MARINEMAX INC, 10-Q filed on 2/2/2021
Quarterly Report
v3.20.4
Document and Entity Information - shares
 3 Months Ended
Dec. 31, 2020
Jan. 28, 2021
Cover [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Dec. 31, 2020  
Document Fiscal Year Focus 2021  
Document Fiscal Period Focus Q1  
Trading Symbol HZO  
Entity Registrant Name MARINEMAX, INC.  
Entity Central Index Key 0001057060  
Current Fiscal Year End Date --09-30  
Entity Filer Category Accelerated Filer  
Entity Current Reporting Status Yes  
Entity Emerging Growth Company false  
Entity Small Business false  
Entity Common Stock, Shares Outstanding   22,135,775
Security Exchange Name NYSE  
Title of 12(b) Security Common Stock, par value $.001 per share  
Entity Interactive Data Current Yes  
Entity Shell Company false  
Entity File Number 1-14173  
Entity Incorporation, State or Country Code FL  
Entity Tax Identification Number 59-3496957  
Entity Address, Address Line One 2600 McCormick Drive  
Entity Address, Address Line Two Suite 200  
Entity Address, City or Town Clearwater  
Entity Address, State or Province FL  
Entity Address, Postal Zip Code 33759  
City Area Code 727  
Local Phone Number 531-1700  
Document Quarterly Report true  
Document Transition Report false  
v3.20.4
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Income Statement [Abstract]    
Revenue $ 411,524 $ 304,172
Cost of sales 288,123 224,154
Gross profit 123,401 80,018
Selling, general, and administrative expenses 91,417 64,386
Income from operations 31,984 15,632
Interest expense 1,268 3,344
Income before income tax provision 30,716 12,288
Income tax provision 7,116 3,229
Net income $ 23,600 $ 9,059
Basic net income per common share $ 1.07 $ 0.42
Diluted net income per common share $ 1.04 $ 0.41
Weighted average number of common shares used in computing net income per common share:    
Basic 22,025,898 21,453,914
Diluted 22,745,125 21,890,065
v3.20.4
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Statement Of Income And Comprehensive Income [Abstract]    
Net income $ 23,600 $ 9,059
Other comprehensive (loss) gain, net of tax:    
Foreign currency translation adjustments 1,115 606
Interest rate swap contract (195)  
Total other comprehensive income, net of tax 920 606
Comprehensive income $ 24,520 $ 9,665
v3.20.4
Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Thousands
Dec. 31, 2020
Sep. 30, 2020
CURRENT ASSETS:    
Cash and cash equivalents $ 120,939 $ 155,493
Accounts receivable, net 44,001 40,195
Inventories, net 378,863 298,002
Prepaid expenses and other current assets 14,583 9,637
Total current assets 558,386 503,327
Property and equipment, net of accumulated depreciation of $86,270 and $89,287 149,657 141,934
Operating lease right-of-use assets, net 105,633 37,991
Goodwill and other intangible assets, net 143,114 84,293
Other long-term assets 8,098 7,774
Total assets 964,888 775,319
CURRENT LIABILITIES:    
Accounts payable 22,379 37,343
Contract liabilities (customer deposits) 55,389 31,821
Accrued expenses 67,457 52,123
Short-term borrowings 163,394 144,393
Current maturities on long-term debt 2,704  
Current operating lease liabilities 9,861 6,854
Total current liabilities 321,184 272,534
Long-term debt, net of current maturities 50,124 7,343
Noncurrent operating lease liabilities 98,220 33,473
Deferred tax liabilities, net 5,911 4,509
Other long-term liabilities 6,867 2,063
Total liabilities 482,306 319,922
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS’ EQUITY:    
Preferred stock, $.001 par value, 1,000,000 shares authorized, none issued or outstanding as of September 30, 2020 and December 31, 2020
Common stock, $.001 par value, 40,000,000 shares authorized, 28,130,312 and 28,393,710 shares issued and 21,863,291 and 22,126,689 shares outstanding as of September 30, 2020 and December 31, 2020, respectively 28 28
Additional paid-in capital 283,101 280,436
Accumulated other comprehensive income 1,749 829
Retained earnings 301,299 277,699
Treasury stock, at cost, 6,267,021 and 6,267,021 shares held as of September 30, 2020 and December 31, 2020, respectively (103,595) (103,595)
Total shareholders’ equity 482,582 455,397
Total liabilities and shareholders’ equity $ 964,888 $ 775,319
v3.20.4
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2020
Sep. 30, 2020
Statement Of Financial Position [Abstract]    
Property and equipment, accumulated depreciation $ 89,287 $ 86,270
Preferred stock, par value $ 0.001 $ 0.001
Preferred stock, shares authorized 1,000,000 1,000,000
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Common stock, par value $ 0.001 $ 0.001
Common stock, shares authorized 40,000,000 40,000,000
Common stock, shares issued 28,393,710 28,130,312
Common stock, shares outstanding 22,126,689 21,863,291
Treasury stock, shares 6,267,021 6,267,021
v3.20.4
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($)
$ in Thousands
Total
Cumulative Effect, Period of Adoption, Adjustment [Member]
Common Stock [Member]
Additional Paid-in Capital [Member]
Accumulated Other Comprehensive Earnings [Member]
Retained Earnings [Member]
Retained Earnings [Member]
Cumulative Effect, Period of Adoption, Adjustment [Member]
Treasury Stock [Member]
Beginning Balance at Sep. 30, 2019 $ 368,819   $ 28 $ 269,969 $ (669) $ 202,455   $ (102,964)
Beginning Balance, Shares at Sep. 30, 2019     27,508,473          
Net income 9,059         9,059    
Shares issued pursuant to employee stock purchase plan 505     505        
Shares issued pursuant to employee stock purchase plan, Shares     38,352          
Shares issued upon vesting of equity awards, net of minimum tax withholding (476)     (476)        
Shares issued upon vesting of equity awards, net of minimum tax withholding, Shares     123,993          
Shares issued upon exercise of stock options 111     111        
Shares issued upon exercise of stock options, Shares     13,000          
Stock-based compensation 1,513     1,513        
Stock-based compensation, Shares     2,946          
Other comprehensive income 606       606      
Ending Balance at Dec. 31, 2019 380,747   $ 28 271,622 (63) 212,124   (102,964)
Ending Balance (Accounting Standards Update 2016-02 [Member]) at Dec. 31, 2019   $ 610         $ 610  
Ending Balance, Shares at Dec. 31, 2019     27,686,764          
Beginning Balance at Sep. 30, 2020 $ 455,397   $ 28 280,436 829 277,699   (103,595)
Beginning Balance, Shares at Sep. 30, 2020 28,130,312   28,130,312          
Net income $ 23,600         23,600    
Shares issued pursuant to employee stock purchase plan 740     740        
Shares issued pursuant to employee stock purchase plan, Shares     83,572          
Shares issued upon vesting of equity awards, net of minimum tax withholding (871)     (871)        
Shares issued upon vesting of equity awards, net of minimum tax withholding, Shares     121,303          
Shares issued upon exercise of stock options 783     783        
Shares issued upon exercise of stock options, Shares     56,746          
Stock-based compensation 2,013     2,013        
Stock-based compensation, Shares     1,777          
Other comprehensive income 920       920      
Ending Balance at Dec. 31, 2020 $ 482,582   $ 28 $ 283,101 $ 1,749 $ 301,299   $ (103,595)
Ending Balance, Shares at Dec. 31, 2020 28,393,710   28,393,710          
v3.20.4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended
Dec. 31, 2020
Dec. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net income $ 23,600 $ 9,059
Adjustments to reconcile net income to net cash used in operating activities:    
Depreciation and amortization 3,814 3,007
Deferred income tax provision 1,402 1,061
Loss on sale of property and equipment 98 24
Stock-based compensation expense 2,013 1,513
(Increase) decrease in, net of effects of acquisitions —    
Accounts receivable, net 2,123 6,345
Inventories, net (38,572) (16,475)
Prepaid expenses and other assets (1,956) (1,687)
(Decrease) Increase in, net of effects of acquisitions —    
Accounts payable (16,520) (15,559)
Contract liabilities (customer deposits) 16,134 (4,107)
Accrued expenses and other liabilities (4,975) (2,479)
Net cash used in operating activities (12,839) (19,298)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchases of property and equipment (7,045) (4,398)
Cash used in acquisition of businesses, net of cash acquired (48,261)  
Proceeds from sale of property and equipment 129  
Net cash used in investing activities (55,177) (4,398)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Net (payment) borrowings on short-term borrowings (11,492) 22,020
Proceeds from long-term debt 46,375  
Payments for long-term debt (377)  
Payments for debt issuance costs (910)  
Net proceeds from issuance of common stock under incentive compensation and employee purchase plans 1,523 616
Payments on tax withholdings for equity awards (2,024) (1,674)
Net cash provided by financing activities 33,095 20,962
Effect of exchange rate changes on cash 367 208
NET DECREASE IN CASH AND CASH EQUIVALENTS (34,554) (2,526)
CASH AND CASH EQUIVALENTS, beginning of period 155,493 38,511
CASH AND CASH EQUIVALENTS, end of period 120,939 35,985
Cash paid for:    
Interest 1,095 4,093
Income taxes 2,388 161
Non-cash items:    
Contingent consideration liabilities from acquisitions $ 8,200  
Accounting Standards Update 2016-02 [Member]    
Non-cash items:    
Initial operating lease right-of-use assets for adoption of ASU 2016-02   42,070
Initial current and noncurrent operating lease liabilities for adoption of ASU 2016-02   $ 43,953
v3.20.4
Company Background
 3 Months Ended
Dec. 31, 2020
Accounting Policies [Abstract]  
Company Background

1.

COMPANY BACKGROUND:

We are the largest recreational boat and yacht retailer in the United States.  We engage primarily in the retail sale, brokerage, and service of new and used boats, motors, trailers, marine parts and accessories and offer slip and storage accommodations in certain locations.  In addition, we arrange related boat financing, insurance, and extended service contracts.  We also offer the charter of power yachts in the British Virgin Islands.  As of December 31, 2020, we operated through 77 retail locations in 21 states, consisting of Alabama, California, Connecticut, Florida, Georgia, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Jersey, New York, North Carolina, Ohio, Oklahoma, Rhode Island, South Carolina, Texas, Washington, and Wisconsin. Our MarineMax Vacation operation maintains a facility in Tortola, British Virgin Islands. We also own Fraser Yachts Group and Northrop & Johnson, leading superyacht brokerage and luxury yacht services companies with operations in multiple countries.

