Natural Grocers by Vitamin Cottage Inc

Previous wording

The growth in the organic and natural foods industry and growing consumer interest in health and nutrition have enabled us to continue to open new stores and enter new markets. During the five fiscal years ended September 30, 2023, we increased our store count at a compound annual growth rate of 2.2%. In fiscal year 2023, we opened three new stores, relocated/remodeled three existing stores and closed two stores. We plan to open four to six new stores and relocate/remodel four to six existing stores in fiscal year 2024. During the six months ended March 31, 2024, we opened three new stores and relocated/remodeled one existing store. Between April 1, 2024 and the date of this Form 10-Q, we did not open any new stores and relocated/remodeled one existing store.

Current wording

The growth in the organic and natural foods industry and growing consumer interest in health and nutrition have enabled us to continue to open new stores and enter new markets. During the five fiscal years ended September 30, 2023, we increased our store count at a compound annual growth rate of 2.2%. In fiscal year 2023, we opened three new stores, relocated/remodeled three existing stores and closed two stores. We plan to open four new stores and relocate/remodel five existing stores in fiscal year 2024. During the nine months ended June 30, 2024, we opened three new stores and relocated/remodeled four existing stores. Between July 1, 2024 and the date of this Form 10-Q, we opened one new store and did not relocate/remodel any existing stores.

Previous wording

Key highlights of our performance for the three and six months ended March 31, 2024 are discussed briefly below and in further detail throughout this MD&A. Key financial metrics, including, but not limited to, daily average comparable store sales, are defined in the section “Key Financial Metrics in Our Business,” presented later in this MD&A.

Current wording

Key highlights of our performance for the three and nine months ended June 30, 2024 are discussed briefly below and in further detail throughout this MD&A. Key financial metrics, including, but not limited to, daily average comparable store sales, are defined in the section “Key Financial Metrics in Our Business,” presented later in this MD&A.

Previous wording

During fiscal year 2023 and the first half of fiscal year 2024, the costs of certain goods we sell were impacted by levels of inflation higher than we have experienced in recent years, resulting in part from supply disruptions, ongoing global conflicts, increased shipping and transportation costs, increased commodity costs, increased labor costs in the supply chain, monetary policy actions, other disruptions and the uncertain economic environment. In the aggregate, management estimates that the Company experienced annualized cost inflation of approximately 2% in the second quarter of fiscal year 2024. Cost inflation estimates are based on individual like items sold during the periods being compared. The impact of inflation on our sales and profitability is influenced in part by our ability to adjust our retail prices accordingly. While we have been able to mitigate this impact to date through our pricing strategies, we are unable to predict how long the current inflationary environment will continue or the impact of inflationary trends on consumer behavior and our sales and profitability in the future.

Current wording

In recent years, the costs of certain goods we sell were impacted by levels of inflation higher than we have historically experienced, resulting in part from supply disruptions, ongoing global conflicts, increased shipping and transportation costs, increased commodity costs, increased labor costs in the supply chain, monetary policy actions, other disruptions and the uncertain economic environment. In the aggregate, management estimates that the Company experienced annualized cost inflation of approximately 1% in the third quarter of fiscal year 2024. Cost inflation estimates are based on individual like items sold during the periods being compared. The impact of inflation on our sales and profitability is influenced in part by our ability to adjust our retail prices accordingly. While we have been able to mitigate this impact to date through our pricing strategies, we are unable to predict how long the current inflationary environment will continue or the impact of inflationary trends on consumer behavior and our sales and profitability in the future.

Previous wording

Store expenses consist of store-level expenses, such as salary and benefits, share-based compensation, supplies, utilities, depreciation, advertising, bank credit card charges and other related costs associated with operations and purchasing support. Depreciation expense included in store expenses relates to depreciation for assets directly used at the stores, including depreciation on land improvements, leasehold improvements, fixtures and equipment and technology. Depreciation expenses on the lease assets related to the finance leases of the stores are also considered store expenses. Additionally, store expenses include any gain or loss recorded on the disposal of fixed assets, primarily related to store relocations, as well as store closing costs. Store expenses also include long-lived asset impairment charges. The majority of store expenses consist of labor-related expenses, which we closely manage and which trend closely with sales. Labor-related expenses as a percentage of net sales tend to be higher at new stores compared to comparable stores, as new stores require a minimum level of staffing in order to maintain adequate levels of customer service combined with lower sales. As new stores increase their sales, labor-related expenses as a percentage of net sales typically decrease.

