Natural Grocers by Vitamin Cottage Announces Third Quarter and First Nine Months of Fiscal 2017 Results

Gross profit during the third quarter of fiscal 2017 increased 3.6% over the same period in fiscal 2016 to $52.8 million, primarily driven by an increase in the number of comparable stores. Gross profit reflects earnings after both product and occupancy costs. Gross margin was 27.1% of sales for the third quarter of fiscal 2017 compared to 28.4% of sales for the third quarter of fiscal 2016. The decline in gross margin was primarily driven by an increase in occupancy costs and slightly lower product margin, both as a percentage of sales, and by the loss of one selling day during the quarter.

Store expenses during the third quarter of fiscal 2017 increased $4.9 million, or 12.3%, to $45.0 million. Store expenses as a percentage of sales increased to 23.1% during the third quarter of fiscal 2017 compared to 22.4% in the third quarter of fiscal 2016. This increase was primarily due to increases in depreciation, utilities, marketing and other store expenses, partially offset by slightly lower labor-related expenses.

Administrative expenses increased 6.1% to $5.1 million during the third quarter of fiscal 2017 compared to $4.8 million for the comparable period in fiscal 2016, primarily due to an increase in Sarbanes-Oxley-related compliance expenses. Administrative expenses as a percentage of sales decreased to 2.6% during the third quarter of fiscal 2017 compared to 2.7% for the comparable period in fiscal 2016.

Pre-opening and relocation expenses decreased $1.0 million during the third quarter of fiscal 2017 compared to the comparable period in fiscal 2016, due to the impact of the number and timing of new store openings and relocations. During the third quarter of fiscal 2017, the Company opened five new stores, compared to opening six new stores and relocating one store during the third quarter of fiscal 2016.

Interest expense during the third quarter of fiscal 2017 increased $0.1 million compared to the comparable period in fiscal 2016 due to an increase in capital leases and an increase in average borrowings under the Company's revolving credit facility.

The Company's effective income tax rate for the three months ended June 30, 2017 and 2016 was 25.5% and 17.5%, respectively.  The increase in the effective income tax rate for the three months ended June 30, 2017 was primarily the result of a lower effective income tax rate for the three months ended June 30, 2016 due to higher federal and state tax credits in the provision for that period.

Net income was $0.6 million with diluted earnings per share of $0.03 during the third quarter of fiscal 2017. EBITDA in the third quarter of fiscal 2017 was $9.2 million.

Operating Results — First Nine Months of Fiscal 2017 Compared to First Nine Months of Fiscal 2016

During the first nine months of fiscal 2017, net sales increased $46.0 million, or 8.8%, over the same period in fiscal 2016 to $570.5 million, primarily due to a $51.4 million increase in new store sales, partially offset by a $5.4 million decrease in comparable store sales. Daily average comparable store sales decreased 0.7% during the first nine months of fiscal 2017, which followed a 1.8% increase in the first nine months of fiscal 2016. The 0.7% decrease in the first nine months of fiscal 2017 was driven by a 0.8% decrease in daily average transaction count, partially offset by a 0.2% increase in average transaction size. Daily average mature store sales decreased 2.1% in the first nine months of fiscal 2017 compared to a 0.8% decrease in the first nine months of fiscal 2016.

Gross profit during the first nine months of fiscal 2017 increased 5.5% over the same period in fiscal 2016 to $159.1 million, primarily driven by an increase in the number of comparable stores. Gross profit reflects earnings after both product and occupancy costs. Gross margin was 27.9% of sales during the first nine months of fiscal 2017 compared to 28.8% of sales in the first nine months of fiscal 2016. Gross margin was negatively impacted by increased occupancy costs as a percentage of sales, partially offset by a slight improvement in product margin.

Store expenses increased $14.5 million during the first nine months of fiscal 2017 to 22.7% of sales compared to 21.9% in the comparable period in fiscal 2016, primarily driven by an increase in labor-related expenses, depreciation, utilities and other store expenses, partially offset by a decrease in marketing expenses, all as a percentage of sales.

Administrative expenses as a percentage of sales decreased to 2.6% during the first nine months of fiscal 2017 compared to 2.8% in the comparable period in fiscal 2016.

Pre-opening and relocation expenses as a percentage of sales declined to 0.6% during the first nine months of fiscal 2017 compared to 0.8% during the comparable period in fiscal 2016, primarily due to the impact of the number and timing of new store openings and relocations. During the first nine months of fiscal 2017, the Company opened fourteen new stores and relocated one store compared to opening fifteen new stores, relocating three stores and remodeling one store during the first nine months of fiscal 2016.

Interest expense increased $0.6 million in the first nine months of fiscal 2017 compared to the comparable period in fiscal 2016, primarily due to higher average borrowings under the Company's revolving credit facility and an increase in the number of capital leases.

Net income was $5.7 million with diluted earnings per share of $0.25 in the first nine months of fiscal 2017. EBITDA during the first nine months of fiscal 2017 was $33.3 million.

Balance Sheet and Cash Flow

As of June 30, 2017, the Company had $5.1 million in cash and cash equivalents and $16.5 million available for borrowing under its $45 million revolving credit facility. Credit facility usage was comprised of $27.5 million of direct borrowings and $1.0 million of letters of credit as of June 30, 2017.

During the first nine months of fiscal 2017, the Company generated $35.9 million in cash from operations and invested $36.7 million in capital expenditures, primarily for new stores and relocations. Additionally, during the first nine months of fiscal 2017, the Company received proceeds of $2.6 million, net of commissions, from a sale-leaseback transaction for a store building.

Growth and Development

During the third quarter of fiscal 2017, the Company opened five new stores, bringing the total store count as of June 30, 2017 to 140 stores in 19 states. The Company opened fourteen new stores and relocated one store in the first nine months of fiscal 2017 compared to opening fifteen new stores, relocating three stores and remodeling one store in the first nine months of 2016, resulting in a 18.6% and 19.2% unit growth rate, respectively, during those periods.

So far during the fourth quarter of fiscal 2017, the Company has relocated one store in Denver, Colorado.  The Company does not plan to open any additional new or relocated stores during the remainder of fiscal 2017.  The Company has nine signed leases for stores that are planned to open in fiscal 2018 and beyond in Iowa, Missouri, Oregon, Texas and Utah.  

Fiscal 2017 Outlook

The Company is revising its outlook for fiscal 2017, which was last updated when the Company reported second quarter and first half of fiscal 2017 results on May 4, 2017:

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 140 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 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, future growth 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, 2016 (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 statements.

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 June 30,					Nine months ended June 30,
		2017			2016		2017		2016
Net sales		$	194,709		179,274		570,489		524,455
Cost of goods sold and occupancy costs		141,928			128,344		411,397		373,627
Gross profit		52,781			50,930		159,092		150,828
Store expenses		45,028			40,095		129,271		114,768 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 26.04.24 - PR Newswire Datang Intnl Pwr Gen - First Quarterly Report of 2024 26.04.24 - PR Newswire Samson Rock Capital LLP - Form 8.3 - TClarke Plc 26.04.24 - PR Newswire Stellar Asset Management Ltd - Form 8.3 - Equals Group Plc Sehen Sie sich dieses Unternehmen an:    Foto: andreas160578 - Pixabay Rasanter Aufstieg, Branchenrevolution und Jahresumsatz von 50 Mio. $ weiterlesen» Anzeige wo-site-teaser-box-16764_site-teaser-box_2024-04-26_09%253A00%253A00_2024-04-27_09%253A00%253A59