14 unchanged sentences
Actual results could differ materially from those currently anticipated as a result of a number of factors, including those set forth under “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended September 30, 2020.
−Removed: In March 2020, the outbreak of COVID-19 caused by a novel strain of the coronavirus was recognized as a pandemic by the World Health Organization, and the outbreak is widespread throughout the United States (including Florida in which we generated approximately 54% and 54% of our revenue during fiscal 2019 and 2020), and in other countries in which we operate.
+Added: In March 2020, the outbreak of COVID-19 caused by a novel strain of the coronavirus was recognized as a pandemic by the World Health Organization, and the outbreak is widespread throughout the United States (including Florida in which we generated approximately 54% of our revenue during both fiscal 2019 and 2020), and in other countries in which we operate.
As a result, from March 2020 through June 2020, we temporarily closed certain departments or locations based on guidance from local government or health officials .
−Removed: While as of today, virtually all of our stores are fully or partially operational, the effects of COVID-19 (including the related international, federal, state, and local governmental actions and regulations) remain unpredictable.
+Added: Currently, virtually all of our stores are fully operational, the effects of COVID-19 (including the related international, federal, state, and local governmental actions and regulations) remain unpredictable.
We are following guidelines to ensure we are safely operating as recommended.
21 unchanged sentences
Unfavorable local, regional, national or global economic developments or uncertainties regarding future economic prospects could reduce consumer spending in the markets we serve and adversely affect our business.
−Removed: Economic conditions in areas in which we operate dealerships, particularly Florida in which we generated approximately 54% and 54% of our revenue during fiscal 2019 and 2020, respectively, can have a major impact on our operations.
+Added: Economic conditions in areas in which we operate dealerships, particularly Florida in which we generated approximately 54% of our revenue during both fiscal 2019 and 2020, can have a major impact on our operations.
Local influences, such as corporate downsizing, military base closings, and inclement weather such as hurricanes and other storms, environmental conditions, and specific events, such as the BP oil spill in the Gulf of Mexico in 2010, also could adversely affect, and in certain instances have adversely affected, our operations in certain markets.
11 unchanged sentences
Application of Critical Accounting Policies
−Removed: We have identified the policies below as critical to our business operations and the understanding of our results of operations.
−Removed: The impact and risks related to these policies on our business operations are discussed throughout Management’s Discussion and Analysis of Financial Condition and Results of Operations when such policies affect our reported and expected financial results.
−Removed: In the ordinary course of business, we make a number of estimates and assumptions relating to the reporting of results of operations and financial condition in the preparation of our financial statements in conformity with accounting principles generally accepted in the United States.
−Removed: We base our estimates on historical experiences and on various other assumptions (including future earnings) that we believe are reasonable under the circumstances.
−Removed: The results of these assumptions form the basis for making judgments about the carrying values of assets and liabilities, including contingent assets and liabilities such as contingent consideration liabilities from acquisitions, which are not readily apparent from other sources.
−Removed: Actual results could differ significantly from those estimates under different assumptions and conditions.
−Removed: We believe that the following discussion addresses our most critical accounting policies, which are those that are most important to the portrayal of our financial condition and results of operations and require our most difficult, subjective, and complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain.
−Removed: Revenue Recognition
−Removed: The majority of our revenue is from contracts with customers for the sale of boats, motors, and trailers.
−Removed: We recognize revenue from boat, motor, and trailer sales upon transfer of control of the boat, motor, or trailer to the customer, which is generally upon acceptance or delivery to the customer.
−Removed: At the time of acceptance or delivery, the customer is able to direct the use of, and obtain substantially all of the benefits of the boat, motor, or trailer at such time.
−Removed: We recognize commissions earned from a brokerage sale when the related brokerage transaction closes upon transfer of control of the boat, motor, or trailer to the customer, which is generally upon acceptance or delivery to the customer.
−Removed: We do not directly finance our customers’ boat, motor, or trailer purchases.
