LAKEWOOD, Colo., May 9, 2024 /PRNewswire/ -- Natural Grocers by Vitamin Cottage, Inc. (NYSE: NGVC) today announced that the Company's Board of Directors has declared a quarterly cash dividend of $0.10 per common share. The dividend will be paid on June 19, 2024 to all stockholders of record at the close of business on June 3, 2024. About Natural Grocers by Vitamin Cottage  Natural Grocers by Vitamin Cottage, Inc. (NYSE: NGVC) is an expanding specialty retailer of natural and organic groceries, body care pro ...

[Natural Grocers by Vitamin Cottage Announces Second Quarter Fiscal 2024 Results](index=1&type=section&id=Natural%20Grocers%20by%20Vitamin%20Cottage%20Announces%20Second%20Quarter%20Fiscal%202024%20Results) [Financial and Operational Highlights](index=1&type=section&id=Financial%20and%20Operational%20Highlights) The company reported record Q2 sales, expanded margins, and significant earnings growth, leading to an upgraded fiscal 2024 outlook Q2 Fiscal 2024 Key Performance Indicators | Metric | Value | Change (YoY) | | :--- | :--- | :--- | | Net Sales | $308.1 million | +8.8% | | Daily Average Comparable Store Sales | +7.5% | - | | Net Income | $8.0 million | +36.0% | | Diluted Earnings Per Share (EPS) | $0.35 | +34.6% | | Adjusted EBITDA | $19.7 million | +17.4% | - The **7.5% growth** in daily average comparable store sales was driven by a **3.9% increase** in transaction size and a **3.5% increase** in transaction count, indicating both higher spending per visit and more customer traffic[3](index=3&type=chunk) - Based on the strong performance in the first half of the year, the company raised its fiscal 2024 outlook for daily average comparable store sales growth and diluted earnings per share[3](index=3&type=chunk) [Operating Results](index=1&type=section&id=Operating%20Results) Robust sales growth, driven by comparable store performance and expanded gross margins, boosted operating income across both Q2 and H1 2024 [Second Quarter Fiscal 2024 vs. 2023](index=1&type=section&id=Second%20Quarter%20Fiscal%202024%20vs.%202023) Q2 net sales grew 8.8% to $308.1 million, with improved gross margins and expense control driving a 34.6% rise in diluted EPS Q2 Fiscal 2024 vs. Q2 Fiscal 2023 (in millions, except EPS) | Metric | Q2 2024 | Q2 2023 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $308.1 | $283.2 | +8.8% | | Gross Profit | $90.4 | $82.5 | +9.6% | | Operating Income | $11.3 | $8.4 | +34.4% | | Net Income | $8.0 | $5.9 | +36.0% | | Diluted EPS | $0.35 | $0.26 | +34.6% | - The increase in net sales was driven by a **$21.1 million rise** in comparable store sales and **$5.2 million** from new stores[4](index=4&type=chunk) - Gross margin increased to **29.3%** from 29.1%, driven by store occupancy cost leverage, though partially offset by lower product margin from product mix[5](index=5&type=chunk) - Store expenses as a percentage of net sales decreased to **22.5%** from 23.0% in the prior year quarter, demonstrating effective expense leverage[6](index=6&type=chunk) [First Six Months Fiscal 2024 vs. 2023](index=2&type=section&id=First%20Six%20Months%20Fiscal%202024%20vs.%202023) H1 net sales rose 8.2% to $609.8 million, with significant gross margin expansion leading to a 52.5% increase in net income First Six Months Fiscal 2024 vs. 2023 (in millions, except EPS) | Metric | H1 2024 | H1 2023 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $609.8 | $563.7 | +8.2% | | Gross Profit | $179.1 | $161.2 | +11.1% | | Operating Income | $22.1 | $14.8 | +49.2% | | Net Income | $15.7 | $10.3 | +52.5% | | Diluted EPS | $0.68 | $0.45 | +51.1% | - Daily average comparable store sales for the six-month period grew **6.9%**, comprised of a **3.4% increase** in transaction count and a **3.3% increase** in transaction size[11](index=11&type=chunk) - Gross margin for the first six months increased to **29.4%** from 28.6% year-over-year, attributed to effective pricing and promotions and store occupancy cost leverage[12](index=12&type=chunk) [Financial Position and Cash Flow](index=2&type=section&id=Financial%20Position%20and%20Cash%20Flow) The company maintained a solid financial position, generating $36.8 million in operating cash flow to fund capital expenditures Balance Sheet and Cash Flow Highlights (as of March 31, 2024) | Metric | Value (in millions) | | :--- | :--- | | Cash and cash equivalents | $11.0 | | Outstanding borrowings (revolving facility) | $11.4 | | Cash from operations (First six months) | $36.8 | | Net capital expenditures (First six months) | $22.5 | - Net cash