Alj Regional (ALJJ) 10-Q 13 May 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Mar. 31, 2019	Apr. 30, 2019
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Trading Symbol	ALJJ
Entity Registrant Name	ALJ REGIONAL HOLDINGS INC
Entity Central Index Key	0001438731
Current Fiscal Year End Date	--09-30
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding		38,026,435

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2019	Sep. 30, 2018
Current assets:
Cash and cash equivalents	$ 7,541	$ 2,000
Accounts receivable, net of allowance for doubtful accounts of $131 ($208 at September 30, 2018)	38,393	46,383
Inventories, net	7,383	7,656
Prepaid expenses and other current assets	5,548	5,504
Assets held for sale		222
Total current assets	58,865	61,765
Property and equipment, net	72,540	60,162
Goodwill	56,372	56,372
Intangible assets, net	39,760	42,400
Collateral deposits, less current portion	695	695
Deferred tax asset, net	7,643	7,639
Other assets	1,828	2,435
Total assets	237,703	231,468
Current liabilities:
Accounts payable	10,851	12,692
Accrued expenses	16,607	14,371
Income taxes payable	72	204
Deferred revenue and customer deposits	2,096	3,179
Current portion of term loans, net of deferred loan costs	9,063	8,595
Current portion of capital lease obligations	2,510	2,909
Current portion of workers’ compensation reserve	930	1,000
Other current liabilities	7	1,003
Total current liabilities	42,136	43,953
Line of credit, net of deferred loan costs	10,443	8,594
Term loans, less current portion, net of deferred loan costs	78,187	74,795
Deferred revenue, less current portion	856	1,374
Workers’ compensation reserve, less current portion	1,290	1,508
Capital lease obligations, less current portion	3,243	4,427
Other non-current liabilities	8,866	5,289
Total liabilities	145,021	139,940
Commitments and contingencies (Note 8)
Stockholders’ equity:
Common stock, $0.01 par value; authorized – 100,000 shares; 38,026 and 38,111 shares issued and outstanding at March 31, 2019 and September 30, 2018, respectively	380	381
Additional paid-in capital	279,596	279,575
Accumulated deficit	(187,294)	(188,428)
Total stockholders’ equity	92,682	91,528
Total liabilities and stockholders’ equity	$ 237,703	$ 231,468

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2019	Sep. 30, 2018
Statement Of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 131	$ 208
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	38,026,000	38,111,000
Common stock, shares outstanding	38,026,000	38,111,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Income Statement [Abstract]
Net revenue	$ 87,996	$ 95,105	$ 181,780	$ 190,059
Costs and expenses:
Cost of revenue	67,739	74,239	140,566	149,149
Selling, general and administrative expense	17,007	18,822	34,473	38,360
Disposal of assets and other gain		(25)	(223)	(232)
Total operating expenses	84,746	93,036	174,816	187,277
Operating income	3,250	2,069	6,964	2,782
Other expense:
Interest expense, net	(2,625)	(2,793)	(5,340)	(5,453)
Total other expense	(2,625)	(2,793)	(5,340)	(5,453)
Income (loss) before income taxes	625	(724)	1,624	(2,671)
(Provision) benefit for income taxes	(202)	384	(490)	(2,987)
Net income (loss)	$ 423	$ (340)	$ 1,134	$ (5,658)
Basic earnings (loss) per share of common stock	$ 0.01	$ (0.01)	$ 0.03	$ (0.15)
Diluted earnings (loss) per share of common stock	$ 0.01	$ (0.01)	$ 0.03	$ (0.15)
Weighted average shares of common stock outstanding:
Basic	38,026	37,911	38,037	37,742
Diluted	38,076	37,911	38,087	37,742

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Operating activities
Net income (loss)	$ 1,134	$ (5,658)
Adjustments to reconcile net income (loss) to cash provided by operating activities:
Depreciation and amortization - cost of revenue	2,224	2,794
Depreciation and amortization - selling, general and administrative expense	7,059	6,889
Stock-based compensation expense	371	563
Provision for bad debts and obsolete inventory	77	305
Deferred income taxes	(4)	2,774
Disposal of assets and other gain	(223)	(232)
Amortization of deferred loan costs	398	691
Changes in operating assets and liabilities:
Accounts receivable, net	7,998	80
Inventories, net	188	2,107
Prepaid expenses, collateral deposits, and other current assets	(44)	762
Other assets	607	1,057
Accounts payable	(1,841)	1,038
Accrued expenses	722	(403)
Income tax payable	(132)	(195)
Deferred revenue and customer deposits	(1,601)	(2,183)
Other current liabilities	(66)	54
Other liabilities	(787)	(317)
Cash provided by operating activities	16,080	10,126
Investing activities
Acquisitions, net of cash acquired	(1,000)	(9,000)
Proceeds from sales of assets	308	383
Capital expenditures	(9,515)	(2,067)
Cash used for investing activities	(10,207)	(10,684)
Financing activities
Net proceeds (payments) on line of credit	1,761	(1,000)
Payments on term loan	(5,108)	(8,723)
Proceeds from term loan	5,000	7,500
Proceeds from issuance of common stock		1,500
Proceeds from stock option exercise		278
Debt and common stock issuance costs	(402)	(332)
Payments on capital leases	(1,583)	(1,348)
Cash used for financing activities	(332)	(2,125)
Change in cash and cash equivalents	5,541	(2,683)
Cash and cash equivalents at beginning of period	2,000	5,630
Cash and cash equivalents at end of period	7,541	2,947
Cash paid during the period for:
Taxes	634	714
Interest	4,877	4,956
Non-cash investing and financing activities:
Capital equipment purchases financed with capital leases		$ 2,734
Capital equipment purchases financed with term loan	4,060
Construction in process funded by landlord tenant improvement allowance	4,146
Construction in process not yet paid for	$ 1,311

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]
Balance, beginning of period at Sep. 30, 2017		$ 371	$ 276,478	$ (181,096)
Common stock issued, net of issuance costs		8	2,045
Stock-based compensation expense - options			358
Net income (loss)	$ (5,658)			(5,658)
Balance, end of period at Mar. 31, 2018	92,506	379	278,881	(186,754)
Balance, beginning of period at Dec. 31, 2017		379	278,714	(186,414)
Stock-based compensation expense - options			167
Net income (loss)	(340)			(340)
Balance, end of period at Mar. 31, 2018	92,506	379	278,881	(186,754)
Balance, beginning of period at Sep. 30, 2018	91,528	381	279,575	(188,428)
Stock-based compensation expense - options			168
Common stock retired		(1)	(147)
Net income (loss)	1,134			1,134
Balance, end of period at Mar. 31, 2019	92,682	380	279,596	(187,294)
Balance, beginning of period at Dec. 31, 2018		380	279,512	(187,717)
Stock-based compensation expense - options			84
Net income (loss)	423			423
Balance, end of period at Mar. 31, 2019	$ 92,682	$ 380	$ 279,596	$ (187,294)

Organization and Basis of Prese

Organization and Basis of Presentation	6 Months Ended
	Mar. 31, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]
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, 2019 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, 2018 and 2017 contained in its Annual Report on Form 10-K, filed with the SEC on December 17, 2018. 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, 2019, 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, 2018 and 2017 contained in its Annual Report on Form 10-K, filed with the SEC on December 17, 2018. There were no material changes to ALJ’s significant accounting policies during the six months ended March 31, 2019.

Recent Accounting Standards

Recent Accounting Standards	6 Months Ended
	Mar. 31, 2019
Accounting Changes And Error Corrections [Abstract]
Recent Accounting Standards	2. RECENT ACCOUNTING STANDARDS Accounting Standards Not Yet Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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. 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. In July 2017, ALJ formed a revenue recognition project team (“Revenue Team”), which included an outside revenue recognition consultant. The Revenue Team completed a revenue recognition adoption roadmap that includes three phases: – Phase I – Phase II – Phase III Because of the nature of the work that remains, ALJ is unable to reasonably estimate the impact of adoption on its consolidated financial statements. However, ALJ anticipates the adoption of ASU 2014-09 will expand its revenue-related disclosures. ALJ’s evaluation of the financial impact and related disclosure of the new standard will likely extend over the next 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. 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. In June 2018, the FASB issued ASU 2018-07, “ Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting This amendment expands the scope of the FASB’s Topic 718, Compensation—Stock Compensation (which currently only includes share-based payments to employees) to include share-based payments issued to nonemployees for goods or services. Consequently, the accounting for share-based payments to nonemployees and employees will be substantially aligned. ALJ does not anticipate the adoption of ASU 2018-07 to significantly impact its consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, “ Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract,

Acquisitions

Acquisitions	6 Months Ended
	Mar. 31, 2019
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, of which $1.0 million was withheld from the consideration paid at closing and paid in October 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. See 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 (note 7) $ 7,500 Common stock issued (note 9) 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. There were no adjustments to the purchase price allocations during the measurement period, which expired one year from the acquisition date. The Printing Components Business recorded $3.9 million and $7.0 million of net revenue during the three and six months ended March 31, 2019, respectively, and $3.6 million and $8.1 million during the three and six months ended March 31, 2018, 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, and therefore, not disclosed. During the three and six months ended March 31, 2018, the Company incurred $0 and $0.1 million of acquisition-related expenses in connection with the Printing Components Business acquisition, which were expensed to selling, general and administrative expense.

