Alj Regional (ALJJ) 10-Q 14 May 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Mar. 31, 2018	Apr. 30, 2018
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Trading Symbol	ALJJ
Entity Registrant Name	ALJ REGIONAL HOLDINGS INC
Entity Central Index Key	1,438,731
Current Fiscal Year End Date	--09-30
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		37,921,116

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2018	Sep. 30, 2017
Current assets:
Cash and cash equivalents	$ 2,947	$ 5,630
Accounts receivable, net of allowance for doubtful accounts of $801 ($830 at September 30, 2017)	49,152	49,457
Inventories, net	8,695	9,376
Prepaid expenses and other current assets	5,467	5,783
Total current assets	66,261	70,246
Property and equipment, net	54,332	54,335
Goodwill	56,372	54,964
Intangible assets, net	45,123	43,179
Collateral deposits, less current portion	695	879
Other assets	3,417	4,474
Deferred tax asset, net	8,278	11,052
Total assets	234,478	239,129
Current liabilities:
Accounts payable	16,635	15,597
Accrued expenses	12,273	12,661
Income taxes payable		195
Deferred revenue and customer deposits	4,340	5,755
Current portion of term loan, net of deferred loan costs	8,251	11,848
Current portion of capital lease obligations	3,022	2,571
Current portion of workers’ compensation reserve	1,130	1,015
Other current liabilities	1,003	64
Total current liabilities	46,654	49,706
Line of credit, net of deferred loan costs	4,418	5,330
Term loan payable, less current portion, net of deferred loan costs	79,464	76,753
Deferred revenue, less current portion	2,343	3,111
Workers’ compensation reserve, less current portion	1,636	1,748
Capital lease obligations, less current portion	5,613	4,679
Other non-current liabilities	1,844	2,049
Total liabilities	141,972	143,376
Commitments and contingencies (Note 8)
Stockholders’ equity:
Preferred stock, $0.01 par value; total authorized – 5,000,000 shares; 1,000,000 shares authorized for Series A; 550,000 shares authorized for Series B; none issued and outstanding as of March 31, 2018 and September 30, 2017
Common stock, $0.01 par value; authorized – 100,000,000 shares; 37,921,116 and 37,041,308 shares issued and outstanding at March 31, 2018 and September 30, 2017, respectively	379	371
Additional paid-in capital	278,881	276,478
Accumulated deficit	(186,754)	(181,096)
Total stockholders’ equity	92,506	95,753
Total liabilities and stockholders’ equity	$ 234,478	$ 239,129

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2018	Sep. 30, 2017
Accounts receivable, allowance for doubtful accounts	$ 801	$ 830
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	37,921,116	37,041,308
Common stock, shares outstanding	37,921,116	37,041,308
Series A Preferred Stock [Member]
Preferred stock, shares authorized	1,000,000	1,000,000
Series B Preferred Stock [Member]
Preferred stock, shares authorized	550,000	550,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Income Statement [Abstract]
Net revenue	$ 95,105	$ 79,296	$ 190,059	$ 156,913
Costs and expenses:
Cost of revenue	74,239	61,007	149,149	121,188
Selling, general, and administrative expense	18,822	14,914	38,360	29,297
(Gain) loss on disposal of assets, net	(25)	4	(232)	12
Total operating expenses	93,036	75,925	187,277	150,497
Operating income	2,069	3,371	2,782	6,416
Other expense:
Interest expense, net	(2,793)	(2,284)	(5,453)	(4,718)
Total other expense	(2,793)	(2,284)	(5,453)	(4,718)
(Loss) income before income taxes	(724)	1,087	(2,671)	1,698
Benefit (provision) for income taxes	384	(695)	(2,987)	(755)
Net (loss) income	$ (340)	$ 392	$ (5,658)	$ 943
Basic (loss) earnings per share of common stock	$ (0.01)	$ 0.01	$ (0.15)	$ 0.03
Diluted (loss) earnings per share of common stock	$ (0.01)	$ 0.01	$ (0.15)	$ 0.03
Weighted average shares of common stock outstanding:
Basic	37,911	34,575	37,742	34,575
Diluted	37,911	35,644	37,742	35,671

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Operating activities
Net (loss) income	$ (5,658)	$ 943
Adjustments to reconcile net (loss) income to cash provided by operating activities:
Depreciation and amortization - cost of revenue	2,794	2,623
Depreciation and amortization - selling, general and administrative expense	6,889	5,391
Stock-based compensation expense	563	357
Provision for bad debts	225	39
Deferred income taxes	2,774	189
(Gain) loss on disposal of assets, net	(232)	12
Amortization of deferred loan costs	691	506
Changes in operating assets and liabilities:
Accounts receivable, net	80	(2,211)
Inventories, net	2,187	199
Collateral deposits	184	1,300
Prepaid expenses and other current assets	578	(606)
Other assets	1,057	(272)
Accounts payable	1,038	(63)
Accrued expenses	(403)	80
Income tax payable	(195)	123
Deferred revenue and customer deposits	(2,183)	351
Other current liabilities	54	(643)
Other liabilities	(317)	1,636
Cash provided by operating activities	10,126	9,954
Investing activities
Acquisitions, net of cash acquired	(9,000)
Proceeds from sales of assets	383	148
Capital expenditures	(2,067)	(6,005)
Cash used for investing activities	(10,684)	(5,857)
Financing activities
Net (payments) proceeds on line of credit	(1,000)	179
Payments on term loan	(8,723)	(6,638)
Proceeds from term loan	7,500
Proceeds from issuance of common stock	1,500
Proceeds from stock option exercise	278
Debt and common stock issuance costs	(332)
Payments on financed insurance premiums		(678)
Payments on capital leases	(1,348)	(1,080)
Cash used for financing activities	(2,125)	(8,217)
Change in cash and cash equivalents	(2,683)	(4,120)
Cash and cash equivalents at beginning of period	5,630	5,279
Cash and cash equivalents at end of period	2,947	1,159
Cash paid during the period for:
Taxes	714	444
Interest	4,596	4,225
Non-cash investing and financing activities:
Capital equipment purchases financed with capital leases	$ 2,734	2,532
Financed insurance premiums		$ 866

Organization and Basis of Prese

Organization and Basis of Presentation	6 Months Ended
	Mar. 31, 2018
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Organization and Basis of Presentation	1. ORGANIZATION AND BASIS OF PRESENTATION Organization ALJ Regional Holdings, Inc. (including subsidiaries, referred to collectively in this Report as “ALJ,” the “Company” or “we”) is a holding company. ALJ’s primary assets as of March 31, 2018, were all of the outstanding capital stock of the following companies: • Faneuil, Inc. (including its subsidiaries, “Faneuil”). • Floors-N-More, LLC, dba, Carpets N’ More (“Carpets”). • Phoenix Color Corp. (including its subsidiaries, “Phoenix”). ALJ has organized its business and corporate structure along the following business segments: Faneuil, Carpets, and Phoenix. ALJ is reported as corporate overhead. Basis of Presentation The interim unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States, or U.S. GAAP, for interim financial information and with the instructions to the Securities and Exchange Commission, or SEC, Form 10-Q and Article 10 of SEC Regulation S-X. They do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. Therefore, these financial statements should be read in conjunction with ALJ’s audited financial statements and notes thereto for the years ended September 30, 2017 and 2016, filed with the Securities and Exchange Commission on December 19, 2017. The Company has made estimates and judgments affecting the amounts reported in its condensed consolidated financial statements and the accompanying notes. Significant estimates and assumptions by management are used for, but are not limited to, determining the fair value of assets and liabilities, including intangible assets acquired and allocation of acquisition purchase prices, estimated useful lives, recoverability of long-lived and intangible assets, the recoverability of goodwill, the realizability of deferred tax assets, stock-based compensation, the likelihood of material loss as a result of loss contingencies, customer lives, the allowance for doubtful accounts and inventory reserves, and calculation of insurance reserves. Actual results may differ materially from estimates. The interim financial information is unaudited but reflects all normal recurring accruals and adjustments that, in the opinion of management, are necessary to present fairly ALJ’s results of operations and financial position for the interim period. The results of operations for the three and six months ended March 31, 2018, are not necessarily indicative of the results expected for future quarters or the full year. For a complete summary of ALJ’s significant accounting policies, please refer to Note 2, “Summary of Significant Accounting Policies,” included with ALJ’s audited financial statements and notes thereto for the years ended September 30, 2017 and 2016, filed with the Securities and Exchange Commission on December 19, 2017. There were no material changes to significant accounting policies during the six months ended March 31, 2018.

Recent Accounting Standards

Recent Accounting Standards	6 Months Ended
	Mar. 31, 2018
Accounting Changes And Error Corrections [Abstract]
Recent Accounting Standards	2. RECENT ACCOUNTING STANDARDS Accounting Standards Adopted In July 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-11, “ Simplifying the Measurement of Inventory (Topic 330): Simplifying the Measurement of Inventory .” The amendments in ASU 2015-11 require an entity to measure inventory at the lower of cost or net realizable value. The amendments do not apply to inventory that is measured using last-in, first out (LIFO) or the retail inventory method. The amendments apply to all other inventory, which includes inventory that is measured using first-in, first-out (FIFO) or average cost. ASU 2015-11 should be applied prospectively. ALJ adopted ASU 2015-11 The standard did not have a significant impact on ALJ’s consolidated financial statements. Accounting Standards Not Yet Adopted In May 2014, the FASB issued ASU 2014-09, “ Revenue from Contracts with Customers Principal versus Agent Considerations (Reporting Revenue Gross versus Net), Identifying Performance Obligations and Licensing, Narrow-Scope Improvements and Practical Expedients,” 2017-10, Service Concession Arrangements (Topic 853): Determining the Customer of the Operation Services. ASU 2014-09 will be effective for ALJ on October 1, 2019 as ALJ has determined that it will not adopt ASU 2014-09 early. ASU 2014-09 allows for two methods of adoption: (a) “full retrospective” adoption, meaning the standard is applied to all periods presented, or (b) “modified retrospective” adoption, meaning the cumulative effect of applying ASU 2014-09 is recognized as an adjustment to the opening retained earnings balance in the year of adoption. ALJ has not yet determined which method it will adopt. As the new standard will supersede substantially all existing revenue guidance, it could impact the timing of ALJ’s revenue and cost of revenue recognition across all business segments. ALJ has formed a project team and has engaged an outside revenue recognition consultant who has completed a revenue recognition adoption roadmap that includes three phases. Phase I is the identification, documentation, and preliminary analysis of how ALJ currently accounts for revenue transactions compared to the revenue accounting required under the new standard. Phase I is expected to be completed in mid-2018. Phase II, which overlaps with Phase I and was started in January 2018, includes a more detailed analysis, including the development of revenue recognition models, data analysis, analyzing implementation options, and finalizing a transition method. Phase II is expected to be completed in late-2018. Phase III includes identification of system requirements, changes to internal controls and business processes, and final implementation. Phase III is expected to be completed in mid-2019. Because of the nature of the work that remains, at this time we are unable to reasonably estimate the impact of adoption on our consolidated financial statements. ALJ’s evaluation of the financial impact and related disclosure of the new standard will likely extend over several future reporting periods. In February 2016, the FASB issued ASU 2016-02, “ Leases ASU 2016-02 requires lessees to recognize a right-of-use asset and corresponding lease liability for all leases with terms of more than 12 months. Recognition, measurement, and presentation of expenses will depend on classification as either a finance or operating lease. ASU 2016-02 also requires certain quantitative and qualitative disclosures. The provisions of ASU 2016-02 should be applied on a modified retrospective basis. ASU 2016-02 will be effective for ALJ on October 1, 2020 as ALJ has determined that it will not adopt ASU 2016-02 early. The adoption of ASU 2016-02 will result in a material increase to the Company’s consolidated balance sheets for lease liabilities and right-of-use assets. The Company is currently evaluating the other effects the adoption of ASU 2016-02 will have on its consolidated financial statements and related disclosures.