−Removed: In many cases, we assist with third-party financing for boat, motor, and trailer sales.
−Removed: We recognize commissions earned by us for placing notes with financial institutions in connection with customer boat financing when we recognize the related boat sales.
−Removed: Pursuant to negotiated agreements with financial institutions, we are charged back for a portion of these fees should the customer terminate or default on the related finance contract before it is outstanding for a stipulated minimum period of time.
−Removed: We base the chargeback allowance, which was not material to the unaudited condensed consolidated financial statements taken as a whole as of December 31, 2020, on our experience with repayments or defaults on the related finance contracts.
−Removed: We recognize variable consideration from commissions earned on extended warranty service contracts sold on behalf of third-party insurance companies at generally the later of customer acceptance of the service contract terms as evidenced by contract execution or recognition of the related boat sale.
−Removed: We also recognize variable consideration from marketing fees earned on insurance products sold by third-party insurance companies at the later of customer acceptance of the insurance product as evidenced by contract execution or when the related boat sale is recognized.
−Removed: We recognize revenue from parts and service operations (boat maintenance and repairs) over time as services are performed.
−Removed: Each boat maintenance and repair service is a single performance obligation that includes both the parts and labor associated with the service.
−Removed: Payment for boat maintenance and repairs is typically due upon the completion of the service, which is generally completed within a short period of time from contract inception.
−Removed: We s atisfy our performance obligations, transfer control, and recognize revenue over time for parts and service operations because we are creating a contract asset with no alternative use and we have an enforceable right to payment for performance completed to date.
−Removed: Contract assets primarily relate to our right to consideration for work in process not yet billed at the reporting date associated with maintenance and repair services.
−Removed: We use an input method to recognize revenue and measure progres s based on labor hours expended to satisfy the performance obligation at average labor rates .
−Removed: We have determined labor hours expended to be the relevant measure of work performed to co mplete the maintenance and repair service for the customer.
−Removed: As a practical expedient, because repair and maintenance service contracts have an original duration of one year or less, we do not consider the time value of money, and we do not disclose estimated revenue expected to be recognized in the future for performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period or when we expect to recognize such revenue.
−Removed: Contract liabilities primarily consist of customer deposits.
−Removed: We recognize contract liabilities (customer deposits) as revenue at the time of delivery or acceptance by the customers.
−Removed: Contract assets, recorded in prepaid expenses and other current assets, totaled approximately $3.6 million and $4.5 million as of December 31, 2019 and December 31, 2020, respectively.
−Removed: We recognize deferred revenue from service operations and slip and storage services over time on a straight-line basis over the term of the contract as our performance obligations are met.
−Removed: We recognize income from the rentals of chartering power yachts over time on a straight-line basis over the term of the contract as our performance obligations are met.
−Removed: V endor Consideration Received
−Removed: We account for consideration received from our vendors in accordance with ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)”.
−Removed: ASC 606 requires us to classify interest assistance received from manufacturers as a reduction of inventory cost and related cost of sales as opposed to netting the assistance against our interest expense incurred with our lenders.
−Removed: Pursuant to ASC 606, amounts received by us under our co-op assistance programs from our manufacturers are netted against related advertising expenses.
−Removed: Our consideration received from our vendors contains uncertainties because the calculation requires management to make assumptions and to apply judgment regarding a number of factors, including our ability to collect amounts due from vendors and the ability to meet certain criteria stipulated by our vendors.
−Removed: We do not believe there is a reasonable likelihood that there will be a change in the future estimates or assumptions we use to calculate our vendor considerations which would result in a material effect on our operating results.
−Removed: Inventory costs consist of the amount paid to acquire inventory, net of vendor consideration and purchase discounts, the cost of equipment added, reconditioning costs, and transportation costs relating to acquiring inventory for sale.
−Removed: We state new and used boat, motor, and trailer inventories at the lower of cost, determined on a specific-identification basis, or net realizable value.
