Natural Grocers by Vitamin Cottage Announces Fiscal 2016 Fourth Quarter and Full Year Results and Provides Fiscal 2017 Outlook

Store expenses during the fourth quarter of fiscal 2016 increased $6.3 million, or 17.9%, to $41.4 million. Store expenses as a percentage of sales increased approximately 130 basis points to 22.9% during the fourth quarter of fiscal 2016 compared to 21.6% in the fourth quarter of fiscal 2015. This increase was primarily due to increases, as a percentage of sales, in salary-related expenses, depreciation and other store expenses.

Administrative expenses decreased $0.1 million, or 1.5%, to $4.7 million during the fourth quarter of fiscal 2016 compared to $4.8 million during the fourth quarter of 2015.  Administrative expenses as a percentage of sales decreased approximately 40 basis points to 2.6% in the fourth quarter of fiscal 2016 compared to 3.0% in the fourth quarter of fiscal 2015, primarily due to a decrease in salary-related expenses and various professional fees.

Pre-opening and relocation expenses increased $0.3 million to $1.6 million during the fourth quarter of fiscal 2016 compared to $1.3 million during the comparable period in fiscal 2015, due to the number and timing of new store openings. During the fourth quarter of fiscal 2016, the Company opened eight new stores and relocated one store compared to opening four new stores, relocating one store and remodeling one store during the fourth quarter of fiscal 2015.

Interest expense during the fourth quarter of fiscal 2016 increased to $0.9 million compared to $0.8 million during the fourth quarter of fiscal 2015 primarily due to an increase in borrowings under the company's revolving credit facility.

The Company's effective income tax rate for the three months ended September 30, 2016 and 2015 was 37.1% and 39.7%, respectively.  The decrease in the effective income tax rate was driven by a revision in the Company's estimated annual federal tax rate from 35% to 34% and an increase in additional tax credits.

Net income in the fourth quarter of fiscal 2016 was $1.5 million, with diluted earnings per share of $0.07. EBITDA in the fourth quarter of fiscal 2016 was $10.1 million.

Operating Results —Fiscal 2016 Compared to Fiscal 2015

In fiscal 2016, net sales increased $80.8 million, or 12.9%, to $705.5 million compared to fiscal 2015 due to a $70.5 million increase in sales from new stores and a $10.3 million, or 1.7%, increase in comparable store sales. Daily average comparable store sales increased 1.4% during fiscal 2016, which followed a 5.9% increase in fiscal 2015. The 1.4% increase in fiscal 2016 was driven by a 1.1% increase in average transaction size and a 0.2% increase in daily average transaction count. Daily average mature store sales decreased 1.0% in fiscal 2016.

Gross profit in fiscal 2016 increased 10.8% over fiscal 2015 to $201.8 million, primarily driven by an increase in the number of comparable stores, comparable store sales growth and one additional selling day due to the leap year. Gross profit reflects earnings after both product and occupancy costs. Gross margin was 28.6% in fiscal 2016, compared to 29.2% in fiscal 2015. Gross margin was negatively impacted by an increase in occupancy costs as a percentage of sales. The increase in occupancy costs as a percentage of sales was primarily due to higher average lease expenses at newer and relocated stores and also reflects the decrease in mature store sales and the fixed nature of rent obligations and related occupancy expenses. Additionally, product margin improved across certain categories, partially offset by increased shrink expense, all as a percentage of sales.

Store expenses increased $24.0 million, or 18.2%, to $156.2 million in fiscal 2016 from $132.1 million in fiscal 2015. Store expenses as a percentage of sales increased approximately 90 basis points to 22.1% in fiscal 2016 compared to 21.2% in fiscal 2015. The increase in store expenses as a percentage of sales was primarily due to increases in salary-related expenses, depreciation and other store expenses.

Administrative expenses increased $1.7 million, or 9.9%, to $19.2 million in fiscal 2016 compared to $17.5 million in fiscal 2015. The increase was primarily due to the addition of senior management positions to support growth, together with increased legal and public company costs. Administrative expenses as a percentage of sales were 2.7% and 2.8% for fiscal years 2016 and 2015, respectively.

Pre-opening and relocation expenses increased $2.2 million to $6.0 million in fiscal 2016 compared to $3.8 million in fiscal 2015. The increase was primarily due to the number and timing of new store openings and relocations. During fiscal 2016, the Company opened 23 new stores, relocated four stores and remodeled one store compared to opening 16 new stores, relocating one store and remodeling one store during fiscal 2015.

Interest expense increased less than $0.1 million, or 1.7%, in fiscal 2016 compared to fiscal 2015, primarily due to an increase in interest expense associated with the Company's revolving credit facility due to higher average borrowings, partially offset by an increase in capitalized interest during fiscal 2016.

The Company's effective income tax rate for fiscal years 2016 and 2015 was 33.8% and 36.8%, respectively.  The decrease in the effective income tax rate was primarily due to a revision in the Company's estimated annual federal tax rate from 35% to 34% and federal and state tax credits in the Company's fiscal 2015 tax return that were higher than previously estimated in the 2015 fiscal year tax provision.

Net income for fiscal 2016 was $11.5 million, with diluted earnings per share of $0.51. EBITDA for fiscal 2016 was $45.9 million.

