Revenue during the quarter grew 11.48 percent to $181.04 million from $162.40 million in the previous year period. Gross margin for the quarter contracted 67 basis points over the previous year period to 28.14 percent. Total expenses were 98.22 percent of quarterly revenues, up from 96.57 percent for the same period last year. That has resulted in a contraction of 165 basis points in operating margin to 1.78 percent.

Operating income for the quarter was $3.22 million, compared with $5.57 million in the previous year period.

“We continued to execute our core strategies during the fourth quarter while navigating the evolving food retailing environment,” said Kemper Isely, Co-President. “Our growth strategy resulted in the opening of 23 new stores, the relocation of four stores and the remodel of one store during fiscal 2016. As we enter fiscal 2017, we remain focused on our expanded sales initiatives and aggressively controlling costs, while leveraging our founding principles to ensure we are providing our customers a superior solution for healthy, natural and nutritious food shopping.”

Natural Grocers by Vitamin Cottage forecasts revenue to grow in the range of 1.40 percent to 1.60 percent for the fiscal year 2017. For fiscal year 2017, the company expects diluted earnings per share to be in the range of $0.50 to $0.58.

The company has spent $53.74 million cash to meet investing activities during the year as against cash outgo of $42.34 million in the last year. It has incurred net capital expenditure of $53.74 million on net basis during the year, up 46.28 percent or $17 million from year ago.

Cash flow from financing activities was $26.02 million for the year as against cash outgo of $0.86 million in the last year period.

Cash and cash equivalents stood at $4.02 million as on Sep. 30, 2016, up 37.80 percent or $1.10 million from $2.92 million on Sep. 30, 2015.

Working capital increases sharply
Natural Grocers by Vitamin Cottage, Inc has recorded an increase in the working capital over the last year. It stood at $30.79 million as at Sep. 30, 2016, up 148.17 percent or $18.38 million from $12.41 million on Sep. 30, 2015. Current ratio was at 1.46 as on Sep. 30, 2016, up from 1.18 on Sep. 30, 2015.

Cash conversion cycle (CCC) has increased to 13 days for the quarter from 11 days for the last year period. Days sales outstanding were almost stable at 1 days for the quarter, when compared with the last year period.

Days inventory outstanding was almost stable at 31 days for the quarter, when compared with the last year period. At the same time, days payable outstanding was almost stable at 19 days for the quarter, when compared with the previous year period.