Acquisitions

Acquisitions	6 Months Ended
	Mar. 31, 2018
Business Combinations [Abstract]
Acquisitions	3. ACQUISITIONS Printing Components Business On October 2, 2017 (the “Printing Components Business Purchase Date”), Phoenix acquired certain assets and assumed certain liabilities from LSC Communications, Inc. (“LSC”) and Moore-Langen Printing Company, Inc. related to its printing and manufacturing services division in Terre Haute, Indiana. Such assets and liabilities are referred to hereinafter as the “Printing Components Business.” Total purchase price was $10.0 million in cash, subject to customary net working capital adjustments. Phoenix withheld $1.0 million from the consideration paid at closing, which will be paid on October 2, 2018. The Printing Components Business leverages Phoenix’s existing capabilities and core competencies, strengthens its position in the education markets, and expands revenue into new markets. As part of the Printing Components Business acquisition, Phoenix and LSC entered into a supply agreement (the “Supply Agreement”). Pursuant to the Supply Agreement, LSC agreed to purchase from Phoenix its print requirements to continue servicing certain of its customers, buy minimum amounts of certain components from Phoenix, and provide Phoenix with a right of last refusal to supply certain non-component work. Phoenix and ALJ financed the acquisition by borrowing $7.5 million under a term loan with Cerberus, selling an aggregate of $1.5 million of ALJ common stock in a private offering to two investors who are unaffiliated with ALJ, and using $1.0 million cash from the exercise of stock options by Jess Ravich, Executive Chairman of ALJ. ALJ amended its financing agreement with Cerberus to facilitate the term loan (Note 7). The following schedule reflects the estimated fair value of assets acquired and liabilities assumed on the Printing Components Business Purchase Date and the purchase price details ( in thousands Purchase Price Balance Sheet Caption Allocation Total current assets $ 1,767 Fixed assets 2,273 Identified intangible asset - supply agreement 4,700 Goodwill 1,408 Total assets 10,148 Total current liabilities (148 ) Purchase price $ 10,000 Break Out of Components of Purchase Price Consideration Term loan $ 7,500 Common stock issued 1,500 Cash received from exercise of stock option 1,000 Purchase price $ 10,000 The Company accounted for the Printing Components Business acquisition using the purchase method of accounting. Accordingly, the assets and liabilities were recorded at their fair values at the date of acquisition. The excess of the purchase price over the fair value of the tangible and intangible assets acquired and the liabilities assumed was recorded as goodwill. During the measurement period, if new information is obtained about facts and circumstances that existed as of the acquisition date, cumulative changes in the estimated fair values of the net assets recorded may change the amount of the purchase price allocable to goodwill. During the measurement period, which expires one year from the acquisition date, changes to any purchase price allocations that are material to the Company's consolidated financial results will be adjusted in the reporting period in which the adjustment amount is determined. During the three and six months ended March 31, 2018, the Printing Components Business recorded $3.6 million and $8.1 million of net revenue, respectively. Because the Printing Components Business was closely aligned with Phoenix’s existing business, including the overlap of customers, its operations were immediately integrated into Phoenix’s operations, and financial metrics other than net revenue were not separately tracked. During the three and six months ended March 31, 2018, the Company incurred $0 and $123,000, respectively, of acquisition-related costs in connection with the Printing Components Business acquisition, which were expensed to selling, general and administrative expense. Customer Management Outsourcing Business On May 26, 2017 (the “CMO Business Purchase Date”), Faneuil acquired certain assets and assumed certain liabilities associated with the customer management outsourcing business (“CMO Business”) of Vertex Business Services LLC. The CMO Business, which was purchased to expand Faneuil’s presence into the utilities market, provides direct customer care call center operations, back-office processes, including billing, collections and business analytics, and installation and cloud-based customer care support exclusively for the utilities industry. The following schedule reflects the fair value of assets acquired and liabilities assumed on the CMO Business Purchase Date and the purchase price details ( in thousands Purchase Price Balance Sheet Caption Allocation Total current assets $ 3,947 Fixed assets 553 Identified intangible assets: Customer relationships 3,790 Supply agreements/contract backlog 5,418 Non-compete agreements 250 Goodwill 1,547 Total assets 15,505 Total current liabilities (2,760 ) Purchase price $ 12,745 Break Out of Components of Purchase Price Consideration Line of credit $ 5,500 Common stock issued 4,708 Cash 2,537 Purchase price $ 12,745 During the three and six months ended March 31, 2018, the CMO Business recorded $8.4 and $17.0 million of net revenue, respectively. Because the CMO Business has been integrated into Faneuil’s operations, financial metrics other than net revenue were not separately tracked.

Concentration Risks

Concentration Risks	6 Months Ended
	Mar. 31, 2018
Risks And Uncertainties [Abstract]
Concentration Risks	4. CONCENTRATION RISKS Cash The Company maintains its cash balances in accounts, which, at times, may exceed federally insured limits. The Company has not experienced any loss in such accounts and believes there is little exposure to any significant credit risk. Major Customers and Accounts Receivable ALJ did not have any customer with net revenue in excess of 10% of consolidated net revenue. Each of ALJ’s segments had customers that represent more than 10% of their respective net revenue, as described below. Faneuil Three Months Ended March 31, Six Months Ended March 31, 2018 2017 2018 2017 Customer A 14.8 % 19.3 % 14.5 % 18.8 % Customer B 12.3 16.4 13.3 16.1 Customer C 10.3 ** ** ** Customer D ** 12.8 ** 12.0 ** Less than 10% of Faneuil net revenue. Trade receivables from these customers totaled $9.3 million on March 31, 2018. As of March 31, 2018, all Faneuil accounts receivable were unsecured. The risk with respect to accounts receivable is mitigated by credit evaluations performed on customers and the short duration of payment terms extended to customers. Carpets Three Months Ended March 31, Six Months Ended March 31, 2018 2017 2018 2017 Customer A 29.9 % 26.3 % 28.4 % 27.3 % Customer B 21.2 33.5 23.0 31.0 Customer C 17.3 18.6 20.9 17.4 Trade receivables from these customers totaled $3.5 million on March 31, 2018. As of March 31, 2018, all Carpets accounts receivable were unsecured. The risk with respect to accounts receivable is mitigated by credit evaluations performed on customers and the short duration of payment terms extended to customers. Phoenix Three Months Ended March 31, Six Months Ended March 31, 2018 2017 2018 2017 Customer A 21.1 % 20.0 % 18.7 % 20.5 % Customer B 15.9 ** 17.3 ** Customer C 11.0 14.2 ** ** Customer D ** 12.4 10.1 11.1 ** Less than 10% of Phoenix net revenue. Trade receivables from these customers totaled $4.7 million on March 31, 2018. As of March 31, 2018, all Phoenix accounts receivable were unsecured. The risk with respect to accounts receivable is mitigated by credit evaluations performed on customers and the short duration of payment terms extended to customers. Supplier Risk ALJ did not have any suppliers that represented more than 10% of consolidated inventory purchases. However, two of ALJ’s segments had suppliers that represented more than 10% of their respective inventory purchases, as described below. Carpets Three Months Ended March 31, Six Months Ended March 31, 2018 2017 2018 2017 Supplier A 23.5 % 28.0 % 22.9 % 27.5 % Supplier B 16.6 21.9 18.0 20.8 Supplier C 14.0 10.9 13.7 10.9 Supplier D ** 11.3 ** ** ** Less than 10% of Carpets inventory purchases. If these suppliers were unable to provide materials on a timely basis, Carpets management believes alternative suppliers could provide the required materials with minimal disruption to the business. Phoenix Three Months Ended March 31, Six Months Ended March 31, 2018 2017 2018 2017 Supplier A 30.7 % 30.6 % 30.1 % 26.4 % Supplier B ** ** 10.8 ** If these suppliers were unable to provide materials on a timely basis, Phoenix management believes alternative suppliers could provide the required supplies with minimal disruption to the business.

Composition of Certain Financia

Composition of Certain Financial Statement Captions	6 Months Ended
	Mar. 31, 2018
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Composition of Certain Financial Statement Captions	5. COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS Accounts Receivable, Net The following table summarizes accounts receivable at the end of each reporting period ( in thousands March 31, September 30, 2018 2017 Accounts receivable $ 45,835 $ 47,216 Unbilled receivables 4,118 3,071 Accounts receivable 49,953 50,287 Less: Allowance for doubtful accounts (801 ) (830 ) Accounts receivable, net $ 49,152 $ 49,457 Inventories, Net The following table summarizes inventories at the end of each reporting period ( in thousands March 31, September 30, 2018 2017 Raw materials $ 3,745 $ 3,127 Semi-finished goods/work in process 2,414 4,064 Finished goods 2,782 2,378 Inventories 8,941 9,569 Less: Allowance for obsolete inventory (246 ) (193 ) Inventories, net $ 8,695 $ 9,376 Property and Equipment The following table summarizes property and equipment at the end of each reporting period ( in thousands March 31, September 30, 2018 2017 Machinery and equipment $ 24,812 $ 22,753 Building and improvements 16,323 15,593 Software 15,199 12,276 Computer and office equipment 10,718 10,344 Land 9,267 9,167 Leasehold improvements 9,341 8,997 Furniture and fixtures 3,607 3,595 Vehicles 306 229 Construction in process 211 136 Property and equipment 89,784 83,090 Less: Accumulated depreciation and amortization (35,452 ) (28,755 ) Property and equipment, net $ 54,332 $ 54,335 Property and equipment depreciation and amortization expense, including amounts related to capitalized leased assets, Goodwill The following table summarizes goodwill by reportable segment at the end of each reporting period ( in thousands March 31, September 30, 2018 2017 Faneuil $ 21,276 $ 21,276 Carpets 2,555 2,555 Phoenix 32,541 31,133 Goodwill $ 56,372 $ 54,964 Intangible Assets The following table summarizes identified intangible assets at the end of each reporting period ( in thousands March 31, 2018 September 30, 2017 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Customer relationships $ 34,400 $ (8,888 ) $ 25,512 $ 34,400 $ (7,446 ) $ 26,954 Trade names 10,760 (1,358 ) 9,402 10,760 (1,143 ) 9,617 Supply agreements/contract backlog 10,358 (1,128 ) 9,230 5,658 (420 ) 5,238 Non-compete agreements 3,030 (2,201 ) 829 3,030 (1,858 ) 1,172 Internal software 580 (430 ) 150 580 (382 ) 198 Totals $ 59,128 $ (14,005 ) $ 45,123 $ 54,428 $ (11,249 ) $ 43,179 Intangible asset amortization expense was $1,375,000 and $1,009,000 for the three months ended March 31, 2018 and 2017, respectively, and $2,756,000 and $2,017,000 for the six months ended March 31, 2018 and 2017, respectively. The following table presents expected future amortization expense for the remainder in thousands Estimated Future Amortization Remainder of Fiscal 2018 $ 2,723 Fiscal 2019 5,099 Fiscal 2020 4,800 Fiscal 2021 4,485 Fiscal 2022 4,067 Thereafter 23,949 Total $ 45,123 Debt The following table summarizes ALJ’s line of credit, and current and noncurrent term loan payables at the end of each reporting period ( in thousands March 31, September 30, 2018 2017 Line of credit: Line of credit $ 4,500 $ 5,500 Less: deferred loan costs (82 ) (170 ) Line of credit, net of deferred loan costs $ 4,418 $ 5,330 Current portion of term loan: Current portion of term loan $ 9,187 $ 12,764 Less: deferred loan costs (936 ) (916 ) Current portion of term loan, net of deferred loan costs $ 8,251 $ 11,848 Term loan payable, less current portion: Term loan payable, less current portion $ 80,608 $ 78,254 Less: deferred loan costs (1,144 ) (1,501 ) Term loan payable, less current portion, net of deferred loan costs $ 79,464 $ 76,753 Accrued Expenses The following table summarizes accrued expenses at the end of each reporting period ( in thousands March 31, September 30, 2018 2017 Accrued compensation and related taxes $ 7,905 $ 7,370 Legal and other 1,260 1,466 Rebates payable 1,062 2,014 Interest payable 817 651 Medical and benefit-related payables 454 431 Accrued board of director fees 390 370 Deferred rent 194 208 Sales tax payable 191 151 Accrued expenses $ 12,273 $ 12,661 Workers’ Compensation Reserve Faneuil Carpets Phoenix.

