because repair and maintenance service contracts have an original duration of one year or less, we do not consider the time value of money, and we do not disclose estimated revenue expected to be recognized in the future for performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period or when we expect to recognize such revenue. | ||
Contract liabilities | $ 31,821,000 | 24,305,000 | |
Contract liabilities recognized in revenue | 24,300,000 | ||
Accumulated other comprehensive (loss) income | 829,000 | (669,000) | |
Reclassified out of accumulated other comprehensive income | 0 | ||
Total advertising and promotional expenses | 14,000,000 | 18,800,000 | $ 16,500,000 |
Net of related co-op assistance | $ 589,000 | $ 807,000 | $ 653,000 |
Number of reporting segment | Segment | 1 |
Significant Accounting Polici_5
Significant Accounting Policies - Estimated Life of Property and Equipment (Detail) | 12 Months Ended |
Sep. 30, 2020 | |
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 Polici_6
Significant Accounting Policies - Summary of Percentage on Timing of Revenue Recognition (Details) | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation Of Revenue [Line Items] | ||
Total Revenue | 100.00% | 100.00% |
Goods and Services Transferred at a Point in Time [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total Revenue | 92.70% | 90.80% |
Goods and Services Transferred Over Time [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total Revenue | 7.30% | 9.20% |
Significant Accounting Polici_7
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, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
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 | 70.20% | 70.10% | 71.20% |
Used Boat Sales [Member] | |||
Product Information [Line Items] | |||
Sales Revenue Goods And Services Net Percentage | 15.10% | 14.90% | 14.80% |
Maintenance, Repair, Storage and Charter Services [Member] | |||
Product Information [Line Items] | |||
Sales Revenue Goods And Services Net Percentage | 6.40% | 6.90% | 6.20% |
Finance and Insurance Products [Member] | |||
Product Information [Line Items] | |||
Sales Revenue Goods And Services Net Percentage | 2.70% | 2.60% | 2.40% |
Parts and Accessories [Member] | |||
Product Information [Line Items] | |||
Sales Revenue Goods And Services Net Percentage | 3.00% | 3.60% | 3.60% |
Brokerage Sales [Member] | |||
Product Information [Line Items] | |||
Sales Revenue Goods And Services Net Percentage | 2.60% | 1.90% | 1.80% |
New Accounting Pronouncements -
New Accounting Pronouncements - Additional Information (Detail) - USD ($) | Sep. 30, 2020 | Oct. 01, 2019 | Sep. 30, 2019 | Oct. 01, 2018 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Cumulative effect adjustment to retained earnings, net after tax | $ 277,699,000 | $ 202,455,000 | ||
Operating lease, liabilities | 40,327,000 | |||
Operating lease right-of-use assets, net | $ 37,991,000 | |||
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Cumulative effect adjustment to retained earnings, net after tax | $ 305,000 | $ 399,000 | ||
Accounting Standards Update 2016-02 [Member] | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Operating lease, liabilities | $ 44,000,000 | |||
Operating lease right-of-use assets, net | 42,100,000 | |||
Accounting Standards Update 2016-02 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Cumulative effect adjustment to retained earnings, net after tax | $ 600,000 |
New Accounting Pronouncements_2
New Accounting Pronouncements - Schedule of Impact of Adoption of New Revenue Standard on Consolidated Balance Sheet Line Items (Detail) - USD ($) | Sep. 30, 2020 | Sep. 30, 2019 | Oct. 01, 2018 |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Inventories, net | $ 298,002,000 | $ 477,468,000 | |
Prepaid expenses and other current assets | 9,637,000 | 10,206,000 | |
Accounts payable | 37,343,000 | 33,674,000 | |
Accrued expenses | 52,123,000 | 42,849,000 | |
Deferred tax liabilities | 4,509,000 | 1,142,000 | |
Retained earnings | $ 277,699,000 | 202,455,000 | |
Balances without adoption of ASC Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | |||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Inventories, net | 477,405,000 | ||
Prepaid expenses and other current assets | 7,681,000 | ||