Concentration Risks

Concentration Risks	6 Months Ended
	Mar. 31, 2019
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, 2019 2018 2019 2018 Customer A 14.6 % 14.8 % 13.7 % 14.5 % Customer B 11.0 10.3 10.3 ** Customer C 10.8 12.3 13.8 13.3 ** Less than 10% of Faneuil net revenue. Trade receivables from these customers totaled $6.3 million on March 31, 2019. As of March 31, 2019, 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, 2019 2018 2019 2018 Customer A 31.5 % 29.9 % 30.4 % 28.4 % Customer B 25.5 17.3 26.5 20.9 Customer C 22.9 21.2 21.1 23.0 Trade receivables from these customers totaled $3.0 million on March 31, 2019. As of March 31, 2019, 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, 2019 2018 2019 2018 Customer A 23.0 % 21.1 % 21.1 % 18.7 % Customer B 20.5 15.9 19.2 17.3 Customer C 10.9 ** 11.6 10.1 Customer D ** 11.0 10.5 ** ** Less than 10% of Phoenix net revenue. Trade receivables from these customers totaled $5.1 million on March 31, 2019. As of March 31, 2019, 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, 2019 2018 2019 2018 Supplier A 21.6 % 16.6 % 22.9 % 18.0 % Supplier B 17.2 ** 15.6 ** Supplier C 15.6 23.5 16.0 22.9 Supplier D ** 14.0 10.5 13.7 ** 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, 2019 2018 2019 2018 Supplier A 25.6 % 30.7 % 25.9 % 30.1 % Supplier B ** ** ** 10.8 ** Less than 10% of Phoenix inventory purchases. 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, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Composition of Certain Financial Statement Captions	5. COMPOSITION Accounts Receivable, Net The following table summarizes accounts receivable at the end of each reporting period: March 31, September 30, (in thousands) 2019 2018 Accounts receivable $ 35,402 $ 42,815 Unbilled receivables 3,122 3,776 Accounts receivable 38,524 46,591 Less: allowance for doubtful accounts (131 ) (208 ) Accounts receivable, net $ 38,393 $ 46,383 Inventories, Net The following table summarizes inventories at the end of each reporting period: March 31, September 30, (in thousands) 2019 2018 Raw materials $ 4,101 $ 4,017 Semi-finished goods/work in process 2,180 2,298 Finished goods 1,392 1,566 Inventories 7,673 7,881 Less: allowance for obsolete inventory (290 ) (225 ) Inventories, net $ 7,383 $ 7,656 Property and Equipment The following table summarizes property and equipment at the end of each reporting period: March 31, September 30, (in thousands) 2019 2018 Machinery and equipment $ 29,244 $ 24,900 Leasehold improvements 22,058 9,334 Building and improvements 17,035 16,459 Software 16,030 15,749 Computer and office equipment 12,067 11,319 Land 9,267 9,267 Construction and equipment in process 8,110 10,627 Furniture and fixtures 6,660 3,834 Vehicles 375 342 Property and equipment 120,846 101,831 Less: accumulated depreciation and amortization (48,306 ) (41,669 ) Property and equipment, net $ 72,540 $ 60,162 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: March 31, September 30, (in thousands) 2019 2018 Faneuil $ 21,276 $ 21,276 Carpets 2,555 2,555 Phoenix 32,541 32,541 Goodwill $ 56,372 $ 56,372 Intangible Assets The following table summarizes identified intangible assets at the end of each reporting period: March 31, 2019 September 30, 2018 (in thousands) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Customer relationships $ 34,400 $ (11,770 ) $ 22,630 $ 34,400 $ (10,329 ) $ 24,071 Trade names 10,760 (2,544 ) 8,216 10,760 (1,573 ) 9,187 Supply agreements/contract backlog 10,358 (1,788 ) 8,570 10,358 (1,836 ) 8,522 Non-compete agreements 2,330 (2,039 ) 291 2,330 (1,811 ) 519 Internal software 580 (527 ) 53 580 (479 ) 101 Totals $ 58,428 $ (18,668 ) $ 39,760 $ 58,428 $ (16,028 ) $ 42,400 Intangible asset amortization expense was $1.3 million and $1.4 million for the three months ended March 31, 2019 and 2018, respectively, and $2.6 million and $2.8 million for the six months ended March 31, 2019 and 2018, respectively. The following table presents expected future amortization expense for the remainder (in thousands) Estimated Future Amortization Remainder of Fiscal 2019 $ 2,460 Fiscal 2020 4,800 Fiscal 2021 4,485 Fiscal 2022 4,067 Fiscal 2023 4,067 Thereafter 19,881 Total $ 39,760 Debt The following table summarizes ALJ’s line of credit, term loan, and equipment financing agreement at the end of each reporting period: March 31, September 30, (in thousands) 2019 2018 Line of credit: Line of credit $ 10,500 $ 8,739 Less: deferred loan costs (57 ) (145 ) Line of credit, net of deferred loan costs $ 10,443 $ 8,594 Current portion of term loans: Current portion of term loan $ 8,200 $ 9,470 Current portion of equipment financing 1,303 — Less: deferred loan costs (440 ) (875 ) Current portion of term loans, net of deferred loan costs $ 9,063 $ 8,595 Term loans, less current portion: Term loans, less current portion $ 76,982 $ 75,504 Equipment financing, less current portion 2,441 — Less: deferred loan costs (1,236 ) (709 ) Term loans, less current portion, net of deferred loan costs $ 78,187 $ 74,795 Accrued Expenses The following table summarizes accrued expenses at the end of each reporting period: March 31, September 30, ( in thousands 2019 2018 Accrued compensation and related taxes $ 8,260 $ 7,275 Call center buildout** 3,791 2,700 Rebates payable 1,192 1,491 Legal and other 1,242 1,123 Interest payable 742 676 Medical and benefit-related payables 729 609 Accrued board of director fees 390 130 Deferred rent 138 174 Sales tax payable 123 193 Total accrued expenses $ 16,607 $ 14,371 ** At March 31, 2019, Faneuil had total liabilities and commitments of $6.8 million to build out one new call center. $3.8 million was recorded to accrued liabilities, $1.5 million was recorded to other non-current liabilities, and $1.5 million was disclosed as a commitment. See Note 8. Workers’ Compensation Reserve Faneuil Carpets Phoenix.

Earnings (Loss) Per Share

Earnings (Loss) Per Share	6 Months Ended
	Mar. 31, 2019
Earnings Per Share [Abstract]
Earnings (Loss) Per Share	6. EARNINGS (LOSS) PER SHARE ALJ computed basic and diluted earnings (loss) per share of common stock for each period as follows: Three Months Ended March 31, Six Months Ended March 31, ( in thousands, except per share amounts 2019 2018 2019 2018 Net income (loss) $ 423 $ (340 ) $ 1,134 $ (5,658 ) Weighted average shares of common stock outstanding – basic 38,026 37,911 38,037 37,742 Potentially dilutive effect of options to purchase common stock 50 — 50 — Weighted average shares of common stock outstanding – diluted 38,076 37,911 38,087 37,742 Basic earnings (loss) per share of common stock $ 0.01 $ (0.01 ) $ 0.03 $ (0.15 ) Diluted earnings (loss) per share of common stock $ 0.01 $ (0.01 ) $ 0.03 $ (0.15 ) ALJ computed basic earnings (loss) per share of common stock using net income (loss) divided by the weighted average number of shares of common stock outstanding during the period. ALJ computed diluted earnings (loss) per share of common stock using net income (loss) 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. During the three and six months ended March 31, 2019, and the three and six months ended March 31, 2018, stock options to purchase 1.5 million and 1.6 million shares of common stock, respectively, were not included in ALJ’s diluted earnings (loss) per share as their effect would be anti-dilutive.