We are the nation’s largest retailer of Sea Ray and Boston Whaler recreational boats which are manufactured by Brunswick Corporation (“Brunswick”). Sales of new Brunswick boats accounted for approximately 33% of our revenue in fiscal 2020.  Sales of new Sea Ray and Boston Whaler boats, both divisions of Brunswick, accounted for approximately 15% and 16%, respectively, of our revenue in fiscal 2020. Brunswick is a world leading manufacturer of marine products and marine engines.

We have dealership agreements with Sea Ray, Boston Whaler, Harris, and Mercury Marine, all subsidiaries or divisions of Brunswick.  We also have dealer agreements with Italy-based Azimut-Benetti Group’s product line for Azimut and Benetti yachts and mega yachts.  These agreements allow us to purchase, stock, sell, and service these manufacturers’ boats and products.  These agreements also allow us to use these manufacturers’ names, trade symbols, and intellectual properties in our operations. The agreements for Sea Ray and Boston Whaler products, respectively, appoint us as the exclusive dealer of Sea Ray and Boston Whaler boats, respectively, in our geographic markets. In addition, we are the exclusive dealer for Azimut Yachts for the entire United States. Sales of new Azimut yachts accounted for approximately 9% of our revenue in fiscal 2020.  We believe non-Brunswick brands offer a migration for our existing customer base or fill a void in our product offerings, and accordingly, do not compete with the business generated from our other prominent brands.

In October 2020, we purchased all of the outstanding equity of Skipper Marine Corp., Skipper Marine of Madison, Inc., Skipper Marine of Fox Valley, Inc., Skipper Bud’s of Illinois, Inc., Skipper Marine of Chicago-Land, Inc., Skipper Marine of Michigan, Inc., and Skipper Marine of Ohio, LLC, (collectively, “SkipperBud’s”). This acquisition significantly increased our presence in the Great Lakes region and the West Coast of the United States. SkipperBud’s is one of the largest boat sales, brokerage, service and marina/storage groups in the United States.

As is typical in the industry, we deal with most of our manufacturers, other than Sea Ray, Boston Whaler, and Azimut Yachts, under renewable annual dealer agreements, each of which gives us the right to sell various makes and models of boats within a given geographic region.  Any change or termination of these agreements, or the agreements discussed above, for any reason, or changes in competitive, regulatory or marketing practices, including rebate or incentive programs, could adversely affect our results of operations.  Although there are a limited number of manufacturers of the type of boats and products that we sell, we believe that adequate alternative sources would be available to replace any manufacturer other than Sea Ray and Azimut as a product source.  These alternative sources may not be available at the time of any interruption, and alternative products may not be available at comparable terms, which could affect operating results adversely.

From March 2020 through June 2020, we temporarily closed certain departments or locations based on guidance from local government or health officials as a result of the COVID-19 global pandemic. We are following guidelines to ensure we are safely operating as recommended. As the COVID-19 pandemic is complex and evolving rapidly with many unknowns, the Company will continue to monitor ongoing developments and respond accordingly. Management expects its business, across all of its geographies, will be impacted to some degree, but the significance of the impact of the COVID-19 pandemic on the Company’s business and the duration for which it may have an impact cannot be determined at this time.

General economic conditions and consumer spending patterns can negatively impact our operating results.  Unfavorable local, regional, national, or global economic developments or uncertainties regarding future economic prospects could reduce consumer spending in the markets we serve and adversely affect our business.  Economic conditions in areas in which we operate dealerships, particularly Florida, in which we generated approximately 51%, 54% and 54% of our revenue during fiscal 2018, 2019, and 2020, respectively, can have a major impact on our operations.  Local influences, such as corporate downsizing, military base closings, inclement weather such as Hurricane Sandy in 2012 or Hurricanes Harvey and Irma in 2017, environmental conditions, and specific events, such as the BP oil spill in the Gulf of Mexico in 2010, also could adversely affect, and in certain instances have adversely affected, our operations in certain markets.

  In an economic downturn, consumer discretionary spending levels generally decline, at times resulting in disproportionately large reductions in the sale of luxury goods. Consumer spending on luxury goods also may decline as a result of lower consumer confidence levels, even if prevailing economic conditions are favorable. As a result, an economic downturn would likely impact us more than certain of our competitors due to our strategic focus on a higher end of our market. Although we have expanded our operations during periods of stagnant or modestly declining industry trends, the cyclical nature of the recreational boating industry or the lack of industry growth may adversely affect our business, financial condition, and results of operations. Any period of adverse economic conditions or low consumer confidence is likely to have a negative effect on our business.

Historically, in periods of lower consumer spending and depressed economic conditions, we have, among other things, substantially reduced our acquisition program, delayed new store openings, reduced our inventory purchases, engaged in inventory reduction efforts, closed a number of our retail locations, reduced our headcount, and amended and replaced our credit facility.  Acquisitions remain an important strategy for us, and, subject to a number of conditions, including macro-economic conditions and finding attractive acquisition targets, we plan to continue to explore opportunities through this strategy.

 
v3.20.4
Basis of Presentation
 3 Months Ended
Dec. 31, 2020
Accounting Policies [Abstract]  
Basis of Presentation

2.

BASIS OF PRESENTATION:

These unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles

generally accepted in the United States for interim financial information, the instructions to Quarterly Report on Form 10-Q, and Rule 10-01 of Regulation S-X and should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended September 30, 2020. Accordingly, these unaudited condensed consolidated financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. All adjustments, consisting of only normal recurring adjustments considered necessary for fair presentation, have been reflected in these unaudited condensed consolidated financial statements. As of December 31, 2020, our financial instruments consisted of cash and cash equivalents, accounts receivable, accounts payable, customer deposits, short-term borrowings, long-term debt, and an interest rate swap contract. The carrying amounts of our financial instruments reported on the balance sheet as of December 31, 2020, approximated fair value due either to length to maturity or existence of variable interest rates, which approximate prevailing market rates. The interest rate swap contract is reported at fair value and is designated as a cash flow hedge with changes in fair value reported in other comprehensive income. The operating results for the three months ended December 31, 2020, are not necessarily indicative of the results that may be expected in future periods.

The preparation of unaudited condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the unaudited condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Significant estimates made by us in the accompanying unaudited condensed consolidated financial statements include valuation allowances, valuation of goodwill and intangible assets, valuation of long-lived assets, and valuation of accruals. Actual results could differ from those estimates.

All references to the “Company,” “our company,” “we,” “us,” and “our” mean, as a combined company, MarineMax, Inc. and the 30 recreational boat dealers, four boat brokerage operations, and two full-service yacht repair operations acquired as of December 31, 2020 (the “acquired dealers,” and together with the brokerage and repair operations, “operating subsidiaries” or the “acquired companies”).

The unaudited condensed consolidated financial statements include our accounts and the accounts of our subsidiaries, all of which are wholly owned. All significant intercompany transactions and accounts have been eliminated.
v3.20.4
New Accounting Pronouncements
 3 Months Ended
Dec. 31, 2020
Accounting Changes And Error Corrections [Abstract]  
New Accounting Pronouncements

 

3.NEW ACCOUNTING PRONOUNCEMENTS:

 

In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract, which aligns the accounting for implementation costs incurred in a cloud computing arrangement that is a service contract with the guidance on capitalizing costs associated with developing or obtaining internal-use software. The guidance amends Accounting Standards Codification (ASC) 350 to include in its scope implementation costs of a cloud computing arrangement that is a service contract and clarifies that a customer should apply ASC 350 to determine which implementation costs should be capitalized in such a cloud computing arrangement. This guidance is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2019. We adopted ASU 2018-05 effective October 1, 2020 the first day of fiscal 2020. The adoption of this standard had no impact on our consolidated financial statements.

 

In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses. ASU 2016-13 requires entities to report “expected” credit losses on financial instruments and other commitments to extend credit rather than the current “incurred loss” model. These expected credit losses for financial assets held at the reporting date are to be based on historical experience, current conditions, and reasonable and supportable forecasts. This ASU will also require enhanced disclosures relating to significant estimates and judgments used in estimating credit losses, as well as the credit quality. This guidance is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2019. We adopted ASU 2016-13 effective October 1, 2020 the first day of fiscal 2020. The adoption of this standard had no impact on our consolidated financial statements.
v3.20.4
Revenue Recognition
 3 Months Ended
Dec. 31, 2020
Revenue From Contract With Customer [Abstract]  
Revenue Recognition

4.

REVENUE RECOGNITION:

The majority of our revenue is from contracts with customers for the sale of boats, motors, and trailers. We recognize revenue from boat, motor, and trailer sales upon transfer of control of the boat, motor, or trailer to the customer, which is generally upon acceptance or delivery to the customer. The transaction price is determined with the customer at time of sale. Customers may trade in boats to apply toward the purchase of a new or used boat. The trade-in is a type of noncash consideration measured at fair value, based on external and internal market data and applied as payment to the contract price for the purchased boat. At the time of acceptance or delivery, the customer is able to direct the use of, and obtain substantially all of the benefits of the boat, motor, or trailer at such time. We recognize commissions earned from a brokerage sale when the related brokerage transaction closes upon transfer of control of the boat, motor, or trailer to the customer, which is generally upon acceptance or delivery to the customer.

We do not directly finance our customers’ boat, motor, or trailer purchases. In many cases, we assist with third-party financing for boat, motor, and trailer sales. We recognize commissions earned by us for placing notes with financial institutions in connection with customer boat financing when we recognize the related boat sales. Pursuant to negotiated agreements with financial institutions, we are charged back for a portion of these fees should the customer terminate or default on the related finance contract before it is outstanding for a stipulated minimum period of time.  We base the chargeback allowance, which was not material to the unaudited condensed consolidated financial statements taken as a whole as of December 31, 2020, on our experience with repayments or defaults on the related finance contracts. We recognize variable consideration from commissions earned on extended warranty service contracts sold on behalf of third-party insurance companies at generally the later of customer acceptance of the service contract terms as evidenced by contract execution or recognition of the related boat sale. We also recognize variable consideration from marketing fees earned on insurance products sold by third-party insurance companies at the later of customer acceptance of the insurance product as evidenced by contract execution or when the related boat sale is recognized.