Accounts payable | 33,708,000 | ||
Accrued expenses | 40,669,000 | ||
Deferred tax liabilities | 1,005,000 | ||
Retained earnings | 202,150,000 | ||
Impact of adoption Higher/(Lower) [Member] | Accounting Standards Update 2014-09 [Member] | |||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Inventories, net | 63,000 | ||
Prepaid expenses and other current assets | 2,525,000 | ||
Accounts payable | (34,000) | ||
Accrued expenses | 2,180,000 | ||
Deferred tax liabilities | 137,000 | ||
Retained earnings | $ 305,000 | $ 399,000 |
New Accounting Pronouncements_3
New Accounting Pronouncements - Schedule of Impact of Adoption of New Revenue Standard on Consolidated Statements of Operations Line Items (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Revenue | $ 398,762 | $ 498,304 | $ 308,475 | $ 304,172 | $ 308,136 | $ 383,494 | $ 303,586 | $ 241,937 | $ 1,509,713 | $ 1,237,153 | $ 1,177,371 |
Cost of sales | 282,296 | 374,851 | 229,699 | 224,154 | 220,694 | 285,784 | 229,384 | 178,459 | 1,111,000 | 914,321 | 879,138 |
Income from operations | 32,752 | 48,615 | 9,716 | 15,632 | 12,578 | 28,742 | 10,226 | 8,986 | 106,715 | 60,532 | 63,183 |
Income before income tax provision | 31,967 | 46,482 | 6,703 | 12,288 | 9,484 | 25,806 | 7,193 | 6,470 | 97,440 | 48,953 | 53,280 |
Income tax provision | 6,384 | 11,555 | 1,638 | 3,229 | 2,799 | 6,719 | 1,890 | 1,560 | 22,806 | 12,968 | 13,968 |
Net income | $ 25,583 | $ 34,927 | $ 5,065 | $ 9,059 | $ 6,685 | $ 19,087 | $ 5,303 | $ 4,910 | $ 74,634 | 35,985 | $ 39,312 |
Balances without adoption of ASC Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | |||||||||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Revenue | 1,237,899 | ||||||||||
Cost of sales | 914,939 | ||||||||||
Income from operations | 60,660 | ||||||||||
Income before income tax provision | 49,081 | ||||||||||
Income tax provision | 13,002 | ||||||||||
Net income | 36,079 | ||||||||||
Impact of adoption Higher/(Lower) [Member] | Accounting Standards Update 2014-09 [Member] | |||||||||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Revenue | (746) | ||||||||||
Cost of sales | (618) | ||||||||||
Income from operations | (128) | ||||||||||
Income before income tax provision | (128) | ||||||||||
Income tax provision | (34) | ||||||||||
Net income | $ (94) |
New Accounting Pronouncements_4
New Accounting Pronouncements - Schedule of Impact of Adoption of New Revenue Standard on Consolidated Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Net income | $ 74,634 | $ 35,985 | $ 39,312 |
(Increase) decrease in — | |||
Inventories, net | 179,466 | (84,330) | 26,773 |
Prepaid expenses and other assets | 101 | (3,182) | (996) |
Increase (decrease) in — | |||
Accounts payable | $ 2,887 | 8,701 | $ (3,325) |
Accrued expenses and other long-term liabilities | 4,731 | ||
Balances without adoption of ASC Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | |||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Net income | 36,079 | ||
(Increase) decrease in — | |||
Inventories, net | (83,712) | ||
Prepaid expenses and other assets | (1,748) | ||
Increase (decrease) in — | |||
Accounts payable | 8,735 | ||
Accrued expenses and other long-term liabilities | 2,551 | ||
Impact of adoption Higher/(Lower) [Member] | Accounting Standards Update 2014-09 [Member] | |||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Net income | (94) | ||
(Increase) decrease in — | |||
Inventories, net | (618) | ||
Prepaid expenses and other assets | (1,434) | ||
Increase (decrease) in — | |||
Accounts payable | (34) | ||
Accrued expenses and other long-term liabilities | $ 2,180 |
Accounts Receivable - Additiona
Accounts Receivable - Additional Information (Detail) | 12 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Receivable Collection Period | 30 days |
Accounts Receivable - Accounts
Accounts Receivable - Accounts Receivable, Net (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Receivables [Abstract] | ||
Trade receivables, net | $ 31,289 | $ 29,750 |
Amounts due from manufacturers | 7,575 | 11,245 |
Other receivables | 1,331 | 1,403 |
Accounts receivable, net | $ 40,195 | $ 42,398 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Inventory [Line Items] | ||
Inventories, net | $ 298,002 | $ 477,468 |
New Boats, Motors, and Trailers [Member] | ||
