Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2015 | Dec. 08, 2015 | Mar. 31, 2015 | |
Entity Registrant Name | Natural Grocers by Vitamin Cottage, Inc. | ||
Entity Central Index Key | 1,547,459 | ||
Trading Symbol | ngvc | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding (in shares) | 22,498,336 | ||
Entity Public Float | $ 265,209,539 | ||
Document Type | 10-K | ||
Document Period End Date | Sep. 30, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 2,915 | $ 5,113 |
Accounts receivable, net | 2,576 | 2,146 |
Merchandise inventory | 74,818 | 58,381 |
Prepaid expenses and other current assets | 1,108 | 641 |
Deferred income tax assets | 866 | 832 |
Total current assets | 82,283 | 67,113 |
Property and equipment, net | 145,219 | 120,224 |
Other assets: | ||
Deposits and other assets | 778 | 712 |
Goodwill and other intangible assets, net | 5,623 | 900 |
Deferred financing costs, net | 21 | 36 |
Total other assets | 6,422 | 1,648 |
Total assets | 233,924 | 188,985 |
Current liabilities: | ||
Accounts payable | 49,896 | 33,835 |
Accrued expenses | 19,649 | 15,822 |
Capital and financing lease obligations, current portion | 333 | 229 |
Total current liabilities | 69,878 | 49,886 |
Long-term liabilities: | ||
Capital and financing lease obligations, net of current portion | 27,274 | 21,748 |
Deferred income tax liabilities | 6,073 | $ 5,409 |
Deferred compensation | 314 | |
Deferred rent | 6,922 | $ 5,842 |
Leasehold incentives | 7,975 | 7,246 |
Total long-term liabilities | 48,558 | 40,245 |
Total liabilities | $ 118,436 | $ 90,131 |
Commitments (Notes 11 and 18) | ||
Stockholders’ equity: | ||
Common stock, $0.001 par value. 50,000,000 shares authorized, 22,496,628 and 22,485,488 shares issued and outstanding, respectively | $ 22 | $ 22 |
Additional paid-in capital | 54,982 | 54,552 |
Retained earnings | 60,484 | 44,280 |
Total stockholders’ equity | 115,488 | 98,854 |
Total liabilities and stockholders’ equity | $ 233,924 | $ 188,985 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Sep. 30, 2015 | Sep. 30, 2014 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 22,496,628 | 22,485,488 |
Common stock, shares outstanding (in shares) | 22,496,628 | 22,485,488 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Net sales | $ 624,678 | $ 520,674 | $ 430,655 |
Cost of goods sold and occupancy costs | 442,582 | 369,172 | 304,922 |
Gross profit | 182,096 | 151,502 | 125,733 |
Store expenses | 132,131 | 108,657 | 89,935 |
Administrative expenses | 17,514 | 14,823 | 13,479 |
Pre-opening and relocation expenses | 3,822 | 3,774 | 3,231 |
Operating income | $ 28,629 | 24,248 | 19,088 |
Other income (expense): | |||
Dividends and interest income | 2 | 9 | |
Interest expense | $ (2,993) | (2,496) | (2,166) |
Total other expense, net | (2,993) | (2,494) | (2,157) |
Income before income taxes | 25,636 | 21,754 | 16,931 |
Provision for income taxes | (9,432) | (8,281) | (6,379) |
Net income | $ 16,204 | $ 13,473 | $ 10,552 |
Net income per share of common stock: | |||
Basic (in dollars per share) | $ 0.72 | $ 0.60 | $ 0.47 |
Diluted (in dollars per share) | $ 0.72 | $ 0.60 | $ 0.47 |
Weighted average number of shares of common stock outstanding: | |||
Basic (in shares) | 22,490,260 | 22,466,432 | 22,399,346 |
Diluted (in shares) | 22,500,833 | 22,479,835 | 22,441,382 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Net income | $ 16,204 | $ 13,473 | $ 10,552 |
Other comprehensive income, net of tax: | |||
Unrealized gain on available-for-sale securities, net of tax benefit | 4 | ||
Other comprehensive income | 4 | ||
Comprehensive income | $ 16,204 | $ 13,473 | $ 10,556 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Operating activities: | |||
Net income | $ 16,204 | $ 13,473 | $ 10,552 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 21,337 | 17,212 | 13,496 |
Loss on disposal of property and equipment | 56 | 1 | 43 |
Share-based compensation | $ 573 | 532 | 602 |
Excess tax benefit from share-based compensation | (399) | (592) | |
Deferred income tax expense (benefit) | $ 630 | (1,186) | 2,452 |
Amortization of Financing Costs | $ 15 | 19 | 47 |
Interest accrued on investments and amortization of premium | $ 9 | 27 | |
Other amortization | 26 | ||
Changes in operating assets and liabilities | |||
Accounts receivable, net | $ (430) | $ 255 | (546) |
Income tax receivable | 612 | (601) | |
Merchandise inventory | $ (15,711) | (12,909) | (7,928) |
Prepaid expenses and other assets | (533) | (665) | 105 |
Accounts payable | 12,891 | 5,202 | 4,480 |
Accrued expenses | 3,848 | $ 6,952 | $ 2,283 |
Deferred compensation | 314 | ||
Deferred rent and leasehold incentives | 1,809 | $ 2,641 | $ 1,271 |
Net cash provided by operating activities | 41,003 | 31,749 | 25,717 |
Investing activities: | |||
Acquisition of property and equipment | (36,750) | $ (36,512) | (39,708) |
Proceeds from sale of property and equipment | 13 | 5,005 | |
Payment for acquisition | $ (5,601) | ||
Purchase of available-for-sale securities | (521) | ||
Proceeds from sale of available-for-sale securities | 90 | ||
Proceeds from maturity of available-for-sale securities | $ 1,140 | 1,010 | |
Decrease (increase) in restricted cash | 500 | (500) | |
Net cash used in investing activities | $ (42,338) | (34,872) | (34,624) |
Financing activities: | |||
Borrowings under credit facility | 202,878 | 46,440 | 81 |
Repayments under credit facility | $ (202,878) | $ (46,440) | (81) |
Repayments under notes payable, related party | (282) | ||
Capital and financing lease obligations payments | $ (247) | $ (182) | $ (121) |
Contingent consideration payments for acquisition | $ (514) | ||
Excess tax benefit from share-based compensation | $ 399 | $ 592 | |
Equity issuance costs | (268) | ||
Payments on withholding tax for restricted stock unit vesting | $ (102) | $ (83) | (155) |
Loan fees paid | (30) | (18) | |
Net cash (used in) provided by financing activities | $ (863) | 104 | (252) |
Net decrease in cash and cash equivalents | (2,198) | (3,019) | (9,159) |
Cash and cash equivalents, beginning of year | 5,113 | 8,132 | 17,291 |
Cash and cash equivalents, end of year | 2,915 | 5,113 | 8,132 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 63 | 16 | 7 |
Cash paid for interest on capital and financing lease obligations, net of capitalized interest of $309, $364 and $0, respectively | 2,809 | 2,423 | 2,036 |
Income taxes paid | 8,194 | 3,762 | 3,916 |
Supplemental disclosures of non-cash investing and financing activities: | |||
Acquisition of property and equipment not yet paid | 6,429 | 3,260 | 3,545 |
Property acquired through capital and financing lease obligations | $ 5,772 | $ 2,300 | $ 14,372 |
Consolidated Statements of Cas7
Consolidated Statements of Cash Flows (Parentheticals) - USD ($) | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Capitalized interest | $ 309 | $ 364 | $ 0 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | AOCI Attributable to Parent [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balances (in shares) at Sep. 30, 2012 | 22,372,184 | ||||
Balances at Sep. 30, 2012 | $ 22 | $ (4) | $ 52,676 | $ 20,255 | $ 72,949 |
Net income | $ 10,552 | 10,552 | |||
Unrealized gain on available-for-sale securities, net of tax benefit | $ 4 | 4 | |||
Issuance costs | $ (12) | (12) | |||
Share-based compensation (in shares) | 69,069 | ||||
Share-based compensation | 448 | 448 | |||
Income Tax Effect from Share-based Compensation | 592 | 592 | |||
Balances (in shares) at Sep. 30, 2013 | 22,441,253 | ||||
Balances at Sep. 30, 2013 | $ 22 | $ 53,704 | $ 30,807 | 84,533 | |
Net income | $ 13,473 | $ 13,473 | |||
Unrealized gain on available-for-sale securities, net of tax benefit | |||||
Share-based compensation (in shares) | 44,235 | ||||
Share-based compensation | $ 449 | $ 449 | |||
Income Tax Effect from Share-based Compensation | 399 | $ 399 | |||
Balances (in shares) at Sep. 30, 2014 | 22,485,488 | 22,485,488 | |||
Balances at Sep. 30, 2014 | $ 22 | $ 54,552 | $ 44,280 | $ 98,854 | |
Net income | $ 16,204 | $ 16,204 | |||
Unrealized gain on available-for-sale securities, net of tax benefit | |||||
Share-based compensation (in shares) | 11,140 | ||||
Share-based compensation | $ 471 | $ 471 | |||
Income Tax Effect from Share-based Compensation | (41) | $ (41) | |||
Balances (in shares) at Sep. 30, 2015 | 22,496,628 | 22,496,628 | |||
Balances at Sep. 30, 2015 | $ 22 | $ 54,982 | $ 60,484 | $ 115,488 |
Note 1 - Organization
Note 1 - Organization | 12 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
Nature of Operations [Text Block] | 1. Organization Nature of Business Natural Grocers by Vitamin Cottage, Inc. (Natural Grocers or the holding company) and its consolidated subsidiaries (collectively, the Company) operate retail stores that specialize in natural and organic groceries and dietary supplements. The Company operates its retail stores under its trademark Natural Grocers by Vitamin Cottage ® with 103 stores as of September 30, 2015, including 34 stores in Colorado, 14 in Texas, eight each in Oregon and Kansas, seven in Oklahoma, six in Arizona, five in New Mexico, four in Montana, three each in Idaho and Nebraska, two each in Missouri, Utah and Wyoming, and one each in Arkansas, Minnesota, Nevada, North Dakota and Washington. The Company also has a bulk food repackaging facility and distribution center in Colorado. The Company had 87 and 72 stores as of September 30, 2014 and 2013, respectively. |
Note 2 - Basis of Presentation
Note 2 - Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | 2. Basis of Presentation and Summary of Significant Accounting Policies Principles of Consolidation The accompanying consolidated financial statements include all the accounts of the holding company’s wholly owned subsidiaries, Vitamin Cottage Natural Food Markets, Inc. (the operating company), Vitamin Cottage Two Ltd. Liability Company and Natural Systems, LLC. All significant intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management reviews its estimates on an ongoing basis, including those related to allowances for self-insurance reserves, valuation of inventories, useful lives of property and equipment for depreciation and amortization, deferred tax assets and liabilities and litigation based on currently available information. Changes in facts and circumstances may result in revised estimates and actual results could differ from those estimates. Segment Information The Company has one reporting segment, natural and organic retail stores. Cash and Cash Equivalents Cash and cash equivalents include currency on hand, demand deposits with banks, money market funds and credit and debit card transactions which typically settle within three business days. The Company considers all highly liquid investments with a remaining maturity of 90 days or less when acquired to be cash equivalents. Investments Available-for-sale investments are recorded at fair value. Unrealized holding gains and losses on available-for-sale investments are excluded from earnings and are reported as a component of other comprehensive income until realized. A decline in the fair value of any available-for-sale security below cost that is deemed to be other-than-temporary for a period greater than two fiscal quarters results in a reduction of the fair value. Declines in fair value deemed to be other-than-temporary are charged against net earnings. Investments that have an original maturity date of less than one year are classified as short-term assets, and investments that have an original maturity date of greater than one year are classified as long-term assets. Accounts Receivable Accounts receivable consists primarily of receivables from vendors for certain promotional programs, newsletter advertising and other miscellaneous receivables and are presented net of any allowances for doubtful accounts. Vendor receivable balances are generally presented on a gross basis separate from any related payable due. Allowance for doubtful accounts is calculated based on historical experience and application of the specific identification method. Allowance for doubtful accounts totaled less than $0.1 million at each of September 30, 2015 and 2014. Concentration of Credit Risk Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of investments in cash and cash equivalents and accounts receivable. The Company’s cash and cash equivalent account balances, which are held in major financial institutions, exceeded the Federal Deposit Insurance Corporation’s federally insured limits by approximately $1.1 million as of September 30, 2015. Vendor Concentration For the years ended September 30, 2015, 2014 and 2013, purchases from the Company’s largest vendor and one of its subsidiaries represented approximately 57%, 56% and 55%, respectively, of all product purchases made during such periods. However, the Company believes that, if necessary, alternate vendors could supply similar products in adequate quantities to avoid material disruptions to operations. Merchandise Inventory Merchandise inventory consists of goods held for sale. The cost of inventory includes certain costs associated with the preparation of inventory for sale, including inventory overhead costs. Merchandise inventory is carried at the lower of cost or market value. Cost is determined using the weighted average cost method. Property and Equipment Property and equipment is stated at historical cost less accumulated depreciation. Depreciation is provided using the straight-line method over the following estimated useful lives of the related assets. Useful lives (in years) Land improvements 5 – 15 Buildings 40 Leasehold and building improvements 1 – 25 Capitalized real estate leases for build-to-suit stores 40 Capitalized real estate leases 15 Fixtures and equipment 5 – 7 Computer hardware and software 3 – 5 For land improvements and leasehold and building improvements, depreciation is recorded over the shorter of the assets’ useful lives or the lease terms. Maintenance, repairs and renewals that neither add to the value of the property nor appreciably prolong its life are charged to expense as incurred. Gains and losses on disposition of property and equipment are included in store expenses in the year of disposition, and primarily relate to store relocations. The Company capitalizes interest, if applicable, as part of the historical costs of buildings and leasehold and building improvements. The Company capitalizes certain costs incurred with developing or obtaining internal-use software. Capitalized software costs are included in property and equipment in the consolidated balance sheets and are amortized over the estimated useful lives of the software. Software costs that do not meet capitalization criteria are expensed as incurred. Fair Value of Financial Instruments The Company records its financial assets and liabilities at fair value in accordance with the framework for measuring fair value in authoritative guidance. The framework establishes a fair value hierarchy that distinguishes between assumptions based on market data (observable inputs) and the Company’s own assumptions (unobservable inputs). The three levels are defined as follows: Level 1 — Inputs are unadjusted quoted prices for identical assets or liabilities in active markets; Level 2 — Inputs include quoted prices for similar assets or liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument; and Level 3 — Inputs are unobservable and are considered significant to the fair value measurement. Transfers between levels of the fair value hierarchy are deemed to have occurred as of the date of the event or transfer. Goodwill and Intangible Assets Intangible assets primarily consist of goodwill, trademarks, favorable operating leases and covenants-not-to-compete. Goodwill and the Vitamin Cottage The Company’s annual impairment testing of goodwill is performed as of September 30. In performing the Company’s analysis of goodwill, the Company first evaluates qualitative factors, including relevant events and circumstances, to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, the two-step impairment test is not necessary. If it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the Company performs the two-step impairment test. Under the first step, the fair value of the reporting unit is compared with its carrying value (including goodwill). If the fair value of the reporting unit is less than its carrying value, an indication of goodwill impairment exists for the reporting unit and the Company must perform step two of the impairment test (measurement). Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of that goodwill. To date, the Company has recorded no impairment charges related to goodwill. Impairment of Finite-Lived Intangible and Long-Lived Assets Long-lived assets, such as property and equipment and purchased intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company aggregates long-lived assets at the store level, which the Company considers to be the lowest level in the organization for which independent identifiable cash flows are available. If circumstances require a long-lived asset or asset group to be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that store to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, impairment is recognized to the extent that the carrying value exceeds its fair value. The Company considers factors such as historic and forecasted operating results, trends and future prospects, current market value, significant industry trends and other economic and regulatory factors in performing these analyses. To date, the Company has recorded no impairment charges related to finite-lived intangible or long-lived assets. Deferred Financing Costs Certain costs incurred with borrowings or establishment of credit facilities are deferred. These costs are amortized over the life of the borrowing or the life of the credit facility using the straight-line methods. Leases The Company leases retail stores, a bulk food repackaging facility and distribution center and administrative offices under long-term operating or capital and financing leases. These leases include scheduled increases in minimum rents and renewal provisions at the option of the Company. The lease term for accounting purposes commences with the date the Company takes possession of the space and ends on the later of the primary lease term or the expiration of any renewal periods that are deemed to be reasonably assured at the inception of the lease. Operating leases The Company accounts for operating leases with rent holidays and escalating payment terms by recognizing the associated expense on a straight-line basis over the lease term, and the difference between the average rental amount charged to expense and amounts payable under the leases are included in deferred rent. For certain leases, the Company has also received cash from landlords to compensate for costs incurred by the Company in making the store locations ready for operation (leasehold incentives or tenant allowances). Leasehold incentives received from a landlord are deferred and recognized on a straight-line basis as a reduction to rent expense over the lease term. Capital financing leases From time to time, the Company enters into leases with developers for build-to-suit store locations. Upon lease execution, the Company analyzes its involvement during the construction period. Capital leases Occasionally, the Company enters into leases that are deemed to be capital leases. For these leases, the Company capitalizes the lower of the present value of the minimum lease payments or the fair value of the leased asset at inception and records a corresponding capital lease obligation. The Company does not record rent expense for the rental payments under capital leases, but rather payments under the capital lease obligations are recognized as a reduction of the capital lease obligation and as interest expense. The capital lease asset is depreciated on a straight-line basis over the term of the related lease. Self-Insurance The Company is self-insured for certain losses relating to employee medical and dental benefits and workers compensation. Stop-loss coverage has been purchased to limit exposure to any significant level of claims. Self-insured losses are accrued based upon the Company’s estimates of the aggregate claims incurred but not reported using historical experience. The estimated accruals for these liabilities could be significantly affected if future occurrences and claims differ from historical trends. Revenue Recognition Revenue is recognized at the point of sale, net of in-house coupons, discounts and returns. Sales taxes are not included in sales. The Company charges sales tax on all taxable customer purchases and remits these taxes monthly to the appropriate taxing jurisdiction. The Company records a deferred revenue liability within accrued expenses when it sells the Company’s gift cards or issues gift cards for award or promotional purposes, and records a sale when a customer redeems the gift card. Generally, the gift cards do not expire. The Company currently does not record breakage for unused portions of gift cards. Cost of Goods Sold and Occupancy Costs Cost of goods sold and occupancy costs includes the cost of inventory sold during the period net of discounts and allowances, as well as, distribution, shipping and handling costs, store occupancy costs and costs of the bulk food repackaging facility and distribution center. The amount shown is net of various rebates from third-party vendors in the form of quantity discounts and payments. Vendor consideration associated with product discounts is recorded as either a reduction of merchandise inventory or cost of goods sold. Store occupancy costs include rent, common area maintenance and real estate taxes. Store occupancy costs do not include any rent amounts for the store leases classified as capital and financing lease obligations. Store Expenses Store expenses consist of store-level expenses such as salaries, benefits and share-based compensation, supplies, utilities, depreciation, gain or loss on disposal of assets and other related costs associated with operations support. Store expenses also include purchasing support services and advertising and marketing costs. Administrative Expenses Administrative expenses consist of salaries, benefits and share-based compensation, occupancy costs, depreciation, office supplies, hardware and software expenses, professional services expenses and other general and administrative expenses. Pre-Opening and Relocation Expenses Costs associated with the opening of new stores or relocating existing stores are expensed as incurred. Advertising and Marketing Advertising and marketing costs are expensed as incurred and are included in store expenses and pre-opening and relocation expenses in the consolidated statements of income. Total advertising and marketing expenses for the years ended September 30, 2015, 2014 and 2013 were approximately $9.3 million, $7.8 million and $6.2 million, respectively, net of vendor reimbursements received for newsletter advertising. Advertising expense reimbursements received from vendors totaled approximately $2.5 million, $1.9 million and $1.5 million for the years ended September 30, 2015, 2014 and 2013, respectively. S hare - B ased C ompensation The Company adopted the 2012 Omnibus Incentive Plan in connection with the IPO on July 25, 2012. Restricted common stock units are granted at the market price of the Company’s common stock on the date of grant and expensed over the applicable vesting period. The excess tax benefits for recognized compensation costs are reported as a credit to additional-paid-in capital and as operating cash outflows when such excess tax benefits are realized by a reduction to current taxes payable. Income Taxes The Company accounts for income taxes using the asset and liability method. This method requires recognition of deferred tax assets and liabilities for expected future tax consequences of temporary differences that currently exist between the tax basis and financial reporting basis of the Company’s assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates in the respective jurisdictions in which the Company operates. The Company considers the need to establish valuation allowances to reduce deferred income tax assets to the amounts the Company believes are more likely than not to be recovered. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. Although the Company believes that its estimates are reasonable, actual results could differ from these estimates. In addition, the Company is subject to periodic audits and examinations by the Internal Revenue Service (IRS) and other state and local taxing authorities. Any interest or penalties incurred related to income taxes are expensed as incurred and treated as permanent differences for tax purposes. Recent Accounting Pronouncements In November 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2015-17 “Income Taxes” Topic 740, “Income Taxes.” (ASU 2015-17). ASU 2015-17 addresses the balance sheet classification of deferred taxes. Current GAAP requires an entity to separate deferred income tax liabilities and assets into current and noncurrent amounts in a classified statement of financial position. The amendments in ASU 2015-17 require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. ASU 2015-17 will be effective for financial statements issued for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years. The guidance will be effective for the Company’s first quarter of the fiscal year ending September 30, 2018. Earlier application is permitted for all entities as of the beginning of an interim or annual reporting period. The Company is currently evaluating the impact that the adoption of ASU 2015-17 will have on its consolidated financial statements. In September 2015, the FASB issued Accounting Standards Update 2015-16 “Simplifying the Accounting for Measurement-Period Adjustments” Topic 805, “Business Combinations” (ASU 2015-16). The amendments in ASU 2015-16 require that an acquirer recognize adjustments to provisional amounts identified during the measurement period in the reporting period in which the adjustments are determined and eliminates the requirement to retrospectively revise prior periods. Additionally, an acquirer should record in the same period the effects on earnings of any changes in the provisional accounts, calculated as if the accounting had been completed at the acquisition date. The amendments should be applied on a prospective basis. ASU 2015-16 is effective for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years. The guidance in ASU 2015-16 will be effective for the Company’s first quarter of the fiscal year ending September 30, 2017. In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory,” Topic 330, “Inventory” (ASU 2015-11). The amendments in ASU 2015-11, which apply to inventory that is measured using any method other than the last-in, first-out (LIFO) or retail inventory method, require that entities measure inventory at the lower of cost and net realizable value. The amendments in ASU 2015-11 should be applied on a prospective basis. ASU 2015-11 is effective for fiscal years beginning after December 15, 2016 and interim periods within those years. The provisions of ASU 2015-11 are effective for the Company’s first quarter of the fiscal year ending September 30, 2018. The Company is currently evaluating the impact that the adoption of ASU 2015-11 will have on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-05, “Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement,” Subtopic 350-40, “Intangibles-Goodwill and Other – Internal-Use Software” (ASU 2015-05). ASU 2015-05 provides guidance as to whether a cloud computing arrangement (such as software as a service, platform as a service, infrastructure as a service, and other similar hosting arrangements) includes a software license and, based on that determination, how to account for such arrangements. The amendments in ASU 2015-05 may be applied on either a prospective or retrospective basis and early adoption is permitted. ASU 2015-05 is effective for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years. The provisions of ASU 2015-05 are effective for the Company’s first quarter of the fiscal year ending September 30, 2017. The Company is currently evaluating the impact that the adoption of ASU 2015-05 will have on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs” Topic 835, “Interest” (ASU 2015-03). ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. In August 2015, the FASB issued ASU 2015-15, “Interest – Imputation of Interest,” Subtopic 835-30, “Interest” (ASU 2015-15). The guidance in ASU 2015-03 did not address the presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements and ASU 2015-15 was issued to clarify that the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangements. The amendments in ASU 2015-03 should be applied on a retrospective basis and early adoption is permitted. ASU 2015-03 is effective for fiscal years beginning after December 15, 2015 , and interim periods within those fiscal years. The guidance in ASU 2015-03 will be effective for the Company in the first quarter of the fiscal year ending September 30, 2017. The Company is currently evaluating the impact that the adoption of ASU 2015-03 will have on its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers” Topic 606, “Revenue from Contracts with Customers” (ASU 2014-09). ASU 2014-09 provides guidance for revenue recognition and will replace most existing revenue recognition guidance in GAAP when it becomes effective. ASU 2014-09’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled for the transfer of those goods or services. ASU 2014-09 permits the use of either the retrospective or cumulative effect transition method. In July 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers – Deferral of the Effective Date.” The FASB approved the deferral of ASU 2014-09, by extending the new revenue recognition standard’s mandatory effective date by one year and permitting public companies to apply the new revenue standard to annual reporting periods beginning after December 15, 2017. However, earlier application is permitted only as of annual reporting periods beginning after December 15, 2016. The guidance in ASU 2014-09 will be effective for the Company in the first quarter of the fiscal year ending September 30, 2019. The Company has not yet selected a transition method and is currently in the process of evaluating the impact of the adoption of ASU 2014-09 on the Company’s consolidated financial statements and related disclosures. |
Note 3 - Earnings Per Share
Note 3 - Earnings Per Share | 12 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 3. Earnings Per Share Basic earnings per share excludes dilution and is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share reflects the potential dilution that could occur if the Company’s granted but unvested restricted stock units were to vest, resulting in the issuance of common stock that would then share in the earnings of the Company. Presented below is basic and diluted earnings per share for the years ended September 30, 2015, 2014 and 2013, dollars in thousands, except per share data: Year ended September 30, 2015 2014 2013 Net income $ 16,204 13,473 10,552 Weighted average number of shares of common stock outstanding 22,490,260 22,466,432 22,399,346 Effect of dilutive securities 10,573 13,403 42,036 Weighted average number of shares of common stock outstanding including the effect of dilutive securities 22,500,833 22,479,835 22,441,382 Basic earnings per share $ 0.72 0.60 0.47 Diluted earnings per share $ 0.72 0.60 0.47 There were 120,674, 3,558 and 50,320 non-vested restricted stock units (RSUs) for the years ended September 30, 2015, 2014 and 2013, respectively, excluded from the calculation as they are antidilutive. The Company did not declare or pay any dividends in the years ended September 30, 2015, 2014 or 2013. As of September 30, 2015, the Company had 50,000,000 shares of common stock authorized, of which 22,496,628 shares were issued and outstanding, as well as 10,000,000 shares of preferred common stock authorized, of which none was issued and outstanding. |
Note 4 - Investments
Note 4 - Investments | 12 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
Summary of Investment Holdings, Schedule of Investments [Text Block] | 4. Investments The Company had no investments as of September 30, 2015 or 2014. During the years ended September 30, 2014 and 2013, the Company recorded insignificant amounts of interest income. |
Note 5 - Fair Value Measurement
Note 5 - Fair Value Measurements | 12 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 5. Fair Value Measurements The Company records its financial assets and liabilities at fair value in accordance with the framework for measuring fair value. The framework establishes a fair value hierarchy that distinguishes between assumptions based on market data (observable inputs) and market participant’s assumptions (unobservable inputs). Non-financial assets, such as goodwill and long-lived assets, are accounted for at fair value on a non-recurring basis. These items are tested for impairment on the occurrence of a triggering event or in the case of goodwill, at least on an annual basis. As of September 30, 2015 and 2014, the Company did not have any financial assets or liabilities that were subject to fair value measurements. |
