FEDERAL AND STATE INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2020

FEDERAL AND STATE INCOME TAXES

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities are as follows:

	Year Ended December 31,
	2020		2019
Deferred tax assets:	(in thousands)
Operating lease liabilities	$	7,170	$	2,981
Accrued expenses not deductible until paid		6,105		5,215
Goodwill and intangible assets		1,264		1,426
Finance lease obligations		794		287
Net operating loss carry forwards		298		1,643
Revenue recognition		238		201
Allowance for doubtful accounts		225		168
Equity incentive compensation		204		188
Other		5		60
Total deferred tax assets	$	16,303	$	12,169
Deferred tax liabilities:
Tax over book depreciation	$	(30,315)	$	(30,941)
Operating leases - right of use assets		(7,075)		(2,959)
Prepaid expenses deductible when paid		(2,327)		(2,095)
Other		—		(191)
Total deferred tax liabilities		(39,717)		(36,186)
Net deferred tax liabilities	$	(23,414)	$	(24,017)

Schedule of Components of Income Tax Expense (Benefit)

Significant components of the provision (benefit) for income taxes are as follows:

	Year Ended December 31,
	2020		2019
Current:	(in thousands)
Federal	$	2,410	$	(637)
State		211		173
Total current		2,621		(464)
Deferred:
Federal		(765)		194
State		353		114
Total deferred		(412)		308
Total income tax expense (benefit)	$	2,209	$	(156)

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation between the effective income tax rate and the statutory federal income tax rate of 21% is as follows:

	Year Ended December 31,
	2020			2019
	(dollars in thousands)
Income tax expense (benefit) at statutory federal rate	$	1,461		$	(1,019)
Federal income tax effects of:
State income tax benefit		(44)			(36)
Per diem and other nondeductible meals and entertainment		378			388
Taxes related to prior years		346			—
Non-deductible compensation		219			271
Loss carryback rate benefit		(628)			—
Other		(87)			(46)
Federal income tax expense (benefit)		1,645			(442)
State income tax expense		564			286
Total income tax expense (benefit)	$	2,209		$	(156)
Effective tax rate		31.8	%		3.2	%