Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2016 | Dec. 02, 2016 | Mar. 31, 2016 | |
Document Information [Line Items] | |||
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) | 22,453,463 | ||
Entity Public Float | $ 204,601,384 | ||
Document Type | 10-K | ||
Document Period End Date | Sep. 30, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2016 | Sep. 30, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 4,017,000 | $ 2,915,000 |
Accounts receivable, net | 3,747,000 | 2,576,000 |
Merchandise inventory | 86,330,000 | 74,818,000 |
Prepaid expenses and other current assets | 3,233,000 | 1,108,000 |
Current assets | 866,000 | |
Total current assets | 97,327,000 | 82,283,000 |
Property and equipment, net | 178,297,000 | 145,219,000 |
Other assets: | ||
Deposits and other assets | 971,000 | 778,000 |
Total goodwill and other intangibles, net | 5,601,000 | 5,623,000 |
Deferred financing costs, net | 50,000 | 21,000 |
Total other assets | 6,622,000 | 6,422,000 |
Total assets | 282,246,000 | 233,924,000 |
Current liabilities: | ||
Accounts payable | 53,615,000 | 49,896,000 |
Accrued expenses | 12,448,000 | 19,649,000 |
Capital and financing lease obligations, current portion | 478,000 | 333,000 |
Total current liabilities | 66,541,000 | 69,878,000 |
Long-term liabilities: | ||
Capital and financing lease obligations, net of current portion | 31,429,000 | 27,274,000 |
Revolving credit facility | 27,428,000 | |
Deferred income tax liabilities | 12,178,000 | 6,073,000 |
Deferred compensation | 757,000 | 314,000 |
Deferred rent | 8,809,000 | 6,922,000 |
Leasehold incentives | 8,379,000 | 7,975,000 |
Total long-term liabilities | 88,980,000 | 48,558,000 |
Total liabilities | 155,521,000 | 118,436,000 |
Commitments (Notes 10 and 17) | ||
Stockholders’ equity: | ||
Common stock, $0.001 par value. 50,000,000 shares authorized, 22,510,279 and 22,496,628 shares issued, at 2016 and 2015, respectively and 22,452,609 and 22,496,628 outstanding, at 2016 and 2015, respectively | 23,000 | 22,000 |
Additional paid-in capital | 55,437,000 | 54,982,000 |
Retained earnings | 71,955,000 | 60,484,000 |
Common stock in treasury at cost, 57,670 and no shares, at 2016 and 2015, respectively | (690,000) | 0 |
Total stockholders’ equity | 126,725,000 | 115,488,000 |
Total liabilities and stockholders’ equity | $ 282,246,000 | $ 233,924,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Sep. 30, 2016 | Sep. 30, 2015 |
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) | 22,510,279 | 22,496,628 |
Common stock, shares outstanding (in shares) | 22,452,609 | 22,496,628 |
Treasury stock, shares (in shares) | 57,670 | 0 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Net sales | $ 705,499 | $ 624,678 | $ 520,674 |
Cost of goods sold and occupancy costs | 503,727 | 442,582 | 369,172 |
Gross profit | 201,772 | 182,096 | 151,502 |
Store expenses | 156,158 | 132,131 | 108,657 |
Administrative expenses | 19,242 | 17,514 | 14,823 |
Pre-opening and relocation expenses | 5,993 | 3,822 | 3,774 |
Operating income | 20,379 | 28,629 | 24,248 |
Other income (expense): | |||
Dividends and interest income | 2 | ||
Interest expense | (3,044) | (2,993) | (2,496) |
Total other expense, net | (3,044) | (2,993) | (2,494) |
Income before income taxes | 17,335 | 25,636 | 21,754 |
Provision for income taxes | (5,864) | (9,432) | (8,281) |
Net income | $ 11,471 | $ 16,204 | $ 13,473 |
Net income per share of common stock: | |||
Basic (in dollars per share) | $ 0.51 | $ 0.72 | $ 0.60 |
Diluted (in dollars per share) | $ 0.51 | $ 0.72 | $ 0.60 |
Weighted average number of shares of common stock outstanding: | |||
Basic (in shares) | 22,492,986 | 22,490,260 | 22,466,432 |
Diluted (in shares) | 22,507,152 | 22,500,833 | 22,479,835 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Operating activities: | |||
Net income | $ 11,471 | $ 16,204 | $ 13,473 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 25,533 | 21,337 | 17,212 |
(Gain) loss on disposal of property and equipment | (3) | 56 | 1 |
Share-based compensation | 879 | 573 | 532 |
Excess tax benefit from share-based compensation | (399) | ||
Deferred income tax expense (benefit) | 6,971 | 630 | (1,186) |
Non-cash interest expense | 13 | 15 | 19 |
Interest accrued on investments and amortization of premium | 9 | ||
Changes in operating assets and liabilities | |||
Accounts receivable, net | (1,171) | (430) | 255 |
Income tax receivable | (1,776) | 612 | |
Merchandise inventory | (11,512) | (15,711) | (12,909) |
Prepaid expenses and other assets | (542) | (533) | (665) |
Accounts payable | 3,314 | 12,891 | 5,202 |
Accrued expenses | (7,345) | 3,848 | 6,952 |
Deferred compensation | 443 | 314 | |
Deferred rent and leasehold incentives | 2,552 | 1,809 | 2,641 |
Net cash provided by operating activities | 28,827 | 41,003 | 31,749 |
Investing activities: | |||
Acquisition of property and equipment | (53,759) | (36,750) | (36,512) |
Proceeds from sale of property and equipment | 19 | 13 | |
Payment for acquisition | (5,601) | ||
Proceeds from maturity of available-for-sale securities | 1,140 | ||
Decrease in restricted cash | 500 | ||
Net cash used in investing activities | (53,740) | (42,338) | (34,872) |
Financing activities: | |||
Borrowings under credit facility | 234,604 | 202,878 | 46,440 |
Repayments under credit facility | (207,176) | (202,878) | (46,440) |
Repurchases of common stock | (829) | ||
Capital and financing lease obligations payments | (423) | (247) | (182) |
Contingent consideration payments for acquisition | (514) | ||
Excess tax benefit from share-based compensation | 399 | ||
Payments on withholding tax for restricted stock unit vesting | (119) | (102) | (83) |
Loan fees paid | (42) | (30) | |
Net cash provided by (used in) financing activities | 26,015 | (863) | 104 |
Net increase (decrease) in cash and cash equivalents | 1,102 | (2,198) | (3,019) |
Cash and cash equivalents, beginning of year | 2,915 | 5,113 | 8,132 |
Cash and cash equivalents, end of year | 4,017 | 2,915 | 5,113 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 331 | 63 | 16 |
Cash paid for interest on capital and financing lease obligations, net of capitalized interest of $538, $309 and $364, respectively | 2,637 | 2,809 | 2,423 |
Income taxes paid | 6,370 | 8,194 | 3,762 |
Supplemental disclosures of non-cash investing and financing activities: | |||
Acquisition of property and equipment not yet paid | 6,837 | 6,429 | 3,260 |
Property acquired through capital and financing lease obligations | 4,438 | 5,772 | 2,300 |
Direct bank to bank payment for a change in credit facility provider | $ 18,858 |
Consolidated Statements of Cas6
Consolidated Statements of Cash Flows (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Capitalized interest | $ 538 | $ 309 | $ 364 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total |
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 | |||
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 | ||||
Balances at Sep. 30, 2014 | $ 22 | 54,552 | 44,280 | 98,854 | |
Net income | 16,204 | 16,204 | |||
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 | |
Repurchase of common stock (in shares) | |||||
Repurchase of common stock | |||||
Net income | 11,471 | 11,471 | |||
Share-based compensation (in shares) | 23,951 | ||||
Share-based compensation | $ 1 | 609 | 139 | 749 | |
Income Tax Effect from Share-based Compensation | (154) | $ (154) | |||
Balances (in shares) at Sep. 30, 2016 | 22,452,609 | 22,452,609 | |||
Balances at Sep. 30, 2016 | $ 23 | 55,437 | 71,955 | (690) | $ 126,725 |
Repurchase of common stock (in shares) | (67,970) | (67,970) | |||
Repurchase of common stock | $ (829) | $ (829) |
Note 1 - Organization
Note 1 - Organization | 12 Months Ended |
Sep. 30, 2016 | |
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 126 stores as of September 30, 2016, including 36 stores in Colorado, 18 in Texas, 12 in Arizona, eight each in Kansas and Oregon, seven in Oklahoma, five each in New Mexico and Utah, four each in Idaho and Montana, three each in Missouri, Nebraska and Nevada, two each in Arkansas, North Dakota, Washington and Wyoming, and one each in Iowa and Minnesota. The Company also has a bulk food repackaging facility and distribution center in Colorado. The Company had 103 and 87 stores as of September 30, 2015 and 2014, respectively. |
Note 2 - Basis of Presentation
Note 2 - Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Basis of Presentation and Significant 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) and Vitamin Cottage Two Ltd. Liability Company (VC2). 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. 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 as of September 30, 2016 and 2015. 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 $3.8 million as of September 30, 2016. Vendor Concentration For the years ended September 30, 2016, 2015 and 2014, purchases from the Company’s largest vendor and its subsidiaries represented approximately 59%, 57% and 56%, 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 useful life of the relevant asset. 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. As of September 30, 2016 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. As of September 30, 2016, 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 credit facility using the straight-line method. Leases The Company leases retail stores, a bulk food repackaging facility and distribution center and administrative offices under long-term operating or capital or 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 and records a sale when a customer redeems the gift card. 