Note 6 - Property and Equipment
Note 6 - Property and Equipment | 12 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 6. Property and Equipment The Company had the following property and equipment balances as of September 30, 2015 and 2014, dollars in thousands: Useful lives As of September 30, (in years) 2015 2014 Construction in process n/a $ 10,150 6,867 Capitalized real estate leases for build-to-suit stores, including unamortized land of $617 and $617, respectively 40 24,774 17,107 Capitalized real estate leases 15 4,866 4,866 Land n/a 192 192 Buildings 40 4,980 3,985 Land improvements 5 - 15 1,015 1,000 Leasehold and building improvements 1 - 25 91,865 74,691 Fixtures and equipment 5 - 7 83,932 69,894 Computer hardware and software 3 - 5 13,834 10,740 235,608 189,342 Less accumulated depreciation and amortization (90,389 ) (69,118 ) Property and equipment, net $ 145,219 120,224 As of September 30, 2015 and 2014, construction in process included $0 and approximately $2.3 million, respectively, related to construction costs for build-to-suit leases in process for which the Company was deemed the owner during the construction period. As of September 30, 2015 and 2014, construction in process included $0.9 million and $0, respectively, for capital real estate leases. Capitalized costs for computer software development were $0.2 million and $0.1 million for the years ended September 30, 2015 and 2014, respectively, primarily due to capitalization of internal staff compensation. Total costs capitalized for qualifying construction projects on leasehold and building improvements and fixtures and equipment included approximately $0.6 million and $0.5 million, for the years ended September 30, 2015 and 2014, respectively, related to internal staff compensation. Interest costs of approximately $0.3 million and $0.4 million were capitalized for the years ended September 30, 2015 and 2014, respectively; no amounts of interest were capitalized for the year ended September 30, 2013. Depreciation expense related to capitalized internal staff compensation was approximately $0.4 million, $0.3 million and $0.3 million for the years ended September 30, 2015, 2014, and 2013, respectively. Depreciation and amortization expense for the years ended September 30, 2015, 2014 and 2013 is summarized as follows, dollars in thousands: Year ended September 30, 2015 2014 2013 Depreciation and amortization expense included in cost of goods sold and occupancy costs $ 796 770 709 Depreciation and amortization expense included in store expenses 19,635 15,861 12,365 Depreciation and amortization expense included in administrative expenses 906 581 422 Total depreciation and amortization expense $ 21,337 17,212 13,496 |
Note 7 - Goodwill and Other Int
Note 7 - Goodwill and Other Intangible Assets | 12 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 7. Goodwill and Other Intangible Assets Goodwill and other intangible assets as of September 30, 2015 and 2014, are summarized as follows, dollars in thousands: Useful lives As of September 30, (in years) 201 5 201 4 Amortizable intangible assets: Covenants-not-to-compete 2 - 5 $ 353 293 Favorable operating lease 5 339 339 Other intangibles 0.5 - 1 27 22 Amortized intangible assets 719 654 Less accumulated amortization (683 ) (654 ) Amortized intangible assets, net 36 — Trademark Indefinite 389 389 Total other intangibles, net 425 389 Goodwill Indefinite 5,198 511 Total goodwill and other intangibles, net $ 5,623 900 Amortization expense was less than $0.1 million, $0 and less than $0.1 million for the years ended September 30, 2015, 2014 and 2013, respectively. The aggregate estimated amortization expense for the years ending September 30, 2016 and 2017 is less than $0.1 million. There is no estimated amortization expense for the years ending September 30, 2018, 2019 and 2020. The increase in goodwill and intangible assets in the year ended September 30, 2015 was due to the Store Acquisition described in Note 17. |
Note 8 - Accrued Expenses
Note 8 - Accrued Expenses | 12 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 8. Accrued Expenses The composition of accrued expenses as of September 30, 2015 and 2014, is summarized as follows, dollars in thousands: As of September 30, 201 5 201 4 Payroll and employee-related expenses $ 7,795 5,886 Accrued income taxes payable 5,540 4,868 Accrued property, sales and use tax payable 4,365 3,409 Accrued marketing expenses 532 421 Deferred revenue related to gift card sales 864 725 Other 553 513 Total accrued expenses $ 19,649 15,822 |
Note 9 - Deferred Financing Cos
Note 9 - Deferred Financing Costs | 12 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block] | 9. Deferred Financing Costs The Company has capitalized costs incurred in securing its Credit Facility (see Note 10). Deferred financing costs, net of accumulated amortization were less than $0.1 million as of September 30, 2015 and 2014. Accumulated amortization was approximately $0.9 million as of both September 30, 2015 and 2014, respectively. Total amortization expense for deferred financing costs was less than $0.1 million for each of the years ended September 30, 2015, 2014 and 2013. |
Note 10 - Long-Term Debt
Note 10 - Long-Term Debt | 12 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
Debt and Capital Leases Disclosures [Text Block] | 10. Long-Term Debt Credit Facility The Company is party to a credit agreement (the Credit Facility). The operating company is the borrower under the Credit Facility, and its obligations under the Credit Facility are guaranteed by the holding company. The Credit Facility is secured by a lien on substantially all of the Company’s assets. The Credit Facility requires compliance with certain operational and financial covenants including a leverage ratio and fixed charge coverage ratio. The Credit Facility also contains certain other limitations on the Company’s ability to incur additional debt, guarantee other obligations, grant liens on assets and make investments or acquisitions as defined in the Credit Facility. Additionally, the Credit Facility prohibits the payment of cash dividends to the holding company from the operating company, without the administrative agent’s consent except when no default or event of default exists. If no default or event of default exists dividends are allowed for various audit, accounting, tax, securities, indemnification, reimbursement, insurance and other reasonable expenses in the ordinary course of business. The Company does not expect such restrictions to impact its ability to meet cash obligations. The terms and conditions of the Credit Facility and associated documents are customary and include, among other things, guarantees, pledges and subordinations. At September 30, 2015 and 2014, the Company was in compliance with the debt covenants. On December 12, 2013, the Company amended and restated its $15.0 million credit agreement, as a result of which, among other things: (i) the maturity date of the Credit Facility was extended by three years to January 31, 2017; (ii) the Company has the right to request the issuance of letters of credit under the Credit Facility of up to $3.0 million; (iii) the Company is allowed to increase the amount available under the revolving credit facility, by an additional amount that may not exceed $10.0 million, by obtaining an additional commitment or commitments; (iv) a requirement for a consolidated earnings before interest, taxes, depreciation and amortization to revenue ratio was eliminated; and (v) the unused commitment fee was changed from 0.20% to amounts ranging from 0.15% to 0.35% based on certain conditions. The Company may borrow, prepay and re-borrow amounts under the Credit Facility at any time prior to the maturity date. On November 17, 2015, as provided for in the Credit Facility, the Company obtained a commitment to increase the amount available for borrowing under the Credit Facility from $15.0 million to $25.0 million. The Company had no amounts outstanding on its credit agreement as of September 30, 2015 and 2014. During the years ended September 30, 2015 and 2014, the Company made and repaid borrowings under the credit agreement. As of September 30, 2015, the Company had undrawn, issued and outstanding letters of credit of $1.0 million which were reserved against the amount available for borrowing under the terms of the credit agreement. As of each of September 30, 2015 and 2014, there was $14.0 million available under the then-existing $15.0 million credit agreement. For floating rate borrowings under the Credit Facility, interest is determined by the lender’s administrative agent and is stated at the prime rate less the lender spread, subject to the Company meeting certain financial measures. For fixed rate borrowings under the Credit Facility, interest is determined by quoted LIBOR rates for the interest period plus the lender spread, subject to the Company meeting certain financial measures. Capital and Financing Lease Obligation s The Company had 13 and ten leases as of September 30, 2015 and 2014, respectively, that are included in capital and financing lease obligations (see Notes 2 and 11). The Company does not record rent expense for these capitalized real estate leases, but rather rental payments under the capital leases are recognized as a reduction of the capital and financing lease obligation and as interest expense (see Note 11). The interest rate on capital and financing lease obligations is determined at the inception of the lease. Inter est The Company incurred gross interest expense of approximately $3.3 million, $2.9 million and $2.2 million in the years ended September 30 , 2015, 2014 and 2013, respectively. Interest expense for the years ended September 30, 2015, 2014 and 2013 relates primarily to interest on capital and financing lease obligations. The Company capitalized interest of approximately $0.3 million and $0.4 million for the years ended September 30, 2015 and 2014, respectively, and had no amounts of capitalized interest for the year ended September 30, 2013 . |
Note 11 - Lease Commitments
Note 11 - Lease Commitments | 12 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
Leases of Lessee Disclosure [Text Block] | 1 1 . Lease Commitments Operating Leases The Company leases retail stores, a bulk food repackaging facility and distribution center and administrative offices under long-term operating leases through 2062. These leases include scheduled increases in minimum rents and renewal provisions at the option of the Company. Deferred rent expense as of September 30, 2015 and 2014 was approximately $6.9 million and $5.8 million, respectively. Tenant improvement allowances received from landlords (leasehold incentives) are recorded as liabilities and recognized evenly as a reduction to rent expense over the lease term. Leasehold incentives at September 30, 2015 and 2014 were approximately $8.0 million and $7.2 million, respectively. Sublease rental income was less than $0.1 million for each of the years ended September 30, 2015 and 2014. The Company had no sublease rental income during the year ended September 30, 2013. The Company has five operating leases with Chalet Properties, LLC (Chalet), one operating lease with the Isely Family Land Trust LLC and one operating lease with FTVC, LLC, all related parties (see Note 13). The terms and rental rates of these related party leases are similar to leases with nonrelated parties and are at market rental rates. The leases began at various times with the earliest occurring in November 1999, continue for various terms through February 2027 and include various options to renew. Currently, annual lease payments range from less than $0.1 million to approximately $0.3 million per lease. Minimum rental commitments and sublease rental income under the terms of the Company’s operating leases are as follows, dollars in thousands: Fiscal Year Third Related Sublease Rental Income Total Operating 2016 $ 25,889 1,283 (125 ) 27,047 2017 28,458 1,281 (134 ) 29,605 2018 28,789 1,281 (134 ) 29,936 2019 27,588 1,281 (124 ) 28,745 2020 26,915 1,285 (121 ) 28,079 Thereafter 235,971 7,885 (338 ) 243,518 $ 373,610 14,296 (976 ) 386,930 Total rent expense, including common area expenses and warehouse rent, for the years ended September 30, 2015, 2014, and 2013 totaled approximately $26.3 million, $20.5 million and $14.8 million, respectively, which is included in cost of goods sold and occupancy costs and administrative expenses in the consolidated statements of income. In addition, approximately $0.8 million, $1.0 million and $0.6 million is included in pre-opening and relocation expense associated with rent expense for stores prior to their opening date for the years ended September 30, 2015, 2014 and 2013, respectively. For the year ended September 30, 2013, the Company completed one sale-leaseback transaction with an unrelated party for proceeds of approximately $5.0 million, with a gain on the sale of approximately $0.2 million which has been deferred and will be amortized over the initial lease term. Concurrent with the sale, the Company entered into an agreement to lease the property back from the purchaser over an initial lease term of 15 years. The Company classified the lease as operating and considers the transaction as a normal leaseback with no other continuing involvement. Capital and Financing Lease Obligations Capital and financing lease obligations as of September 30, 2015 and 2014, were as follows, dollars in thousands: As of September 30, 201 5 201 4 Capital lease finance obligations, due in monthly installments through fiscal year 2029 $ 22,096 14,989 Capital lease obligations due in monthly installments through fiscal year 2028 4,539 4,672 Capital lease finance obligations for assets under construction, due in monthly installments through fiscal year 2024 — 2,316 Capital lease obligations for assets under construction, due in monthly installments through fiscal year 2041 972 — Total capital and financing lease obligations 27,607 21,977 Less current portion (333 ) (229 ) Total capital and financing lease obligations, net of current portion $ 27,274 21,748 Capital lease finance obligations From time to time, the Company enters into leases with developers for build-to-suit store locations. Upon lease execution, the Company analyzes its involvement during the construction period . contributed toward construction. The Company had capital lease finance obligations totaling approximately $22.1 million and $15.0 million as of September 30, 2015 and 2014, respectively. The leases that created the obligations expire or become subject to renewal clauses at various dates through fiscal year 2029. The Company does not record rent expense for capital lease finance obligations, but rather rent payments per the leases are recognized as a reduction of the related capital lease finance obligation and as interest expense. Depreciation expense for the related capitalized lease assets is included in store expenses in the consolidated statements of income. At the end of the lease term, the offsetting balances of the capitalized assets, net of accumulated depreciation, and capital lease finance obligation will be derecognized. During the quarter ended December 31, 2014, the Company amended an existing lease with Chalet Properties, LLC, a related party (see Note 13) to obtain additional square footage at one Company store. Due to the Company’s involvement with construction for the additional space, the amended lease was deemed to be a capital financing lease in the quarter ended December 31, 2014. The Company capitalized a building asset and related capital lease finance obligation of $3.3 million. Per the lease terms, the Company will pay $2.8 million in cash for rent during the remaining term of the lease, of which $1.8 million will be recorded as interest expense and $1.0 million will be recorded as principal payments. Additionally, the Company will record $1.0 million in depreciation expense related to the building asset. Capital lease obligations The Company had capital lease obligations totaling approximately $4.5 million and $4.7 million as of September 30, 2015 and 