NGVC - Earnings call transcript Q1 2021 | Natural Grocers by Vitamin Cottage, Inc.

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Operator

Good day, ladies and gentlemen, and welcome to the Natural Grocers' First Quarter Fiscal Year 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time.

As a reminder, today's call is being recorded. At this time, I'd like to turn the conference call over to Mr. and Natural President Vice Colson, Treasurer Grocers. for David Mr. you may begin. Colson,

David Colson

XXXX for everyone Cottage for year and afternoon, joining first conference thank fiscal Vitamin Good by you us call. Grocers the quarter earnings Natural

call Dissinger, Financial Todd the Co-President; Chief with Kemper Officer. are On Isely, today and me

forward-looking most As a risks could risks company to and be the this including available uncertainties of recently variety update release detailed described filed and Actual results website obligation company's provided information materially a the conference statements from no forward-looking in on subject on are reminder, XX-Q in and forward-looking The due recording current on investors.naturalgrocers.com. the website, XX-K. are certain available differ call Today's a press of company's those based the is expectations during this and to will to at call statements and assumptions, uncertainties. statements. Forms undertakes the factors, and

the Kemper. call Now, I over will to turn

Kemper Isely

afternoon, Thank time you, David, and today. everyone. Thank join us to for the taking you good

We strong fiscal start are our XXXX. to with pleased

cost business our continued net our our In growth. average from home. of across increased the We prices. affordable strong and to follow resulting in positive initiatives. have to our We and competition. by positive we related We achieved remain and sales operating natural government delivering our continued improved principles supplements guidelines, size. differentiate a on from include We results momentum generated as at driven principles, comparable navigate saw distancing the an growth we see inflationary always store to And an in tailwind. challenges growth social communities our expansion foods first margin pandemic of and many earnings mandates. These saw increase daily continue by with We consumption focused founding supporting our net increased we and the gross margin been We income. effectively instrumental the of practice delivered which product and safety and XX.X% food driven with COVID expectations. trends at highest us leverage quality saw success sales further transaction XX.X% XX.X% pandemic consistent quarter, Customers key

Our to our {N}power to of platform continues loyalty million members. XX% quarter generating and support X.X and We sales members program ended campaigns efforts. e-mail penetration enables realized customer through capable refine our customer-specific us with marketing {N}power optimize The to net the offers.

great consumers provides Four meal which under for also lists which Grocers' customers. to $XX. and deals, We is campaign, our recipes simple of well These products, meals affordable Natural environment. tasty healthy Family Feed campaign timed uncertain further acceptance branded economic shopping saw Your and feature our of This for in provides recipes for this value

Grocers' XX.X% during National first grew two sales a by launched SKUs quarter. net branded new Our new during the and quarter. including products XX represented categories of X.X% penetration the We

of stocks we levels customers, preparing second year. are Out improvement remained experienced levels of at the represents, which meals Our and have prepackaged are third delivering an and with the growth of over bulk who at of strong with focused fiscal last fourth the resonate at end the consistent on healthy quarters our XXXX, home. offerings quarter

includes crew, store acts who in kindness support coaches, ourselves honors new our to Rooted of the our communities in to number spread wage and commitment. our shopping with behind quarter. our and force to their the serve. incremental We per guidance. bonus their $X ensuring the cooking guest Todd our nutritional crew Their clean, personalized of community the we programs: Education experience pay pride experience the implemented along a we and were XXXX. to to series permanent cost to wage health the sessions is March continued first driving With two diligence is let safe call customers. on The would quarter, increase over the goodXu we center that, me year-over-year to quarter convenient virtual wellbeing, first to Gratitude business the first our safe bonuses financial the for continued our of in turn and $X.X and Giveaway presenter in our continued and launched Nutrition hour and results health a In distribution good positive focus safety one providing in with our priority. cheer. crew addition approximately and million of like in Throughout we members shopping our to and quarter, which these program, During enhancements our goodXu Community I first program, the which energy and commitment discuss classes; crew thank

Todd Dissinger

another base. trends quarter store continued strong our Thank favorable afternoon, good delivered We you, with across Kemper, and everyone.

quarter, $XXX growth During grew XX.X% million sales XX.X%. average store daily the comparable first with to net sales of

increase Our offset basket of of result size comp by was down transaction partially increase X.X%. count XX.X%, a the which was

sales continue and as changing health trends consumer continue dynamics trends basket public and to a We these measures. social distancing saw reflect first through Our result transaction of quarter January.

in above-average was rate. at and during the with first well to XX.X% grocery quarterly share first single-digit margin a XX.X% comp the sales was trends. growth $X.XX recent was up period. or EBITDA product produce, to compared bulk margin. an earnings with well This million drivers sales first of diluted consistent our an the income quarter, experienced the in comp profit supplements the expansion increased million included increased exiting million during also quarter expenses earnings approximately of quarter Net first compared $XX.X XXXX. which closed million to partner Store store to a were in year with and XX.X% to several the XX.X% occupancy year in XX.X% quarter in we associated the inflation compares expenses of $XXX,XXX the of prior diluted of of Online in the The driven of as sales gross approximately that compared increase. margin past percentage represented consistent the penetration quarters. first XXXX. per in quarters in the as $X.XX $X.X dairy, fiscal rate with period. quarter. key $X.X driver growth fiscal Labor-related to of in leverage of a fiscal delivery related per with as XXXX. a a consistent is net recent Gross meat, low X%. by the costs quarter share to primary as Adjusted We expenses shrink through a X.X% Store expenses first frozen, some percentage $XX.X at Instacart income quarter of of experienced Dietary Looking lease rate, first sales the performed with increased sales prior

