Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Mar. 31, 2019 | Apr. 29, 2019 | |
Document Information [Line Items] | ||
Entity Registrant Name | Natural Grocers by Vitamin Cottage, Inc. | |
Entity Central Index Key | 0001547459 | |
Trading Symbol | ngvc | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding (in shares) | 22,438,589 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Mar. 31, 2019 | Sep. 30, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 11,283 | $ 9,398 |
Accounts receivable, net | 4,501 | 4,738 |
Merchandise inventory | 95,335 | 94,228 |
Prepaid expenses and other current assets | 2,544 | 2,590 |
Total current assets | 113,663 | 110,954 |
Property and equipment, net | 191,439 | 188,768 |
Other assets: | ||
Deposits and other assets | 1,671 | 1,682 |
Goodwill and other intangible assets, net | 6,464 | 5,648 |
Deferred financing costs, net | 24 | 31 |
Total other assets | 8,159 | 7,361 |
Total assets | 313,261 | 307,083 |
Current liabilities: | ||
Accounts payable | 61,547 | 61,104 |
Accrued expenses | 17,325 | 17,851 |
Capital and financing lease obligations, current portion | 843 | 736 |
Total current liabilities | 79,715 | 79,691 |
Long-term liabilities: | ||
Capital and financing lease obligations, net of current portion | 44,780 | 40,406 |
Revolving credit facility | 10,192 | 13,192 |
Deferred income tax liabilities, net | 5,901 | 6,447 |
Deferred compensation | 688 | |
Deferred rent | 11,175 | 11,038 |
Leasehold incentives | 8,317 | 8,895 |
Total long-term liabilities | 80,365 | 80,666 |
Total liabilities | 160,080 | 160,357 |
Commitments (Notes 7 and 13) | ||
Stockholders’ equity: | ||
Common stock, $0.001 par value, 50,000,000 shares authorized, 22,510,279 shares issued at March 31, 2019 and September 30, 2018 and 22,431,553 and 22,373,382 outstanding at March 31, 2019 and September 30, 2018, respectively | 23 | 23 |
Additional paid-in capital | 56,192 | 56,236 |
Retained earnings | 97,564 | 91,507 |
Common stock in treasury at cost, 78,726 and 136,897 shares, at March 31, 2019 and September 30, 2018, respectively | (598) | (1,040) |
Total stockholders’ equity | 153,181 | 146,726 |
Total liabilities and stockholders’ equity | $ 313,261 | $ 307,083 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Mar. 31, 2019 | Sep. 30, 2018 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 22,510,279 | 22,510,279 |
Common stock, shares outstanding (in shares) | 22,431,553 | 22,373,382 |
Treasury stock, shares (in shares) | 78,726 | 136,897 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Net sales | $ 230,447 | $ 215,911 | $ 451,962 | $ 418,391 |
Cost of goods sold and occupancy costs | 168,233 | 157,630 | 330,602 | 306,951 |
Gross profit | 62,214 | 58,281 | 121,360 | 111,440 |
Store expenses | 50,175 | 46,480 | 99,298 | 91,646 |
Administrative expenses | 5,761 | 5,458 | 11,076 | 10,715 |
Pre-opening and relocation expenses | 157 | 697 | 829 | 1,240 |
Operating income | 6,121 | 5,646 | 10,157 | 7,839 |
Interest expense, net | (1,280) | (1,122) | (2,535) | (2,211) |
Income before income taxes | 4,841 | 4,524 | 7,622 | 5,628 |
(Provision for) benefit from income taxes | (981) | (1,120) | (1,565) | 2,957 |
Net income | $ 3,860 | $ 3,404 | $ 6,057 | $ 8,585 |
Net income per common share: | ||||
Basic (in dollars per share) | $ 0.17 | $ 0.15 | $ 0.27 | $ 0.38 |
Diluted (in dollars per share) | $ 0.17 | $ 0.15 | $ 0.27 | $ 0.38 |
Weighted average number of shares of common stock outstanding: | ||||
Basic (in shares) | 22,413,055 | 22,353,993 | 22,399,665 | 22,356,943 |
Diluted (in shares) | 22,561,825 | 22,444,808 | 22,579,733 | 22,419,056 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Operating activities: | |||
Net income | $ 6,057 | $ 8,585 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization expense | 14,576 | 14,825 | |
Gain on disposal of property and equipment | (165) | (28) | |
Share-based compensation | 663 | 362 | |
Deferred income tax benefit | (546) | (4,171) | |
Non-cash interest expense | 6 | 6 | |
Changes in operating assets and liabilities | |||
Accounts receivable, net | 254 | (832) | |
Merchandise inventory | (1,107) | (3,261) | |
Prepaid expenses and other assets(1) | [1] | 97 | (635) |
Income tax receivable(1) | [1] | (65) | 1,082 |
Accounts payable | 4,469 | 4,181 | |
Accrued expenses | (517) | 1,276 | |
Deferred compensation | (688) | (566) | |
Deferred rent and leasehold incentives | (441) | 914 | |
Net cash provided by operating activities | 22,593 | 21,738 | |
Investing activities: | |||
Acquisition of property and equipment(1) | [1] | (17,644) | (10,530) |
Acquisition of other intangibles(1) | [1] | (251) | (29) |
Proceeds from sale of property and equipment | 792 | 34 | |
Proceeds from property insurance settlements | 22 | ||
Net cash used in investing activities | (17,081) | (10,525) | |
Financing activities: | |||
Borrowings under credit facility | 185,200 | 176,000 | |