Inventory [Line Items] | ||
Inventories, net | 252,605 | 413,335 |
Used Boats, Motors, and Trailers [Member] | ||
Inventory [Line Items] | ||
Inventories, net | 36,686 | 56,363 |
Parts, Accessories, and Other [Member] | ||
Inventory [Line Items] | ||
Inventories, net | $ 8,711 | $ 7,770 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 228,204 | $ 222,096 |
Accumulated depreciation and amortization | (86,270) | (77,798) |
Property and equipment, net | 141,934 | 144,298 |
Land [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 55,549 | 56,549 |
Buildings and Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 115,394 | 112,892 |
Machinery and Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 39,416 | 36,368 |
Furniture and Fixtures [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 5,233 | 4,995 |
Vehicles [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 12,612 | $ 11,292 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Property Plant And Equipment [Abstract] | |||
Depreciation and amortization | $ 12,772 | $ 11,597 | $ 10,673 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Leases [Abstract] | |||
Weighted average remaining lease term (years) | 10 years | ||
Operating lease expense | $ 13.9 | $ 12.8 | $ 11.8 |
Variable lease expense | $ 0.5 | $ 0.4 | $ 0.4 |
Operating lease renewal term | 25 years | ||
Weighted average discount rate | 7.30% |
Leases - Summary of Maturities
Leases - Summary of Maturities of Lease Liabilities (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Operating Leases | |
2021 | $ 9,433 |
2022 | 7,658 |
2023 | 6,654 |
2024 | 5,138 |
2025 | 3,590 |
Thereafter | 27,768 |
Total lease payments | 60,241 |
Less: interest | (19,914) |
Present value of lease liabilities | $ 40,327 |
Leases - Summary of Future Mini
Leases - Summary of Future Minimum Annual Rental Commitments for Operating Leases (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Operating Leases | |
2020 | $ 9,480 |
2021 | 8,148 |
2022 | 6,906 |
2023 | 6,329 |
2024 | 5,003 |
Thereafter | 29,111 |
Total | $ 64,977 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2020USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 10,209 |
Right-of-use assets obtained in exchange for lease obligations: | |
Operating leases | $ 3,811 |
Goodwill Intangible Assets an_2
Goodwill Intangible Assets and Other Long Term Assets - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Schedule Of Goodwill And Other Assets [Line Items] | ||
Goodwill and other intangible assets | $ 84,293 | $ 64,077 |
Other long-term assets | 7,774 | 7,125 |
long Term Deposits and Other Long Term Investments [Member] | ||
Schedule Of Goodwill And Other Assets [Line Items] | ||
Other long-term assets | $ 7,800 | $ 7,100 |
Short-Term Borrowings and Lon_2
Short-Term Borrowings and Long-Term Debt - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | May 31, 2020 | |
Line Of Credit Facility [Line Items] | |||
Additional borrowings | $ 82,000,000 | ||
Long-term debt | $ 7,343,000 | ||
Mortgage Facility [Member] | |||
Line Of Credit Facility [Line Items] | |||
Additional extension for two one-year periods | Aug. 31, 2027 | ||
Long-term debt | $ 7,400,000 | ||
Debt instrument description of variable rate basis | prime minus 100 basis points with a floor of 2.00%. | ||
Debt instrument interest rate on amounts outstanding | 2.25% | ||
Principal and interest payments with a balloon payment | $ 4,000,000 | ||
Mortgage Facility [Member] | Accrued Expenses [Member] | |||
Line Of Credit Facility [Line Items] | |||
Current portion of long-term debt | $ 507,000 | ||
Mortgage Facility [Member] | Interest Rate Prime [Member] | |||
Line Of Credit Facility [Line Items] | |||
Interest rate for amounts outstanding under the Credit Facility | 1.00% | ||
Mortgage Facility [Member] | Interest Rate Floor [Member] | |||
Line Of Credit Facility [Line Items] | |||
Debt instrument interest rate | 2.00% | ||
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 | $ 144,400,000 | ||
Interest rate on short-term borrowings | 4.20% | 5.60% | |
Credit Facility [Member] | |||
Line Of Credit Facility [Line Items] | |||
Line of credit facility, term | 3 years | ||
Additional extension for two one-year periods | May 31, 2023 | ||
Interest rate for amounts outstanding under the Credit Facility | 3.45% | ||