2014, respectively. Certain of the Company’s leases for store locations are considered capital leases, and as such, the Company has capitalized the present value of the minimum lease payments under the leases for the stores and recorded related capital lease obligations. The leases that created the obligation expire or become subject to renewal clauses at various dates through fiscal year 2028. The Company does not record rent expense for capital lease obligations, but rather rent payments per the leases are recognized as a reduction of the related capital lease obligation and as interest expense. Depreciation expense for the related capitalized lease assets is included in store expenses in the consolidated statements of income. Capital lease finance obligation s for assets under construction As of September 30, 2015, the Company had no construction in process related to capital lease finance obligations. As of September 30, 2014, the Company had recorded approximately $2.3 million in capital lease finance obligations for assets under construction. Once construction is completed, the Company was deemed to have continuing involvement and capitalized any additional costs of construction. The lease that created the obligation as of September 30, 2014 expires or becomes subject to renewal clauses in fiscal year 2024. The Company will not record rent expense for these leases, but rather rental payments under the leases will be recognized as a reduction of the capital lease finance obligation and as interest expense. Depreciation expense for the related capitalized lease assets is included in store expenses in the consolidated statements of income. At the end of the lease term, the offsetting balances of the capitalized assets, net of accumulated depreciation, and the capital lease finance obligation will be derecognized. Capital lease obligation s for assets under construction As of September 30, 2015, the Company had recorded approximately $0.9 million for capital lease obligations for assets under construction. As of September 30, 2014, the Company had no construction in process related to capital lease obligations . The lease that created the obligation as of September 30, 2015 expires or becomes subject to renewal clauses in fiscal year 2041. The Company will not record rent expense for these leases, but rather rental payments under the leases will be recognized as a reduction of the capital lease obligation and as interest expense. Depreciation expense for the related capitalized lease assets is included in store expenses in the consolidated statements of income. At the end of the lease term, the offsetting balances of the capitalized assets, net of accumulated depreciation, and the capital lease obligation will be $0. Future payments for capital lease finance obligations and capital lease obligations Future payments under the terms of the leases for opened stores included in capital lease finance obligations and capital lease obligations as of September 30, 2015 are as follows, dollars in thousands: Interest Principal s on Interest Principal payments on Total future 2016 $ 2,643 177 650 151 3,621 2017 2,625 199 631 170 3,625 2018 2,604 234 609 192 3,639 2019 2,578 295 584 217 3,674 2020 2,546 329 554 247 3,676 Thereafter 15,836 4,464 2,460 3,561 26,321 Non-cash derecognition of capital lease finance obligations at end of lease term — 16,399 — — 16,399 $ 28,832 22,097 5,488 4,538 60,955 Future payments under the terms of the lease for the store location at which construction was in progress as of September 30, 2015, based on the store opening date in the first quarter of fiscal 2016, are as follows, dollars in thousands: Interest expense on capital lease obligation s for assets under construction Principal payments on ital lease obligations for assets under construction Total future payments on capital lease o bligation s for asset s under construction 2016 $ 85 (14 ) 71 2017 85 3 88 2018 85 3 88 2019 85 3 88 2020 85 3 88 Thereafter 1,253 974 2,227 $ 1,678 972 2,650 |
Note 12 - Share-based Compensat
Note 12 - Share-based Compensation | 12 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 1 2 . S hare -Based Compensation The Company adopted the 2012 Omnibus Incentive Plan (the Plan) on July 17, 2012. Restricted stock unit awards granted pursuant to the Plan, if they vest, will be settled in new shares of the Company’s common stock. At the adoption of the Plan, there were 1,090,151 shares of common stock available for issuance or delivery under the Plan, of which 620,580 remain available for grants as of September 30, 2015. The Plan provides for awards of options, stock appreciation rights, stock grants, restricted stock units, other share-based awards and cash-based incentive awards to officers, members of the Board of Directors (the Board) and certain employees who are not named executive officers and consultants. As of September 30, 2015, only restricted stock units had been granted under the Plan, at no out-of-pocket cost to officers, Board members and key employees. These restricted stock units vest subject to requisite service requirements, immediately in part or annually in installments over a one-to-five year period. The award recipients are not entitled to cash dividends or to vote with regard to non-vested restricted stock units, and the units are subject to forfeiture during the vesting period. Restricted stock units are granted at the market price of the Company’s stock on the date of grant and are expensed on a straight-line basis over the vesting period. The shares of non-vested restricted stock units as of September 30, 2015 were as follows: Shares Weighted average grant date fair value Non-vested as of September 30, 2013 86,053 $ 21.80 Granted 3,558 42.16 Forfeited (3,868 ) 34.07 Vested (48,549 ) 12.38 Non-vested as of September 30, 2014 37,194 34.77 Granted 127,751 24.14 Forfeited (17,560 ) 25.04 Vested (15,529 ) 32.34 Non-vested as of September 30, 2015 131,856 26.05 Share-based compensation expense for awards to certain employees who are not named executive officers was approximately $0.4 million, $0.4 million, and $0.5 million for the years ended September 30, 2015, 2014, and 2013, respectively. Prior to fiscal year 2015, each independent member of the Board was annually granted a number of non-vested restricted stock units under the Plan equal to the number of shares of common stock having a value equal to $50,000 (based on the closing price of common stock on the New York Stock Exchange on the date of grant). In December 2014, the disinterested members of the Board increased the value of the annual grant of restricted stock to each independent director to $60,000 (based on the closing price of common stock on the New York Stock Exchange on the date of grant). Such grants are made each year on the date of the Company’s annual meeting of stockholders, or on a pro rata basis in the case of a mid-year appointment. Share-based compensation expense for the Company’s awards to its Board members was approximately $0.2 million, $0.1 million, and $0.1 million for the years ended September 30, 2015, 2014, and 2013, respectively. The Company recorded total share-based compensation expense before income taxes of approximately $0.6 million, $0.5 million, and $0.6 million in the years ended September 30, 2015, 2014, and 2013, respectively. The share-based compensation expense is included in cost of goods sold and occupancy expenses, store expenses or administrative expenses in the consolidated statements of income consistent with the manner in which the applicable officer, Board member or key employee’s compensation expense is presented. The Company recognized a tax benefit from share-based compensation expense of approximately $0.2 million in each of the years ended September 30, 2015, 2014 and 2013. As of September 30, 2015, there was approximately $3.0 million of unrecognized share-based compensation expense related to non-vested restricted stock units, net of estimated forfeitures, which the Company anticipates will be recognized over a weighted average period of approximately four years. |
Note 13 - Related Party Transac
Note 13 - Related Party Transactions | 12 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 1 3 . Related Party Transactions The Company has ongoing relationships with related parties as noted: Chalet Properties, LLC : Isely Family Land Trust LLC: FTVC LLC: |
Note 14 - Income Taxes
Note 14 - Income Taxes | 12 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 1 4 . Income Taxes The following are the components of the provision for income taxes as of September 30, 2015, 2014 and 2013, respectively, dollars in thousands: Year ended September 30, 201 5 201 4 201 3 Current federal income tax expense $ 7,769 8,304 3,376 Current state income tax expense 1,033 1,163 551 8,802 9,467 3,927 Deferred federal income tax expense (benefit) 514 (1,112 ) 2,156 Deferred state income tax expense (benefit) 116 (74 ) 296 630 (1,186 ) 2,452 Total provision for income taxes $ 9,432 8,281 6,379 The differences between the United States federal statutory income tax rate and the Company’s effective tax rate are as follows: Year ended September 30, 201 5 201 4 201 3 Statutory tax rate 35.0 % 35.0 34.0 State income taxes, net of federal income tax expense 2.9 3.0 3.3 Other, net (1.1 ) 0.1 0.4 Effective tax rate 36.8 % 38.1 37.7 Deferred taxes have been classified on the consolidated balance sheets as follows, dollars in thousands: As of September 30, 201 5 201 4 Current assets $ 866 832 Long-term liabilities (6,073 ) (5,409 ) Net deferred tax liabilities $ (5,207 ) (4,577 ) The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities are as follows, dollars in thousands: As of September 30, 201 5 201 4 Deferred tax assets Capital and financing lease obligations $ 10,473 8,330 Goodwill 2,582 2,937 Leasehold incentives 3,025 2,746 Deferred rent 2,627 2,214 Trademarks 1,018 1,018 Accrued employee benefits 729 590 Other 363 322 Gross deferred tax assets 20,817 18,157 Deferred tax liabilities Property and equipment (22,909 ) (19,930 ) Leasehold improvements (3,087 ) (2,804 ) Other (28 ) — Gross deferred tax liabilities (26,024 ) (22,734 ) Net deferred tax liabilities $ (5,207 ) (4,577 ) The Company believes that it is more likely than not that it will fully realize all deferred tax assets in the form of future deductions based on the nature of the deductible temporary differences and expected future taxable income. The Company had $0 and approximately $0.1 million as of September 30, 2015 and 2014, respectively, in tax effected operating loss carryforwards related to state income taxes. The Company utilized the remaining operating loss carryforwards, of approximately $0.1 million, on its tax return for the year ended September 30, 2015. The Company utilized less than $0.1 million in tax effected state income tax carryforwards in the year ended September 30, 2014. The Company files income tax returns with federal, state and local tax authorities. With limited exceptions, the Company is no longer subject to federal income tax examinations for fiscal years 2011 and prior and is no longer subject to state and local income tax examinations for fiscal years 2010 and prior. |
Note 15 - Defined Contribution
Note 15 - Defined Contribution Plan | 12 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | 1 5 . Defined Contribution Plan The Company has a defined contribution retirement plan (the Retirement Plan) covering substantially all employees who meet certain eligibility requirements as to age and length of service. The Retirement Plan incorporates the salary deferral provisions of Section 401(k) of the Internal Revenue Code of 1986, as amended (the Code). Employees may defer up to the annual maximum limit prescribed by the Code. The Company, on a discretionary basis, may match 25% of participant contributions up to a maximum annual employer match of $2,500. The Company’s matching contribution included in administrative expenses was approximately $0.6 million, $0.1 million and $0.4 million for the years ended September 30, 2015, 2014 and 2013 respectively. |
Note 16 - Segment Reporting
Note 16 - Segment Reporting | 12 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 1 6 . Segment Reporting The Company has one reporting segment, natural and organic retail stores. The Company’s revenues are derived from the sale of natural and organic products at its stores. All existing operations are domestic. Sales from the Company’s natural and organic retail stores are derived from sales of the following products which are presented as a percentage of sales for the years ended September 30, 2015, 2014 and 2013 as follows: As of September 30, 201 5 201 4 201 3 Grocery 66.4 % 66.7 65.2 Dietary supplements 22.5 23.2 24.8 Body care, pet care and other 11.1 10.1 10.0 100.0 % 100.0 100.0 |
Note 17 - Business Combination
Note 17 - Business Combination | 12 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | 1 7 . Business Combination On December 7, 2014, the Company purchased substantially all of the assets and assumed certain liabilities of natural foods retailer Nature’s Pantry, Inc. (the Store Acquisition), which operated one retail store in Independence, Missouri. Following the Store Acquisition, the store was rebranded as a Natural Grocers by Vitamin Cottage store. The transaction has been recorded in accordance with Accounting Standards Codification 805, “Business Combinations.” Assets acquired included, but were not limited to, inventory, property and equipment and certain intangible assets, including the Nature’s Pantry internet domain name and a covenant not to compete. The purchase price has been provisionally allocated to tangible and identifiable intangible assets totaling approximately $1.5 million based on their estimated fair values at the date of acquisition, summarized as follows, dollars in thousands: Inventory and supplies $ 726 Property and equipment 680 Other intangible assets 65 Total provisionally allocated to tangible and identifiable intangible assets $ 1,471 Other intangible assets is primarily comprised of a covenant not to compete that will be amortized over a period of two years (see Note 7). During the year ended September 30, 2015, the Company adjusted the provisional fair value measurement as of the date of acquisition for property and equipment, resulting in an increase of $0.1 million in the purchase price allocated to property and equipment and a decrease of $0.1 million in goodwill. Total costs in excess of tangible and identifiable intangible assets acquired of approximately $4.7 million have been recorded as goodwill and reflect the value the Company sees in a similar long-term commitment to nutrition education and natural and organic products. A significant portion of the goodwill recognized is expected to be deductible for income tax purposes. During the year ended September 30, 2015, the Company paid cash of $6.1 million related to the Store Acquisition, which includes the payment during the three months ended March 31, 2015 of $0.5 million of contingent consideration, which had been accrued in the three months ended December 31, 2014. Results of this acquired operation are included in the Company’s consolidated statements of income beginning December 7, 2014. |
Note 18 - Commitments and Conti
Note 18 - Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 18 . Commitments and Contingencies Self-Insurance The Company is self-insured for claims under its health benefit plans, subject to a stop loss policy. The self-insurance liability related to claims under the Company’s health benefit plans is determined based on analysis of actual claims. The amounts related to these claims are included as a component of payroll and employee-related expenses in accrued expenses. Liabilities associated with the risks that are retained by the Company are estimated, in part, by considering historical claims experience, demographic factors and other actuarial assumptions. While the Company believes that its assumptions are appropriate, the estimated accrual for these liabilities could be significantly affected if future occurrences and claims materially differ from these assumptions and historical trends. Legal The Company is periodically involved in various legal proceedings that are incidental to the conduct of its business, including but not limited to employment discrimination claims, customer injury claims and investigations. When the potential liability from a matter can be estimated and the loss is considered probable, the Company records the estimated loss. Due to uncertainties related to the resolution of lawsuits, investigations and claims, the ultimate outcome may differ from the estimates. Although the Company cannot predict with certainty the ultimate resolution of any lawsuits, investigations and claims asserted against it, management does not believe any currently pending legal proceeding to which the Company is a party will have a material adverse effect on its business, prospects, financial condition, cash flows or results of operations. In Bernhard Engl v. Natural Grocers by Vitamin Cottage, Inc. and Vitamin Cottage Natural Food Markets, Inc. |
