Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Dec. 31, 2023 | Feb. 05, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-35608 | |
Entity Registrant Name | Natural Grocers by Vitamin Cottage, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 45-5034161 | |
Entity Address, Address Line One | 12612 West Alameda Parkway | |
Entity Address, Postal Zip Code | 80228 | |
Entity Address, City or Town | Lakewood | |
Entity Address, State or Province | CO | |
City Area Code | 303 | |
Local Phone Number | 986-4600 | |
Title of 12(b) Security | Common Stock, $0.001 par value | |
Trading Symbol | NGVC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 22,752,413 | |
Entity Central Index Key | 0001547459 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | FY | |
Amendment Flag | false |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 13,620 | $ 18,342 |
Accounts receivable, net | 9,324 | 10,797 |
Merchandise inventory | 116,077 | 119,260 |
Prepaid expenses and other current assets | 4,238 | 4,151 |
Total current assets | 143,259 | 152,550 |
Property and equipment, net | 177,277 | 169,060 |
Other assets: | ||
Operating lease assets, net | 284,212 | 287,941 |
Finance lease assets, net | 43,980 | 45,110 |
Deposits and other assets | 377 | 395 |
Goodwill and other intangible assets, net | 14,052 | 14,129 |
Total other assets | 342,621 | 347,575 |
Total assets | 663,157 | 669,185 |
Current liabilities: | ||
Accounts payable | 81,587 | 80,675 |
Accrued expenses | 31,989 | 33,064 |
Term loan facility, current portion | 5,688 | 1,750 |
Operating lease obligations, current portion | 35,840 | 34,850 |
Finance lease obligations, current portion | 3,762 | 3,690 |
Total current liabilities | 158,866 | 154,029 |
Long-term liabilities: | ||
Term loan facility, net of current portion | 0 | 5,938 |
Revolving facility | 18,400 | 0 |
Operating lease obligations, net of current portion | 271,832 | 276,808 |
Finance lease obligations, net of current portion | 46,203 | 47,142 |
Deferred income tax liabilities, net | 13,996 | 14,427 |
Total long-term liabilities | 350,431 | 344,315 |
Total liabilities | 509,297 | 498,344 |
Commitments and Contingencies | ||
Stockholders’ equity: | ||
Common stock, $0.001 par value, 50,000,000 shares authorized, and 22,752,413 and 22,745,412 shares issued at December 31, 2023 and September 30, 2023, and 22,752,413 and 22,738,915 shares outstanding at December 31, 2023 and September 30, 2023, respectively | 23 | 23 |
Additional paid-in capital | 59,275 | 59,013 |
Retained earnings | 94,562 | 111,871 |
Common stock in treasury at cost, 6,497 shares at September 30, 2023 | 0 | (66) |
Total stockholders’ equity | 153,860 | 170,841 |
Total liabilities and stockholders’ equity | $ 663,157 | $ 669,185 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares | Dec. 31, 2023 | Sep. 30, 2023 |
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) | 22,752,413 | 22,745,412 |
Common Stock, Shares, Outstanding (in shares) | 22,752,413 | 22,738,915 |
Treasury Stock, Common, Shares (in shares) | 0 | 6,497 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Net sales | $ 301,750 | $ 280,457 |
Cost of goods sold and occupancy costs | 212,990 | 201,738 |
Gross profit | 88,760 | 78,719 |
Store expenses | 68,012 | 63,596 |
Administrative expenses | 9,407 | 8,253 |
Pre-opening expenses | 538 | 453 |
Operating income | 10,803 | 6,417 |
Interest expense, net | (894) | (796) |
Income before income taxes | 9,909 | 5,621 |
Provision for income taxes | (2,154) | (1,214) |
Net income | $ 7,755 | $ 4,407 |
Net income per share of common stock: | ||
Basic (in dollars per share) | $ 0.34 | $ 0.19 |
Diluted (in dollars per share) | $ 0.34 | $ 0.19 |
Weighted average number of shares of common stock outstanding: | ||
Basic (in shares) | 22,751,524 | 22,708,644 |
Diluted (in shares) | 22,979,744 | 22,801,450 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Operating activities: | ||
Net income | $ 7,755 | $ 4,407 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 7,451 | 7,062 |
Impairment of long-lived assets | 90 | 0 |
Loss on disposal of property and equipment | 30 | 3 |
Share-based compensation | 406 | 357 |
Deferred income tax (benefit) expense | (430) | 218 |
Non-cash interest expense | 4 | 5 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 1,135 | 2,296 |
Merchandise inventory | 3,183 | 2,381 |
Prepaid expenses and other assets | (319) | (7) |
Income tax receivable | 252 | 533 |
Operating lease assets | 8,319 | 8,172 |
Operating lease liabilities | (8,401) | (8,281) |
Accounts payable | (1,776) | 6,771 |
Accrued expenses | (1,075) | (2,710) |
Net cash provided by operating activities | 16,624 | 21,207 |
Investing activities: | ||
Acquisition of property and equipment | (11,734) | (10,413) |
Acquisition of other intangibles | (111) | (883) |
Proceeds from sale of property and equipment | 0 | 21 |
Proceeds from property insurance settlements | 38 | 0 |
Net cash used in investing activities | (11,807) | (11,275) |
Financing activities: | ||
Borrowings under revolving facility | 155,000 | 125,000 |
Repayments under revolving facility | (136,600) | (125,000) |
Repayments under term loan facility | (2,000) | (2,000) |
Finance lease obligation payments | (815) | (642) |
Dividend to shareholders | (25,028) | (2,272) |
Payments of deferred financing costs | (18) | 0 |
Payments on withholding tax for restricted stock unit vesting | (78) | (118) |
Net cash used in financing activities | (9,539) | (5,032) |
Net (decrease) increase in cash and cash equivalents | (4,722) | 4,900 |
Cash and cash equivalents, beginning of period | 18,342 | 12,039 |
Cash and cash equivalents, end of period | 13,620 | 16,939 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 441 | 272 |
Cash paid for interest on finance lease obligations, net of capitalized interest of $130 and $78, respectively | 455 | 490 |
Income taxes paid | 5 | 2 |
Supplemental disclosures of non-cash investing and financing activities: | ||
Acquisition of property and equipment not yet paid | 8,514 | 4,295 |
Acquisition of other intangibles not yet paid | 191 | 138 |
Property acquired through operating lease obligations | 4,680 | 756 |
Property acquired through finance lease obligations | (52) | (1,694) |
Property acquired through finance lease obligations | $ 52 | $ 1,694 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Unaudited) (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Capitalized interest | $ 130 | $ 78 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock Outstanding [Member] | Additional Paid-in Capital [Member] Cumulative Effect, Period of Adoption, Adjustment [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] Cumulative Effect, Period of Adoption, Adjustment [Member] | Retained Earnings [Member] | Treasury Stock, Common [Member] Cumulative Effect, Period of Adoption, Adjustment [Member] | Treasury Stock, Common [Member] | Common Stock [Member] Cumulative Effect, Period of Adoption, Adjustment [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Total |