provided by operating activities for the first six months of fiscal 2024 was **$36.8 million**, compared to $34.9 million in the prior year period[33](index=33&type=chunk) [Growth, Dividends, and Outlook](index=2&type=section&id=Growth%2C%20Dividends%2C%20and%20Outlook) The company continues its store expansion, announced a quarterly dividend, and raised its fiscal 2024 sales and earnings outlook [Store Growth and Development](index=2&type=section&id=Store%20Growth%20and%20Development) The company expanded its footprint to 168 stores across 21 states with the opening of one new store in Q2 2024 - The company ended Q2 fiscal 2024 with **168 stores in 21 states** after opening one new store during the quarter[19](index=19&type=chunk) [Dividend Announcement](index=2&type=section&id=Dividend%20Announcement) The Board of Directors declared a quarterly cash dividend of $0.10 per common share, payable in June 2024 - A quarterly cash dividend of **$0.10 per common share** was declared, payable on June 19, 2024, to stockholders of record on June 3, 2024[18](index=18&type=chunk) [Fiscal 2024 Outlook](index=4&type=section&id=Fiscal%202024%20Outlook) Fiscal 2024 guidance was raised, projecting comparable store sales growth of 4.0%-6.0% and diluted EPS of $1.08-$1.18 Updated Fiscal 2024 Outlook | Metric | Fiscal 2024 Outlook | | :--- | :--- | | Number of new stores | 4 to 6 | | Number of relocations/remodels | 4 to 6 | | Daily average comparable store sales growth | 4.0% to 6.0% (Raised) | | Diluted earnings per share | $1.08 to $1.18 (Raised) | | Capital expenditures (in millions) | $30 to $39 | [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) This section presents the unaudited consolidated statements of income, balance sheets, and cash flows for the period ended March 31, 2024 [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) Consolidated Statements of Income (Unaudited, in thousands) | | Three months ended March 31, | Six months ended March 31, | | :--- | :--- | :--- | | | **2024** | **2023** | **2024** | **2023** | | **Net sales** | **$308,092** | **$283,245** | **$609,842** | **$563,702** | | Gross profit | $90,357 | $82,477 | $179,117 | $161,196 | | Operating income | $11,261 | $8,431 | $22,064 | $14,848 | | **Net income** | **$7,961** | **$5,884** | **$15,716** | **$10,291** | | **Diluted EPS** | **$0.35** | **$0.26** | **$0.68** | **$0.45** | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheets (Unaudited, in thousands) | | **March 31, 2024** | **September 30, 2023** | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $10,970 | $18,342 | | Merchandise inventory | $117,352 | $119,260 | | Total current assets | $140,869 | $152,550 | | Total assets | $656,571 | $669,185 | | **Liabilities and Stockholders' Equity** | | | | Total current liabilities | $159,895 | $154,029 | | Total liabilities | $496,597 | $498,344 | | Total stockholders' equity | $159,974 | $170,841 | | **Total liabilities and stockholders' equity** | **$656,571** | **$669,185** | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Consolidated Statements of Cash Flows (Unaudited, in thousands) | | **Six months ended March 31,** | | :--- | :--- | | | **2024** | **2023** | | Net cash provided by operating activities | $36,847 | $34,857 | | Net cash used in investing activities | ($22,510) | ($17,765) | | Net cash used in financing activities | ($21,709) | ($10,166) | | **Net (decrease) increase in cash** | **($7,372)** | **$6,926** | | Cash and cash equivalents, beginning of period | $18,342 | $12,039 | | **Cash and cash equivalents, end of period** | **$10,970** | **$18,965** | [Non-GAAP Financial Measures](index=8&type=section&id=Non-GAAP%20Financial%20Measures) Adjusted EBITDA, a key non-GAAP metric, increased 17.4% in Q2 and 25.6% in H1, with corresponding margin expansion - Management uses EBITDA and Adjusted EBITDA to compare operating performance on a consistent basis, excluding certain non-cash and non-recurring items[35](index=35&type=chunk)[38](index=38&type=chunk) - Adjusted EBITDA as a percentage of net sales increased to **6.4%** in Q2 2024 from 5.9% in Q2 2023, and to **6.3%** for H1 2024 from 5.4% in the prior year period[37](index=37&type=chunk) Reconciliation of Net Income to EBITDA and Adjusted EBITDA (in thousands) | | **Q2 2024** | **Q2 2023** | **H1 2024** | **H1 2023** | | :--- | :--- | :--- | :--- | :--- | | Net income | $7,961 | $5,884 | $15,716 | $10,291 | | EBITDA | $18,963 | $15,585 | $37,217 | $29,064 | | **Adjusted EBITDA** | **$19,730** | **$16,812** | **$38,479** | **$30,648** |