We recognize revenue from parts and service operations (boat maintenance and repairs) over time as services are performed. Each boat maintenance and repair service is a single performance obligation that includes both the parts and labor associated with the service. Payment for boat maintenance and repairs is typically due upon the completion of the service, which is generally completed within a short period of time from contract inception. We satisfy our performance obligations, transfer control, and recognize revenue over time for parts and service operations because we are creating a contract asset with no alternative use and we have an enforceable right to payment for performance completed to date. Contract assets primarily relate to our right to consideration for work in process not yet billed at the reporting date associated with maintenance and repair services. We use an input method to recognize revenue and measure progress based on labor hours expended to satisfy the performance obligation at average labor rates. We have determined labor hours expended to be the relevant measure of work performed to complete the maintenance and repair service for the customer. As a practical expedient, because repair and maintenance service contracts have an original duration of one year or less, we do not consider the time value of money, and we do not disclose estimated revenue expected to be recognized in the future for performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period or when we expect to recognize such revenue.     

Contract liabilities primarily consist of customer deposits. We recognize contract liabilities (customer deposits) as revenue at the time of delivery or acceptance by the customers. Contract assets, recorded in prepaid expenses and other current assets, totaled approximately $3.6 million and $4.5 million as of December 31, 2019 and December 31, 2020, respectively.

We recognize deferred revenue from service operations and slip and storage services over time on a straight-line basis over the term of the contract as our performance obligations are met. We recognize income from the rentals of chartering power yachts over time on a straight-line basis over the term of the contract as our performance obligations are met.

The following table sets forth percentages on the timing of revenue recognition for the three months ended December 31,

 

 

 

Three Months Ended

 

 

 

 

December 31,

 

 

 

 

2019

 

 

2020

 

 

Goods and services transferred at a point in time

 

 

90.8

%

 

 

90.5

%

 

Goods and services transferred over time

 

 

9.2

%

 

 

9.5

%

 

     Total Revenue

 

 

100.0

%

 

 

100.0

%

 

 
v3.20.4
Leases
 3 Months Ended
Dec. 31, 2020
Leases [Abstract]  
Leases

5.

LEASES:

 

The majority of leases that we enter into are real estate leases. We lease numerous facilities relating to our operations, including showrooms, display lots, marinas, service facilities, slips, offices, equipment and our corporate headquarters. Leases for real property have terms, including renewal options, ranging from one to in excess of twenty-five years. In addition, we lease certain charter boats for our yacht charter business. As of December 31, 2020, the weighted-average remaining lease term for our leases was approximately 13 years. All of our leases are classified as operating leases, which are included as ROU assets and operating lease liabilities in our unaudited condensed consolidated balance sheet. For the three months ended December 31, 2019 and December 31, 2020, operating lease expenses recorded in selling, general, and administrative expenses were approximately $3.3 million and $5.8 million, respectively. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. We do not have any significant leases that have not yet commenced but that create significant rights and obligations for us. We have elected the practical expedient under ASC 842 to not separate lease and nonlease components.

 

Our real estate and equipment leases often require that we pay maintenance in addition to rent. Additionally, our real estate leases generally require payment of real estate taxes and insurance. Maintenance, real estate taxes, and insurance payments are generally variable and based on actual costs incurred by the lessor. Therefore, these amounts are not included in the consideration of the contract when determining the ROU asset and lease liability, but are reflected as variable lease expenses.

 

A majority of our lease agreements include fixed rental payments. Certain of our lease agreements include fixed rental payments that are adjusted periodically by a fixed rate or changes in an index. The fixed payments, including the effects of changes in the fixed rate or amount, and renewal options reasonably certain to be exercised, are included in the measurement of the related lease liability. Most of our real estate leases include one or more options to renew, with renewal terms that can extend the lease term from one to five years or more. The exercise of lease renewal options is at our sole discretion. If it is reasonably certain that we will exercise such options, the periods covered by such options are included in the lease term and are recognized as part of our right of use assets and lease liabilities. The depreciable life of assets and leasehold improvements are limited by the expected lease term, which includes renewal options reasonably certain to be exercised.

 

For our incremental borrowing rate, we generally use a portfolio approach to determine the discount rate for leases with similar characteristics. We determine discount rates based upon our hypothetical credit rating, taking into consideration our short-term borrowing rates, and then adjusting as necessary for the appropriate lease term. As of December 31, 2020, the weighted-average discount rate used was approximately 5.7%.

 

 


 

As of December 31, 2020, maturities of lease liabilities are summarized as follows:

 

 

 

(Amounts in thousands)

 

2021

 

$

15,640

 

2022

 

 

13,876

 

2023

 

 

12,625

 

2024

 

 

10,754

 

2025

 

 

9,595

 

Thereafter

 

 

93,919

 

Total lease payments

 

 

156,409

 

Less: interest

 

 

(48,328

)

Present value of lease liabilities

 

$

108,081

 

 

 

Supplemental cash flow information related to leases was as follows (amounts in thousands):

 

Three Months Ended

 

 

December 31,

 

 

2019

 

 

2020

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

 

 

 

Operating cash flows from operating leases

$

2,588

 

 

$

4,296

 

Right-of-use assets obtained in exchange for lease obligations:

 

 

 

 

 

 

 

Operating leases

$

560

 

 

$

70,275

 

 
v3.20.4
Inventories
 3 Months Ended
Dec. 31, 2020
Inventory Disclosure [Abstract]  
Inventories

6.

INVENTORIES:

Inventory costs consist of the amount paid to acquire inventory, net of vendor consideration and purchase discounts, the cost of equipment added, reconditioning costs, and transportation costs relating to acquiring inventory for sale. We state new and used boat, motor, and trailer inventories at the lower of cost, determined on a specific-identification basis, or net realizable value.  We state parts and accessories at the lower of cost, determined on an average cost basis, or net realizable value.  We utilize our historical experience, the aging of the inventories, and our consideration of current market trends as the basis for determining a lower of cost or net realizable value.  We do not believe there is a reasonable likelihood that there will be a change in the future estimates or assumptions we use to calculate our valuation allowance which would result in a material effect on our operating results. As of September 30, 2020 and December 31, 2020, our valuation allowance for new and used boat, motor, and trailer inventories was $2.4 million and $2.3 million, respectively. If events occur and market conditions change, causing the fair value to fall below carrying value, the valuation allowance could increase.
v3.20.4
Impairment of Long-Lived Assets
 3 Months Ended
Dec. 31, 2020
Asset Impairment Charges [Abstract]  
Impairment of Long-Lived Assets

7.

IMPAIRMENT OF LONG-LIVED ASSETS:

FASB Accounting Standards Codification 360-10-40, “Property, Plant, and Equipment - Impairment or Disposal of Long-Lived Assets” (“ASC 360-10-40”), requires that long-lived assets, such as property and equipment and purchased intangibles subject to amortization, be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of the asset (or asset group) is measured by comparison of its carrying amount to undiscounted future net cash flows the asset (or asset group) is expected to generate over the remaining life of the asset (or asset group). If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the asset (or asset group) exceeds its fair market value. Estimates of expected future cash flows represent our best estimate based on currently available information and reasonable and supportable assumptions. Our impairment loss calculations contain uncertainties because they require us to make assumptions and to apply judgment in order to estimate expected future cash flows.  Any impairment recognized in accordance with ASC 360-10-40 is permanent and may not be restored. Based upon our most recent analysis, we believe no impairment of long-lived assets existed as of December 31, 2020. 
v3.20.4
Goodwill
 3 Months Ended
Dec. 31, 2020
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill

8.

GOODWILL:

We account for acquisitions in accordance with FASB Accounting Standards Codification (“ASC”) 805, “Business Combinations” (“ASC 805”), and goodwill in accordance with ASC 350, “Intangibles — Goodwill and Other” (“ASC 350”).  For business combinations, the excess of the purchase price over the estimated fair value of net assets acquired in a business combination is recorded as goodwill. In October 2020, we purchased all of the outstanding equity of SkipperBud’s for an aggregate purchase price

of $55,000,000, subject to certain customary closing and post-closing adjustments, and net working capital adjustments including certain holdbacks. In addition, the former equity owners of SkipperBud’s (“Skippers Sellers”), have the opportunity to earn additional consideration as part of an earnout subject to the achievement of certain pre-tax earnings levels. The maximum amount of consideration that can be paid under the earnout is approximately $9.3 million. The fair value of $8.2 million of the contingent consideration arrangement was estimated by a third party valuation expert by applying an income valuation approach. The earnout was estimated based on forecasted pre-tax earnings as a base scenario (among other assumptions) subject to a Monte Carlo simulation. The Skippers Sellers are subject to certain customary post-closing covenants and indemnities. The acquisition of SkipperBud’s enhances our sales, brokerage, service and marina/storage presence in the Great Lakes region and West Coast of the Unites States.

The following table summarizes the consideration paid for SkipperBud’s and the preliminary allocation of the purchase consideration to the estimated fair value of the assets acquired and liabilities assumed at the acquisition date.

 

 

(Amounts in thousands)

 

Consideration:

 

 

 

 

Cash purchase price and net working capital adjustments, net of cash acquired of $30,615

 

$

50,261

 

Contingent consideration arrangement

 

 

8,200

 

Fair value of total consideration transferred

 

$

58,461

 

 

 

 

 

 

Recognized amounts of identifiable assets acquired and liabilities assumed:

 

 

 

 

Current assets, net of cash acquired of $30,615

 

$

50,688

 

Property and equipment

 

 

4,859

 

Intangible assets

 

 

1,978

 

Current liabilities

 

 

(55,427

)

Total identifiable net assets acquired:

 

 

2,098

 

Goodwill

 

$

56,363

 

Total

 

$

58,461

 

The fair value of current assets acquired includes accounts receivable and inventory of approximately $5.4 million and $42.3 million, respectively. The fair value of current liabilities assumed includes short-term borrowings of approximately $30.5 million, accrued expenses of approximately $14.6 million, and customer deposits of approximately $7.5 million. We recorded approximately $56.4 million in goodwill and approximately $2.0 million of other identifiable intangibles (trade name and customer relationships) in connection with the SkipperBud’s acquisition, however, purchase price allocations are preliminary pending receipt of final valuation analyses of certain assets from our valuation advisor. The goodwill represents our enhanced geographic reach and brand infrastructure in the Great Lakes region and West Coast of the Unites States. The majority of the goodwill is expected to be deductible for tax purposes. The intangible assets have a weighted average useful life of approximately 3.3 years. For the three months ended December 31, 2020, SkipperBud’s revenue was approximately $40.4 million and income before taxes was approximately $1.9 million. SkipperBud’s financial information for the three months ended December 31, 2019 was not practical to obtain for comparative purposes and as such is not presented because SkipperBud’s historical monthly internal accounting and reporting processes and practices would not provide complete information sufficient for the purposes of this pro forma disclosure.