Balances (in shares) at Sep. 30, 2022 | 22,690,188 | |||||||||
Balances at Sep. 30, 2022 | $ 23 | $ 58,072 | $ 97,717 | $ 155,812 | ||||||
Net income | 0 | 0 | 4,407 | 4,407 | ||||||
Share-based compensation | $ 0 | 239 | 0 | 239 | ||||||
Issuance of common stock (in shares) | 22,261 | |||||||||
Cash dividend | $ 0 | 0 | (2,272) | (2,272) | ||||||
Balances December 31, 2022 (in shares) at Dec. 31, 2022 | 22,712,449 | |||||||||
Balances December 31, 2022 at Dec. 31, 2022 | $ 23 | 58,311 | 99,852 | 158,186 | ||||||
Balances (in shares) (Accounting Standards Update 2022-04 [Member]) at Sep. 30, 2023 | 0 | |||||||||
Balances (in shares) at Sep. 30, 2023 | 22,738,915 | |||||||||
Balances (Accounting Standards Update 2022-04 [Member]) at Sep. 30, 2023 | $ 0 | $ (36) | $ 0 | $ 0 | $ (36) | |||||
Balances at Sep. 30, 2023 | $ 23 | 59,013 | 111,871 | $ (66) | 170,841 | |||||
Net income | 0 | 0 | 7,755 | 0 | 7,755 | |||||
Share-based compensation | $ 0 | 262 | 0 | 66 | 328 | |||||
Issuance of common stock (in shares) | 13,498 | |||||||||
Cash dividend | $ 0 | 0 | (25,028) | 0 | (25,028) | |||||
Balances December 31, 2022 (in shares) at Dec. 31, 2023 | 22,752,413 | |||||||||
Balances December 31, 2022 at Dec. 31, 2023 | $ 23 | $ 59,275 | $ 94,562 | $ 0 | $ 153,860 |
Note 1 - Organization
Note 1 - Organization | 3 Months Ended |
Dec. 31, 2023 | |
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, dietary supplements and body care products. The Company operated 167 and 165 stores as of December 31, 2023 and September 30, 2023, respectively, in 21 states. The Company also has a bulk food repackaging facility and distribution center in Golden, Colorado. |
Note 2 - Basis of Presentation
Note 2 - Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Basis of Presentation and Significant Accounting Policies [Text Block] | 2. Basis of Presentation and Summary of Significant Accounting Policies 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 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for annual financial statements. The information included in this Form 10-Q should be read in conjunction with Item 7 – “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the consolidated financial statements and notes thereto included in the Form 10-K. The accompanying unaudited consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation of the Company’s financial results. Interim results are not necessarily indicative of results for any other interim period or for a full fiscal year. The Company reports its results of operations on a fiscal year ending 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). All significant intercompany balances and transactions have been eliminated in consolidation. The Company has one reporting segment: natural and organic retail stores. 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, 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 valuation of inventories, useful lives of long-lived assets for depreciation and amortization, impairment of finite-lived intangible assets, long-lived assets, and goodwill, lease assumptions, allowances for self-insurance reserves, deferred tax assets and liabilities, and litigation based on currently available information. Changes in facts and circumstances may result in revised estimates and actual results could differ from those estimates. Recently Adopted Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-04, “Reference Rate Reform,” Accounting Standards Codification (ASC) Topic 848, “Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (ASU 2020-04), which was subsequently amended by a standard update in December 2022. The new guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The guidance applies only to contracts, hedging relationships and other transactions that reference the London Interbank Offered Rate (LIBOR) or another reference rate expected to be discontinued because of reference rate reform. As amended, the guidance only applies to modifications made prior to December 31, 2024. On December 15, 2022, the Company amended the Credit Facility (as defined in Note 5 below) to, among other things, replace the LIBOR-based interest rate benchmark provisions with interest rate benchmark provisions based on the Secured Overnight Financing Rate (SOFR). The Company elected to apply ASU 2020-04’s amendments for contract modifications during the first quarter of the fiscal year ending September 30, 2023. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses,” ASC Topic 326, “Measurement of Credit Losses on Financial Instruments” (ASU 2016-13), subsequently amended by various standard updates. ASU 2016-13 replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information when determining credit loss estimates. ASU 2016-13 also requires financial assets to be measured net of expected credit losses at the time of initial recognition. ASU 2019-10, issued in November 2019, delayed the effective date of ASU 2016-13 for smaller reporting companies such as the Company. The Company adopted ASU 2016-13 effective October 1, 2023 by recognizing the cumulative effect of initially applying the new credit loss standard as an adjustment to the opening balance of retained earnings. Recent Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, “Improvements to Reportable Segment Disclosures,” ASC Topic 280, “Segment Reporting” (ASU 2023-07). The ASU 2023-07 provisions require enhanced disclosures primarily about significant segment expenses. In addition, the provisions enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. The provisions of ASU 2023-07 will be effective for the Company’s fiscal year ending September 30, 2025. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of these provisions will have on its consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, “Improvements to Income Tax Disclosures,” ASC Topic 740, “Income Taxes” (ASU 2023-09). The ASU 2023-09 provisions require entities, on an annual basis, to disclose specific categories in the rate reconciliation and provide additional information for reconciling items equal to or greater than 5% of the statutory income tax rate amount. ASU 2023-09 also requires that entities disclose on an annual basis information about the amount of income taxes paid disaggregated by federal, state, and foreign taxes and disaggregated by individual jurisdictions in which income taxes paid is equal to or greater than 5% of total income taxes paid. In addition, ASU 2023-09 eliminates some disclosures relating to estimates of the change in unrecognized tax benefits reasonably possible within 12 months. The provisions of ASU 2023-09 will be effective for the Company’s fiscal year ending September 30, 2026. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of these provisions will have on its consolidated financial statements. No other new accounting pronouncements issued or effective during the three months ended December 31, 2023 had, or are expected to have, a material impact on the Company’s consolidated financial statements. |
Note 3 - Revenue Recognition