Current wording

Store expenses consist of store-level expenses, such as salary and benefits, share-based compensation, supplies, utilities, depreciation, advertising, bank credit card charges and other related costs associated with operations and purchasing support. Depreciation expense included in store expenses relates to depreciation for assets directly used at the stores, including depreciation on land improvements, leasehold improvements, fixtures and equipment and technology. Depreciation expenses on the lease assets related to the finance leases of the stores are also considered store expenses. Additionally, store expenses include any gain or loss recorded on the disposal of fixed assets and lease terminations, primarily related to store relocations, as well as store closing costs. Store expenses also include long-lived asset impairment charges. The majority of store expenses consists of labor-related expenses, which we closely manage and which trend closely with sales. Labor-related expenses as a percentage of net sales tend to be higher at new stores compared to comparable stores, as new stores require a minimum level of staffing in order to maintain adequate levels of customer service combined with lower sales. As new stores increase their sales, labor-related expenses as a percentage of net sales typically decrease.

Previous wording

Net sales increased $24.8 million, or 8.8%, to $308.1 million for the three months ended March 31, 2024 compared to $283.2 million for the three months ended March 31, 2023, due to a $21.1 million increase in comparable store sales and a $5.2 million increase in new store sales, partially offset by a $1.5 million decrease in net sales related to closed stores. Daily average comparable store sales increased 7.5% for the three months ended March 31, 2024 compared to the three months ended March 31, 2023. The daily average comparable store sales increase resulted from a 3.9% increase in daily average transaction size and a 3.5% increase in daily average transaction count. Comparable store average transaction size was $47.54 for the three months ended March 31, 2024. The increase in net sales during the three months ended March 31, 2024 was driven by increases in transaction counts, items per transaction, retail prices, and new store sales. Marketing initiatives, including {N}power® rewards program offers and market-specific campaigns, enhanced customer engagement, which contributed to sales growth.

Current wording

Net sales increased $27.3 million, or 9.7%, to $309.1 million for the three months ended June 30, 2024 compared to $281.8 million for the three months ended June 30, 2023, due to a $23.6 million increase in comparable store sales and a $5.4 million increase in new store sales, partially offset by a $1.7 million decrease in net sales related to closed stores. Daily average comparable store sales increased 7.2% for the three months ended June 30, 2024 compared to the three months ended June 30, 2023. The daily average comparable store sales increase resulted from a 4.7% increase in daily average transaction count and a 2.4% increase in daily average transaction size. Comparable store average transaction size was $46.76 for the three months ended June 30, 2024. The increase in net sales during the three months ended June 30, 2024 was driven by increases in transaction counts, items per transaction, retail prices, and new store sales. Marketing initiatives, including {N}power® rewards program offers and market-specific campaigns, enhanced customer engagement, which contributed to sales growth.

Previous wording

Gross profit increased $7.9 million, or 9.6%, to $90.4 million for the three months ended March 31, 2024 compared to $82.5 million for the three months ended March 31, 2023. Gross profit reflects earnings after product and store occupancy costs. Gross margin increased to 29.3% for the three months ended March 31, 2024 compared to 29.1% for the three months ended March 31, 2023. The increase in gross margin during the three months ended March 31, 2024 was driven by store occupancy cost leverage, partially offset by lower product margin attributable to product mix.

Current wording

Gross profit increased $8.9 million, or 11.0%, to $90.3 million for the three months ended June 30, 2024 compared to $81.4 million for the three months ended June 30, 2023. Gross profit reflects earnings after product and store occupancy costs. Gross margin increased to 29.2% for the three months ended June 30, 2024 compared to 28.9% for the three months ended June 30, 2023. The increase in gross margin during the three months ended June 30, 2024 was driven by store occupancy cost leverage, partially offset by lower product margin attributable to product mix.

