Income Taxes

12 Months Ended

Sep. 30, 2025

Income Tax Disclosure [Abstract]

Income Taxes

11. Income Taxes

The components of income tax expense (benefit) are as follows:

	Fiscal Year Ended
	September 30, 2025			September 30, 2024			September 30, 2023
Current:
Federal	$	(1.3	)	$	23.1		$	22.7
State		5.6			5.3			3.4
Deferred:
Federal		19.9			(0.8	)		(22.4	)
State		(1.9	)		1.3			(4.2	)
Valuation allowance		3.0			1.2			5.1
Total income tax (benefit) expense	$	25.3		$	30.1		$	4.6

Income tax expense (benefit) differs from the amount computed at the federal statutory corporate tax rate as follows:

	Fiscal Year Ended
	September 30, 2025						September 30, 2024						September 30, 2023
	Amount			Percent			Amount			Percent			Amount			Percent
U.S. Federal Statutory Rate	$	17.1			21.0	%	$	20.3			21.0	%	$	(0.7	)		21.0	%
State and Local Income Taxes, Net of Federal Income Tax Effect (a)(b)		4.9			6.0	%		6.2			6.4	%		4.8			(155.5	%)
Tax Credits		(0.6	)		(0.7	%)		(0.6	)		(0.6	%)		(0.7	)		22.4	%
Foreign Tax Effects		0.9			1.1	%		—			0.0	%		—			0.0	%
Nontaxable or Nondeductible Items
Non-deductible officers' compensation		2.1			2.6	%		1.3			1.4	%		1.1			(36.4	%)
Divestiture - Non-deductible goodwill		-			0.0	%		1.2			1.2	%		—			0.0	%
Other Adjustments		0.9			1.1	%		1.7			1.8	%		0.1			(0.7	%)
Effective Tax Rate	$	25.3			31.1	%	$	30.1			31.2	%	$	4.6			(149.2	%)

a)State taxes in California, Colorado, Florida, Massachusetts, New York and Texas made up the majority (greater than 50%) of the tax effect in this category

b)Included in State and Local Income Taxes is the effect of a valuation allowance on state taxes related to net operating losses and 163(j) interest expense carryforward ($2.1, $1.2, and $5.1, in FY25, FY24, and FY23 respectively)

The components of the Company’s net deferred tax asset and liability accounts resulting from temporary differences between the tax and financial reporting basis of assets and liabilities are as follows:

	September 30, 2025			September 30, 2024
Deferred tax assets:
Self-insurance reserves	$	37.6		$	37.3
Deferred compensation		1.8			2.2
Payroll related accruals		23.5			25.3
Allowance for doubtful accounts		2.5			2.5
Lease liabilities		19.8			22.3
Net operating loss carryforward		8.2			4.9
Business interest expense		31.1			17.2
Other non-current deferred tax assets		1.3			1.2
Total non-current deferred tax assets		125.8			112.9
Valuation allowance		(9.3	)		(6.3	)
Total deferred tax assets	$	116.5		$	106.6
Deferred tax liabilities:
Intangible assets	$	49.3		$	47.1
Property and equipment		96.6			63.2
Deferred revenue		14.5			16.6
Prepaid assets		0.3			0.1
Lease assets		18.2			20.7
Other non-current deferred tax liabilities		1.4			1.5
Total non-current deferred tax liabilities		180.3			149.2
Total net deferred tax liabilities	$	63.8		$	42.6
Classification on balance sheets:
Other assets	$	-		$	1.3
Deferred tax liabilities		63.8			43.9

The components of income taxes paid (net of refunds) are as follows:

	Fiscal Year Ended
	September 30, 2025		September 30, 2024		September 30, 2023
Federal	$	-	$	31.9	$	(17.4	)
State		6.3		2.5		7.6
Foreign		—		—		—
Total	$	6.3	$	34.4	$	(9.8	)

Income taxes paid (net of refunds) exceeded 5% of total income taxes paid (net of refunds) in the following jurisdictions:

	Fiscal Year Ended
	September 30, 2025		September 30, 2024	September 30, 2023
State
Arizona	$	0.4	*	*
California		1.5	*		3.2
Florida		1.3	*		0.9
Massachusetts		0.5	*	*
South Carolina	*		*		0.7
Texas		0.6	*		0.7

* Jurisdiction below the threshold for the period presented.