(Loss) Earnings Per Share

(Loss) Earnings Per Share	6 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
(Loss) Earnings Per Share	6. (LOSS) EARNINGS PER SHARE ALJ computed basic and diluted (loss) earnings per common share for each period as follows ( in thousands, except per share amounts Three Months Ended March 31, Six Months Ended March 31, 2018 2017 2018 2017 Net (loss) income $ (340 ) $ 392 $ (5,658 ) $ 943 Weighted average shares of common stock outstanding - basic 37,911 34,575 37,742 34,575 Potentially dilutive effect of options to purchase common stock — 1,069 — 1,096 Weighted average shares of common stock outstanding – diluted 37,911 35,644 37,742 35,671 Basic (loss) earnings per share of common stock $ (0.01 ) $ 0.01 $ (0.15 ) $ 0.03 Diluted (loss) earnings per share of common stock $ (0.01 ) $ 0.01 $ (0.15 ) $ 0.03 ALJ computed basic earnings per share of common stock using net (loss) income divided by the weighted average number of shares of common stock outstanding during the period. ALJ computed diluted earnings per share of common stock using net (loss) income divided by the weighted average number of shares of common stock outstanding plus potentially dilutive shares of common stock outstanding during the period. Potentially dilutive shares issuable upon exercise of options to purchase common stock were determined by applying the treasury stock method to the assumed exercise of outstanding stock options. Stock options to purchase 1,614,000 shares of common stock were not considered in calculating ALJ’s diluted earnings per common share for the three and six months ended March 31, 2018 as their effect would be anti-dilutive.

Debt

Debt	6 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
Debt	7. DEBT Term Loan and Line of Credit In August 2015, ALJ entered into a financing agreement (“Financing Agreement”) with Cerberus Business Finance, LLC (“Cerberus”), to borrow $105.0 million in a term loan (“Cerberus Term Loan”) and have available up to $30.0 million in a revolving loan (“Cerberus/PNC Revolver,” and together with the Cerberus Term Loan, the “Cerberus Debt”). ALJ has subsequently entered into three amendments to the Financing Agreement. The Financing Agreement and three amendments are summarized below ( in thousands Description Use of Proceeds Origination Date Interest Rate * Quarterly Payments Balance at March 31, 2018 Term Loan: Financing Agreement Phoenix acquisition August 2015 7.99% to 8.63% $ 1,969 $ 74,798 First Amendment Color Optics acquisition July 2016 7.99% to 8.63% 187 8,093 Third Amendment Printing Components Business acquisition October 2017 7.99% to 8.63% 141 6,904 Totals $ 2,297 $ 89,795 Line of Credit: Cerberus/PNC Revolver Working capital August 2015 10.00% to 10.50% $ — $ — Second Amendment CMO Business acquisition May 2017 7.99% to 8.63% — 4,500 Totals $ — $ 4,500 * Range of annual interest rates accrued during the six months ended March 31, 2018. Interest payments are due in arrears on the first day of each month. Quarterly principal payments are due on the last day of each fiscal quarter. Annual principal payments equal to 75% of ALJ’s excess cash flow (“ECF”), as defined in the Financing Agreement, are due upon delivery of the audited financial statements. During December 2017, ALJ made an ECF payment of $4.1 million. A final balloon payment is due at maturity, August 14, 2020. There is a prepayment penalty equal to 1% if the Cerberus Term Loan is repaid prior to August 2018. ALJ may make payments of up to $7.0 million against the loan with no penalty. The Cerberus Debt is secured by substantially all the Company’s assets and imposes certain limitations on the Company, including its ability to incur debt, grant liens, initiate certain investments, declare dividends and dispose of assets. The Cerberus Debt also requires ALJ to comply with certain debt covenants. As of March 31, 2018, ALJ was in compliance with all debt covenants and had unused borrowing capacity of $19.1 million. Deferred Loan Costs During the six months ended March 31, 2018, in connection with the Third Amendment, ALJ paid legal and other fees totaling $0.3 million, which were deferred and are being amortized to interest expense over the life of the debt. Contingent Loan Costs As part of the Second Amendment, ALJ paid Cerberus an amendment fee. Additionally, as part of the Second Amendment, ALJ is required to pay a fee in each of three consecutive annual periods commencing May 27, 2018 and ending on the termination date, if at any time during each annual period there are any amounts outstanding on the Cerberus/PNC Revolver (“Contingent Payments”). Such Contingent Payments become due and payable on the first day within each annual period there is an outstanding balance on the Cerberus/PNC Revolver. Cerberus Debt Estimated Future Minimum Payments Estimated future minimum payments are as follows ( in thousands Year Ending March 31, Future Minimum Payments 2019 $ 9,187 2020 9,187 2021* 75,921 Total $ 94,295 * The majority of this amount is the final balloon payment due at maturity, August 14, 2020. Capital Lease Obligations Faneuil and Phoenix lease equipment under non-cancelable capital leases. As of March 31, 2018, future minimum payments under non-cancelable capital leases with initial or remaining terms of one year or more are as follows ( in thousands Year Ending March 31, Estimated Future Payments 2019 $ 3,265 2020 2,514 2021 1,952 2022 536 2023 536 Thereafter 435 Total minimum required payments 9,238 Less: current portion of capital lease obligations (3,022 ) Less: imputed interest (603 ) Capital lease obligations, less current portion $ 5,613

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Mar. 31, 2018
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	8. COMMITMENTS AND CONTINGENCIES Operating Leases The Company leases real estate, equipment, and vehicles under noncancellable operating leases. As of March 31, 2018, future minimum rental commitments under noncancellable leases were as follows ( in thousands Year Ending March 31, Future Minimum Lease Payments 2019 $ 5,035 2020 4,208 2021 3,051 2022 2,016 2023 1,452 Thereafter 8,845 Total $ 24,607 Employment Agreements ALJ maintains employment agreements with certain key executive officers that provide for a base salary and annual bonus to be determined by the Board of Directors. The agreements also provide for termination payments, which includes base salary and performance bonus, stock options, non-competition provisions, and other terms and conditions of employment. As of March 31, 2018, termination payments related to base salary totaled $1.3 million. Surety Bonds As part of Faneuil’s normal course of operations, certain customers require surety bonds guaranteeing the performance of a contract. As of March 31, 2018, the face value of such surety bonds, which represents the maximum cash payments that Faneuil’s surety would be obligated to pay under certain circumstances of non-performance, was $29.1 million. To date, Faneuil’s surety has not made any non-performance payments. Litigation, Claims, and Assessments Faneuil, Inc. v. 3M Company Faneuil filed a complaint against 3M Company on September 22, 2016, in the Circuit Court for the City of Richmond, Virginia. The dispute arises out of a subcontract entered into between 3M and Faneuil in relation to a toll road project in Portsmouth, Virginia. Under the terms of the subcontract, Faneuil provides certain services to 3M as part of 3M’s agreement to provide services to Elizabeth River Crossing (“ERC”). After multiple attempts to resolve a dispute over unpaid invoices failed, Faneuil determined to file suit against 3M to collect on its outstanding receivables. In its complaint, Faneuil seeks recovery of $5.1 million based on three causes of action: breach of contract, breach of the implied covenant of good faith and fair dealing, and unjust enrichment. On October 14, 2016, 3M filed its answer and counterclaim against Faneuil. In its counterclaim, 3M seeks recovery in excess of $10.0 million based on three claims: breach of contract/indemnification, breach of the implied covenant of good faith and fair dealing, and unjust enrichment. 3M’s counterclaim alleges it incurred approximately $3.2 million in damages payable to ERC as a result of Faneuil’s conduct and seeks indemnification of an additional $10.0 million in damages incurred as a result of continued performance under its contract with ERC. Subsequent to filing suit against 3M, Faneuil entered into an agreement with ERC whereby ERC would become responsible for paying Faneuil directly for all services rendered from April 1, 2016, through December 31, 2016. That agreement resulted in a payment from ERC to Faneuil on December 8, 2016, which resolved a portion of the $5.1 million claim against 3M. During June 2017, ERC transitioned the services that were provided by Faneuil to an internal customer service operation. As a result of this transition, Faneuil no longer provides services to 3M or ERC. ERC continues to reimburse Faneuil for immaterial transition costs incurred by Faneuil. The matter was tried in a bench trial from April 30, 2018 through May 2, 2018. The parties presented findings of fact, conclusions of law and final arguments to the court on May 8, 2018. As of the date of this filing, the court had not issued a final ruling. Faneuil believes the facts support its claims that the disputed services should be paid and that 3M’s counterclaims are without merit. Although litigation is inherently unpredictable, Faneuil remains confident in its ability to collect all of its outstanding receivables from 3M. McNeil, et al. v. Faneuil, Inc. Tammy McNeil, a former Faneuil call center employee, filed a Fair Labor Standards Act collective action case against Faneuil in federal court in Newport News, Virginia in 2015. The class action asserted various timekeeping and overtime violations, which Faneuil denied. On June 6, 2017, the case was settled by the parties as part of a court-ordered mediation, for $0.3 million in damages, plus plaintiff’s attorney fees. Because the parties could not agree on the dollar amount of plaintiff’s attorney fees, both parties agreed to allow the court to determine the amount. The court awarded $0.7 million in attorney’s fees and overruled Faneuil’s objections to the recommendation of the magistrate judge relating to that amount. Neither party appealed the decision. Marshall v. Faneuil, Inc. On July 31, 2017, plaintiff Donna Marshall (“Marshall”), filed a proposed class action lawsuit in the Superior Court of the State of California for the County of Sacramento against Faneuil and ALJ. Marshall, a previously terminated Faneuil employee, alleges various California state law employment-related claims against Faneuil. Faneuil has answered the complaint and removed the matter to the United States District Court for the Eastern District of California; however, Marshall filed a motion to remand the case back to state court. The motion to remand has been fully briefed and argued and remains pending before the court. The case is in an early stage and the parties have not begun substantive discovery at this time. Faneuil believes this action is without merit and intends to defend it vigorously. Thornton v. ALJ Regional Holdings, Inc., et al. On September 21, 2016, plaintiffs Clifford Thornton and Tracey Thornton filed a complaint in the Nevada District Court for Clark County against ALJ, Carpets, Steve Chesin, and Jess Ravich. The complaint includes claims for (1) fraud, (2) bad faith, (3) civil conspiracy, (4) unjust enrichment, (5) wrongful termination, (6) intentional infliction of emotional distress, (7) negligent infliction of emotional distress, and (8) loss of marital consortium. Trax and Cilley, et al. v. Faneuil Inc., et al. On February 23, 2018, plaintiffs Trax and Cilley filed a proposed class action against Faneuil and one of its clients, the Transportation Corridor Agencies, in the United States District Court for the Southern District of California. The plaintiffs allege claims for violations of the Fair Debt Collection Practices Act, the state law corollary and California’s unfair competition law. Plaintiffs’ claims arise out of collections-related activity that Faneuil does not perform under its contract with the Transportation Corridor Agencies. Faneuil therefore believes the case is entirely without merit and intends to defend it vigorously. Faneuil has filed a motion to dismiss which will be heard by the court in June. In connection with its pending litigation matters (including the matters described above), management has estimated the range of possible loss, including fees and expenses, to be between $1.6 million and $2.4 million; however, as management has determined that no one estimate within the range is better than another, it has accrued $1.6 million as of March 31, 2018. Other Litigation We and our subsidiaries have been named in, and from time to time may become named in, various other lawsuits or threatened actions that are incidental to our ordinary business. Litigation is inherently unpredictable. Any claims against us, whether meritorious or not, could be time-consuming, cause us to incur costs and expenses, require significant amounts of management time and result in the diversion of significant operational resources. The results of these lawsuits and actions cannot be predicted with certainty. We concluded as of March 31, 2018 that the ultimate resolution of these matters will not have a material adverse effect on our business, consolidated financial position, results of operations or cash flows.