Repayments under credit facility | (188,200) | (184,800) | |
Capital and financing lease obligations payments | (362) | (271) | |
Repurchases of common stock | (581) | ||
Payments on withholding tax for restricted stock unit vesting | (265) | (11) | |
Net cash used in financing activities | (3,627) | (9,663) | |
Net increase in cash and cash equivalents | 1,885 | 1,550 | |
Cash and cash equivalents, beginning of period | 9,398 | 6,521 | |
Cash and cash equivalents, end of period | 11,283 | 8,071 | |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 439 | 431 | |
Cash paid for interest on capital and financing lease obligations, net of capitalized interest of $59 and $49, respectively | 2,087 | 1,748 | |
Income taxes paid | 2,962 | 90 | |
Deferred compensation paid | 700 | 700 | |
Supplemental disclosures of non-cash investing and financing activities: | |||
Acquisition of property and equipment not yet paid | 1,228 | 2,377 | |
Property acquired through capital and financing lease obligations | $ 4,842 | $ 4,428 | |
[1] | Certain prior year amounts have been separated for consistency with current year presentation. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Unaudited) (Parentheticals) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Capitalized interest | $ 59 | $ 25 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock Outstanding [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total |
Balance (in shares) at Sep. 30, 2017 | 22,448,056 | |||||
Balance at Sep. 30, 2017 | $ 23 | $ 55,678 | $ 78,846 | $ (664) | $ 133,883 | |
Net income | 5,181 | 5,181 | ||||
Share-based compensation (in shares) | 1,226 | |||||
Share-based compensation | 147 | 9 | 156 | |||
Repurchase of common stock (in shares) | (101,573) | |||||
Repurchase of common stock | (581) | (581) | ||||
Balance (in shares) at Dec. 31, 2017 | 22,347,709 | |||||
Balance at Dec. 31, 2017 | 23 | 55,825 | 84,027 | (1,236) | 138,639 | |
Balance (in shares) at Sep. 30, 2017 | 22,448,056 | |||||
Balance at Sep. 30, 2017 | 23 | 55,678 | 78,846 | (664) | 133,883 | |
Net income | 8,585 | |||||
Repurchase of common stock (in shares) | (101,573) | |||||
Balance (in shares) at Mar. 31, 2018 | 22,364,280 | |||||
Balance at Mar. 31, 2018 | 23 | 55,894 | 87,431 | (1,109) | 142,239 | |
Balance (in shares) at Dec. 31, 2017 | 22,347,709 | |||||
Balance at Dec. 31, 2017 | 23 | 55,825 | 84,027 | (1,236) | 138,639 | |
Net income | 3,404 | 3,404 | ||||
Share-based compensation (in shares) | 16,571 | |||||
Share-based compensation | 69 | 127 | 196 | |||
Repurchase of common stock (in shares) | ||||||
Repurchase of common stock | ||||||
Balance (in shares) at Mar. 31, 2018 | 22,364,280 | |||||
Balance at Mar. 31, 2018 | 23 | 55,894 | 87,431 | (1,109) | 142,239 | |
Balance (in shares) at Sep. 30, 2018 | 22,373,382 | |||||
Balance at Sep. 30, 2018 | 23 | 56,236 | 91,507 | (1,040) | 146,726 | |
Net income | 2,197 | 2,197 | ||||
Share-based compensation (in shares) | 18,928 | |||||
Share-based compensation | 101 | 144 | 245 | |||
Balance (in shares) at Dec. 31, 2018 | 22,392,310 | |||||
Balance at Dec. 31, 2018 | 23 | 56,337 | 93,704 | (896) | 149,168 | |
Balance (in shares) at Sep. 30, 2018 | 22,373,382 | |||||
Balance at Sep. 30, 2018 | 23 | 56,236 | 91,507 | (1,040) | 146,726 | |
Net income | $ 6,057 | |||||
Repurchase of common stock (in shares) | 0 | |||||
Balance (in shares) at Mar. 31, 2019 | 22,431,553 | |||||
Balance at Mar. 31, 2019 | 23 | 56,192 | 97,564 | (598) | $ 153,181 | |
Balance (in shares) at Dec. 31, 2018 | 22,392,310 | |||||
Balance at Dec. 31, 2018 | 23 | 56,337 | 93,704 | (896) | 149,168 | |
Net income | 3,860 | 3,860 | ||||
Share-based compensation (in shares) | 39,243 | |||||
Share-based compensation | (145) | 298 | 153 | |||
Balance (in shares) at Mar. 31, 2019 | 22,431,553 | |||||
Balance at Mar. 31, 2019 | $ 23 | $ 56,192 | $ 97,564 | $ (598) | $ 153,181 |
Note 1 - Organization
Note 1 - Organization | 6 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Nature of Operations [Text Block] | 1. Organization Nature of Business Natural Grocers by Vitamin Cottage, Inc. (Natural Grocers or the holding company) and its consolidated subsidiaries (collectively, the Company) operate retail stores that specialize in natural and organic groceries and dietary supplements. The Company operates its retail stores under its trademark Natural Grocers by Vitamin Cottage March 31, 2019, 152 19 148 19 September 30, 2018. |
Note 2 - Basis of Presentation