−Removed: We state parts and accessories at the lower of cost, determined on an average cost basis, or net realizable value.
−Removed: We utilize our historical experience, the aging of the inventories, and our consideration of current market trends as the basis for determining a lower of cost or net realizable value valuation allowance.
−Removed: Our lower of cost or net realizable value valuation allowance contains uncertainties because the calculation requires management to make assumptions and to apply judgment regarding the amount at which the inventory will ultimately be sold which considers forecasted market trends, model changes, and new product introductions.
−Removed: We do not believe there is a reasonable likelihood that there will be a change in the future estimates or assumptions we use to calculate our lower of cost or net realizable value valuation allowance which would result in a material effect on our operating results.
−Removed: As of September 30, 2020 and December 31, 2020, our lower of cost or net realizable value valuation allowance for new and used boat, motor, and trailer inventories was $2.4 million and $2.3 million, respectively.
−Removed: If events occur and market conditions change, causing the fair value to fall below carrying value, the lower of cost of net realizable value valuation allowance could increase.
−Removed: We account for goodwill in accordance with FASB Accounting Standards Codification 350, “Intangibles — Goodwill and Other” (“ASC 350”), which provides that the excess of cost over net assets of businesses acquired is recorded as goodwill.
−Removed: In October 2020, we purchased all of the outstanding equity of SkipperBud’s.
−Removed: In July 2020, we purchased Northrop & Johnson, a leading superyacht brokerage and services company.
−Removed: In March 2020, we purchased Boatyard, a digital platform with an expansive range of on-demand services to streamline the boating experience by qualified service providers from a smartphone.
−Removed: In July 2019, we purchased Fraser Yachts Group , a leading superyacht brokerage and largest luxury yacht services company .
−Removed: In total, current and previous acquisitions have resulted in the recording of $84.3 million and $143.1 million in goodwill and other intangible assets as of September 30, 2020 and December 31, 2020, respectively.
−Removed: In accordance with ASC 350, we review goodwill for impairment at least annually and whenever events or changes in circumstances indicate that the carrying value may not be recoverable.
−Removed: impairment tes t is performed during the third fiscal quarter.
−Removed: If the carrying amount of goodwill exceeds its fair value we would recognize an impairment loss in accordance with ASC 350.
−Removed: As of December 31, 2020, and based upon our most recent analysis, we determined through our qualitative assessment that it is not “more likely than not” that the fair values of our reporting units are less than their carrying values.
−Removed: As a result, we were not required to perform a quantitative goodwill impairment test.
−Removed: The qualitative assessment requires us to make judgments and assumptions regarding macroeconomic and industry conditions, our financial performance, and other factors.
−Removed: We do not believe there is a reasonable likelihood that there will be a change in the judgments and assumptions used in our qualitative assessment which would result in a material effect on our operating results.
−Removed: Impairment of Long-Lived Assets
−Removed: FASB Accounting Standards Codification 360-10-40, “Property, Plant, and Equipment - Impairment or Disposal of Long-Lived Assets” (“ASC 360-10-40”), requires that long-lived assets, such as property and equipment and purchased intangibles subject to amortization, be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.
−Removed: Recoverability of the asset (or asset group) is measured by comparison of its carrying amount to undiscounted future net cash flows the asset (or asset group) is expected to generate over the remaining life of the asset (or asset group).
−Removed: If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the asset (or asset group) exceeds its fair market value.
−Removed: Estimates of expected future cash flows represent our best estimate based on currently available information and reasonable and supportable assumptions.
−Removed: Our impairment loss calculations contain uncertainties because they require us to make assumptions and to apply judgment in order to estimate expected future cash flows.
−Removed: Any impairment recognized in accordance with ASC 360-10-40 is permanent and may not be restored.
−Removed: Based upon our most recent analysis, we believe no impairment of long-lived assets existed as of December 31, 2020.