Previous wording

Store expenses increased $4.0 million, or 6.2%, to $69.2 million for the three months ended March 31, 2024 compared to $65.2 million for the three months ended March 31, 2023. The increase in store expenses was primarily driven by higher compensation expenses. Store expenses as a percentage of net sales were 22.5% and 23.0% for the three months ended March 31, 2024 and 2023, respectively. The decrease in store expenses as a percentage of net sales reflects expense leverage.

Current wording

Store expenses increased $4.9 million, or 7.9%, to $67.6 million for the three months ended June 30, 2024 compared to $62.6 million for the three months ended June 30, 2023. The increase in store expenses was primarily driven by higher compensation expenses. Store expenses as a percentage of net sales were 21.9% and 22.2% for the three months ended June 30, 2024 and 2023, respectively. The decrease in store expenses as a percentage of net sales reflects expense leverage.

Previous wording

Administrative expenses increased $0.9 million, or 10.7%, to $9.5 million for the three months ended March 31, 2024 compared to $8.6 million for the three months ended March 31, 2023. The increase in administrative expenses was driven by higher compensation expenses. Administrative expenses as a percentage of net sales were 3.1% and 3.0% for the three months ended March 31, 2024 and 2023, respectively.

Current wording

Administrative expenses increased $0.2 million, or 2.5%, to $9.5 million for the three months ended June 30, 2024 compared to $9.3 million for the three months ended June 30, 2023. The increase in administrative expenses was driven by higher compensation expenses. Administrative expenses as a percentage of net sales were 3.1% and 3.3% for the three months ended June 30, 2024 and 2023, respectively.

Previous wording

Pre-opening expenses were $0.4 million for the three months ended March 31, 2024 compared to $0.2 million for the three months ended March 31, 2023.

Current wording

Pre-opening expenses were $0.4 million for each of the three months ended June 30, 2024 and 2023.

Previous wording

Interest expense, net of capitalized interest, was $1.2 million for the three months ended March 31, 2024 compared to $0.8 million for the three months ended March 31, 2023.

Current wording

Interest expense, net of capitalized interest, was $1.1 million for the three months ended June 30, 2024 compared to $0.8 million for the three months ended June 30, 2023.

Previous wording

Income tax expense increased $0.4 million for the three months ended March 31, 2024 to $2.1 million compared to $1.7 million for the three months ended March 31, 2023. The Company’s effective income tax rate was 21.1% and 22.5% for the three months ended March 31, 2024 and 2023, respectively.

Current wording

Income tax expense increased $1.4 million for the three months ended June 30, 2024 to $2.6 million compared to $1.2 million for the three months ended June 30, 2023. The Company’s effective income tax rate was 21.9% and 14.1% for the three months ended June 30, 2024 and 2023, respectively. The increase in the effective income tax rate was primarily attributable to lower food donation deductions recorded during the three months ended June 30, 2024.

Previous wording

Net income was $8.0 million, or $0.35 diluted earnings per share, for the three months ended March 31, 2024 compared to $5.9 million, or $0.26 diluted earnings per share, for the three months ended March 31, 2023.

Current wording

Net income was $9.2 million, or $0.40 diluted earnings per share, for the three months ended June 30, 2024 compared to $7.1 million, or $0.31 diluted earnings per share, for the three months ended June 30, 2023.

Previous wording

Net sales increased $46.1 million, or 8.2%, to $609.8 million for the six months ended March 31, 2024 compared to $563.7 million for the six months ended March 31, 2023, due to a $38.4 million increase in comparable store sales and a $10.6 million increase in new store sales, partially offset by a $2.9 million decrease in net sales related to closed stores. Daily average comparable store sales increased 6.9% for the six months ended March 31, 2024 compared to the six months ended March 31, 2023. The daily average comparable store sales increase for the six months ended March 31, 2024 resulted from a 3.4% increase in daily average transaction count and a 3.3% increase in daily average transaction size. Comparable store average transaction size was $47.43 for the six months ended March 31, 2024. The increase in net sales during the six months ended March 31, 2024 was driven by increases in transaction counts, retail prices, new store sales, and items per transaction. Marketing initiatives, including {N}power® rewards program offers and market-specific campaigns, enhanced customer engagement, which contributed to sales growth.

