Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2025 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Schedule of Components of Continuing Operations Before Income Taxes |
The components of income from continuing operations before income taxes were as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the years ended December 31, |
| |
2025 |
|
2024 |
|
2023 |
Domestic |
$ |
62,037 |
|
|
$ |
18,928 |
|
|
$ |
14,284 |
|
| Foreign |
7,002 |
|
|
4,881 |
|
|
4,776 |
|
Income from continuing operations before income taxes |
$ |
69,039 |
|
|
$ |
23,809 |
|
|
$ |
19,060 |
|
|
| Schedule of Components of Provision for Income Taxes |
The components of the provision for income taxes from continuing operations were as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the years ended December 31, |
| |
2025 |
|
2024 |
|
2023 |
| Current: |
|
|
|
|
|
| Federal |
$ |
10,422 |
|
|
$ |
9,010 |
|
|
$ |
6,792 |
|
| State |
2,191 |
|
|
1,495 |
|
|
1,066 |
|
| Foreign |
1,655 |
|
|
1,573 |
|
|
1,138 |
|
Total current |
14,268 |
|
|
12,078 |
|
|
8,996 |
|
| Deferred: |
|
|
|
|
|
| Federal |
1,944 |
|
|
(6,569) |
|
|
(3,951) |
|
| State |
(1,234) |
|
|
(923) |
|
|
(557) |
|
| Foreign |
568 |
|
|
(179) |
|
|
7 |
|
Total deferred |
1,278 |
|
|
(7,671) |
|
|
(4,501) |
|
| Provision for income taxes |
$ |
15,546 |
|
|
$ |
4,407 |
|
|
$ |
4,495 |
|
|
| Schedule of Effective Income Tax Reconciliation |
A reconciliation of the provision for income taxes from continuing operations to the amount computed by applying the statutory federal income tax rate is as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the years ended December 31, |
| |
2025 |
|
2024 |
|
2023 |
|
$ |
|
% |
|
$ |
|
% |
|
$ |
|
% |
US federal statutory tax rate |
$ |
14,498 |
|
|
21.0 |
% |
|
$ |
5,000 |
|
|
21.0 |
% |
|
$ |
4,003 |
|
|
21.0 |
% |
| Increases (decreases) in tax resulting from: |
|
|
|
|
|
|
|
|
|
|
|
State and local income taxes, net of federal income tax effect (a)
|
756 |
|
|
1.1 |
% |
|
451 |
|
|
1.9 |
% |
|
402 |
|
|
2.1 |
% |
Foreign tax effects |
|
|
|
|
|
|
|
|
|
|
|
Germany |
798 |
|
|
1.2 |
% |
|
— |
|
|
— |
% |
|
— |
|
|
— |
% |
Other foreign jurisdictions |
(41) |
|
|
— |
% |
|
373 |
|
|
1.6 |
% |
|
144 |
|
|
0.8 |
% |
Effect of cross-border tax laws |
|
|
|
|
|
|
|
|
|
|
|
Foreign-derived intangible income |
(3,753) |
|
|
(5.4) |
% |
|
(1,892) |
|
|
(8.0) |
% |
|
(615) |
|
|
(3.2) |
% |
Tax credits |
(52) |
|
|
(0.1) |
% |
|
(80) |
|
|
(0.3) |
% |
|
(32) |
|
|
(0.2) |
% |
Changes in valuation allowances |
502 |
|
|
0.7 |
% |
|
4 |
|
|
— |
% |
|
(1) |
|
|
— |
% |
Nontaxable or nondeductible items |
|
|
|
|
|
|
|
|
|
|
|
Excess stock tax benefit |
(1,421) |
|
|
(2.1) |
% |
|
(772) |
|
|
(3.2) |
% |
|
— |
|
|
— |
% |
Section 162(m) executive compensation |
3,809 |
|
|
5.5 |
% |
|
1,444 |
|
|
6.1 |
% |
|
554 |
|
|
2.9 |
% |
Transaction costs |
1,053 |
|
|
1.5 |
% |
|
489 |
|
|
2.0 |
% |
|
477 |
|
|
2.5 |
% |
Corporate-owned life insurance |
— |
|
|
— |
% |
|
(283) |
|
|
(1.2) |
% |
|
(409) |
|
|
(2.1) |
% |
Other |
(132) |
|
|
(0.2) |
% |
|
116 |
|
|
0.5 |
% |
|
43 |
|
|
0.2 |
% |
Other adjustments |
|
|
|
|
|
|
|
|
|
|
|
Other adjustments |
(471) |
|
|
(0.7) |
% |
|
(443) |
|
|
(1.9) |
% |
|
(71) |
|
|
(0.4) |
% |
Effective tax rate |
$ |
15,546 |
|
|
22.5 |
% |
|
$ |
4,407 |
|
|
18.5 |
% |
|
$ |
4,495 |
|
|
23.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
(a) State Taxes in CA, FL, KS, and VA made up the majority (greater than 50%) of the tax effect in this category. State income tax expense includes the effects of changes in valuation allowances related to state net operating losses, the impact of state conformity to federal income tax provisions, and the benefit of state income tax credits. |
|
| Schedule of Deferred Tax Assets and Liabilities |
The tax effect of temporary differences representing deferred tax assets and liabilities was as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, |
| |
2025 |
|
2024 |
| Deferred compensation and accrued paid leave |
$ |
2,544 |
|
|
$ |
1,948 |
|
| Accrued expense |
2,481 |
|
|
1,367 |
|
| Inventory reserve |
22,822 |
|
|
23,020 |
|
| Operating lease liabilities |
13,321 |
|
|
14,199 |
|
| Stock-based compensation |
2,201 |
|
|
2,084 |
|
| Capitalized inventory |
514 |
|
|
498 |
|
| US operating and capital loss carryforward |
8,187 |
|
|
12,843 |
|
| Disallowed interest expense |
6,982 |
|
|
9,450 |
|
| Tax credit carryforward |
1,822 |
|
|
1,421 |
|
| Foreign country operating loss carryforward |
1,417 |
|
|
1,364 |
|
| Interest capitalized |
— |
|
|
2,030 |
|
| Transaction costs |
302 |
|
|
235 |
|
|
62,593 |
|
|
70,459 |
|
Valuation allowance (a)
|
(5,091) |
|
|
(19,368) |
|
| Total gross deferred tax assets |
57,502 |
|
|
51,091 |
|
|
|
|
|
| Interest rate swaps |
(170) |
|
|
(1,021) |
|
| Depreciation |
(7,285) |
|
|
(4,000) |
|
| Goodwill and intangible assets |
(50,571) |
|
|
(26,786) |
|
| Operating lease right-of-use assets |
(11,870) |
|
|
(10,962) |
|
| Other |
— |
|
|
(193) |
|
| Total gross deferred tax liabilities |
(69,896) |
|
|
(42,962) |
|
|
|
|
|
Net deferred tax (liabilities) assets (b)
|
$ |
(12,394) |
|
|
$ |
8,129 |
|
(a) A valuation allowance was provided against US capital losses in connection with a recent stock sale, certain state net operating losses, tax credits, and foreign tax loss deferred tax assets arising from carryforwards of unused tax benefits. |
(b) Deferred tax assets are included within other assets in the Company's consolidated balance sheets as of December 31, 2024. |
|
|