Debt

Debt	6 Months Ended
	Mar. 31, 2019
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 four amendments to the Financing Agreement. Fourth Amendment to Financing Agreement On November 28, 2018, ALJ entered into the Fourth Amendment (the “Fourth Amendment”) to the Financing Agreement. The Fourth Amendment added a $5.0 million term loan, reduced the maximum availability of the Cerberus/PNC Revolver by $5.0 million to $25.0 million from $30.0 million, extended the maturity date to December 1, 2023 (“Amended Maturity Date”), and effective December 31, 2018, reduced quarterly term loan amortization payments from $2.3 million to $2.1 million. The Fourth Amendment amends certain terms and covenants to support the continued growth of the Company and the associated cash required to build out three new customer call centers to position Faneuil for anticipated increased contract awards, as summarized below: • an easing of the fixed charge coverage ratio financial covenant from 1.25:1.00 to (a) 1.05:1.00 for each quarter beginning with the quarter ended December 31, 2018 through the quarter ending September 30, 2020 and (b) 1.10:1.00 for the quarter beginning with the quarter ending December 31, 2020 and for each quarter thereafter; and • a stepdown in the leverage ratio financial covenant from (a) 3.50:1.00 for each quarter beginning with the quarter ended December 31, 2018 through the quarter ending September 30, 2020, to (b) 3.25:1.00 for each quarter beginning with the quarter ending December 31, 2020 through the quarter ending September 30, 2021, (c) 3.00:1.00 for each quarter beginning with the quarter ending December 31, 2021 through the quarter ending September 30, 2022 and (d) 2.75:1.00 for each quarter beginning with the quarter ending December 31, 2022 and for each quarter thereafter. In addition, the Fourth Amendment requires the Company, under certain circumstances, to secure not less than $5.0 million of equity or subordinated debt financing, which will be used to pay down the Cerberus Term Loan (the “Alternative Financing Requirement”). See Backstop Letter Agreement The Financing Agreement and amendments thereto are summarized below ( in thousands Description Use of Proceeds Origination Date Interest Rate * Quarterly Payments Balance at March 31, 2019 Term Loan: Financing Agreement Phoenix acquisition August 2015 9.00% to 9.28% $ 1,610 $ 66,893 First Amendment Color Optics acquisition July 2016 9.00% to 9.28% 175 7,286 Third Amendment Printing Components Business acquisition October 2017 9.00% to 9.28% 151 6,252 Fourth Amendment Working capital November 2018 9.00% to 9.28% 114 4,751 Totals $ 2,050 $ 85,182 Line of Credit: Cerberus/PNC Revolver (includes Second Amendment) Working capital August 2015 11.00% to 11.25% $ — $ 10,500 * Range of annual interest rates accrued during the six months ended March 31, 2019. 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 annual audited financial statements. During December 2018 and December 2017, ALJ made ECF payments of $0.3 million and $4.1 million, respectively. During the six months ended March 31, 2019, ALJ made mandatory payments of $0.4 million as a result of receiving proceeds from sales of assets. A final balloon payment is due on the Amended Maturity Date. There is a prepayment penalty equal to 3%, 2%, and 1% if the Cerberus Term Loan is repaid within the first, second, and third year anniversary of the Fourth Amendment. 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, 2019, ALJ was in compliance with all debt covenants and had unused borrowing capacity of $11.9 million. Backstop Letter Agreement On November 28, 2018, in connection with the Fourth Amendment, the Company entered into a Backstop Letter Agreement with Jess Ravich, the Company’s Executive Chairman. Pursuant to the Backstop Letter Agreement, Mr. Ravich will provide a “backstop” that would enable the Company to satisfy the Alternative Financing Requirement by agreeing, if the Company is unable to locate alternative financing on terms, conditions and timing reasonably acceptable to it, and if required by the Collateral Agent. In consideration of Mr. Ravich entering into such backstop arrangement, the Company’s Audit Committee and independent directors reviewed, approved and agreed to a backstop fee package, pursuant to which the Company would (i) pay to Mr. Ravich’s trust a one-time backstop fee of $0.1 million, and (ii) if the purchase of such subordinated debt is required by the Collateral Agent and the Company has failed to secure a financing alternative more advantageous to the Company, issue to Mr. Ravich’s trust a five-year warrant (the “Warrant”) to purchase 1.5 million shares of ALJ common stock at an exercise price equal to the average closing price of the Company’s common stock as reported on The Nasdaq Stock Market for the 30 trading days preceding the warrant issuance date. On February 28, 2019, the Company determined the conditions set forth in the Backstop Letter Agreement requiring the issuance of the Warrant by the Company to Mr. Ravich’s trust were not met and that the Company shall have no further obligations under the Backstop Letter Agreement with regards to the Warrant. Initially, ALJ recorded the backstop fee and other fees incurred in connection with the Backstop Letter Agreement, which totaled approximately $0.1 million, as a current asset. During the three months ended March 31, 2019, ALJ expensed the backstop and other fees incurred in connection with the Backstop Letter Agreement, which totaled approximately $0.1 million, to selling, general and administrative expense. Loan Amendment Fees ALJ accounted for the Fourth Amendment as a debt modification pursuant to ASC 470, Debt During the six months ended March 31, 2018, in connection with the Third Amendment to the Financing Agreement, ALJ paid legal and other fees totaling $0.3 million, which were added to deferred loan costs and are being amortized to interest expense through the Amended Maturity Date. Contingent Loan Costs Pursuant to the second amendment to the Financing Agreement, ALJ is required to pay a fee in each of three consecutive annual periods commencing May 27, 2018, 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. During May 2018, ALJ paid the first Contingent Payment, which was added to deferred loan costs and is being amortized to interest expense through April 30, 2019. Equipment Financing In December 2018, Phoenix purchased a Heidelberg Press for $4.1 million pursuant to an equipment financing agreement (“Equipment Financing”). The Equipment Financing term is 36 months, requires monthly principal and interest payments, accrues interest at 4.94% per year, and is secured by the Heidelberg Press. Estimated Future Minimum Principal Payments Estimated future minimum principal payments for the Cerberus Debt and Equipment Financing are as follows ( in thousands Year Ending March 31, Equipment Financing Cerberus Debt Total 2020 $ 1,303 $ 8,200 $ 9,503 2021 1,369 8,200 9,569 2022 1,072 8,200 9,272 2023 — 8,200 8,200 2024* — 62,882 62,882 Total $ 3,744 $ 95,682 $ 99,426 * The majority of this amount is the final balloon payment due on the Amended Maturity Date. Capital Lease Obligations Faneuil and Phoenix lease equipment under non-cancelable capital leases. As of March 31, 2019, 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 2020 $ 2,679 2021 1,931 2022 536 2023 536 2024 435 Total minimum required payments 6,117 Less: current portion of capital lease obligations (2,510 ) Less: imputed interest (364 ) Capital lease obligations, less current portion $ 3,243

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Mar. 31, 2019
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	8. COMMITMENTS AND CONTINGENCIES Operating Leases The Company leases real estate, equipment, and vehicles under non-cancellable operating leases. As of March 31, 2019, future minimum rental commitments under non-cancellable leases were as follows ( in thousands Year Ending March 31, Future Minimum Lease Payments 2020 $ 5,703 2021 4,909 2022 3,589 2023 2,850 2024 2,814 Thereafter 15,414 Total $ 35,279 Employment Agreements ALJ maintains employment agreements with certain key executive officers that provide for a base salary and an annual bonus, with annual bonus amounts 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, 2019, termination payments related to base salary totaled $1.2 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, 2019, 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 $26.3 million. To date, Faneuil has not made any non-performance payments to any of its sureties. Letters of Credit The Company had letters of credit totaling $3.3 million outstanding as of March 31, 2019. Leasehold Improvements At March 31, 2019, Faneuil had a commitment of $1.5 million to build out one new call center. Faneuil expects to complete the call center within the next 12 months. See related accrued liabilities at Note 5. Litigation, Claims, and Assessments Faneuil, Inc. v. 3M Company On September 22, 2016, Faneuil filed a complaint against 3M Company (“3M”) in the Circuit Court for the City of Richmond, Virginia (the “Richmond Circuit Court”). The dispute arose out of a subcontract entered into between 3M and Faneuil in relation to a toll road project in Portsmouth, Virginia. In its complaint, Faneuil sought 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 sought 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 alleged it incurred approximately $3.2 million in damages payable to ERC as a result of Faneuil’s conduct and sought indemnification of an additional $10.0 million in damages incurred as a result of continued performance under its contract with ERC. The matter was tried in a bench trial from April 30, 2018 through May 2, 2018. On May 15, 2018, the Richmond Circuit Court issued its opinion, which dismissed both Faneuil’s complaint and 3M’s counterclaim with prejudice. No monetary damages were awarded to either Faneuil or 3M. As a result of the Richmond Circuit Court’s opinion, ALJ recorded a non-cash litigation loss of $2.9 million (the outstanding unreserved receivable from 3M), which was included with selling, general and administrative expense during the year ended September 30, 2018. Faneuil has filed an appeal of the Richmond Circuit Court’s judgment. The parties have fully briefed the merits of Faneuil’s appeal and are waiting for the court to set the date for oral argument at this time. 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, which has been granted. The case is in early discovery at this time. Faneuil believes this action is without merit and intends to defend it vigorously. 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. All amounts were paid during ALJ’s fiscal year ended September 30, 2018. Other Litigation The Company has 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 the Company, whether meritorious or not, could be time-consuming, cause the Company 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. The Company concluded as of March 31, 2019 that the ultimate resolution of these matters ( including the matters described above) will not have a material adverse effect on the Company’s b usiness, consolidated financial position, results of operations or cash flows. Environmental Matters The operations of Phoenix are subject to various laws and related regulations governing environmental matters. Under such laws, an owner or lessee of real estate may be liable for the costs of removal or remediation of certain hazardous or toxic substances located on or in, or emanating from, such property, as well as investigation of property damage. Phoenix incurs ongoing expenses associated with the performance of appropriate monitoring and remediation at certain of its locations.