PART I. Financial Information [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) The unaudited interim consolidated financial statements for the period ended March 31, 2024, reflect decreased total assets, stable liabilities, and significant increases in net sales and net income, with cash flow impacted by a special dividend [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets decreased to $656.6 million, primarily due to reduced cash, while total liabilities remained stable and equity declined due to dividends | Balance Sheet Items | March 31, 2024 (in thousands) | September 30, 2023 (in thousands) | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $10,970 | $18,342 | | Total current assets | $140,869 | $152,550 | | Total assets | $656,571 | $669,185 | | **Liabilities & Equity** | | | | Total current liabilities | $159,895 | $154,029 | | Total liabilities | $496,597 | $498,344 | | Total stockholders' equity | $159,974 | $170,841 | [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) For the three and six months ended March 31, 2024, net sales and net income significantly increased, with diluted EPS also rising compared to prior-year periods | Income Statement Highlights | Three Months Ended Mar 31, 2024 (in thousands) | Three Months Ended Mar 31, 2023 (in thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Net sales | $308,092 | $283,245 | 8.8% | | Gross profit | $90,357 | $82,477 | 9.6% | | Operating income | $11,261 | $8,431 | 33.6% | | Net income | $7,961 | $5,884 | 35.3% | | Diluted EPS | $0.35 | $0.26 | 34.6% | | Income Statement Highlights | Six Months Ended Mar 31, 2024 (in thousands) | Six Months Ended Mar 31, 2023 (in thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Net sales | $609,842 | $563,702 | 8.2% | | Gross profit | $179,117 | $161,196 | 11.1% | | Operating income | $22,064 | $14,848 | 48.6% | | Net income | $15,716 | $10,291 | 52.7% | | Diluted EPS | $0.68 | $0.45 | 51.1% | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended March 31, 2024, operating cash flow slightly increased, while investing and financing cash outflows grew significantly, leading to a net decrease in cash | Cash Flow Activities (Six Months Ended) | March 31, 2024 (in thousands) | March 31, 2023 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $36,847 | $34,857 | | Net cash used in investing activities | ($22,510) | ($17,765) | | Net cash used in financing activities | ($21,709) | ($10,166) | | Net (decrease) increase in cash | ($7,372) | $6,926 | | Cash and cash equivalents, end of period | $10,970 | $18,965 | - A significant use of cash in financing activities was **$27.3 million** paid in dividends to shareholders during the six months ended March 31, 2024, compared to **$4.5 million** in the prior year period[23](index=23&type=chunk) [Notes to Unaudited Interim Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Interim%20Consolidated%20Financial%20Statements) The notes detail accounting policies, store operations, revenue breakdown, credit facility, and significant dividend payments, including a special dividend and subsequent board approvals - The company operated **168 stores** in 21 states as of March 31, 2024, an increase from **165 stores** as of September 30, 2023[27](index=27&type=chunk) | Revenue by Product Category (Six Months Ended Mar 31) | 2024 | 2023 | | :--- | :--- | :--- | | Grocery | 70% | 70% | | Dietary supplements | 20% | 21% | | Body care, pet care and other | 10% | 9% | - The company paid a **special cash dividend of $1.00 per share** in the first quarter of fiscal year 2024, in addition to its regular quarterly dividend of **$0.10 per share**[55](index=55&type=chunk) - On May 8, 2024, the Board approved a quarterly cash dividend of **$0.10 per share** and extended the company's share repurchase program to **May 31, 2026**[78](index=78&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes strong Q2 and H1 FY2024 performance to increased sales and comparable store sales, improved gross margin, solid liquidity, and plans for new store openings and remodels | Performance Metric | Q2 FY2024 | Q2 FY2023 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $308.1M | $283.2M | +8.8% | | Daily Avg. Comparable Store Sales | +7.5% | +2.7% | +4.8 p.p. | | Net Income | $8.0M | $5.9M | +35.3% | | Adjusted EBITDA | $19.7M | $16.8M | +17.4% | | Performance Metric | H1 FY2024 | H1 FY2023 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $609.8M | $563.7M | +8.2% | | Daily Avg. Comparable Store Sales | +6.9% | +1.6% | +5.3 p.p. | | Net Income | $15.7M | $10.3M | +52.7% | | Adjusted EBITDA | $38.5M | $30.6M | +25.6% | - The company plans to open **four to six new stores** and relocate/remodel **four to six existing stores** in fiscal year 2024. As of March 31, 2024, **three new stores** had been opened and **one relocated/remodelled**[83](index=83&type=chunk) - Management estimates the company experienced annualized cost inflation of approximately **2%** in the second quarter of fiscal year 2024, influenced by supply disruptions, and increased shipping, commodity, and labor costs[87](index=87&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes have occurred regarding the company's market risk position since the prior fiscal year's Form 10-K disclosure - There have been **no material changes** regarding the company's market risk position from the information provided in the Form 10-K[148](index=148&type=chunk) [Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2024, with no material changes in internal control over financial reporting during the quarter - Based on an evaluation as of March 31, 2024, the company's principal executive and financial officers concluded that disclosure controls and procedures were **effective**[150](index=150&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[151](index=151&type=chunk) PART II. Other Information [Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, none of which are expected to have a material adverse effect on its financial statements - The company states that it does not believe any currently pending legal proceedings will have a **material adverse effect** on its business, financial condition, or results of operations[153](index=153&type=chunk) [Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred regarding the risk factors disclosed in the company's Form 10-K - No **material changes** have occurred regarding the risk factors disclosed in the company's Form 10-K[154](index=154&type=chunk) [Other Information](index=33&type=section&id=Item%205.%20Other%20Information) The Board of Directors extended the share repurchase program until May 31, 2026, with approximately $8.1 million remaining for repurchases - The company's Board of Directors extended the share repurchase program until **May 31, 2026**, with approximately **$8.1 million** remaining for repurchases[155](index=155&type=chunk) [Exhibits](index=34&type=section&id=Item%206.%20Exhibits) This section provides an index of exhibits filed with the Form 10-Q, including corporate governance documents and certifications - Lists exhibits filed with the report, including Sarbanes-Oxley Act certifications and iXBRL data files[159](index=159&type=chunk)