During of expenditures. cash from quarter, the in invested net first we and $XX.X capital generated million operations $X.X million

one quarter, and face compared the period. environment. new first two prior we position During opening balance to uncertain the a and are year stores store to operating liquidity We opened sheet strong we in new well-positioned the quarter the with ended

revolving cash XX, of $XX had and under credit December $XX.X facility. balance in As million no million XXXX, we our outstanding

X, cash term to $X.XX XXXX. Directors our Today has March share. we of quarterly Board close be secured business fully on of stockholders of March we As will XX, XXXX. The at was million of which December a record XX, previously announced a declared dividend drawn dividend paid $XX of XXXX that announced, on per loan, the as all

would I on to like Now company's announced confirm XXXX fiscal outlook, the previously XX, XXXX. November

light the environment in reflects rapidly related and COVID-XX of guidance current trends government evolving mandates. Our

company continue company that financial to cannot predict related performance impact the factors will the year. duration or the severity and While our operations pandemic mandates, the through these fiscal government the expects of and

to delivered we of pleased stores, sales of supported another For $XX to year million. achieve for dedication fiscal stores, expect between five the open average store performance In diluted quarter crew. expenditures fiscal $X.XX X%, per range three and closing, strong XXXX, between we achieve in the to our $X.XX, relocate six expect of the are goodXu capital new daily X% have to of share and growth negative comparable and earnings we to million by five $XX

be by the founding marketplace. our which principles, us guided in differentiate We continue to

Now I Thank up the questions. you. like lines for to would open

Operator

[Operator go Please Instructions] Research. And with our ahead Wolfe from first comes question. from question Greg Badishkanian your today

Spencer Hanus

comment Good similar results Hanus all of on first for afternoon. the you Spencer My And that? on the you regions? trends again across This is actually for Nice are guys. then on quarter-to-date Greg. seeing the question Could comps quarter. throughout just quarter cadence is

Kemper Isely

the for January Yes. quarter. were we were strongest the quarter. very approximately similar what experienced to the comps fairly was consistent month. December and November same. through October was comp the The entire

Todd Dissinger

variations And kind really there's of able mandates there in there mandates. driven no we and And of between It's by down. I'm state, really any lockdowns. terms aren't to up consistency Spencer sorry and determine

Spencer Hanus

That's us last that help sequentially? you unpack to ticked few versus how it. performance gross sort then have components in of peers your the you think seen just gaps sequentially terms And have they better led months? price Got they margins, up the the changed I quarter. of fourth Thanks. helpful. And Could the over there versus the your then,

Kemper Isely

you want Todd, answer do that. to

Todd Dissinger

Okay.

product product and gross driven saw that less Part occupancy question? So on the improvement driving an And sorry the the we slightly of another there margin. And margin, was part I'm improved was promotional margin. leverage in an by expense. shrink of

Kemper Isely

compared our the our our in stayed part I regards to same. to other competitors. pricing had tend our to … differential pricing We The competitors the to was compared about is say would

Spencer Hanus

it. Got

Kemper Isely

pricing better one except against have our for -- competitors. produce in of

Spencer Hanus

with be think That's stocks And to normal think of and of consistent out your XQ. out mentioned, stocks you I When XQ levels? will helpful. do you then, back were

Kemper Isely

so fiscal in improved I calendar another this be mean, quarter this bit this probably will they mean, have six at over month January. year, a so least, far quite I -- months. last It year.

Spencer Hanus

Yes.

about in thinking those And are shareholders how growth, and right the the in business terms of to capital How capital back square of levers? reinvesting returning allocation, balancing for are footage leverage level thinking versus and you Okay. you about growth?

Kemper Isely

far be as as goes, conservative. Well, very we'll borrowing

sheet very balance levered. that And Our way. not it keep is we'll

Spencer Hanus

Great. so much. Thank you

Kemper Isely

moderate have store will premium We find stores we at. sites to growth, as open

Operator

to and remarks. questions. turn additional showing like no gentlemen, the for at Instructions] any I'm ladies time, [Operator this over I'd And floor closing back management, to

Kemper Isely

discuss first to us joining our for much quarter very results. you Thank

our be healthy and a We Thanks. continue review grocer in with stay Goodbye. health-driven choice on to day. and look XXXX customers for, Please lie you have And results. our forward are safe. speaking ahead. of to the We quarter the opportunities confident that to great call, strive second next our to

Operator

conference that, gentlemen, we'll and attending. do call. with for conclude today's you We Ladies thank

your now lines. disconnect may You

Natural Grocers by Vitamin Cottage (NGVC) 5 Feb 212021 Q1 Earnings call transcript