Note 2 - Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Basis of Presentation and Significant Accounting Policies [Text Block] | 2. Consolidated Financial Statements The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial statements and are in the form prescribed by Article 10 X. not 10 7 10 not September 30. The accompanying unaudited consolidated financial statements include all the accounts of the holding company’s wholly owned subsidiaries, Vitamin Cottage Natural Food Markets, Inc. (the operating company) and Vitamin Cottage Two Ltd. Liability Company ( VC2 The Company has one three six March 31, 2019 2018, Three months ended March 31, Six months ended March 31, 2019 2018 2019 2018 Grocery 68 % 67 68 67 Dietary supplements 22 23 21 22 Other 10 10 11 11 100 % 100 100 100 Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities (including the fair value of assets acquired and liabilities assumed in a business combination), the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management reviews its estimates on an ongoing basis, including those related to: allowances for self-insurance reserves; valuation of inventories; useful lives of property and equipment for depreciation and amortization; impairment of finite-lived intangible assets, long-lived assets, and goodwill; lease assumptions; and litigation based on currently available information. Changes in facts and circumstances may U.S. Tax Reform On December 22, 2017, January 1, 2018. 21.0% September 30, 2019. 24.3% September 30, 2018. $4.3 six March 31, 2018 September 30, 2018. Recently Adopted Accounting Pronouncements In May 2014, 2014 09, 606, 2014 09 2014 09 2014 09’s October 1, 2018, - ASU 2016 09, one - ASU 2016 12, - ASU 2016 20, not one Updated accounting policies and other disclosures are discussed below in Recent Accounting Pronouncements 2. 2014 09 not three six March 31, 2019. Recent Accounting Pronouncements In January 2017, 2017 04, 350, 2017 04 2017 04 first two not January 1, 2017, first September 30, 2020. In February 2016, 2016 02, 842, 2016 02 No. 2016 02 12 2016 02 2016 02 first September 30, 2020, 2016 02 2018 11, 842, July 2018. The adoption of ASU 2016 02 2016 02 In January 2018, 2018 01, 842, 842” 2018 01 2018 01 not 842, not 840. 2016 02. In June 2018, 2018 07, 718, 2018 07 2018 07 718 2018 07 first September 30, 2020, not |
Note 3 - Revenue Recognition
Note 3 - Revenue Recognition | 6 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | 3. Revenue Recognition The nature of the goods the Company transfers to customers at the point of sale consists of merchandise purchased for resale. In these transactions, the Company acts as a principal and recognizes revenue (“net sales”) from the sale of goods when control of the promised goods is transferred to the customer. Control refers to the ability of the customer to direct the use of, and obtain substantially all the remaining benefits from, the transferred goods. The Company’s performance obligations are satisfied upon the transfer of goods to the customer (at the point of sale), and payment from the customer is also due at that time. Transaction prices are considered fixed. Discounts provided to customers at the point of sale are recognized as a reduction in revenue as the goods are sold. Revenue excludes sales and usage-based taxes collected. Proceeds from the sale of gift cards are recorded as a liability at the time of sale and recognized as revenue when the gift cards are redeemed by the customer and the performance obligation is satisfied by the Company. The Company also recognizes revenue for a portion of gift card values that is not not As of each of March 31, 2019 September 30, 2018, $1.0 three March 31, 2019 $0.2 September 30, 2018. six March 31, 2019 $0.5 September 30, 2018. The following table disaggregates our revenue by product category for the three six March 31, 2019 2018, Three months ended March 31, Six months ended March 31, 2019 2018 2019 2018 Grocery $ 157,802 144,467 309,103 280,568 Dietary supplements 49,700 48,830 95,484 92,395 Other 22,945 22,614 47,375 45,428 $ 230,447 215,911 451,962 418,391 |
Note 4 - Earnings Per Share
Note 4 - Earnings Per Share | 6 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 4 . Earnings Per Share Basic earnings per share (EPS) is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted EPS reflects the potential dilution that could occur if the Company’s granted but unvested restricted stock units (RSUs) were to vest, resulting in the issuance of common stock that would then share in the Company’s earnings. Presented below are basic and diluted EPS for the three six March 31, 2019 2018, Three months ended Six months ended 201 9 201 8 201 9 201 8 Net income $ 3,860 3,404 6,057 8,585 Weighted average number of shares of common stock outstanding 22,413,055 22,353,993 22,399,665 22,356,943 Effect of dilutive securities 148,770 90,815 180,068 62,113 Weighted average number of shares of common stock outstanding including effect of dilutive securities 22,561,825 22,444,808 22,579,733 22,419,056 Basic earnings per share $ 0.17 0.15 0.27 0.38 Diluted earnings per share $ 0.17 0.15 0.27 0.38 There were 72,599 27,574 three six March 31, 2019, 75,169 172,356 three six March 31, 2018, The Company did not three six March 31, 2019 2018. |
Note 5 - Debt