Credit Facility [Member] | Borrowing Base Amount and Aging Inventory [Member] | |||
Line Of Credit Facility [Line Items] | |||
Amount of borrowing availability | $ 440,000,000 | ||
Line of Credit Facility, Description | The Credit Facility has a three-year term and expires in May 2023, subject to extension for two one-year periods, with lender approval | ||
Leverage ratio | 2.75% | ||
Credit Facility interest rate description | The interest rate for amounts outstanding under the Credit Facility is 345 basis points plus the greater of 75 basis points or the one-month 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. | ||
Interest rate for amounts outstanding under the Credit Facility | 0.75% | ||
Unused line fee on the unused portion of the amended Credit Facility | 0.10% | ||
New inventory mature date | 1080 days | ||
Used inventory maturity period | 361 days | ||
Real estate property pledged for collateral | $ 0 |
Income Taxes - Summary of Earni
Income Taxes - Summary of Earnings Before Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings before income taxes | |||||||||||
United States | $ 94,854 | $ 46,986 | $ 53,280 | ||||||||
Other | 2,586 | 1,967 | |||||||||
Income before income tax provision | $ 31,967 | $ 46,482 | $ 6,703 | $ 12,288 | $ 9,484 | $ 25,806 | $ 7,193 | $ 6,470 | $ 97,440 | $ 48,953 | $ 53,280 |
Income Taxes - Components of In
Income Taxes - Components of Income Taxes Provision (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Current provision: | |||||||||||
Federal | $ 17,654 | $ 7,933 | $ 8,055 | ||||||||
Foreign | 654 | 516 | |||||||||
State | 1,365 | 135 | 195 | ||||||||
Total current provision | 19,673 | 8,584 | 8,250 | ||||||||
Deferred provision: | |||||||||||
Federal | 2,262 | 2,285 | 4,205 | ||||||||
State | 871 | 2,099 | 1,513 | ||||||||
Total deferred provision | 3,133 | 4,384 | 5,718 | ||||||||
Total income tax provision | $ 6,384 | $ 11,555 | $ 1,638 | $ 3,229 | $ 2,799 | $ 6,719 | $ 1,890 | $ 1,560 | $ 22,806 | $ 12,968 | $ 13,968 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Taxes [Line Items] | ||||||
Federal corporate tax rate | 35.00% | 21.00% | 21.00% | 21.00% | 24.50% | |
Non-cash adjustment to income tax expense | $ 805,000 | |||||
Reversal of outstanding deferred tax asset valuation allowance due | $ 164,000 | |||||
Deferred tax asset | 800,000 | |||||
Domestic Country | ||||||
Income Taxes [Line Items] | ||||||
Net operating loss (NOL) carryforwards | $ 15,400,000 | $ 0 | ||||
Minimum [Member] | State And Local Jurisdiction | ||||||
Income Taxes [Line Items] | ||||||
Operating loss carry forwards expiration year | 2029 | |||||
Maximum [Member] | State And Local Jurisdiction | ||||||
Income Taxes [Line Items] | ||||||
Operating loss carry forwards expiration year | 2032 |
Income Taxes - Summary of Tax R
Income Taxes - Summary of Tax Rates (Detail) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||||
Federal tax provision | 35.00% | 21.00% | 21.00% | 21.00% | 24.50% |
State taxes, net of federal effect | 3.10% | 4.10% | 4.10% | ||
Stock based compensation | (0.50%) | (2.00%) | |||
Valuation allowance | (0.20%) | (0.10%) | (0.30%) | ||
Foreign rate differential | 0.10% | 0.20% | |||
Effect of Federal Tax Reform | 1.50% | ||||
Other | (0.10%) | 1.30% | (1.60%) | ||
Effective tax rate | 23.40% | 26.50% | 26.20% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Asset (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Deferred tax assets: | ||
Inventories | $ 808 | $ 774 |
Operating lease right-of-use assets | 9,926 | |
Accrued expenses | 640 | 492 |
Stock based compensation | 2,170 | 2,388 |
Tax loss carryforwards | 810 | 2,316 |
Other | 268 | 562 |
Valuation allowance | (164) | |
Total long-term deferred tax assets | 14,622 | 6,368 |
Deferred tax liabilities: | ||
Depreciation and amortization | (9,095) | (7,510) |
Operating lease liabilities | (10,036) | |
Total long-term deferred tax liabilities | (19,131) | (7,510) |
Net deferred tax liabilities | $ (4,509) | $ (1,142) |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Mar. 31, 2020 |
Equity [Abstract] | ||
Shares approved to repurchase | 10,000,000 | |
Shares purchased | 6,267,021 | |
Aggregate purchase price | $ 103.6 | |
