Provision for Income Taxes (Tables)

12 Months Ended

Sep. 30, 2023

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