−Removed: We do not believe there is a reasonable likelihood that there will be a change in the future estimates or assumptions used to test for recoverability which would result in a material effect on our operating results.
−Removed: Stock-Based Compensation
−Removed: We account for our stock-based compensation plans following the provisions of FASB Accounting Standards Codification 718, “Compensation — Stock Compensation” (“ASC 718”).
−Removed: In accordance with ASC 718, we use the Black-Scholes valuation model for valuing all options granted and shares purchased under our Employee Stock Purchase Plan.
−Removed: We measure compensation for restricted stock awards and restricted stock units at fair value on the grant date based on the number of shares expected to vest and the quoted market price of our common stock.
−Removed: We recognize compensation cost for all awards in operations on a straight-line basis over the requisite service period for each separately vesting portion of the award.
−Removed: Our valuation models and generally accepted valuation techniques require us to make assumptions and to apply judgment to determine the fair value of our awards.
−Removed: These assumptions and judgments include estimating the volatility of our stock price, expected dividend yield, employee turnover rates and employee stock option exercise behaviors.
−Removed: We do not believe there is a reasonable likelihood that there will be a change in the future estimates or assumptions we use to calculate our stock-based compensation which would result in a material effect on our operating results.
−Removed: We account for income taxes in accordance with FASB Accounting Standards Codification 740, “Income Taxes” (“ASC 740”).
−Removed: Under ASC 740, we recognize deferred tax assets and liabilities for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases.
−Removed: We measure deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which we expect those temporary differences to be recovered or settled.
−Removed: We record valuation allowances to reduce our deferred tax assets to the amount expected to be realized by considering all available positive and negative evidence.
−Removed: Pursuant to ASC 740, we must consider all positive and negative evidence regarding the realization of deferred tax assets.
−Removed: ASC 740 provides for four possible sources of taxable income to realize deferred tax assets:
−Removed: 1) taxable income in prior carryback years, 2) reversals of existing deferred tax liabilities, 3) tax planning strategies and 4) projected future taxable income.
−Removed: As of December 31, 2020, we have (i) no available taxable income in prior carryback years;
−Removed: (ii) limited reversals of existing deferred tax liabilities and (iii) prudent and feasible tax planning strategies.
−Removed: Therefore, the recoverability of our deferred tax assets is dependent upon generating future taxable income.
−Removed: The determination of releasing valuation allowances against deferred tax assets is made, in part, pursuant to our assessment as to whether it is more likely than not that we will generate sufficient future taxable income against which benefits of the deferred tax assets may or may not be realized.
−Removed: Significant judgment is required in making estimates regarding our ability to generate income in future periods.
−Removed: In response to the COVID-19 pandemic, the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) was signed into law in March 2020.
−Removed: The CARES Act lifts certain deduction limitations originally imposed by the Tax Cuts and Jobs Act of 2017 (“2017 Tax Act”).
−Removed: Corporate taxpayers may carryback net operating losses (“NOLs”) originating during 2018 through 2020 for up to five years, which was not previously allowed under the 2017 Tax Act.
−Removed: The CARES Act also eliminates the 80% of taxable income limitations by allowing corporate entities to fully utilize NOL carryforwards to offset taxable income in 2018, 2019 or 2020.
−Removed: Taxpayers may generally deduct interest up to the sum of 50% of adjusted taxable income plus business interest income (30% limit under the 2017 Tax Act) for tax years beginning January 1, 2019 and 2020.
−Removed: The CARES Act allows taxpayers with alternative minimum tax credits to claim a refund in 2020 for the entire amount of the credits instead of recovering the credits through refunds over a period of years, as originally enacted by the 2017 Tax Act.
−Removed: The enactment of the CARES Act did not result in any material adjustments to the Company’s income tax provision for the three months ended December 31, 2020, or to its net deferred tax assets as of December 31, 2020.
−Removed: The application of income tax law is inherently complex.
−Removed: Laws and regulations in this area are voluminous and are often ambiguous.