Note 5 - Debt | 6 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Debt and Capital Leases Disclosures [Text Block] | 5 . Debt Credit Facility On January 28, 2016, VC2. $50.0 $5.0 January 31, 2021. The Credit Facility requires compliance with certain customary operational and financial covenants, including a leverage ratio. The Credit Facility also contains certain other customary limitations on the Company’s ability to incur additional debt, guarantee other obligations, grant liens on assets and make investments or acquisitions, among other limitations. Additionally, the Credit Facility prohibits the payment of cash dividends to the holding company from the operating company without the administrative agent’s consent, except when no no not $10.0 The Company had $10.2 $13.2 March 31, 2019 September 30, 2018, March 31, 2019 September 30, 2018, $1.0 $38.8 $35.8 March 31, 2019 September 30, 2018, As of March 31, 2019 September 30, 2018, Capital and Financing Lease Obligations The Company had 21 20 March 31, 2019 September 30, 2018, 7 No Interest The Company incurred gross interest expense of approximately $1.3 $1.1 three March 31, 2019 2018, $2.6 $2.3 six March 31, 2019 2018, three six March 31, 2019 2018 $ 0.1 three March 31, 2019 2018, $0.1 $0.1 six March 31, 2019 2018, |
Note 6 - Stockholders' Equity
Note 6 - Stockholders' Equity | 6 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 6 . S tock holders’ Equity Share Repurchases On May 4, 2016, two may $10.0 May 2, 2018, two May 4, 2020. 10b 18 1934, may 10b5 1 not may Prior to October 1, 2018, 199,543 not six March 31, 2019. six March 31, 2018, 101,573 may $8.3 Prior to October 1, 2018, 62,646 $0.6 three six March 31, 2019, 39,243 $0.3 58,171 $0.4 three six March 31, 2018, 16,571 17,797 $ 0.1 March 31, 2019 September 30, 2018, 78,726 136,897 $0.6 $1.0 |
Note 7 - Lease Commitments
Note 7 - Lease Commitments | 6 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Leases of Lessee Disclosure [Text Block] | 7 . Lease Commitments Capital and financing lease obligations as of March 31, 2019 September 30, 2018, As of March 31 , 201 9 September 30, 201 8 Capital lease finance obligations, due in monthly installments through fiscal year 2033 $ 34,992 32,523 Capital lease obligations, due in monthly installments through fiscal year 2041 6,126 4,763 Capital lease finance obligations for assets under construction, due in monthly installments through fiscal year 2034 4,505 2,350 Capital lease obligations for assets under construction, due in monthly installments through fiscal year 2034 — 1,506 Total capital and financing lease obligations 45,623 41,142 Less current portion (843 ) (736 ) Total capital and financing lease obligations, net of current portion $ 44,780 40,406 |
Note 8 - Property and Equipment
Note 8 - Property and Equipment | 6 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 8 . Property and Equipment The Company had the following property and equipment balances as of March 31, 2019 September 30, 2018, As of Useful lives (in years) March 31 , 201 9 September 30, 201 8 Construction in process n/a $ 7,986 15,879 Capitalized real estate leases for build-to-suit stores, including unamortized land of $617 and $617, respectively 40 37,970 35,700 Capitalized real estate leases 15 7,241 5,735 Land n/a 1,230 192 Buildings 40 23,481 19,262 Land improvements 5 – 24 1,335 1,016 Leasehold and building improvements 1 – 25 139,312 131,474 Fixtures and equipment 5 – 7 128,610 122,984 Computer hardware and software 3 – 5 20,401 21,181 367,566 353,423 Less accumulated depreciation and amortization (176,127 ) (164,655 ) Property and equipment, net $ 191,439 188,768 Capitalized real estate leases for build-to-suit stores includes the assets for the Company’s buildings under capital lease finance obligations, and capitalized real estate leases includes assets for the Company’s buildings under capital lease obligations (see Note 7 Depreciation and amortization expense for the three six March 31, 2019 2018 Three months ended Six months ended 2019 2018 2019 2018 Depreciation and amortization expense included in cost of goods sold and occupancy costs $ 185 196 367 392 Depreciation and amortization expense included in store expenses 6,848 6,835 13,690 13,685 Depreciation and amortization expense included in administrative expenses 257 379 519 748 Total depreciation and amortization expense $ 7,290 7,410 14,576 14,825 |
Note 9 - Goodwill and Other Int
Note 9 - Goodwill and Other Intangible Assets | 6 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 9 . Goodwill and Other Intangible Assets The Company had the following goodwill and other intangible asset balances as of March 31, 2019 September 30, 2018, Useful lives As of (in years) March 31 , 201 9 September 30, 2018 Amortizable intangible assets: Other intangibles 0.5 - 3 $ 2,197 138 Amortizable intangible assets 2,197 138 Less accumulated amortization (1,320 ) (77 ) Amortizable intangible assets, net 877 61 Trademark Indefinite 389 389 Total other intangibles, net 1,266 450 Goodwill Indefinite 5,198 5,198 Total goodwill and other intangibles, net $ 6,464 5,648 |