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, 2016, 2015 and 2014 were approximately $10.8 million, $9.3 million and $7.8 million, respectively, net of vendor reimbursements received for newsletter advertising of approximately $3.2 million, $2.5 million and $1.9 million for the years ended September 30, 2016, 2015 and 2014, respectively. S hare - B ased C ompensation The Company adopted the 2012 Omnibus Incentive Plan in connection with its initial public offering 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 March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-09, “Improvements to Employee Share-Based Payment Accounting,” Topic 718, “Compensation-Stock Compensation” (ASU 2016-09). ASU 2016-09 includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements. The main provision requires all excess tax benefits and tax deficiencies to be recognized as income tax benefit or expense in the statement of income. The tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. The ASU also allows an entity to make an entity-wide election to either estimate the number of awards that are expected to vest (current GAAP) or account for forfeitures when they occur. Other provisions in ASU 2016-09 permit tax withholding up to the maximum statutory tax rates in the applicable jurisdictions. Under ASU 2016-09 excess tax benefits must be classified along with other income tax cash flows as an operating activity. The provisions of ASU 2016-09 are effective for the Company’s first quarter of the fiscal year ending September 30, 2018. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of ASU 2016-09 will have on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases,” Topic 842, “Leases” (ASU 2016-02). ASU 2016-02 intends to improve financial reporting about leasing transactions. The ASU will require organizations that lease assets to recognize on the balance sheet assets and liabilities for the rights and obligations created by those leases. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or capital. Operating leases will result in straight-line expense while capital leases will result in a front-loaded expense pattern. Classification will be based on criteria that are largely similar to those applied in current lease accounting, but without explicit bright lines. The amendments also require certain quantitative and qualitative disclosures. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 and interim periods within those years. The provisions of ASU 2016-02 are effective for the Company’s first quarter of the fiscal year ending September 30, 2020. Early adoption is permitted. The new standard must be adopted using a modified retrospective transition, and provides for certain practical expedients. Transition will require application of the new guidance at the beginning of the earliest comparative period presented. The Company is currently evaluating the impact that the adoption of ASU 2016-02 will have on its consolidated financial statements but expects it to have a significant impact on its balance sheet due to the number of operating leases to which the Company is a party. In November 2015, the 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. The amendments in ASU 2015-17 require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The Company elected early adoption of the provisions of ASU 2015-17 prospectively for the period ended March 31, 2016 and thereafter and has presented its deferred tax liabilities and assets as noncurrent in its consolidated financial statements as of March 31, 2016 and periods ended thereafter. 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 does not expect the adoption of these provisions to have a significant impact on the Company’s 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 does not expect the adoption of these provisions to have a significant impact on the Company’s 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 adoption is permitted only for 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 is currently evaluating the impact that the adoption of ASU 2014-09 will have on its consolidated financial statements. |
Note 3 - Earnings Per Share
Note 3 - Earnings Per Share | 12 Months Ended |
Sep. 30, 2016 | |
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, 2016, 2015 and 2014, dollars in thousands, except per share data: Year ended September 30, 201 6 201 5 201 4 Net income $ 11,471 16,204 13,473 Weighted average number of shares of common stock outstanding 22,492,986 22,490,260 22,466,432 Effect of dilutive securities 14,166 10,573 13,403 Weighted average number of shares of common stock outstanding including the effect of dilutive securities 22,507,152 22,500,833 22,479,835 Basic earnings per share $ 0.51 0.72 0.60 Diluted earnings per share $ 0.51 0.72 0.60 There were 61,115, 120,674 and 3,558 non-vested restricted stock units (RSUs) for the years ended September 30, 2016, 2015 and 2014, respectively, excluded from the calculation as they are antidilutive. The Company did not declare or pay any dividends in the years ended September 30, 2016, 2015 or 2014. As of September 30, 2016, the Company had 50,000,000 shares of common stock authorized, of which 22,510,279 shares were issued and 22,452,609 were outstanding, as well as 10,000,000 shares of preferred common stock authorized, of which none was issued and outstanding. |
Note 4 - Fair Value Measurement
Note 4 - Fair Value Measurements | 12 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 4 . 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, 2016 and 2015, the Company did not have any financial assets or liabilities that were subject to fair value measurements. The carrying amounts of the Company’s financial assets and liabilities, including cash and cash equivalents, restricted cash, accounts receivable, accounts payable and other accrued expenses, approximate fair value because of the short maturity of those assets and liabilities. |
Note 5 - Property and Equipment
Note 5 - Property and Equipment | 12 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 5 . Property and Equipment The Company had the following property and equipment balances as of September 30, 2016 and 2015, dollars in thousands: Useful lives As of September 30, (in years) 201 6 201 5 Construction in process n/a $ 6,561 10,150 Capitalized real estate leases for build-to-suit stores, including unamortized land of $617 and $617, respectively 40 28,393 24,774 Capitalized real estate leases 15 5,735 4,866 Land n/a 192 192 Buildings 12,546 4,980 Land improvements 5 - 24 1,055 1,015 Leasehold and building improvements 1 - 25 118,119 91,865 Fixtures and equipment 5 - 7 103,415 83,932 Computer hardware and software 3 - 5 16,737 13,834 292,753 235,608 Less accumulated depreciation and amortization (114,456 ) (90,389 ) Property and equipment, net $ 178,297 145,219 As of September 30, 2016 and 2015, construction in process included $1.1 million and approximately zero, 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, 2016 and 2015, construction in process included zero and $0.9 million, respectively, for capital real estate leases. Capitalized costs for computer software development were less than $0.1 million and $0.2 million for the years ended September 30, 2016 and 2015, 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 $0.9 million and $0.6 million, for the years ended September 30, 2016 and 2015, respectively, related to internal staff compensation. Interest costs of approximately $0.5 million, $0.3 million and $0.4 million were capitalized for the years ended September 30, 2016, 2015 and 2014, respectively. Depreciation expense related to capitalized internal staff compensation was approximately $0.5 million, $0.4 million and $0.3 million for the years ended September 30, 2016, 2015, and 2014, respectively. Depreciation and amortization expense for the years ended September 30, 2016, 2015 and 2014 is summarized as follows, dollars in thousands: Year ended September 30, 201 6 201 5 201 4 Depreciation and amortization expense included in cost of goods sold and occupancy costs $ 868 796 770 Depreciation and amortization expense included in store expenses 23,428 19,635 15,861 Depreciation and amortization expense included in administrative expenses 1,237 906 581 Total depreciation and amortization expense $ 25,533 21,337 17,212 |
Note 6 - Goodwill and Other Int
Note 6 - Goodwill and Other Intangible Assets | 12 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 6 . Goodwill and Other Intangible Assets Goodwill and other intangible assets as of September 30, 2016 and 2015, are summarized as follows, dollars in thousands: Useful lives As of September 30, (in years) 201 6 201 5 Amortizable intangible assets: Covenants-not-to-compete 2 - 5 $ 353 353 Favorable operating lease 5 — 339 Other intangibles 0.5 - 1 41 27 Amortizable intangible assets 394 719 Less accumulated amortization (380 ) (683 ) Amortizable intangible assets, net 14 36 Trademark Indefinite 389 389 Total other intangibles, net 403 425 Goodwill Indefinite 5,198 5,198 Total goodwill and other intangibles, net $ 5,601 5,623 Amortization expense was less than $0.1 million, less than $0.1 million and $0 million for the years ended September 30, 2016, 2015 and 2014, respectively. The aggregate estimated amortization expense for the years ending September 30, 2017 and 2018 is less than $0.1 million. There is no estimated amortization expense for the years ending September 30, 2019, 2020 and 2021. |
Note 7 - Accrued Expenses
Note 7 - Accrued Expenses | 12 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 7 . Accrued Expenses The composition of accrued expenses as of September 30, 2016 and 2015, is summarized as follows, dollars in thousands: As of September 30, 201 6 201 5 Payroll and employee-related expenses $ 4,395 7,795 Accrued income taxes payable — 5,540 Accrued property, sales and use tax payable 5,648 4,365 Accrued marketing expenses 567 532 Deferred revenue related to gift card sales 866 864 Other 972 553 Total accrued expenses $ 12,448 19,649 |
Note 8 - Deferred Financing Cos
Note 8 - Deferred Financing Costs | 12 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Other Assets Disclosure [Text Block] | 8 . Deferred Financing Costs The Company has capitalized costs incurred in securing its credit facility (see Note 9). Deferred financing costs, net of accumulated amortization were less than $0.1 million as of September 30, 2016 and 2015. Accumulated amortization was less than $0.1 million and $0.9 million as of September 30, 2016 and 2015, respectively. |