Current wording

Net sales increased $73.4 million, or 8.7%, to $918.9 million for the nine months ended June 30, 2024 compared to $845.5 million for the nine months ended June 30, 2023, due to a $62.0 million increase in comparable store sales and a $16.0 million increase in new store sales, partially offset by a $4.6 million decrease in net sales related to closed stores. Daily average comparable store sales increased 7.0% for the nine months ended June 30, 2024 compared to the nine months ended June 30, 2023. The daily average comparable store sales increase for the nine months ended June 30, 2024 resulted from a 3.9% increase in daily average transaction count and a 3.0% increase in daily average transaction size. Comparable store average transaction size was $47.20 for the nine months ended June 30, 2024. The increase in net sales during the nine months ended June 30, 2024 was driven by increases in transaction counts, retail prices, items per transaction, and new store sales. Marketing initiatives, including {N}power rewards program offers and market-specific campaigns, enhanced customer engagement, which contributed to sales growth.

Previous wording

Gross profit increased $17.9 million, or 11.1%, to $179.1 million for the six months ended March 31, 2024 compared to $161.2 million for the six months ended March 31, 2023. Gross profit reflects earnings after product and store occupancy costs. Gross margin increased to 29.4% for the six months ended March 31, 2024 compared to 28.6% for the six months ended March 31, 2023. The increase in gross margin during the six months ended March 31, 2024 was driven by higher product margin attributed to effective pricing and promotions, and store occupancy cost leverage.

Current wording

Gross profit increased $26.9 million, or 11.1%, to $269.4 million for the nine months ended June 30, 2024 compared to $242.6 million for the nine months ended June 30, 2023. Gross profit reflects earnings after product and store occupancy costs. Gross margin increased to 29.3% for the nine months ended June 30, 2024 compared to 28.7% for the nine months ended June 30, 2023. The increase in gross margin during the nine months ended June 30, 2024 was primarily driven by store occupancy cost leverage and higher product margin attributed to effective pricing and promotions.

Previous wording

Store expenses increased $8.4 million, or 6.5%, to $137.2 million for the six months ended March 31, 2024 compared to $128.8 million for the six months ended March 31, 2023. The increase in store expenses was primarily driven by higher compensation expenses. Store expenses as a percentage of net sales were 22.5% and 22.8% for the six months ended March 31, 2024 and 2023, respectively. The decrease in store expenses as a percentage of net sales reflects expense leverage.

Current wording

Store expenses increased $13.4 million, or 7.0%, to $204.8 million for the nine months ended June 30, 2024 compared to $191.4 million for the nine months ended June 30, 2023. The increase in store expenses was primarily driven by higher compensation expenses. Store expenses as a percentage of net sales were 22.3% and 22.6% for the nine months ended June 30, 2024 and 2023, respectively. The decrease in store expenses as a percentage of net sales reflects expense leverage.

Previous wording

Administrative expenses increased $2.1 million, or 12.3%, to $18.9 million for the six months ended March 31, 2024 compared to $16.9 million for the six months ended March 31, 2023. The increase in administrative expenses was driven by higher compensation expenses. Administrative expenses as a percentage of net sales were 3.1% and 3.0% for the six months ended March 31, 2024 and 2023, respectively.

Current wording

Administrative expenses increased $2.3 million, or 8.8%, to $28.5 million for the nine months ended June 30, 2024 compared to $26.2 million for the nine months ended June 30, 2023. The increase in administrative expenses was driven by higher compensation expenses. Administrative expenses as a percentage of net sales were 3.1% for each of the nine months ended June 30, 2024 and 2023.

Previous wording

Interest expense, net of capitalized interest, was $2.1 million for the six months ended March 31, 2024 compared to $1.6 million for the six months ended March 31, 2023.

Current wording

Interest expense, net of capitalized interest, was $3.1 million for the nine months ended June 30, 2024 compared to $2.5 million for the nine months ended June 30, 2023.

Previous wording

Income tax expense increased $1.4 million for the six months ended March 31, 2024 to $4.3 million compared to $2.9 million for the six months ended March 31, 2023. The Company’s effective income tax rate was 21.4% and 22.1% for the six months ended March 31, 2024 and 2023, respectively.