Equity

Equity	6 Months Ended
	Mar. 31, 2018
Equity [Abstract]
Equity	9. EQUITY Common Stock Activity during the Six Months Ended March 31, 2018 ALJ’s common stock activity for the six months ended March 31, 2018 consisted of the following: • Sold 477,706 shares of common stock, at $3.14 per share, to two unaffiliated shareholders in connection with financing the Moore-Langen acquisition (Note 3). • Issued 102,102 shares of common stock to members of ALJ’s Board of Directors as compensation for the period from July 1, 2016 to June 30, 2017. See “ Common Stock Awards • Issued 300,000 shares of common stock upon exercise of options at a weighted-average exercise price of $0.93 per share. Common Stock Activity during the Six Months Ended March 31, 2017 ALJ did not have any common stock activity during the six months ended March 31, 2017. Equity Incentive Plans ALJ’s equity incentive plans are broad-based, long-term programs intended to attract and retain talented employees and align stockholder and employee interests. Stock-Based Compensation. The following table sets forth the total stock-based compensation expense included in ALJ’s Statements of Operations ( in thousands Three Months Ended March 31, Six Months Ended March 31, 2018 2017 2018 2017 Stock options $ 167 $ 89 $ 358 $ 187 Common stock awards 103 85 205 170 Total stock-based compensation expense $ 270 $ 174 $ 563 $ 357 At March 31, 2018, ALJ had approximately $0.8 million of total unrecognized compensation cost related to unvested stock options. This cost is expected to be recognized over a weighted-average period of approximately 1.9 years. Stock Option Awards The “intrinsic value” of options is the excess of the value of ALJ stock over the exercise price of such options. The total intrinsic value of options outstanding (of which all are vested or expected to vest) was approximately $0.1 million at March 31, 2018. Common Stock Awards Members of ALJ’s Board of Directors receive a director compensation package that includes an annual common stock award. In connection with such awards, ALJ recorded stock-based compensation expense of

Income Taxes

Income Taxes	6 Months Ended
	Mar. 31, 2018
Income Tax Disclosure [Abstract]
Income Taxes	10. INCOME TAX United States Tax Reform On December 22, 2017, the President of the United States signed and enacted into law H.R. 1 (the “Tax Reform Law”). The Tax Reform Law, effective for tax years beginning on or after January 1, 2018, except for certain provisions, resulted in significant changes to existing United States tax law, including various provisions that will impact ALJ. Below is a summary of the provisions of the Tax Reform Law that management believes will be most impactful to ALJ. Federal Corporate Tax Rate Reduction. Interest Expense Limitation. Bonus Depreciation Pursuant to Accounting Standards Codification (“ASC”) Topic 740-10, “ Income Taxes

Related-Party Transactions

Related-Party Transactions	6 Months Ended
	Mar. 31, 2018
Related Party Transactions [Abstract]
Related-Party Transactions	11. RELATED-PARTY TRANSACTIONS Harland Clarke Holdings Corp. (“Harland Clarke”), a stockholder who owns ALJ shares in excess of five percent, is a counterparty to Faneuil in two contracts. One contract provides call center services to support Harland Clarke’s banking-related products and renews annually every April. The other contract provides dispatch services for managed print operations and concluded September 30, 2017. Faneuil recognized revenue from Harland Clarke totaling $81,000 and $175,000 for the three and six months ended March 31, 2018, respectively, and $272,000 and $599,000 for the three and six months ended March 31, 2017, respectively. The associated cost of revenue was $83,000 and $177,000 for the three and six months ended March 31, 2018, respectively, and $256,000 and $564,000 for the three and six months ended March 31, 2017, respectively. All revenue from Harland Clarke contained similar terms and conditions as those found in other transactions of this nature entered into by ALJ and its subsidiaries. Total accounts receivable from Harland Clarke was $55,000 and $106,000 at March 31, 2018 and September 30, 2017, respectively.

Reportable Segments and Geograp

Reportable Segments and Geographic Information	6 Months Ended
	Mar. 31, 2018
Segment Reporting [Abstract]
Reportable Segments and Geographic Information	12. REPORTABLE SEGMENTS AND GEOGRAPHIC INFORMATION Reportable Segments As discussed in Note 1, ALJ has organized its business along three reportable segments (Faneuil, Carpets, and Phoenix), together with a corporate group for certain support services. ALJ’s operating segments are aligned on the basis of products, services, and industry. The Chief Operating Decision Maker (“CODM”) is ALJ’s Executive Chairman. The CODM manages the business, allocates resources to, and assesses the performance of each operating segment using information about its net revenue and segment adjusted EBITDA. ALJ defines segment adjusted EBITDA as segment net income (loss) before interest expense, provision for income taxes, depreciation and amortization expense, stock-based compensation expense, restructuring expense, acquisition-related expense, loss (gain) on sales of assets, and other non-recurring items. Such amounts are detailed in our segment reconciliation below. The accounting policies for segment reporting are the same as for ALJ as a whole. The following tables present ALJ’s segment information for the three and six months ended March 31, 2018 and 2017 ( in thousands Three Months Ended March 31, 2018 Faneuil Carpets Phoenix ALJ Total Net revenue $ 47,953 $ 18,691 $ 28,461 $ — $ 95,105 Segment adjusted EBITDA $ 2,915 $ (240 ) $ 5,459 $ (540 ) $ 7,594 Interest expense (2,793 ) Provision for income taxes 384 Depreciation and amortization (4,850 ) Stock-based compensation (270 ) Restructuring expenses (430 ) Gain on sales of assets 25 Net loss $ (340 ) Six Months Ended March 31, 2018 Faneuil Carpets Phoenix ALJ Total Net revenue $ 99,427 $ 35,341 $ 55,291 $ — $ 190,059 Segment adjusted EBITDA $ 6,625 $ (966 ) $ 9,619 $ (1,096 ) $ 14,182 Interest expense (5,453 ) Provision for income taxes (2,987 ) Depreciation and amortization (9,683 ) Stock-based compensation (563 ) Restructuring expenses (1,263 ) Acquisition-related expenses (123 ) Gain on sales of assets 232 Net loss $ (5,658 ) Three Months Ended March 31, 2017 Faneuil Carpets Phoenix ALJ Total Net revenue $ 36,722 $ 17,905 $ 24,669 $ — $ 79,296 Segment adjusted EBITDA $ 2,929 $ 261 $ 4,863 $ (390 ) $ 7,663 Interest expense (2,284 ) Provision for income taxes (695 ) Depreciation and amortization (4,053 ) Stock-based compensation (174 ) Restructuring expenses (61 ) Loss on sales of assets (4 ) Net income $ 392 Six Months Ended March 31, 2017 Faneuil Carpets Phoenix ALJ Total Net revenue $ 74,773 $ 33,449 $ 48,691 $ — $ 156,913 Segment adjusted EBITDA $ 6,690 $ 215 $ 9,211 $ (1,224 ) $ 14,892 Interest expense (4,718 ) Provision for income taxes (755 ) Depreciation and amortization (8,014 ) Stock-based compensation (357 ) Restructuring expenses (93 ) Loss on sales of assets (12 ) Net income $ 943 Geographic Information Substantially all of the Company’s assets were located in the United States. Substantially all of the Company’s revenue was earned in the United States.

