Income Taxes

12 Months Ended

Sep. 30, 2025

Income Tax Disclosure [Abstract]

Income Taxes

15) Income Taxes

On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Reform Act”) was enacted into law. The Tax Reform Act allows for the full depreciation, in the year acquired, for certain fixed assets purchased between September 28, 2017 and December 31, 2023. On July 4, 2025, the One Big Beautiful Bill Act was signed into law in the U.S., which contains several changes to corporate taxation including changes to depreciation deductions, deductions for interest expense and reinstating 100% bonus depreciation on fixed assets acquired and placed in service after January 19, 2025.

Income tax expense is comprised of the following for the indicated periods (in thousands):

	Years Ended September 30,
	2025		2024			2023
Current:
Federal	$	13,613	$	11,964		$	9,902
State		7,267		5,356			4,583
Deferred
Federal		6,824		(2,719	)		(843	)
State		1,703		(1,270	)		342
	$	29,407	$	13,331		$	13,984

The provision for income taxes differs from income taxes computed at the Federal statutory rate as a result of the following (in thousands):

	Years Ended September 30,
	2025			2024			2023
Income from continuing operations before taxes	$	102,902		$	48,554		$	45,929
Provision for income taxes:
Tax at Federal statutory rate	$	21,609		$	10,196		$	9,645
State taxes net of federal benefit		7,357			3,145			3,401
Permanent differences		355			286			520
Expiration of State NOL		1,931			2,160			—
Change in valuation allowance		(1,965	)		(2,328	)		252
Other		120			(128	)		166
	$	29,407		$	13,331		$	13,984

The components of the net deferred taxes for the years ended September 30, 2025 and September 30, 2024 using current tax rates are as follows (in thousands):

	September 30,
	2025			2024
Deferred tax assets:
Operating lease liabilities	$	26,907		$	26,534
Net operating loss carryforwards		404			2,516
Vacation accrual		2,748			2,785
Pension accrual		3,550			3,507
Allowance for bad debts		1,915			1,687
Insurance accrual		1,682			1,628
Fair value of derivative instruments		432			4,261
Other, net		328			350
Total deferred tax assets		37,966			43,268
Valuation allowance		(118	)		(2,109	)
Net deferred tax assets	$	37,848		$	41,159
Deferred tax liabilities:
Operating lease right-of-use assets	$	25,833		$	25,257
Property and equipment		18,032			14,502
Intangibles		21,669			20,152
Other, net		3,137			3,170
Total deferred tax liabilities	$	68,671		$	63,081
Net deferred taxes	$	(30,823	)	$	(21,922	)

In order to fully realize the net deferred tax assets, the Company’s corporate subsidiaries will need to generate future taxable income. A valuation allowance is recognized if, based on the weight of available evidence including historical tax losses, it is more likely than not that some or all of deferred tax assets will not be realized. The net change in the total valuation allowance for the fiscal year ended September 30, 2025 was $(2.0) million. The net change in the total valuation allowance for the fiscal year ended September 30, 2024 was $(2.3) million. Based upon a review of a number of factors and all available evidence, including recent historical operating performance, the expectation of sustainable earnings, and the confidence that sufficient positive taxable income will continue in all tax jurisdictions for the foreseeable future, management concludes, it is more likely than not that the Company will realize the full benefit of its deferred tax assets, net of existing valuation allowance related to State net operating loss carryforwards at September 30, 2025.

As of January 1, 2025, the Company had State tax effected net operating loss carry forwards (“NOLs”) of approximately $0.3 million after consideration of valuation allowances. The State NOLs, which will expire between 2025 and 2038, are generally available to offset any future taxable income in certain states

At September 30, 2025, we did not have unrecognized income tax benefits.

We file U.S. Federal income tax returns and various state and local returns. A number of years may elapse before an uncertain tax position is audited and finally resolved. For our Federal income tax returns we have four tax years subject to examination. In our major state tax jurisdictions of New York, Connecticut, and Pennsylvania we have four years that are subject to examination. In the state tax jurisdiction of New Jersey we have five tax years that are subject to examination. While it is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position, based on our assessment of many factors including past experience and interpretation of tax law, we believe that our provision for income taxes reflect the most probable outcome. This assessment relies on estimates and assumptions and may involve a series of complex judgments about future events.