In July 2020, we purchased Northrop & Johnson, a leading superyacht brokerage and services company. In March 2020, we purchased Boatyard, a digital platform with an expansive range of on-demand services to streamline the boating experience by qualified service providers from a smartphone.

In total, current and previous acquisitions have resulted in the recording of $84.3 million and $143.1 million in goodwill and other intangible assets as of September 30, 2020 and December 31, 2020, respectively. In accordance with ASC 350, we test goodwill for impairment at least annually and whenever events or changes in circumstances indicate that the carrying value may not be recoverable.  Our annual impairment test is performed during the third fiscal quarter.  If the carrying amount of a reporting unit’s goodwill exceeds its fair value we recognize an impairment loss in accordance with ASC 350. As of December 31, 2020, and based upon our most recent analysis, we determined through our qualitative assessment that it is not “more likely than not” that the fair values of our reporting units are less than their carrying values.  As a result, we were not required to perform a quantitative goodwill impairment. 

v3.20.4
Income Taxes
 3 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Income Taxes

9.

INCOME TAXES:

We account for income taxes in accordance with FASB Accounting Standards Codification 740, “Income Taxes” (“ASC 740”). Under ASC 740, we recognize deferred tax assets and liabilities for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. We measure deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which we expect those temporary

differences to be recovered or settled. We record valuation allowances to reduce our deferred tax assets to the amount expected to be realized by considering all available positive and negative evidence.

 

During the three months ended December 31, 2019 and 2020 we recognized an income tax provision of $3.2 million and $7.1 million, respectively. The effective income tax rate for the three months ended December 31, 2019 and 2020 was 26.3% and 23.2%, respectively.

 
v3.20.4
Short-Term Borrowings and Long-Term Debt
 3 Months Ended
Dec. 31, 2020
Debt Disclosure [Abstract]  
Short-Term Borrowings and Long-Term Debt

10.SHORT-TERM BORROWINGS AND LONG-TERM DEBT:

 

Short-term Borrowings

In May 2020, we entered into a Loan and Security Agreement (the “Credit Facility”), with Wells Fargo Commercial Distribution Finance LLC, M&T Bank, Bank of the West, and Truist Bank. The Credit Facility provides the Company a line of credit with asset based borrowing availability of up to $440 million for working capital and inventory financing, with the amount permissible pursuant to a borrowing base formula. The Credit Facility has a three-year term and expires in May 2023, subject to extension for two one-year periods, with lender approval.   

The Credit Facility has certain financial covenants as specified in the agreement. The covenants include provisions that our leverage ratio must not exceed 2.75 to 1.0 and that our current ratio must be greater than 1.2 to 1.0. The interest rate for amounts outstanding under the Credit Facility is 345 basis points plus the greater of 75 basis points or the one-month LIBOR. There is an unused line fee of ten basis points on the unused portion of the Credit Facility. As of December 31, 2020, we were in compliance with all covenants under the Credit Facility.

 

New inventory borrowing eligibility will generally mature 1,080 days from the original invoice date. Used inventory borrowing eligibility will generally mature 361 days from the date we acquire the used inventory. The collateral for the Credit Facility is all of our personal property with certain limited exceptions. None of our real estate has been pledged for collateral for the Credit Facility.

As of December 31, 2020, our indebtedness associated with financing our inventory and working capital needs totaled approximately $163.4 million. As of December 31, 2019 and 2020, the interest rate on the outstanding short-term borrowings was approximately 5.6% and 4.2%, respectively. As of December 31, 2020, our additional available borrowings under our Credit Facility were approximately $133.4 million based upon the outstanding borrowing base availability.

As is common in our industry, we receive interest assistance directly from boat manufacturers, including Brunswick. The interest assistance programs vary by manufacturer, but generally include periods of free financing or reduced interest rate programs. The interest assistance may be paid directly to us or our lender depending on the arrangements the manufacturer has established. We classify interest assistance received from manufacturers as a reduction of inventory cost and related cost of sales as opposed to netting the assistance against our interest expense incurred with our lenders.

The availability and costs of borrowed funds can adversely affect our ability to obtain adequate boat inventory and the holding costs of that inventory as well as the ability and willingness of our customers to finance boat purchases.  However, we rely on our Credit Facility to purchase our inventory of boats. The aging of our inventory limits our borrowing capacity as defined curtailments reduce the allowable advance rate as our inventory ages. Our access to funds under our Credit Facility also depends upon the ability of our lenders to meet their funding commitments, particularly if they experience shortages of capital or experience excessive volumes of borrowing requests from others during a short period of time. Unfavorable economic conditions, weak consumer spending, turmoil in the credit markets, and lender difficulties, among other potential reasons, could interfere with our ability to utilize our Credit Facility to fund our operations. Any inability to utilize our Credit Facility could require us to seek other sources of funding to repay amounts outstanding under the credit agreements or replace or supplement our credit agreements, which may not be possible at all or under commercially reasonable terms.

Similarly, decreases in the availability of credit and increases in the cost of credit adversely affect the ability of our customers to purchase boats from us and thereby adversely affect our ability to sell our products and impact the profitability of our finance and insurance activities.

 

 

Long-term Debt

 

( amounts in thousands)

 

December 31, 2020

 

Mortgage facility payable to Flagship Bank bearing interest at 2.25% (prime minus 100 basis points with a floor of 2.00%). Requires monthly principal and interest payments with a balloon payment of approximately $4.0 million due August 2027.

 

$

7,272

 

Mortgage facility payable to Seacoast National Bank bearing interest at 3.0% (greater of 3% or prime minus 62.5 basis points).  Requires monthly interest payments for the first year and then monthly principal and interest payments with a balloon payment of approximately $6.0 million due September 2031.

 

 

17,675

 

Mortgage facility payable to Hancock Whitney Bank bearing interest at 2.6%  ( prime minus 62.5 basis points with a floor of 2.25%).  Requires monthly principal and interest payments with a balloon payment of approximately $15.5 million due November 2027. 50% of the outstanding borrowings are hedged with an interest rate swap contract with a fixed rate of 3.2%.

 

 

28,540

 

Revolving mortgage facility with FineMark National Bank & Trust bearing interest at 3.0% (base minus 25 basis points with a floor of 3%). Facility matures in September 2027. Current available borrowings under the facility were approximately $26.4 million at December 31, 2020.

 

 

—

 

 

 

 

53,487

 

Less current portion

 

 

(2,704

)

Less unamortized portion of debt issuance costs

 

 

(659

)

 

 

$

50,124

 

 
v3.20.4
Stock-Based Compensation
 3 Months Ended
Dec. 31, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Stock-Based Compensation

11.

STOCK-BASED COMPENSATION:

We account for our stock-based compensation plans following the provisions of FASB Accounting Standards Codification 718, “Compensation — Stock Compensation” (“ASC 718”).  In accordance with ASC 718, we use the Black-Scholes valuation model for valuing all options granted (Note 12) and shares purchased under our Amended 2008 Employee Stock Purchase Plan (“Stock Purchase Plan”) (Note 13). We measure compensation for restricted stock awards and restricted stock units (Note 14) at fair value on the grant date based on the number of shares expected to vest and the quoted market price of our common stock. We recognize compensation cost for all awards in operations on a straight-line basis over the requisite service period for each separately vesting portion of the award.

During the three months ended December 31, 2019 and 2020, we recognized stock-based compensation expense of approximately $1.5 million and $2.0 million, respectively,  in selling, general, and administrative expenses in the unaudited condensed consolidated statements of operations.

Cash received from option exercises under all share-based compensation arrangements for the three months ended December 31, 2019 and 2020, was approximately $0.6 million and $1.5 million, respectively.  We currently expect to satisfy share-based awards with registered shares available to be issued from the Stock Purchase Plan.
v3.20.4
The Incentive Stock Plans
 3 Months Ended
Dec. 31, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
The Incentive Stock Plans

12.

THE INCENTIVE STOCK PLANS:

During February 2020, our shareholders approved a proposal to amend the 2011 Stock-Based Compensation Plan (“2011 Plan”) to increase the 3,200,456 share threshold by 1,000,000 shares to 4,200,456 shares.  During January 2011, our shareholders approved a proposal to authorize our 2011 Plan, which replaced our 2007 Incentive Compensation Plan (“2007 Plan”). Our 2011 Plan provides for the grant of stock options, stock appreciation rights, restricted stock, stock units, bonus stock, dividend equivalents, other stock related awards, and performance awards (collectively “awards”), that may be settled in cash, stock, or other property. Our 2011 Plan is designed to attract, motivate, retain, and reward our executives, employees, officers, directors, and independent contractors by providing such persons with annual and long-term performance incentives to expend their maximum efforts in the creation of shareholder value. Subsequent to the February 2020 amendment described above, the total number of shares of our common stock that may be subject to awards under the 2011 Plan is equal to 4,000,000 shares, plus: (i) any shares available for issuance and not subject to an award under the 2007 Plan, which was 200,456 shares at the time of approval of the 2011 Plan; (ii) the number of shares with respect to which awards granted under the 2011 Plan and the 2007 Plan terminate without the issuance of the shares or where the shares are forfeited or repurchased; (iii) with respect to awards granted under the 2011 Plan and the 2007 Plan, the number of shares that are not issued as a result of the award being settled for cash or otherwise not issued in connection with the exercise or payment of the award; and (iv) the number of shares that are surrendered or withheld in payment of the exercise price of any award or any tax withholding requirements in connection with any award granted under the 2011 Plan or the 2007 Plan. The 2011 Plan was to  terminate in January 2021 but has since been extended to February 2030, and awards may be granted at any time during the life of the

2011 Plan. The dates on which awards vest are determined by the Board of Directors or the Plan Administrator. The Board of Directors has appointed the Compensation Committee as the Plan Administrator. The exercise prices of options are determined by the Board of Directors or the Plan Administrator and are at least equal to the fair market value of shares of common stock on the date of grant. The term of options under the 2011 Plan may not exceed ten years. The options granted have varying vesting periods. To date, we have not settled or been under any obligation to settle any awards in cash.