Note 3 - Revenue Recognition | 3 Months Ended |
Dec. 31, 2023 | |
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 the Company’s 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 balance of contract liabilities related to unredeemed gift cards was $1.8 million and $1.5 million as of December 31, 2023 and September 30, 2023, respectively. Revenue for the three months ended December 31, 2023 and 2022 includes $0.4 million and $0.3 million, respectively, that was included in the contract liability balance of unredeemed gift cards at September 30, 2023 and 2022, respectively. Rewards program points are accrued as deferred revenue at the retail value per point, net of estimated breakage based on historical redemption rates experienced within the rewards program. Rewards points are forfeited at the end of each calendar year. The following table disaggregates the Company’s revenue by product category for the three months ended December 31, 2023 and 2022, dollars in thousands and as a percentage of net sales: Three months ended December 31, 2023 2022 Grocery $ 212,135 70 % 197,358 70 % Dietary supplements 59,974 20 56,583 20 Body care, pet care and other 29,641 10 26,516 10 $ 301,750 100 % 280,457 100 % |
Note 4 - Earnings Per Share
Note 4 - Earnings Per Share | 3 Months Ended |
Dec. 31, 2023 | |
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 is computed using the treasury stock method and 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 earnings of the Company. The following table presents the Company’s basic and diluted EPS for the three months ended December 31, 2023 and 2022, dollars in thousands, except per share data: Three months ended December 31, 2023 2022 Net income $ 7,755 4,407 Weighted average number of shares of common stock outstanding 22,751,524 22,708,644 Effect of dilutive securities 228,220 92,806 Weighted average number of shares of common stock outstanding including effect of dilutive securities 22,979,744 22,801,450 Basic earnings per share $ 0.34 0.19 Diluted earnings per share $ 0.34 0.19 There were 34,220 and 130,191 non-vested RSUs for the three months ended December 31, 2023 and 2022, respectively, excluded from the calculation of diluted EPS as they were antidilutive. |
Note 5 - Debt
Note 5 - Debt | 3 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Long-Term Debt [Text Block] | 5. Debt Credit Facility The Company is party to a Credit Facility, originally entered into on January 28, 2016, as subsequently amended, consisting of a $75.0 million revolving loan facility (the Revolving Facility) and a $35.0 million term loan facility (the Term Loan Facility, and together with the Revolving Facility, the Credit Facility). The operating company is the borrower under the Credit Facility and its obligations under the Credit Facility are guaranteed by the holding company and VC2. The Credit Facility is secured by a lien on substantially all of the Company’s assets. The revolving commitment amount under the Revolving Facility is $75.0 million, including a $5.0 million sublimit for standby letters of credit. The Company has the right to borrow, prepay and re-borrow amounts under the Revolving Facility at any time prior to the maturity date without premium or penalty. The Term Loan Facility matures on November 13, 2024 and the Revolving Facility matures on November 16, 2028. Base rate loans under the Credit Facility bear interest at a fluctuating base rate, as determined by the lenders’ administrative agent based on the most recent compliance certificate of the operating company and stated at the highest of (i) the federal funds rate plus 0.50%, (ii) the prime rate, and (iii) Term SOFR plus 1.00%, less the lender spread based upon the Company’s consolidated leverage ratio. Term SOFR borrowings under the Credit Facility bear interest based on Term SOFR for the interest period plus the lender spread based upon the Company’s consolidated leverage ratio. The unused commitment fee is based upon the Company’s consolidated leverage ratio. The Company is required to repay principal amounts outstanding under the Term Loan Facility in equal installments of approximately $0.4 million on the last day of each fiscal quarter, beginning on March 31, 2021 and ending on September 30, 2024, with the remaining principal amount payable on the maturity date. Amounts repaid on the Term Loan Facility may not be reborrowed. The Credit Facility requires compliance with certain customary operational and financial covenants, including a consolidated 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, provided that so long as no default or event of default exists or would arise as a result thereof, the operating company may pay cash dividends to the holding company in an amount sufficient to allow the holding company to: (i) pay various audit, accounting, tax, securities, indemnification, reimbursement, insurance and other reasonable expenses incurred in the ordinary course of business and (ii) repurchase shares of common stock and pay dividends on the Company’s common stock in an aggregate amount not to exceed $15.0 million during any fiscal year. On November 16, 2023, the Company amended the Credit Facility to: (i) increase its aggregate revolving commitments from $50.0 million to $75.0 million; (ii) extend the maturity date of the Revolving Facility to November 16, 2028; (iii) permit payment of a one-time cash dividend of up to $25.0 million no later than December 31, 2023; and (iv) increase the Company’s restricted payment capacity by $2.5 million, allowing the Company to repurchase shares of common stock and pay dividends on its common stock in an aggregate amount not to exceed $15.0 million during any fiscal year. The aggregate revolving commitment amount will be automatically and permanently reduced by $2.5 million annually until the Revolving Facility matures in November 2028, unless the Company has previously exercised its option to reduce the aggregate revolving commitments to a lower amount. The Company had $18.4 million and no amounts outstanding under the Revolving Facility as of December 31, 2023 and September 30, 2023, respectively. The Company had undrawn, issued and outstanding letters of credit of $1.5 million as of December 31, 2023 and September 30, 2023, which were reserved against the amount available for borrowing under the terms of the Revolving Facility. The Company had $55.1 million and $48.5 million available for borrowing under the Revolving Facility as of December 31, 2023 and September 30, 2023, respectively. The Company had $5.7 million outstanding under its fully drawn Term Loan Facility as of December 31, 2023. As of December 31, 2023 and September 30, 2023, the Company was in compliance with all covenants under the Credit Facility. Lease Obligations The Company had 24 leases that were classified as finance leases as of December 31, 2023 and September 30, 2023. No rent expense is recorded for these finance leases; rather, rental payments under such leases are recognized as a reduction of the lease obligation and as interest expense. The interest rate on finance lease obligations is determined at the commencement of the lease. Interest The Company incurred gross interest expense of $1.0 million and $0.9 million for the three months ended December 31, 2023 and 2022, respectively. Interest expense for the three months ended December 31, 2023 and 2022 relates primarily to interest on finance lease obligations and the Credit Facility. The Company capitalized interest of $0.1 million for each of the three months ended December 31, 2023 and 2022. |