Equity

Equity	6 Months Ended
	Mar. 31, 2019
Equity [Abstract]
Equity	9. EQUITY Common Stock Activity during the Six Months Ended March 31, 2019 ALJ’s common stock activity for the six months ended March 31, 2019 consisted of the following: • Retired 84,000 shares of common stock, which were received by ALJ as part of a settlement agreement related to Faneuil’s acquisition of certain customer management outsourcing business assets and liabilities (the “CMO Business”) in May 2017. In connection with the settlement, ALJ recognized a $0.1 million gain during the six months ended March 31, 2019, which was included with disposal of assets and other gain on the statement of operations. 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 Printing Components Business acquisition. See Note 3. • Issued 102,102 shares of common stock to members of ALJ’s Board of Directors as compensation. 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. 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 selling, general and administrative expense on the statement of operations: Three Months Ended March 31, Six Months Ended March 31, (in thousands) 2019 2018 2019 2018 Stock options $ 84 $ 167 $ 168 $ 358 Common stock awards 102 103 203 205 Total stock-based compensation expense $ 186 $ 270 $ 371 $ 563 At March 31, 2019, ALJ had approximately $0.5 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 1.6 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) was less than $0.1 million at March 31, 2019. Common Stock Awards 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, 2019
Income Tax Disclosure [Abstract]
Income Taxes	10. INCOME TAX ALJ recorded a provision for income taxes for both the three and six months ended March 31, 2019 as a result of generating state taxable income. ALJ recorded a benefit for income taxes for the three months ended March 31, 2018 as a result of generating state taxable losses. ALJ’s provision for income taxes for the six months ended March 31, 2018 was impacted by the United States Tax Reform as discussed below. 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, 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 Alternative Minimum Tax Pursuant to ASC Topic 740-10, “ Income Taxes

Related-Party Transactions

Related-Party Transactions	6 Months Ended
	Mar. 31, 2019
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, had a contract with Faneuil to provide call center services for Harland Clarke’s banking-related products. The contract completed in March 2019. Faneuil recognized revenue from Harland Clarke totaling $0.1 million for both the three and six months ended March 31, 2019, and $0.1 million and $0.2 million for the three and six months ended March 31, 2018, respectively. The associated cost of revenue was $0.1 million for both the three and six months ended March 31, 2019, and $0.1 million and $0.2 million for the three and six months ended March 31, 2018, respectively. All revenue from Harland Clarke contained similar terms and conditions as those found in other transactions of this nature entered into by Faneuil. Total accounts receivable from Harland Clarke was less than $0.1 million at March 31, 2019 and September 30, 2018.

Reportable Segments and Geograp

Reportable Segments and Geographic Information	6 Months Ended
	Mar. 31, 2019
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 depreciation and amortization, interest expense, litigation loss, restructuring expenses, lease payments in anticipation of facility shutdown, loan amendment fees, stock-based compensation, acquisition-related expenses, disposal of fixed assets and other gain, provision for income taxes, 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, 2019 and 2018: Three Months Ended March 31, 2019 ( in thousands Faneuil Carpets Phoenix ALJ Total Net revenue $ 46,590 $ 12,088 $ 29,318 $ — $ 87,996 Segment adjusted EBITDA $ 2,793 $ 272 $ 6,335 $ (659 ) $ 8,741 Depreciation and amortization (4,837 ) Interest expense (2,625 ) Lease payments in anticipation of facility shutdown (188 ) Stock-based compensation (186 ) Restructuring expenses (144 ) Loan amendment fees (136 ) Provision for income taxes (202 ) Net income $ 423 Six Months Ended March 31, 2019 ( in thousands Faneuil Carpets Phoenix ALJ Total Net revenue $ 101,792 $ 24,450 $ 55,538 $ — $ 181,780 Segment adjusted EBITDA $ 7,739 $ 432 $ 10,556 $ (1,380 ) $ 17,347 Depreciation and amortization (9,283 ) Interest expense (5,340 ) Lease payments in anticipation of facility shutdown (374 ) Stock-based compensation (371 ) Loan amendment fees (337 ) Restructuring expenses (229 ) Acquisition-related expenses (12 ) Disposal of assets and other gain 223 Provision for income taxes (490 ) Net income $ 1,134 Three Months Ended March 31, 2018 (in thousands) 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 Depreciation and amortization (4,850 ) Interest expense (2,793 ) Restructuring expenses (430 ) Stock-based compensation (270 ) Disposal of assets and other gain 25 Benefit for income taxes 384 Net loss $ (340 ) Six Months Ended March 31, 2018 ( in thousands 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 Depreciation and amortization (9,683 ) Interest expense (5,453 ) Restructuring expenses (1,263 ) Stock-based compensation (563 ) Acquisition-related expenses (123 ) Disposal of assets and other gain 232 Provision for income taxes (2,987 ) Net loss $ (5,658 ) 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 Pre_2

Organization and Basis of Presentation (Policies)	6 Months Ended
	Mar. 31, 2019
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, 2019 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, 2018 and 2017 contained in its Annual Report on Form 10-K, filed with the SEC on December 17, 2018. 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, 2019, 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, 2018 and 2017 contained in its Annual Report on Form 10-K, filed with the SEC on December 17, 2018. There were no material changes to ALJ’s significant accounting policies during the six months ended March 31, 2019.

Acquisitions (Tables)

Acquisitions (Tables)	6 Months Ended
	Mar. 31, 2019
Printing Components Business Acquisition [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 (note 7) $ 7,500 Common stock issued (note 9) 1,500 Cash received from exercise of stock option 1,000 Purchase price $ 10,000

Concentration Risks (Tables)

Concentration Risks (Tables)	6 Months Ended
	Mar. 31, 2019
Sales Revenue, Segment [Member] | Faneuil [Member]
Schedule of Concentration Percentage of Different Customers	Faneuil Three Months Ended March 31, Six Months Ended March 31, 2019 2018 2019 2018 Customer A 14.6 % 14.8 % 13.7 % 14.5 % Customer B 11.0 10.3 10.3 ** Customer C 10.8 12.3 13.8 13.3 ** 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, 2019 2018 2019 2018 Customer A 31.5 % 29.9 % 30.4 % 28.4 % Customer B 25.5 17.3 26.5 20.9 Customer C 22.9 21.2 21.1 23.0
Sales Revenue, Segment [Member] | Phoenix [Member]
Schedule of Concentration Percentage of Different Customers	Phoenix Three Months Ended March 31, Six Months Ended March 31, 2019 2018 2019 2018 Customer A 23.0 % 21.1 % 21.1 % 18.7 % Customer B 20.5 15.9 19.2 17.3 Customer C 10.9 ** 11.6 10.1 Customer D ** 11.0 10.5 ** ** 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, 2019 2018 2019 2018 Supplier A 21.6 % 16.6 % 22.9 % 18.0 % Supplier B 17.2 ** 15.6 ** Supplier C 15.6 23.5 16.0 22.9 Supplier D ** 14.0 10.5 13.7 ** 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, 2019 2018 2019 2018 Supplier A 25.6 % 30.7 % 25.9 % 30.1 % Supplier B ** ** ** 10.8 ** Less than 10% of Phoenix inventory purchases.

