Company: NGVC
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001437749-25-015486
Chunk: 91

Company: Natural Grocers by Vitamin Cottage, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 91
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Interest expense, net of capitalized interest, was $1.7 million for the six months ended March 31, 2025 compared to $2.1 million for the six months ended March 31, 2024.

Income taxes

Income tax expense increased $1.9 million for the six months ended March 31, 2025 to $6.2 million compared to $4.3 million for the six months ended March 31, 2024. The Company’s effective income tax rate was 21.2% and 21.4% for the six months ended March 31, 2025 and 2024, respectively.

Net income

Net income was $23.0 million, or $0.99 diluted earnings per share, for the six months ended March 31, 2025 compared to $15.7 million, or $0.68 diluted earnings per share, for the six months ended March 31, 2024.

Non-GAAP financial measures

EBITDA and Adjusted EBITDA

EBITDA and Adjusted EBITDA are not measures of financial performance under GAAP. We define EBITDA as net income before interest expense, provision for income taxes, depreciation and amortization. We define Adjusted EBITDA as EBITDA as adjusted to exclude the effects of certain income and expense items that management believes make it more difficult to assess the Company’s actual operating performance, including certain items such as impairment charges, store closing costs, share-based compensation, amortization of software hosting arrangement (SaaS) implementation costs and non-recurring items.

The following table reconciles net income to EBITDA and Adjusted EBITDA, dollars in thousands:

			Three months ended
			March 31,

			Six months ended
			March 31,

			2025

			2024

			2025

			2024

			Net income

			$
			13,101

			7,961

			23,039

			15,716

			Interest expense, net

			750

			1,177

			1,673

			2,071

			Provision for income taxes

			3,702

			2,123

			6,189

			4,277

			Depreciation and amortization

			7,888

			7,702

			15