Income Taxes

6 Months Ended

Feb. 28, 2026

Income Tax Disclosure [Abstract]

Income Taxes

Note 7.    Income Taxes

During the six months ended February 28, 2026 and 2025, the Company recorded an income tax provision of $6,556,000 and $4,673,000, respectively, resulting in an effective tax rate of 25.5% in both periods. The provision for income taxes increased by $1,883,000 in the six months period ended February 28, 2026 over the prior year period due to higher pre-tax income in the current period.

During the three months ended February 28, 2026 and 2025, the Company recorded an income tax provision of $3,361,000 and $2,312,000, respectively, resulting in an effective tax rate of 25.5% in both periods. The provision for income taxes increased by $1,049,000 in the three months period ended February 28, 2026 over the prior year period due to higher pre-tax income in the current period.

The current period effective tax rate differs from the statutory rate of 21% primarily due to the state tax rates and permanent book tax differences.

Accounting for uncertainty in income taxes prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return and provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. For each of the three and six months ended February 28, 2026 and 2025, the Company did not have a liability for any unrecognized tax benefit. The Company has elected to classify interest and penalties as a component of its income tax provision. For each of the three and six months ended February 28, 2026 and 2025, the Company did not have a liability for penalties or interest. The Company does not expect any changes to its unrecognized tax benefit for the next six months   that would materially impact its consolidated financial statements.