Composition of Certain Financ_2

Composition of Certain Financial Statement Captions (Tables)	6 Months Ended
	Mar. 31, 2019
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: March 31, September 30, (in thousands) 2019 2018 Accounts receivable $ 35,402 $ 42,815 Unbilled receivables 3,122 3,776 Accounts receivable 38,524 46,591 Less: allowance for doubtful accounts (131 ) (208 ) Accounts receivable, net $ 38,393 $ 46,383
Summary of Inventories	The following table summarizes inventories at the end of each reporting period: March 31, September 30, (in thousands) 2019 2018 Raw materials $ 4,101 $ 4,017 Semi-finished goods/work in process 2,180 2,298 Finished goods 1,392 1,566 Inventories 7,673 7,881 Less: allowance for obsolete inventory (290 ) (225 ) Inventories, net $ 7,383 $ 7,656
Summary of Property and Equipment	The following table summarizes property and equipment at the end of each reporting period: March 31, September 30, (in thousands) 2019 2018 Machinery and equipment $ 29,244 $ 24,900 Leasehold improvements 22,058 9,334 Building and improvements 17,035 16,459 Software 16,030 15,749 Computer and office equipment 12,067 11,319 Land 9,267 9,267 Construction and equipment in process 8,110 10,627 Furniture and fixtures 6,660 3,834 Vehicles 375 342 Property and equipment 120,846 101,831 Less: accumulated depreciation and amortization (48,306 ) (41,669 ) Property and equipment, net $ 72,540 $ 60,162
Summary of Goodwill	The following table summarizes goodwill by reportable segment at the end of each reporting period: March 31, September 30, (in thousands) 2019 2018 Faneuil $ 21,276 $ 21,276 Carpets 2,555 2,555 Phoenix 32,541 32,541 Goodwill $ 56,372 $ 56,372
Summary of Intangible Assets	The following table summarizes identified intangible assets at the end of each reporting period: March 31, 2019 September 30, 2018 (in thousands) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Customer relationships $ 34,400 $ (11,770 ) $ 22,630 $ 34,400 $ (10,329 ) $ 24,071 Trade names 10,760 (2,544 ) 8,216 10,760 (1,573 ) 9,187 Supply agreements/contract backlog 10,358 (1,788 ) 8,570 10,358 (1,836 ) 8,522 Non-compete agreements 2,330 (2,039 ) 291 2,330 (1,811 ) 519 Internal software 580 (527 ) 53 580 (479 ) 101 Totals $ 58,428 $ (18,668 ) $ 39,760 $ 58,428 $ (16,028 ) $ 42,400
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 2019 $ 2,460 Fiscal 2020 4,800 Fiscal 2021 4,485 Fiscal 2022 4,067 Fiscal 2023 4,067 Thereafter 19,881 Total $ 39,760
Summary of Line of Credit, Term Loan and Equipment Financing Agreement	The following table summarizes ALJ’s line of credit, term loan, and equipment financing agreement at the end of each reporting period: March 31, September 30, (in thousands) 2019 2018 Line of credit: Line of credit $ 10,500 $ 8,739 Less: deferred loan costs (57 ) (145 ) Line of credit, net of deferred loan costs $ 10,443 $ 8,594 Current portion of term loans: Current portion of term loan $ 8,200 $ 9,470 Current portion of equipment financing 1,303 — Less: deferred loan costs (440 ) (875 ) Current portion of term loans, net of deferred loan costs $ 9,063 $ 8,595 Term loans, less current portion: Term loans, less current portion $ 76,982 $ 75,504 Equipment financing, less current portion 2,441 — Less: deferred loan costs (1,236 ) (709 ) Term loans, less current portion, net of deferred loan costs $ 78,187 $ 74,795
Summary of Accrued Expenses	The following table summarizes accrued expenses at the end of each reporting period: March 31, September 30, ( in thousands 2019 2018 Accrued compensation and related taxes $ 8,260 $ 7,275 Call center buildout** 3,791 2,700 Rebates payable 1,192 1,491 Legal and other 1,242 1,123 Interest payable 742 676 Medical and benefit-related payables 729 609 Accrued board of director fees 390 130 Deferred rent 138 174 Sales tax payable 123 193 Total accrued expenses $ 16,607 $ 14,371 ** At March 31, 2019, Faneuil had total liabilities and commitments of $6.8 million to build out one new call center. $3.8 million was recorded to accrued liabilities, $1.5 million was recorded to other non-current liabilities, and $1.5 million was disclosed as a commitment. See Note 8.

Earnings (Loss) Per Share (Tabl

Earnings (Loss) Per Share (Tables)	6 Months Ended
	Mar. 31, 2019
Earnings Per Share [Abstract]
Computation of Basic and Diluted Earnings (Loss) Per Share of Common Stock	ALJ computed basic and diluted earnings (loss) per share of common stock for each period as follows: Three Months Ended March 31, Six Months Ended March 31, ( in thousands, except per share amounts 2019 2018 2019 2018 Net income (loss) $ 423 $ (340 ) $ 1,134 $ (5,658 ) Weighted average shares of common stock outstanding – basic 38,026 37,911 38,037 37,742 Potentially dilutive effect of options to purchase common stock 50 — 50 — Weighted average shares of common stock outstanding – diluted 38,076 37,911 38,087 37,742 Basic earnings (loss) per share of common stock $ 0.01 $ (0.01 ) $ 0.03 $ (0.15 ) Diluted earnings (loss) per share of common stock $ 0.01 $ (0.01 ) $ 0.03 $ (0.15 )

Debt (Tables)

Debt (Tables)	6 Months Ended
	Mar. 31, 2019
Debt Disclosure [Abstract]
Summary of Financing Agreement and Amendments	The Financing Agreement and amendments thereto are summarized below ( in thousands Description Use of Proceeds Origination Date Interest Rate * Quarterly Payments Balance at March 31, 2019 Term Loan: Financing Agreement Phoenix acquisition August 2015 9.00% to 9.28% $ 1,610 $ 66,893 First Amendment Color Optics acquisition July 2016 9.00% to 9.28% 175 7,286 Third Amendment Printing Components Business acquisition October 2017 9.00% to 9.28% 151 6,252 Fourth Amendment Working capital November 2018 9.00% to 9.28% 114 4,751 Totals $ 2,050 $ 85,182 Line of Credit: Cerberus/PNC Revolver (includes Second Amendment) Working capital August 2015 11.00% to 11.25% $ — $ 10,500 * Range of annual interest rates accrued during the six months ended March 31, 2019.
Schedule of Estimated Future Minimum Principal Payments for Cerberus Debt and Equipment Financing	Estimated Future Minimum Principal Payments Estimated future minimum principal payments for the Cerberus Debt and Equipment Financing are as follows ( in thousands Year Ending March 31, Equipment Financing Cerberus Debt Total 2020 $ 1,303 $ 8,200 $ 9,503 2021 1,369 8,200 9,569 2022 1,072 8,200 9,272 2023 — 8,200 8,200 2024* — 62,882 62,882 Total $ 3,744 $ 95,682 $ 99,426 * The majority of this amount is the final balloon payment due on the Amended Maturity Date.
Schedule of Future Minimum Lease Payments under Non-Cancelable Capital Leases	As of March 31, 2019, 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 2020 $ 2,679 2021 1,931 2022 536 2023 536 2024 435 Total minimum required payments 6,117 Less: current portion of capital lease obligations (2,510 ) Less: imputed interest (364 ) Capital lease obligations, less current portion $ 3,243

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Mar. 31, 2019
Commitments And Contingencies Disclosure [Abstract]
Schedule of Future Minimum Rental Commitments under Non-cancellable Leases	As of March 31, 2019, future minimum rental commitments under non-cancellable leases were as follows ( in thousands Year Ending March 31, Future Minimum Lease Payments 2020 $ 5,703 2021 4,909 2022 3,589 2023 2,850 2024 2,814 Thereafter 15,414 Total $ 35,279

Equity (Tables)

Equity (Tables)	6 Months Ended
	Mar. 31, 2019
Equity [Abstract]
Summary of Total Stock-Based Compensation Expense Included in Selling General and Administrative Expense on Statements of Operations	The following table sets forth the total stock-based compensation expense included in selling, general and administrative expense on the statement of operations: Three Months Ended March 31, Six Months Ended March 31, (in thousands) 2019 2018 2019 2018 Stock options $ 84 $ 167 $ 168 $ 358 Common stock awards 102 103 203 205 Total stock-based compensation expense $ 186 $ 270 $ 371 $ 563

Reportable Segments and Geogr_2

Reportable Segments and Geographic Information (Tables)	6 Months Ended
	Mar. 31, 2019
Segment Reporting [Abstract]
Summary of Segment Information	The following tables present ALJ’s segment information for the three and six months ended March 31, 2019 and 2018: Three Months Ended March 31, 2019 ( in thousands Faneuil Carpets Phoenix ALJ Total Net revenue $ 46,590 $ 12,088 $ 29,318 $ — $ 87,996 Segment adjusted EBITDA $ 2,793 $ 272 $ 6,335 $ (659 ) $ 8,741 Depreciation and amortization (4,837 ) Interest expense (2,625 ) Lease payments in anticipation of facility shutdown (188 ) Stock-based compensation (186 ) Restructuring expenses (144 ) Loan amendment fees (136 ) Provision for income taxes (202 ) Net income $ 423 Six Months Ended March 31, 2019 ( in thousands Faneuil Carpets Phoenix ALJ Total Net revenue $ 101,792 $ 24,450 $ 55,538 $ — $ 181,780 Segment adjusted EBITDA $ 7,739 $ 432 $ 10,556 $ (1,380 ) $ 17,347 Depreciation and amortization (9,283 ) Interest expense (5,340 ) Lease payments in anticipation of facility shutdown (374 ) Stock-based compensation (371 ) Loan amendment fees (337 ) Restructuring expenses (229 ) Acquisition-related expenses (12 ) Disposal of assets and other gain 223 Provision for income taxes (490 ) Net income $ 1,134 Three Months Ended March 31, 2018 (in thousands) 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 Depreciation and amortization (4,850 ) Interest expense (2,793 ) Restructuring expenses (430 ) Stock-based compensation (270 ) Disposal of assets and other gain 25 Benefit for income taxes 384 Net loss $ (340 ) Six Months Ended March 31, 2018 ( in thousands 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 Depreciation and amortization (9,683 ) Interest expense (5,453 ) Restructuring expenses (1,263 ) Stock-based compensation (563 ) Acquisition-related expenses (123 ) Disposal of assets and other gain 232 Provision for income taxes (2,987 ) Net loss $ (5,658 )

