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Wall Street JournalBased on the provided financial report articles, the title of the article is likely: "10-Q: NGVC - New Age Beverages Corp." The "10-Q" refers to the type of filing, which is a quarterly report filed with the Securities and Exchange Commission (SEC) by publicly traded companies. The "NGVC" refers to the company's ticker symbol, and "New Age Beverages Corp." is the company's name.
Based on the provided financial report articles, the title of the article is likely: "10-Q: NGVC - New Age Beverages Corp." The "10-Q" refers to the type of filing, which is a quarterly report filed with the Securities and Exchange Commission (SEC) by publicly traded companies. The "NGVC" refers to the company's ticker symbol, and "New Age Beverages Corp." is the company's name.
The report presents the financial statements of NGVC for the quarter ended September 30, 2024. The company reported net sales of $[amount] and net income of $[amount]. The balance sheet shows total assets of $[amount], total liabilities of $[amount], and total stockholders’ equity of $[amount]. The company’s cash and cash equivalents decreased by $[amount] during the quarter, and its accounts receivable increased by $[amount]. The report also highlights the company’s significant accounting policies, including its revenue recognition policy and its accounting for inventory. Additionally, the report provides information on the company’s debt and equity, including its revolving credit facility and its term loan.
Company Overview
Natural Grocers is a leading natural and organic grocery and dietary supplement retailer that operates stores focused on providing high-quality products at affordable prices, exceptional customer service, nutrition education and community outreach. As of December 31, 2024, the company operated 167 stores in 21 states across the western and central United States.
Performance Highlights
- Net sales increased 9.4% to $330.2 million for the three months ended December 31, 2024, driven by an 8.9% increase in daily average comparable store sales.
- Net income grew 28.1% to $9.9 million, or $0.43 per diluted share.
- EBITDA increased 16.7% to $21.3 million, and Adjusted EBITDA grew 21.7% to $22.8 million.
Industry Trends and Economics
- The natural and organic grocery industry continues to experience growth driven by increased consumer interest in health and nutrition.
- Competition in the grocery industry is intense, with Natural Grocers facing competition from a variety of traditional and online grocery retailers.
- Macroeconomic factors like inflation, supply chain disruptions, and labor shortages have impacted the business, but the company has taken steps to mitigate these challenges.
Outlook
- Natural Grocers believes it is well-positioned to continue expanding its store base and increasing profitability, though future growth may be impacted by competitive and economic conditions.
- The company plans to open 4-6 new stores and relocate/remodel 2-4 existing stores in fiscal year 2025.
- Opportunities for increased leverage of costs and economies of scale in sourcing products may be limited by the fixed nature of certain expenses.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Sales | $330.2 million | $301.8 million |
| Daily Average Comparable Store Sales | 8.9% increase | 6.2% increase |
| Gross Margin | 29.9% | 29.4% |
| EBITDA | $21.3 million | $18.3 million |
| Adjusted EBITDA | $22.8 million | $18.8 million |
Results of Operations
- Net sales increased 9.4% driven by an 8.9% increase in daily average comparable store sales.
- Gross profit increased 11.3% to $98.8 million, with gross margin expanding to 29.9%.
- Store expenses increased 8.1%, but decreased as a percentage of net sales to 22.3%.
- Administrative expenses increased 22.4% to $11.5 million.
- Net income grew 28.1% to $9.9 million, or $0.43 per diluted share.
Liquidity and Capital Resources
- As of December 31, 2024, the company had $6.3 million in cash and $61.4 million available under its $72.5 million revolving credit facility.
- Cash provided by operating activities decreased 83.9% to $2.7 million, primarily due to changes in working capital.
- Capital expenditures are expected to be $26.6 million to $34.6 million for the remainder of fiscal year 2025, primarily for new store openings and relocations/remodels.
- The company paid a quarterly cash dividend of $0.12 per share and did not repurchase any shares during the quarter.
Overall, Natural Grocers delivered strong financial performance in the quarter, with solid sales growth, margin expansion, and increased profitability. The company remains focused on expanding its store footprint and leveraging its operational strengths to drive continued success in the growing natural and organic grocery industry.