The following table summarizes activity from our incentive stock plans from September 30, 2020 through December 31, 2020:

 

 

 

Shares

Available

for Grant

 

 

Options Outstanding

 

 

Aggregate

Intrinsic Value

(in thousands)

 

 

Weighted

Average

Exercise

Price

 

 

Weighted

Average

Remaining Contractual

Life

 

Balance as of September 30, 2020

 

 

1,275,415

 

 

 

196,329

 

 

$

2,636

 

 

$

12.12

 

 

 

2.5

 

Options granted

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

Options cancelled/forfeited/expired

 

 

10,000

 

 

 

(10,000

)

 

 

-

 

 

 

-

 

 

 

 

 

Options exercised

 

 

-

 

 

 

(56,746

)

 

 

-

 

 

 

 

 

 

 

 

 

Restricted stock awards issued

 

 

(336,091

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

Restricted stock awards forfeited

 

 

3,000

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

Additional shares of stock issued

 

 

(1,777

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

Balance as of December 31, 2020

 

 

950,547

 

 

 

129,583

 

 

$

3,116

 

 

$

11.71

 

 

 

2.5

 

Exercisable as of December 31, 2020

 

 

 

 

 

 

129,583

 

 

$

3,116

 

 

$

11.71

 

 

 

2.5

 

 

No options were granted for the three months ended December 31, 2019 and 2020. The total intrinsic value of options exercised during the three months ended December 31, 2019 and 2020, was $0.1 million and $1.1 million, respectively.

 

We used the Black-Scholes model to estimate the fair value of options granted. The expected term of options granted is estimated based on historical experience. Volatility is based on the historical volatility of our common stock. The risk-free rate for periods within the contractual term of the options is based on the U.S. Treasury yield curve in effect at the time of grant.
v3.20.4
Employee Stock Purchase Plan
 3 Months Ended
Dec. 31, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Employee Stock Purchase Plan

13.

EMPLOYEE STOCK PURCHASE PLAN:

During February 2019, our shareholders approved a proposal to amend our Stock Purchase Plan to increase the number of shares available under that plan by 500,000 shares. The Stock Purchase Plan as amended provides for up to 1,500,000 shares of common stock to be available for purchase by our regular employees who have completed at least one year of continuous service. In addition, there were 52,837 shares of common stock available under our 1998 Employee Stock Purchase Plan, which have been made available for issuance under our Stock Purchase Plan. The Stock Purchase Plan provides for implementation of annual offerings beginning on the first day of October in each of the years 2008 through 2027, with each offering terminating on September 30 of the following year. Each annual offering may be divided into two six-month offerings. For each offering, the purchase price per share will be the lower of: (i) 85% of the closing price of the common stock on the first day of the offering or (ii) 85% of the closing price of the common stock on the last day of the offering. The purchase price is paid through periodic payroll deductions not to exceed 10% of the participant’s earnings during each offering period. However, no participant may purchase more than $25,000 worth of common stock annually.

We used the Black-Scholes model to estimate the fair value of options granted to purchase shares issued pursuant to the Stock Purchase Plan. Volatility is based on the historical volatility of our common stock. The risk-free rate for periods within the contractual term of the options is based on the U.S. Treasury yield curve in effect at the time of grant.

The following are the weighted average assumptions used for each respective period:

 

 

 

Three Months Ended

 

 

 

 

December 31,

 

 

 

 

2019

 

 

2020

 

 

Dividend yield

 

0.0%

 

 

0.0%

 

 

Risk-free interest rate

 

1.8%

 

 

0.1%

 

 

Volatility

 

52.4%

 

 

70.2%

 

 

Expected life

 

Six Months

 

 

Six Months

 

 

 

 

As of December 31, 2020, we had issued 1,101,135 shares of common stock under our Stock Purchase Plan.

 
v3.20.4
Restricted Stock Awards
 3 Months Ended
Dec. 31, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Restricted Stock Awards

14.

RESTRICTED STOCK AWARDS:

We have granted non-vested (restricted) stock awards (“restricted stock”) and restricted stock units (“RSUs”) to employees, Directors, and Officers pursuant to the 2011 Plan and the 2007 Plan. The restricted stock awards and RSUs have varying vesting periods, but generally become fully vested between two and four years after the grant date, depending on the specific award, performance targets met for performance based awards granted to officers, and vesting period for time based awards. Officer performance based awards are granted at the target amount of shares that may be earned and the actual amount of the award earned generally could range from 0% to 175% of the target number of shares based on the actual specified performance target met. We accounted for the restricted stock awards granted using the measurement and recognition provisions of ASC 718. Accordingly, the fair value of the restricted stock awards, including performance based awards, is measured on the grant date and recognized in earnings over the requisite service period for each separately vesting portion of the award.

The following table summarizes restricted stock award activity from September 30, 2020 through December 31, 2020:

 

 

 

Shares/ Units

 

 

Weighted

Average Grant

Date Fair Value

 

Non-vested balance as of September 30, 2020

 

 

902,631

 

 

$

18.08

 

Changes during the period

 

 

 

 

 

 

 

 

Awards granted

 

 

336,091

 

 

$

30.04

 

Awards vested

 

 

(152,625

)

 

$

17.01

 

Awards forfeited

 

 

(3,000

)

 

$

17.39

 

Non-vested balance as of December 31, 2020

 

 

1,083,097

 

 

 

 

 

 

As of December 31, 2020, we had approximately $16.3 million of total unrecognized compensation cost, assuming applicable performance conditions are met, related to non-vested restricted stock awards. We expect to recognize that cost over a weighted average period of 2.6 years.
v3.20.4
Net Income Per Share
 3 Months Ended
Dec. 31, 2020
Earnings Per Share [Abstract]  
Net Income Per Share

15.

NET INCOME PER SHARE:

The following table presents shares used in the calculation of basic and diluted net income per share:

 

 

 

Three Months Ended

 

 

 

December 31,

 

 

 

2019

 

 

2020

 

Weighted average common shares outstanding used in

   calculating basic income per share

 

 

21,453,914

 

 

 

22,025,898

 

Effect of dilutive options and non-vested restricted stock

   awards

 

 

436,151

 

 

 

719,227

 

Weighted average common and common equivalent shares

   used in calculating diluted income per share

 

 

21,890,065

 

 

 

22,745,125

 

 

 

For the three months ended December 31, 2019 and 2020, there were 32,366 and 30,807 weighted average shares of options outstanding, respectively, that were not included in the computation of diluted income per share because the options’ exercise prices were greater than the average market price of our common stock, and therefore, their effect would be anti-dilutive.    

 

 
v3.20.4
Commitments and Contingencies
 3 Months Ended
Dec. 31, 2020
Commitments And Contingencies Disclosure [Abstract]  
Commitments and Contingencies

16.

COMMITMENTS AND CONTINGENCIES:

We are party to various legal actions arising in the ordinary course of business. While it is not feasible to determine the actual outcome of these actions as of December 31, 2020, we believe that these matters should not have a material adverse effect on our unaudited condensed consolidated financial condition, results of operations, or cash flows.
v3.20.4
Basis of Presentation (Policies)
 3 Months Ended
Dec. 31, 2020
Accounting Policies [Abstract]  
Fair Value of Financial Instruments The carrying amounts of our financial instruments reported on the balance sheet as of December 31, 2020, approximated fair value due either to length to maturity or existence of variable interest rates, which approximate prevailing market rates.
Use of Estimates

The preparation of unaudited condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the unaudited condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Significant estimates made by us in the accompanying unaudited condensed consolidated financial statements include valuation allowances, valuation of goodwill and intangible assets, valuation of long-lived assets, and valuation of accruals. Actual results could differ from those estimates.
Consolidation

The unaudited condensed consolidated financial statements include our accounts and the accounts of our subsidiaries, all of which are wholly owned. All significant intercompany transactions and accounts have been eliminated.
New Accounting Pronouncements

 

In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract, which aligns the accounting for implementation costs incurred in a cloud computing arrangement that is a service contract with the guidance on capitalizing costs associated with developing or obtaining internal-use software. The guidance amends Accounting Standards Codification (ASC) 350 to include in its scope implementation costs of a cloud computing arrangement that is a service contract and clarifies that a customer should apply ASC 350 to determine which implementation costs should be capitalized in such a cloud computing arrangement. This guidance is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2019. We adopted ASU 2018-05 effective October 1, 2020 the first day of fiscal 2020. The adoption of this standard had no impact on our consolidated financial statements.

 

In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses. ASU 2016-13 requires entities to report “expected” credit losses on financial instruments and other commitments to extend credit rather than the current “incurred loss” model. These expected credit losses for financial assets held at the reporting date are to be based on historical experience, current conditions, and reasonable and supportable forecasts. This ASU will also require enhanced disclosures relating to significant estimates and judgments used in estimating credit losses, as well as the credit quality. This guidance is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2019. We adopted ASU 2016-13 effective October 1, 2020 the first day of fiscal 2020. The adoption of this standard had no impact on our consolidated financial statements.
Revenue Recognition

The majority of our revenue is from contracts with customers for the sale of boats, motors, and trailers. We recognize revenue from boat, motor, and trailer sales upon transfer of control of the boat, motor, or trailer to the customer, which is generally upon acceptance or delivery to the customer. The transaction price is determined with the customer at time of sale. Customers may trade in boats to apply toward the purchase of a new or used boat. The trade-in is a type of noncash consideration measured at fair value, based on external and internal market data and applied as payment to the contract price for the purchased boat. At the time of acceptance or delivery, the customer is able to direct the use of, and obtain substantially all of the benefits of the boat, motor, or trailer at such time. We recognize commissions earned from a brokerage sale when the related brokerage transaction closes upon transfer of control of the boat, motor, or trailer to the customer, which is generally upon acceptance or delivery to the customer.

