Financial Performance - Net sales for the three months ended June 30, 2024, increased to 281,791,000 in the same period last year[12]. - Gross profit for the nine months ended June 30, 2024, was 242,586,000 for the same period in 2023[12]. - Operating income for the three months ended June 30, 2024, rose to 9,084,000 in the prior year[12]. - Net income for the nine months ended June 30, 2024, was 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 0.31 in the same period last year[12]. - Net income for the three months ended June 30, 2024, was 2.1 million, or 30.2%, compared to 20.7 million, an increase of 16.3 million for the same period in 2023[70]. - Adjusted EBITDA for the three months ended June 30, 2024, was 5.5 million, or 32.8%, compared to 49,280,000, compared to 29,585,000 to stockholders during the nine months ended June 30, 2024, compared to 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 167,802,000, an increase from 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 48.5 million as of September 30, 2023[37]. - The Company incurred interest expense of 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 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 0.8 million for the same period in 2023[98]. - Pre-opening expenses increased 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 15,407 in the same period of 2023[48]. - Total lease cost for the nine months ended June 30, 2024, was 45,273 for the same period in 2023, reflecting an increase of 1.9%[48]. - The company recorded impairment charges of 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 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