Note 9 - Long-term Debt
Note 9 - Long-term Debt | 12 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Debt and Capital Leases Disclosures [Text Block] | 9 . Long-Term Debt Credit Facility On January 28, 2016, the Company entered into a new $30.0 million credit facility, including a $5.0 million sublimit for standby letters of credit (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 and VC2. The Credit Facility is secured by a lien on substantially all of the Company’s assets. On May 10, 2016, the operating company entered into an amendment to the Credit Facility, pursuant to which the amount available for borrowing thereunder was increased to $45.0 million, including a $5.0 million sublimit for standby letters of credit. The Company has the ability to increase the amount available for borrowing by an additional amount that may not exceed $5.0 million if the existing lenders or other eligible lenders agree to provide an additional commitment or commitments. The Company has the right to borrow, prepay and re-borrow amounts under the Credit Facility at any time prior to the maturity date. The Credit Facility matures on January 31, 2021. For floating rate borrowings under the Credit Facility, interest is determined by the lender’s administrative agent based on the most recent compliance certificate of the operating company and stated at the base rate less the lender spread based upon 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 based upon certain financial measures. The unused commitment fee is based upon certain financial measures. The Credit Facility requires compliance with certain customary operational and financial covenants, including a leverage ratio. The Credit Facility also contains certain other customary limitations on the Company’s ability to incur additional debt, guarantee other obligations, grant liens on assets and make investments or acquisitions, among other limitations. 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 incurred in the ordinary course of business, including cash dividends to the holding company for the repurchase of shares of common stock in an amount not to exceed $10.0 million. At the same time it entered into the Credit Facility, the Company terminated its prior credit agreement (the Prior Credit Facility). The Company had $27.4 million outstanding under the Credit Facility as of September 30, 2016 and zero outstanding under the Prior Credit Facility as of September 30, 2015. As of September 30, 2016, 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 Facility. 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 Prior Credit Facility. The Company had $16.6 million available for borrowing under the Credit Facility as of September 30, 2016 and $14.0 million available for borrowing under the Prior Credit Facility as of September 30, 2015. Capital and Financing Lease Obligation s The Company had 16 and 13 leases as of September 30, 2016 and 2015, respectively, that are included in capital and financing lease obligations (see Notes 2 and 10). 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 10). 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 $3.5 million, $3.3 million and $2.9 million in the years ended September 30 , 2016, 2015 and 2014, respectively. Interest expense for the years ended September 30, 2016, 2015 and 2014 relates primarily to interest on capital and financing lease obligations. The Company capitalized interest of approximately $0.5 million, $0.3 million and $0.4 million for the years ended September 30, 2016, 2015 and 2014, respectively . |
Note 10 - Lease Commitments
Note 10 - Lease Commitments | 12 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Leases of Lessee Disclosure [Text Block] | 1 0 . 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, 2016 and 2015 was approximately $8.8 million and $6.9 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, 2016 and 2015 were approximately $8.4 million and $8.0 million, respectively. Sublease rental income was less than $0.1 million for each of the years ended September 30, 2016, 2015 and 2014, respectively. 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 p arties Related p arties Sublease rental income Total o perating l eases 2017 $ 35,463 1,329 (315 ) 36,477 2018 38,325 1,329 (342 ) 39,312 2019 37,412 1,329 (332 ) 38,409 2020 36,739 1,333 (296 ) 37,776 2021 35,524 1,310 (283 ) 36,551 Thereafter 319,577 6,595 (928 ) 325,244 Total payments $ 503,040 13,225 (2,496 ) 513,769 Total rent expense, including common area expenses and warehouse rent, for the years ended September 30, 2016, 2015, and 2014 totaled approximately $34.6 million, $26.3 million and $20.5 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 $1.4 million, $0.8 million and $1.0 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, 2016, 2015 and 2014, respectively. Capital and Financing Lease Obligations Capital and financing lease obligations as of September 30, 2016 and 2015, were as follows, dollars in thousands: As of September 30, 201 6 201 5 Capital lease finance obligations, due in monthly installments through fiscal year 2031 $ 25,619 22,096 Capital lease obligations due in monthly installments through fiscal year 2041 5,213 4,539 Capital lease finance obligations for assets under construction, due in monthly installments through fiscal year 2032 1,075 — Capital lease obligations for assets under construction, due in monthly installments through fiscal year 2041 — 972 Total capital and financing lease obligations 31,907 27,607 Less current portion (478 ) (333 ) Total capital and financing lease obligations, net of current portion $ 31,429 27,274 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 $25.6 million and $22.1 million as of September 30, 2016 and 2015, respectively. The leases that created the obligations expire or become subject to renewal clauses at various dates through fiscal year 2031. 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. Capital lease obligations The Company had capital lease obligations totaling approximately $5.2 million and $4.5 million as of September 30, 2016 and 2015, 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 2041. 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, 2016, the Company had $1.1 million in construction in process related to capital lease finance obligations. As of September 30, 2015, the Company had no construction in process related to capital lease finance obligations. 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 The Company had recorded approximately zero and $1.0 million for capital lease obligations for assets under construction as of September 30, 2016 and 2015, respectively. 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, 2016 are as follows, dollars in thousands: Interest Principal s on Interest Principal payments on Total future capital lease finance and capital lease obligations 2017 $ 2,793 261 528 214 3,796 2018 2,768 300 505 236 3,809 2019 2,737 367 481 261 3,846 2020 2,701 405 453 288 3,847 2021 2,658 479 423 319 3,879 Thereafter 14,751 5,220 2,511 3,895 26,377 Non-cash derecognition of capital lease finance obligations at end of lease term — 18,587 — — 18,587 Total payments $ 28,408 25,619 4,901 5,213 64,141 Future payments under the terms of the lease for the store location at which construction was in progress as of September 30, 2016, based on the store opening date in the first quarter of fiscal year 2017, are as follows, dollars in thousands: Interest expense on capital lease finance obligation s for assets under construction Principal payments on ital lease finance obligations for assets under construction Total future payments on capital lease finance o bligation s for asset s under construction 2017 $ 135 2 137 2018 164 3 167 2019 164 4 168 2020 163 4 167 2021 163 5 168 Thereafter 1,450 396 1,846 Non-cash derecognition of capital lease finance obligations at end of lease term — 661 661 Total payments $ 2,239 1,075 3,314 |
Note 11 - Share-based Compensat
Note 11 - Share-based Compensation | 12 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 1 1 . 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 or shares of common stock held in treasury. 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 599,790 remain available for grants as of September 30, 2016. 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, 2016, 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, 2016 were as follows: Shares Weighted average grant date fair value 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 Granted 20,790 20.68 Forfeited (26,601 ) 25.36 Vested (33,459 ) 27.50 Non-vested as of September 30, 2016 92,586 24.52 Share-based compensation expense for awards to certain employees who are not named executive officers was approximately $0.7 million, $0.4 million and $0.4 million for the years ended September 30, 2016, 2015, and 2014, 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, $0.2 million and $0.1 million for the years ended September 30, 2016, 2015 and 2014, respectively. The Company recorded total share-based compensation expense before income taxes of approximately $0.9 million, $0.6 million and $0.5 million in the years ended September 30, 2016, 2015, and 2014, 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 did not realize a tax benefit from share-based compensation expense in the years ended September 30, 2016 and 2015 and realized a tax benefit from share-based compensation expense of approximately $0.4 million in the year ended September 30, 2014. As of September 30, 2016, there was approximately $1.9 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 three years. |
Note 12 - Shareholders' Equity