Note 6 - Stockholders' Equity
Note 6 - Stockholders' Equity | 3 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Equity [Text Block] | 6. Stockholders Equity Share Repurchases In May 2016, the Board of Directors (the Board) authorized a two The Company did not not no Dividends The Company paid a quarterly cash dividend of $0.10 per share of common stock in each of the first quarters of fiscal years 2024 and 2023, and a special cash dividend of $1.00 per share of common stock in the first quarter of fiscal year 2024. |
Note 7 - Lease Obligations
Note 7 - Lease Obligations | 3 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Lessee, Operating and Finance Leases [Text Block] | 7. Lease Obligations The Company leases most of its stores, a bulk food repackaging facility and distribution center, and its administrative offices. The Company determines if an arrangement is a lease or contains a lease at inception. Lease terms generally range from 10 to 25 years, with scheduled increases in minimum rent payments. Operating and finance lease liabilities represent the present value of lease payments not yet paid. Operating and finance lease assets represent the Company’s right to use an underlying asset and are based upon the operating and finance lease liabilities adjusted for prepayments or accrued lease payments, initial direct costs, lease incentives and impairment of operating and finance lease assets. Most leases include one or more options to renew, with renewal terms normally expressed in periods of five ten Variable payments related to pass-through costs for maintenance, taxes and insurance or adjustments based on an index such as Consumer Price Index are not included in the measurement of the lease liability or asset and are expensed as incurred. As most of the Company’s lease agreements do not provide an implicit discount rate, the Company uses an estimated incremental borrowing rate, which is derived from third-party lenders, to determine the present value of lease payments. The Company uses other observable market data to evaluate the appropriateness of the rate derived from the lenders. The estimated incremental borrowing rate is based on the borrowing rate for a secured loan with a term similar to the expected term of the lease. Leases are recorded at the commencement date (the date the underlying asset becomes available for use) for the present value of lease payments, less tenant improvement allowances received or receivable. Leases with a term of 12 months or less (short-term leases) are not presented on the balance sheet. The Company has elected to account for the lease and non-lease components as a single lease component for all current classes of leases. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company subleases certain real estate or portions thereof to third parties. Such subleases have all been classified as operating leases. Remaining sublease terms extend through fiscal year 2030. Although some sublease arrangements provide renewal options, the exercise of sublease renewal options is at the sole discretion of the subtenant. The Company recognizes sublease income on a straight-line basis. The Company has four one one The components of total lease cost for the three months ended December 31, 2023 and 2022 were as follows, dollars in thousands: Three months ended December 31, Lease cost Classification 2023 2022 Operating lease cost: Cost of goods sold and occupancy costs $ 11,027 10,903 Store expenses 115 98 Administrative expenses 98 77 Pre-opening expense 59 80 Finance lease cost: Depreciation of lease assets Store expenses 1,009 907 Pre-opening expenses 70 113 Interest on lease liabilities Interest expense, net 502 443 Pre-opening expenses 84 124 Short-term lease cost Store expenses 754 671 Variable lease cost Cost of goods sold and occupancy costs (1) 1,582 1,504 Sublease income Store expenses (88 ) (74 ) Total lease cost $ 15,212 14,846 (1) Additional information related to the Company’s leases for the three months ended December 31, 2023 and 2022 was as follows, dollars in thousands: Three months ended December 31, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 11,380 11,267 Operating cash flows from finance leases 585 568 Financing cash flows from finance leases 815 642 Lease assets obtained in exchange for new lease liabilities: Operating leases 4,680 756 Finance leases (52 ) 1,694 Additional information related to the Company’s leases as of December 31, 2023 and 2022 was as follows: December 31, 2023 2022 Weighted-average remaining lease term (in years): Operating leases 10.1 10.6 Finance leases 14.0 14.3 Weighted-average discount rate: Operating leases 3.9 % 3.7 Finance leases 4.9 % 4.8 In the three months ended December 31, 2023, the Company incurred additional impairment charges of $0.1 million related to operating lease assets associated with store closures that occurred in June 2023. Future lease payments under non-cancellable leases as of December 31, 2023 were as follows, dollars in thousands: Fiscal year Operating leases Finance leases Total Remainder of 2024 $ 35,238 4,480 39,718 2025 45,764 6,051 51,815 2026 42,914 6,093 49,007 2027 41,119 6,138 47,257 2028 38,287 5,053 43,340 Thereafter 171,203 40,931 212,134 Total future undiscounted lease payments 374,525 68,746 443,271 Less imputed interest (66,853 ) (18,781 ) (85,634 ) Total reported lease liability 307,672 49,965 357,637 Less current portion (35,840 ) (3,762 ) (39,602 ) Noncurrent lease liability $ 271,832 46,203 318,035 The table above excludes $5.8 million of legally binding minimum lease payments for leases that had been executed as of December 31, 2023 but whose terms had not yet commenced. |
Note 8 - Property and Equipment
Note 8 - Property and Equipment | 3 Months Ended |
Dec. 31, 2023 | |
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 December 31, 2023 and September 30, 2023, dollars in thousands: As of Useful lives (in years) December 31, 2023 September 30, 2023 Construction in process n/a $ 8,594 15,221 Land n/a 6,746 6,746 Buildings 16 – 40 56,058 46,412 Land improvements 1 – 24 2,149 2,112 Leasehold and building improvements 1 – 25 175,776 173,407 Fixtures and equipment 5 – 7 161,659 157,710 Computer hardware and software 3 – 5 29,062 27,080 440,044 428,688 Less accumulated depreciation and amortization (262,767 ) (259,628 ) Property and equipment, net $ 177,277 169,060 Depreciation and amortization expense for the three months ended December 31, 2023 and 2022 is summarized as follows, dollars in thousands: Three months ended 2023 2022 Depreciation and amortization expense included in cost of goods sold and occupancy costs $ 141 258 Depreciation and amortization expense included in store expenses 6,845 6,303 Depreciation and amortization expense included in administrative expenses 395 388 Depreciation and amortization expense included in pre-opening expenses 70 113 Total depreciation and amortization expense $ 7,451 7,062 |