Balance Sheet and Cash Flow

As of September 30, 2016, the Company had $4.0 million in cash and cash equivalents and $16.6 million available under its $45 million revolving credit facility.  Credit facility usage was comprised of $27.4 million of direct borrowings and $1.0 million of letters of credit.

During fiscal 2016, the Company generated $28.8 million in cash from operations and invested $53.8 million in capital expenditures, primarily for new and relocated stores. Additionally, during fiscal 2016, the Company utilized $0.8 million for the repurchase of 67,970 common shares under the Company's two-year share repurchase program pursuant to which the Company may repurchase up to $10.0 million in shares of the Company's common stock.

Growth and Development

During the fourth quarter of fiscal 2016, the Company opened eight new stores, bringing the total store count as of September 30, 2016 to 126 stores located in 19 states. The Company opened 23 new stores in fiscal 2016 compared to 16 new stores in fiscal 2015, resulting in 22.3% and 18.4% unit growth rate for the fiscal years 2016 and 2015, respectively. Additionally, the Company relocated four stores and completed the remodel of another store during fiscal 2016. The Company now plans to open a total of 15 to 20 new stores during fiscal 2017 (compared to an initial expectation of 19 to 23 store openings), which would result in an annual unit growth rate of 12% to 16%.

Since October 1, 2016, the Company has opened one additional store in Missouri and has signed leases for 19 stores planned to open in fiscal 2017 and 2018, all in states where the Company currently operates.

Fiscal 2017 Outlook

For fiscal 2017, the Company expects:

The Company does not provide financial guidance for forecasted net income, and, therefore, is unable to provide a reconciliation of its EBITDA guidance to net income, the most comparable financial measure calculated in accordance with GAAP.

Earnings Conference Call

The Company will host a conference call today at 2:30 p.m. Mountain Time (4:30 p.m. Eastern Time) to discuss this earnings release. The dial-in number is 1-888-347-6606 (US); 1-855-669-9657 (Canada); or 1-412-902-4289 (International). The conference ID is "Natural Grocers by Vitamin Cottage." A simultaneous audio webcast will be available at http://Investors.NaturalGrocers.com and archived for a minimum of 30 days.

About Natural Grocers by Vitamin Cottage

Natural Grocers by Vitamin Cottage, Inc. (NYSE: NGVC) is a rapidly expanding specialty retailer of natural and organic groceries and dietary supplements whose products must meet strict quality guidelines. The grocery products sold by Natural Grocers may not contain artificial colors, flavors, preservatives or sweeteners, or partially hydrogenated or hydrogenated oils. The Company sells only USDA certified organic produce and exclusively pasture-raised, non-confinement dairy products. Natural Grocers' flexible smaller-store format allows it to offer affordable prices in a shopper-friendly retail environment. The Company also provides extensive free science-based nutrition education programs to help customers make informed health and nutrition choices. The Company, founded in 1955, has 127 stores in 19 states.

Visit www.NaturalGrocers.com for more information and store locations.

Forward-Looking Statements

The following constitutes a "safe harbor" statement under the Private Securities Litigation Reform Act of 1995. Except for the historical information contained herein, statements in this release are "forward-looking statements" and are based on current expectations and assumptions that are subject to risks and uncertainties. All statements that are not statements of historical fact (including 2017 guidance) are forward-looking statements. Actual results could differ materially from those described in the forward-looking statements because of factors such as changes in the Company's industry, business strategy, goals and expectations concerning the Company's market position, the economy, future operations, margins, profitability, capital expenditures, liquidity and capital resources, other financial and operating information and other risks detailed in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2015 (Form 10-K) and the Company's subsequent quarterly reports on Form 10-Q. The information contained herein speaks only as of the date of this release and the Company undertakes no obligation to update forward-looking

For further information regarding risks and uncertainties associated with the Company's business, please refer to the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections of the Company's filings with the Securities and Exchange Commission, including, but not limited to, the Form 10-K and the Company's subsequent quarterly reports on Form 10-Q, copies of which may be obtained by contacting Investor Relations at 303-986-4600 or by visiting the Company's website at http://Investors.NaturalGrocers.com.

NATURAL GROCERS BY VITAMIN COTTAGE, INC
Consolidated Statements of Income
(Unaudited)
(Dollars in thousands, except per share data)
		Three months ended September 30,					Year ended September 30,
		2016			2015		2016		2015
Net sales		$	181,044		162,397		705,499		624,678
Cost of goods sold and occupancy costs		130,100			115,607		503,727		442,582
Gross profit		50,944			46,790		201,772		182,096
Store expenses		41,390			35,113		156,158		132,131
Administrative expenses		4,739			4,809		19,242		17,514
Pre-opening and relocation expenses		1,594 Werbung Mehr Nachrichten zur Natural Grocers by Vitamin Cottage Inc Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 13:36 - ARIVA.DE Redaktion MDAX im Plus: Das Kursbarometer klettert um 673 Punkte (26.663 Pkt.) 22.04.24 - ARIVA.DE Redaktion Nachfrage nach Bayer verhilft DAX in die Gewinnzone (17.865 Pkt.) Der KI-Boom ist vorbei!    Aber dieser heiße Sektor verspricht, weiter zu wachsen... weiterlesen» Anzeige wo-site-teaser-box-16737_site-teaser-box_2024-04-23_09%253A00%253A00_2024-04-24_09%253A00%253A59