Organization and Basis of Pre18

Organization and Basis of Presentation (Policies)	6 Months Ended
	Mar. 31, 2018
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Organization	Organization ALJ Regional Holdings, Inc. (including subsidiaries, referred to collectively in this Report as “ALJ,” the “Company” or “we”) is a holding company. ALJ’s primary assets as of March 31, 2018, were all of the outstanding capital stock of the following companies: • Faneuil, Inc. (including its subsidiaries, “Faneuil”). • Floors-N-More, LLC, dba, Carpets N’ More (“Carpets”). • Phoenix Color Corp. (including its subsidiaries, “Phoenix”). ALJ has organized its business and corporate structure along the following business segments: Faneuil, Carpets, and Phoenix. ALJ is reported as corporate overhead.
Basis of Presentation	Basis of Presentation The interim unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States, or U.S. GAAP, for interim financial information and with the instructions to the Securities and Exchange Commission, or SEC, Form 10-Q and Article 10 of SEC Regulation S-X. They do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. Therefore, these financial statements should be read in conjunction with ALJ’s audited financial statements and notes thereto for the years ended September 30, 2017 and 2016, filed with the Securities and Exchange Commission on December 19, 2017. The Company has made estimates and judgments affecting the amounts reported in its condensed consolidated financial statements and the accompanying notes. Significant estimates and assumptions by management are used for, but are not limited to, determining the fair value of assets and liabilities, including intangible assets acquired and allocation of acquisition purchase prices, estimated useful lives, recoverability of long-lived and intangible assets, the recoverability of goodwill, the realizability of deferred tax assets, stock-based compensation, the likelihood of material loss as a result of loss contingencies, customer lives, the allowance for doubtful accounts and inventory reserves, and calculation of insurance reserves. Actual results may differ materially from estimates. The interim financial information is unaudited but reflects all normal recurring accruals and adjustments that, in the opinion of management, are necessary to present fairly ALJ’s results of operations and financial position for the interim period. The results of operations for the three and six months ended March 31, 2018, are not necessarily indicative of the results expected for future quarters or the full year. For a complete summary of ALJ’s significant accounting policies, please refer to Note 2, “Summary of Significant Accounting Policies,” included with ALJ’s audited financial statements and notes thereto for the years ended September 30, 2017 and 2016, filed with the Securities and Exchange Commission on December 19, 2017. There were no material changes to significant accounting policies during the six months ended March 31, 2018.
Recent Accounting Standards	2. RECENT ACCOUNTING STANDARDS Accounting Standards Adopted In July 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-11, “ Simplifying the Measurement of Inventory (Topic 330): Simplifying the Measurement of Inventory .” The amendments in ASU 2015-11 require an entity to measure inventory at the lower of cost or net realizable value. The amendments do not apply to inventory that is measured using last-in, first out (LIFO) or the retail inventory method. The amendments apply to all other inventory, which includes inventory that is measured using first-in, first-out (FIFO) or average cost. ASU 2015-11 should be applied prospectively. ALJ adopted ASU 2015-11 The standard did not have a significant impact on ALJ’s consolidated financial statements. Accounting Standards Not Yet Adopted In May 2014, the FASB issued ASU 2014-09, “ Revenue from Contracts with Customers Principal versus Agent Considerations (Reporting Revenue Gross versus Net), Identifying Performance Obligations and Licensing, Narrow-Scope Improvements and Practical Expedients,” 2017-10, Service Concession Arrangements (Topic 853): Determining the Customer of the Operation Services. ASU 2014-09 will be effective for ALJ on October 1, 2019 as ALJ has determined that it will not adopt ASU 2014-09 early. ASU 2014-09 allows for two methods of adoption: (a) “full retrospective” adoption, meaning the standard is applied to all periods presented, or (b) “modified retrospective” adoption, meaning the cumulative effect of applying ASU 2014-09 is recognized as an adjustment to the opening retained earnings balance in the year of adoption. ALJ has not yet determined which method it will adopt. As the new standard will supersede substantially all existing revenue guidance, it could impact the timing of ALJ’s revenue and cost of revenue recognition across all business segments. ALJ has formed a project team and has engaged an outside revenue recognition consultant who has completed a revenue recognition adoption roadmap that includes three phases. Phase I is the identification, documentation, and preliminary analysis of how ALJ currently accounts for revenue transactions compared to the revenue accounting required under the new standard. Phase I is expected to be completed in mid-2018. Phase II, which overlaps with Phase I and was started in January 2018, includes a more detailed analysis, including the development of revenue recognition models, data analysis, analyzing implementation options, and finalizing a transition method. Phase II is expected to be completed in late-2018. Phase III includes identification of system requirements, changes to internal controls and business processes, and final implementation. Phase III is expected to be completed in mid-2019. Because of the nature of the work that remains, at this time we are unable to reasonably estimate the impact of adoption on our consolidated financial statements. ALJ’s evaluation of the financial impact and related disclosure of the new standard will likely extend over several future reporting periods. In February 2016, the FASB issued ASU 2016-02, “ Leases ASU 2016-02 requires lessees to recognize a right-of-use asset and corresponding lease liability for all leases with terms of more than 12 months. Recognition, measurement, and presentation of expenses will depend on classification as either a finance or operating lease. ASU 2016-02 also requires certain quantitative and qualitative disclosures. The provisions of ASU 2016-02 should be applied on a modified retrospective basis. ASU 2016-02 will be effective for ALJ on October 1, 2020 as ALJ has determined that it will not adopt ASU 2016-02 early. The adoption of ASU 2016-02 will result in a material increase to the Company’s consolidated balance sheets for lease liabilities and right-of-use assets. The Company is currently evaluating the other effects the adoption of ASU 2016-02 will have on its consolidated financial statements and related disclosures.

Acquisitions (Tables)

Acquisitions (Tables)	6 Months Ended
	Mar. 31, 2018
Printing Components Business [Member]
Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed on Business Purchase Date and Purchase Price Details	The following schedule reflects the estimated fair value of assets acquired and liabilities assumed on the Printing Components Business Purchase Date and the purchase price details ( in thousands Purchase Price Balance Sheet Caption Allocation Total current assets $ 1,767 Fixed assets 2,273 Identified intangible asset - supply agreement 4,700 Goodwill 1,408 Total assets 10,148 Total current liabilities (148 ) Purchase price $ 10,000 Break Out of Components of Purchase Price Consideration Term loan $ 7,500 Common stock issued 1,500 Cash received from exercise of stock option 1,000 Purchase price $ 10,000
CMO Business [Member]
Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed on Business Purchase Date and Purchase Price Details	The following schedule reflects the fair value of assets acquired and liabilities assumed on the CMO Business Purchase Date and the purchase price details ( in thousands Purchase Price Balance Sheet Caption Allocation Total current assets $ 3,947 Fixed assets 553 Identified intangible assets: Customer relationships 3,790 Supply agreements/contract backlog 5,418 Non-compete agreements 250 Goodwill 1,547 Total assets 15,505 Total current liabilities (2,760 ) Purchase price $ 12,745 Break Out of Components of Purchase Price Consideration Line of credit $ 5,500 Common stock issued 4,708 Cash 2,537 Purchase price $ 12,745

Concentration Risks (Tables)

Concentration Risks (Tables)	6 Months Ended
	Mar. 31, 2018
Sales Revenue, Segment [Member] | Faneuil [Member]
Schedule of Concentration Percentage of Different Customers	Faneuil Three Months Ended March 31, Six Months Ended March 31, 2018 2017 2018 2017 Customer A 14.8 % 19.3 % 14.5 % 18.8 % Customer B 12.3 16.4 13.3 16.1 Customer C 10.3 ** ** ** Customer D ** 12.8 ** 12.0 ** Less than 10% of Faneuil net revenue.
Sales Revenue, Segment [Member] | Carpets [Member]
Schedule of Concentration Percentage of Different Customers	Carpets Three Months Ended March 31, Six Months Ended March 31, 2018 2017 2018 2017 Customer A 29.9 % 26.3 % 28.4 % 27.3 % Customer B 21.2 33.5 23.0 31.0 Customer C 17.3 18.6 20.9 17.4
Sales Revenue, Segment [Member] | Phoenix [Member]
Schedule of Concentration Percentage of Different Customers	Phoenix Three Months Ended March 31, Six Months Ended March 31, 2018 2017 2018 2017 Customer A 21.1 % 20.0 % 18.7 % 20.5 % Customer B 15.9 ** 17.3 ** Customer C 11.0 14.2 ** ** Customer D ** 12.4 10.1 11.1 ** Less than 10% of Phoenix net revenue.
Inventory Purchases [Member] | Carpets [Member]
Schedule of Concentration Percentage of Different Customers	Carpets Three Months Ended March 31, Six Months Ended March 31, 2018 2017 2018 2017 Supplier A 23.5 % 28.0 % 22.9 % 27.5 % Supplier B 16.6 21.9 18.0 20.8 Supplier C 14.0 10.9 13.7 10.9 Supplier D ** 11.3 ** ** ** Less than 10% of Carpets inventory purchases.
Inventory Purchases [Member] | Phoenix [Member]
Schedule of Concentration Percentage of Different Customers	Phoenix Three Months Ended March 31, Six Months Ended March 31, 2018 2017 2018 2017 Supplier A 30.7 % 30.6 % 30.1 % 26.4 % Supplier B ** ** 10.8 **

Composition of Certain Financ21

Composition of Certain Financial Statement Captions (Tables)	6 Months Ended
	Mar. 31, 2018
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Summary of Accounts Receivable	The following table summarizes accounts receivable at the end of each reporting period ( in thousands March 31, September 30, 2018 2017 Accounts receivable $ 45,835 $ 47,216 Unbilled receivables 4,118 3,071 Accounts receivable 49,953 50,287 Less: Allowance for doubtful accounts (801 ) (830 ) Accounts receivable, net $ 49,152 $ 49,457
Summary of Inventories	The following table summarizes inventories at the end of each reporting period ( in thousands March 31, September 30, 2018 2017 Raw materials $ 3,745 $ 3,127 Semi-finished goods/work in process 2,414 4,064 Finished goods 2,782 2,378 Inventories 8,941 9,569 Less: Allowance for obsolete inventory (246 ) (193 ) Inventories, net $ 8,695 $ 9,376
Summary of Property and Equipment	The following table summarizes property and equipment at the end of each reporting period ( in thousands March 31, September 30, 2018 2017 Machinery and equipment $ 24,812 $ 22,753 Building and improvements 16,323 15,593 Software 15,199 12,276 Computer and office equipment 10,718 10,344 Land 9,267 9,167 Leasehold improvements 9,341 8,997 Furniture and fixtures 3,607 3,595 Vehicles 306 229 Construction in process 211 136 Property and equipment 89,784 83,090 Less: Accumulated depreciation and amortization (35,452 ) (28,755 ) Property and equipment, net $ 54,332 $ 54,335
Summary of Goodwill	The following table summarizes goodwill by reportable segment at the end of each reporting period ( in thousands March 31, September 30, 2018 2017 Faneuil $ 21,276 $ 21,276 Carpets 2,555 2,555 Phoenix 32,541 31,133 Goodwill $ 56,372 $ 54,964
Summary of Intangible Assets	The following table summarizes identified intangible assets at the end of each reporting period ( in thousands March 31, 2018 September 30, 2017 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Customer relationships $ 34,400 $ (8,888 ) $ 25,512 $ 34,400 $ (7,446 ) $ 26,954 Trade names 10,760 (1,358 ) 9,402 10,760 (1,143 ) 9,617 Supply agreements/contract backlog 10,358 (1,128 ) 9,230 5,658 (420 ) 5,238 Non-compete agreements 3,030 (2,201 ) 829 3,030 (1,858 ) 1,172 Internal software 580 (430 ) 150 580 (382 ) 198 Totals $ 59,128 $ (14,005 ) $ 45,123 $ 54,428 $ (11,249 ) $ 43,179
Summary of Expected Future Amortization Expense	The following table presents expected future amortization expense for the remainder in thousands Estimated Future Amortization Remainder of Fiscal 2018 $ 2,723 Fiscal 2019 5,099 Fiscal 2020 4,800 Fiscal 2021 4,485 Fiscal 2022 4,067 Thereafter 23,949 Total $ 45,123
Summary of Line of Credit, Current and Noncurrent Term Loan Payables	The following table summarizes ALJ’s line of credit, and current and noncurrent term loan payables at the end of each reporting period ( in thousands March 31, September 30, 2018 2017 Line of credit: Line of credit $ 4,500 $ 5,500 Less: deferred loan costs (82 ) (170 ) Line of credit, net of deferred loan costs $ 4,418 $ 5,330 Current portion of term loan: Current portion of term loan $ 9,187 $ 12,764 Less: deferred loan costs (936 ) (916 ) Current portion of term loan, net of deferred loan costs $ 8,251 $ 11,848 Term loan payable, less current portion: Term loan payable, less current portion $ 80,608 $ 78,254 Less: deferred loan costs (1,144 ) (1,501 ) Term loan payable, less current portion, net of deferred loan costs $ 79,464 $ 76,753
Summary of Accrued Expenses	The following table summarizes accrued expenses at the end of each reporting period ( in thousands March 31, September 30, 2018 2017 Accrued compensation and related taxes $ 7,905 $ 7,370 Legal and other 1,260 1,466 Rebates payable 1,062 2,014 Interest payable 817 651 Medical and benefit-related payables 454 431 Accrued board of director fees 390 370 Deferred rent 194 208 Sales tax payable 191 151 Accrued expenses $ 12,273 $ 12,661