−Removed: Under ASC 740, the impact of uncertain tax positions taken or expected to be taken on an income tax return must be recognized in the financial statements at the largest amount that is more likely than not to be sustained upon audit by the relevant taxing authority.
−Removed: An uncertain income tax position will not be recognized in the financial statements unless it is more likely than not of being sustained.
−Removed: As such, we are required to make subjective assumptions and judgments regarding our effective tax rate and our income tax exposure.
−Removed: Our effective income tax rate is affected by changes in tax law in the jurisdictions in which we currently operate, tax jurisdictions of new retail locations, our earnings, and the results of tax audits.
−Removed: We believe that the judgments and estimates discussed herein are reasonable.
+Added: See Part II, Item 7, "Application of Critical Accounting Policies" in our Annual Report on Form 10-K for the fiscal year ended September 30, 2020.
+Added: There have been no material changes to our critical accounting policies since our Annual Report on Form 10-K for the fiscal year ended September 30, 2020.
Recent Accounting Pronouncements
1 unchanged sentence
Consolidated Results of Operations
−Removed: The following discussion compares the three months ended December 31, 2020, with the three months ended December 31, 2019 and should be read in conjunction with the unaudited condensed consolidated financial statements, including the related notes thereto, appearing elsewhere in this report.
−Removed: Three Months Ended December 31, 2020 Compared with Three Months Ended December 31, 2019
−Removed: Revenue increased $107.3 million, or 35.3%, to $411.5 million for the three months ended December 31, 2020, from $304.2 million for three months ended December 31, 2019.
+Added: The following discussion compares the three and six months ended March 31, 2021, with the three and six months ended March 31, 2020 and should be read in conjunction with the unaudited condensed consolidated financial statements, including the related notes thereto, appearing elsewhere in this report.
+Added: Three Months Ended March 31, 2021 Compared with Three Months Ended March 31, 2020
+Added: Revenue increased $214.6 million, or 69.6%, to $523.1 million for the three months ended March 31, 2021, from $308.5 million for three months ended March 31, 2020.
The increase was due to a net increase of $140.3 million or 45.5% in comparable-store sales and an increase of $74.3 million from stores opened, stores closed, and acquisitions that are not eligible for inclusion in the comparable-store base for the full period.
1 unchanged sentence
Gross Profit.
−Removed: Gross profit increased $43.4 million, or 54.2%, to $123.4 million for the three months ended December 31, 2020, from $80.0 million for the three months ended December 31, 2019.
−Removed: Gross profit as a percentage of revenue increased to 30.0% for the three months ended December 31, 2020 from 26.3% for the three months ended December 31, 2019 .
+Added: Gross profit increased $ 78.0 million, or 99.0 %, to $ 156.8 million for the three months ended March 31, 2021 , from $ 78.8 million for the three months ended March 31, 20 20 .
+Added: G ross profit as a percentage of revenue increased to 30.0 % for the three months ended March 31, 2021 from 25.5 % for the three months ended March 31, 2020 .
The increase in gross profit as a percentage of revenue was primarily the result of demand driven increased new and used boat margins and increases in our higher margin businesses, including the additional sales of Northrop & Johnson (which typically carry higher margins), as a percentage of sales.
1 unchanged sentence
Selling, General, and Administrative Expenses.
−Removed: Selling, general, and administrative expense increased $27.0 million, or 42.0%, to $91.4 million for the three months ended December 31, 2020, from $64.4 million for the three months ended December 31, 2019.
+Added: Selling, general, and administrative expense increased $34.8 million, or 50.4%, to $103.9 million for the three months ended March 31, 2021, from $69.1 million for the three months ended March 31, 2020.
+Added: Selling, general, and administrative expenses as a percentage of revenue decreased to 19.9% for the three months ended March 31, 2021 from 22.4% for the three months ended March 31, 2020.