Note 19 - Selected Quarterly Fi
Note 19 - Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
Quarterly Financial Information [Text Block] | 19 . Selected Quarterly Financial Data (Unaudited) The summarized unaudited quarterly financial data presented below reflect all adjustments, which in the opinion of management, are of a normal and recurring nature necessary to present fairly the results of operations for the periods presented. Summarized unaudited quarterly financial data for each fiscal year is as follows, dollars in thousands, except per share data: Fiscal Year Ended September 30, 2015 Three months ended December 31, March 31, June 30, 2015 September 30, Net sales $ 145,887 157,744 158,650 162,397 Cost of goods sold and occupancy costs 103,593 110,874 112,508 115,607 Gross profit 42,294 46,870 46,142 46,790 Store expenses 31,049 32,461 33,508 35,113 Administrative expenses 4,227 4,156 4,322 4,809 Pre-opening and relocation expenses 577 870 1,078 1,297 Operating income 6,441 9,383 7,234 5,571 Interest expense (735 ) (714 ) (768 ) (776 ) Income before income taxes 5,706 8,669 6,466 4,795 Provision for income taxes (2,142 ) (3,266 ) (2,121 ) (1,903 ) Net income $ 3,564 5,403 4,345 2,892 Basic earnings per share $ 0.16 0.24 0.19 0.13 Diluted earnings per share 0.16 0.24 0.19 0.13 Fiscal Year Ended September 30, 2014 Three months ended December 31, March 31, June 30, 2014 September 30, Net sales $ 120,580 130,343 134,036 135,715 Cost of goods sold and occupancy costs 85,199 91,590 95,424 96,959 Gross profit 35,381 38,753 38,612 38,756 Store expenses 25,173 26,877 28,213 28,394 Administrative expenses 3,889 3,548 3,585 3,801 Pre-opening and relocation expenses 889 1,211 729 945 Operating income 5,430 7,117 6,085 5,616 Other income (expense): Dividends and interest income 1 1 — — Interest expense (707 ) (704 ) (706 ) (379 ) Total other expense (706 ) (703 ) (706 ) (379 ) Income before income taxes 4,724 6,414 5,379 5,237 Provision for income taxes (1,802 ) (2,415 ) (2,015 ) (2,049 ) Net income . $ 2,922 3,999 3,364 3,188 Basic earnings per share $ 0.13 0.18 0.15 0.14 Diluted earnings per share 0.13 0.18 0.15 0.14 |
Note 20 - Subsequent Events
Note 20 - Subsequent Events | 12 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 20 . Subsequent Events On November 17, 2015, as provided for in the Credit Facility, the Company obtained a commitment to increase the amount available for borrowing under its Credit Facility from $15.0 million to $25.0 million. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The accompanying consolidated financial statements include all the accounts of the holding company’s wholly owned subsidiaries, Vitamin Cottage Natural Food Markets, Inc. (the operating company), Vitamin Cottage Two Ltd. Liability Company and Natural Systems, LLC. All significant intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management reviews its estimates on an ongoing basis, including those related to allowances for self-insurance reserves, valuation of inventories, useful lives of property and equipment for depreciation and amortization, deferred tax assets and liabilities and litigation based on currently available information. Changes in facts and circumstances may result in revised estimates and actual results could differ from those estimates. |
Segment Reporting, Policy [Policy Text Block] | Segment Information The Company has one reporting segment, natural and organic retail stores. |
Cash and Cash Equivalents, Unrestricted Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents Cash and cash equivalents include currency on hand, demand deposits with banks, money market funds and credit and debit card transactions which typically settle within three business days. The Company considers all highly liquid investments with a remaining maturity of 90 days or less when acquired to be cash equivalents. |
Investment, Policy [Policy Text Block] | Investments Available-for-sale investments are recorded at fair value. Unrealized holding gains and losses on available-for-sale investments are excluded from earnings and are reported as a component of other comprehensive income until realized. A decline in the fair value of any available-for-sale security below cost that is deemed to be other-than-temporary for a period greater than two fiscal quarters results in a reduction of the fair value. Declines in fair value deemed to be other-than-temporary are charged against net earnings. Investments that have an original maturity date of less than one year are classified as short-term assets, and investments that have an original maturity date of greater than one year are classified as long-term assets. |
Trade and Other Accounts Receivable, Policy [Policy Text Block] | Accounts Receivable Accounts receivable consists primarily of receivables from vendors for certain promotional programs, newsletter advertising and other miscellaneous receivables and are presented net of any allowances for doubtful accounts. Vendor receivable balances are generally presented on a gross basis separate from any related payable due. Allowance for doubtful accounts is calculated based on historical experience and application of the specific identification method. Allowance for doubtful accounts totaled less than $0.1 million at each of September 30, 2015 and 2014. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Credit Risk Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of investments in cash and cash equivalents and accounts receivable. The Company’s cash and cash equivalent account balances, which are held in major financial institutions, exceeded the Federal Deposit Insurance Corporation’s federally insured limits by approximately $1.1 million as of September 30, 2015. |
Vendor Concentration [Policy Text Block] | Vendor Concentration For the years ended September 30, 2015, 2014 and 2013, purchases from the Company’s largest vendor and one of its subsidiaries represented approximately 57%, 56% and 55%, respectively, of all product purchases made during such periods. However, the Company believes that, if necessary, alternate vendors could supply similar products in adequate quantities to avoid material disruptions to operations. |
Inventory, Policy [Policy Text Block] | Merchandise Inventory Merchandise inventory consists of goods held for sale. The cost of inventory includes certain costs associated with the preparation of inventory for sale, including inventory overhead costs. Merchandise inventory is carried at the lower of cost or market value. Cost is determined using the weighted average cost method. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment is stated at historical cost less accumulated depreciation. Depreciation is provided using the straight-line method over the following estimated useful lives of the related assets. Useful lives (in years) Land improvements 5 – 15 Buildings 40 Leasehold and building improvements 1 – 25 Capitalized real estate leases for build-to-suit stores 40 Capitalized real estate leases 15 Fixtures and equipment 5 – 7 Computer hardware and software 3 – 5 For land improvements and leasehold and building improvements, depreciation is recorded over the shorter of the assets’ useful lives or the lease terms. Maintenance, repairs and renewals that neither add to the value of the property nor appreciably prolong its life are charged to expense as incurred. Gains and losses on disposition of property and equipment are included in store expenses in the year of disposition, and primarily relate to store relocations. The Company capitalizes interest, if applicable, as part of the historical costs of buildings and leasehold and building improvements. The Company capitalizes certain costs incurred with developing or obtaining internal-use software. Capitalized software costs are included in property and equipment in the consolidated balance sheets and are amortized over the estimated useful lives of the software. Software costs that do not meet capitalization criteria are expensed as incurred. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments The Company records its financial assets and liabilities at fair value in accordance with the framework for measuring fair value in authoritative guidance. The framework establishes a fair value hierarchy that distinguishes between assumptions based on market data (observable inputs) and the Company’s own assumptions (unobservable inputs). The three levels are defined as follows: Level 1 — Inputs are unadjusted quoted prices for identical assets or liabilities in active markets; Level 2 — Inputs include quoted prices for similar assets or liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument; and Level 3 — Inputs are unobservable and are considered significant to the fair value measurement. Transfers between levels of the fair value hierarchy are deemed to have occurred as of the date of the event or transfer. |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill and Intangible Assets Intangible assets primarily consist of goodwill, trademarks, favorable operating leases and covenants-not-to-compete. Goodwill and the Vitamin Cottage The Company’s annual impairment testing of goodwill is performed as of September 30. In performing the Company’s analysis of goodwill, the Company first evaluates qualitative factors, including relevant events and circumstances, to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, the two-step impairment test is not necessary. If it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the Company performs the two-step impairment test. Under the first step, the fair value of the reporting unit is compared with its carrying value (including goodwill). If the fair value of the reporting unit is less than its carrying value, an indication of goodwill impairment exists for the reporting unit and the Company must perform step two of the impairment test (measurement). Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of that goodwill. To date, the Company has recorded no impairment charges related to goodwill. |
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block] | Impairment of Finite-Lived Intangible and Long-Lived Assets Long-lived assets, such as property and equipment and purchased intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company aggregates long-lived assets at the store level, which the Company considers to be the lowest level in the organization for which independent identifiable cash flows are available. If circumstances require a long-lived asset or asset group to be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that store to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, impairment is recognized to the extent that the carrying value exceeds its fair value. The Company considers factors such as historic and forecasted operating results, trends and future prospects, current market value, significant industry trends and other economic and regulatory factors in performing these analyses. To date, the Company has recorded no impairment charges related to finite-lived intangible or long-lived assets. |
Deferred Charges, Policy [Policy Text Block] | Deferred Financing Costs Certain costs incurred with borrowings or establishment of credit facilities are deferred. These costs are amortized over the life of the borrowing or the life of the credit facility using the straight-line methods. |
Lease, Policy [Policy Text Block] | Leases The Company leases retail stores, a bulk food repackaging facility and distribution center and administrative offices under long-term operating or capital and financing leases. These leases include scheduled increases in minimum rents and renewal provisions at the option of the Company. The lease term for accounting purposes commences with the date the Company takes possession of the space and ends on the later of the primary lease term or the expiration of any renewal periods that are deemed to be reasonably assured at the inception of the lease. Operating leases The Company accounts for operating leases with rent holidays and escalating payment terms by recognizing the associated expense on a straight-line basis over the lease term, and the difference between the average rental amount charged to expense and amounts payable under the leases are included in deferred rent. For certain leases, the Company has also received cash from landlords to compensate for costs incurred by the Company in making the store locations ready for operation (leasehold incentives or tenant allowances). Leasehold incentives received from a landlord are deferred and recognized on a straight-line basis as a reduction to rent expense over the lease term. Capital financing leases From time to time, the Company enters into leases with developers for build-to-suit store locations. Upon lease execution, the Company analyzes its involvement during the construction period. Capital leases Occasionally, the Company enters into leases that are deemed to be capital leases. For these leases, the Company capitalizes the lower of the present value of the minimum lease payments or the fair value of the leased asset at inception and records a corresponding capital lease obligation. The Company does not record rent expense for the rental payments under capital leases, but rather payments under the capital lease obligations are recognized as a reduction of the capital lease obligation and as interest expense. The capital lease asset is depreciated on a straight-line basis over the term of the related lease. |
Self Insurance Reserve [Policy Text Block] | Self-Insurance The Company is self-insured for certain losses relating to employee medical and dental benefits and workers compensation. Stop-loss coverage has been purchased to limit exposure to any significant level of claims. Self-insured losses are accrued based upon the Company’s estimates of the aggregate claims incurred but not reported using historical experience. The estimated accruals for these liabilities could be significantly affected if future occurrences and claims differ from historical trends. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition Revenue is recognized at the point of sale, net of in-house coupons, discounts and returns. Sales taxes are not included in sales. The Company charges sales tax on all taxable customer purchases and remits these taxes monthly to the appropriate taxing jurisdiction. The Company records a deferred revenue liability within accrued expenses when it sells the Company’s gift cards or issues gift cards for award or promotional purposes, and records a sale when a customer redeems the gift card. Generally, the gift cards do not expire. The Company currently does not record breakage for unused portions of gift cards. |
Cost of Goods Sold and Occupancy Costs [Policy Text Block] | Cost of Goods Sold and Occupancy Costs Cost of goods sold and occupancy costs includes the cost of inventory sold during the period net of discounts and allowances, as well as, distribution, shipping and handling costs, store occupancy costs and costs of the bulk food repackaging facility and distribution center. The amount shown is net of various rebates from third-party vendors in the form of quantity discounts and payments. Vendor consideration associated with product discounts is recorded as either a reduction of merchandise inventory or cost of goods sold. Store occupancy costs include rent, common area maintenance and real estate taxes. Store occupancy costs do not include any rent amounts for the store leases classified as capital and financing lease obligations. |
Store Expenses [Policy Text Block] | Store Expenses Store expenses consist of store-level expenses such as salaries, benefits and share-based compensation, supplies, utilities, depreciation, gain or loss on disposal of assets and other related costs associated with operations support. Store expenses also include purchasing support services and advertising and marketing costs. |