Current wording

Income tax expense increased $2.8 million for the nine months ended June 30, 2024 to $6.9 million compared to $4.1 million for the nine months ended June 30, 2023. The Company’s effective income tax rate was 21.6% and 19.1% for the nine months ended June 30, 2024 and 2023, respectively. The increase in the effective income tax rate was primarily attributable to lower food donation deductions recorded during the nine months ended June 30, 2024.

Previous wording

Net income was $15.7 million, or $0.68 diluted earnings per share, for the six months ended March 31, 2024 compared to $10.3 million, or $0.45 diluted earnings per share, for the six months ended March 31, 2023.

Current wording

Net income was $24.9 million, or $1.08 diluted earnings per share, for the nine months ended June 30, 2024 compared to $17.4 million, or $0.76 diluted earnings per share, for the nine months ended June 30, 2023.

Previous wording

EBITDA increased 21.7% to $19.0 million for the three months ended March 31, 2024 compared to $15.6 million for the three months ended March 31, 2023. EBITDA increased 28.1% to $37.2 million for the six months ended March 31, 2024 compared to $29.1 million for the six months ended March 31, 2023. EBITDA as a percentage of net sales was 6.2% and 5.5% for the three months ended March 31, 2024 and 2023, respectively. EBITDA as a percentage of net sales was 6.1% and 5.2% for the six months ended March 31, 2024 and 2023, respectively.

Current wording

EBITDA increased 27.0% to $20.7 million for the three months ended June 30, 2024 compared to $16.3 million for the three months ended June 30, 2023. EBITDA increased 27.7% to $57.9 million for the nine months ended June 30, 2024 compared to $45.4 million for the nine months ended June 30, 2023. EBITDA as a percentage of net sales was 6.7% and 5.8% for the three months ended June 30, 2024 and 2023, respectively. EBITDA as a percentage of net sales was 6.3% and 5.4% for the nine months ended June 30, 2024 and 2023, respectively.

Previous wording

Adjusted EBITDA increased 17.4% to $19.7 million for the three months ended March 31, 2024 compared to $16.8 million for the three months ended March 31, 2023. Adjusted EBITDA increased 25.6% to $38.5 million for the six months ended March 31, 2024 compared to $30.6 million for the six months ended March 31, 2023. Adjusted EBITDA as a percentage of net sales was 6.4% and 5.9% for the three months ended March 31, 2024 and 2023, respectively. Adjusted EBITDA as a percentage of net sales was 6.3% and 5.4% for the six months ended March 31, 2024 and 2023, respectively.

Current wording

Adjusted EBITDA increased 32.8% to $22.2 million for the three months ended June 30, 2024 compared to $16.7 million for the three months ended June 30, 2023. Adjusted EBITDA increased 28.1% to $60.6 million for the nine months ended June 30, 2024 compared to $47.3 million for the nine months ended June 30, 2023. Adjusted EBITDA as a percentage of net sales was 7.2% and 5.9% for the three months ended June 30, 2024 and 2023, respectively. Adjusted EBITDA as a percentage of net sales was 6.6% and 5.6% for the nine months ended June 30, 2024 and 2023, respectively.

Previous wording

Our ongoing primary sources of liquidity are cash generated from operations, current balances of cash and cash equivalents and borrowings under our Revolving Facility. Our Credit Facility consists of the $75.0 million Revolving Facility and the fully drawn $35.0 million Term Loan Facility. Our primary uses of cash are for purchases of inventory, operating expenses, capital expenditures predominantly in connection with opening, relocating and remodeling stores, debt service, cash dividends, share repurchases and corporate taxes. As of March 31, 2024, we had $11.0 million in cash and cash equivalents and $62.1 million available for borrowing under our Revolving Facility.

Current wording

Our ongoing primary sources of liquidity are cash generated from operations, current balances of cash and cash equivalents and borrowings under our Revolving Facility. Our Credit Facility consists of the $75.0 million Revolving Facility and the fully drawn $35.0 million Term Loan Facility. Our primary uses of cash are for purchases of inventory, operating expenses, capital expenditures predominantly in connection with opening, relocating and remodeling stores, debt service, cash dividends, share repurchases and corporate taxes. As of June 30, 2024, we had $13.9 million in cash and cash equivalents and $56.2 million available for borrowing under our Revolving Facility.