The CARES Act

In March 2020, the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) was signed into law and included various provisions to provide additional economic relief to address the impact of the COVID-19 pandemic. Notable provisions included net operating loss carrybacks, adjustments to the interest expense limitations under the U.S Tax Code Section 163(j), increase in the charitable contributions limitation, payroll tax deferrals of the employer portion of social security tax, a portion of which was repaid during the year ended September 30, 2022 and the remainder of which was repaid in fiscal year 2023, and an employee retention credit for wages paid to an idle employee under certain circumstances resulting from the COVID-19 pandemic. The Company recorded a tax receivable of $39.0 and a benefit of $10.1 to the tax provision for the tax net operating losses incurred in 2021 from the enactment of the CARES Act, net of adjustments. The tax net operating losses have been carried back to prior years. The Company has received all but $8.4 of the benefit from the carryback claims as of September 30, 2025. Further, the Company previously elected to defer the employer portion of social security taxes through 2020 and has filed for the employee retention credit allowed for under the CARES Act. The Company recorded a tax credit of $3.3 related to the employee retention credit and has received all but $0.4 as of September 30, 2025.

One Big Beautiful Bill Act

In July 2025, the One Big Beautiful Bill Act ("OBBBA") was signed into law and included various provisions amending the Tax Cuts and Jobs Act of 2017. Notable provisions included 100% bonus depreciation, adjustments to the interest expense limitations under 163(j), and research and development expenditures. The use of 100% bonus depreciation on capital investments and expansion of the 163(j) interest expense limitation to EBITDA (beginning in fiscal year 2026 for the Company) will both have favorable effects on cash taxes paid in the near-term.

Net Operating Losses and Interest Expense Carryforwards

As of September 30, 2025, the Company recorded a tax-effected cumulative Federal Net Operating Loss ("NOL") of $3.0, which can be carried forward indefinitely. The Company also has state income tax net operating losses of $95.2 having varying expirations from fiscal year 2026 through an indefinite useful life. The Company has a federal interest expense carryforward of $111 and state interest expense carryforwards of $149.5 that can be carried forward indefinitely. The Company believes it is more likely than not it will be unable to utilize some of its separate state net operating losses and separate state interest expense carryforwards to offset future income. The increase to the valuation allowance was $2.1 in FY2025. The Company has a $2.8 Canadian net operating loss carryforward that it more likely than not will not be able to utilize. Therefore, there is also a full valuation allowance recorded against this net operating loss in the amount of $0.9.

At September 30, 2025, $8.4 of the valuation allowances presented above relate to separate state net operating loss and interest expense carryforwards that are not expected to be realized. We evaluate the realization of deferred tax assets by considering such factors as the reversal of existing taxable temporary differences, expected profitability by tax jurisdiction and available carryforward periods. The extent and timing of any such reversals will influence the extent of tax benefits recognized in a particular year. Should applicable losses, credits, and deductions ultimately be realized, the resulting reduction in the valuation allowance would generally be recognized as an income tax benefit.

Uncertain Income Tax Positions

As of September 30, 2025 and 2024, the Company had no unrecognized tax benefits that, if recognized, would impact the Company's effective tax rate. The total amount of unrecognized tax benefits could change within the next twelve months for a number of reasons including audit settlements, tax examination activities and the recognition and measurement considerations under this guidance.

The Company files income tax returns in the U.S. federal jurisdiction and various state and local jurisdictions, as well as Canada. The Company’s returns are no longer subject to U.S. federal and state tax examination for years before 2020 and 2019, respectively.