Albertsons Companies, Inc. Reports Fourth Quarter and Full Year Results
Albertsons Companies (NYSE: ACI) reported strong fiscal 2021 results, with fourth-quarter net income of $455 million ($0.79 per share), driven by a 7.5% increase in identical sales and a 5% rise in digital sales. Fiscal 2021 net income reached $1.62 billion ($2.70 per share). However, identical sales saw a slight decrease of 0.1% for the year. Looking ahead, the company projects fiscal 2022 identical sales growth of 2% to 3% and adjusted EBITDA between $4.15 billion and $4.25 billion. A board-led review for strategic options has commenced to enhance growth and shareholder value.
- Fourth-quarter net income of $455 million, or $0.79 per share.
- Fourth-quarter adjusted EBITDA of $1.07 billion, up from $916.9 million in Q4 2020.
- Fiscal 2021 net income totaled $1.62 billion, or $2.70 per share.
- Fourth-quarter identical sales grew 7.5%, with a two-year stacked growth of 19.3%.
- Digital sales increased 5%, with two-year stacked growth of 263%.
- Selling and administrative expenses decreased to 24.9% of net sales in Q4 2021.
- Fiscal 2021 identical sales decreased 0.1%.
- Gross margin rate fell to 28.7% in Q4 2021 from 28.9% in Q4 2020.
- Interest expense slightly decreased but remains significant at $108 million in Q4 2021.
- Decrease in other income, down to $47.5 million in Q4 2021 from $107.2 million in Q4 2020.
Delivers Fiscal 2021 Results Above Outlook
Provides Fiscal 2022 Outlook
Fourth Quarter of Fiscal 2021 Highlights
-
Identical sales increased
7.5% ; on a two-year stacked basis identical sales growth was19.3% -
Digital sales increased
5% ; on a two-year stacked basis digital sales growth was287% -
Net income of
, or$455 million per share$0.79 -
Adjusted net income of
, or$437 million per share$0.75 -
Adjusted EBITDA of
$1,074 million
Fiscal 2021 Highlights
-
Identical sales decreased
0.1% ; on a two-year stacked basis identical sales growth was16.8% -
Digital sales increased
5% ; on a two-year stacked basis digital sales growth was263% -
Net income of
, or$1,620 million per share$2.70 -
Adjusted net income of
, or$1,781 million per share$3.07 -
Adjusted EBITDA of
$4,398 million
"We are pleased with our fourth quarter and full-year 2021 results and the continuing momentum we are seeing as we enter 2022," said
Fourth Quarter of Fiscal 2021 Results
Net sales and other revenue was
Gross margin rate decreased to
Selling and administrative expenses decreased to
Interest expense, net was
Other income, net was
Income tax expense was
Net income was
Adjusted net income was
Adjusted EBITDA was
Supplemental Two-Year Results
The following table provides a comparison of the fourth quarter of fiscal 2021 and 52 weeks ended
|
Fourth Quarter of Fiscal 2021
|
|
Fiscal 2021
|
Identical sales two-year stacked (1) |
19.3 % |
|
16.8 % |
Net income per Class A common share two-year CAGR |
156.6 % |
|
83.7 % |
Adjusted net income per Class A common share two-year CAGR |
50.8 % |
|
71.8 % |
Net income two-year CAGR |
159.1 % |
|
86.3 % |
Adjusted net income two-year CAGR |
50.0 % |
|
70.6 % |
Adjusted EBITDA two-year CAGR |
19.2 % |
|
24.6 % |
% of net sales and other revenue: |
|
|
|
Gross margin (1) |
Increased 10 basis points |
|
Increased 60 basis points |
Selling and administrative expenses (2) |
Decreased 110 basis points |
|
Decreased 115 basis points |
(1) Excluding fuel. |
|||
(2) Excluding fuel and the Combined Plan withdrawal. |
Net sales and other revenue was
Gross margin rate increased to
Selling and administrative expenses decreased to
Capital Allocation
During fiscal 2021, capital expenditures were
Strategic Alternatives
On
Convertible Preferred Stock
As of
Fiscal 2022 Outlook
The Company is providing its fiscal 2022 outlook as follows:
-
Identical sales in fiscal 2022 of approximately
2% to3% -
Adjusted EBITDA in the range of
to$4.15 billion $4.25 billion -
Adjusted net income per share in the range of
to$2.70 per share$2.85 -
Effective tax rate in the range of
23% to24% excluding discrete items -
Capital expenditures in the range of
to$2.0 billion $2.1 billion
The Company is unable to provide a full reconciliation of the GAAP and Non-GAAP Measures (as defined below) used in the fiscal 2022 outlook without unreasonable effort because it is not possible to predict certain of the adjustment items with a reasonable degree of certainty. This information is dependent upon future events and may be outside of the Company's control and could have a significant impact on its GAAP financial results for fiscal 2022. The expected effective tax rate does not reflect potential rate adjustments for the resolution of tax audits or potential changes in tax laws, which cannot be predicted with reasonable certainty.