Note 10 - Accrued Expenses
Note 10 - Accrued Expenses | 6 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 10 . Accrued Expenses The composition of accrued expenses as of March 31, 2019 September 30, 2018 As of March 31 , September 30, 201 9 201 8 Accrued property, sales and use tax payable $ 6,361 7,043 Income tax payable 102 903 Payroll and employee-related expenses 7,683 6,992 Accrued marketing expenses 591 335 Deferred revenue related to gift card sales 1,361 1,453 Other 1,227 1,125 Total accrued expenses $ 17,325 17,851 |
Note 11 - Income Taxes
Note 11 - Income Taxes | 6 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 1 1 . Income Taxes Income taxes are accounted for in accordance with the provisions of ASC 740. Remeasurement of the Company’s deferred tax balance as a result of the Tax Reform Act resulted in a non-cash tax benefit of approximately $4.3 six March 31, 2018. |
Note 12 - Related Party Transac
Note 12 - Related Party Transactions | 6 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 1 2 . Related Party Transactions The Company has ongoing relationships with related entities as noted below: Chalet Properties, LLC: five one four $ 0.3 three March 31, 2019 2018. $0.6 six March 31, 2019 2018. Isely Family Land Trust LLC: one $0.1 three March 31, 2019 2018. $ 0.2 six March 31, 2019 2018. FTVC LLC: one four $0.1 three March 31, 2019 2018. $0.1 six March 31, 2019 2018. |
Note 13 - Commitments and Conti
Note 13 - Commitments and Contingencies | 6 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 1 3 . Commitments and Contingencies The Company is periodically involved in various legal proceedings that are incidental to the conduct of its business, including but not may not |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Consolidated Financial Statements The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial statements and are in the form prescribed by Article 10 X. not 10 7 10 not September 30. The accompanying unaudited consolidated financial statements include all the accounts of the holding company’s wholly owned subsidiaries, Vitamin Cottage Natural Food Markets, Inc. (the operating company) and Vitamin Cottage Two Ltd. Liability Company ( VC2 The Company has one three six March 31, 2019 2018, Three months ended March 31, Six months ended March 31, 2019 2018 2019 2018 Grocery 68 % 67 68 67 Dietary supplements 22 23 21 22 Other 10 10 11 11 100 % 100 100 100 |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities (including the fair value of assets acquired and liabilities assumed in a business combination), the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management reviews its estimates on an ongoing basis, including those related to: allowances for self-insurance reserves; valuation of inventories; useful lives of property and equipment for depreciation and amortization; impairment of finite-lived intangible assets, long-lived assets, and goodwill; lease assumptions; and litigation based on currently available information. Changes in facts and circumstances may |
Income Tax, Policy [Policy Text Block] | U.S. Tax Reform On December 22, 2017, January 1, 2018. 21.0% September 30, 2019. 24.3% September 30, 2018. $4.3 six March 31, 2018 September 30, 2018. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Pronouncements In May 2014, 2014 09, 606, 2014 09 2014 09 2014 09’s October 1, 2018, - ASU 2016 09, one - ASU 2016 12, - ASU 2016 20, not one Updated accounting policies and other disclosures are discussed below in Recent Accounting Pronouncements 2. 2014 09 not three six March 31, 2019. Recent Accounting Pronouncements In January 2017, 2017 04, 350, 2017 04 2017 04 first two not January 1, 2017, first September 30, 2020. In February 2016, 2016 02, 842, 2016 02 No. 2016 02 12 2016 02 2016 02 first September 30, 2020, 2016 02 2018 11, 842, July 2018. The adoption of ASU 2016 02 2016 02 In January 2018, 2018 01, 842, 842” 2018 01 2018 01 not 842, not 840. 2016 02. In June 2018, 2018 07, 718, 2018 07 2018 07 718 2018 07 first September 30, 2020, not |
Note 2 - Basis of Presentatio_2
Note 2 - Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Notes Tables | |
Schedule of Product Information [Table Text Block] | Three months ended March 31, Six months ended March 31, 2019 2018 2019 2018 Grocery 68 % 67 68 67 Dietary supplements 22 23 21 22 Other 10 10 11 11 100 % 100 100 100 |
Note 3 - Revenue Recognition (T
Note 3 - Revenue Recognition (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three months ended March 31, Six months ended March 31, 2019 2018 2019 2018 Grocery $ 157,802 144,467 309,103 280,568 Dietary supplements 49,700 48,830 95,484 92,395 Other 22,945 22,614 47,375 45,428 $ 230,447 215,911 451,962 418,391 |
