Annual report pursuant to Section 13 and 15(d)

Provision for Income Taxes (Tables)

v3.23.3
Provision for Income Taxes (Tables)
 12 Months Ended
Sep. 30, 2023
Income Tax Disclosure [Abstract]  
Schedule of components of income tax expense (benefit)
The provision for income taxes for the fiscal years ended September 30, 2023, 2022 and 2021 consisted of the following (in thousands):
For the Fiscal Year Ended 
September 30,
2023 2022 2021
Current
U.S. Federal $ 3,520  $ —  $ 3,609 
State 1,718  949  995 
Total current 5,238  949  4,604 
Deferred
U.S. Federal 9,959  5,662  3,029 
State 1,206  304  716 
Total deferred 11,165  5,966  3,745 
Provision for income taxes $ 16,403  $ 6,915  $ 8,349 
Schedule of deferred tax assets and liabilities The Company’s deferred tax assets and liabilities consisted of the following temporary difference tax effects at September 30, 2023 and 2022 (in thousands):
September 30,
2023 2022
Deferred tax assets
Allowance for bad debt $ 226  $ 150 
Amortization of finite-lived intangible assets 1,022  943 
Federal net operating loss carryforward —  2,632 
Federal 163J carryforward 1,254  — 
State net operating loss carryforward 1,177  1,205 
Employee benefits 4,695  1,986 
Acquisition liabilities 796  2,127 
Accrued insurance claims 536  911 
Other 1,151  998 
Total deferred tax assets 10,857  10,952 
Deferred tax liabilities
Amortization of goodwill (8,647) (6,582)
Property, plant and equipment (32,939) (24,131)
Interest rate swap contract (6,343) (5,692)
Other (49) (1,260)
Total deferred tax liabilities (47,978) (37,665)
Net deferred tax liabilities $ (37,121) $ (26,713)
Reconciliation of net deferred tax assets (liabilities)
The following is a reconciliation of net deferred tax assets (liabilities) to amounts reflected on the Company’s Consolidated Balance Sheets at September 30, 2023 and 2022 (in thousands):
September 30,
2023 2022
Asset: Deferred income taxes, net $ —  $ — 
Liability: Deferred income taxes, net (37,121) (26,713)
Net deferred tax assets (liabilities) $ (37,121) $ (26,713)
Schedule of effective income tax rate reconciliation The following table reconciles income taxes based on the U.S. federal statutory tax rate to the Company’s income before provision for income taxes for the fiscal years ended September 30, 2023, 2022 and 2021 (in thousands):
For the Fiscal Year Ended 
September 30,
2023 2022 2021
Provision for income tax at federal statutory rate $ 13,735  $ 5,941  $ 5,990 
State income taxes 2,222  569  1,351 
Permanent differences 348  353  961 
Other 98  52  47 
Provision for income taxes $ 16,403  $ 6,915  $ 8,349