Natural Grocers by Vitamin Cottage announces 2018 fourth quarter results

FINANCIAL RELEASE — Natural Grocers by Vitamin Cottage, Inc., 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.

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