Note 9 - Goodwill and Other Int
Note 9 - Goodwill and Other Intangible Assets | 3 Months Ended |
Dec. 31, 2023 | |
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 December 31, 2023 and September 30, 2023, dollars in thousands: As of Useful lives (in years) December 31, 2023 September 30, 2023 Amortizable intangible assets: Other intangibles 0.5 - 7 $ 13,207 13,207 Less accumulated amortization (5,717 ) (5,326 ) Amortizable intangible assets, net 7,490 7,881 Other intangibles in process 943 643 Trademarks Indefinite 389 389 Deferred financing costs, net 3 - 5 32 18 Total other intangibles, net 8,854 8,931 Goodwill Indefinite 5,198 5,198 Total goodwill and other intangibles, net $ 14,052 14,129 |
Note 10 - Accrued Expenses
Note 10 - Accrued Expenses | 3 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 10. Accrued Expenses The composition of accrued expenses as of December 31, 2023 and September 30, 2023 is summarized as follows, dollars in thousands: As of December 31, September 30, 2023 2023 Payroll and employee-related expenses $ 13,666 17,719 Accrued property, sales and use tax payable 9,919 9,844 Accrued marketing expenses 589 466 Deferred revenue 2,221 1,866 Other 5,594 3,169 Total accrued expenses $ 31,989 33,064 |
Note 11 - Income Taxes
Note 11 - Income Taxes | 3 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 11. Income Taxes Income taxes are accounted for in accordance with the provisions of ASC Topic 740 “Income Taxes” (ASC 740). Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are remeasured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amounts expected to be realized. |
Note 12 - Related Party Transac
Note 12 - Related Party Transactions | 3 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 12. Related Party Transactions The Company has ongoing relationships with related entities as noted below: Chalet Properties, LLC: four four Isely Family Land Trust LLC: FTVC LLC: one four |
Note 13 - Commitments and Conti
Note 13 - Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 13. Commitments and Contingencies Self-Insurance The Company is self-insured for certain losses, liabilities and employee benefit costs, subject to a stop loss policy or deductible limits. Liabilities associated with the risks that are retained by the Company are estimated, in part, by considering an analysis of actual claims, historical claims experience, demographic factors and other actuarial assumptions. While the Company believes that its assumptions are appropriate, the estimated accrual for these liabilities could be significantly affected if future occurrences and claims materially differ from these assumptions and historical trends. Legal Proceedings The Company is periodically involved in legal proceedings that are incidental to the conduct of its business, including but not limited to employment discrimination claims, customer injury claims, and investigations. When the potential liability from a matter can be estimated and the loss is considered probable, the Company records the estimated loss. Due to uncertainties related to the resolution of lawsuits, investigations, and claims, the ultimate outcome may differ from the estimates. Although the Company cannot predict with certainty the ultimate resolution of any lawsuits, investigations, and claims asserted against it, management does not believe any currently pending legal proceeding to which the Company is a party will have a material adverse effect on its financial statements. |
Note 14 - Subsequent Event
Note 14 - Subsequent Event | 3 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 14. Subsequent Event On February 7, 2024, the Board approved the payment of a quarterly cash dividend of $0.10 per share of common stock to be paid on March 20, 2024 to stockholders of record as of the close of business on March 4, 2024. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Dec. 31, 2023 | |
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 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for annual financial statements. The information included in this Form 10-Q should be read in conjunction with Item 7 – “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the consolidated financial statements and notes thereto included in the Form 10-K. The accompanying unaudited consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation of the Company’s financial results. Interim results are not necessarily indicative of results for any other interim period or for a full fiscal year. The Company reports its results of operations on a fiscal year ending 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). All significant intercompany balances and transactions have been eliminated in consolidation. The Company has one reporting segment: natural and organic retail stores. |
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, 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 valuation of inventories, useful lives of long-lived assets for depreciation and amortization, impairment of finite-lived intangible assets, long-lived assets, and goodwill, lease assumptions, allowances for self-insurance reserves, deferred tax assets and liabilities, and litigation based on currently available information. Changes in facts and circumstances may result in revised estimates and actual results could differ from those estimates. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-04, “Reference Rate Reform,” Accounting Standards Codification (ASC) Topic 848, “Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (ASU 2020-04), which was subsequently amended by a standard update in December 2022. The new guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The guidance applies only to contracts, hedging relationships and other transactions that reference the London Interbank Offered Rate (LIBOR) or another reference rate expected to be discontinued because of reference rate reform. As amended, the guidance only applies to modifications made prior to December 31, 2024. On December 15, 2022, the Company amended the Credit Facility (as defined in Note 5 below) to, among other things, replace the LIBOR-based interest rate benchmark provisions with interest rate benchmark provisions based on the Secured Overnight Financing Rate (SOFR). The Company elected to apply ASU 2020-04’s amendments for contract modifications during the first quarter of the fiscal year ending September 30, 2023. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses,” ASC Topic 326, “Measurement of Credit Losses on Financial Instruments” (ASU 2016-13), subsequently amended by various standard updates. ASU 2016-13 replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information when determining credit loss estimates. ASU 2016-13 also requires financial assets to be measured net of expected credit losses at the time of initial recognition. ASU 2019-10, issued in November 2019, delayed the effective date of ASU 2016-13 for smaller reporting companies such as the Company. The Company adopted ASU 2016-13 effective October 1, 2023 by recognizing the cumulative effect of initially applying the new credit loss standard as an adjustment to the opening balance of retained earnings. Recent Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, “Improvements to Reportable Segment Disclosures,” ASC Topic 280, “Segment Reporting” (ASU 2023-07). The ASU 2023-07 provisions require enhanced disclosures primarily about significant segment expenses. In addition, the provisions enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. The provisions of ASU 2023-07 will be effective for the Company’s fiscal year ending September 30, 2025. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of these provisions will have on its consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, “Improvements to Income Tax Disclosures,” ASC Topic 740, “Income Taxes” (ASU 2023-09). The ASU 2023-09 provisions require entities, on an annual basis, to disclose specific categories in the rate reconciliation and provide additional information for reconciling items equal to or greater than 5% of the statutory income tax rate amount. ASU 2023-09 also requires that entities disclose on an annual basis information about the amount of income taxes paid disaggregated by federal, state, and foreign taxes and disaggregated by individual jurisdictions in which income taxes paid is equal to or greater than 5% of total income taxes paid. In addition, ASU 2023-09 eliminates some disclosures relating to estimates of the change in unrecognized tax benefits reasonably possible within 12 months. The provisions of ASU 2023-09 will be effective for the Company’s fiscal year ending September 30, 2026. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of these provisions will have on its consolidated financial statements. No other new accounting pronouncements issued or effective during the three months ended December 31, 2023 had, or are expected to have, a material impact on the Company’s consolidated financial statements. |
Note 3 - Revenue Recognition (T
Note 3 - Revenue Recognition (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three months ended December 31, 2023 2022 Grocery $ 212,135 70 % 197,358 70 % Dietary supplements 59,974 20 56,583 20 Body care, pet care and other 29,641 10 26,516 10 $ 301,750 100 % 280,457 100 % |
Note 4 - Earnings Per Share (Ta
Note 4 - Earnings Per Share (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three months ended December 31, 2023 2022 Net income $ 7,755 4,407 Weighted average number of shares of common stock outstanding 22,751,524 22,708,644 Effect of dilutive securities 228,220 92,806 Weighted average number of shares of common stock outstanding including effect of dilutive securities 22,979,744 22,801,450 Basic earnings per share $ 0.34 0.19 Diluted earnings per share $ 0.34 0.19 |
Note 7 - Lease Obligations (Tab
Note 7 - Lease Obligations (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Notes Tables | |
Lease, Cost [Table Text Block] | Three months ended December 31, Lease cost Classification 2023 2022 Operating lease cost: Cost of goods sold and occupancy costs $ 11,027 10,903 Store expenses 115 98 Administrative expenses 98 77 Pre-opening expense 59 80 Finance lease cost: Depreciation of lease assets Store expenses 1,009 907 Pre-opening expenses 70 113 Interest on lease liabilities Interest expense, net 502 443 Pre-opening expenses 84 124 Short-term lease cost Store expenses 754 671 Variable lease cost Cost of goods sold and occupancy costs (1) 1,582 1,504 Sublease income Store expenses (88 ) (74 ) Total lease cost $ 15,212 14,846 |
Additional Information Related to Leases [Table Text Block] | Three months ended December 31, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 11,380 11,267 Operating cash flows from finance leases 585 568 Financing cash flows from finance leases 815 642 Lease assets obtained in exchange for new lease liabilities: Operating leases 4,680 756 Finance leases (52 ) 1,694 December 31, 2023 2022 Weighted-average remaining lease term (in years): Operating leases 10.1 10.6 Finance leases 14.0 14.3 Weighted-average discount rate: Operating leases 3.9 % 3.7 Finance leases 4.9 % 4.8 |
Operating and Finance Lease, Liability, Maturity [Table Text Block] | Fiscal year Operating leases Finance leases Total Remainder of 2024 $ 35,238 4,480 39,718 2025 45,764 6,051 51,815 2026 42,914 6,093 49,007 2027 41,119 6,138 47,257 2028 38,287 5,053 43,340 Thereafter 171,203 40,931 212,134 Total future undiscounted lease payments 374,525 68,746 443,271 Less imputed interest (66,853 ) (18,781 ) (85,634 ) Total reported lease liability 307,672 49,965 357,637 Less current portion (35,840 ) (3,762 ) (39,602 ) Noncurrent lease liability $ 271,832 46,203 318,035 |
Note 8 - Property and Equipme_2
Note 8 - Property and Equipment (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | As of Useful lives (in years) December 31, 2023 September 30, 2023 Construction in process n/a $ 8,594 15,221 Land n/a 6,746 6,746 Buildings 16 – 40 56,058 46,412 Land improvements 1 – 24 2,149 2,112 Leasehold and building improvements 1 – 25 175,776 173,407 Fixtures and equipment 5 – 7 161,659 157,710 Computer hardware and software 3 – 5 29,062 27,080 440,044 428,688 Less accumulated depreciation and amortization (262,767 ) (259,628 ) Property and equipment, net $ 177,277 169,060 |
Depreciation and Amortization Expense [Table Text Block] | Three months ended 2023 2022 Depreciation and amortization expense included in cost of goods sold and occupancy costs $ 141 258 Depreciation and amortization expense included in store expenses 6,845 6,303 Depreciation and amortization expense included in administrative expenses 395 388 Depreciation and amortization expense included in pre-opening expenses 70 113 Total depreciation and amortization expense $ 7,451 7,062 |
Note 9 - Goodwill and Other I_2
Note 9 - Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Notes Tables | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | As of Useful lives (in years) December 31, 2023 September 30, 2023 Amortizable intangible assets: Other intangibles 0.5 - 7 $ 13,207 13,207 Less accumulated amortization (5,717 ) (5,326 ) Amortizable intangible assets, net 7,490 7,881 Other intangibles in process 943 643 Trademarks Indefinite 389 389 Deferred financing costs, net 3 - 5 32 18 Total other intangibles, net 8,854 8,931 Goodwill Indefinite 5,198 5,198 Total goodwill and other intangibles, net $ 14,052 14,129 |
Note 10 - Accrued Expenses (Tab