Note 4 - Earnings Per Share (Ta
Note 4 - Earnings Per Share (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three months ended Six months ended 201 9 201 8 201 9 201 8 Net income $ 3,860 3,404 6,057 8,585 Weighted average number of shares of common stock outstanding 22,413,055 22,353,993 22,399,665 22,356,943 Effect of dilutive securities 148,770 90,815 180,068 62,113 Weighted average number of shares of common stock outstanding including effect of dilutive securities 22,561,825 22,444,808 22,579,733 22,419,056 Basic earnings per share $ 0.17 0.15 0.27 0.38 Diluted earnings per share $ 0.17 0.15 0.27 0.38 |
Note 7 - Lease Commitments (Tab
Note 7 - Lease Commitments (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | As of March 31 , 201 9 September 30, 201 8 Capital lease finance obligations, due in monthly installments through fiscal year 2033 $ 34,992 32,523 Capital lease obligations, due in monthly installments through fiscal year 2041 6,126 4,763 Capital lease finance obligations for assets under construction, due in monthly installments through fiscal year 2034 4,505 2,350 Capital lease obligations for assets under construction, due in monthly installments through fiscal year 2034 — 1,506 Total capital and financing lease obligations 45,623 41,142 Less current portion (843 ) (736 ) Total capital and financing lease obligations, net of current portion $ 44,780 40,406 |
Note 8 - Property and Equipme_2
Note 8 - Property and Equipment (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | As of Useful lives (in years) March 31 , 201 9 September 30, 201 8 Construction in process n/a $ 7,986 15,879 Capitalized real estate leases for build-to-suit stores, including unamortized land of $617 and $617, respectively 40 37,970 35,700 Capitalized real estate leases 15 7,241 5,735 Land n/a 1,230 192 Buildings 40 23,481 19,262 Land improvements 5 – 24 1,335 1,016 Leasehold and building improvements 1 – 25 139,312 131,474 Fixtures and equipment 5 – 7 128,610 122,984 Computer hardware and software 3 – 5 20,401 21,181 367,566 353,423 Less accumulated depreciation and amortization (176,127 ) (164,655 ) Property and equipment, net $ 191,439 188,768 |
Depreciation and Amortization Expense [Table Text Block] | Three months ended Six months ended 2019 2018 2019 2018 Depreciation and amortization expense included in cost of goods sold and occupancy costs $ 185 196 367 392 Depreciation and amortization expense included in store expenses 6,848 6,835 13,690 13,685 Depreciation and amortization expense included in administrative expenses 257 379 519 748 Total depreciation and amortization expense $ 7,290 7,410 14,576 14,825 |
Note 9 - Goodwill and Other I_2
Note 9 - Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Notes Tables | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | Useful lives As of (in years) March 31 , 201 9 September 30, 2018 Amortizable intangible assets: Other intangibles 0.5 - 3 $ 2,197 138 Amortizable intangible assets 2,197 138 Less accumulated amortization (1,320 ) (77 ) Amortizable intangible assets, net 877 61 Trademark Indefinite 389 389 Total other intangibles, net 1,266 450 Goodwill Indefinite 5,198 5,198 Total goodwill and other intangibles, net $ 6,464 5,648 |
Note 10 - Accrued Expenses (Tab
Note 10 - Accrued Expenses (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | As of March 31 , September 30, 201 9 201 8 Accrued property, sales and use tax payable $ 6,361 7,043 Income tax payable 102 903 Payroll and employee-related expenses 7,683 6,992 Accrued marketing expenses 591 335 Deferred revenue related to gift card sales 1,361 1,453 Other 1,227 1,125 Total accrued expenses $ 17,325 17,851 |
Note 1 - Organization (Details
Note 1 - Organization (Details Textual) | Mar. 31, 2019 | Sep. 30, 2018 |
Number of Stores | 152 | 148 |
Number of States in which Entity Operates | 19 | 19 |
Note 2 - Basis of Presentatio_3
Note 2 - Basis of Presentation and Summary of Significant Accounting Policies (Details Textual) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018USD ($) | Sep. 30, 2019 | Sep. 30, 2018USD ($) | |
Number of Reportable Segments | 1 | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 24.30% | |||
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ (4.3) | $ (4.3) | ||
Forecast [Member] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% |
Note 2 - Basis of Presentatio_4
Note 2 - Basis of Presentation and Summary of Significant Accounting Policies - Sales From Natural and Organic Retail Stores (Details) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Sales percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Grocery [Member] | ||||
Sales percentage | 68.00% | 67.00% | 68.00% | 67.00% |
Dietary Supplements [Member] | ||||
Sales percentage | 22.00% | 23.00% | 21.00% | 22.00% |
Other [Member] | ||||
Sales percentage | 10.00% | 10.00% | 11.00% | 11.00% |
Note 3 - Revenue Recognition (D