Selling, General and Administrative Expenses, Policy [Policy Text Block] | Administrative Expenses Administrative expenses consist of salaries, benefits and share-based compensation, occupancy costs, depreciation, office supplies, hardware and software expenses, professional services expenses and other general and administrative expenses. |
Pre-Opening Costs and Relocation Expenses [Policy Text Block] | Pre-Opening and Relocation Expenses Costs associated with the opening of new stores or relocating existing stores are expensed as incurred. |
Advertising Cost, Policy, Expensed Advertising Cost [Policy Text Block] | Advertising and Marketing Advertising and marketing costs are expensed as incurred and are included in store expenses and pre-opening and relocation expenses in the consolidated statements of income. Total advertising and marketing expenses for the years ended September 30, 2015, 2014 and 2013 were approximately $9.3 million, $7.8 million and $6.2 million, respectively, net of vendor reimbursements received for newsletter advertising. Advertising expense reimbursements received from vendors totaled approximately $2.5 million, $1.9 million and $1.5 million for the years ended September 30, 2015, 2014 and 2013, respectively. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | S hare - B ased C ompensation The Company adopted the 2012 Omnibus Incentive Plan in connection with the IPO on July 25, 2012. Restricted common stock units are granted at the market price of the Company’s common stock on the date of grant and expensed over the applicable vesting period. The excess tax benefits for recognized compensation costs are reported as a credit to additional-paid-in capital and as operating cash outflows when such excess tax benefits are realized by a reduction to current taxes payable. |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company accounts for income taxes using the asset and liability method. This method requires recognition of deferred tax assets and liabilities for expected future tax consequences of temporary differences that currently exist between the tax basis and financial reporting basis of the Company’s assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates in the respective jurisdictions in which the Company operates. The Company considers the need to establish valuation allowances to reduce deferred income tax assets to the amounts the Company believes are more likely than not to be recovered. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. Although the Company believes that its estimates are reasonable, actual results could differ from these estimates. In addition, the Company is subject to periodic audits and examinations by the Internal Revenue Service (IRS) and other state and local taxing authorities. Any interest or penalties incurred related to income taxes are expensed as incurred and treated as permanent differences for tax purposes. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In November 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2015-17 “Income Taxes” Topic 740, “Income Taxes.” (ASU 2015-17). ASU 2015-17 addresses the balance sheet classification of deferred taxes. Current GAAP requires an entity to separate deferred income tax liabilities and assets into current and noncurrent amounts in a classified statement of financial position. The amendments in ASU 2015-17 require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. ASU 2015-17 will be effective for financial statements issued for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years. The guidance will be effective for the Company’s first quarter of the fiscal year ending September 30, 2018. Earlier application is permitted for all entities as of the beginning of an interim or annual reporting period. The Company is currently evaluating the impact that the adoption of ASU 2015-17 will have on its consolidated financial statements. In September 2015, the FASB issued Accounting Standards Update 2015-16 “Simplifying the Accounting for Measurement-Period Adjustments” Topic 805, “Business Combinations” (ASU 2015-16). The amendments in ASU 2015-16 require that an acquirer recognize adjustments to provisional amounts identified during the measurement period in the reporting period in which the adjustments are determined and eliminates the requirement to retrospectively revise prior periods. Additionally, an acquirer should record in the same period the effects on earnings of any changes in the provisional accounts, calculated as if the accounting had been completed at the acquisition date. The amendments should be applied on a prospective basis. ASU 2015-16 is effective for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years. The guidance in ASU 2015-16 will be effective for the Company’s first quarter of the fiscal year ending September 30, 2017. In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory,” Topic 330, “Inventory” (ASU 2015-11). The amendments in ASU 2015-11, which apply to inventory that is measured using any method other than the last-in, first-out (LIFO) or retail inventory method, require that entities measure inventory at the lower of cost and net realizable value. The amendments in ASU 2015-11 should be applied on a prospective basis. ASU 2015-11 is effective for fiscal years beginning after December 15, 2016 and interim periods within those years. The provisions of ASU 2015-11 are effective for the Company’s first quarter of the fiscal year ending September 30, 2018. The Company is currently evaluating the impact that the adoption of ASU 2015-11 will have on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-05, “Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement,” Subtopic 350-40, “Intangibles-Goodwill and Other – Internal-Use Software” (ASU 2015-05). ASU 2015-05 provides guidance as to whether a cloud computing arrangement (such as software as a service, platform as a service, infrastructure as a service, and other similar hosting arrangements) includes a software license and, based on that determination, how to account for such arrangements. The amendments in ASU 2015-05 may be applied on either a prospective or retrospective basis and early adoption is permitted. ASU 2015-05 is effective for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years. The provisions of ASU 2015-05 are effective for the Company’s first quarter of the fiscal year ending September 30, 2017. The Company is currently evaluating the impact that the adoption of ASU 2015-05 will have on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs” Topic 835, “Interest” (ASU 2015-03). ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. In August 2015, the FASB issued ASU 2015-15, “Interest – Imputation of Interest,” Subtopic 835-30, “Interest” (ASU 2015-15). The guidance in ASU 2015-03 did not address the presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements and ASU 2015-15 was issued to clarify that the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangements. The amendments in ASU 2015-03 should be applied on a retrospective basis and early adoption is permitted. ASU 2015-03 is effective for fiscal years beginning after December 15, 2015 , and interim periods within those fiscal years. The guidance in ASU 2015-03 will be effective for the Company in the first quarter of the fiscal year ending September 30, 2017. The Company is currently evaluating the impact that the adoption of ASU 2015-03 will have on its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers” Topic 606, “Revenue from Contracts with Customers” (ASU 2014-09). ASU 2014-09 provides guidance for revenue recognition and will replace most existing revenue recognition guidance in GAAP when it becomes effective. ASU 2014-09’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled for the transfer of those goods or services. ASU 2014-09 permits the use of either the retrospective or cumulative effect transition method. In July 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers – Deferral of the Effective Date.” The FASB approved the deferral of ASU 2014-09, by extending the new revenue recognition standard’s mandatory effective date by one year and permitting public companies to apply the new revenue standard to annual reporting periods beginning after December 15, 2017. However, earlier application is permitted only as of annual reporting periods beginning after December 15, 2016. The guidance in ASU 2014-09 will be effective for the Company in the first quarter of the fiscal year ending September 30, 2019. The Company has not yet selected a transition method and is currently in the process of evaluating the impact of the adoption of ASU 2014-09 on the Company’s consolidated financial statements and related disclosures. |
Note 2 - Basis of Presentatio30
Note 2 - Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | Useful lives (in years) Land improvements 5 – 15 Buildings 40 Leasehold and building improvements 1 – 25 Capitalized real estate leases for build-to-suit stores 40 Capitalized real estate leases 15 Fixtures and equipment 5 – 7 Computer hardware and software 3 – 5 |
Note 3 - Earnings Per Share (Ta
Note 3 - Earnings Per Share (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Year ended September 30, 2015 2014 2013 Net income $ 16,204 13,473 10,552 Weighted average number of shares of common stock outstanding 22,490,260 22,466,432 22,399,346 Effect of dilutive securities 10,573 13,403 42,036 Weighted average number of shares of common stock outstanding including the effect of dilutive securities 22,500,833 22,479,835 22,441,382 Basic earnings per share $ 0.72 0.60 0.47 Diluted earnings per share $ 0.72 0.60 0.47 |
Note 6 - Property and Equipme32
Note 6 - Property and Equipment (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Notes Tables | |
Schedule of Property Plant and Equipment Components [Table Text Block] | Useful lives As of September 30, (in years) 2015 2014 Construction in process n/a $ 10,150 6,867 Capitalized real estate leases for build-to-suit stores, including unamortized land of $617 and $617, respectively 40 24,774 17,107 Capitalized real estate leases 15 4,866 4,866 Land n/a 192 192 Buildings 40 4,980 3,985 Land improvements 5 - 15 1,015 1,000 Leasehold and building improvements 1 - 25 91,865 74,691 Fixtures and equipment 5 - 7 83,932 69,894 Computer hardware and software 3 - 5 13,834 10,740 235,608 189,342 Less accumulated depreciation and amortization (90,389 ) (69,118 ) Property and equipment, net $ 145,219 120,224 |
Depreciation and Amortization Expense [Table Text Block] | Year ended September 30, 2015 2014 2013 Depreciation and amortization expense included in cost of goods sold and occupancy costs $ 796 770 709 Depreciation and amortization expense included in store expenses 19,635 15,861 12,365 Depreciation and amortization expense included in administrative expenses 906 581 422 Total depreciation and amortization expense $ 21,337 17,212 13,496 |
Note 7 - Goodwill and Other I33
Note 7 - Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Notes Tables | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | Useful lives As of September 30, (in years) 201 5 201 4 Amortizable intangible assets: Covenants-not-to-compete 2 - 5 $ 353 293 Favorable operating lease 5 339 339 Other intangibles 0.5 - 1 27 22 Amortized intangible assets 719 654 Less accumulated amortization (683 ) (654 ) Amortized intangible assets, net 36 — Trademark Indefinite 389 389 Total other intangibles, net 425 389 Goodwill Indefinite 5,198 511 Total goodwill and other intangibles, net $ 5,623 900 |
Note 8 - Accrued Expenses (Tabl
Note 8 - Accrued Expenses (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | As of September 30, 201 5 201 4 Payroll and employee-related expenses $ 7,795 5,886 Accrued income taxes payable 5,540 4,868 Accrued property, sales and use tax payable 4,365 3,409 Accrued marketing expenses 532 421 Deferred revenue related to gift card sales 864 725 Other 553 513 Total accrued expenses $ 19,649 15,822 |
Note 11 - Lease Commitments (Ta
Note 11 - Lease Commitments (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Capital Lease Finance Obligations [Member] | Construction in Progress [Member] | |
Notes Tables | |
Schedule of Future Minimum Lease Payments for Capital and Finance Lease Obligations [Table Text Block] | Interest expense on capital lease obligation s for assets under construction Principal payments on ital lease obligations for assets under construction Total future payments on capital lease o bligation s for asset s under construction 2016 $ 85 (14 ) 71 2017 85 3 88 2018 85 3 88 2019 85 3 88 2020 85 3 88 Thereafter 1,253 974 2,227 $ 1,678 972 2,650 |
Capital Lease Finance Obligations [Member] | Assets Held Under Real Estate Leases for Build to Suit Stores [Member] | |
Notes Tables | |
Schedule of Future Minimum Lease Payments for Capital and Finance Lease Obligations [Table Text Block] | Interest Principal s on Interest Principal payments on Total future 2016 $ 2,643 177 650 151 3,621 2017 2,625 199 631 170 3,625 2018 2,604 234 609 192 3,639 2019 2,578 295 584 217 3,674 2020 2,546 329 554 247 3,676 Thereafter 15,836 4,464 2,460 3,561 26,321 Non-cash derecognition of capital lease finance obligations at end of lease term — 16,399 — — 16,399 $ 28,832 22,097 5,488 4,538 60,955 |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Fiscal Year Third Related Sublease Rental Income Total Operating 2016 $ 25,889 1,283 (125 ) 27,047 2017 28,458 1,281 (134 ) 29,605 2018 28,789 1,281 (134 ) 29,936 2019 27,588 1,281 (124 ) 28,745 2020 26,915 1,285 (121 ) 28,079 Thereafter 235,971 7,885 (338 ) 243,518 $ 373,610 14,296 (976 ) 386,930 |
Schedule of Debt [Table Text Block] | As of September 30, 201 5 201 4 Capital lease finance obligations, due in monthly installments through fiscal year 2029 $ 22,096 14,989 Capital lease obligations due in monthly installments through fiscal year 2028 4,539 4,672 Capital lease finance obligations for assets under construction, due in monthly installments through fiscal year 2024 — 2,316 Capital lease obligations for assets under construction, due in monthly installments through fiscal year 2041 972 — Total capital and financing lease obligations 27,607 21,977 Less current portion (333 ) (229 ) Total capital and financing lease obligations, net of current portion $ 27,274 21,748 |
Note 12 - Share-based Compens36
Note 12 - Share-based Compensation (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Notes Tables | |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | Shares Weighted average grant date fair value Non-vested as of September 30, 2013 86,053 $ 21.80 Granted 3,558 42.16 Forfeited (3,868 ) 34.07 Vested (48,549 ) 12.38 Non-vested as of September 30, 2014 37,194 34.77 Granted 127,751 24.14 Forfeited (17,560 ) 25.04 Vested (15,529 ) 32.34 Non-vested as of September 30, 2015 131,856 26.05 |
Note 14 - Income Taxes (Tables)
Note 14 - Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Year ended September 30, 201 5 201 4 201 3 Current federal income tax expense $ 7,769 8,304 3,376 Current state income tax expense 1,033 1,163 551 8,802 9,467 3,927 Deferred federal income tax expense (benefit) 514 (1,112 ) 2,156 Deferred state income tax expense (benefit) 116 (74 ) 296 630 (1,186 ) 2,452 Total provision for income taxes $ 9,432 8,281 6,379 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Year ended September 30, 201 5 201 4 201 3 Statutory tax rate 35.0 % 35.0 34.0 State income taxes, net of federal income tax expense 2.9 3.0 3.3 Other, net (1.1 ) 0.1 0.4 Effective tax rate 36.8 % 38.1 37.7 |
Schedule of Classification of Deferred Tax Assets and Liabilities [Table Text Block] | As of September 30, 201 5 201 4 Current assets $ 866 832 Long-term liabilities (6,073 ) (5,409 ) Net deferred tax liabilities $ (5,207 ) (4,577 ) |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | As of September 30, 201 5 201 4 Deferred tax assets Capital and financing lease obligations $ 10,473 8,330 Goodwill 2,582 2,937 Leasehold incentives 3,025 2,746 Deferred rent 2,627 2,214 Trademarks 1,018 1,018 Accrued employee benefits 729 590 Other 363 322 Gross deferred tax assets 20,817 18,157 Deferred tax liabilities Property and equipment (22,909 ) (19,930 ) Leasehold improvements (3,087 ) (2,804 ) Other (28 ) — Gross deferred tax liabilities (26,024 ) (22,734 ) Net deferred tax liabilities $ (5,207 ) (4,577 ) |
Note 16 - Segment Reporting (Ta
Note 16 - Segment Reporting (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Notes Tables | |