We do not directly finance our customers’ boat, motor, or trailer purchases. In many cases, we assist with third-party financing for boat, motor, and trailer sales. We recognize commissions earned by us for placing notes with financial institutions in connection with customer boat financing when we recognize the related boat sales. Pursuant to negotiated agreements with financial institutions, we are charged back for a portion of these fees should the customer terminate or default on the related finance contract before it is outstanding for a stipulated minimum period of time.  We base the chargeback allowance, which was not material to the unaudited condensed consolidated financial statements taken as a whole as of December 31, 2020, on our experience with repayments or defaults on the related finance contracts. We recognize variable consideration from commissions earned on extended warranty service contracts sold on behalf of third-party insurance companies at generally the later of customer acceptance of the service contract terms as evidenced by contract execution or recognition of the related boat sale. We also recognize variable consideration from marketing fees earned on insurance products sold by third-party insurance companies at the later of customer acceptance of the insurance product as evidenced by contract execution or when the related boat sale is recognized.

We recognize revenue from parts and service operations (boat maintenance and repairs) over time as services are performed. Each boat maintenance and repair service is a single performance obligation that includes both the parts and labor associated with the service. Payment for boat maintenance and repairs is typically due upon the completion of the service, which is generally completed within a short period of time from contract inception. We satisfy our performance obligations, transfer control, and recognize revenue over time for parts and service operations because we are creating a contract asset with no alternative use and we have an enforceable right to payment for performance completed to date. Contract assets primarily relate to our right to consideration for work in process not yet billed at the reporting date associated with maintenance and repair services. We use an input method to recognize revenue and measure progress based on labor hours expended to satisfy the performance obligation at average labor rates. We have determined labor hours expended to be the relevant measure of work performed to complete the maintenance and repair service for the customer. As a practical expedient, because repair and maintenance service contracts have an original duration of one year or less, we do not consider the time value of money, and we do not disclose estimated revenue expected to be recognized in the future for performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period or when we expect to recognize such revenue.     

Contract liabilities primarily consist of customer deposits. We recognize contract liabilities (customer deposits) as revenue at the time of delivery or acceptance by the customers. Contract assets, recorded in prepaid expenses and other current assets, totaled approximately $3.6 million and $4.5 million as of December 31, 2019 and December 31, 2020, respectively.

We recognize deferred revenue from service operations and slip and storage services over time on a straight-line basis over the term of the contract as our performance obligations are met. We recognize income from the rentals of chartering power yachts over time on a straight-line basis over the term of the contract as our performance obligations are met.

The following table sets forth percentages on the timing of revenue recognition for the three months ended December 31,

 

 

 

Three Months Ended

 

 

 

 

December 31,

 

 

 

 

2019

 

 

2020

 

 

Goods and services transferred at a point in time

 

 

90.8

%

 

 

90.5

%

 

Goods and services transferred over time

 

 

9.2

%

 

 

9.5

%

 

     Total Revenue

 

 

100.0

%

 

 

100.0

%

 
Inventories

Inventory costs consist of the amount paid to acquire inventory, net of vendor consideration and purchase discounts, the cost of equipment added, reconditioning costs, and transportation costs relating to acquiring inventory for sale. We state new and used boat, motor, and trailer inventories at the lower of cost, determined on a specific-identification basis, or net realizable value.  We state parts and accessories at the lower of cost, determined on an average cost basis, or net realizable value.  We utilize our historical experience, the aging of the inventories, and our consideration of current market trends as the basis for determining a lower of cost or net realizable value.  We do not believe there is a reasonable likelihood that there will be a change in the future estimates or assumptions we use to calculate our valuation allowance which would result in a material effect on our operating results. As of September 30, 2020 and December 31, 2020, our valuation allowance for new and used boat, motor, and trailer inventories was $2.4 million and $2.3 million, respectively. If events occur and market conditions change, causing the fair value to fall below carrying value, the valuation allowance could increase.
Impairment of Long-Lived Assets

FASB Accounting Standards Codification 360-10-40, “Property, Plant, and Equipment - Impairment or Disposal of Long-Lived Assets” (“ASC 360-10-40”), requires that long-lived assets, such as property and equipment and purchased intangibles subject to amortization, be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of the asset (or asset group) is measured by comparison of its carrying amount to undiscounted future net cash flows the asset (or asset group) is expected to generate over the remaining life of the asset (or asset group). If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the asset (or asset group) exceeds its fair market value. Estimates of expected future cash flows represent our best estimate based on currently available information and reasonable and supportable assumptions. Our impairment loss calculations contain uncertainties because they require us to make assumptions and to apply judgment in order to estimate expected future cash flows.  Any impairment recognized in accordance with ASC 360-10-40 is permanent and may not be restored. Based upon our most recent analysis, we believe no impairment of long-lived assets existed as of December 31, 2020. 
v3.20.4
Revenue Recognition (Tables)
 3 Months Ended
Dec. 31, 2020
Revenue From Contract With Customer [Abstract]  
Summary of Percentage on Timing of Revenue Recognition

The following table sets forth percentages on the timing of revenue recognition for the three months ended December 31,

 

 

 

Three Months Ended

 

 

 

 

December 31,

 

 

 

 

2019

 

 

2020

 

 

Goods and services transferred at a point in time

 

 

90.8

%

 

 

90.5

%

 

Goods and services transferred over time

 

 

9.2

%

 

 

9.5

%

 

     Total Revenue

 

 

100.0

%

 

 

100.0

%

 
v3.20.4
Leases (Tables)
 3 Months Ended
Dec. 31, 2020
Leases [Abstract]  
Summary of Maturities of Lease Liabilities

 


 

As of December 31, 2020, maturities of lease liabilities are summarized as follows:

 

 

 

(Amounts in thousands)

 

2021

 

$

15,640

 

2022

 

 

13,876

 

2023

 

 

12,625

 

2024

 

 

10,754

 

2025

 

 

9,595

 

Thereafter

 

 

93,919

 

Total lease payments

 

 

156,409

 

Less: interest

 

 

(48,328

)

Present value of lease liabilities

 

$

108,081

 
Schedule of Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information related to leases was as follows (amounts in thousands):

 

Three Months Ended

 

 

December 31,

 

 

2019

 

 

2020

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

 

 

 

Operating cash flows from operating leases

$

2,588

 

 

$

4,296

 

Right-of-use assets obtained in exchange for lease obligations:

 

 

 

 

 

 

 

Operating leases

$

560

 

 

$

70,275

 
v3.20.4
Goodwill (Tables)
 3 Months Ended
Dec. 31, 2020
Goodwill And Intangible Assets Disclosure [Abstract]  
Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed at Acquisition Date

The following table summarizes the consideration paid for SkipperBud’s and the preliminary allocation of the purchase consideration to the estimated fair value of the assets acquired and liabilities assumed at the acquisition date.

 

 

(Amounts in thousands)

 

Consideration:

 

 

 

 

Cash purchase price and net working capital adjustments, net of cash acquired of $30,615

 

$

50,261

 

Contingent consideration arrangement

 

 

8,200

 

Fair value of total consideration transferred

 

$

58,461

 

 

 

 

 

 

Recognized amounts of identifiable assets acquired and liabilities assumed:

 

 

 

 

Current assets, net of cash acquired of $30,615

 

$

50,688

 

Property and equipment

 

 

4,859

 

Intangible assets

 

 

1,978

 

Current liabilities

 

 

(55,427

)

Total identifiable net assets acquired:

 

 

2,098

 

Goodwill

 

$

56,363

 

Total

 

$

58,461

 
v3.20.4
Short-Term Borrowings and Long-Term Debt (Tables)
 3 Months Ended
Dec. 31, 2020
Debt Disclosure [Abstract]  
Schedule of Long-term Debt

( amounts in thousands)

 

December 31, 2020

 

Mortgage facility payable to Flagship Bank bearing interest at 2.25% (prime minus 100 basis points with a floor of 2.00%). Requires monthly principal and interest payments with a balloon payment of approximately $4.0 million due August 2027.

 

$

7,272

 

Mortgage facility payable to Seacoast National Bank bearing interest at 3.0% (greater of 3% or prime minus 62.5 basis points).  Requires monthly interest payments for the first year and then monthly principal and interest payments with a balloon payment of approximately $6.0 million due September 2031.

 

 

17,675

 

Mortgage facility payable to Hancock Whitney Bank bearing interest at 2.6%  ( prime minus 62.5 basis points with a floor of 2.25%).  Requires monthly principal and interest payments with a balloon payment of approximately $15.5 million due November 2027. 50% of the outstanding borrowings are hedged with an interest rate swap contract with a fixed rate of 3.2%.

 

 

28,540

 

Revolving mortgage facility with FineMark National Bank & Trust bearing interest at 3.0% (base minus 25 basis points with a floor of 3%). Facility matures in September 2027. Current available borrowings under the facility were approximately $26.4 million at December 31, 2020.

