Natural Grocers by Vitamin tage(US:NGVC)2026-02-05 21:06Financial Performance - Net sales for the three months ended December 31, 2025, increased to $335,579,000, up from $330,221,000 in the same period of 2024, representing a growth of 1.1%[20] - Gross profit for the same period was $98,859,000, slightly up from $98,824,000, indicating a stable gross margin[20] - Operating income rose to $14,647,000, compared to $13,348,000 in the prior year, reflecting an increase of 9.7%[20] - Net income for the quarter was $11,334,000, an increase from $9,938,000 year-over-year, marking a growth of 14.0%[20] - Basic net income per share increased to $0.49 from $0.43, a rise of 13.9%[20] - EBITDA for the three months ended December 31, 2025, was $22.6 million, an increase of $1.3 million, or 6.2%, compared to $21.3 million for the same period in 2024[95] - Adjusted EBITDA for the three months ended December 31, 2025, was $23.5 million, an increase of $0.7 million, or 3.1%, compared to $22.8 million for the same period in 2024[95] - Daily average comparable store sales increased by 1.7% for the three months ended December 31, 2025, compared to the same period in 2024[95] - Net income was $11.3 million, or $0.49 diluted earnings per share, for the three months ended December 31, 2025, compared to $9.9 million, or $0.43 diluted earnings per share, for the same period in 2024[119] Assets and Liabilities - Total current assets decreased slightly to $166,808,000 from $168,075,000, a decline of 0.8%[18] - Total liabilities decreased to $448,545,000 from $458,109,000, a reduction of 2.3%[18] - Total stockholders' equity increased to $220,011,000 from $212,395,000, reflecting a growth of 3.8%[18] - Cash and cash equivalents at the end of the period increased to $23,210,000 from $17,116,000, a growth of 35.7%[22] - The Company had $67.6 million available for borrowing under its Credit Facility as of December 31, 2025, down from $70.1 million as of September 30, 2025[52] - The Company had no revolving loan amounts outstanding under the Credit Facility as of December 31, 2025[52] Expenses - Store expenses decreased by $0.5 million, or 0.7%, to $73.0 million for the three months ended December 31, 2025[114] - Administrative expenses decreased by $0.7 million, or 5.9%, to $10.8 million for the three months ended December 31, 2025[115] - The Company incurred gross interest expense of $0.8 million for the three months ended December 31, 2025, compared to $1.0 million for the same period in 2024, showing a decrease of 20%[55] - The total accrued expenses decreased to $31.734 million as of December 31, 2025, from $37.236 million as of September 30, 2025[79] Cash Flow - Net cash provided by operating activities increased by $18.5 million, or 688.0%, to $21.1 million for the three months ended December 31, 2025, compared to $2.7 million for the same period in 2024[133] - Cash and cash equivalents at the end of the period were $23.2 million, up from $6.3 million at the end of December 31, 2024[132] - Net cash used in investing activities increased by $0.2 million, or 1.7%, to $9.6 million for the three months ended December 31, 2025[134] - Net cash used by financing activities was $5.5 million for the three months ended December 31, 2025, compared to net cash provided of $4.2 million for the same period in 2024[136] Store Operations - The company operated 168 stores as of December 31, 2025, down from 169 stores as of September 30, 2025[28] - The company operated 168 stores in 21 states as of December 31, 2025, with plans to open six to eight new stores in fiscal year 2026[92][94] - The company aims for an annual new store unit growth rate of 4% to 5% for the foreseeable future[94] Lease and Property - The Company reported a total property and equipment net value of $189.525 million as of December 31, 2025, up from $182.741 million as of September 30, 2025[75] - The Company recognized operating cash flows from operating leases of $11.467 million for the three months ended December 31, 2025, slightly down from $11.476 million in 2024[71] - The weighted-average remaining lease term for operating leases decreased to 9.3 years as of December 31, 2025, from 9.7 years in 2024[71] - Total future undiscounted lease payments amount to $407.837 million, with $338.909 million related to operating leases and $68.928 million to finance leases[72] - The Company had 24 leases classified as finance leases as of December 31, 2025, down from 25 leases as of September 30, 2025[54] Dividends and Share Repurchase - The Company paid a quarterly cash dividend of $0.15 per share in the first quarter of fiscal year 2026, up from $0.12 per share in the first quarter of fiscal year 2025, representing a 25% increase[58] - The company did not repurchase any shares during the three months ended December 31, 2025, leaving $8.1 million available for future repurchases under the share repurchase program[128] - A quarterly cash dividend of $0.15 per share was paid in the three months ended December 31, 2025, with another dividend approved for March 18, 2026[129] Regulatory Compliance - Certifications required under the Sarbanes-Oxley Act of 2002 were included, ensuring compliance and accountability from principal executive and financial officers[31.1][31.2][31.3] - The company continues to adhere to the requirements of the Securities Exchange Act of 1934, demonstrating commitment to regulatory standards[160] - The report includes notes to the unaudited interim consolidated financial statements, offering additional context on financial results[101] - The company’s filings are not deemed filed with the SEC and are not to be incorporated by reference into any future filings, ensuring clarity in regulatory compliance[101] Strategic Insights - The grocery industry is experiencing increased competition, with a focus on natural and organic products, impacting the company's market position[97] - The company has identified opportunities for increased economies of scale in sourcing products, although fixed costs may limit cost leverage[99] - The balance of contract liabilities related to unredeemed gift cards was $1.8 million as of December 31, 2025, compared to $1.6 million as of September 30, 2025[44]