Remaining shares available for future purchases under share repurchase program, amount | $ 9.9 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Net proceeds from issuance of common stock under incentive compensation and employee purchase plans | $ 4,629 | $ 2,412 | $ 7,683 |
The Incentive Stock Plans - Add
The Incentive Stock Plans - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |||
Feb. 29, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Jan. 31, 2011 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Weighted average grant fair value of options granted | $ 8.42 | ||||
Options granted | 0 | 0 | |||
Total intrinsic value of options exercised | $ 3.8 | $ 1.4 | $ 6.3 | ||
Fair value of options vested | $ 1.3 | ||||
Incentive Stock Plan 2011 [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Common stock, shares authorized | 3,200,456 | ||||
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 | 4,000,000 | ||||
Incentive Stock Plan 2011 [Member] | Maximum [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Common stock, shares authorized | 4,200,456 | ||||
Incentive Stock Plan 2007 [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of Common stock shares available | 200,456 |
The Incentive Stock Plans - Sum
The Incentive Stock Plans - Summary of Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Options granted, Options Outstanding | 0 | 0 |
Stock Options [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Shares Available for Grant, Beginning Balance | 715,590 | |
Common stock, shares authorized | 1,000,000 | |
Restricted stock awards granted, Shares Available for Grant | (477,271) | |
Restricted stock awards forfeited, Shares Available for Grant | 49,188 | |
Additional shares of stock issued, Shares Available for Grant | (12,092) | |
Shares Available for Grant, Ending Balance | 1,275,415 | 715,590 |
Options Outstanding, Beginning Balance | 484,031 | |
Options exercised, Options Outstanding | (287,702) | |
Options Outstanding, Ending Balance | 196,329 | 484,031 |
Exercisable as of September 30, 2020, Options Outstanding | 196,239 | |
Aggregate Intrinsic Value | $ 2,636 | $ 1,569 |
Exercisable as of September 30, 2020, Aggregate Intrinsic Value | $ 2,636 | |
Weighted Average Exercise Price, Beginning Balance | $ 12.42 | |
Options exercised, Weighted Average Exercise Price | 12.63 | |
Weighted Average Exercise Price, Ending Balance | 12.12 | $ 12.42 |
Exercisable as of September 30, 2020, Weighted Average Exercise Price | $ 12.12 | |
Weighted Average Remaining Contractual Life | 2 years 6 months | 3 years 8 months 12 days |
Exercisable as of September 30, 2020, Weighted Average Remaining Contractual Life | 2 years 6 months |
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, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Dividend yield | 0.00% |
Risk-free interest rate | 2.70% |
Volatility | 45.40% |
Expected life | 5 years |
Employee Stock Purchase Plan -
Employee Stock Purchase Plan - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |
Feb. 28, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Common stock, shares issued | 28,130,312 | 27,508,473 | |
Stock Purchase Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Additional common shares authorized | 500,000 | ||
Common stock available for issuance | 1,500,000 | ||
Stock Purchase Plan, requisite continuous service | 1 year | ||
Annual offerings description | implementation of annual offerings beginning on the first day of October in each of the years 2008 through 2027, 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 | 1,017,563 | ||
1998 Employee Stock Purchase Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Additional Common Shares Authorized | 52,837 |
Employee Stock Purchase Plan _2
Employee Stock Purchase Plan - Weighted Average Assumptions of Employee Stock Purchase Plan (Detail) - Stock Purchase Plan [Member] | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Dividend yield | 0.00% | 0.00% | 0.00% |
Risk-free interest rate | 0.80% | 2.40% | 1.50% |
Volatility | 69.70% | 48.30% | 49.90% |
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, 2020USD ($) | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized compensation cost related to non-vested restricted stock awards | $ 8.1 |
Weighted average period unrecognized compensation costs related to non-vested restricted awards are expected to be recognized | 2 years 1 month 6 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 | 175.00% |