Conference Call
The Company will hold a conference call today at
About
Forward-Looking Statements and Factors That Impact Our Operating Results and Trends
This press release includes "forward-looking statements" within the meaning of the federal securities laws. The "forward-looking statements" include our current expectations, assumptions, estimates and projections about our business and our industry. They include statements relating to our future operating or financial performance which the Company believes to be reasonable at this time. You can identify forward-looking statements by the use of words such as "outlook," "may," "should," "could," "estimates," "predicts," "potential," "continue," "anticipates," "believes," "plans," "expects," "future" and "intends" and similar expressions which are intended to identify forward-looking statements.
These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond our control and difficult to predict, including, among others:
- changes in macroeconomic conditions and uncertainty regarding the geopolitical environment;
- retail consumer behavior and environment and the Company's industry;
- ability to attract and retain qualified associates and negotiate acceptable contracts with labor unions;
- failure to achieve productivity initiatives;
- increased rates of food price inflation, as well as fuel and commodity prices;
- availability of agricultural commodities and raw materials used in our food products; and
- factors related to the continued impact of the COVID-19 pandemic, about which there are still many unknowns, including its duration, recurrence, new variants, status and effectiveness of vaccinations, duration and scope of related government orders, financial assistance programs, mandates and regulations and the extent of the overall impact to our business and the communities we serve.
All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements and risk factors. Forward-looking statements contained in this press release reflect our view only as of the date of this press release. We undertake no obligation, other than as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
While certain aspects of our financial results have been favorably impacted by increased demand during the COVID-19 pandemic, in addition to favorable consumer conditions including incremental financial assistance provided by various government agencies, our business continues to experience challenges to meet customer demand. We have experienced increased labor shortages due to COVID-19 variants resulting in transportation and retail store disruptions. Together with labor shortages and higher demand for talent, the current economic environment is driving higher wages. Labor shortages could also impact our ability to negotiate acceptable contracts with labor unions which could result in strikes by affected workers and thereby significantly disrupt our operations. Our ability to meet labor needs, control wage and labor-related costs and minimize labor disruptions will be key to our success of operating our business and executing our business strategies. Furthermore, our business is experiencing an inflationary environment and food price inflation, which has benefited our sales and gross margin growth but has negatively impacted our gross margin rates. We are unable to predict how long the current inflationary environment, including increased energy costs, will continue. We expect the economic environment to remain uncertain as we navigate the current geopolitical environment, the COVID-19 pandemic, labor challenges, supply chain constraints and the current inflationary environment, including increasing energy and commodity prices.
Such risks and uncertainties could cause actual results to differ materially from those expressed or forecasted by us. In evaluating our financial results and forward-looking statements, you should carefully consider the risks and uncertainties more fully described in the "Risk Factors" section or other sections in our reports filed with the
Non-GAAP Measures, Identical Sales and the Combined Plan
Non-GAAP Measures. EBITDA, Adjusted EBITDA, Adjusted net income and Adjusted net income per Class A common share (collectively, the "Non-GAAP Measures") are performance measures that provide supplemental information the Company believes is useful to analysts and investors to evaluate its ongoing results of operations, when considered alongside other GAAP measures such as net income, operating income, gross margin, and net income per Class A common share. These Non-GAAP Measures exclude the financial impact of items management does not consider in assessing the Company's ongoing operating performance, and thereby provide useful measures of its operating performance on a period-to-period basis. Other companies may have different definitions of Non-GAAP Measures and provide for different adjustments, and comparability to the Company's results of operations may be impacted by such differences. The Company also uses Adjusted EBITDA and Net debt ratio for board of director and bank compliance reporting. The Company's presentation of Non-GAAP Measures should not be construed as an implication that its future results will be unaffected by unusual or non-recurring items.
Identical Sales. As used in this earnings release, the term "identical sales" includes stores operating during the same period in both the current fiscal year and the prior fiscal year, comparing sales on a daily basis. Direct to consumer digital sales are included in identical sales, and fuel sales are excluded from identical sales.
