Natural Grocers by Vitamin tage(NGVC) - 2025 Q4 - Annual Report

Financial Performance - Net sales for the year ended September 30, 2025, increased to $1,330,836 thousand, a 7.2% increase from $1,241,585 thousand in 2024[315] - Gross profit rose to $397,877 thousand in 2025, up 9.1% from $364,810 thousand in 2024[315] - Net income for 2025 was $46,444 thousand, representing a 37% increase compared to $33,935 thousand in 2024[315] - Basic net income per share increased to $2.02 in 2025, up from $1.49 in 2024, reflecting a 35.6% growth[315] - For the year ended September 30, 2025, the company's total revenue reached $1,330.8 million, a 7.2% increase from $1,241.6 million in 2024[366] - Grocery sales accounted for 72% of total revenue in 2025, with $952.2 million, up from 71% in 2024[366] - Basic earnings per share (EPS) for 2025 was $2.02, an increase of 35.6% compared to $1.49 in 2024[368] - The company recorded net income of $46.4 million for the year ended September 30, 2025, compared to $33.9 million in 2024, reflecting a 37% increase[368] Assets and Liabilities - As of September 30, 2025, total assets increased to $670.5 million from $655.5 million in 2024, reflecting a growth of approximately 2%[312] - Total liabilities decreased to $458.1 million from $481.2 million, a reduction of approximately 5%[312] - Stockholders' equity grew to $212.4 million, up from $174.3 million, representing a 22% increase[312] - Long-lived assets, including property and equipment, totaled $182.7 million as of September 30, 2025[298] - Cash and cash equivalents rose significantly to $17.1 million, up from $8.9 million in 2024, marking an increase of 93%[312] - Merchandise inventory increased to $133.0 million, a rise of 10% from $120.7 million in 2024[312] - Operating lease assets decreased to $259.6 million from $275.1 million, a decline of about 6%[312] - The company reported total accrued expenses of $37.2 million as of September 30, 2025, an increase from $35.8 million in 2024[378] Cash Flow and Dividends - Net cash provided by operating activities decreased to $55,304 thousand in 2025 from $73,760 thousand in 2024, a decline of 25%[318] - The company reported cash dividends of $11,009 thousand in 2025, down from $31,866 thousand in 2024[320] - The Company paid a quarterly cash dividend of $0.12 per share in fiscal year 2025, up from $0.10 in fiscal years 2024 and 2023[413] - The company declared a quarterly cash dividend of $0.15 per share on November 19, 2025, to be paid on December 10, 2025[427] Expenses and Costs - Total advertising and marketing expenses for the years ended September 30, 2025, 2024, and 2023 were $7.0 million, $7.9 million, and $6.9 million, respectively, net of vendor reimbursements of $9.3 million, $7.9 million, and $7.1 million for the same periods[348] - Cost of goods sold and occupancy costs for 2025 totaled $932,959, up 6.4% from $876,775 in 2024 and 14.7% from $813,637 in 2023[424] - Direct operating costs increased to $316,661 in 2025, a rise of 6.5% from $296,385 in 2024 and 15.5% from $274,167 in 2023[424] - Interest expense, net, decreased to $3,063 in 2025 from $4,176 in 2024, suggesting better debt management[424] - Pre-opening expenses decreased to $1,043 in 2025 from $1,722 in 2024 and $2,007 in 2023, indicating improved cost management in new openings[424] Shareholder Information - The Company has increased its restricted payment capacity by $2.5 million, allowing for cash dividends and stock repurchases not to exceed $15.0 million during any fiscal year[382] - The Company has a share repurchase program with $8.1 million remaining for potential repurchases as of December 8, 2025[411] - Share-based compensation expense totaled $4.0 million for the year ended September 30, 2025, compared to $2.8 million in 2024 and $1.4 million in 2023[407] - The Company anticipates recognizing $7.5 million of unrecognized share-based compensation expense over a weighted average period of approximately 2.3 years as of September 30, 2025[408] Taxation - The total provision for income taxes for the year ended September 30, 2025, was $12.483 million, an increase from $8.866 million in 2024 and $5.127 million in 2023[417] - The Company had a current federal income tax expense of $12.575 million for the year ended September 30, 2025, compared to $10.413 million in 2024 and $5.291 million in 2023[417] Operational Insights - The company operated 169 retail stores as of September 30, 2025, maintaining the same number of stores as in 2024[323] - The largest vendor accounted for approximately 69% of all product purchases in 2025, slightly up from 68% in 2024[331] - The Company has one operating segment, which is natural and organic retail stores, deriving all revenue from grocery and related product sales in the United States[423] - The Company assesses its long-lived assets for possible impairment at least annually, with significant changes in performance or decisions to close stores triggering assessments[336] - The Company recorded no impairment charges related to goodwill or indefinite-lived intangibles as of September 30, 2025[337] Debt and Credit Facilities - The company has no amounts outstanding under its Credit Facility as of September 30, 2025[289] - The Company amended its Credit Facility 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[382] - As of September 30, 2025, the Company had $70.1 million available for borrowing under the Credit Facility, with no revolving loan amounts outstanding[383] - The Company incurred gross interest expense of $3.3 million for the year ended September 30, 2025, down from $4.5 million in 2024[386] Lease Information - Total lease cost for the year ended September 30, 2025, was $62.0 million, an increase from $61.5 million in 2024[397] - Operating cash flows from operating leases were $46.2 million for the year ended September 30, 2025, compared to $46.0 million in 2024[398] - The weighted-average remaining lease term for operating leases was 9.3 years as of September 30, 2025, down from 9.9 years in 2024[398] - Future undiscounted lease payments total $416.4 million as of September 30, 2025, with $282.3 million reported as lease liability[400] - The Company had 25 finance leases as of September 30, 2025, with no rent expense recorded for these leases[385] - The Company recognized sublease income of $0.4 million for the year ended September 30, 2025[397]