Enjoy discounts, freebies, a contest and more from the Company that has celebrated mothers and remarkable women since 1955.LAKEWOOD, Colo., May 9, 2024 /PRNewswire/ -- The month of May is for moms at Natural Grocers®. The leading family-operated organic and natural grocery retailer in the U.S., treasures those we call mom—those who gave birth to us and those who fill that role regardless of the biology. Why limit the celebration of these multi-dimensional remarkable humans to just one day? Natural Grocers w ...

Company offers customers free body care and beauty samples and up to 30% off best-in-class natural hygiene and beauty essentialsLAKEWOOD, Colo., May 8, 2024 /PRNewswire/ -- "Spring cleaning" can apply to more than just floors, windows and closets. Natural Grocers®, the leading family-operated organic and natural grocery retailer in the U.S., is urging customers to do a little "spring cleaning" with their personal care regimen with its fourth annual Body Care & Beauty Bonanza. Customers can easily establish ...

Donate $1, $5, or $10 at the register. These funds will go to the American Red Cross, and its ongoing tornado relief efforts. All Natural Grocers Stores in Participating States: Iowa, Kansas, Nebraska and Oklahoma. Visit www.naturalgrocers.com/storefinder to find the nearest participating store near you. COMMITMENT TO COMMUNITYOne of the Company's founding principles is a "Commitment to Community." In the decades since its inception, Natural Grocers has developed enduring partnerships with various chariti ...

Family-Operated Grocer offers Montana {N}power® members a free state-themed Natural Grocers reusable bag and additional in-store savingsLAKEWOOD, Colo., May 1, 2024 /PRNewswire/ -- Natural Grocers®, the leading family-operated organic and natural grocery retailer in the U.S., invites customers to its first annual Celebrate Montana Event, May 3-5, at its four Montana stores. Natural Grocers is proud to celebrate Montana Day with a free Natural Grocers reusable tote bag and a $5 off coupon for in-store purcha ...

LAKEWOOD, Colo., April 25, 2024 /PRNewswire/ -- Natural Grocers by Vitamin Cottage, Inc. (NYSE: NGVC) today announced that the Company will release its second quarter fiscal year 2024 financial results after the market close on Thursday, May 9, 2024. Following the release via the wire services, the Company will host a conference call with financial analysts and investors at 2:30 p.m. Mountain Time (4:30 p.m. Eastern Time). To participate in the conference call, dial 1-888-347-6606 (U.S.); 1-855-669-9657 (Ca ...

Natural Grocers will donate 5% of its sales at the new Warr Acres store on May 2, to the Natural Grocers Heroes in Aprons Fund. Established in 2020, this nonprofit 501(c)(3) charitable organization provides short-term financial assistance to Natural Grocers good4u® Crew members or their immediate family members who have encountered economic hardship due to unforeseen life impacting events like serious medical issues or natural disasters. "There's an excited buzz among Oklahoma City residents regarding our u ...

La Puente Home, Inc. is a 501(c)(3) non-profit organization based in Colorado's San Luis Valley (SLV), providing a safety net of services where individuals and families get what they need to stabilize, heal, and ultimately thrive. Their programs vary in response to the effects of poverty that the members of their community face daily. NATURAL GROCERS & FOOD INSECURITYFighting Food Insecurity is a cause Natural Grocers has supported since before the company opened its first storefront. "My grandmother, Natur ...