Combined Plan. During the fourth quarter of 2020, the Company withdrew from the
The Combined Plan was eligible to receive one-time special financial assistance under the American Rescue Plan Act ("ARP Act") and qualified to submit its application for
|
|||||||||||||||
Consolidated Statements of Operations |
|||||||||||||||
(dollars in millions, except per share data) |
|||||||||||||||
(unaudited) |
|||||||||||||||
|
Fourth Quarter Fiscal 2021 |
|
Fourth Quarter Fiscal 2020 |
|
Fiscal 2021 |
|
Fiscal 2020 |
||||||||
Net sales and other revenue |
$ |
17,383.5 |
|
|
$ |
15,772.3 |
|
|
$ |
71,887.0 |
|
|
$ |
69,690.4 |
|
Cost of sales |
|
12,399.2 |
|
|
|
11,212.8 |
|
|
|
51,164.6 |
|
|
|
49,275.9 |
|
Gross margin |
|
4,984.3 |
|
|
|
4,559.5 |
|
|
|
20,722.4 |
|
|
|
20,414.5 |
|
|
|
|
|
|
|
|
|
||||||||
Selling and administrative expenses |
|
4,321.7 |
|
|
|
4,726.1 |
|
|
|
18,300.5 |
|
|
|
18,835.8 |
|
(Gain) loss on property dispositions and impairment losses, net |
|
(1.7 |
) |
|
|
8.2 |
|
|
|
(15.0 |
) |
|
|
(38.8 |
) |
Operating income (loss) |
|
664.3 |
|
|
|
(174.8 |
) |
|
|
2,436.9 |
|
|
|
1,617.5 |
|
|
|
|
|
|
|
|
|
||||||||
Interest expense, net |
|
108.0 |
|
|
|
113.1 |
|
|
|
481.9 |
|
|
|
538.2 |
|
Loss on debt extinguishment |
|
— |
|
|
|
27.6 |
|
|
|
3.7 |
|
|
|
85.3 |
|
Other income, net |
|
(47.5 |
) |
|
|
(107.2 |
) |
|
|
(148.2 |
) |
|
|
(134.7 |
) |
Income (loss) before income taxes |
|
603.8 |
|
|
|
(208.3 |
) |
|
|
2,099.5 |
|
|
|
1,128.7 |
|
|
|
|
|
|
|
|
|
||||||||
Income tax expense (benefit) |
|
148.7 |
|
|
|
(64.1 |
) |
|
|
479.9 |
|
|
|
278.5 |
|
Net income (loss) |
$ |
455.1 |
|
|
$ |
(144.2 |
) |
|
$ |
1,619.6 |
|
|
$ |
850.2 |
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per Class A common share |
|
|
|
|
|
|
|
||||||||
Basic net income (loss) per Class A common share |
$ |
0.83 |
|
|
$ |
(0.37 |
) |
|
$ |
2.73 |
|
|
$ |
1.53 |
|
Diluted net income (loss) per Class A common share |
|
0.79 |
|
|
|
(0.37 |
) |
|
|
2.70 |
|
|
|
1.47 |
|
Weighted average Class A common shares outstanding (in millions) |
|
|
|
|
|
|
|
||||||||
Basic |
|
482.5 |
|
|
|
464.1 |
|
|
|
469.6 |
|
|
|
500.3 |
|
Diluted |
|
573.9 |
|
|
|
464.1 |
|
|
|
475.3 |
|
|
|
578.1 |
|
|
|
|
|
|
|
|
|
||||||||
% of net sales and other revenue |
|
|
|
|
|
|
|
||||||||
Gross margin |
|
28.7 |
% |
|
|
28.9 |
% |
|
|
28.8 |
% |
|
|
29.3 |
% |
Selling and administrative expenses |
|
24.9 |
% |
|
|
30.0 |
% |
|
|
25.5 |
% |
|
|
27.0 |
% |
|
|
|
|
|
|
|
|
||||||||
Store data |
|
|
|
|
|
|
|
||||||||
Number of stores at end of quarter/year |
|
2,276 |
|
|
|
2,277 |
|
|
|
|
|
|
||||||||
Consolidated Balance Sheets |
||||||||
(in millions) |
||||||||
(unaudited) |
||||||||
|
|
|
|
|
||||
ASSETS |
|
|
|
|||||
Current assets |
|
|
|
|||||
|
Cash and cash equivalents |
$ |
2,902.0 |
|
|
$ |
1,717.0 |
|
|
Receivables, net |
|
560.6 |
|
|
|
550.9 |
|
|
Inventories, net |
|
4,500.8 |
|
|
|
4,301.3 |
|
|
Prepaid assets |
|
301.6 |
|
|
|
317.2 |
|
|
Other current assets |
|
101.4 |
|
|
|
101.6 |
|
|
Total current assets |
|
8,366.4 |
|
|
|
6,988.0 |
|
|
|
|
|
|
||||
Property and equipment, net |