Note 3 - Revenue Recognition (Details Textual) - Gift Cards [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | |
Contract with Customer, Liability, Total | $ 1 | $ 1 | $ 1 |
Contract with Customer, Liability, Revenue Recognized | $ 0.2 | $ 0.5 |
Note 3 - Revenue Recognition -
Note 3 - Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Net sales | $ 230,447 | $ 215,911 | $ 451,962 | $ 418,391 |
Grocery [Member] | ||||
Net sales | 157,802 | 144,467 | 309,103 | 280,568 |
Dietary Supplements [Member] | ||||
Net sales | 49,700 | 48,830 | 95,484 | 92,395 |
Manufactured Product, Other [Member] | ||||
Net sales | $ 22,945 | $ 22,614 | $ 47,375 | $ 45,428 |
Note 4 - Earnings Per Share (De
Note 4 - Earnings Per Share (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Dividends, Total | $ 0 | $ 0 | $ 0 | $ 0 |
Restricted Stock Units (RSUs) [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 72,599 | 75,169 | 27,574 | 172,356 |
Note 4 - Earnings Per Share - B
Note 4 - Earnings Per Share - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Net income | $ 3,860 | $ 3,404 | $ 6,057 | $ 8,585 |
Weighted average number of shares of common stock outstanding (in shares) | 22,413,055 | 22,353,993 | 22,399,665 | 22,356,943 |
Effect of dilutive securities (in shares) | 148,770 | 90,815 | 180,068 | 62,113 |
Weighted average number of shares of common stock outstanding including effect of dilutive securities (in shares) | 22,561,825 | 22,444,808 | 22,579,733 | 22,419,056 |
Basic earnings per share (in dollars per share) | $ 0.17 | $ 0.15 | $ 0.27 | $ 0.38 |
Diluted earnings per share (in dollars per share) | $ 0.17 | $ 0.15 | $ 0.27 | $ 0.38 |
Note 5 - Debt (Details Textual)
Note 5 - Debt (Details Textual) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jan. 28, 2016USD ($) | |
Capital and Financing Lease Obligations Number of Leases | 21 | 21 | 20 | |||
Interest Expense, Debt, Excluding Amortization | $ 1.3 | $ 1.1 | $ 2.6 | $ 2.3 | ||
Interest Costs Capitalized | 0.1 | $ 0.1 | 0.1 | $ 0.1 | ||
Letter of Credit [Member] | ||||||
Letters of Credit Outstanding, Amount | 1 | 1 | $ 1 | |||
The New Credit Facility [Member] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50 | |||||
Line of Credit Facility, Dividend Restrictions, Maximum Amount | 10 | |||||
Long-term Line of Credit, Total | 10.2 | 10.2 | 13.2 | |||
Line of Credit Facility, Remaining Borrowing Capacity | $ 38.8 | $ 38.8 | $ 35.8 | |||
The New Credit Facility [Member] | Standby Letters of Credit [Member] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5 |
Note 6 - Stockholders' Equity (
Note 6 - Stockholders' Equity (Details Textual) - USD ($) $ in Thousands | May 02, 2018 | May 04, 2016 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2018 |
Stock Repurchase Program, Period in Force | 2 years | 2 years | |||||||
Stock Repurchase Program, Authorized Amount | $ 10,000 | ||||||||
Treasury Stock, Shares, Acquired | 0 | 199,543 | |||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 8,300 | $ 8,300 | |||||||
Stock Issued During Period, Shares, Treasury Stock Reissued for Equity-based Compensation Obligations | 39,243 | 16,571 | 58,171 | 17,797 | 62,646 | ||||
Stock Issued During Period, Value, Treasury Stock Reissued for Equity-based Compensation Obligations | $ 300 | $ 100 | $ 400 | $ 100 | $ 600 | ||||
Treasury Stock, Shares, Ending Balance | 78,726 | 78,726 | 136,897 | 136,897 | |||||
Treasury Stock, Value, Ending Balance | $ 598 | $ 598 | $ 1,040 | $ 1,040 | |||||
Common Stock Outstanding [Member] | |||||||||
Treasury Stock, Shares, Acquired | 101,573 | 101,573 |
Note 7 - Lease Commitments - Ca
Note 7 - Lease Commitments - Capital and Financing Lease Obligations (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Sep. 30, 2018 |
Total capital and financing lease obligations | $ 45,623 | $ 41,142 |
Less current portion | (843) | (736) |
Total capital and financing lease obligations, net of current portion | 44,780 | 40,406 |
Due in Monthly Installments Through Fiscal Year 2033 [Member] | ||
Capital lease finance obligations | 34,992 | 32,523 |
Asset not under Construction, Due in Monthly Installments Through Fiscal Year 2041 [Member] | ||
Capital lease finance obligations | 6,126 | 4,763 |
Asset under Construction Due in Monthly Installments Through Fiscal Year 2033 [Member] | ||
Capital lease finance obligations | 4,505 | 2,350 |
Asset under Construction Due in Monthly Installments Through Fiscal Year 2034 [Member] | ||
Capital lease finance obligations | $ 1,506 |
Note 8 - Property and Equipme_3
Note 8 - Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2019 | Sep. 30, 2018 | |
Property, plant, and equipment, gross | $ 367,566 | $ 353,423 |
Less accumulated depreciation and amortization | (176,127) | (164,655) |
Property and equipment, net | 191,439 | 188,768 |
Construction in Progress [Member] | ||
Property, plant, and equipment, gross | 7,986 | 15,879 |
Assets Held Under Real Estate Leases for Build to Suit Stores [Member] | ||