Schedule of Product Information [Table Text Block] | As of September 30, 201 5 201 4 201 3 Grocery 66.4 % 66.7 65.2 Dietary supplements 22.5 23.2 24.8 Body care, pet care and other 11.1 10.1 10.0 100.0 % 100.0 100.0 |
Note 17 - Business Combination
Note 17 - Business Combination (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Notes Tables | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | Inventory and supplies $ 726 Property and equipment 680 Other intangible assets 65 Total provisionally allocated to tangible and identifiable intangible assets $ 1,471 |
Note 19 - Selected Quarterly 40
Note 19 - Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Notes Tables | |
Schedule of Quarterly Financial Information [Table Text Block] | Fiscal Year Ended September 30, 2015 Three months ended December 31, March 31, June 30, 2015 September 30, Net sales $ 145,887 157,744 158,650 162,397 Cost of goods sold and occupancy costs 103,593 110,874 112,508 115,607 Gross profit 42,294 46,870 46,142 46,790 Store expenses 31,049 32,461 33,508 35,113 Administrative expenses 4,227 4,156 4,322 4,809 Pre-opening and relocation expenses 577 870 1,078 1,297 Operating income 6,441 9,383 7,234 5,571 Interest expense (735 ) (714 ) (768 ) (776 ) Income before income taxes 5,706 8,669 6,466 4,795 Provision for income taxes (2,142 ) (3,266 ) (2,121 ) (1,903 ) Net income $ 3,564 5,403 4,345 2,892 Basic earnings per share $ 0.16 0.24 0.19 0.13 Diluted earnings per share 0.16 0.24 0.19 0.13 Fiscal Year Ended September 30, 2014 Three months ended December 31, March 31, June 30, 2014 September 30, Net sales $ 120,580 130,343 134,036 135,715 Cost of goods sold and occupancy costs 85,199 91,590 95,424 96,959 Gross profit 35,381 38,753 38,612 38,756 Store expenses 25,173 26,877 28,213 28,394 Administrative expenses 3,889 3,548 3,585 3,801 Pre-opening and relocation expenses 889 1,211 729 945 Operating income 5,430 7,117 6,085 5,616 Other income (expense): Dividends and interest income 1 1 — — Interest expense (707 ) (704 ) (706 ) (379 ) Total other expense (706 ) (703 ) (706 ) (379 ) Income before income taxes 4,724 6,414 5,379 5,237 Provision for income taxes (1,802 ) (2,415 ) (2,015 ) (2,049 ) Net income . $ 2,922 3,999 3,364 3,188 Basic earnings per share $ 0.13 0.18 0.15 0.14 Diluted earnings per share 0.13 0.18 0.15 0.14 |
Note 1 - Organization (Details
Note 1 - Organization (Details Textual) | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 |
Kansas [Member] | |||
Number of Stores | 8 | ||
Idaho [Member] | |||
Number of Stores | 3 | ||
Utah [Member] | |||
Number of Stores | 2 | ||
Wyoming [Member] | |||
Number of Stores | 2 | ||
Arkansas [Member] | |||
Number of Stores | 1 | ||
Nevada [Member] | |||
Number of Stores | 1 | ||
North Dakota [Member] | |||
Number of Stores | 1 | ||
Washington [Member] | |||
Number of Stores | 1 | ||
Colorado [Member] | |||
Number of Stores | 34 | ||
Texas [Member] | |||
Number of Stores | 14 | ||
Oregon [Member] | |||
Number of Stores | 8 | ||
Oklahoma [Member] | |||
Number of Stores | 7 | ||
Arizona [Member] | |||
Number of Stores | 6 | ||
New Mexico [Member] | |||
Number of Stores | 5 | ||
Montana [Member] | |||
Number of Stores | 4 | ||
Nebraska [Member] | |||
Number of Stores | 3 | ||
Missouri [Member] | |||
Number of Stores | 2 | ||
Minnesota [Member] | |||
Number of Stores | 1 | ||
Number of Stores | 103 | 87 | 72 |
Note 2 - Basis of Presentatio42
Note 2 - Basis of Presentation and Summary of Significant Accounting Policies (Details Textual) - USD ($) | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Supplier Concentration Risk [Member] | Cost of Goods, Product Line [Member] | |||
Concentration Risk, Percentage | 57.00% | 56.00% | 55.00% |
Allowance for Doubtful Accounts Receivable, Current | $ 100,000 | $ 100,000 | |
Goodwill, Impairment Loss | 0 | ||
Asset Impairment Charges | $ 0 | ||
Number of Reportable Segments | 1 | ||
Cash, Uninsured Amount | $ 1,100,000 | ||
Marketing and Advertising Expense | 9,300,000 | 7,800,000 | $ 6,200,000 |
Reimbursement Revenue | $ 2,500,000 | $ 1,900,000 | $ 1,500,000 |
Note 2 - Estimated Useful Lives
Note 2 - Estimated Useful Lives of the Related Assets (Details) | 12 Months Ended |
Sep. 30, 2015 | |
Land Improvements [Member] | Minimum [Member] | |
Useful lives | 5 years |
Land Improvements [Member] | Maximum [Member] | |
Useful lives | 15 years |
Building [Member] | |
Useful lives | 40 years |
Leasehold and Building Improvements [Member] | Minimum [Member] | |
Useful lives | 1 year |
Leasehold and Building Improvements [Member] | Maximum [Member] | |
Useful lives | 25 years |
Capitalized Real Estate Leases for Build-to-suit Stores [Member] | |
Useful lives | 40 years |
Assets Held under Capital Leases [Member] | |
Useful lives | 15 years |
Furniture and Fixtures [Member] | Minimum [Member] | |
Useful lives | 5 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Useful lives | 7 years |
Computer Hardware and Software [Member] | Minimum [Member] | |
Useful lives | 3 years |
Computer Hardware and Software [Member] | Maximum [Member] | |
Useful lives | 5 years |
Note 3 - Earnings Per Share (De
Note 3 - Earnings Per Share (Details Textual) - USD ($) | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Restricted Stock Units (RSUs) [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 120,674 | 3,558 | 50,320 |
Dividends | $ 0 | $ 0 | $ 0 |
Common Stock, Shares, Issued | 22,496,628 | 22,485,488 | |
Preferred Stock, Shares Issued | 0 | ||
Preferred Stock, Shares Outstanding | 0 | ||
Common Stock, Shares Authorized | 50,000,000 | 50,000,000 | |
Common Stock, Shares, Outstanding | 22,496,628 | 22,485,488 | |
Preferred Stock, Shares Authorized | 10,000,000 |
Note 3 - Basic and Diluted Earn
Note 3 - Basic and Diluted Earnings Per Share (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Net income | $ 16,204 | $ 13,473 | $ 10,552 |
Basic (in shares) | 22,490,260 | 22,466,432 | 22,399,346 |
Effect of dilutive securities (in shares) | 10,573 | 13,403 | 42,036 |
Weighted average number of shares of common stock outstanding including the effect of dilutive securities (in shares) | 22,500,833 | 22,479,835 | 22,441,382 |
Basic earnings per share (in dollars per share) | $ 0.72 | $ 0.60 | $ 0.47 |
Diluted earnings per share (in dollars per share) | $ 0.72 | $ 0.60 | $ 0.47 |
Note 6 - Property and Equipme46
Note 6 - Property and Equipment (Details Textual) - USD ($) | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Capital and Financing Lease Obligations [Member] | |||
Interest Paid, Capitalized | $ 300,000 | $ 400,000 | $ 0 |
Construction in Progress [Member] | Build to Suit Lease in Process [Member] | |||
Property, Plant and Equipment, Gross | 0 | 2,300,000 | |
Construction in Progress [Member] | Assets Held under Capital Leases [Member] | |||
Property, Plant and Equipment, Gross | 900,000 | 0 | |
Construction in Progress [Member] | |||
Property, Plant and Equipment, Gross | 10,150,000 | 6,867,000 | |
Software Development [Member] | |||
Property, Plant and Equipment, Additions | 200,000 | 100,000 | |
Leasehold and Building Improvements and Fixtures and Equipment [Member] | |||
Property, Plant and Equipment, Additions | 600,000 | 500,000 | |
Property, Plant and Equipment, Additions, Capitalized Internal Staff Compensation [Member] | |||
Depreciation | 400,000 | 300,000 | 300,000 |
Interest Paid, Capitalized | 309 | 364 | $ 0 |
Property, Plant and Equipment, Gross | $ 235,608,000 | $ 189,342,000 |
Note 6 - Property and Equipme47
Note 6 - Property and Equipment Components (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Construction in Progress [Member] | ||
Property, Plant and Equipment, Gross | $ 10,150 | $ 6,867 |
Assets Held Under Real Estate Leases for Build to Suit Stores [Member] | ||
Property, Plant and Equipment, Gross | $ 24,774 | 17,107 |
Useful lives | 40 years | |
Assets Held under Capital Leases [Member] | ||
Property, Plant and Equipment, Gross | $ 4,866 | 4,866 |
Useful lives | 15 years | |
Land [Member] | ||
Property, Plant and Equipment, Gross | $ 192 | 192 |
Building [Member] | ||
Property, Plant and Equipment, Gross | $ 4,980 | 3,985 |
Useful lives | 40 years | |
Land Improvements [Member] | Minimum [Member] | ||
Useful lives | 5 years | |
Land Improvements [Member] | Maximum [Member] | ||
Useful lives | 15 years | |
Land Improvements [Member] | ||
Property, Plant and Equipment, Gross | $ 1,015 | 1,000 |
Leasehold and Building Improvements [Member] | Minimum [Member] | ||
Useful lives | 1 year | |
Leasehold and Building Improvements [Member] | Maximum [Member] | ||
Useful lives | 25 years | |
Leasehold and Building Improvements [Member] | ||
Property, Plant and Equipment, Gross | $ 91,865 | 74,691 |
Furniture and Fixtures [Member] | Minimum [Member] | ||
Useful lives | 5 years | |
Furniture and Fixtures [Member] | Maximum [Member] | ||
Useful lives | 7 years | |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment, Gross | $ 83,932 | 69,894 |
Computer Hardware and Software [Member] | Minimum [Member] | ||
Useful lives | 3 years | |
Computer Hardware and Software [Member] | Maximum [Member] | ||
Useful lives | 5 years | |
Computer Hardware and Software [Member] | ||
Property, Plant and Equipment, Gross | $ 13,834 | 10,740 |
Property, Plant and Equipment, Gross | 235,608 | 189,342 |
Less accumulated depreciation and amortization | (90,389) | (69,118) |
Property and equipment, net | $ 145,219 | $ 120,224 |
Note 6 - Property and Equipme48
Note 6 - Property and Equipment Components (Details) (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Unamortized Land [Member] | ||
Property, Plant and Equipment, Gross | $ 617 | $ 617 |
Property, Plant and Equipment, Gross | $ 235,608 | $ 189,342 |
Note 6 - Depreciation and Amort
Note 6 - Depreciation and Amortization Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Cost of Sales [Member] | |||
Depreciation and amortization | $ 796 | $ 770 | $ 709 |
Stores [Member] | |||
Depreciation and amortization | 19,635 | 15,861 | 12,365 |
General and Administrative Expense [Member] | |||
Depreciation and amortization | 906 | 581 | 422 |
Depreciation and amortization | $ 21,337 | $ 17,212 | $ 13,496 |
Note 7 - Goodwill and Other I50
Note 7 - Goodwill and Other Intangible Assets (Details Textual) - USD ($) | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Maximum [Member] | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | $ 100,000 | ||
Amortization of Intangible Assets | 100,000 | $ 100,000 | |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 100,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 0 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 0 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $ 0 | ||
Amortization of Intangible Assets | $ 0 |
Note 7 - Summary of Goodwill an
Note 7 - Summary of Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Noncompete Agreements [Member] | Minimum [Member] | ||
Amortizable intangible assets: | ||
Finite-Lived Intangible Asset, Useful Life | 2 years | |
Noncompete Agreements [Member] | Maximum [Member] | ||
Amortizable intangible assets: | ||
Finite-Lived Intangible Asset, Useful Life | 5 years | |
Noncompete Agreements [Member] | ||
Amortizable intangible assets: | ||
Finite-Lived Intangible Asset, Useful Life | 2 years | |
Finite-lived intangible assets, gross | $ 353 | $ 293 |
Favorable Operating Leases [Member] | ||
Amortizable intangible assets: | ||
Finite-Lived Intangible Asset, Useful Life | 5 years | |
Finite-lived intangible assets, gross | $ 339 | 339 |
Other Intangible Assets [Member] | Minimum [Member] | ||
Amortizable intangible assets: | ||
Finite-Lived Intangible Asset, Useful Life | 182 days | |
Other Intangible Assets [Member] | Maximum [Member] | ||
Amortizable intangible assets: | ||
Finite-Lived Intangible Asset, Useful Life | 1 year | |
Other Intangible Assets [Member] | ||
Amortizable intangible assets: | ||
Finite-lived intangible assets, gross | $ 27 | 22 |
Finite-lived intangible assets, gross | 719 | 654 |
Less accumulated amortization | (683) | $ (654) |
Amortized intangible assets, net | 36 | |
Trademark | 389 | $ 389 |
Total other intangibles, net | 425 | 389 |
Goodwill | 5,198 | 511 |
Total goodwill and other intangibles, net | $ 5,623 | $ 900 |
Note 8 - Composition of Accrued
Note 8 - Composition of Accrued Expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Payroll and employee-related expenses | $ 7,795 | $ 5,886 |
Accrued income taxes payable | 5,540 | 4,868 |
Accrued property, sales and use tax payable | 4,365 | 3,409 |
Accrued marketing expenses | 532 | 421 |
Deferred revenue related to gift card sales | 864 | 725 |
Other | 553 | 513 |
Total accrued expenses | $ 19,649 | $ 15,822 |
Note 9 - Deferred Financing C53
Note 9 - Deferred Financing Costs (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Maximum [Member] | |||
Deferred Finance Costs, Noncurrent, Net | $ 100 | $ 100 | |
Amortization of Financing Costs | 100 | 100 | $ 100 |
Deferred Finance Costs, Noncurrent, Net | 21 | 36 | |
Accumulated Amortization of Noncurrent Deferred Finance Costs | 900 | 900 | |
Amortization of Financing Costs | $ 15 | $ 19 | $ 47 |
Note 10 - Long-Term Debt (Detai
Note 10 - Long-Term Debt (Details Textual) | Dec. 12, 2013USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2013USD ($) | Nov. 17, 2015USD ($) | Nov. 16, 2015USD ($) |
Revolving Credit Facility [Member] | Minimum [Member] | ||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.15% | |||||
Revolving Credit Facility [Member] | Maximum [Member] | ||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.35% | |||||
Revolving Credit Facility [Member] | Subsequent Event [Member] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 25,000,000 | $ 15,000,000 | ||||
Revolving Credit Facility [Member] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 15,000,000 | |||||
Line of Credit Facility Period by Which Maturity Date Extended | 3 years | |||||
Line of Credit Facility Additional Maximum Borrowing Capacity | $ 10,000,000 | |||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 14,000,000 | $ 14,000,000 | ||||
Letter of Credit [Member] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 3,000,000 | |||||
Letters of Credit Outstanding, Amount | 1,000,000 | |||||
Long-term Line of Credit | 0 | 0 | ||||
Interest Costs Capitalized | $ 300,000 | $ 400,000 | $ 0 | |||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.20% | |||||
Capital and Financing Lease Obligations Number of Leases | 13 | 10 | ||||
Interest Expense, Debt, Excluding Amortization | $ 3,300,000 | $ 2,900,000 | $ 2,200,000 |
Note 11 - Lease Commitments (De
Note 11 - Lease Commitments (Details Textual) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2013USD ($) | |
Maximum [Member] | ||||
Operating Leases, Income Statement, Sublease Revenue | $ 100,000 | $ 100,000 | $ 0 | |
Build to Suit Lease in Process [Member] | ||||
Construction in Progress, Gross | 0 | |||
Capital Lease Finance Obligations | 2,300,000 | |||
Assets Held under Capital Leases [Member] | ||||
Construction in Progress, Gross | 0 | |||
Capital Lease Obligations | 900,000 | |||
Building Asset and Related Capital Lease Finance Obligation [Member] | Capital Lease, Interest Expense [Member] | ||||
Capital Leases, Future Minimum Payments Due | 1,800,000 | |||
Building Asset and Related Capital Lease Finance Obligation [Member] | Capital Lease, Principal Payments [Member] | ||||
Capital Leases, Future Minimum Payments Due | 1,000,000 | |||
Building Asset and Related Capital Lease Finance Obligation [Member] | ||||
Property, Plant and Equipment, Additions | $ 3,300,000 | |||
Capital Leases, Future Minimum Payments Due | 2,800,000 | |||
Depreciation | $ 1,000,000 | |||
Chalet [Member] | ||||
Number of Properties Leased | 5 | |||
Isely Family Land Trust LLC [Member] | ||||
Number of Properties Leased | 1 | |||
FTVC, LLC [Member] | ||||
Number of Properties Leased | 1 | |||
Related Parties [Member] | ||||
Operating Leases Future Minimum Payments Due Per Lease Agreement Low End of Range | $ 100,000 | |||
Operating Leases Future Minimum Payments Due Per Lease Agreement High End of Range | 300,000 | |||
At the End of the Lease Term [Member] | ||||
Capital Lease Obligations | 0 | |||
Deferred Rent Credit, Noncurrent | 6,922,000 | 5,842,000 | ||
Incentive from Lessor | 7,975,000 | 7,246,000 | ||
Operating Leases, Rent Expense, Net | 26,300,000 | 20,500,000 | 14,800,000 | |
Pre-Opening Costs and Relocation Expenses for Stores Not Yet Opened Rent Expense | 800,000 | 1,000,000 | $ 600,000 | |
Number of Sale-Leaseback Transactions | 1 | |||
Sale Leaseback Transaction, Net Proceeds, Financing Activities | $ 5,000,000 | |||
Sale Leaseback Transaction, Deferred Gain, Gross | $ 200,000 | |||
