Natural Grocers by Vitamin Cottage Inc. has released results for the second quarter and first half of fiscal year 2013, and updated its outlook for fiscal year 2013.
In addition to presenting the financial results of Natural Grocers and its subsidiaries conformity with U.S. generally accepted accounting principles (GAAP), the company has presented selected second quarter and first half of fiscal year 2012 results on a pro forma basis to reflect the purchase of the 45 percent non-controlling interest in Boulder Vitamin Cottage Group LLC (BVC), which owned five stores in Colorado.
Highlights for 2Q, fiscal 2013’s first half compared to prior period
• Net sales increased 25.4 percent to $106.5 million in the second quarter and increased 26.6 percent to $202.3 million in the first half of fiscal 2013.
• Daily average comparable store sales increased 10.6 percent in the second quarter and increased 11.6 percent in the first half of fiscal 2013. Daily average comparable store sales removes the effect of the loss of two selling days in the second quarter of fiscal 2013 due to leap year in 2012 and the occurrence of Easter in March 2013 rather than April 2012.
• Net income attributable to Natural Grocers increased 29.5 percent to $3.2 million with diluted earnings per share of $0.14 in the second quarter and increased 56.5 percent to $5.4 million with diluted earnings per share of $0.24 in the first half of fiscal 2013.
• Net income attributable to Natural Grocers compared to pro forma net income attributable to Natural Grocers (which illustrates net income as if the company owned 100 percent of BVC for the comparable period in fiscal year 2012) increased 20.6 percent to $3.2 million for the second quarter and increased 42.1 percent to $5.4 million in the first half of fiscal 2013.
• EBITDA increased 28.3 percent to $8.8 million in the second quarter and increased 39.6 percent to $15.5 million in the first half of fiscal 2013.
“We are pleased to announce our results this quarter with continued strength in both sales and earnings growth while remaining focused on our five founding principles,” says Kemper Isely, co-president of Natural Grocers
Balance sheet and cash flow
During the first half of fiscal 2013 the company generated $10.7 million in cash from operating activities and invested $17.7 million in capital expenditures, primarily for new stores.
The company ended the second quarter of fiscal 2013 with $9.5 million in cash and cash equivalents, $500,000 in restricted cash and $1.8 million in available for sale securities, as well as $15.0 million available under the revolving credit facility.
The company was deemed to be the owner during the construction period for five build-to-suit store locations. Two opened during the fourth quarter of fiscal 2012, two opened during the first quarter of fiscal 2013 and one opened during the second quarter of fiscal 2013. In addition, the company has two stores that are accounted for as capital leases. Both opened during the second quarter of fiscal 2013.
Growth and development
During the second quarter of fiscal 2013, the company opened four new stores, bringing the total store count to 65 stores located in 13 states.
The company plans to open 13 stores in fiscal year 2013 and expects to relocate one and remodel two existing stores. On April 23, the company opened its first store of the third quarter in Kalispell, Mont.
The company has signed leases for the remaining six stores planned to open in fiscal year 2013 and four stores planned to open in fiscal year 2014. Leases have been signed for locations in Idaho Falls, Idaho; Shawnee and Topeka, Kan.; Omaha, Neb.; Tulsa, Okla.; Beaverton, Bend, Gresham and Salem, Ore.; and Wichita Falls, Texas.
Currently, in all, Natural Grocers has more than 65 stores in 13 states.