Financial Performance - Net sales for the three months ended June 30, 2024, increased to $309,082,000, up 9.7% from $281,791,000 in the same period last year[12]. - Gross profit for the nine months ended June 30, 2024, was $269,448,000, representing a 11.1% increase compared to $242,586,000 for the same period in 2023[12]. - Operating income for the three months ended June 30, 2024, rose to $12,847,000, a 41.5% increase from $9,084,000 in the prior year[12]. - Net income for the nine months ended June 30, 2024, was $24,925,000, compared to $17,363,000 for the same period in 2023, reflecting a 43.7% increase[12]. - Basic net income per share for the three months ended June 30, 2024, was $0.40, up from $0.31 in the same period last year[12]. - Net income for the three months ended June 30, 2024, was $9.2 million, an increase of $2.1 million, or 30.2%, compared to $7.1 million for the same period in 2023[69]. - EBITDA for the three months ended June 30, 2024, was $20.7 million, an increase of $4.4 million, or 27.0%, compared to $16.3 million for the same period in 2023[70]. - Adjusted EBITDA for the three months ended June 30, 2024, was $22.2 million, an increase of $5.5 million, or 32.8%, compared to $16.7 million for the same period in 2023[72]. Cash Flow and Dividends - Cash provided by operating activities for the nine months ended June 30, 2024, was $49,280,000, compared to $36,159,000 for the same period in 2023, indicating a 36.3% increase[15]. - The company reported a cash dividend of $29,585,000 to stockholders during the nine months ended June 30, 2024, compared to $6,816,000 in the same period last year[15]. - The company paid a quarterly cash dividend of $0.10 per share in each of the first three quarters of fiscal years 2024 and 2023[43]. - The company is permitted to pay cash dividends to the holding company up to an aggregate amount not to exceed $15.0 million during any fiscal year, subject to certain conditions[129]. Stockholders' Equity and Debt - Total stockholders' equity as of June 30, 2024, was $167,802,000, an increase from $153,860,000 at the end of the previous fiscal year[16]. - The Company had $16.6 million outstanding under the Revolving Facility as of June 30, 2024, compared to no amounts outstanding as of September 30, 2023[37]. - The Company had $56.2 million available for borrowing under the Revolving Facility as of June 30, 2024, an increase from $48.5 million as of September 30, 2023[37]. - The Company incurred interest expense of $3,123,000 for the nine months ended June 30, 2024, compared to $2,478,000 for the same period in 2023[12]. - The effective income tax rate increased to 21.6% for the nine months ended June 30, 2024, from 19.1% for the same period in 2023, primarily due to lower food donation deductions[107]. Store Operations - As of June 30, 2023, the company operated 168 stores, an increase from 165 stores as of September 30, 2022[18]. - The company operated 168 stores across 21 states as of June 30, 2024, with plans to open four new stores and relocate/remodel five existing stores in fiscal year 2024[66][67]. - Daily average comparable store sales increased by 7.2% for the three months ended June 30, 2024, compared to the same period in 2023[69]. Expenses and Costs - Administrative expenses increased by $0.2 million, or 2.5%, to $9.5 million for the three months ended June 30, 2024, representing 3.1% of net sales[96]. - Interest expense, net of capitalized interest, was $1.1 million for the three months ended June 30, 2024, compared to $0.8 million for the same period in 2023[98]. - Pre-opening expenses increased to $1.3 million for the nine months ended June 30, 2024, compared to $1.1 million for the same period in 2023[107]. Lease and Asset Management - Total lease cost for the three months ended June 30, 2024, was $15,400, a slight decrease from $15,407 in the same period of 2023[48]. - Total lease cost for the nine months ended June 30, 2024, was $46,129, compared to $45,273 for the same period in 2023, reflecting an increase of 1.9%[48]. - The company recorded impairment charges of $0.4 million for the three months and $0.5 million for the nine months ended June 30, 2024, related to operating lease assets[51]. - The company had property and equipment net balances of $178,219 as of June 30, 2024, compared to $169,060 as of September 30, 2023[53]. Future Outlook - Future sales growth may vary due to increasing competitive conditions and economic factors, including inflationary or recessionary trends[79]. - The company aims to leverage costs and achieve economies of scale in sourcing products, although fixed costs may limit this ability[79]. - The company experienced annualized cost inflation of approximately 1% in the third quarter of fiscal year 2024, influenced by various macroeconomic factors[74]. Accounting and Compliance - The company has made estimates and assumptions that affect the reported amounts in its financial statements, which may differ from actual amounts[134]. - Critical accounting policies include accounting for income taxes, impairment of long-lived assets, and leases, which significantly impact financial statement preparation[135]. - The company was in compliance with all covenants under the Credit Facility as of June 30, 2024[130].
Natural Grocers by Vitamin tage(NGVC) - 2024 Q3 - Quarterly Report