Previous wording

In May 2016, our Board authorized a two-year share repurchase program pursuant to which the Company may repurchase up to $10.0 million in shares of the Company’s common stock. Our Board subsequently extended the share repurchase program – most recently in May 2024 – and the program will terminate on May 31, 2026. We did not repurchase any shares during the three months ended March 31, 2024. The dollar value of the shares of the Company’s common stock that may yet be repurchased under the share repurchase program is $8.1 million. Potential future share repurchases under the share repurchase program could be funded by operating cash flow, excess cash balances or borrowings under our Revolving Facility. The timing and the number of shares repurchased, if any, will be dictated by our capital needs and stock market conditions.

Current wording

In May 2016, our Board authorized a two-year share repurchase program pursuant to which the Company may repurchase up to $10.0 million in shares of the Company’s common stock. Our Board subsequently extended the share repurchase program – most recently in May 2024 – and the current program will terminate on May 31, 2026. We did not repurchase any shares during the three months ended June 30, 2024. The dollar value of the shares of the Company’s common stock that may yet be repurchased under the share repurchase program is $8.1 million. Potential future share repurchases under the share repurchase program could be funded by operating cash flow, excess cash balances or borrowings under our Revolving Facility. The timing and the number of shares repurchased, if any, will be dictated by our capital needs and stock market conditions.

Previous wording

We paid a quarterly cash dividend of $0.10 per share of common stock in each of the first two quarters of fiscal year 2024 and a special cash dividend of $1.00 per share of common stock in the first quarter of fiscal year 2024. The special cash dividend was funded through available cash and borrowings under our Revolving Facility. On May 8, 2024, our Board approved the payment of a quarterly cash dividend of $0.10 per share of common stock to be paid on June 19, 2024 to stockholders of record as of the close of business on June 3, 2024.

Current wording

We paid a quarterly cash dividend of $0.10 per share of common stock in each of the first three quarters of fiscal year 2024 and a special cash dividend of $1.00 per share of common stock in the first quarter of fiscal year 2024. The special cash dividend was funded through available cash and borrowings under our Revolving Facility. On August 7, 2024, our Board approved the payment of a quarterly cash dividend of $0.10 per share of common stock to be paid on September 18, 2024 to stockholders of record as of the close of business on September 3, 2024.

Previous wording

We plan to continue to open new stores in the future, which may require us to borrow additional amounts under the Revolving Facility from time to time. We believe that cash and cash equivalents, together with the cash generated from operations and the borrowing availability under our Revolving Facility, will be sufficient to meet our working capital needs and planned capital expenditures, including capital expenditures related to new store needs, repayment of debt, stock repurchases and dividends for the next 12 months and the foreseeable future. Our working capital position benefits from the fact that we generally collect cash from sales to customers the same day or, in the case of credit or debit card transactions, within days from the related sale.

Current wording

We plan to continue to open new stores and relocate/remodel existing stores in the future, which may require us to borrow additional amounts under the Revolving Facility from time to time. We believe that cash and cash equivalents, together with the cash generated from operations and the borrowing availability under our Revolving Facility, will be sufficient to meet our working capital needs and planned capital expenditures, including capital expenditures related to new store needs, repayment of debt, stock repurchases and dividends for the next 12 months and the foreseeable future. Our working capital position benefits from the fact that we generally collect cash from sales to customers the same day or, in the case of credit or debit card transactions, within days from the related sale.

Previous wording

Net cash provided by operating activities consists primarily of net income adjusted for non-cash items, including depreciation and amortization, impairment of long-lived assets and store closures, share-based compensation, and changes in deferred taxes, and the effect of working capital changes. Cash provided by operating activities increased $2.0 million, or 5.7%, to $36.8 million for the six months ended March 31, 2024 compared to $34.9 million for the six months ended March 31, 2023. The increase in cash provided by operating activities was primarily due to an increase in cash provided by net income as adjusted for non-cash items, partially offset by a decrease in cash provided by working capital.