Restricted Stock Awards - Restr
Restricted Stock Awards - Restricted Stock Award Activity (Detail) - Restricted Stock Awards [Member] | 12 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Shares/ Units, Non-vested beginning balance | shares | 779,627 |
Shares/ Units, Awards granted | shares | 477,271 |
Shares/ Units, Awards vested | shares | (305,079) |
Shares/ Units, Awards forfeited | shares | (49,188) |
Shares/ Units, Non-vested ending balance | shares | 902,631 |
Weighted Average Grant Date Fair Value, Non-vested beginning balance | $ / shares | $ 18.71 |
Weighted Average Grant Date Fair Value, Awards granted | $ / shares | 17.07 |
Weighted Average Grant Date Fair Value, Awards vested | $ / shares | 17.78 |
Weighted Average Grant Date Fair Value, Awards forfeited | $ / shares | 20.08 |
Weighted Average Grant Date Fair Value, Non-vested ending balance | $ / shares | $ 18.08 |
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, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |||||||||||
Weighted average common shares outstanding used in calculating basic income per share | 21,547,665 | 22,294,114 | 22,269,378 | ||||||||
Effect of dilutive options and non-vested restricted stock awards | 577,673 | 587,033 | 761,284 | ||||||||
Weighted average common and common equivalent shares used in calculating diluted income per share | 22,604,060 | 22,045,900 | 21,960,285 | 21,890,065 | 21,896,257 | 22,821,202 | 23,417,688 | 23,400,685 | 22,125,338 | 22,881,147 | 23,030,662 |
Net Income Per Share - Addition
Net Income Per Share - Additional Information (Detail) - shares | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Stock Options [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from earnings per share calculation | 9,650 | 10,988 | 1,288 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Costs incurred for store closings and lease terminations | $ 1,700,000 | $ 3,100,000 | $ 0 |
Workers compensation insurance policies | $ 1,100,000 |
Employee 401(k) Profit Sharin_2
Employee 401(k) Profit Sharing Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
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 | 50.00% | ||
Maximum of each participants compensation | 5.00% | ||
Contribution under the Profit sharing plan | $ 2.7 | $ 2.3 | $ 1.9 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - Skippers Companies [Member] - Subsequent Event [Member] | Oct. 01, 2020USD ($)Store |
Subsequent Event [Line Items] | |
Aggregate purchase price | $ | $ 55,000,000 |
Number of added retail locations | 20 |
Marina and Storage Facilities [Member] | |
Subsequent Event [Line Items] | |
Number of added retail locations | 11 |
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, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 398,762 | $ 498,304 | $ 308,475 | $ 304,172 | $ 308,136 | $ 383,494 | $ 303,586 | $ 241,937 | $ 1,509,713 | $ 1,237,153 | $ 1,177,371 |
Cost of sales | 282,296 | 374,851 | 229,699 | 224,154 | 220,694 | 285,784 | 229,384 | 178,459 | 1,111,000 | 914,321 | 879,138 |
Gross profit | 116,466 | 123,453 | 78,776 | 80,018 | 87,442 | 97,710 | 74,202 | 63,478 | 398,713 | 322,832 | 298,233 |
Selling, general and administrative expenses | 83,714 | 74,838 | 69,060 | 64,386 | 74,864 | 68,968 | 63,976 | 54,492 | 291,998 | 262,300 | 235,050 |
Income from operations | 32,752 | 48,615 | 9,716 | 15,632 | 12,578 | 28,742 | 10,226 | 8,986 | 106,715 | 60,532 | 63,183 |
Interest expense | 785 | 2,133 | 3,013 | 3,344 | 3,094 | 2,936 | 3,033 | 2,516 | 9,275 | 11,579 | 9,903 |
Income before income tax provision | 31,967 | 46,482 | 6,703 | 12,288 | 9,484 | 25,806 | 7,193 | 6,470 | 97,440 | 48,953 | 53,280 |
Income tax provision | 6,384 | 11,555 | 1,638 | 3,229 | 2,799 | 6,719 | 1,890 | 1,560 | 22,806 | 12,968 | 13,968 |
Net income | $ 25,583 | $ 34,927 | $ 5,065 | $ 9,059 | $ 6,685 | $ 19,087 | $ 5,303 | $ 4,910 | $ 74,634 | $ 35,985 | $ 39,312 |
Net income per share: | |||||||||||
Diluted | $ 1.13 | $ 1.58 | $ 0.23 | $ 0.41 | $ 0.31 | $ 0.84 | $ 0.23 | $ 0.21 | $ 3.37 | $ 1.57 | $ 1.71 |
Weighted average number of shares: | |||||||||||
Diluted | 22,604,060 | 22,045,900 | 21,960,285 | 21,890,065 | 21,896,257 | 22,821,202 | 23,417,688 | 23,400,685 | 22,125,338 | 22,881,147 | 23,030,662 |