Acquisitions - Additional Infor

Acquisitions - Additional Information (Detail) $ in Thousands	Oct. 02, 2017USD ($)Investor	Mar. 31, 2019USD ($)	Mar. 31, 2018USD ($)	Mar. 31, 2019USD ($)	Mar. 31, 2018USD ($)
Business Acquisition [Line Items]
Payments to acquisition of business assets and liabilities				$ 1,000	$ 9,000
Proceeds from stock option exercise					278
Net revenue		$ 87,996	$ 95,105	181,780	190,059
Purchase-related legal and accounting fees				12	123
LSC and Moore-Langen [Member] | Phoenix [Member]
Business Acquisition [Line Items]
Payments to acquisition of business assets and liabilities	$ 10,000
Printing Components Business Acquisition [Member]
Business Acquisition [Line Items]
Maximum measurement period for estimates of assets acquired and liabilities assumed	1 year
Net revenue		$ 3,900	3,600	$ 7,000	8,100
Printing Components Business Acquisition [Member] | Selling, General and Administrative Expense [Member]
Business Acquisition [Line Items]
Purchase-related legal and accounting fees			$ 0		$ 100
Printing Components Business Acquisition [Member] | Executive Chairman [Member]
Business Acquisition [Line Items]
Proceeds from stock option exercise	$ 1,000
Printing Components Business Acquisition [Member] | Common Stock [Member] | Private Offering [Member]
Business Acquisition [Line Items]
Business acquisition common stock sold, value	$ 1,500
Business acquisition common stock sold to number of investors | Investor	2
Printing Components Business Acquisition [Member] | Cerberus Term Loan [Member]
Business Acquisition [Line Items]
Proceeds from debt	$ 7,500
Printing Components Business Acquisition [Member] | Phoenix [Member]
Business Acquisition [Line Items]
Business acquisition amount withheld from consideration paid	$ 1,000
Business acquisition withheld amount payable date	Oct. 31, 2018

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	Mar. 31, 2019	Sep. 30, 2018
Identified intangible assets:
Goodwill		$ 56,372	$ 56,372
Printing Components Business Acquisition [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 (note 7)	7,500
Common stock issued (note 9)	1,500
Cash received from exercise of stock option	1,000
Purchase price	10,000
Printing Components Business Acquisition [Member] | Supply Agreements/Contract Backlog [Member]
Identified intangible assets:
Identified intangible assets	$ 4,700

Concentration Risks - Additiona

Concentration Risks - Additional Information (Detail) $ in Millions	6 Months Ended
	Mar. 31, 2019USD ($)CustomerSegment
Faneuil [Member]
Concentration Risk [Line Items]
Accounts receivable	$ 6.3
Carpets [Member]
Concentration Risk [Line Items]
Accounts receivable	3
Phoenix [Member]
Concentration Risk [Line Items]
Accounts receivable	$ 5.1
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] | Sales Revenue, Net [Member] | Maximum [Member] | Phoenix [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, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Customer A [Member] | Faneuil [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	14.60%	14.80%	13.70%	14.50%
Customer A [Member] | Carpets [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	31.50%	29.90%	30.40%	28.40%
Customer A [Member] | Phoenix [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	23.00%	21.10%	21.10%	18.70%
Customer B [Member] | Faneuil [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	11.00%	10.30%	10.30%
Customer B [Member] | Carpets [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	25.50%	17.30%	26.50%	20.90%
Customer B [Member] | Phoenix [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	20.50%	15.90%	19.20%	17.30%
Customer C [Member] | Faneuil [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	10.80%	12.30%	13.80%	13.30%
Customer C [Member] | Carpets [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	22.90%	21.20%	21.10%	23.00%
Customer C [Member] | Phoenix [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	10.90%		11.60%	10.10%
Customer D [Member] | Phoenix [Member]
Concentration Risk [Line Items]
Concentration risk, percentage		11.00%	10.50%

Concentration Risks - Major C_2

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, 2019
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, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Supplier A [Member] | Carpets [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	21.60%	16.60%	22.90%	18.00%
Supplier A [Member] | Phoenix [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	25.60%	30.70%	25.90%	30.10%
Supplier B [Member] | Carpets [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	17.20%		15.60%
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	15.60%	23.50%	16.00%	22.90%
Supplier D [Member] | Carpets [Member]
Concentration Risk [Line Items]
Concentration risk, percentage		14.00%	10.50%	13.70%

Concentration Risks - Supplie_2

Concentration Risks - Supplier Risk - Schedule of Concentration Percentage of Different Customers (Parenthetical) (Detail) - Maximum [Member] - Sales Revenue, Net [Member] - Supplier Concentration Risk [Member]	6 Months Ended
	Mar. 31, 2019
Carpets [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	10.00%
Phoenix [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	10.00%

Composition of Certain Financ_3

Composition of Certain Financial Statement Captions - Summary of Accounts Receivable (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Sep. 30, 2018
Accounts Receivable Net Current [Abstract]
Accounts receivable	$ 35,402	$ 42,815
Unbilled receivables	3,122	3,776
Accounts receivable	38,524	46,591
Less: allowance for doubtful accounts	(131)	(208)
Accounts receivable, net	$ 38,393	$ 46,383

Composition of Certain Financ_4

Composition of Certain Financial Statement Captions - Summary of Inventories (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Sep. 30, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 4,101	$ 4,017
Semi-finished goods/work in process	2,180	2,298
Finished goods	1,392	1,566
Inventories	7,673	7,881
Less: allowance for obsolete inventory	(290)	(225)
Inventories, net	$ 7,383	$ 7,656

Composition of Certain Financ_5

Composition of Certain Financial Statement Captions - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Sep. 30, 2018
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 120,846	$ 101,831
Less: accumulated depreciation and amortization	(48,306)	(41,669)
Property and equipment, net	72,540	60,162
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	29,244	24,900
Building and Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	17,035	16,459
Construction and Equipment In Process [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	8,110	10,627
Software [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	16,030	15,749
Computer and Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	12,067	11,319
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	22,058	9,334
Land [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	9,267	9,267
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	6,660	3,834
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 375	$ 342

Composition of Certain Financ_6

Composition of Certain Financial Statement Captions - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018	Oct. 01, 2018
Condensed Financial Statements, Captions [Line Items]
Depreciation and amortization expense including capital leased assets	$ 3,500,000	$ 3,500,000	$ 6,600,000	$ 6,900,000
Intangible asset amortization expense	1,300,000	$ 1,400,000	2,600,000	$ 2,800,000
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
Carpets [Member] | Workers' Compensation Claims [Member] | Maximum [Member]
Condensed Financial Statements, Captions [Line Items]
Self-insured amount					$ 200,000

Composition of Certain Financ_7

Composition of Certain Financial Statement Captions - Summary of Goodwill (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Sep. 30, 2018
Goodwill [Line Items]
Goodwill	$ 56,372	$ 56,372
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	$ 32,541

Composition of Certain Financ_8

Composition of Certain Financial Statement Captions - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Sep. 30, 2018
Finite-Lived Intangible Assets [Line Items]
Gross	$ 58,428	$ 58,428
Accumulated Amortization	(18,668)	(16,028)
Net	39,760	42,400
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Gross	34,400	34,400
Accumulated Amortization	(11,770)	(10,329)
Net	22,630	24,071
Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Gross	10,760	10,760
Accumulated Amortization	(2,544)	(1,573)
Net	8,216	9,187
Supply Agreements/Contract Backlog [Member]
Finite-Lived Intangible Assets [Line Items]
Gross	10,358	10,358
Accumulated Amortization	(1,788)	(1,836)
Net	8,570	8,522
Non-compete Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Gross	2,330	2,330
Accumulated Amortization	(2,039)	(1,811)
Net	291	519
Internal Software [Member]
Finite-Lived Intangible Assets [Line Items]
Gross	580	580
Accumulated Amortization	(527)	(479)
Net	$ 53	$ 101

Composition of Certain Financ_9

Composition of Certain Financial Statement Captions - Summary of Expected Future Amortization Expense (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Sep. 30, 2018
Finite Lived Intangible Assets Future Amortization Expense [Abstract]
Remainder of Fiscal 2019	$ 2,460
Fiscal 2020	4,800
Fiscal 2021	4,485
Fiscal 2022	4,067
Fiscal 2023	4,067
Thereafter	19,881
Net	$ 39,760	$ 42,400