Note 10 - Accrued Expenses (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | As of December 31, September 30, 2023 2023 Payroll and employee-related expenses $ 13,666 17,719 Accrued property, sales and use tax payable 9,919 9,844 Accrued marketing expenses 589 466 Deferred revenue 2,221 1,866 Other 5,594 3,169 Total accrued expenses $ 31,989 33,064 |
Note 1 - Organization (Details
Note 1 - Organization (Details Textual) | Dec. 31, 2023 | Sep. 30, 2023 |
Number of Stores | 167 | 165 |
Number of States in which Entity Operates | 21 |
Note 3 - Revenue Recognition (D
Note 3 - Revenue Recognition (Details Textual) - Gift Cards [Member] - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2023 | |
Contract with Customer, Liability, Total | $ 1.8 | $ 1.5 | |
Contract with Customer, Liability, Revenue Recognized | $ 0.4 | $ 0.3 |
Note 3 - Revenue Recognition -
Note 3 - Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Net sales | $ 301,750 | $ 280,457 |
Net Sales, percent | 100% | 100% |
Grocery [Member] | ||
Net sales | $ 212,135 | $ 197,358 |
Net Sales, percent | 70% | 70% |
Dietary Supplements [Member] | ||
Net sales | $ 59,974 | $ 56,583 |
Net Sales, percent | 20% | 20% |
Manufactured Product, Other [Member] | ||
Net sales | $ 29,641 | $ 26,516 |
Net Sales, percent | 10% | 10% |
Note 4 - Earnings Per Share (De
Note 4 - Earnings Per Share (Details Textual) - shares | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Restricted Stock Units (RSUs) [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 34,220 | 130,191 |
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 | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Net income | $ 7,755 | $ 4,407 |
Weighted average number of shares of common stock outstanding (in shares) | 22,751,524 | 22,708,644 |
Effect of dilutive securities (in shares) | 228,220 | 92,806 |
Weighted average number of shares of common stock outstanding including effect of dilutive securities (in shares) | 22,979,744 | 22,801,450 |
Basic earnings per share (in dollars per share) | $ 0.34 | $ 0.19 |
Diluted earnings per share (in dollars per share) | $ 0.34 | $ 0.19 |
Note 5 - Debt (Details Textual)
Note 5 - Debt (Details Textual) $ in Millions | 3 Months Ended | ||||
Nov. 16, 2023 USD ($) | Jan. 28, 2016 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Sep. 30, 2023 USD ($) | |
Capital and Financing Lease Obligations Number of Leases | 24 | ||||
Interest Expense, Debt, Excluding Amortization | $ 1 | $ 0.9 | |||
Interest Costs Capitalized | 0.1 | $ 0.1 | |||
Letter of Credit [Member] | |||||
Letters of Credit Outstanding, Amount | 1.5 | ||||
The New Credit Facility [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1% | ||||
Debt Instrument, Periodic Payment, Principal | 0.4 | ||||
Line of Credit Facility, Dividend Restrictions, Maximum Amount | $ 15 | ||||
Line of Credit Facility, Remaining Borrowing Capacity | 55.1 | $ 48.5 | |||
Long-Term Debt, Total | 5.7 | ||||
The New Credit Facility [Member] | Prime Rate [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||||
The New Credit Facility [Member] | Term Loan [Member] | |||||
Debt Instrument, Face Amount | $ 35 | ||||
The New Credit Facility [Member] | Revolving Credit Facility [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 75 | $ 50 | |||
Debt Instrument, Periodic Payment, Principal | 2.5 | ||||
Line of Credit Facility, Dividend Restrictions, Maximum Amount | 15 | ||||
Debt Instrument, Maximum Dividend Payment Permitted | 25 | ||||
Line of Credit Facility, Restricted Payment Capacity | $ 2.5 | ||||
Long-Term Line of Credit, Total | $ 18.4 | ||||
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 ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | ||
May 31, 2016 | Dec. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2023 | |
Stock Repurchase Program, Period in Force (Year) | 2 years | |||
Stock Repurchase Program, Authorized Amount | $ 10 | |||
Stock Repurchased During Period, Shares | 0 | 0 | ||
Stock Issued During Period, Shares, Treasury Stock Reissued | 6,497 | 0 | ||
Stock Issued During Period, Value, Treasury Stock Reissued | $ 0.1 | |||
Treasury Stock, Common, Shares (in shares) | 0 | 6,497 | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 8.1 | |||
Quarterly Cash dividend [Member] | ||||
Common Stock, Dividends, Per Share, Declared (in dollars per share) | $ 0.1 | $ 0.1 | ||
Special Cash Dividend [Member] | ||||
Common Stock, Dividends, Per Share, Declared (in dollars per share) | $ 1 |
Note 7 - Lease Obligations (Det
Note 7 - Lease Obligations (Details Textual) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) | |
Operating Lease, Right-of-Use Asset | $ 284,212 | $ 287,941 |
Operating Lease, Liability | 307,672 | |
Operating Lease, Liability, Current | 35,840 | $ 34,850 |
Operating Lease, Impairment Loss | 100 | |
Lessee, Operating Lease, Lease Not yet Commenced, Minimum Lease Payments | 5,800 | |
Related Party [Member] | ||
Operating Lease, Right-of-Use Asset | 8,200 | |
Operating Lease, Liability | 8,300 | |
Operating Lease, Liability, Current | 900 | |
Operating Lease, Expense | $ 300 | |
Chalet [Member] | ||
Number of Operating Leases | 4 | |
Isely Family Land Trust LLC [Member] | ||
Number of Operating Leases | 1 | |
FTVC, LLC [Member] | ||
Number of Operating Leases | 1 | |
Minimum [Member] | ||
Lessee, Operating Lease, Term of Contract | 10 years | |
Lessee, Operating Lease, Renewal Term | 5 years | |
Maximum [Member] | ||
Lessee, Operating Lease, Term of Contract | 25 years | |
Lessee, Operating Lease, Renewal Term | 10 years |
Note 7 - Lease Obligations - Le
Note 7 - Lease Obligations - Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Total lease cost | $ 15,212 | $ 14,846 | |
Cost of Sales [Member] | |||
Operating lease cost | 11,027 | 10,903 | |
Variable lease cost | [1] | 1,582 | 1,504 |
Store Expenses [Member] | |||
Operating lease cost | 115 | 98 | |
Depreciation of lease assets | 1,009 | 907 | |
Short-term lease cost | 754 | 671 | |
Sublease income | (88) | (74) | |
General and Administrative Expense [Member] | |||
Operating lease cost | 98 | 77 | |
Pre-opening Costs and Relocation Expenses [Member] | |||
Operating lease cost | 59 | 80 | |
Depreciation of lease assets | 70 | 113 | |
Interest on lease liabilities | 84 | 124 | |
Interest Expense [Member] | |||
Interest on lease liabilities | $ 502 | $ 443 | |
[1]Immaterial balances related to corporate headquarters and distribution center are included in administrative expenses and store expenses, respectively. |
Note 7 - Lease Obligations - Ad
Note 7 - Lease Obligations - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Operating cash flows from operating leases | $ 11,380 | $ 11,267 |
Operating leases (Year) | 10 years 1 month 6 days | 10 years 7 months 6 days |
Operating cash flows from finance leases | $ 585 | $ 568 |
Finance leases (Year) | 14 years | 14 years 3 months 18 days |
Financing cash flows from finance leases | $ 815 | $ 642 |
Operating leases | 3.90% | 3.70% |
Operating leases | $ 4,680 | $ 756 |
Finance leases | 4.90% | 4.80% |
Property acquired through finance lease obligations | $ (52) | $ (1,694) |
Finance leases | $ 52 | $ 1,694 |
Note 7 - Lease Obligations - Fu
Note 7 - Lease Obligations - Future Lease Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 |