Note 12 - Shareholders' Equity | 12 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 12 . Stockholders’ Equity Share Repurchases On May 5, 2016, the Board authorized a two-year share repurchase program pursuant to which the Company may repurchase up to $10.0 million in shares of the Company’s common stock. Repurchases under the Company’s share repurchase program are made from time to time at management’s discretion on the open market or through privately negotiated transactions in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended (the Exchange Act), subject to market conditions, applicable legal requirements and other relevant factors. Repurchases of common stock may also be made under a Rule 10b5-1 plan, which would permit common stock to be repurchased when the Company might otherwise be precluded from doing so under insider trading laws. The share repurchase program does not obligate the Company to purchase any particular amount of common stock and may be suspended, modified or discontinued by the Company without prior notice. The following table summarizes share repurchase activity for the periods indicated (in thousands, except number of shares acquired and average per share cost): As of September 30, 2016 2015 Number of common shares acquired 67,970 — Average price per common share acquired (including commissions) $ 12.20 — Total cost of common shares acquired $ 829 — During fiscal years 2016 and 2015, the Company reissued 10,300 treasury shares at a cost of $ 0.1 million and zero treasury shares, respectively, to partially satisfy the issuance of common stock pursuant to the vesting of certain restricted stock unit awards. At September 30, 2016 and September 30, 2015, the Company held in treasury 57,670 shares and zero shares, respectively, totaling approximately $0.7 million and zero, respectively. Between October 1 |
Note 13 - Related Party Transac
Note 13 - Related Party Transactions | 12 Months Ended |
Sep. 30, 2016 | |
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, 2016 | |
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, 2016, 2015 and 2014, respectively, dollars in thousands: Year ended September 30, 201 6 201 5 201 4 Current federal income tax (benefit) expense $ (853 ) 7,769 8,304 Current state income tax (benefit) expense (254 ) 1,033 1,163 Total current income tax (benefit) expense (1,107 ) 8,802 9,467 Deferred federal income tax expense (benefit) 6,103 514 (1,112 ) Deferred state income tax expense (benefit) 868 116 (74 ) Total deferred income tax expense (benefit) 6,971 630 (1,186 ) Total provision for income taxes $ 5,864 9,432 8,281 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 6 201 5 201 4 Statutory tax rate 34.0 % 35.0 35.0 State income taxes, net of federal income tax expense 2.9 2.9 3.0 Other, net (3.0 ) (1.1 ) 0.1 Effective tax rate 33.9 % 36.8 38.1 The Company’s effective tax rate decreased from 36.8% in the year ended September 30, 2015 to 33.9% in the year ended September 30, 2016 primarily due to a revision in its estimated annual federal tax rate from 35% to 34% and federal and state tax credits in its fiscal 2015 tax return that were higher than previously estimated in the provision for the year ended September 30, 2015. The Company has early adopted the requirements of ASU No. 2015-17 and applied the amended provisions prospectively. Deferred taxes have been classified on the consolidated balance sheets as follows, dollars in thousands: As of September 30, 201 6 201 5 Current assets $ — 866 Long-term liabilities (12,178 ) (6,073 ) Net deferred tax liabilities $ (12,178 ) (5,207 ) 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 6 201 5 Deferred tax assets Capital and financing lease obligations $ 12,091 10,473 Goodwill 2,222 2,582 Leasehold incentives 3,187 3,025 Deferred rent 3,350 2,627 Trademarks 1,021 1,018 Accrued employee benefits 734 729 Other 597 363 Gross deferred tax assets 23,202 20,817 Deferred tax liabilities Property and equipment (32,103 ) (22,909 ) Leasehold improvements (3,195 ) (3,087 ) Other (82 ) (28 ) Gross deferred tax liabilities (35,380 ) (26,024 ) Net deferred tax liabilities $ (12,178 ) (5,207 ) 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 utilized zero and less than $0.1 million in tax effected state income tax carryforwards in the years ended September 30, 2016 and 2015, respectively. 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 2012 and prior and is no longer subject to state and local income tax examinations for fiscal years 2011 and prior. |
Note 15 - Defined Contribution
Note 15 - Defined Contribution Plan | 12 Months Ended |
Sep. 30, 2016 | |
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. For the year ended September 30, 2016, the Company did not make a matching contribution due to the Company’s failure to meet certain targets. In addition, during the year ended September 30, 2016, the Company reversed a $0.2 million accrual for a matching contribution that was recorded during the year ended September 30, 2015 with respect to the year ended September 30, 2016. For the years ended September 30, 2015 and 2014, the Company’s matching contribution consisted of an expense of approximately $0.6 million and $0.1 million, respectively. |
Note 16 - Segment Reporting
Note 16 - Segment Reporting | 12 Months Ended |
Sep. 30, 2016 | |
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, 2016, 2015 and 2014 as follows: As of September 30, 201 6 201 5 201 4 Grocery 66.5 % 66.4 66.7 Dietary supplements 22.2 22.5 23.2 Body care, pet care and other 11.3 11.1 10.1 100.0 % 100.0 100.0 |
Note 17 - Commitments and Conti
Note 17 - Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 17 . 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. On June 20, 2016, a Magistrate Judge of the United States District Court for the District of Colorado issued a Recommendation and Order dismissing the plaintiff’s complaint without prejudice. On September 21, 2016, the United States District Court for the District of Colorado issued an Opinion and Order adopting the Magistrate Judge’s Recommendation and dismissing the plaintiff’s complaint without prejudice. On November 10, 2016, the Company and the plaintiff entered into a Settlement Agreement and Release pursuant to which: (i) the plaintiff agreed not to appeal the Court’s dismissal of his complaint and (ii) the Company agreed not to seek reimbursement of its attorneys’ fees and legal costs from plaintiff. |
Note 18 - Selected Quarterly Fi
Note 18 - Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Quarterly Financial Information [Text Block] | 18 . 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, 201 6 Three months ended December 31, 5 March 31, 6 June 30, 201 6 September 30, 6 Net sales $ 167,786 177,395 179,274 181,044 Cost of goods sold and occupancy costs 119,491 125,792 128,344 130,100 Gross profit 48,295 51,603 50,930 50,944 Store expenses 35,899 38,774 40,095 41,390 Administrative expenses 4,754 4,936 4,813 4,739 Pre-opening and relocation expenses 948 1,444 2,007 1,594 Operating income 6,694 6,449 4,015 3,221 Interest expense (653 ) (733 ) (768 ) (890 ) Income before income taxes 6,041 5,716 3,247 2,331 Provision for income taxes (2,293 ) (2,139 ) (567 ) (865 ) Net income . $ 3,748 3,577 2,680 1,466 Basic earnings per share $ 0.17 0.16 0.12 0.07 Diluted earnings per share 0.17 0.16 0.12 0.07 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 |
Note 19 - Subsequent Events
Note 19 - Subsequent Events | 12 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 19 . Subsequent Events On October 7, 2016, the Company completed a sale-leaseback transaction for a store building with an unrelated party for proceeds of approximately $2.6 million. 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. For the year ended September 30, 2016, the building is considered to be held for sale. The Company anticipates a loss on the sale of the building of approximately $0.3 million, which will be deferred and recognized over the initial lease term. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2016 | |
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) and Vitamin Cottage Two Ltd. Liability Company (VC2). 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. |
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 as of September 30, 2016 and 2015. |
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 $3.8 million as of September 30, 2016. |
Vendor Concentration [Policy Text Block] | Vendor Concentration For the years ended September 30, 2016, 2015 and 2014, purchases from the Company’s largest vendor and its subsidiaries represented approximately 59%, 57% and 56%, 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 useful life of the relevant asset. 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. As of September 30, 2016 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. As of September 30, 2016, 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 credit facility using the straight-line method. |
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 or 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 and records a sale when a customer redeems the gift card. |