+Added: The decrease in selling, general, and administrative expenses as a percentage of revenue was primarily driven by increased revenue combined with increased efficiencies and operating leverage in the business.
The increase in selling, general, and administrative expenses was driven by the increases in revenue from increases in comparable-store sales and acquisitions.
Interest Expense.
−Removed: Interest expense decreased $2.0 million, or 60.6%, to $1.3 million for the three months ended December 31, 2020, from $3.3 million for the three months ended December 31, 2019.
−Removed: Interest expense as a percentage of revenue decreased to 0.3% for the three months ended December 31, 2020 from 1.1% for the three months ended December 31, 2019.
+Added: Interest expense decreased $1.9 million, or 63.3%, to $1.1 million for the three months ended March 31, 2021, from $3.0 million for the three months ended March 31, 2020.
+Added: Interest expense as a percentage of revenue decreased to 0.2% for the three months ended March 31, 2021 from 1.0% for the three months ended March 31, 2020.
The decrease in interest expense was primarily the result of decreased interest rates and decreased borrowings.
Income Taxes.
−Removed: Income tax expense increased $3.9 million, or 120.8%, to $7.1 million for the three months ended December 31, 2020, from $3.2 million for the three months ended December 31, 2019.
−Removed: Our effective income tax rate decreased to 23.2% for the
−Removed: three months ended December 31, 2020, from 26.3% for three months ended December 31, 2019.
+Added: Income tax expense increased $11.2 million, or 700.0%, to $12.8 million for the three months ended March 31, 2021, from $1.6 million for the three months ended March 31, 2020.
+Added: Our effective income tax rate increased to 24.8% for the three months ended March 31, 2021, from 24.4% for three months ended March 31, 2020.
+Added: The increase in the effective income tax rate was primarily attributed to minor changes in the allocation of pre-tax income between taxing jurisdictions.
+Added: Six Months Ended March 31, 2021 Compared with Six Months Ended March 31, 2020
+Added: Revenue increased $322.0 million, or 52.6%, to $934.6 million for the six months ended March 31, 2021, from $612.6 million for the six months ended March 31, 2020.
+Added: The increase was due to a net increase of $201.8 million or 32.9% in comparable-store sales and an increase of $120.2 million from stores opened, stores closed, and acquisitions that are not eligible for inclusion in the comparable-store base for the full period.
+Added: The increase in our comparable-store sales was primarily due to demand driven increases in new and used boat revenue and our higher margin finance and insurance products, brokerage, parts, service, and storage services.
+Added: Gross Profit.
+Added: Gross profit increased $121.4 million, or 76.4%, to $280.2 million for the six months ended March 31, 2021, from $158.8 million for the six months ended March 31, 2020.
+Added: Gross profit as a percentage of revenue increased to 30.0% for the six months ended March 31, 2021 from 25.9% for the six months ended March 31, 2020 .
+Added: The increase in gross profit as a percentage of revenue was primarily the result of demand driven increased new and used boat margins and increases in our higher margin businesses, including the additional sales of Northrop & Johnson (which typically carry higher margins), as a percentage of sales.
+Added: The increase in gross profit dollars was primarily attributable to increased new and used boat sales.
+Added: Selling, General, and Administrative Expenses.
+Added: Selling, general, and administrative expense increased $62.0 million, or 46.5%, to $195.4 million for the six months ended March 31, 2021, from $133.4 million for the six months ended March 31, 2020.
+Added: Selling, general, and administrative expenses as a percentage of revenue decreased to 20.9% for the six months ended March 31, 2021 from 21.8% for the six months ended March 31, 2020.
+Added: The decrease in selling, general, and administrative expenses as a percentage of revenue was primarily driven by increased revenue combined with increased efficiencies and operating leverage in the business.
+Added: The increase in selling, general, and administrative expenses was driven by the increases in revenue from increases in comparable-store sales and acquisitions.
+Added: Interest Expense.