Remainder of 2024, operating leases | $ 35,238 | |
Remainder of 2024, finance leases | 4,480 | |
Remainder of 2024 | 39,718 | |
Lessee, Operating Lease, Liability, to be Paid, Year One | 45,764 | |
Finance Lease, Liability, to be Paid, Year One | 6,051 | |
Lessee, Operating and Finance Lease, Liability, Payments, Due Year One | 51,815 | |
Lessee, Operating Lease, Liability, to be Paid, Year Two | 42,914 | |
Finance Lease, Liability, to be Paid, Year Two | 6,093 | |
Lessee, Operating and Finance Lease, Liability, Payments, Due Year Two | 49,007 | |
Lessee, Operating Lease, Liability, to be Paid, Year Three | 41,119 | |
Finance Lease, Liability, to be Paid, Year Three | 6,138 | |
Lessee, Operating and Finance Lease, Liability, Payments, Due Year Three | 47,257 | |
Lessee, Operating Lease, Liability, to be Paid, Year Four | 38,287 | |
Finance Lease, Liability, to be Paid, Year Four | 5,053 | |
Lessee, Operating and Finance Lease, Liability, Payments, Due Year Four | 43,340 | |
Thereafter, operating lease | 171,203 | |
Finance Lease, Liability, to be Paid, Rolling Year Four | 40,931 | |
Thereafter | 212,134 | |
Total future undiscounted operating lease payments | 374,525 | |
Total future undiscounted finance lease payments | 68,746 | |
Total future undiscounted lease payments | 443,271 | |
Less imputed interest, operating lease | (66,853) | |
Less imputed interest, finance lease | (18,781) | |
Less imputed interest | (85,634) | |
Total reported operating lease liability | 307,672 | |
Total reported finance lease liability | 49,965 | |
Total reported lease liability | 357,637 | |
Less current portion, operating lease | (35,840) | $ (34,850) |
Less current portion, finance lease | (3,762) | (3,690) |
Less current portion | (39,602) | |
Operating lease obligations, net of current portion | 271,832 | 276,808 |
Finance lease obligations, net of current portion | 46,203 | $ 47,142 |
Noncurrent lease liability | $ 318,035 |
Note 8 - Property and Equipme_3
Note 8 - Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 |
Property, plant, and equipment, gross | $ 440,044 | $ 428,688 |
Less accumulated depreciation and amortization | (262,767) | (259,628) |
Property and equipment, net | 177,277 | 169,060 |
Land [Member] | ||
Property, plant, and equipment, gross | 6,746 | 6,746 |
Building [Member] | ||
Property, plant, and equipment, gross | $ 56,058 | |
Building [Member] | Minimum [Member] | ||
Property, plant, and equipment, gross | 46,412 | |
Property, Plant and Equipment, Useful Life (Year) | 16 years | |
Building [Member] | Maximum [Member] | ||
Property, Plant and Equipment, Useful Life (Year) | 40 years | |
Leasehold Improvements [Member] | Minimum [Member] | ||
Property, plant, and equipment, gross | 2,112 | |
Property, Plant and Equipment, Useful Life (Year) | 1 year | |
Leasehold Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment, Useful Life (Year) | 24 years | |
Land Improvements [Member] | ||
Property, plant, and equipment, gross | $ 2,149 | |
Land Improvements [Member] | Minimum [Member] | ||
Property, plant, and equipment, gross | 173,407 | |
Property, Plant and Equipment, Useful Life (Year) | 1 year | |
Land Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment, Useful Life (Year) | 25 years | |
Leasehold and Building Improvements [Member] | ||
Property, plant, and equipment, gross | $ 175,776 | |
Furniture and Fixtures [Member] | ||
Property, plant, and equipment, gross | $ 161,659 | |
Furniture and Fixtures [Member] | Minimum [Member] | ||
Property, plant, and equipment, gross | 157,710 | |
Property, Plant and Equipment, Useful Life (Year) | 5 years | |
Furniture and Fixtures [Member] | Maximum [Member] | ||
Property, Plant and Equipment, Useful Life (Year) | 7 years | |
Computer Equipment [Member] | ||
Property, plant, and equipment, gross | $ 29,062 | $ 27,080 |
Computer Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment, Useful Life (Year) | 3 years | |
Computer Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment, Useful Life (Year) | 5 years |
Note 8 - Property and Equipme_4
Note 8 - Property and Equipment - Depreciation and Amortization Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Depreciation and amortization expense | $ 7,451 | $ 7,062 |
Cost of Sales [Member] | ||
Depreciation and amortization expense | 141 | 258 |
Stores [Member] | ||
Depreciation and amortization expense | 6,845 | 6,303 |
General and Administrative Expense [Member] | ||
Depreciation and amortization expense | 395 | 388 |
Pre-opening Costs and Relocation Expenses [Member] | ||
Depreciation and amortization expense | $ 70 | $ 113 |
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 | Dec. 31, 2023 | Sep. 30, 2023 |
Less accumulated amortization | $ (5,717) | $ (5,326) |
Amortizable intangible assets, net | 7,490 | 7,881 |
Other intangibles in process | 943 | 643 |
Trademarks | 389 | 389 |
Deferred financing costs, net | 32 | 18 |
Total other intangibles, net | 8,854 | 8,931 |
Goodwill | 5,198 | 5,198 |
Total goodwill and other intangibles, net | $ 14,052 | 14,129 |
Minimum [Member] | ||
Indefinite Lived Asset, Useful Life (Year) | 3 years | |
Maximum [Member] | ||
Indefinite Lived Asset, Useful Life (Year) | 5 years | |
Other Intangible Assets [Member] | ||
Finite-lived intangibles, gross | $ 13,207 | $ 13,207 |
Other Intangible Assets [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets, Useful Life (Year) | 6 months | |
Other Intangible Assets [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets, Useful Life (Year) | 7 years |
Note 10 - Accrued Expenses - Co
Note 10 - Accrued Expenses - Composition of Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 |
Payroll and employee-related expenses | $ 13,666 | $ 17,719 |
Accrued property, sales and use tax payable | 9,919 | 9,844 |
Accrued marketing expenses | 589 | 466 |
Deferred revenue | 2,221 | 1,866 |
Other | 5,594 | 3,169 |
Total accrued expenses | $ 31,989 | $ 33,064 |
Note 12 - Related Party Trans_2
Note 12 - Related Party Transactions (Details Textual) $ in Millions | 3 Months Ended | |
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Chalet [Member] | ||
Number of Operating Leases | 4 | |
Related Party Transaction Number of Owners That Are Non-Independent Board Members of the Entity | 4 | |
Payments for Rent | $ 0.2 | $ 0.2 |
Isely Family Land Trust LLC [Member] | ||
Payments for Rent | $ 0.1 | 0.1 |
FTVC, LLC [Member] | ||
Number of Operating Leases | 1 | |
Related Party Transaction Number of Owners That Are Non-Independent Board Members of the Entity | 4 | |
FTVC, LLC [Member] | Maximum [Member] | ||
Payments for Rent | $ 0.1 | $ 0.1 |
Note 14 - Subsequent Event (Det
Note 14 - Subsequent Event (Details Textual) - Quarterly Cash dividend [Member] - $ / shares | 3 Months Ended | ||
Feb. 07, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | |
Common Stock, Dividends, Per Share, Declared (in dollars per share) | $ 0.1 | $ 0.1 | |
Subsequent Event [Member] | |||
Common Stock, Dividends, Per Share, Declared (in dollars per share) | $ 0.1 |