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, 2016, 2015 and 2014 were approximately $10.8 million, $9.3 million and $7.8 million, respectively, net of vendor reimbursements received for newsletter advertising of approximately $3.2 million, $2.5 million and $1.9 million for the years ended September 30, 2016, 2015 and 2014, 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 its initial public offering 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 March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-09, “Improvements to Employee Share-Based Payment Accounting,” Topic 718, “Compensation-Stock Compensation” (ASU 2016-09). ASU 2016-09 includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements. The main provision requires all excess tax benefits and tax deficiencies to be recognized as income tax benefit or expense in the statement of income. The tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. The ASU also allows an entity to make an entity-wide election to either estimate the number of awards that are expected to vest (current GAAP) or account for forfeitures when they occur. Other provisions in ASU 2016-09 permit tax withholding up to the maximum statutory tax rates in the applicable jurisdictions. Under ASU 2016-09 excess tax benefits must be classified along with other income tax cash flows as an operating activity. The provisions of ASU 2016-09 are effective for the Company’s first quarter of the fiscal year ending September 30, 2018. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of ASU 2016-09 will have on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases,” Topic 842, “Leases” (ASU 2016-02). ASU 2016-02 intends to improve financial reporting about leasing transactions. The ASU will require organizations that lease assets to recognize on the balance sheet assets and liabilities for the rights and obligations created by those leases. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or capital. Operating leases will result in straight-line expense while capital leases will result in a front-loaded expense pattern. Classification will be based on criteria that are largely similar to those applied in current lease accounting, but without explicit bright lines. The amendments also require certain quantitative and qualitative disclosures. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 and interim periods within those years. The provisions of ASU 2016-02 are effective for the Company’s first quarter of the fiscal year ending September 30, 2020. Early adoption is permitted. The new standard must be adopted using a modified retrospective transition, and provides for certain practical expedients. Transition will require application of the new guidance at the beginning of the earliest comparative period presented. The Company is currently evaluating the impact that the adoption of ASU 2016-02 will have on its consolidated financial statements but expects it to have a significant impact on its balance sheet due to the number of operating leases to which the Company is a party. In November 2015, the 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. The amendments in ASU 2015-17 require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The Company elected early adoption of the provisions of ASU 2015-17 prospectively for the period ended March 31, 2016 and thereafter and has presented its deferred tax liabilities and assets as noncurrent in its consolidated financial statements as of March 31, 2016 and periods ended thereafter. 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 does not expect the adoption of these provisions to have a significant impact on the Company’s 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 does not expect the adoption of these provisions to have a significant impact on the Company’s 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 adoption is permitted only for 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 is currently evaluating the impact that the adoption of ASU 2014-09 will have on its consolidated financial statements. |
Note 3 - Earnings Per Share (Ta
Note 3 - Earnings Per Share (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Year ended September 30, 201 6 201 5 201 4 Net income $ 11,471 16,204 13,473 Weighted average number of shares of common stock outstanding 22,492,986 22,490,260 22,466,432 Effect of dilutive securities 14,166 10,573 13,403 Weighted average number of shares of common stock outstanding including the effect of dilutive securities 22,507,152 22,500,833 22,479,835 Basic earnings per share $ 0.51 0.72 0.60 Diluted earnings per share $ 0.51 0.72 0.60 |
Note 5 - Property and Equipme29
Note 5 - Property and Equipment (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Property Plant and Equipment Components [Table Text Block] | Useful lives As of September 30, (in years) 201 6 201 5 Construction in process n/a $ 6,561 10,150 Capitalized real estate leases for build-to-suit stores, including unamortized land of $617 and $617, respectively 40 28,393 24,774 Capitalized real estate leases 15 5,735 4,866 Land n/a 192 192 Buildings 12,546 4,980 Land improvements 5 - 24 1,055 1,015 Leasehold and building improvements 1 - 25 118,119 91,865 Fixtures and equipment 5 - 7 103,415 83,932 Computer hardware and software 3 - 5 16,737 13,834 292,753 235,608 Less accumulated depreciation and amortization (114,456 ) (90,389 ) Property and equipment, net $ 178,297 145,219 |
Depreciation and Amortization Expense [Table Text Block] | Year ended September 30, 201 6 201 5 201 4 Depreciation and amortization expense included in cost of goods sold and occupancy costs $ 868 796 770 Depreciation and amortization expense included in store expenses 23,428 19,635 15,861 Depreciation and amortization expense included in administrative expenses 1,237 906 581 Total depreciation and amortization expense $ 25,533 21,337 17,212 |
Note 6 - Goodwill and Other I30
Note 6 - Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | Useful lives As of September 30, (in years) 201 6 201 5 Amortizable intangible assets: Covenants-not-to-compete 2 - 5 $ 353 353 Favorable operating lease 5 — 339 Other intangibles 0.5 - 1 41 27 Amortizable intangible assets 394 719 Less accumulated amortization (380 ) (683 ) Amortizable intangible assets, net 14 36 Trademark Indefinite 389 389 Total other intangibles, net 403 425 Goodwill Indefinite 5,198 5,198 Total goodwill and other intangibles, net $ 5,601 5,623 |
Note 7 - Accrued Expenses (Tabl
Note 7 - Accrued Expenses (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | As of September 30, 201 6 201 5 Payroll and employee-related expenses $ 4,395 7,795 Accrued income taxes payable — 5,540 Accrued property, sales and use tax payable 5,648 4,365 Accrued marketing expenses 567 532 Deferred revenue related to gift card sales 866 864 Other 972 553 Total accrued expenses $ 12,448 19,649 |
Note 10 - Lease Commitments (Ta
Note 10 - Lease Commitments (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Asset under Construction, Capital Lease Finance Obligations [Member] | |
Notes Tables | |
Schedule of Future Minimum Lease Payments for Capital and Finance Lease Obligations [Table Text Block] | Interest expense on capital lease finance obligation s for assets under construction Principal payments on ital lease finance obligations for assets under construction Total future payments on capital lease finance o bligation s for asset s under construction 2017 $ 135 2 137 2018 164 3 167 2019 164 4 168 2020 163 4 167 2021 163 5 168 Thereafter 1,450 396 1,846 Non-cash derecognition of capital lease finance obligations at end of lease term — 661 661 Total payments $ 2,239 1,075 3,314 |
Asset Held under Real Estate Leases for Build-to-suit Stores, Capital and Financing Lease Obligations [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 capital lease finance and capital lease obligations 2017 $ 2,793 261 528 214 3,796 2018 2,768 300 505 236 3,809 2019 2,737 367 481 261 3,846 2020 2,701 405 453 288 3,847 2021 2,658 479 423 319 3,879 Thereafter 14,751 5,220 2,511 3,895 26,377 Non-cash derecognition of capital lease finance obligations at end of lease term — 18,587 — — 18,587 Total payments $ 28,408 25,619 4,901 5,213 64,141 |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Fiscal Year Third p arties Related p arties Sublease rental income Total o perating l eases 2017 $ 35,463 1,329 (315 ) 36,477 2018 38,325 1,329 (342 ) 39,312 2019 37,412 1,329 (332 ) 38,409 2020 36,739 1,333 (296 ) 37,776 2021 35,524 1,310 (283 ) 36,551 Thereafter 319,577 6,595 (928 ) 325,244 Total payments $ 503,040 13,225 (2,496 ) 513,769 |
Schedule of Debt [Table Text Block] | As of September 30, 201 6 201 5 Capital lease finance obligations, due in monthly installments through fiscal year 2031 $ 25,619 22,096 Capital lease obligations due in monthly installments through fiscal year 2041 5,213 4,539 Capital lease finance obligations for assets under construction, due in monthly installments through fiscal year 2032 1,075 — Capital lease obligations for assets under construction, due in monthly installments through fiscal year 2041 — 972 Total capital and financing lease obligations 31,907 27,607 Less current portion (478 ) (333 ) Total capital and financing lease obligations, net of current portion $ 31,429 27,274 |
Note 11 - Share-based Compens33
Note 11 - Share-based Compensation (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
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, 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 Granted 20,790 20.68 Forfeited (26,601 ) 25.36 Vested (33,459 ) 27.50 Non-vested as of September 30, 2016 92,586 24.52 |
Note 12 - Shareholders' Equity
Note 12 - Shareholders' Equity (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Class of Treasury Stock [Table Text Block] | As of September 30, 2016 2015 Number of common shares acquired 67,970 — Average price per common share acquired (including commissions) $ 12.20 — Total cost of common shares acquired $ 829 — |
Note 14 - Income Taxes (Tables)
Note 14 - Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Year ended September 30, 201 6 201 5 201 4 Current federal income tax (benefit) expense $ (853 ) 7,769 8,304 Current state income tax (benefit) expense (254 ) 1,033 1,163 Total current income tax (benefit) expense (1,107 ) 8,802 9,467 Deferred federal income tax expense (benefit) 6,103 514 (1,112 ) Deferred state income tax expense (benefit) 868 116 (74 ) Total deferred income tax expense (benefit) 6,971 630 (1,186 ) Total provision for income taxes $ 5,864 9,432 8,281 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Year ended September 30, 201 6 201 5 201 4 Statutory tax rate 34.0 % 35.0 35.0 State income taxes, net of federal income tax expense 2.9 2.9 3.0 Other, net (3.0 ) (1.1 ) 0.1 Effective tax rate 33.9 % 36.8 38.1 |
