Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 12 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Operating activities:    
Net income $ 24,741,000 $ 31,017,000
Adjustments to reconcile net income to net cash provided by operating activities, net of acquisition:    
Depreciation and amortization 7,168,000 6,791,000
Loss on disposal of property and equipment 510,000 (337,000)
Amortization of debt issuance costs (78,000) 659,000
Gain on Payroll Protection Program loan forgiveness 0 (6,150,000)
Loss on impairment of goodwill and intangibles 4,910,000 0
Gain on bankruptcy settlement (11,501,000) (1,765,000)
Stock based compensation expense 37,000 489,000
Loss on write off of ROU asset 522,000  
Amortization of right of use assets 9,229,000 (215,000)
Change in reserve for uncollectible accounts 71,000 658,000
Change in reserve for obsolete inventory 582,000 1,239,000
Changes in assets and liabilities, net of acquisitions:    
Trade receivables (1,129,000) (1,583,000)
Inventories (20,213,000) (8,486,000)
Prepaid expenses and other current assets 1,663,000 141,000
Change in deferred income taxes 6,022,000 3,818,000
Deposits and other assets 34,000 (457,000)
Accounts payable (2,376,000) 2,771,000
Accrued liabilities (364,000) (389,000)
Income taxes payable (5,279,000) 140,000
Other liabilities 31,000 173,000
Net cash provided by operating activities 14,580,000 29,188,000
Investing activities:    
Better Backers acquisition (3,166,000)  
Purchase of intangible assets 0 (587,000)
Purchases of property and equipment (12,128,000) (10,834,000)
Proceeds from the sale of property and equipment 15,000  
Net cash used in investing activities (40,036,000) (17,421,000)
Financing activities:    
Net borrowings (payments) under revolver loans 21,577,000 (1,355,000)
Stock options exercised 0 323,000
Proceeds from issuance of notes payable 17,000,000 2,259,000
Payments on notes payable (10,503,000) (11,036,000)
Purchase of common treasury stock (2,696,000) (421,000)
Payments of related party notes payable 0 (5,800,000)
Payments on financing leases (61,000) (117,000)
Debtor in possession cash 75,000 60,000
Net cash provided by (used in) financing activities 25,392,000 (16,087,000)
Net decrease in cash and cash equivalents, including restricted cash (64,000) (4,320,000)
Cash and cash equivalents, including restricted cash, beginning of period 4,664,000 8,984,000
Cash and cash equivalents, including restricted cash, end of period 4,600,000 4,664,000
Supplemental cash flow disclosures:    
Interest paid 3,962,000 4,342,000
Income taxes paid, net 6,149,000 1,537,000
Noncash financing and investing activities:    
Reclassification of land from right of use asset to property and equipment 0 2,029,000
Salomon Whitney LLC    
Investing activities:    
Payment for acquisition 0 (6,000,000)
Kinetic Acquisition    
Investing activities:    
Payment for acquisition $ (24,757,000) $ 0