Company: NGVC
Filing Date: 2025-02-06
Form Type: 10-Q
Source: 0001437749-25-003026
Chunk: 33

Company: Natural Grocers by Vitamin Cottage, Inc.
Filing Date: 2025-02-06
Form: 10-Q
Item: Part I, Item 1
Chunk 33
---
 the three months ended December 31, 2023. The increase in store expenses was primarily driven by higher compensation expenses. Store expenses as a percentage of net sales were 22.3% and 22.5% for the three months ended December 31, 2024 and 2023, respectively. The decrease in store expenses as a percentage of net sales reflects expense leverage.

Administrative expenses

Administrative expenses increased $2.1 million, or 22.4%, to $11.5 million for the three months ended December 31, 2024 compared to $9.4 million for the three months ended December 31, 2023. The increase in administrative expenses was driven by higher compensation expenses, including costs related to our Chief Financial Officer transition, and technology expenses. Administrative expenses as a percentage of net sales were 3.5% and 3.1% for the three months ended December 31, 2024 and 2023, respectively.

Pre-opening expenses

Pre-opening expenses were $0.4 million and $0.5 million for the three months ended December 31, 2024 and 2023, respectively.

Interest expense, net

Interest expense, net of capitalized interest, was $0.9 million for each of the three months ended December 31, 2024 and 2023.

Income taxes

Income tax expense increased $0.3 million for the three months ended December 31, 2024 to $2.5 million compared to $2.2 million for the three months ended December 31, 2023. The Company’s effective income tax rate was approximately 20.0% and 21.7% for the three months ended December 31, 2024 and 2023, respectively.

Net income

Net income was $9.9 million, or $0.43 diluted earnings per share, for the three months ended December 31, 2024 compared to $7.8 million, or $0.34 diluted earnings per share, for the three months ended December 31, 2023.

22

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