Schedule of Classification of Deferred Tax Assets and Liabilities [Table Text Block] | As of September 30, 201 6 201 5 Current assets $ — 866 Long-term liabilities (12,178 ) (6,073 ) Net deferred tax liabilities $ (12,178 ) (5,207 ) |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | As of September 30, 201 6 201 5 Deferred tax assets Capital and financing lease obligations $ 12,091 10,473 Goodwill 2,222 2,582 Leasehold incentives 3,187 3,025 Deferred rent 3,350 2,627 Trademarks 1,021 1,018 Accrued employee benefits 734 729 Other 597 363 Gross deferred tax assets 23,202 20,817 Deferred tax liabilities Property and equipment (32,103 ) (22,909 ) Leasehold improvements (3,195 ) (3,087 ) Other (82 ) (28 ) Gross deferred tax liabilities (35,380 ) (26,024 ) Net deferred tax liabilities $ (12,178 ) (5,207 ) |
Note 16 - Segment Reporting (Ta
Note 16 - Segment Reporting (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Product Information [Table Text Block] | As of September 30, 201 6 201 5 201 4 Grocery 66.5 % 66.4 66.7 Dietary supplements 22.2 22.5 23.2 Body care, pet care and other 11.3 11.1 10.1 100.0 % 100.0 100.0 |
Note 18 - Selected Quarterly 37
Note 18 - Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Quarterly Financial Information [Table Text Block] | Fiscal Year Ended September 30, 201 6 Three months ended December 31, 5 March 31, 6 June 30, 201 6 September 30, 6 Net sales $ 167,786 177,395 179,274 181,044 Cost of goods sold and occupancy costs 119,491 125,792 128,344 130,100 Gross profit 48,295 51,603 50,930 50,944 Store expenses 35,899 38,774 40,095 41,390 Administrative expenses 4,754 4,936 4,813 4,739 Pre-opening and relocation expenses 948 1,444 2,007 1,594 Operating income 6,694 6,449 4,015 3,221 Interest expense (653 ) (733 ) (768 ) (890 ) Income before income taxes 6,041 5,716 3,247 2,331 Provision for income taxes (2,293 ) (2,139 ) (567 ) (865 ) Net income . $ 3,748 3,577 2,680 1,466 Basic earnings per share $ 0.17 0.16 0.12 0.07 Diluted earnings per share 0.17 0.16 0.12 0.07 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 |
Note 1 - Organization (Details
Note 1 - Organization (Details Textual) | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 |
Oregon [Member] | |||
Number of Stores | 8 | ||
Utah [Member] | |||
Number of Stores | 5 | ||
Montana [Member] | |||
Number of Stores | 4 | ||
Nebraska [Member] | |||
Number of Stores | 3 | ||
Nevada [Member] | |||
Number of Stores | 3 | ||
North Dakota [Member] | |||
Number of Stores | 2 | ||
Washington [Member] | |||
Number of Stores | 2 | ||
Wyoming [Member] | |||
Number of Stores | 2 | ||
Minnesota [Member] | |||
Number of Stores | 1 | ||
Colorado [Member] | |||
Number of Stores | 36 | ||
Texas [Member] | |||
Number of Stores | 18 | ||
Arizona [Member] | |||
Number of Stores | 12 | ||
Kansas [Member] | |||
Number of Stores | 8 | ||
Oklahoma [Member] | |||
Number of Stores | 7 | ||
New Mexico [Member] | |||
Number of Stores | 5 | ||
Idaho [Member] | |||
Number of Stores | 4 | ||
Missouri [Member] | |||
Number of Stores | 3 | ||
Arkansas [Member] | |||
Number of Stores | 2 | ||
Iowa [Member] | |||
Number of Stores | 1 | ||
Number of Stores | 126 | 103 | 87 |
Note 2 - Basis of Presentatio39
Note 2 - Basis of Presentation and Summary of Significant Accounting Policies (Details Textual) - USD ($) | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Supplier Concentration Risk [Member] | Cost of Goods, Product Line [Member] | |||
Concentration Risk, Percentage | 59.00% | 57.00% | 56.00% |
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 | $ 3,800,000 | ||
Marketing and Advertising Expense | 10,800,000 | 9,300,000 | $ 7,800,000 |
Reimbursement Revenue | $ 3,200,000 | $ 2,500,000 | $ 1,900,000 |
Note 3 - Earnings Per Share (De
Note 3 - Earnings Per Share (Details Textual) - USD ($) | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Restricted Stock Units (RSUs) [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 61,115 | 120,674 | 3,558 |
Dividends | $ 0 | $ 0 | $ 0 |
Preferred Stock, Shares Issued | 0 | ||
Preferred Stock, Shares Outstanding | 0 | ||
Common Stock, Shares Authorized | 50,000,000 | 50,000,000 | |
Common Stock, Shares, Issued | 22,510,279 | 22,496,628 | |
Common Stock, Shares, Outstanding | 22,452,609 | 22,496,628 | |
Preferred Stock, Shares Authorized | 10,000,000 |
Note 3 - Earnings Per Share - B
Note 3 - Earnings Per Share - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Net income | $ 1,466 | $ 2,680 | $ 3,577 | $ 3,748 | $ 2,892 | $ 4,345 | $ 5,403 | $ 3,564 | $ 11,471 | $ 16,204 | $ 13,473 |
Weighted average number of shares of common stock outstanding (in shares) | 22,492,986 | 22,490,260 | 22,466,432 | ||||||||
Effect of dilutive securities (in shares) | 14,166 | 10,573 | 13,403 | ||||||||
Weighted average number of shares of common stock outstanding including the effect of dilutive securities (in shares) | 22,507,152 | 22,500,833 | 22,479,835 | ||||||||
Basic earnings per share (in dollars per share) | $ 0.07 | $ 0.12 | $ 0.16 | $ 0.17 | $ 0.13 | $ 0.19 | $ 0.24 | $ 0.16 | $ 0.51 | $ 0.72 | $ 0.60 |
Diluted earnings per share (in dollars per share) | $ 0.07 | $ 0.12 | $ 0.16 | $ 0.17 | $ 0.13 | $ 0.19 | $ 0.24 | $ 0.16 | $ 0.51 | $ 0.72 | $ 0.60 |
Note 5 - Property and Equipme42
Note 5 - Property and Equipment (Details Textual) - USD ($) | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Construction in Progress [Member] | Build to Suit Lease in Process [Member] | |||
Property, Plant and Equipment, Gross | $ 1,100,000 | $ 0 | |
Construction in Progress [Member] | Assets Held under Capital Leases [Member] | |||
Property, Plant and Equipment, Gross | 0 | 900,000 | |
Construction in Progress [Member] | |||
Property, Plant and Equipment, Gross | 6,561,000 | 10,150,000 | |
Software Development [Member] | |||
Property, Plant and Equipment, Additions | 100,000 | 200,000 | |
Leasehold and Building Improvements and Fixtures and Equipment [Member] | |||
Property, Plant and Equipment, Additions | 900,000 | 600,000 | |
Capital and Financing Lease Obligations [Member] | |||
Interest Paid, Capitalized | 500,000 | 300,000 | $ 400,000 |
Property, Plant and Equipment, Additions, Capitalized Internal Staff Compensation [Member] | |||
Depreciation | 500,000 | 400,000 | 300,000 |
Property, Plant and Equipment, Gross | 292,753,000 | 235,608,000 | |
Interest Paid, Capitalized | $ 538,000 | $ 309,000 | $ 364,000 |
Note 5 - Property and Equipme43
Note 5 - Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Construction in Progress [Member] | ||
Property, Plant and Equipment, Gross | $ 6,561 | $ 10,150 |
Assets Held Under Real Estate Leases for Build to Suit Stores [Member] | ||
Property, Plant and Equipment, Gross | $ 28,393 | 24,774 |
Useful life | 40 years | |
Assets Held under Capital Leases [Member] | ||
Property, Plant and Equipment, Gross | $ 5,735 | 4,866 |
Useful life | 15 years | |
Land [Member] | ||
Property, Plant and Equipment, Gross | $ 192 | 192 |
Building [Member] | ||
Property, Plant and Equipment, Gross | $ 12,546 | 4,980 |
Land Improvements [Member] | Minimum [Member] | ||
Useful life | 5 years | |
Land Improvements [Member] | Maximum [Member] | ||
Useful life | 24 years | |
Land Improvements [Member] | ||
Property, Plant and Equipment, Gross | $ 1,055 | 1,015 |
Leasehold and Building Improvements [Member] | Minimum [Member] | ||
Useful life | 1 year | |
Leasehold and Building Improvements [Member] | Maximum [Member] | ||
Useful life | 25 years | |
Leasehold and Building Improvements [Member] | ||
Property, Plant and Equipment, Gross | $ 118,119 | 91,865 |
Furniture and Fixtures [Member] | Minimum [Member] | ||
Useful life | 5 years | |
Furniture and Fixtures [Member] | Maximum [Member] | ||
Useful life | 7 years | |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment, Gross | $ 103,415 | 83,932 |
Computer Hardware and Software [Member] | Minimum [Member] | ||
Useful life | 3 years | |
Computer Hardware and Software [Member] | Maximum [Member] | ||
Useful life | 5 years | |
Computer Hardware and Software [Member] | ||
Property, Plant and Equipment, Gross | $ 16,737 | 13,834 |
Property, Plant and Equipment, Gross | 292,753 | 235,608 |
Less accumulated depreciation and amortization | (114,456) | (90,389) |
Property and equipment, net | $ 178,297 | $ 145,219 |
Note 5 - Property and Equipme44
Note 5 - Property and Equipment - Schedule of Property and Equipment (Details) (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Unamortized Land [Member] | ||
Property, Plant and Equipment, Gross | $ 617 | $ 617 |
Property, Plant and Equipment, Gross | $ 292,753 | $ 235,608 |
Note 5 - Property and Equipme45
Note 5 - Property and Equipment - Depreciation and Amortization Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Cost of Sales [Member] | |||
Depreciation and amortization expense | $ 868 | $ 796 | $ 770 |
Stores [Member] | |||
Depreciation and amortization expense | 23,428 | 19,635 | 15,861 |
General and Administrative Expense [Member] | |||
Depreciation and amortization expense | 1,237 | 906 | 581 |
Depreciation and amortization expense | $ 25,533 | $ 21,337 | $ 17,212 |
Note 6 - Goodwill and Other I46
Note 6 - Goodwill and Other Intangible Assets (Details Textual) - USD ($) | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
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 6 - Goodwill and Other I47
Note 6 - Goodwill and Other Intangible Assets - Summary of Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Noncompete Agreements [Member] | Minimum [Member] | ||
Amortizable intangible assets: | ||
Useful life | 2 years | |
Noncompete Agreements [Member] | Maximum [Member] | ||
Amortizable intangible assets: | ||
Useful life | 5 years | |
Noncompete Agreements [Member] | ||
Amortizable intangible assets: | ||
Finite-lived intangible assets, gross | $ 353 | $ 353 |
Favorable Operating Leases [Member] | ||
Amortizable intangible assets: | ||
Useful life | 5 years | |
Finite-lived intangible assets, gross | 339 | |
Other Intangible Assets [Member] | Minimum [Member] | ||
Amortizable intangible assets: | ||
Useful life | 182 days | |
Other Intangible Assets [Member] | Maximum [Member] | ||
Amortizable intangible assets: | ||
Useful life | 1 year | |
Other Intangible Assets [Member] | ||
Amortizable intangible assets: | ||
Finite-lived intangible assets, gross | $ 41 | 27 |
Finite-lived intangible assets, gross | 394 | 719 |