(Loss) Earnings Per Share (Tabl

(Loss) Earnings Per Share (Tables)	6 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
Computation of Basic and Diluted (Loss) Earnings Per Common Share	ALJ computed basic and diluted (loss) earnings per common share for each period as follows ( in thousands, except per share amounts Three Months Ended March 31, Six Months Ended March 31, 2018 2017 2018 2017 Net (loss) income $ (340 ) $ 392 $ (5,658 ) $ 943 Weighted average shares of common stock outstanding - basic 37,911 34,575 37,742 34,575 Potentially dilutive effect of options to purchase common stock — 1,069 — 1,096 Weighted average shares of common stock outstanding – diluted 37,911 35,644 37,742 35,671 Basic (loss) earnings per share of common stock $ (0.01 ) $ 0.01 $ (0.15 ) $ 0.03 Diluted (loss) earnings per share of common stock $ (0.01 ) $ 0.01 $ (0.15 ) $ 0.03

Debt (Tables)

Debt (Tables)	6 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
Summary of Financing Agreement and Amendments	The Financing Agreement and three amendments are summarized below ( in thousands Description Use of Proceeds Origination Date Interest Rate * Quarterly Payments Balance at March 31, 2018 Term Loan: Financing Agreement Phoenix acquisition August 2015 7.99% to 8.63% $ 1,969 $ 74,798 First Amendment Color Optics acquisition July 2016 7.99% to 8.63% 187 8,093 Third Amendment Printing Components Business acquisition October 2017 7.99% to 8.63% 141 6,904 Totals $ 2,297 $ 89,795 Line of Credit: Cerberus/PNC Revolver Working capital August 2015 10.00% to 10.50% $ — $ — Second Amendment CMO Business acquisition May 2017 7.99% to 8.63% — 4,500 Totals $ — $ 4,500 * Range of annual interest rates accrued during the six months ended March 31, 2018.
Schedule of Estimated Future Minimum Payments under Debt	Cerberus Debt Estimated Future Minimum Payments Estimated future minimum payments are as follows ( in thousands Year Ending March 31, Future Minimum Payments 2019 $ 9,187 2020 9,187 2021* 75,921 Total $ 94,295 * The majority of this amount is the final balloon payment due at maturity, August 14, 2020.
Schedule of Future Minimum Lease Payments under Non-Cancelable Capital Leases	As of March 31, 2018, future minimum payments under non-cancelable capital leases with initial or remaining terms of one year or more are as follows ( in thousands Year Ending March 31, Estimated Future Payments 2019 $ 3,265 2020 2,514 2021 1,952 2022 536 2023 536 Thereafter 435 Total minimum required payments 9,238 Less: current portion of capital lease obligations (3,022 ) Less: imputed interest (603 ) Capital lease obligations, less current portion $ 5,613

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Mar. 31, 2018
Commitments And Contingencies Disclosure [Abstract]
Schedule of Future Minimum Rental Commitments under Noncancellable Leases	As of March 31, 2018, future minimum rental commitments under noncancellable leases were as follows ( in thousands Year Ending March 31, Future Minimum Lease Payments 2019 $ 5,035 2020 4,208 2021 3,051 2022 2,016 2023 1,452 Thereafter 8,845 Total $ 24,607

Equity (Tables)

Equity (Tables)	6 Months Ended
	Mar. 31, 2018
Equity [Abstract]
Summary of Total Stock-Based Compensation Expense Included in Statements of Operations	The following table sets forth the total stock-based compensation expense included in ALJ’s Statements of Operations ( in thousands Three Months Ended March 31, Six Months Ended March 31, 2018 2017 2018 2017 Stock options $ 167 $ 89 $ 358 $ 187 Common stock awards 103 85 205 170 Total stock-based compensation expense $ 270 $ 174 $ 563 $ 357

Reportable Segments and Geogr26

Reportable Segments and Geographic Information (Tables)	6 Months Ended
	Mar. 31, 2018
Segment Reporting [Abstract]
Summary of Segment Information	The following tables present ALJ’s segment information for the three and six months ended March 31, 2018 and 2017 ( in thousands Three Months Ended March 31, 2018 Faneuil Carpets Phoenix ALJ Total Net revenue $ 47,953 $ 18,691 $ 28,461 $ — $ 95,105 Segment adjusted EBITDA $ 2,915 $ (240 ) $ 5,459 $ (540 ) $ 7,594 Interest expense (2,793 ) Provision for income taxes 384 Depreciation and amortization (4,850 ) Stock-based compensation (270 ) Restructuring expenses (430 ) Gain on sales of assets 25 Net loss $ (340 ) Six Months Ended March 31, 2018 Faneuil Carpets Phoenix ALJ Total Net revenue $ 99,427 $ 35,341 $ 55,291 $ — $ 190,059 Segment adjusted EBITDA $ 6,625 $ (966 ) $ 9,619 $ (1,096 ) $ 14,182 Interest expense (5,453 ) Provision for income taxes (2,987 ) Depreciation and amortization (9,683 ) Stock-based compensation (563 ) Restructuring expenses (1,263 ) Acquisition-related expenses (123 ) Gain on sales of assets 232 Net loss $ (5,658 ) Three Months Ended March 31, 2017 Faneuil Carpets Phoenix ALJ Total Net revenue $ 36,722 $ 17,905 $ 24,669 $ — $ 79,296 Segment adjusted EBITDA $ 2,929 $ 261 $ 4,863 $ (390 ) $ 7,663 Interest expense (2,284 ) Provision for income taxes (695 ) Depreciation and amortization (4,053 ) Stock-based compensation (174 ) Restructuring expenses (61 ) Loss on sales of assets (4 ) Net income $ 392 Six Months Ended March 31, 2017 Faneuil Carpets Phoenix ALJ Total Net revenue $ 74,773 $ 33,449 $ 48,691 $ — $ 156,913 Segment adjusted EBITDA $ 6,690 $ 215 $ 9,211 $ (1,224 ) $ 14,892 Interest expense (4,718 ) Provision for income taxes (755 ) Depreciation and amortization (8,014 ) Stock-based compensation (357 ) Restructuring expenses (93 ) Loss on sales of assets (12 ) Net income $ 943

Acquisitions - Additional Infor

Acquisitions - Additional Information (Detail)	Oct. 02, 2017USD ($)Investor	May 26, 2017	Mar. 31, 2018USD ($)	Mar. 31, 2017USD ($)	Mar. 31, 2018USD ($)	Mar. 31, 2017USD ($)
Business Acquisition [Line Items]
Payments to acquisition of business assets and liabilities					$ 9,000,000
Proceeds from stock option exercise					278,000
Net revenue			$ 95,105,000	$ 79,296,000	190,059,000	$ 156,913,000
Purchase-related legal and accounting fees					123,000
LSC and Moore-Langen [Member] | Phoenix [Member]
Business Acquisition [Line Items]
Payments to acquisition of business assets and liabilities	$ 10,000,000
Printing Components Business [Member]
Business Acquisition [Line Items]
Maximum measurement period for estimates of assets acquired and liabilities assumed	1 year
Net revenue			3,600,000		8,100,000
Printing Components Business [Member] | Selling, General and Administrative Expense [Member]
Business Acquisition [Line Items]
Purchase-related legal and accounting fees			0		123,000
Printing Components Business [Member] | Executive Chairman [Member]
Business Acquisition [Line Items]
Proceeds from stock option exercise	$ 1,000,000
Printing Components Business [Member] | Common Stock [Member] | Private Offering [Member]
Business Acquisition [Line Items]
Business acquisition common stock sold, value	$ 1,500,000
Business acquisition common stock sold to number of investors | Investor	2
Printing Components Business [Member] | Cerberus Term Loan [Member]
Business Acquisition [Line Items]
Proceeds from debt	$ 7,500,000
Printing Components Business [Member] | Phoenix [Member]
Business Acquisition [Line Items]
Business acquisition amount withheld from consideration paid	$ 1,000,000
Business acquisition withheld amount payable date	Oct. 2, 2018
CMO Business [Member]
Business Acquisition [Line Items]
Net revenue			$ 8,400,000		$ 17,000,000
Business acquisition, date of acquisition		May 26, 2017

Acquisitions - Summary of Estim

Acquisitions - Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed on Business Purchase Date and Purchase Price Details (Detail) - USD ($) $ in Thousands	Oct. 02, 2017	May 26, 2017	Mar. 31, 2018	Sep. 30, 2017
Identified intangible assets:
Goodwill			$ 56,372	$ 54,964
Printing Components Business [Member]
Balance Sheet Caption
Total current assets	$ 1,767
Fixed assets	2,273
Identified intangible assets:
Goodwill	1,408
Total assets	10,148
Total current liabilities	(148)
Purchase price	10,000
Break Out of Components of Purchase Price Consideration
Term loan	7,500
Common stock issued	1,500
Cash received from exercise of stock option	1,000
Purchase price	10,000
Printing Components Business [Member] | Supply Agreements/Contract Backlog [Member]
Identified intangible assets:
Identified intangible assets	$ 4,700
CMO Business [Member]
Balance Sheet Caption
Total current assets		$ 3,947
Fixed assets		553
Identified intangible assets:
Goodwill		1,547
Total assets		15,505
Total current liabilities		(2,760)
Purchase price		12,745
Break Out of Components of Purchase Price Consideration
Term loan		5,500
Common stock issued		4,708
Cash		2,537
Purchase price		12,745
CMO Business [Member] | Supply Agreements/Contract Backlog [Member]
Identified intangible assets:
Identified intangible assets		5,418
CMO Business [Member] | Customer Relationships [Member]
Identified intangible assets:
Identified intangible assets		3,790
CMO Business [Member] | Non-compete Agreements [Member]
Identified intangible assets:
Identified intangible assets		$ 250

Concentration Risks - Additiona

Concentration Risks - Additional Information (Detail) $ in Millions	6 Months Ended
	Mar. 31, 2018USD ($)CustomerSegment
Faneuil [Member]
Concentration Risk [Line Items]
Accounts receivable	$ 9.3
Carpets [Member]
Concentration Risk [Line Items]
Accounts receivable	3.5
Phoenix [Member]
Concentration Risk [Line Items]
Accounts receivable	$ 4.7
Customer Concentration Risk [Member] | Sales Revenue, Net [Member]
Concentration Risk [Line Items]
Number of customers that represent more than 10% of consolidated net revenue | Customer	0
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Minimum [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	10.00%
Supplier Concentration Risk [Member]
Concentration Risk [Line Items]
Number of segments representing more than 10% supplier contribution | Segment	2
Supplier Concentration Risk [Member] | Sales Revenue, Net [Member] | Maximum [Member] | Carpets [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	10.00%
Supplier Concentration Risk [Member] | Inventory Purchases [Member] | Minimum [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	10.00%