Composition of Certain Finan_10

Composition of Certain Financial Statement Captions - Summary of Line of Credit, Term Loan and Equipment Financing Agreement (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Sep. 30, 2018
Line of credit:
Line of credit	$ 10,500	$ 8,739
Less: deferred loan costs	(57)	(145)
Line of credit, net of deferred loan costs	10,443	8,594
Current portion of term loans:
Current portion of term loan	8,200	9,470
Current portion of equipment financing	1,303
Less: deferred loan costs	(440)	(875)
Current portion of term loans, net of deferred loan costs	9,063	8,595
Term loans, less current portion:
Term loans, less current portion	76,982	75,504
Equipment financing, less current portion	2,441
Less: deferred loan costs	(1,236)	(709)
Term loans, less current portion, net of deferred loan costs	$ 78,187	$ 74,795

Composition of Certain Finan_11

Composition of Certain Financial Statement Captions - Summary of Accrued Expenses (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Sep. 30, 2018
Accrued Liabilities Current [Abstract]
Accrued compensation and related taxes	$ 8,260	$ 7,275
Call center buildout	3,791	2,700
Rebates payable	1,192	1,491
Legal and other	1,242	1,123
Interest payable	742	676
Medical and benefit-related payables	729	609
Accrued board of director fees	390	130
Deferred rent	138	174
Sales tax payable	123	193
Total accrued expenses	$ 16,607	$ 14,371

Composition of Certain Finan_12

Composition of Certain Financial Statement Captions - Summary of Accrued Liabilities (Parenthetical) (Detail) $ in Thousands	Mar. 31, 2019USD ($)CallCenter	Sep. 30, 2018USD ($)
Schedule Of Accrued Liabilities [Line Items]
Accrued liabilities for call center buildouts	$ 3,791	$ 2,700
Other non-current liabilities	8,866	$ 5,289
Faneuil Inc [Member]
Schedule Of Accrued Liabilities [Line Items]
Total liabilities and commitments	6,800
Accrued liabilities for call center buildouts	3,800
Other non-current liabilities	1,500
Total commitments	$ 1,500
Number of new call centers to build out | CallCenter	1

Earnings (Loss) Per Share - Com

Earnings (Loss) Per Share - Computation of Basic and Diluted Earnings (Loss) Per Share of Common Stock (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Earnings Per Share [Abstract]
Net income (loss)	$ 423	$ (340)	$ 1,134	$ (5,658)
Weighted average shares of common stock outstanding – basic	38,026	37,911	38,037	37,742
Potentially dilutive effect of options to purchase common stock	50		50
Weighted average shares of common stock outstanding - diluted	38,076	37,911	38,087	37,742
Basic earnings (loss) per share of common stock	$ 0.01	$ (0.01)	$ 0.03	$ (0.15)
Diluted earnings (loss) per share of common stock	$ 0.01	$ (0.01)	$ 0.03	$ (0.15)

Earnings (Loss) Per Share - Add

Earnings (Loss) Per Share - Additional Information (Detail) - shares shares in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	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 (loss) per share	1.5	1.6	1.5	1.6

Debt - Additional Information (

Debt - Additional Information (Detail)	Dec. 31, 2018USD ($)	Nov. 28, 2018USD ($)CustomerTradingDayshares	Dec. 31, 2018USD ($)	Mar. 31, 2019USD ($)	Dec. 31, 2018USD ($)	Mar. 31, 2018USD ($)	Dec. 31, 2017USD ($)	Mar. 31, 2019USD ($)	Mar. 31, 2018USD ($)	Aug. 31, 2015USD ($)
Debt Instrument [Line Items]
Selling, general and administrative expense				$ 17,007,000		$ 18,822,000		$ 34,473,000	$ 38,360,000
Debt instrument, description								Pursuant to the second amendment to the Financing Agreement, ALJ is required to pay a fee in each of three consecutive annual periods commencing May 27, 2018, 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.
Equipment Financing [Member] | Phoenix [Member]
Debt Instrument [Line Items]
Agreement term			36 months
Frequency of periodic payment								monthly
Interest rate fixed percentage	4.94%		4.94%		4.94%
Equipment Financing [Member] | Phoenix [Member] | Heidelberg Press [Member]
Debt Instrument [Line Items]
Payments to acquire equipment			$ 4,100,000
Cerberus Term Loan [Member] | 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					$ 300,000		$ 4,100,000
Maximum payments against loan with no penalty								$ 7,000,000
Mandatory payment								400,000
Payment of debt instrument legal and other fees								600,000	300,000
Deferred loan costs				400,000		$ 300,000		400,000	$ 300,000
Selling, general and administrative expense								$ 200,000
Cerberus Term Loan [Member] | Term Loan [Member] | Term Loan Repayment First Year Anniversary [Member]
Debt Instrument [Line Items]
Prepayment penalty percentage								3.00%
Cerberus Term Loan [Member] | Term Loan [Member] | Term Loan Repayment Second Year Anniversary [Member]
Debt Instrument [Line Items]
Prepayment penalty percentage								2.00%
Cerberus Term Loan [Member] | Term Loan [Member] | Term Loan Repayment Third Year Anniversary [Member]
Debt Instrument [Line Items]
Prepayment penalty percentage								1.00%
Fourth Amendment [Member]
Debt Instrument [Line Items]
Maximum amount of Equity or subordinated debt financing		$ 5,000,000
Fourth Amendment [Member] | Financing Agreement [Member]
Debt Instrument [Line Items]
Term loan repayment	$ 2,100,000	$ 2,300,000
Number of new customer call centers | Customer		3
Debt instrument, covenant description								an easing of the fixed charge coverage ratio financial covenant from 1.25:1.00 to (a) 1.05:1.00 for each quarter beginning with the quarter ended December 31, 2018 through the quarter ending September 30, 2020 and (b) 1.10:1.00 for the quarter beginning with the quarter ending December 31, 2020 and for each quarter thereafter; anda stepdown in the leverage ratio financial covenant from (a) 3.50:1.00 for each quarter beginning with the quarter ended December 31, 2018 through the quarter ending September 30, 2020, to (b) 3.25:1.00 for each quarter beginning with the quarter ending December 31, 2020 through the quarter ending September 30, 2021, (c) 3.00:1.00 for each quarter beginning with the quarter ending December 31, 2021 through the quarter ending September 30, 2022 and (d) 2.75:1.00 for each quarter beginning with the quarter ending December 31, 2022 and for each quarter thereafter.
Fixed charge coverage ratio		1.25
Fixed charge coverage ratio, December 31, 2018 through September 30, 2020		1.05
Fixed charge coverage ratio, thereafter		1.10
Leverage ratio, December 31, 2018 through September 30, 2020		3.50
Leverage ratio, December 31, 2020 through September 30, 2021		3.25
Leverage ratio, December 31, 2011 through September 30, 2022		3
Leverage ratio, December 31, 2022 and thereafter		2.75
Fourth Amendment [Member] | Term Loan [Member] | Financing Agreement [Member]
Debt Instrument [Line Items]
Proceeds from debt		$ 5,000,000
Cerberus Debt [Member]
Debt Instrument [Line Items]
Unused borrowing capacity				11,900,000				$ 11,900,000
Revolving Credit Facility [Member] | Cerberus/PNC Revolver [Member]
Debt Instrument [Line Items]
Line of credit facility maximum borrowing capacity										$ 30,000,000
Cerberus/PNC Revolver [Member] | Fourth Amendment [Member] | Financing Agreement [Member]
Debt Instrument [Line Items]
Line of credit facility maximum borrowing capacity		30,000,000
Proceeds from debt		5,000,000
Line of credit facility remaining borrowing capacity		$ 25,000,000
Debt instrument maturity date		Dec. 1, 2023
Backstop Letter Agreement [Member] | Fourth Amendment [Member]
Debt Instrument [Line Items]
One time backstop fee		$ 100,000
Warrants expiration period		5 years
Warrant to purchase common stock | shares		1,500,000
Debt instrument, convertible threshold trading days | TradingDay		30
Backstop fee and other fees				100,000				$ 100,000
Backstop Letter Agreement [Member] | Fourth Amendment [Member] | Selling, General and Administrative Expense [Member]
Debt Instrument [Line Items]
Backstop fee and other fees				$ 100,000