Less accumulated amortization | (380) | (683) |
Amortizable intangible assets, net | 14 | 36 |
Trademark | 389 | 389 |
Total other intangibles, net | 403 | 425 |
Goodwill | 5,198 | 5,198 |
Total goodwill and other intangibles, net | $ 5,601 | $ 5,623 |
Note 7 - Accrued Expenses - Com
Note 7 - Accrued Expenses - Composition of Accrued Expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Payroll and employee-related expenses | $ 4,395 | $ 7,795 |
Accrued income taxes payable | 5,540 | |
Accrued property, sales and use tax payable | 5,648 | 4,365 |
Accrued marketing expenses | 567 | 532 |
Deferred revenue related to gift card sales | 866 | 864 |
Other | 972 | 553 |
Total accrued expenses | $ 12,448 | $ 19,649 |
Note 8 - Deferred Financing C49
Note 8 - Deferred Financing Costs (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Maximum [Member] | |||
Debt Issuance Costs, Noncurrent, Net | $ 100 | $ 100 | |
Accumulated Amortization, Debt Issuance Costs, Noncurrent | 100 | 900 | |
Amortization of Debt Issuance Costs | 100 | 100 | $ 100 |
Debt Issuance Costs, Noncurrent, Net | 50 | 21 | |
Amortization of Debt Issuance Costs | $ 13 | $ 15 | $ 19 |
Note 9 - Long-term Debt (Detail
Note 9 - Long-term Debt (Details Textual) | 5 Months Ended | 12 Months Ended | ||||
Sep. 30, 2016USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | May 10, 2016USD ($) | Jan. 28, 2016USD ($) | |
The New Credit Facility [Member] | Standby Letters of Credit [Member] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000,000 | $ 5,000,000 | ||||
The New Credit Facility [Member] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 45,000,000 | $ 30,000,000 | ||||
Line of Credit Facility, Maximum Contingent Additional Borrowings | $ 5,000,000 | |||||
Line of Credit Facility, Dividend Restrictions, Maximum Amount | $ 10,000,000 | |||||
Long-term Line of Credit | 27,400,000 | $ 27,400,000 | ||||
Line of Credit Facility, Remaining Borrowing Capacity | 16,600,000 | 16,600,000 | ||||
Letter of Credit [Member] | ||||||
Letters of Credit Outstanding, Amount | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 | |||
Revolving Credit Facility [Member] | ||||||
Line of Credit Facility, Remaining Borrowing Capacity | 14,000,000 | |||||
Long-term Line of Credit | $ 0 | |||||
Capital and Financing Lease Obligations Number of Leases | 16 | 16 | 13 | |||
Interest Expense, Debt, Excluding Amortization | $ 3,500,000 | $ 3,300,000 | $ 2,900,000 | |||
Interest Costs Capitalized | $ 500,000 | $ 300,000 | $ 400,000 |
Note 10 - Lease Commitments (De
Note 10 - Lease Commitments (Details Textual) | 12 Months Ended | ||
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | |
Maximum [Member] | |||
Operating Leases, Income Statement, Sublease Revenue | $ 100,000 | $ 100,000 | $ 100,000 |
Build to Suit Lease in Process [Member] | |||
Construction in Progress, Gross | 1,100,000 | 0 | |
Assets Held under Capital Leases [Member] | |||
Capital Lease Obligations | $ 0 | 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 | 8,809,000 | 6,922,000 | |
Incentive from Lessor | 8,379,000 | 7,975,000 | |
Operating Leases, Rent Expense, Net | 34,600,000 | 26,300,000 | 20,500,000 |
Pre-Opening Costs and Relocation Expenses for Stores Not Yet Opened Rent Expense | 1,400,000 | 800,000 | $ 1,000,000 |
Capital Lease Finance Obligations | 25,600,000 | 22,100,000 | |
Capital Lease Obligations | $ 5,200,000 | $ 4,500,000 |
Note 10 - Lease Commitments - F
Note 10 - Lease Commitments - Future Minimum Annual Payments under Operating Leases (Details) $ in Thousands | Sep. 30, 2016USD ($) |
Third Parties [Member] | |
2,017 | $ 35,463 |
2,018 | 38,325 |
2,019 | 37,412 |
2,020 | 36,739 |
2,021 | 35,524 |
Thereafter | 319,577 |
Total payments | 503,040 |
Related Parties [Member] | |
2,017 | 1,329 |
2,018 | 1,329 |
2,019 | 1,329 |
2,020 | 1,333 |
2,021 | 1,310 |
Thereafter | 6,595 |
Total payments | 13,225 |
2017, Sublease Rental Income | (315) |
2017, Total OperatingLeases | 36,477 |
2018, Sublease Rental Income | (342) |
2018, Total OperatingLeases | 39,312 |
2019, Sublease Rental Income | (332) |
2019, Total OperatingLeases | 38,409 |
2020, Sublease Rental Income | (296) |
2020, Total OperatingLeases | 37,776 |
2021, Sublease Rental Income | (283) |
2021, Total OperatingLeases | 36,551 |
Thereafter, Sublease Rental Income | (928) |
Thereafter, Total OperatingLeases | 325,244 |
Total Sublease Rental Income | (2,496) |
Total Operating Leases | $ 513,769 |
Note 10 - Lease Commitments - C
Note 10 - Lease Commitments - Capital and Financing Lease Obligations (Details) - USD ($) | Sep. 30, 2016 | Sep. 30, 2015 |
Due in Monthly Installments Through Fiscal Year 2031 [Member] | ||
Capital lease finance obligations | $ 25,619,000 | $ 22,096,000 |
Asset not under Construction, Due in Monthly Installments Through Fiscal Year 2041 [Member] | ||
Capital lease obligations | 5,213,000 | 4,539,000 |
Asset under Construction, Due in Monthly Installments Through Fiscal Year 2032 [Member] | ||
Capital lease finance obligations | 1,075,000 | |
Asset under Construction, Due in Monthly Installments Through Fiscal Year 2041 [Member] | ||
Capital lease obligations | 972,000 | |
Capital lease finance obligations | 25,600,000 | 22,100,000 |
Capital lease obligations | 5,200,000 | 4,500,000 |
Total capital and financing lease obligations | 31,907,000 | 27,607,000 |
Less current portion | (478,000) | (333,000) |
Total capital and financing lease obligations, net of current portion | $ 31,429,000 | $ 27,274,000 |
Note 10 - Lease Commitments - S
Note 10 - Lease Commitments - Schedule of Future Payments Under the Terms of the Leases (Details) (Assets Held Under Real Estate Leases for Build to Suit Stores (Details) $ in Thousands | Sep. 30, 2016USD ($) |
Asset Held under Real Estate Leases for Build-to-suit Stores, Capital Lease Finance Obligations [Member] | |
2017, Interest expense on capital lease finance obligations | $ 2,793 |
2017, Principle payments on capital lease finance obligations | 261 |
2018, Interest expense on capital lease finance obligations | 2,768 |
2018, Principle payments on capital lease finance obligations | 300 |
2019, Interest expense on capital lease finance obligations | 2,737 |
2019, Principle payments on capital lease finance obligations | 367 |
2020, Interest expense on capital lease finance obligations | 2,701 |
2020, Principle payments on capital lease finance obligations | 405 |
2021, Interest expense on capital lease finance obligations | 2,658 |
2021, Principle payments on capital lease finance obligations | 479 |
Thereafter, Interest expense on capital lease finance obligations | 14,751 |
Thereafter, Principle payments on capital lease finance obligations | 5,220 |
Non-cash derecognition of capital lease finance obligations at end of lease term | 18,587 |
Non-cash derecognition of capital lease finance obligations at end of lease term | 18,587 |
Total interest expense on capital lease obligations | 28,408 |
Total principle payments on capital lease finance obligations | 25,619 |
Asset Held under Real Estate Leases for Build-to-suit Stores, Capital Lease Obligations [Member] | |
2017, Interest expense on capital lease obligations | 528 |
2017, Principal payments on capital lease obligations | 214 |
2018, Interest expense on capital lease obligations | 505 |
2018, Principal payments on capital lease obligations | 236 |
2019, Interest expense on capital lease obligations | 481 |
2019, Principal payments on capital lease obligations | 261 |
2020, Interest expense on capital lease obligations | 453 |
2020, Principal payments on capital lease obligations | 288 |
2021, Interest expense on capital lease obligations | 423 |
2021, Principal payments on capital lease obligations | 319 |
Thereafter, Interest expense on capital lease obligations | 2,511 |
Thereafter, Principal payments on capital lease obligations | 3,895 |
Total interest expense on capital lease obligations | 4,901 |
Total principal payments on capital lease obligations | 5,213 |
Asset Held under Real Estate Leases for Build-to-suit Stores, Capital and Financing Lease Obligations [Member] | |
2017, Future payments on capital lease finance and capital lease obligations | 3,796 |
2018, Future payments on capital lease finance and capital lease obligations | 3,809 |
2019, Future payments on capital lease finance and capital lease obligations | 3,846 |
2020, Future payments on capital lease finance and capital lease obligations | 3,847 |
2021, Future payments on capital lease finance and capital lease obligations | 3,879 |
Thereafter, Future payments on capital lease finance and capital lease obligations | 26,377 |
Non-cash derecognition of capital lease finance obligations at end of lease term | 18,587 |
Non-cash derecognition of capital lease finance obligations at end of lease term | 18,587 |
Total future payments on capital lease finance and capital lease obligations | $ 64,141 |
Note 10 - Lease Commitments -55
Note 10 - Lease Commitments - Future Minimum Lease Payments for Stores Under Construction (Details) - Asset under Construction, Capital Lease Finance Obligations [Member] $ in Thousands | Sep. 30, 2016USD ($) |
2017, Interest expense on capital lease finance obligations | $ 135 |
2017, Principle payments on capital lease finance obligations | 2 |
2017, Total future payments on capital lease obligations for assets under construction | 137 |
2018, Interest expense on capital lease finance obligations | 164 |
2018, Principle payments on capital lease finance obligations | 3 |
2018, Total future payments on capital lease obligations for assets under construction | 167 |
2019, Interest expense on capital lease finance obligations | 164 |
2019, Principle payments on capital lease finance obligations | 4 |
2019, Total future payments on capital lease obligations for assets under construction | 168 |
2020, Interest expense on capital lease finance obligations | 163 |
2020, Principle payments on capital lease finance obligations | 4 |
2020, Total future payments on capital lease obligations for assets under construction | 167 |