Property, plant, and equipment, gross | $ 37,970 | 35,700 |
Useful life (Year) | 40 years | |
Assets Held under Capital Leases [Member] | ||
Property, plant, and equipment, gross | $ 7,241 | 5,735 |
Useful life (Year) | 15 years | |
Land [Member] | ||
Property, plant, and equipment, gross | $ 1,230 | 192 |
Building [Member] | ||
Property, plant, and equipment, gross | $ 23,481 | 19,262 |
Useful life (Year) | 40 years | |
Land Improvements [Member] | ||
Property, plant, and equipment, gross | $ 1,335 | 1,016 |
Land Improvements [Member] | Minimum [Member] | ||
Useful life (Year) | 5 years | |
Land Improvements [Member] | Maximum [Member] | ||
Useful life (Year) | 24 years | |
Leasehold and Building Improvements [Member] | ||
Property, plant, and equipment, gross | $ 139,312 | 131,474 |
Leasehold and Building Improvements [Member] | Minimum [Member] | ||
Useful life (Year) | 1 year | |
Leasehold and Building Improvements [Member] | Maximum [Member] | ||
Useful life (Year) | 25 years | |
Furniture and Fixtures [Member] | ||
Property, plant, and equipment, gross | $ 128,610 | 122,984 |
Furniture and Fixtures [Member] | Minimum [Member] | ||
Useful life (Year) | 5 years | |
Furniture and Fixtures [Member] | Maximum [Member] | ||
Useful life (Year) | 7 years | |
Computer Hardware and Software [Member] | ||
Property, plant, and equipment, gross | $ 20,401 | $ 21,181 |
Computer Hardware and Software [Member] | Minimum [Member] | ||
Useful life (Year) | 3 years | |
Computer Hardware and Software [Member] | Maximum [Member] | ||
Useful life (Year) | 5 years |
Note 8 - Property and Equipme_4
Note 8 - Property and Equipment - Schedule of Property and Equipment (Details) (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2019 | Sep. 30, 2018 |
Property, plant, and equipment, gross | $ 367,566 | $ 353,423 |
Unamortized Land [Member] | ||
Property, plant, and equipment, gross | $ 617 | $ 617 |
Note 8 - Property and Equipme_5
Note 8 - Property and Equipment - Depreciation and Amortization Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Depreciation and amortization expense | $ 7,290 | $ 7,410 | $ 14,576 | $ 14,825 |
Cost of Sales [Member] | ||||
Depreciation and amortization expense | 185 | 196 | 367 | 392 |
Stores [Member] | ||||
Depreciation and amortization expense | 6,848 | 6,835 | 13,690 | 13,685 |
General and Administrative Expense [Member] | ||||
Depreciation and amortization expense | $ 257 | $ 379 | $ 519 | $ 748 |
Note 9 - Goodwill and Other I_3
Note 9 - Goodwill and Other Intangible Assets - Summary of Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2019 | Sep. 30, 2018 | |
Amortizable intangible assets | $ 2,197 | $ 138 |
Less accumulated amortization | (1,320) | (77) |
Amortizable intangible assets, net | 877 | 61 |
Trademark | 389 | 389 |
Total other intangibles, net | 1,266 | 450 |
Goodwill | 5,198 | 5,198 |
Total goodwill and other intangibles, net | 6,464 | 5,648 |
Other Intangible Assets [Member] | ||
Amortizable intangible assets | $ 2,197 | $ 138 |
Other Intangible Assets [Member] | Minimum [Member] | ||
Intangible assets useful life (Year) | 182 days | |
Other Intangible Assets [Member] | Maximum [Member] | ||
Intangible assets useful life (Year) | 3 years |
Note 10 - Accrued Expenses - Co
Note 10 - Accrued Expenses - Composition of Accrued Expenses (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Sep. 30, 2018 |
Accrued property, sales and use tax payable | $ 6,361 | $ 7,043 |
Income tax payable | 102 | 903 |
Payroll and employee-related expenses | 7,683 | 6,992 |
Accrued marketing expenses | 591 | 335 |
Deferred revenue related to gift card sales | 1,361 | 1,453 |
Other | 1,227 | 1,125 |
Total accrued expenses | $ 17,325 | $ 17,851 |
Note 11 - Income Taxes (Details
Note 11 - Income Taxes (Details Textual) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Sep. 30, 2018 | |
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ (4.3) | $ (4.3) |
Note 12 - Related Party Trans_2
Note 12 - Related Party Transactions (Details Textual) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | |
Chalet [Member] | ||||
Number of Operating Leases | 5 | 5 | ||
Number of Capital Leases | 1 | 1 | ||
Related Party Transaction Number of Owners That Are Non-Independent Board Members of the Entity | 4 | |||
Related Party Transaction, Expenses from Transactions with Related Party | $ 0.3 | $ 0.3 | $ 0.6 | $ 0.6 |
Isely Family Land Trust LLC [Member] | ||||
Number of Operating Leases | 1 | 1 | ||
Related Party Transaction, Expenses from Transactions with Related Party | $ 0.1 | 0.1 | $ 0.2 | 0.2 |
FTVC, LLC [Member] | ||||
Number of Operating Leases | 1 | 1 | ||
Related Party Transaction Number of Owners That Are Non-Independent Board Members of the Entity | 4 | |||
FTVC, LLC [Member] | Maximum [Member] | ||||
Related Party Transaction, Expenses from Transactions with Related Party | $ 0.1 | $ 0.1 | $ 0.1 | $ 0.1 |