Concentration Risks - Major Cus

Concentration Risks - Major Customers and Accounts Receivable - Schedule of Concentration Percentage of Different Customers (Detail) - Sales Revenue, Segment [Member] - Customer Concentration Risk [Member]	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Customer A [Member] | Faneuil [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	14.80%	19.30%	14.50%	18.80%
Customer A [Member] | Carpets [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	29.90%	26.30%	28.40%	27.30%
Customer A [Member] | Phoenix [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	21.10%	20.00%	18.70%	20.50%
Customer B [Member] | Faneuil [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	12.30%	16.40%	13.30%	16.10%
Customer B [Member] | Carpets [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	21.20%	33.50%	23.00%	31.00%
Customer B [Member] | Phoenix [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	15.90%		17.30%
Customer C [Member] | Faneuil [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	10.30%
Customer C [Member] | Carpets [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	17.30%	18.60%	20.90%	17.40%
Customer C [Member] | Phoenix [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	11.00%	14.20%
Customer D [Member] | Faneuil [Member]
Concentration Risk [Line Items]
Concentration risk, percentage		12.80%		12.00%
Customer D [Member] | Phoenix [Member]
Concentration Risk [Line Items]
Concentration risk, percentage		12.40%	10.10%	11.10%

Concentration Risks - Major C31

Concentration Risks - Major Customers and Accounts Receivable - Schedule of Concentration Percentage of Different Customers (Parenthetical) (Detail) - Maximum [Member] - Sales Revenue, Segment [Member] - Customer Concentration Risk [Member]	6 Months Ended
	Mar. 31, 2018
Faneuil [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	10.00%
Phoenix [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	10.00%

Concentration Risks - Supplier

Concentration Risks - Supplier Risk - Schedule of Concentration Percentage of Different Customers (Detail) - Supplier Concentration Risk [Member] - Inventory Purchases [Member]	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Supplier A [Member] | Carpets [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	23.50%	28.00%	22.90%	27.50%
Supplier A [Member] | Phoenix [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	30.70%	30.60%	30.10%	26.40%
Supplier B [Member] | Carpets [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	16.60%	21.90%	18.00%	20.80%
Supplier B [Member] | Phoenix [Member]
Concentration Risk [Line Items]
Concentration risk, percentage			10.80%
Supplier C [Member] | Carpets [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	14.00%	10.90%	13.70%	10.90%
Supplier D [Member] | Carpets [Member]
Concentration Risk [Line Items]
Concentration risk, percentage		11.30%

Concentration Risks - Supplie33

Concentration Risks - Supplier Risk - Schedule of Concentration Percentage of Different Customers (Parenthetical) (Detail)	6 Months Ended
	Mar. 31, 2018
Maximum [Member] | Sales Revenue, Net [Member] | Supplier Concentration Risk [Member] | Carpets [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	10.00%

Composition of Certain Financ34

Composition of Certain Financial Statement Captions - Summary of Accounts Receivable (Detail) - USD ($) $ in Thousands	Mar. 31, 2018	Sep. 30, 2017
Accounts Receivable Net Current [Abstract]
Accounts receivable	$ 45,835	$ 47,216
Unbilled receivables	4,118	3,071
Accounts receivable	49,953	50,287
Less: Allowance for doubtful accounts	(801)	(830)
Accounts receivable, net	$ 49,152	$ 49,457

Composition of Certain Financ35

Composition of Certain Financial Statement Captions - Summary of Inventories (Detail) - USD ($) $ in Thousands	Mar. 31, 2018	Sep. 30, 2017
Inventory Disclosure [Abstract]
Raw materials	$ 3,745	$ 3,127
Semi-finished goods/work in process	2,414	4,064
Finished goods	2,782	2,378
Inventories	8,941	9,569
Less: Allowance for obsolete inventory	(246)	(193)
Inventories, net	$ 8,695	$ 9,376

Composition of Certain Financ36

Composition of Certain Financial Statement Captions - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands	Mar. 31, 2018	Sep. 30, 2017
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 89,784	$ 83,090
Less: Accumulated depreciation and amortization	(35,452)	(28,755)
Property and equipment, net	54,332	54,335
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	24,812	22,753
Building and Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	16,323	15,593
Software [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	15,199	12,276
Computer and Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	10,718	10,344
Land [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	9,267	9,167
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	9,341	8,997
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	3,607	3,595
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	306	229
Construction in Process [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 211	$ 136

Composition of Certain Financ37

Composition of Certain Financial Statement Captions - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Condensed Financial Statements, Captions [Line Items]
Depreciation and amortization expense including capital leased assets	$ 3,475,000	$ 3,044,000	$ 6,927,000	$ 5,997,000
Intangible asset amortization expense	1,375,000	$ 1,009,000	2,756,000	$ 2,017,000
Faneuil [Member] | Workers' Compensation Claims [Member] | Maximum [Member]
Condensed Financial Statements, Captions [Line Items]
Self-insured amount	500,000		500,000
Faneuil [Member] | Health Insurance Claims [Member] | Maximum [Member]
Condensed Financial Statements, Captions [Line Items]
Self-insured amount	$ 150,000		$ 150,000

Composition of Certain Financ38

Composition of Certain Financial Statement Captions - Summary of Goodwill (Detail) - USD ($) $ in Thousands	Mar. 31, 2018	Sep. 30, 2017
Goodwill [Line Items]
Goodwill	$ 56,372	$ 54,964
Faneuil [Member]
Goodwill [Line Items]
Goodwill	21,276	21,276
Carpets [Member]
Goodwill [Line Items]
Goodwill	2,555	2,555
Phoenix [Member]
Goodwill [Line Items]
Goodwill	$ 32,541	$ 31,133

Composition of Certain Financ39

Composition of Certain Financial Statement Captions - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands	Mar. 31, 2018	Sep. 30, 2017
Finite-Lived Intangible Assets [Line Items]
Gross	$ 59,128	$ 54,428
Accumulated Amortization	(14,005)	(11,249)
Net	45,123	43,179
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Gross	34,400	34,400
Accumulated Amortization	(8,888)	(7,446)
Net	25,512	26,954
Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Gross	10,760	10,760
Accumulated Amortization	(1,358)	(1,143)
Net	9,402	9,617
Supply Agreements/Contract Backlog [Member]
Finite-Lived Intangible Assets [Line Items]
Gross	10,358	5,658
Accumulated Amortization	(1,128)	(420)
Net	9,230	5,238
Non-compete Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Gross	3,030	3,030
Accumulated Amortization	(2,201)	(1,858)
Net	829	1,172
Internal Software [Member]
Finite-Lived Intangible Assets [Line Items]
Gross	580	580
Accumulated Amortization	(430)	(382)
Net	$ 150	$ 198

Composition of Certain Financ40

Composition of Certain Financial Statement Captions - Summary of Expected Future Amortization Expense (Detail) - USD ($) $ in Thousands	Mar. 31, 2018	Sep. 30, 2017
Finite Lived Intangible Assets Future Amortization Expense [Abstract]
Remainder of Fiscal 2018	$ 2,723
Fiscal 2,019	5,099
Fiscal 2,020	4,800
Fiscal 2,021	4,485
Fiscal 2,022	4,067
Thereafter	23,949
Net	$ 45,123	$ 43,179

Composition of Certain Financ41

Composition of Certain Financial Statement Captions - Summary of Line of Credit, Current and Noncurrent Term Loan Payables (Detail) - USD ($) $ in Thousands	Mar. 31, 2018	Sep. 30, 2017
Line of credit:
Line of credit	$ 4,500	$ 5,500
Less: deferred loan costs	(82)	(170)
Line of credit, net of deferred loan costs	4,418	5,330
Current portion of term loan:
Current portion of term loan	9,187	12,764
Less: deferred loan costs	(936)	(916)
Current portion of term loan, net of deferred loan costs	8,251	11,848
Term loan payable, less current portion:
Term loan payable, less current portion	80,608	78,254
Less: deferred loan costs	(1,144)	(1,501)
Term loan payable, less current portion, net of deferred loan costs	$ 79,464	$ 76,753

Composition of Certain Financ42

Composition of Certain Financial Statement Captions - Summary of Accrued Expenses (Detail) - USD ($) $ in Thousands	Mar. 31, 2018	Sep. 30, 2017
Accrued Liabilities Current [Abstract]
Accrued compensation and related taxes	$ 7,905	$ 7,370
Legal and other	1,260	1,466
Rebates payable	1,062	2,014
Interest payable	817	651
Medical and benefit-related payables	454	431
Accrued board of director fees	390	370
Deferred rent	194	208
Sales tax payable	191	151
Accrued expenses	$ 12,273	$ 12,661

(Loss) Earnings Per Share - Com

(Loss) Earnings Per Share - Computation of Basic and Diluted (Loss) Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Earnings Per Share [Abstract]
Net (loss) income	$ (340)	$ 392	$ (5,658)	$ 943
Weighted average shares of common stock outstanding - basic	37,911	34,575	37,742	34,575
Potentially dilutive effect of options to purchase common stock		1,069		1,096
Weighted average shares of common stock outstanding - diluted	37,911	35,644	37,742	35,671
Basic (loss) earnings per share of common stock	$ (0.01)	$ 0.01	$ (0.15)	$ 0.03
Diluted (loss) earnings per share of common stock	$ (0.01)	$ 0.01	$ (0.15)	$ 0.03

(Loss) Earnings Per Share - Add

(Loss) Earnings Per Share - Additional Information (Detail) - shares	3 Months Ended	6 Months Ended
	Mar. 31, 2018	Mar. 31, 2018
Stock Options to Purchase Common Stock [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Stock options to purchase shares of common stock excluded from computation of diluted earnings per common share	1,614,000	1,614,000

Debt - Additional Information (

Debt - Additional Information (Detail) - USD ($)	Aug. 13, 2018	Dec. 31, 2017	Mar. 31, 2018	Aug. 31, 2015
Debt Instrument [Line Items]
Debt instrument maturity date			Aug. 14, 2020
Cerberus Debt [Member]
Debt Instrument [Line Items]
Unused borrowing capacity			$ 19,100,000
Term Loan [Member] | Cerberus Term Loan [Member]
Debt Instrument [Line Items]
Debt instrument face amount				$ 105,000,000
Annual principal payments as percentage of excess cash flow		75.00%
Excess cash flow payment		$ 4,100,000
Debt instrument maturity date		Aug. 14, 2020
Maximum payments against loan with no penalty		$ 7,000,000
Debt instrument legal and other fees			$ 300,000
Term Loan [Member] | Cerberus Term Loan [Member] | Scenario, Forecast [Member]
Debt Instrument [Line Items]
Prepayment penalty percentage	1.00%
Revolving Credit Facility [Member] | Cerberus/PNC Revolver [Member]
Debt Instrument [Line Items]
Line of credit facility maximum borrowing capacity				$ 30,000,000