2021, Interest expense on capital lease finance obligations | 163 |
2021, Principle payments on capital lease finance obligations | 5 |
2021, Total future payments on capital lease obligations for assets under construction | 168 |
Thereafter, Interest expense on capital lease finance obligations | 1,450 |
Thereafter, Principle payments on capital lease finance obligations | 396 |
Thereafter, Total future payments on capital lease obligations for assets under construction | 1,846 |
Non-cash derecognition of capital lease finance obligations at end of lease term | 661 |
Total interest expense on capital lease finance obligations for assets under construction | 2,239 |
Total principle payments on capital lease finance obligations | 1,075 |
Total future payments on capital lease finance obligations for assets under construction | $ 3,314 |
Note 11 - Share-based Compens56
Note 11 - Share-based Compensation (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | Jul. 17, 2012 | |
Restricted Stock Units (RSUs) [Member] | Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||||
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||||
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 | $ 1,900,000 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years | ||||
Certain Employees [Member] | |||||
Allocated Share-based Compensation Expense | $ 700,000 | $ 400,000 | 400,000 | ||
Board [Member] | |||||
Allocated Share-based Compensation Expense | 200,000 | 200,000 | 100,000 | ||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 0 | 0 | 400,000 | ||
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 | 599,790 | ||||
Allocated Share-based Compensation Expense | $ 900,000 | $ 600,000 | $ 500,000 |
Note 11 - Share-based Compens57
Note 11 - Share-based Compensation - Changes in Non-vested RSUs Outstanding (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
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 |
Granted (in shares) | 20,790 | 127,751 |
Granted, Weighted Average Grant Date Fair Value (in dollars per share) | $ 20.68 | $ 24.14 |
Forfeited (in shares) | (26,601) | (17,560) |
Forfeited, Weighted Average Grant Date Fair Value (in dollars per share) | $ 25.36 | $ 25.04 |
Vested (in shares) | (33,459) | (15,529) |
Vested, Weighted Average Grant Date Fair Value (in dollars per share) | $ 27.50 | $ 32.34 |
Non-vested balance (in shares) | 92,586 | 131,856 |
Non-vested, Weighted Average Grant Date Fair Value (in dollars per share) | $ 24.52 | $ 26.05 |
Note 12 - Shareholders' Equit58
Note 12 - Shareholders' Equity (Details Textual) - USD ($) | May 05, 2016 | Dec. 02, 2016 | Sep. 30, 2016 | Sep. 30, 2015 |
Subsequent Event [Member] | ||||
Treasury Stock, Shares, Acquired | 0 | |||
Treasury Stock, Shares, Acquired | 67,970 | |||
Stock Repurchase Program, Period in Force | 2 years | |||
Stock Repurchase Program, Authorized Amount | $ 10,000,000 | |||
Stock Issued During Period, Shares, Treasury Stock Reissued for Equity-based Compensation Obligations | 10,300 | 0 | ||
Stock Issued During Period, Value, Treasury Stock Reissued for Equity-based Compensation Obligations | $ 100,000 | |||
Treasury Stock, Shares | 57,670 | 0 | ||
Treasury Stock, Value | $ 690,000 | $ 0 |
Note 12 - Stockholders' Equity
Note 12 - Stockholders' Equity - Share Repurchase Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Treasury Stock, Shares, Acquired | 67,970 | |
Average price per common share acquired (including commissions) (in dollars per share) | $ 12.20 | |
Total cost of common shares acquired | $ 829 |
Note 13 - Related Party Trans60
Note 13 - Related Party Transactions (Details Textual) | 12 Months Ended | ||
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | |
Chalet [Member] | |||
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 | ||
Related Party Transaction, Expenses from Transactions with Related Party | $ 1,200,000 | $ 1,100,000 | $ 1,300,000 |
Isely Family Land Trust LLC [Member] | |||
Number of Operating Leases | 1 | ||
Related Party Transaction, Expenses from Transactions with Related Party | $ 300,000 | 300,000 | 300,000 |
FTVC, LLC [Member] | Maximum [Member] | |||
Related Party Transaction, Expenses from Transactions with Related Party | $ 100,000 | $ 100,000 | $ 0 |
FTVC, LLC [Member] | |||
Number of Operating Leases | 1 |
Note 14 - Income Taxes (Details
Note 14 - Income Taxes (Details Textual) - USD ($) | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
State and Local Jurisdiction [Member] | Maximum [Member] | |||
Operating Loss Carryforwards Utilized | $ 100,000 | ||
State and Local Jurisdiction [Member] | |||
Operating Loss Carryforwards Utilized | $ 0 | ||
Effective Income Tax Rate Reconciliation, Percent | 33.90% | 36.80% | 38.10% |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | 35.00% | 35.00% |
Note 14 - Income Taxes - Compon
Note 14 - Income Taxes - Components of the Provision for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Current federal income tax (benefit) expense | $ (853) | $ 7,769 | $ 8,304 | ||||||||
Current state income tax (benefit) expense | (254) | 1,033 | 1,163 | ||||||||
Total current income tax (benefit) expense | (1,107) | 8,802 | 9,467 | ||||||||
Deferred federal income tax expense (benefit) | 6,103 | 514 | (1,112) | ||||||||
Deferred state income tax expense (benefit) | 868 | 116 | (74) | ||||||||
Total deferred income tax expense (benefit) | 6,971 | 630 | (1,186) | ||||||||
Total provision for income taxes | $ 865 | $ 567 | $ 2,139 | $ 2,293 | $ 1,903 | $ 2,121 | $ 3,266 | $ 2,142 | $ 5,864 | $ 9,432 | $ 8,281 |
Note 14 - Income Taxes - Reconc
Note 14 - Income Taxes - Reconciliation Between the U.S. Federal Statutory Income Tax Rate and the Company's Effective Tax Rate (Details) | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statutory tax rate | 34.00% | 35.00% | 35.00% |
State income taxes, net of federal income tax expense | 2.90% | 2.90% | 3.00% |
Other, net | (3.00%) | (1.10%) | 0.10% |
Effective tax rate | 33.90% | 36.80% | 38.10% |
Note 14 - Income Taxes - Deferr
Note 14 - Income Taxes - Deferred Taxes (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Current assets | $ 866 | |
Long-term liabilities | (12,178) | (6,073) |
Net deferred tax liabilities | $ (12,178) | $ (5,207) |
Note 14 - Income Taxes - Tax Ef
Note 14 - Income Taxes - Tax Effects of Temporary Differences That Give Rise to Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Deferred tax assets | ||
Capital and financing lease obligations | $ 12,091 | $ 10,473 |
Goodwill | 2,222 | 2,582 |
Leasehold incentives | 3,187 | 3,025 |
Deferred rent | 3,350 | 2,627 |
Trademarks | 1,021 | 1,018 |
Accrued employee benefits | 734 | 729 |
Other | 597 | 363 |
Gross deferred tax assets | 23,202 | 20,817 |
Deferred tax liabilities | ||
Property and equipment | (32,103) | (22,909) |
Leasehold improvements | (3,195) | (3,087) |
Other | (82) | (28) |
Gross deferred tax liabilities | (35,380) | (26,024) |
Net deferred tax liabilities | $ (12,178) | $ (5,207) |
Note 15 - Defined Contributio66
Note 15 - Defined Contribution Plan (Details Textual) - USD ($) | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Defined Contribution Plan, Cost Recognized | $ 0 | $ 600,000 | $ 100,000 |
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, Reversed Cost Recognized | $ 200,000 |
Note 16 - Segment Reporting (De
Note 16 - Segment Reporting (Details Textual) | 12 Months Ended |
Sep. 30, 2016 | |
Number of Reportable Segments | 1 |
Note 16 - Segment Reporting - S
Note 16 - Segment Reporting - Sales from Natural and Organic Retail Stores (Details) | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Grocery [Member] | |||
Sales percentage | 66.50% | 66.40% | 66.70% |
Dietary Supplements [Member] | |||
Sales percentage | 22.20% | 22.50% | 23.20% |
Body Care, Pet Care, and Other [Member] | |||
Sales percentage | 11.30% | 11.10% | 10.10% |
Sales percentage | 100.00% | 100.00% | 100.00% |
Note 18 - Selected Quarterly 69
Note 18 - Selected Quarterly Financial Data (Unaudited) - Unaudited Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Net sales | $ 181,044 | $ 179,274 | $ 177,395 | $ 167,786 | $ 162,397 | $ 158,650 | $ 157,744 | $ 145,887 | $ 705,499 | $ 624,678 | $ 520,674 |
Cost of goods sold and occupancy costs | 130,100 | 128,344 | 125,792 | 119,491 | 115,607 | 112,508 | 110,874 | 103,593 | 503,727 | 442,582 | 369,172 |
Gross profit | 50,944 | 50,930 | 51,603 | 48,295 | 46,790 | 46,142 | 46,870 | 42,294 | 201,772 | 182,096 | 151,502 |
Store expenses | 41,390 | 40,095 | 38,774 | 35,899 | 35,113 | 33,508 | 32,461 | 31,049 | 156,158 | 132,131 | 108,657 |
Administrative expenses | 4,739 | 4,813 | 4,936 | 4,754 | 4,809 | 4,322 | 4,156 | 4,227 | 19,242 | 17,514 | 14,823 |
Pre-opening and relocation expenses | 1,594 | 2,007 | 1,444 | 948 | 1,297 | 1,078 | 870 | 577 | 5,993 | 3,822 | 3,774 |
Operating income | 3,221 | 4,015 | 6,449 | 6,694 | 5,571 | 7,234 | 9,383 | 6,441 | 20,379 | 28,629 | 24,248 |
Interest expense | (890) | (768) | (733) | (653) | (776) | (768) | (714) | (735) | (3,044) | (2,993) | (2,496) |
Income before income taxes | 2,331 | 3,247 | 5,716 | 6,041 | 4,795 | 6,466 | 8,669 | 5,706 | 17,335 | 25,636 | 21,754 |
Provision for income taxes | (865) | (567) | (2,139) | (2,293) | (1,903) | (2,121) | (3,266) | (2,142) | (5,864) | (9,432) | (8,281) |
Net income | $ 1,466 | $ 2,680 | $ 3,577 | $ 3,748 | $ 2,892 | $ 4,345 | $ 5,403 | $ 3,564 | $ 11,471 | $ 16,204 | $ 13,473 |
Basic earnings per share (in dollars per share) | $ 0.07 | $ 0.12 | $ 0.16 | $ 0.17 | $ 0.13 | $ 0.19 | $ 0.24 | $ 0.16 | $ 0.51 | $ 0.72 | $ 0.60 |
Diluted earnings per share (in dollars per share) | $ 0.07 | $ 0.12 | $ 0.16 | $ 0.17 | $ 0.13 | $ 0.19 | $ 0.24 | $ 0.16 | $ 0.51 | $ 0.72 | $ 0.60 |
Note 19 - Subsequent Events (De
Note 19 - Subsequent Events (Details Textual) - Subsequent Event [Member] $ in Millions | Oct. 07, 2016USD ($) |
Sale Leaseback Transaction, Net Proceeds, Financing Activities | $ 2.6 |
Sale Leaseback Transaction, Lease Term | 15 years |
Sale Leaseback Transaction, Deferred Loss, Gross | $ 0.3 |