Debt - Summary of Financing Agr

Debt - Summary of Financing Agreement and Amendments (Detail) $ in Thousands	6 Months Ended
	Mar. 31, 2019USD ($)
Line of Credit [Member] | Cerberus/PNC Revolver [Member]
Debt Instrument [Line Items]
Use of Proceeds	Working capital
Origination Date	2015-08
Balance	$ 10,500
Minimum [Member] | Line of Credit [Member] | Cerberus/PNC Revolver [Member]
Debt Instrument [Line Items]
Interest Rate	11.00%
Maximum [Member] | Line of Credit [Member] | Cerberus/PNC Revolver [Member]
Debt Instrument [Line Items]
Interest Rate	11.25%
Term Loan [Member]
Debt Instrument [Line Items]
Quarterly Payments	$ 2,050
Balance	$ 85,182
Term Loan [Member] | Financing Agreement [Member] | Phoenix Acquisition [Member]
Debt Instrument [Line Items]
Origination Date	2015-08
Quarterly Payments	$ 1,610
Balance	$ 66,893
Term Loan [Member] | Financing Agreement [Member] | Minimum [Member] | Phoenix Acquisition [Member]
Debt Instrument [Line Items]
Interest Rate	9.00%
Term Loan [Member] | Financing Agreement [Member] | Maximum [Member] | Phoenix Acquisition [Member]
Debt Instrument [Line Items]
Interest Rate	9.28%
Term Loan [Member] | First Amendment [Member] | Color Optics Acquisition [Member]
Debt Instrument [Line Items]
Origination Date	2016-07
Quarterly Payments	$ 175
Balance	$ 7,286
Term Loan [Member] | First Amendment [Member] | Minimum [Member] | Color Optics Acquisition [Member]
Debt Instrument [Line Items]
Interest Rate	9.00%
Term Loan [Member] | First Amendment [Member] | Maximum [Member] | Color Optics Acquisition [Member]
Debt Instrument [Line Items]
Interest Rate	9.28%
Term Loan [Member] | Third Amendment [Member] | Printing Components Business Acquisition [Member]
Debt Instrument [Line Items]
Origination Date	2017-10
Quarterly Payments	$ 151
Balance	$ 6,252
Term Loan [Member] | Third Amendment [Member] | Minimum [Member] | Printing Components Business Acquisition [Member]
Debt Instrument [Line Items]
Interest Rate	9.00%
Term Loan [Member] | Third Amendment [Member] | Maximum [Member] | Printing Components Business Acquisition [Member]
Debt Instrument [Line Items]
Interest Rate	9.28%
Term Loan [Member] | Fourth Amendment [Member]
Debt Instrument [Line Items]
Use of Proceeds	Working capital
Origination Date	2018-11
Quarterly Payments	$ 114
Balance	$ 4,751
Term Loan [Member] | Fourth Amendment [Member] | Minimum [Member]
Debt Instrument [Line Items]
Interest Rate	9.00%
Term Loan [Member] | Fourth Amendment [Member] | Maximum [Member]
Debt Instrument [Line Items]
Interest Rate	9.28%

Debt - Schedule of Estimated Fu

Debt - Schedule of Estimated Future Minimum Principal Payments for Cerberus Debt and Equipment Financing (Detail) $ in Thousands	Mar. 31, 2019USD ($)
Debt Instrument [Line Items]
2020	$ 9,503
2021	9,569
2022	9,272
2023	8,200
2024*	62,882
Total estimated future minimum payments	99,426
Cerberus Debt [Member]
Debt Instrument [Line Items]
2020	8,200
2021	8,200
2022	8,200
2023	8,200
2024*	62,882
Total estimated future minimum payments	95,682
Equipment Financing [Member]
Debt Instrument [Line Items]
2020	1,303
2021	1,369
2022	1,072
Total estimated future minimum payments	$ 3,744

Debt - Schedule of Future Minim

Debt - Schedule of Future Minimum Lease Payments under Non-Cancelable Capital Leases (Detail) - USD ($)	Mar. 31, 2019	Sep. 30, 2018
Capital Leases Future Minimum Payments Due Rolling Maturity [Abstract]
2020	$ 2,679,000
2021	1,931,000
2022	536,000
2023	536,000
2024	435,000
Total minimum required payments	6,117,000
Less: current portion of capital lease obligations	(2,510,000)	$ (2,909,000)
Less: imputed interest	(364,000)
Capital lease obligations, less current portion	$ 3,243,000	$ 4,427,000

Commitments and Contingencies -

Commitments and Contingencies - Schedule of Future Minimum Rental Commitments under Non-cancellable Leases (Detail) $ in Thousands	Mar. 31, 2019USD ($)
Operating Leases Future Minimum Payments Due Rolling Maturity [Abstract]
2020	$ 5,703
2021	4,909
2022	3,589
2023	2,850
2024	2,814
Thereafter	15,414
Total future minimum lease payments	$ 35,279

Commitments and Contingencies_2

Commitments and Contingencies - Additional Information (Detail)	May 15, 2018USD ($)	Jun. 06, 2017USD ($)	Oct. 14, 2016USD ($)	Mar. 31, 2019USD ($)CallCenter	Sep. 22, 2016USD ($)
Selling, General and Administrative Expense [Member]
Loss Contingencies [Line Items]
Non-cash litigation loss	$ (2,900,000)
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	0	$ 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
Litigation settlement, amount of damages awarded	$ 0
Faneuil Inc [Member]
Loss Contingencies [Line Items]
Total commitments				$ 1,500,000
Number of new call centers to build out | CallCenter				1
Letters of Credit [Member]
Loss Contingencies [Line Items]
Line of credit amount outstanding				$ 3,300,000
Surety Bonds [Member]
Loss Contingencies [Line Items]
Estimated maximum guarantee cash payments				26,300,000
Employment Agreements [Member]
Loss Contingencies [Line Items]
Total termination payments related to base salary				$ 1,200,000

Equity - Additional Information

Equity - Additional Information (Detail)	Oct. 02, 2017Stockholder$ / sharesshares	Mar. 31, 2019USD ($)	Mar. 31, 2018USD ($)	Mar. 31, 2019USD ($)shares	Mar. 31, 2018USD ($)$ / sharesshares
Class Of Stock [Line Items]
Disposal of assets and other (gain) loss, net			$ 25,000	$ 223,000	$ 232,000
Total unrecognized compensation cost related to unvested stock options		$ 500,000		$ 500,000
Weighted-average recognition period of unrecognized compensation cost related to unvested stock options				1 year 7 months 6 days
Stock option awards, granted | shares				0	10,000
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 outstanding		100,000		$ 100,000
Stock-based compensation expense		186,000	270,000	371,000	$ 563,000
Common Stock Awards [Member]
Class Of Stock [Line Items]
Stock-based compensation expense		$ 102,000	$ 103,000	$ 203,000	205,000
Maximum [Member]
Class Of Stock [Line Items]
Total estimated fair value of stock options, granted					$ 100,000
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
Faneuil [Member]
Class Of Stock [Line Items]
Number of common stock retired | shares				84,000
Disposal of assets and other (gain) loss, net				$ 100,000
Printing Components Business Acquisition [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 Selling General and Administrative Expenses on Statements of Operations (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 186	$ 270	$ 371	$ 563
Stock Options [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	84	167	168	358
Common Stock Awards [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 102	$ 103	$ 203	$ 205

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	Sep. 27, 2017	Dec. 31, 2023	Dec. 31, 2017	Mar. 31, 2019	Sep. 30, 2018
Income Taxes Disclosure [Line Items]
Federal statutory income tax rate			35.00%	21.00%	28.10%
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]
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] - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018	Sep. 30, 2018
Related Party Transaction [Line Items]
Revenue recognized	$ 100,000	$ 100,000	$ 100,000	$ 200,000
Cost of revenue	$ 100,000	$ 100,000	$ 100,000	$ 200,000
Minimum [Member]
Related Party Transaction [Line Items]
Ownership percentage	5.00%		5.00%
Maximum [Member]
Related Party Transaction [Line Items]
Accounts receivable	$ 100,000		$ 100,000		$ 100,000

Reportable Segments and Geogr_3

Reportable Segments and Geographic Information - Additional Information (Detail)	6 Months Ended
	Mar. 31, 2019Segment
Segment Reporting [Abstract]
Number of reportable segments	3

Reportable Segments and Geogr_4

Reportable Segments and Geographic Information - Summary of Segment Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Segment Reporting Information [Line Items]
Net revenue	$ 87,996	$ 95,105	$ 181,780	$ 190,059
Segment adjusted EBITDA	8,741	7,594	17,347	14,182
Depreciation and amortization	(4,837)	(4,850)	(9,283)	(9,683)
Interest expense	(2,625)	(2,793)	(5,340)	(5,453)
Lease payments in anticipation of facility shutdown	(188)		(374)
Stock-based compensation	(186)	(270)	(371)	(563)
Restructuring expenses	(144)	(430)	(229)	(1,263)
Loan amendment fees	(136)		(337)
Acquisition-related expenses			(12)	(123)
Disposal of assets and other (gain) loss, net		25	223	232
(Provision) benefit for income taxes	(202)	384	(490)	(2,987)
Net income (loss)	423	(340)	1,134	(5,658)
Operating Segments [Member] | Faneuil [Member]
Segment Reporting Information [Line Items]
Net revenue	46,590	47,953	101,792	99,427
Segment adjusted EBITDA	2,793	2,915	7,739	6,625
Operating Segments [Member] | Carpets [Member]
Segment Reporting Information [Line Items]
Net revenue	12,088	18,691	24,450	35,341
Segment adjusted EBITDA	272	(240)	432	(966)
Operating Segments [Member] | Phoenix [Member]
Segment Reporting Information [Line Items]
Net revenue	29,318	28,461	55,538	55,291
Segment adjusted EBITDA	6,335	5,459	10,556	9,619
ALJ [Member]
Segment Reporting Information [Line Items]
Segment adjusted EBITDA	$ (659)	$ (540)	$ (1,380)	$ (1,096)