Debt - Summary of Financing Agr

Debt - Summary of Financing Agreement and Amendments (Detail) $ in Thousands	6 Months Ended
	Mar. 31, 2018USD ($)
Line of Credit [Member]
Debt Instrument [Line Items]
Balance	$ 4,500
Line of Credit [Member] | Cerberus/PNC Revolver [Member]
Debt Instrument [Line Items]
Use of Proceeds	Working capital
Origination Date	2015-08
Minimum [Member] | Line of Credit [Member] | Cerberus/PNC Revolver [Member]
Debt Instrument [Line Items]
Interest Rate	10.00%
Maximum [Member] | Line of Credit [Member] | Cerberus/PNC Revolver [Member]
Debt Instrument [Line Items]
Interest Rate	10.50%
Second Amendment [Member] | CMO Business [Member] | Line of Credit [Member]
Debt Instrument [Line Items]
Use of Proceeds	CMO Business acquisition
Origination Date	2017-05
Balance	$ 4,500
Second Amendment [Member] | Minimum [Member] | CMO Business [Member] | Line of Credit [Member]
Debt Instrument [Line Items]
Interest Rate	7.99%
Second Amendment [Member] | Maximum [Member] | CMO Business [Member] | Line of Credit [Member]
Debt Instrument [Line Items]
Interest Rate	8.63%
Term Loan [Member]
Debt Instrument [Line Items]
Quarterly Payments	$ 2,297
Balance	$ 89,795
Term Loan [Member] | Financing Agreement [Member] | Phoenix Acquisition [Member]
Debt Instrument [Line Items]
Origination Date	2015-08
Quarterly Payments	$ 1,969
Balance	$ 74,798
Term Loan [Member] | Financing Agreement [Member] | Minimum [Member] | Phoenix Acquisition [Member]
Debt Instrument [Line Items]
Interest Rate	7.99%
Term Loan [Member] | Financing Agreement [Member] | Maximum [Member] | Phoenix Acquisition [Member]
Debt Instrument [Line Items]
Interest Rate	8.63%
Term Loan [Member] | First Amendment [Member] | Color Optics Acquisition [Member]
Debt Instrument [Line Items]
Origination Date	2016-07
Quarterly Payments	$ 187
Balance	$ 8,093
Term Loan [Member] | First Amendment [Member] | Minimum [Member] | Color Optics Acquisition [Member]
Debt Instrument [Line Items]
Interest Rate	7.99%
Term Loan [Member] | First Amendment [Member] | Maximum [Member] | Color Optics Acquisition [Member]
Debt Instrument [Line Items]
Interest Rate	8.63%
Term Loan [Member] | Third Amendment [Member] | Printing Components Business [Member]
Debt Instrument [Line Items]
Origination Date	2017-10
Quarterly Payments	$ 141
Balance	$ 6,904
Term Loan [Member] | Third Amendment [Member] | Minimum [Member] | Printing Components Business [Member]
Debt Instrument [Line Items]
Interest Rate	7.99%
Term Loan [Member] | Third Amendment [Member] | Maximum [Member] | Printing Components Business [Member]
Debt Instrument [Line Items]
Interest Rate	8.63%

Debt - Schedule of Estimated Fu

Debt - Schedule of Estimated Future Minimum Payments under Debt (Detail) - Cerberus Debt [Member] $ in Thousands	Mar. 31, 2018USD ($)
Debt Instrument [Line Items]
2,019	$ 9,187
2,020	9,187
2021*	75,921
Total estimated future minimum payments	$ 94,295

Debt - Schedule of Estimated 48

Debt - Schedule of Estimated Future Minimum Payments under Debt (Parenthetical) (Detail)	6 Months Ended
	Mar. 31, 2018
Capital Leases Future Minimum Payments Due Rolling Maturity [Abstract]
Debt instrument maturity date	Aug. 14, 2020

Debt - Schedule of Future Minim

Debt - Schedule of Future Minimum Lease Payment under Non-Cancelable Capital Leases (Detail) - USD ($)	Mar. 31, 2018	Sep. 30, 2017
Capital Leases Future Minimum Payments Due Rolling Maturity [Abstract]
2,019	$ 3,265,000
2,020	2,514,000
2,021	1,952,000
2,022	536,000
2,023	536,000
Thereafter	435,000
Total minimum required payments	9,238,000
Less: current portion of capital lease obligations	(3,022,000)	$ (2,571,000)
Less: imputed interest	(603,000)
Capital lease obligations, less current portion	$ 5,613,000	$ 4,679,000

Commitments and Contingencies -

Commitments and Contingencies - Schedule of Future Minimum Rental Commitments under Noncancellable Leases (Detail) $ in Thousands	Mar. 31, 2018USD ($)
Operating Leases Future Minimum Payments Due Rolling Maturity [Abstract]
2,019	$ 5,035
2,020	4,208
2,021	3,051
2,022	2,016
2,023	1,452
Thereafter	8,845
Total future minimum lease payments	$ 24,607

Commitments and Contingencies51

Commitments and Contingencies - Additional Information (Detail) - USD ($)	Jun. 06, 2017	Oct. 14, 2016	Mar. 31, 2018	Sep. 22, 2016	Sep. 21, 2016
Loss Contingencies [Line Items]
Range of possible loss			$ 1,600,000
Minimum [Member]
Loss Contingencies [Line Items]
Range of possible loss					$ 1,600,000
Maximum [Member]
Loss Contingencies [Line Items]
Range of possible loss					$ 2,400,000
Faneuil [Member]
Loss Contingencies [Line Items]
Recovery value on subcontract				$ 5,100,000
Recovery of subcontract description basis			Breach of contract, breach of the implied covenant of good faith and fair dealing, and unjust enrichment.
Litigation settlement, amount of damages awarded	$ 300,000
Litigation settlement, amount awarded for plaintiff's attorney fees	$ 700,000
3M Company [Member]
Loss Contingencies [Line Items]
Recovery value on subcontract		$ 10,000,000
Recovery of subcontract description basis			Breach of contract/indemnification, breach of the implied covenant of good faith and fair dealing and unjust enrichment.
Damages payable		3,200,000
Additional damages incurred		$ 10,000,000
Surety Bonds [Member]
Loss Contingencies [Line Items]
Estimated maximum guarantee cash payments			$ 29,100,000
Employment Agreements [Member]
Loss Contingencies [Line Items]
Total termination payments related to base salary			$ 1,300,000

Equity - Additional Information

Equity - Additional Information (Detail)	Oct. 02, 2017Stockholder$ / sharesshares	Mar. 31, 2018USD ($)	Mar. 31, 2017USD ($)	Mar. 31, 2018USD ($)$ / sharesshares	Mar. 31, 2017USD ($)shares
Class of Stock [Line Items]
Total unrecognized compensation cost related to unvested stock options		$ 800,000		$ 800,000
Weighted-average recognition period of unrecognized compensation cost related to unvested stock options				1 year 10 months 24 days
Stock option awards, granted | shares				10,000	0
Total estimated fair value of stock options, granted				$ 15,000
Weighted average expected option life				6 years
Weighted average expected volatility rate				48.40%
Expected dividend yield				0.00%
Weighted average risk free interest rate				2.10%
Total intrinsic value of options vested or expected to vest outstanding		100,000		$ 100,000
Stock-based compensation expense		270,000	$ 174,000	563,000	$ 357,000
Common Stock Awards [Member]
Class of Stock [Line Items]
Stock-based compensation expense		$ 103,000	$ 85,000	$ 205,000	$ 170,000
Common Stock [Member]
Class of Stock [Line Items]
Shares issued upon exercise of employee stock options | shares				300,000
Weighted-average exercise price of employee stock options | $ / shares				$ 0.93
Common Stock [Member] | Board of Directors [Member]
Class of Stock [Line Items]
Stock issued as compensation | shares				102,102
Moore-Langen [Member] | Common Stock [Member]
Class of Stock [Line Items]
Business acquisition common stock issued, shares | shares	477,706
Business acquisition common stock issued, per shares | $ / shares	$ 3.14
Business acquisition common stock sold to number of shareholders | Stockholder	2

Equity - Summary of Total Stock

Equity - Summary of Total Stock-Based Compensation Expense Included in Statements of Operations (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 270,000	$ 174,000	$ 563,000	$ 357,000
Stock Options [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	167,000	89,000	358,000	187,000
Common Stock Awards [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 103,000	$ 85,000	$ 205,000	$ 170,000

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	Sep. 27, 2017	Dec. 31, 2023	Sep. 30, 2018	Dec. 31, 2017	Mar. 31, 2018	Sep. 30, 2018	Jun. 30, 2018
Income Taxes Disclosure [Line Items]
Federal statutory income tax rate					35.00%
Income tax rate reconciliation deductions interest expense					30.00%
Percentage of bonus depreciation for eligible property placed in service allowed for immediate deduction	100.00%
Property eligibility for bonus depreciation with longer production period					Jan. 1, 2023
Change in tax rate income tax expense benefit				$ 4.1
Scenario, Forecast [Member]
Income Taxes Disclosure [Line Items]
Federal statutory income tax rate			21.00%			21.00%	28.10%
Percentage of eligible property placed in service allowed for immediate deduction		100.00%

Related-Party Transactions - Ad

Related-Party Transactions - Additional Information (Detail) - Harland Clarke Holdings Corp. ("Harland Clarke") [Member]	3 Months Ended		6 Months Ended
	Mar. 31, 2018USD ($)	Mar. 31, 2017USD ($)	Mar. 31, 2018USD ($)Contract	Mar. 31, 2017USD ($)	Sep. 30, 2017USD ($)
Related Party Transaction [Line Items]
Number of contract | Contract			2
Number of call center services contract | Contract			1
Managed print services contract maturity			Sep. 30, 2017
Revenue recognized	$ 81,000	$ 272,000	$ 175,000	$ 599,000
Cost of revenue	83,000	$ 256,000	177,000	$ 564,000
Accounts receivable	$ 55,000		$ 55,000		$ 106,000
Minimum [Member]
Related Party Transaction [Line Items]
Ownership percentage	5.00%		5.00%

Reportable Segments and Geogr56

Reportable Segments and Geographic Information - Additional Information (Detail)	6 Months Ended
	Mar. 31, 2018Segment
Segment Reporting [Abstract]
Number of reportable segments	3

Reportable Segments and Geogr57

Reportable Segments and Geographic Information - Summary of Segment Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Segment Reporting Information [Line Items]
Net revenue	$ 95,105	$ 79,296	$ 190,059	$ 156,913
Segment adjusted EBITDA	7,594	7,663	14,182	14,892
Interest expense	(2,793)	(2,284)	(5,453)	(4,718)
Benefit (provision) for income taxes	384	(695)	(2,987)	(755)
Depreciation and amortization	(4,850)	(4,053)	(9,683)	(8,014)
Stock-based compensation	(270)	(174)	(563)	(357)
Restructuring expenses	(430)	(61)	(1,263)	(93)
Acquisition-related expenses			(123)
Gain (loss) on sales of assets	25	(4)	232	(12)
Net Income (loss)	(340)	392	(5,658)	943
Operating Segments [Member] | Faneuil [Member]
Segment Reporting Information [Line Items]
Net revenue	47,953	36,722	99,427	74,773
Segment adjusted EBITDA	2,915	2,929	6,625	6,690
Operating Segments [Member] | Carpets [Member]
Segment Reporting Information [Line Items]
Net revenue	18,691	17,905	35,341	33,449
Segment adjusted EBITDA	(240)	261	(966)	215
Operating Segments [Member] | Phoenix [Member]
Segment Reporting Information [Line Items]
Net revenue	28,461	24,669	55,291	48,691
Segment adjusted EBITDA	5,459	4,863	9,619	9,211
ALJ [Member]
Segment Reporting Information [Line Items]
Segment adjusted EBITDA	$ (540)	$ (390)	$ (1,096)	$ (1,224)