Sale Leaseback Transaction Lease Term | 15 years | |||
Capital Lease Finance Obligations | 22,100,000 | 15,000,000 | ||
Capital Lease Obligations | $ 4,500,000 | $ 4,700,000 |
Note 11 - Future Minimum Annual
Note 11 - Future Minimum Annual Payments under Operating Leases (Details) $ in Thousands | Sep. 30, 2015USD ($) |
Third Parties [Member] | |
2,016 | $ 25,889 |
2,017 | 28,458 |
2,018 | 28,789 |
2,019 | 27,588 |
2,020 | 26,915 |
Thereafter | 235,971 |
373,610 | |
Related Parties [Member] | |
2,016 | 1,283 |
2,017 | 1,281 |
2,018 | 1,281 |
2,019 | 1,281 |
2,020 | 1,285 |
Thereafter | 7,885 |
14,296 | |
2016, Sublease Rental Income | (125) |
2016, Total OperatingLeases | 27,047 |
2017, Sublease Rental Income | (134) |
2017, Total OperatingLeases | 29,605 |
2018, Sublease Rental Income | (134) |
2018, Total OperatingLeases | 29,936 |
2019, Sublease Rental Income | (124) |
2019, Total OperatingLeases | 28,745 |
2020, Sublease Rental Income | (121) |
2020, Total OperatingLeases | 28,079 |
Thereafter, Sublease Rental Income | (338) |
Thereafter, Total OperatingLeases | 243,518 |
Total Sublease Rental Income | (976) |
Total OperatingLeases | $ 386,930 |
Note 11 - Capital and Financing
Note 11 - Capital and Financing Lease Obligations (Details) - USD ($) | Sep. 30, 2015 | Sep. 30, 2014 |
Due in Monthly Installments through Fiscal Year 2029 [Member] | ||
Capital lease finance obligations | $ 22,096,000 | $ 14,989,000 |
Due in Monthly Installments through Fiscal Year 2028 [Member] | ||
Capital lease obligations | $ 4,539,000 | 4,672,000 |
Due in Monthly Installments through Fiscal Year 2024 [Member] | ||
Capital lease finance obligations | $ 2,316,000 | |
Due in Monthly Installments through Fiscal Year 2041 [Member] | ||
Capital lease obligations | $ 972,000 | |
Capital lease finance obligations | 22,100,000 | $ 15,000,000 |
Capital lease obligations | 4,500,000 | 4,700,000 |
Total capital and financing lease obligations | 27,607,000 | 21,977,000 |
Less current portion | (333,000) | (229,000) |
Total capital and financing lease obligations, net of current portion | $ 27,274,000 | $ 21,748,000 |
Note 11 - Schedule of Future Pa
Note 11 - Schedule of Future Payments under the Terms of the Leases (Details) (Assets Held Under Real Estate Leases for Build to Suit Stores (Details) - Assets Held Under Real Estate Leases for Build to Suit Stores [Member] $ in Thousands | Sep. 30, 2015USD ($) |
Capital Lease Finance Obligations [Member] | |
2,016 | $ 2,643 |
2,016 | 177 |
2,017 | 2,625 |
2,017 | 199 |
2,018 | 2,604 |
2,018 | 234 |
2,019 | 2,578 |
2,019 | 295 |
2,020 | 2,546 |
2,020 | 329 |
Thereafter | 15,836 |
Thereafter | 4,464 |
Non-cash derecognition of capital lease finance obligations at end of lease term | 16,399 |
Non-cash derecognition of capital lease finance obligations at end of lease term | 16,399 |
28,832 | |
22,097 | |
Total Interest expense oncapital lease obligations | 28,832 |
Capital Lease Obligations [Member] | |
2016, Interest expense oncapital lease obligations | 650 |
2016, Principal payments on capital lease obligations | 151 |
2017, Interest expense oncapital lease obligations | 631 |
2017, Principal payments on capital lease obligations | 170 |
2018, Interest expense oncapital lease obligations | 609 |
2018, Principal payments on capital lease obligations | 192 |
2019, Interest expense oncapital lease obligations | 584 |
2019, Principal payments on capital lease obligations | 217 |
2020, Interest expense oncapital lease obligations | 554 |
2020, Principal payments on capital lease obligations | 247 |
Thereafter, Interest expense oncapital lease obligations | 2,460 |
Thereafter, Principal payments on capital lease obligations | 3,561 |
5,488 | |
Total Interest expense oncapital lease obligations | 5,488 |
Total Principal payments on capital lease obligations | 4,538 |
Capital and Financing Lease Obligations [Member] | |
2,016 | 3,621 |
2,017 | 3,625 |
2,018 | 3,639 |
2,019 | 3,674 |
2,020 | 3,676 |
Thereafter | 26,321 |
Non-cash derecognition of capital lease finance obligations at end of lease term | 16,399 |
Non-cash derecognition of capital lease finance obligations at end of lease term | 16,399 |
$ 60,955 |
Note 11 - Future Minimum Lease
Note 11 - Future Minimum Lease Payments for Stores Under Construction (Details) - Capital Lease Finance Obligations [Member] - Build to Suit Lease in Process [Member] $ in Thousands | Sep. 30, 2015USD ($) |
2016, Interest expense on capital lease obligations for assets under construction | $ 85 |
2016, Principal payments on capital lease obligations for assets under construction | (14) |
2016, Total future payments on capital lease obligations for assets under construction | 71 |
2017, Interest expense on capital lease obligations for assets under construction | 85 |
2017, Principal payments on capital lease obligations for assets under construction | 3 |
2017, Total future payments on capital lease obligations for assets under construction | 88 |
2018, Interest expense on capital lease obligations for assets under construction | 85 |
2018, Principal payments on capital lease obligations for assets under construction | 3 |
2018, Total future payments on capital lease obligations for assets under construction | 88 |
2019, Interest expense on capital lease obligations for assets under construction | 85 |
2019, Principal payments on capital lease obligations for assets under construction | 3 |
2019, Total future payments on capital lease obligations for assets under construction | 88 |
2020, Interest expense on capital lease obligations for assets under construction | 85 |
2020, Principal payments on capital lease obligations for assets under construction | 3 |
2020, Total future payments on capital lease obligations for assets under construction | 88 |
Thereafter, Interest expense on capital lease obligations for assets under construction | 1,253 |
Thereafter, Principal payments on capital lease obligations for assets under construction | 974 |
Thereafter, Total future payments on capital lease obligations for assets under construction | 2,227 |
Total Interest expense on capital lease obligations for assets under construction | 1,678 |
Total Principal payments on capital lease obligations for assets under construction | 972 |
Total future payments on capital lease obligations for assets under construction | $ 2,650 |
Note 12 - Share-based Compens60
Note 12 - Share-based Compensation (Details Textual) - USD ($) | 12 Months Ended | ||||
Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Jul. 17, 2012 | |
Maximum [Member] | Restricted Stock Units (RSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||||
Maximum [Member] | |||||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 200,000 | $ 200,000 | |||
Minimum [Member] | Restricted Stock Units (RSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||||
Restricted Stock Units (RSUs) [Member] | Board [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award Equivalent Value of Shares Authorized to Grant | $ 60,000 | 50,000 | |||
Restricted Stock Units (RSUs) [Member] | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 3,000,000 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 4 years | ||||
Certain Employees [Member] | |||||
Allocated Share-based Compensation Expense | $ 400,000 | 400,000 | 500,000 | ||
Board [Member] | |||||
Allocated Share-based Compensation Expense | 200,000 | 100,000 | 100,000 | ||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 200,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,090,151 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 620,580 | ||||
Allocated Share-based Compensation Expense | $ 600,000 | $ 500,000 | $ 600,000 |
Note 12 - Changes in Non-Vested
Note 12 - Changes in Non-Vested RSUs Outstanding (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Non-vested balance (in shares) | 37,194 | 86,053 |
Non-vested Weighted Average Grant Date Fair Value (in dollars per share) | $ 34.77 | $ 21.80 |
Granted (in shares) | 127,751 | 3,558 |
Granted (in dollars per share) | $ 24.14 | $ 42.16 |
Forfeited (in shares) | (17,560) | (3,868) |
Forfeited (in dollars per share) | $ 25.04 | $ 34.07 |
Vested (in shares) | (15,529) | (48,549) |
Vested (in dollars per share) | $ 32.34 | $ 12.38 |
Non-vested balance (in shares) | 131,856 | 37,194 |
Non-vested Weighted Average Grant Date Fair Value (in dollars per share) | $ 26.05 | $ 34.77 |
Note 13 - Related Party Trans62
Note 13 - Related Party Transactions (Details Textual) $ in Millions | 12 Months Ended | ||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2013USD ($) | |
Isely Family Land Trust LLC [Member] | |||
Related Party Transaction, Expenses from Transactions with Related Party | $ 0.3 | $ 0.3 | $ 0.3 |
Number of Operating Leases | 1 | ||
Chalet [Member] | |||
Related Party Transaction, Expenses from Transactions with Related Party | $ 1.1 | $ 1.3 | $ 1.3 |
Number of Operating Leases | 5 | ||
Number of Capital Leases | 1 | ||
Related Party Transaction Number of Owners That Are Non-Independent Board Members of the Entity | 4 | ||
FTVC, LLC [Member] | |||
Related Party Transaction, Expenses from Transactions with Related Party | $ 0.1 | ||
Number of Operating Leases | 1 |
Note 14 - Income Taxes (Details
Note 14 - Income Taxes (Details Textual) - USD ($) | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
State and Local Jurisdiction [Member] | ||
Operating Loss Carryforwards | $ 0 | $ 100,000 |
Operating Loss Carryforwards Utilized | $ 100,000 | |
Operating Loss Carryforwards Utilized | $ 100,000 |
Note 14 - Components of the Pro
Note 14 - Components of the Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Current federal income tax expense | $ 7,769 | $ 8,304 | $ 3,376 |
Current state income tax expense | 1,033 | 1,163 | 551 |
8,802 | 9,467 | 3,927 | |
Deferred federal income tax expense (benefit) | 514 | (1,112) | 2,156 |
Deferred state income tax expense (benefit) | 116 | (74) | 296 |
630 | (1,186) | 2,452 | |
Total provision for income taxes | $ 9,432 | $ 8,281 | $ 6,379 |
Note 14 - Reconciliation betwee
Note 14 - Reconciliation between the U.S. Federal Statutory Income Tax Rate and the Company's Effective Tax Rate (Details) | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Statutory tax rate | 35.00% | 35.00% | 34.00% |
State income taxes, net of federal income tax expense | 2.90% | 3.00% | 3.30% |
Other, net | (1.10%) | 0.10% | 0.40% |
Effective tax rate | 36.80% | 38.10% | 37.70% |
Note 14 - Deferred Taxes (Detai
Note 14 - Deferred Taxes (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Current assets | $ 866 | $ 832 |
Long-term liabilities | (6,073) | (5,409) |
Net deferred tax liabilities | $ (5,207) | $ (4,577) |
Note 14 - Tax Effects of Tempor
Note 14 - Tax Effects of Temporary Differences That Give Rise to Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Deferred tax assets | ||
Capital and financing lease obligations | $ 10,473 | $ 8,330 |
Goodwill | 2,582 | 2,937 |
Leasehold incentives | 3,025 | 2,746 |
Deferred rent | 2,627 | 2,214 |
Trademarks | 1,018 | 1,018 |
Accrued employee benefits | 729 | 590 |
Other | 363 | 322 |
Gross deferred tax assets | 20,817 | 18,157 |
Deferred tax liabilities | ||
Property and equipment | 22,909 | 19,930 |
Leasehold improvements | 3,087 | $ 2,804 |
Other | 28 | |
Gross deferred tax liabilities | (26,024) | $ (22,734) |
Net deferred tax liabilities | $ (5,207) | $ (4,577) |
Note 15 - Defined Contributio68
Note 15 - Defined Contribution Plan (Details Textual) - USD ($) | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 25.00% | ||
Defined Contribution Plan Employer Maximum Discretionary Contribution Amount per Employee | $ 2,500 | ||
Defined Contribution Plan, Cost Recognized | $ 600,000 | $ 100,000 | $ 400,000 |
Note 16 - Segment Reporting (De
Note 16 - Segment Reporting (Details Textual) | 12 Months Ended |
Sep. 30, 2015 | |
Number of Reportable Segments | 1 |
Note 16 - Sales from Natural an
Note 16 - Sales from Natural and Organic Retail Stores (Details) | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Grocery [Member] | |||
Sales percentage | 66.40% | 66.70% | 65.20% |
Dietary Supplements [Member] | |||
Sales percentage | 22.50% | 23.20% | 24.80% |
Body Care, Pet Care, and Other [Member] | |||
Sales percentage | 11.10% | 10.10% | 10.00% |
Sales percentage | 100.00% | 100.00% | 100.00% |
Note 17 - Business Combinatio71
Note 17 - Business Combination (Details Textual) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Dec. 07, 2014USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2013 | |
Nature's Pantry Inc. [Member] | |||||
Number of Stores | 1 | ||||
Nature's Pantry Inc. [Member] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | $ 1,471 | $ 1,500 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment, Adjustment | 100 | ||||
Goodwill, Period Increase (Decrease) | (100) | ||||
Goodwill | 4,700 | ||||
Payments to Acquire Businesses, Gross | $ 500 | $ 6,100 | |||
Noncompete Agreements [Member] | |||||
Finite-Lived Intangible Asset, Useful Life | 2 years | ||||
Number of Stores | 103 | 87 | 72 | ||
Goodwill | $ 5,198 | $ 511 | |||
Payments to Acquire Businesses, Gross | $ 5,601 |
Note 17 - Tangible and Intangib
Note 17 - Tangible and Intangible Assets Acquired (Details) $ in Thousands | Sep. 30, 2015USD ($) |
Nature's Pantry Inc. [Member] | |
Inventory and supplies | $ 726 |
Property and equipment | 680 |
Total provisionally allocated to tangible and identifiable intangible assets | 1,471 |
Other intangible assets | $ 65 |
Note 19 - Unaudited Quarterly F
Note 19 - Unaudited Quarterly Financial Data (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Net sales | $ 162,397 | $ 158,650 | $ 157,744 | $ 145,887 | $ 135,715 | $ 134,036 | $ 130,343 | $ 120,580 | $ 624,678 | $ 520,674 | $ 430,655 |
Cost of goods sold and occupancy costs | 115,607 | 112,508 | 110,874 | 103,593 | 96,959 | 95,424 | 91,590 | 85,199 | 442,582 | 369,172 | 304,922 |
Gross profit | 46,790 | 46,142 | 46,870 | 42,294 | 38,756 | 38,612 | 38,753 | 35,381 | 182,096 | 151,502 | 125,733 |
Store expenses | 35,113 | 33,508 | 32,461 | 31,049 | 28,394 | 28,213 | 26,877 | 25,173 | 132,131 | 108,657 | 89,935 |
Administrative expenses | 4,809 | 4,322 | 4,156 | 4,227 | 3,801 | 3,585 | 3,548 | 3,889 | 17,514 | 14,823 | 13,479 |
Pre-opening and relocation expenses | 1,297 | 1,078 | 870 | 577 | 945 | 729 | 1,211 | 889 | 3,822 | 3,774 | 3,231 |
Operating income | 5,571 | 7,234 | 9,383 | 6,441 | 5,616 | 6,085 | 7,117 | 5,430 | 28,629 | 24,248 | 19,088 |
Interest expense | 776 | 768 | 714 | 735 | 379 | 706 | 704 | 707 | 2,993 | 2,496 | 2,166 |
Income before income taxes | 4,795 | 6,466 | 8,669 | 5,706 | 5,237 | 5,379 | 6,414 | 4,724 | 25,636 | 21,754 | 16,931 |
Provision for income taxes | 1,903 | 2,121 | 3,266 | 2,142 | 2,049 | 2,015 | 2,415 | 1,802 | 9,432 | 8,281 | 6,379 |
Net income | $ 2,892 | $ 4,345 | $ 5,403 | $ 3,564 | $ 3,188 | $ 3,364 | $ 3,999 | $ 2,922 | $ 16,204 | $ 13,473 | $ 10,552 |
Basic earnings per share (in dollars per share) | $ 0.13 | $ 0.19 | $ 0.24 | $ 0.16 | $ 0.14 | $ 0.15 | $ 0.18 | $ 0.13 | $ 0.72 | $ 0.60 | $ 0.47 |
Diluted earnings per share (in dollars per share) | $ 0.13 | $ 0.19 | $ 0.24 | $ 0.16 | $ 0.14 | $ 0.15 | $ 0.18 | $ 0.13 | $ 0.72 | $ 0.60 | $ 0.47 |
Other income (expense): | |||||||||||
Dividends and interest income | $ 1 | $ 1 | $ 2 | $ 9 | |||||||
Interest expense | $ (776) | $ (768) | $ (714) | $ (735) | $ (379) | $ (706) | (704) | (707) | $ (2,993) | (2,496) | (2,166) |
Total other expense | (379) | (706) | (703) | (706) | (2,993) | (2,494) | (2,157) | ||||
Income before income taxes | 4,795 | 6,466 | 8,669 | 5,706 | 5,237 | 5,379 | 6,414 | 4,724 | 25,636 | 21,754 | 16,931 |
Provision for income taxes | (1,903) | (2,121) | (3,266) | (2,142) | (2,049) | (2,015) | (2,415) | (1,802) | (9,432) | (8,281) | (6,379) |
Net income | $ 2,892 | $ 4,345 | $ 5,403 | $ 3,564 | $ 3,188 | $ 3,364 | $ 3,999 | $ 2,922 | $ 16,204 | $ 13,473 | $ 10,552 |
Basic earnings per share (in dollars per share) | $ 0.13 | $ 0.19 | $ 0.24 | $ 0.16 | $ 0.14 | $ 0.15 | $ 0.18 | $ 0.13 | $ 0.72 | $ 0.60 | $ 0.47 |
Diluted earnings per share (in dollars per share) | $ 0.13 | $ 0.19 | $ 0.24 | $ 0.16 | $ 0.14 | $ 0.15 | $ 0.18 | $ 0.13 | $ 0.72 | $ 0.60 | $ 0.47 |
Note 20 - Subsequent Events (De
Note 20 - Subsequent Events (Details Textual) - Revolving Credit Facility [Member] - USD ($) | Nov. 17, 2015 | Nov. 16, 2015 | Dec. 12, 2013 |
Subsequent Event [Member] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 25,000,000 | $ 15,000,000 | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 15,000,000 |