Financial Performance - Net sales for the three months ended March 31, 2025, increased to $335.769 million, up 9.0% from $308.092 million in the same period of 2024[20] - Gross profit for the six months ended March 31, 2025, was $200.572 million, representing a 12.0% increase from $179.117 million in the prior year[20] - Net income for the three months ended March 31, 2025, was $13.101 million, a significant increase of 64.8% compared to $7.961 million in the same period of 2024[20] - Operating income for the six months ended March 31, 2025, was $30.901 million, up 40.2% from $22.064 million in the same period of 2024[20] - Revenue for the three months ended March 31, 2025, was $335.8 million, a 9% increase from $308.1 million in the same period of 2024[42] - Net income for the six months ended March 31, 2025, was $23.0 million, or $0.99 diluted earnings per share, compared to $15.7 million, or $0.68 diluted earnings per share, for the same period in 2024, representing a 46.6% increase[122] - EBITDA for the three months ended March 31, 2025, was $25.4 million, an increase of $6.5 million, or 34.2%, compared to $19.0 million for the same period in 2024[87] - Adjusted EBITDA for the three months ended March 31, 2025, was $26.3 million, an increase of $6.6 million, or 33.3%, compared to $19.7 million for the same period in 2024[89] Assets and Liabilities - Total current assets rose to $163.248 million as of March 31, 2025, compared to $147.058 million as of September 30, 2024, reflecting a 11.0% increase[18] - Total liabilities decreased to $471.615 million as of March 31, 2025, down from $481.222 million as of September 30, 2024, indicating a reduction of 2.5%[18] - Cash and cash equivalents increased to $21.209 million at the end of March 2025, compared to $8.871 million at the end of September 2024, marking a substantial increase of 139.0%[18] - Total stockholders' equity increased to $192.975 million as of March 31, 2025, up from $174.254 million as of September 30, 2024, representing an increase of 10.8%[18] - The Company had $70.3 million available for borrowing under its Credit Facility as of March 31, 2025, with no revolving loan amounts outstanding[48] - As of March 31, 2025, cash and cash equivalents were $21.2 million, with $70.3 million available for borrowing under the Credit Facility[89] Store Operations - The company operated 169 stores as of March 31, 2025, maintaining the same number of stores as of September 30, 2024[27] - The company operated 169 stores in 21 states as of March 31, 2025, with plans to open three to four new stores in fiscal year 2025[84] - The company opened 2 new stores during the period, bringing the total number of stores to 169[103] - The twelve-month store unit growth rate was 0.6%, down from 1.2% in the previous year[104] Expenses - Store expenses increased by $3.6 million, or 5.1%, to $72.8 million, with store expenses as a percentage of net sales decreasing from 22.5% to 21.7%[108] - Administrative expenses rose by $1.5 million, or 15.8%, to $11.0 million, with administrative expenses as a percentage of net sales increasing from 3.1% to 3.3%[109] - Total lease cost for the three months ended March 31, 2025, was $15.6 million, slightly up from $15.5 million in the same period of 2024, indicating a year-over-year increase of 0.6%[66] - Depreciation and amortization expense totaled $7.9 million for the three months ended March 31, 2025, compared to $7.7 million for the same period in 2024, representing an increase of approximately 2.4%[71] Credit Facility and Financing - The Credit Facility was amended on November 16, 2023, increasing aggregate revolving commitments from $50.0 million to $75.0 million and extending the maturity date to November 16, 2028[47] - The company is in compliance with all covenants under the Credit Facility as of March 31, 2025[146] - Interest expense, net of capitalized interest, decreased to $1.7 million for the six months ended March 31, 2025, down from $2.1 million in the same period of 2024[120] - Cash provided by operating activities decreased by $0.1 million, or 0.3%, to $36.7 million for the six months ended March 31, 2025, compared to $36.8 million for the same period in 2024[137] - Net cash used in financing activities was $8.5 million for the six months ended March 31, 2025, compared to $21.7 million for the same period in 2024, which included a special cash dividend of $22.7 million paid to stockholders in 2024[141] Future Outlook - The company anticipates future sales growth may vary due to increasing competitive conditions and economic factors, including inflationary trends[93] - The company plans to continue opening new stores and relocating/remodeling existing stores, which may require additional borrowings under the Credit Facility[135] - The company plans to spend approximately $20.1 million to $28.1 million on capital expenditures during the remainder of fiscal year 2025, primarily for new store openings and relocations/remodels[139] Accounting Changes - The Company adopted ASU 2016-13 effective October 1, 2023, which did not have a material impact on its consolidated financial statements[33] - The Company expects the adoption of ASU 2023-07, effective for the annual reporting period ending September 30, 2025, to impact its single reportable segment disclosures[34]
Natural Grocers by Vitamin tage(NGVC) - 2025 Q2 - Quarterly Report