 

 

—

 

 

 

 

53,487

 

Less current portion

 

 

(2,704

)

Less unamortized portion of debt issuance costs

 

 

(659

)

 

 

$

50,124

 
v3.20.4
The Incentive Stock Plans (Tables)
 3 Months Ended
Dec. 31, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Incentive Stock Plans Activity

The following table summarizes activity from our incentive stock plans from September 30, 2020 through December 31, 2020:

 

 

 

Shares

Available

for Grant

 

 

Options Outstanding

 

 

Aggregate

Intrinsic Value

(in thousands)

 

 

Weighted

Average

Exercise

Price

 

 

Weighted

Average

Remaining Contractual

Life

 

Balance as of September 30, 2020

 

 

1,275,415

 

 

 

196,329

 

 

$

2,636

 

 

$

12.12

 

 

 

2.5

 

Options granted

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

Options cancelled/forfeited/expired

 

 

10,000

 

 

 

(10,000

)

 

 

-

 

 

 

-

 

 

 

 

 

Options exercised

 

 

-

 

 

 

(56,746

)

 

 

-

 

 

 

 

 

 

 

 

 

Restricted stock awards issued

 

 

(336,091

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

Restricted stock awards forfeited

 

 

3,000

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

Additional shares of stock issued

 

 

(1,777

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

Balance as of December 31, 2020

 

 

950,547

 

 

 

129,583

 

 

$

3,116

 

 

$

11.71

 

 

 

2.5

 

Exercisable as of December 31, 2020

 

 

 

 

 

 

129,583

 

 

$

3,116

 

 

$

11.71

 

 

 

2.5

 
v3.20.4
Employee Stock Purchase Plan (Tables)
 3 Months Ended
Dec. 31, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Weighted Average Assumptions of Employee Stock Purchase Plan

The following are the weighted average assumptions used for each respective period:

 

 

 

Three Months Ended

 

 

 

 

December 31,

 

 

 

 

2019

 

 

2020

 

 

Dividend yield

 

0.0%

 

 

0.0%

 

 

Risk-free interest rate

 

1.8%

 

 

0.1%

 

 

Volatility

 

52.4%

 

 

70.2%

 

 

Expected life

 

Six Months

 

 

Six Months

 

 
v3.20.4
Restricted Stock Awards (Tables)
 3 Months Ended
Dec. 31, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Restricted Stock Award Activity

The following table summarizes restricted stock award activity from September 30, 2020 through December 31, 2020:

 

 

 

Shares/ Units

 

 

Weighted

Average Grant

Date Fair Value

 

Non-vested balance as of September 30, 2020

 

 

902,631

 

 

$

18.08

 

Changes during the period

 

 

 

 

 

 

 

 

Awards granted

 

 

336,091

 

 

$

30.04

 

Awards vested

 

 

(152,625

)

 

$

17.01

 

Awards forfeited

 

 

(3,000

)

 

$

17.39

 

Non-vested balance as of December 31, 2020

 

 

1,083,097

 

 

 

 

 
v3.20.4
Net Income Per Share (Tables)
 3 Months Ended
Dec. 31, 2020
Earnings Per Share [Abstract]  
Basic and Diluted Net Income Per Share

The following table presents shares used in the calculation of basic and diluted net income per share:

 

 

 

Three Months Ended

 

 

 

December 31,

 

 

 

2019

 

 

2020

 

Weighted average common shares outstanding used in

   calculating basic income per share

 

 

21,453,914

 

 

 

22,025,898

 

Effect of dilutive options and non-vested restricted stock

   awards

 

 

436,151

 

 

 

719,227

 

Weighted average common and common equivalent shares

   used in calculating diluted income per share

 

 

21,890,065

 

 

 