Current wording

Net cash provided by operating activities consists primarily of net income adjusted for non-cash items, including depreciation and amortization, impairment of long-lived assets and store closures, share-based compensation, and changes in deferred taxes, and the effect of working capital changes. Cash provided by operating activities increased $13.1 million, or 36.3%, to $49.3 million for the nine months ended June 30, 2024 compared to $36.2 million for the nine months ended June 30, 2023. The increase in cash provided by operating activities was due to increases in both cash provided by working capital and net income as adjusted for non-cash items.

Previous wording

Net cash used in investing activities increased $4.7 million, or 26.7%, to $22.5 million for the six months ended March 31, 2024 compared to $17.8 million for the six months ended March 31, 2023. This increase was primarily the result of an increase in property and equipment of $5.2 million, partially offset by a decrease in other intangibles of $0.5 million during the six months ended March 31, 2024 compared to the six months ended March 31, 2023, and was attributed to the timing of new store openings, relocations/remodels, and software projects under development.

Current wording

Net cash used in investing activities increased $7.5 million, or 30.9%, to $31.8 million for the nine months ended June 30, 2024 compared to $24.3 million for the nine months ended June 30, 2023. This increase was primarily the result of an increase in property and equipment of $7.8 million, partially offset by a decrease in other intangibles of $0.3 million during the nine months ended June 30, 2024 compared to the nine months ended June 30, 2023, and was attributed to the timing of new store openings, relocations/remodels, and software projects under development.

Previous wording

We plan to spend approximately $7.5 million to $16.5 million on capital expenditures during the remainder of fiscal year 2024 in connection with expected new store openings and store relocations/remodels.

Current wording

We plan to spend approximately $3.2 million to $7.2 million on capital expenditures during the remainder of fiscal year 2024 primarily in connection with expected new store openings and store relocations/remodels.

Previous wording

Acquisition of property and equipment not yet paid increased $3.3 million to $5.4 million for the six months ended March 31, 2024 compared to $2.0 million for the six months ended March 31, 2023 primarily due to the timing of payments related to new store openings and relocations/remodels.

Current wording

Acquisition of property and equipment not yet paid decreased $3.7 million to $2.6 million for the nine months ended June 30, 2024 compared to $6.2 million for the nine months ended June 30, 2023 primarily due to the timing of payments related to new store openings and relocations/remodels.

Previous wording

Net cash used in financing activities consists primarily of borrowings and repayments under our Credit Facility and dividends paid to stockholders. Net cash used in financing activities was $21.7 million for the six months ended March 31, 2024 compared to $10.2 million for the six months ended March 31, 2023. During the six months ended March 31, 2024, we paid cash dividends of $27.3 million, including a special cash dividend to stockholders of $22.7 million.

Current wording

Net cash used in financing activities consists primarily of borrowings and repayments under our Credit Facility and dividends paid to stockholders. Net cash used in financing activities was $21.9 million for the nine months ended June 30, 2024 compared to $15.3 million for the nine months ended June 30, 2023. During the nine months ended June 30, 2024, we paid cash dividends of $29.6 million, including a special cash dividend to stockholders of $22.7 million.

Previous wording

We had $11.4 million and no amounts outstanding under the Revolving Facility as of March 31, 2024 and September 30, 2023, respectively. As of March 31, 2024 and September 30, 2023, we had undrawn, issued and outstanding letters of credit of $1.5 million, which were reserved against the amount available for borrowing under the Revolving Facility. We had $62.1 million and $48.5 million available for borrowing under the Revolving Facility as of March 31, 2024 and September 30, 2023, respectively. We had $3.7 million of outstanding borrowings under the fully drawn Term Loan Facility as of March 31, 2024.

Current wording

We had $16.6 million and no amounts outstanding under the Revolving Facility as of June 30, 2024 and September 30, 2023, respectively. As of June 30, 2024 and September 30, 2023, we had undrawn, issued and outstanding letters of credit of $2.2 million and $1.5 million, respectively, which were reserved against the amount available for borrowing under the Revolving Facility. We had $56.2 million and $48.5 million available for borrowing under the Revolving Facility as of June 30, 2024 and September 30, 2023, respectively. We had $1.7 million of outstanding borrowings under the fully drawn Term Loan Facility as of June 30, 2024.