Exhibit 99.1

 

 

Natural Grocers by Vitamin Cottage Announces Fiscal 2018 Fourth Quarter and Full Year Results and Provides Fiscal 2019 Outlook

 

Lakewood, Colorado, November 15, 2018. Natural Grocers by Vitamin Cottage, Inc. (NYSE: NGVC) today announced results for its fourth quarter and fiscal year ended September 30, 2018, and provided its outlook for fiscal 2019.

 

Highlights for Fourth Quarter and Fiscal 2018 Compared to Fourth Quarter and Fiscal 2017

 

Net sales increased 9.6% to $217.5 million in the fourth quarter and increased 10.4% to $849.0 million in fiscal 2018;

 

Daily average comparable store sales increased 6.3% in the fourth quarter and increased 5.8% in fiscal 2018;

 

Net income increased 68.7% to $2.1 million with diluted earnings per share of $0.09 in the fourth quarter and was $12.7 million with diluted earnings per share of $0.56 in fiscal 2018;

 

Adjusted EBITDA, which excludes the effect of long-lived asset impairment charges and store closure costs, increased 9.8% to $11.3 million in the fourth quarter and was $45.1 million in fiscal 2018; and

 

Opened one new store and relocated one store in the fourth quarter, resulting in a 5.7% new store growth rate for the twelve-month period ended September 30, 2018.

 

“We continued to generate strong sales momentum during the fourth quarter while leveraging store expenses and delivering earnings per share growth,” said Kemper Isely, Co-President. “We are pleased with the improvements we achieved during fiscal 2018, including accelerating comparable store sales growth, moderating the impact of our pricing and promotional investments on gross margin and controlling expenses to deliver improved earnings growth. By leveraging our new store growth and operating strategies, we believe we are well positioned to continue to drive sales growth and improved profit performance in fiscal 2019.”

 

In addition to presenting the financial results of Natural Grocers by Vitamin Cottage, Inc. and its subsidiaries (collectively, the Company) for the fourth quarter and fiscal years 2018 and 2017 in conformity with U.S. generally accepted accounting principles (GAAP), the Company is also presenting EBITDA and Adjusted EBITDA, which are non-GAAP financial measures. The reconciliation from GAAP to these non-GAAP financial measures is provided at the end of this earnings release.

 

Operating Results — Fourth Quarter Fiscal 2018 Compared to Fourth Quarter Fiscal 2017

 

During the fourth quarter of fiscal 2018, net sales increased $19.0 million, or 9.6%, to $217.5 million compared to the same period in fiscal 2017, primarily driven by a $12.6 million increase in comparable store sales and a $6.4 million increase in new store sales. Daily average comparable store sales increased 6.3% in the fourth quarter of fiscal 2018 compared to a 2.1% increase in the fourth quarter of fiscal 2017. The daily average comparable store sales increase during the fourth quarter of fiscal 2018 reflected a 3.8% increase in daily average transaction count and a 2.5% increase in average transaction size. Daily average mature store sales increased 3.9% in the fourth quarter of fiscal 2018 compared to a 0.2% decrease in the fourth quarter of fiscal 2017. For fiscal 2018, mature stores include all stores open during or before fiscal 2013.

 

Gross profit during the fourth quarter of fiscal 2018 increased 7.6% over the same period in fiscal 2017 to $57.3 million. Gross profit reflects earnings after both product and occupancy costs. Gross margin was 26.3% of sales for the fourth quarter of fiscal 2018 compared to 26.8% of sales for the fourth quarter of fiscal 2017. The decline in gross margin was driven by lower product margin, reflecting the Company’s promotional pricing campaigns and a shift in sales mix to lower margin products.

 

Store expenses during the fourth quarter of fiscal 2018 increased $3.0 million, or 6.7%, to $48.1 million. Store expenses as a percentage of sales decreased to 22.1% during the fourth quarter of fiscal 2018 compared to 22.7% in the fourth quarter of fiscal 2017. This decrease was primarily due to expense leverage from increased sales and decreases in labor-related expenses, marketing and depreciation expenses, partially offset by an increase in other store expenses, all as a percentage of sales. Other store expenses include $0.6 million of long-lived asset impairment charges and store closure costs.

 

 

The following information was filed by Natural Grocers By Vitamin Cottage, Inc. (NGVC) on Thursday, November 15, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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