+Added: Interest expense decreased $4.0 million, or 62.5%, to $2.4 million for the six months ended March 31, 2021, from $6.4 million for the six months ended March 31, 2020.
+Added: Interest expense as a percentage of revenue decreased to 0.3% for the six months ended March 31, 2021 from 1.0% for the six months ended March 31, 2020.
+Added: The decrease in interest expense was primarily the result of decreased interest rates and decreased borrowings.
+Added: Income Taxes.
+Added: Income tax expense increased $15.1 million, or 308.2%, to $20.0 million for the six months ended March 31, 2021, from $4.9 million for the six months ended March 31, 2020.
+Added: Our effective income tax rate decreased to 24.2% for the six months ended March 31, 2021, from 25.6% for the six months ended March 31, 2020.
The decrease in the effective income tax rate was primarily attributed to excess equity compensation for tax purposes.
8 unchanged sentences
Any turmoil in the credit markets and weakness in the retail markets may interfere with our ability to remain in compliance with the covenants of the Credit Facility and therefore our ability to utilize the Credit Facility to fund operations.
−Removed: As of December 31, 2020, we were in compliance with all covenants under the Credit Facility.
+Added: As of March 31, 2021, we were in compliance with all covenants under the Credit Facility.
We currently depend upon dividends and other payments from our dealerships and the Credit Facility to fund our current operations and meet our cash needs.
As 100% owner of each of our dealerships, we determine the amounts of such distributions subject to applicable law, and currently, no agreements exist that restrict this flow of funds from our dealerships.
−Removed: For the three months ended December 31, 2020 and 2019, cash used in operating activities was approximately $12.8 million and $19.3 million, respectively.
−Removed: For the three months ended December 31, 2020, cash used in operating activities was primarily related to increases in inventory and prepaid expenses and other assets, decreases in accounts payable and accrued expenses, partially offset by decreases in accounts receivable, increases in customer deposits, and our net income adjusted for non-cash expenses such as depreciation and amortization expense, deferred income tax provision, and stock-based compensation expense.
−Removed: For the three months ended December 31, 2019, cash used in operating activities was primarily related to increases in inventory and prepaid expenses and other assets, decreases in accounts payable, accrued expenses, and customer deposits, partially offset by decreases in accounts receivable and our net income adjusted for non-cash expenses such as depreciation and amortization expense, deferred income tax provision, and stock-based compensation expense.
−Removed: For the three months ended December 31, 2020 and 2019, cash used in investing activities was approximately $55.2 million and $4.4 million, respectively.
−Removed: For the three months ended December 31, 2020, cash used in investing activities was primarily used for acquisitions and to purchase property and equipment associated with improving existing retail facilities.
−Removed: For the three months ended December 31, 2019, cash used in investing activities was primarily used to purchase property and equipment associated with improving existing retail facilities.
−Removed: For the three months ended December 31, 2020 and 2019, cash provided by financing activities was $33.1 million and $21.0 million, respectively.
−Removed: For the three months ended December 31, 2020, cash provided by financing activities was primarily attributable to proceeds from long-term debt and proceeds from the issuance of common stock from our stock based compensation plans, partially offset by net payments on short-term borrowings, payments on tax withholdings for equity awards, and payments for long-term debt and debt issuance costs.
−Removed: For the three months ended December 31, 2019, cash provided by financing activities was primarily attributable to net short-term borrowings as a result of increased inventory levels and proceeds from the issuance of common stock from our stock based compensation plans, partially offset by payments on tax withholdings for equity awards.
+Added: For the six months ended March 31, 2021, cash provided by operating activities was approximately $146.6 million.
+Added: For the six months ended March 31, 2020, cash used in operating activities was approximately $18.6 million.
+Added: For the six months ended March 31, 2021, cash provided by operating activities was primarily related to decreases in inventory (excluding acquisitions), increases in contract liabilities, increases in accrued expenses and other liabilities, partially offset by increases in accounts receivable, increases in prepaid expenses and other assets and decreases in accounts payable, and our net income adjusted for non-cash expenses such as depreciation and amortization expense, deferred income tax provision, and stock-based compensation expense.