22,745,125

 
v3.20.4
Company Background - Additional Information (Detail)
 12 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2018
Dec. 31, 2020
Store
State
Concentration Risk [Line Items]        
Number of retail locations | Store       77
Number of states wherein retail locations are established | State       21
Product Concentration Risk [Member] | Brunswick [Member] | Sales [Member]        
Concentration Risk [Line Items]        
Revenue percentage from sale of boats 33.00%      
Product Concentration Risk [Member] | Brunswick Sea Ray Boat [Member] | Brunswick [Member] | Sales [Member]        
Concentration Risk [Line Items]        
Revenue percentage from sale of boats 15.00%      
Product Concentration Risk [Member] | Brunswick Boston Whaler Boats [Member] | Brunswick [Member] | Sales [Member]        
Concentration Risk [Line Items]        
Revenue percentage from sale of boats 16.00%      
Product Concentration Risk [Member] | Azimut Benetti Groups and Yachts | Sales [Member]        
Concentration Risk [Line Items]        
Revenue percentage from sale of boats 9.00%      
Geographic Concentration Risk [Member] | Sales [Member] | Florida [Member]        
Concentration Risk [Line Items]        
Revenue percentage from sale of boats 54.00% 54.00% 51.00%  
v3.20.4
Basis of Presentation - Additional Information (Detail)
 3 Months Ended
Dec. 31, 2020
Dealer
Operations
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
Recreational boat dealers | Dealer 30
Boat brokerage operations 4
Full-service yacht repair operations 2
v3.20.4
Revenue Recognition - Additional Information (Detail) - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Revenue From Contract With Customer [Abstract]    
Revenue remaining obligation description As a practical expedient, because repair and maintenance service contracts have an original duration of one year or less, we do not consider the time value of money, and we do not disclose estimated revenue expected to be recognized in the future for performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period or when we expect to recognize such revenue.  
Contract assets recorded in prepaid expenses and other current assets $ 4.5 $ 3.6
v3.20.4
Revenue Recognition - Summary of Percentage on Timing of Revenue Recognition (Details)
 3 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Disaggregation Of Revenue [Line Items]    
Total Revenue 100.00% 100.00%
Goods and Services Transferred at a Point in Time [Member]    
Disaggregation Of Revenue [Line Items]    
Total Revenue 90.50% 90.80%
Goods and Services Transferred Over Time [Member]    
Disaggregation Of Revenue [Line Items]    
Total Revenue 9.50% 9.20%
v3.20.4
Leases - Additional Information (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Leases [Abstract]    
Weighted average remaining lease term (years) 13 years  
Operating lease expense $ 5.8 $ 3.3
Operating lease renewal term 25 years  
Weighted average discount rate 5.70%  
v3.20.4
Leases - Summary of Maturities of Lease Liabilities (Details)
$ in Thousands
Dec. 31, 2020
USD ($)
Operating Leases  
2021 $ 15,640
2022 13,876
2023 12,625
2024 10,754
2025 9,595
Thereafter 93,919
Total lease payments 156,409
Less: interest (48,328)
Present value of lease liabilities $ 108,081
v3.20.4
Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Details) - USD ($)
$ in Thousands
 3 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:    
Operating cash flows from operating leases $ 4,296 $ 2,588
Right-of-use assets obtained in exchange for lease obligations:    
Operating leases $ 70,275 $ 560
v3.20.4
Inventories - Additional Information (Detail) - USD ($)
$ in Millions
Dec. 31, 2020
Sep. 30, 2020
Inventory Disclosure [Abstract]    
Inventories valuation allowance $ 2.3 $ 2.4
v3.20.4
Impairment of Long-Lived Assets - Additional Information (Detail)
 3 Months Ended
Dec. 31, 2020
USD ($)
Asset Impairment Charges [Abstract]  
Impairment charges $ 0
v3.20.4
Goodwill - Additional Information (Detail) - USD ($)
 1 Months Ended 3 Months Ended
Oct. 31, 2020
Dec. 31, 2020
Dec. 31, 2019
Sep. 30, 2020
Schedule Of Goodwill And Other Assets [Line Items]        
Accounts receivable, net   $ 44,001,000   $ 40,195,000
Inventories, net   378,863,000   298,002,000
Short-term borrowings   163,394,000   144,393,000
Accrued expenses   67,457,000   52,123,000
Customer deposits   55,389,000   31,821,000
Revenue   411,524,000 $ 304,172,000  
Income before taxes   30,716,000 $ 12,288,000  
Goodwill and other intangible assets, net   143,114,000   $ 84,293,000
SkipperBuds [Member]        
Schedule Of Goodwill And Other Assets [Line Items]        
Aggregate purchase price $ 55,000,000      
Maximum amount of consideration paid under earnout 9,300,000      
Fair value of contingent consideration 8,200,000      
Accounts receivable, net 5,400,000      
Inventories, net 42,300,000      
Short-term borrowings 30,500,000      
Accrued expenses 14,600,000      
Customer deposits 7,500,000      
Goodwill 56,363,000      
Other identifiable intangibles $ 2,000,000.0      
Intangible assets, weighted average useful life 3 years 3 months 18 days      
Revenue   40,400,000    
Income before taxes   $ 1,900,000    
v3.20.4
Goodwill - Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed at Acquisition Date (Detail) - SkipperBuds [Member]
$ in Thousands
 1 Months Ended
Oct. 31, 2020
USD ($)
Consideration:  
Cash purchase price and net working capital adjustments, net of cash acquired of $30,615 $ 50,261
Contingent consideration arrangement 8,200
Fair value of total consideration transferred 58,461
Recognized amounts of identifiable assets acquired and liabilities assumed:  
Current assets, net of cash acquired of $30,615 50,688
Property and equipment 4,859
Intangible assets 1,978
Current liabilities (55,427)
Total identifiable net assets acquired: 2,098
Goodwill 56,363
Total $ 58,461
v3.20.4
Goodwill - Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed at Acquisition Date (Parenthetical) (Detail) - USD ($)
$ in Thousands
 1 Months Ended 3 Months Ended
Oct. 31, 2020
Dec. 31, 2020
Business Acquisition [Line Items]    
Cash purchase price and net working capital adjustments, net of cash acquired   $ 48,261
SkipperBuds [Member]    
Business Acquisition [Line Items]    
Cash purchase price and net working capital adjustments, net of cash acquired $ 30,615  
Current assets, net of cash acquired $ 30,615  
v3.20.4
Income Taxes - Additional Information (Detail) - USD ($)
$ in Thousands
 3 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Income Tax Disclosure [Abstract]    
Income tax provision $ 7,116 $ 3,229
Effective income tax rate 23.20% 26.30%
v3.20.4
Short-Term Borrowings and Long-Term Debt - Additional Information (Detail) - USD ($)
 3 Months Ended
Dec. 31, 2020
Dec. 31, 2019
May 31, 2020
Line Of Credit Facility [Line Items]      
Additional borrowings $ 133,400,000    
Minimum [Member]      
Line Of Credit Facility [Line Items]      
Current ratio 1.20%    
Borrowing Base Amount and Aging Inventory [Member]      
Line Of Credit Facility [Line Items]      
Inventory and working capital needs $ 163,400,000    
Interest rate on short-term borrowings 4.20% 5.60%  
Credit Facility [Member]      
Line Of Credit Facility [Line Items]      
Additional extension for two one-year periods May 31, 2023    
Line of credit facility, term 3 years    
Interest rate for amounts outstanding under the Credit Facility 3.45%    
Credit Facility [Member] | Borrowing Base Amount and Aging Inventory [Member]      
Line Of Credit Facility [Line Items]      
Amount of borrowing availability     $ 440,000,000
Line of Credit Facility, Description The Credit Facility has a three-year term and expires in May 2023, subject to extension for two one-year periods, with lender approval    
Leverage ratio 2.75%    
Credit Facility interest rate description The interest rate for amounts outstanding under the Credit Facility is 345 basis points plus the greater of 75 basis points or the one-month LIBOR.    
Debt instrument, covenant compliance The covenants include provisions that our leverage ratio must not exceed 2.75 to 1.0 and that our current ratio must be greater than 1.2 to 1.0.    
Interest rate for amounts outstanding under the Credit Facility 0.75%    
Unused line fee on the unused portion of the amended Credit Facility 0.10%    
New inventory mature date 1080 days    
Used inventory maturity period 361 days    
Real estate property pledged for collateral $ 0    
v3.20.4
Short-Term Borrowings and Long-Term Debt - Schedule of Long-Term Debt (Detail) - USD ($)
$ in Thousands
Dec. 31, 2020
Sep. 30, 2020
Debt Instrument [Line Items]    
Less current portion $ (2,704)  
Less unamortized portion of debt issuance costs (659)  
Long-term debt 50,124 $ 7,343
Mortgage Facility [Member]    
Debt Instrument [Line Items]    
Long-term debt 53,487  
Mortgage Facility [Member] | Mortgage Facility Payable to Flagship Bank [Member]    
Debt Instrument [Line Items]    
Long-term debt 7,272  
Mortgage Facility [Member] | Mortgage Facility Payable to Seacoast National Bank [Member]    
Debt Instrument [Line Items]    
Long-term debt 17,675  
Mortgage Facility [Member] | Mortgage facility payable to Hancock Whitney Bank [Member]    
Debt Instrument [Line Items]    
Long-term debt $ 28,540  
v3.20.4
Short-Term Borrowings and Long-Term Debt - Schedule of Long-Term Debt (Parenthetical) (Detail) - Mortgage Facility [Member]
$ in Millions
 3 Months Ended
Dec. 31, 2020
USD ($)
Mortgage Facility Payable to Flagship Bank [Member]  
Debt Instrument [Line Items]  
Debt instrument interest rate 2.25%
Debt instrument basis percentage 1.00%
Principal and interest payments with a balloon payment $ 4.0
Additional extension for two one-year periods Aug. 31, 2027
Mortgage Facility Payable to Flagship Bank [Member] | Interest Rate Prime [Member]  
Debt Instrument [Line Items]  
Debt instrument description of variable rate basis prime minus 100 basis points with a floor of 2.00%
Mortgage Facility Payable to Flagship Bank [Member] | Interest Rate Floor [Member]  
Debt Instrument [Line Items]  
Debt instrument interest rate 2.00%
Mortgage Facility Payable to Seacoast National Bank [Member]  
Debt Instrument [Line Items]  
Debt instrument interest rate 3.00%
Debt instrument basis percentage 0.625%
Principal and interest payments with a balloon payment $ 6.0
Additional extension for two one-year periods Sep. 30, 2031
Mortgage Facility Payable to Seacoast National Bank [Member] | Interest Rate Prime [Member]  
Debt Instrument [Line Items]  
Debt instrument description of variable rate basis greater of 3% or prime minus 62.5 basis points
Mortgage facility payable to Hancock Whitney Bank [Member]  
Debt Instrument [Line Items]  
Debt instrument interest rate 2.60%
Debt instrument basis percentage 0.625%
Principal and interest payments with a balloon payment $ 15.5
Additional extension for two one-year periods Nov. 30, 2027
Percentage of outstanding borrowings hedged 50.00%
Fixed interest rate 3.20%
Mortgage facility payable to Hancock Whitney Bank [Member] | Interest Rate Prime [Member]  
Debt Instrument [Line Items]  
Debt instrument description of variable rate basis prime minus 62.5 basis points with a floor of 2.25%
Mortgage facility payable to Hancock Whitney Bank [Member] | Interest Rate Floor [Member]  
Debt Instrument [Line Items]  
Debt instrument interest rate 2.25%
Revolving mortgage facility with FineMark National Bank & Trust [Member]  
Debt Instrument [Line Items]  
Debt instrument interest rate 3.00%
Debt instrument basis percentage 0.25%
Additional extension for two one-year periods Sep. 30, 2027
Current available borrowings $ 26.4
Revolving mortgage facility with FineMark National Bank & Trust [Member] | Interest Rate Base [Member]  
Debt Instrument [Line Items]  
Debt instrument description of variable rate basis base minus 25 basis points with a floor of 3%
Revolving mortgage facility with FineMark National Bank & Trust [Member] | Interest Rate Floor [Member]  
Debt Instrument [Line Items]  
Debt instrument interest rate 3.00%
v3.20.4
Stock-Based Compensation - Additional Information (Detail) - USD ($)
$ in Thousands
 3 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Net proceeds from issuance of common stock under incentive compensation and employee purchase plans $ 1,523 $ 616
Selling, General, and Administrative Expenses [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Stock-based compensation expense, approximately $ 2,000 $ 1,500
v3.20.4
The Incentive Stock Plans - Additional Information (Detail) - USD ($)
$ in Millions
 1 Months Ended 3 Months Ended
Feb. 29, 2020
Dec. 31, 2020
Dec. 31, 2019
Jan. 31, 2011
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]        
Options granted   0 0  
Total intrinsic value of options exercised   $ 1.1 $ 0.1  
Incentive Stock Plan 2011 [Member]        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]        
Common stock, shares authorized       3,200,456
Additional common shares authorized 1,000,000      
Expiration of Plan 2011   2021-01    
Contractual term of plan 2011   10 years    
Incentive Stock Plan 2011 [Member] | Subject To Award [Member]        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]        
Common stock, shares authorized   4,000,000    
Incentive Stock Plan 2011 [Member] | Maximum [Member]        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]        
Common stock, shares authorized 4,200,456      
Incentive Stock Plan 2007 [Member]        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]        
Number of Common stock shares available   200,456    
v3.20.4
The Incentive Stock Plans - Summary of Option Activity (Detail) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Sep. 30, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Options granted, Options Outstanding 0 0  
Stock Options [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Shares Available for Grant, Beginning Balance 1,275,415    
Options cancelled/forfeited/expired, Shares Available for Grant 10,000    
Restricted stock awards issued, Shares Available for Grant (336,091)    
Restricted stock awards forfeited, Shares Available for Grant 3,000    
Additional shares of stock issued, Shares Available for Grant (1,777)    
Shares Available for Grant, Ending Balance 950,547   1,275,415
Options Outstanding, Beginning Balance 196,329    
Options cancelled/forfeited/expired, Options Outstanding (10,000)    
Options exercised, Options Outstanding (56,746)    
Options Outstanding, Ending Balance 129,583   196,329
Exercisable as of December 31, 2020, Options Outstanding 129,583    
Aggregate Intrinsic Value $ 3,116   $ 2,636
Exercisable as of December 31 2020, Aggregate Intrinsic Value $ 3,116    
Weighted Average Exercise Price, Beginning Balance $ 12.12    
Weighted Average Exercise Price, Ending Balance 11.71   $ 12.12
Exercisable as of December 31 2020, Weighted Average Exercise Price $ 11.71    
Weighted Average Remaining Contractual Life 2 years 6 months   2 years 6 months
Exercisable as of December 31, 2020, Weighted Average Remaining Contractual Life 2 years 6 months    
v3.20.4
Employee Stock Purchase Plan - Additional Information (Detail) - USD ($)
 1 Months Ended 3 Months Ended
Feb. 28, 2019
Dec. 31, 2020
Sep. 30, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Common stock, shares issued   28,393,710 28,130,312
Stock Purchase Plan [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Additional common shares authorized 500,000    
Common stock available for issuance   1,500,000  
Stock Purchase Plan, requisite continuous service   1 year  
Annual offerings description   implementation of annual offerings beginning on the first day of October in each of the years 2008 through 2027, with each offering terminating on September 30 of the following year.  
Closing price of common stock on the first and last day of the offering   85.00%  
Percentage not exceeding to periodic payment of purchase price   10.00%  
Maximum common stock value purchased by participant annually   $ 25,000  
Common stock, shares issued   1,101,135  
1998 Employee Stock Purchase Plan [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Additional Common Shares Authorized   52,837  
v3.20.4
Employee Stock Purchase Plan - Weighted Average Assumptions of Employee Stock Purchase Plan (Detail) - Stock Purchase Plan [Member]
 3 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Dividend yield 0.00% 0.00%
Risk-free interest rate 0.10% 1.80%
Volatility 70.20% 52.40%
Expected life 6 months 6 months
v3.20.4
Restricted Stock Awards - Additional Information (Detail) - Restricted Stock Awards [Member]
$ in Millions
 3 Months Ended
Dec. 31, 2020
USD ($)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Unrecognized compensation cost related to non-vested restricted stock awards $ 16.3
Weighted average period unrecognized compensation costs related to non-vested restricted awards are expected to be recognized 2 years 7 months 6 days
Minimum [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Vesting periods of restricted stock award 2 years
Percentage of actual amount of award earned based on actual specified performance target met 0.00%
Maximum [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Vesting periods of restricted stock award 4 years
Percentage of actual amount of award earned based on actual specified performance target met 175.00%
v3.20.4
Restricted Stock Awards - Restricted Stock Award Activity (Detail) - Restricted Stock Awards [Member]
 3 Months Ended
Dec. 31, 2020
$ / shares
shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Shares/ Units, Non-vested beginning balance 902,631
Shares/ Units, Awards granted 336,091
Shares/ Units, Awards vested (152,625)
Shares/ Units, Awards forfeited (3,000)
Shares/ Units, Non-vested ending balance 1,083,097
Weighted Average Grant Date Fair Value, Non-vested beginning balance | $ / shares $ 18.08
Weighted Average Grant Date Fair Value, Awards granted | $ / shares 30.04
Weighted Average Grant Date Fair Value, Awards vested | $ / shares 17.01
Weighted Average Grant Date Fair Value, Awards forfeited | $ / shares $ 17.39
v3.20.4
Net Income Per Share - Basic and Diluted Net Income Per Share (Detail) - shares
 3 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Earnings Per Share [Abstract]    
Weighted average common shares outstanding used in calculating basic income per share 22,025,898 21,453,914
Effect of dilutive options and non-vested restricted stock awards 719,227 436,151
Weighted average common and common equivalent shares used in calculating diluted income per share 22,745,125 21,890,065
v3.20.4
Net Income Per Share - Additional Information (Detail) - shares
 3 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Stock Options [Member]    
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]    
Anti-dilutive securities excluded from earnings per share calculation 30,807 32,366