+Added: For the six months ended March 31, 2020, cash used in operating activities was primarily related to increases in inventory, decreases in accounts payable and accrued expenses, partially offset by decreases in accounts receivable, increases in customer deposits, and our net income adjusted for non-cash expenses such as depreciation and amortization expense, deferred income tax provision, and stock-based compensation expense.
+Added: For the six months ended March 31, 2021 and 2020, cash used in investing activities was approximately $64.3 million and $5.1 million, respectively.
+Added: For the six months ended March 31, 2021, cash used in investing activities was primarily used for acquisitions, investments, and to purchase property and equipment associated with improving existing retail facilities.
+Added: For the six months ended March 31, 2020, cash used in investing activities was primarily used to purchase property and equipment associated with improving existing retail facilities and acquisitions, partially offset by proceeds received from the sale of property and equipment.
+Added: For the six months ended March 31, 2021, cash used in financing activities was approximately $95.1 million.
+Added: For the six months ended March 31, 2020, cash provided by financing activities was approximately $49.6 million.
+Added: For the six months ended March 31, 2021, cash used in financing activities was primarily attributable to net payments on short-term borrowings, payments on tax withholdings for equity awards, and payments for long-term debt and debt issuance costs, partially offset by proceeds from long-term debt and proceeds from the issuance of common stock from our stock based compensation plans.
+Added: For the six months ended March 31, 2020, cash provided by financing activities was primarily attributable to net short-term borrowings as a result of increased inventory levels and proceeds from the issuance of common stock from our stock based compensation plans, partially offset by payments on tax withholdings for equity awards and by the repurchase of common stock under the share repurchase program .
In May 2020, we entered into a Loan and Security Agreement (the “Credit Facility”), with Wells Fargo Commercial Distribution Finance LLC, M&T Bank, Bank of the West, and Truist Bank.
8 unchanged sentences
Advances on used inventory will mature 361 days from the date we acquire the used inventory.
−Removed: Each advance is subject to a curtailment schedule, which requires that we pay down the balance of each advance on a periodic basis starting
−Removed: after six months.
+Added: Each advance is subject to a curtailment schedule, which requires that we pay down the balance of each advance on a periodic basis starting after six months.
The curtailment schedule varies based on the type and value of the inventory.
−Removed: The collateral for the Credit Facility is primarily the Company’s inventory that is financed through the Credit Facility and related accounts receivable.
+Added: The collateral for the Credit Facility
+Added: is primarily the Company’s inventory that is financed through the Credit Facility and related accounts receivable.
None of our real estate has been pledged for collateral for the Credit Facility.
−Removed: As of December 31, 2020, our indebtedness associated with financing our inventory and working capital needs totaled approximately $163.4 million.
−Removed: As of December 31, 2019 and 2020, the interest rate on the outstanding short-term borrowings was approximately 5.6% and 4.2%, respectively.
−Removed: As of December 31, 2020, our additional available borrowings under our Credit Facility were approximately $133.4 million based upon the outstanding borrowing base availability.
−Removed: As of December 31, 2020 we had approximately $50.1 million in long-term debt, net of current maturities as a result of our mortgage facilities.
+Added: As of March 31, 2021, our indebtedness associated with financing our inventory and working capital needs totaled approximately $35.8 million.
+Added: As of March 31, 2020 and 2021, the interest rate on the outstanding short-term borrowings was approximately 5.0% and 4.2%, respectively.
+Added: As of March 31, 2021, our additional available borrowings under our Credit Facility were approximately $181 million based upon the outstanding borrowing base availability.
+Added: As of March 31, 2021 we had approximately $49.4 million in long-term debt, net of current maturities as a result of our mortgage facilities.
See Note 10 of the Notes to Unaudited Condensed Consolidated Financial Statements.
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.