|
9,349.6 |
|
|
|
9,412.7 |
|
|
Operating lease right-of-use assets |
|
5,908.4 |
|
|
|
6,015.6 |
|
|
Intangible assets, net |
|
2,285.0 |
|
|
|
2,108.8 |
|
|
|
|
1,201.0 |
|
|
|
1,183.3 |
|
|
Other assets |
|
1,012.6 |
|
|
|
889.6 |
|
|
TOTAL ASSETS |
$ |
28,123.0 |
|
|
$ |
26,598.0 |
|
|
|
|
|
|
|
||||
LIABILITIES |
|
|
|
|||||
Current liabilities |
|
|
|
|||||
|
Accounts payable |
$ |
4,236.8 |
|
|
$ |
3,487.3 |
|
|
Accrued salaries and wages |
|
1,554.9 |
|
|
|
1,474.7 |
|
|
Current maturities of long-term debt and finance lease obligations |
|
828.8 |
|
|
|
212.4 |
|
|
Current operating lease obligations |
|
640.6 |
|
|
|
605.3 |
|
|
Current portion of self-insurance liability |
|
333.3 |
|
|
|
321.4 |
|
|
Taxes other than income taxes |
|
344.6 |
|
|
|
339.1 |
|
|
Other current liabilities |
|
409.5 |
|
|
|
392.0 |
|
|
Total current liabilities |
|
8,348.5 |
|
|
|
6,832.2 |
|
|
|
|
|
|
||||
Long-term debt and finance lease obligations |
|
7,136.3 |
|
|
|
8,101.2 |
|
|
Long-term operating lease obligations |
|
5,419.9 |
|
|
|
5,548.0 |
|
|
Deferred income taxes |
|
799.8 |
|
|
|
533.7 |
|
|
Long-term self-insurance liability |
|
837.8 |
|
|
|
837.7 |
|
|
Other long-term liabilities |
|
1,277.6 |
|
|
|
1,821.8 |
|
|
|
|
|
|
|
||||
Commitments and contingencies |
|
|
|
|||||
Series A convertible preferred stock |
|
681.1 |
|
|
|
844.3 |
|
|
Series A-1 convertible preferred stock |
|
597.4 |
|
|
|
754.8 |
|
|
|
|
|
|
|||||
STOCKHOLDERS' EQUITY |
|
|
|
|||||
|
Class A common stock |
|
5.9 |
|
|
|
5.9 |
|
|
Additional paid-in capital |
|
2,032.2 |
|
|
|
1,898.9 |
|
|
|
|
(1,647.4 |
) |
|
|
(1,907.0 |
) |
|
Accumulated other comprehensive income |
|
69.0 |
|
|
|
63.5 |
|
|
Retained earnings |
|
2,564.9 |
|
|
|
1,263.0 |
|
|
Total stockholders' equity |
|
3,024.6 |
|
|
|
1,324.3 |
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ |
28,123.0 |
|
|
$ |
26,598.0 |
|
|
|||||||
Consolidated Statements of Cash Flows |
|||||||
(in millions) |
|||||||
(unaudited) |
|||||||
|
Fiscal 2021 |
|
Fiscal 2020 |
||||
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
1,619.6 |
|
|
$ |
850.2 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Gain on property dispositions and impairment losses, net |
|
(15.0 |
) |
|
|
(38.8 |
) |
Depreciation and amortization |
|
1,681.3 |
|
|
|
1,536.9 |
|
Operating lease right-of-use assets amortization |
|
623.9 |
|
|
|
581.5 |
|
LIFO expense |
|
115.2 |
|
|
|
58.7 |
|
Deferred income tax |
|
219.0 |
|
|
|
(112.3 |
) |
Pension and post-retirement benefits income |
|
(54.7 |
) |
|
|
(36.4 |
) |
Contributions to pension and post-retirement benefit plans |
|
(29.8 |
) |
|
|
(60.0 |
) |
(Gain) loss on interest rate swaps and commodity hedges, net |
|
(22.8 |
) |
|
|
16.9 |
|
Deferred financing costs |
|
23.4 |
|
|
|
20.9 |
|
Loss on debt extinguishment |
|
3.7 |
|
|
|
85.3 |
|
Equity-based compensation expense |
|
101.2 |
|
|
|
59.0 |
|
Other operating activities |
|
(77.0 |
) |
|
|
(143.0 |
) |
Changes in operating assets and liabilities, net of effects of acquisition of businesses: |
|
|
|
||||
Receivables, net |
|
(22.4 |
) |
|
|
0.4 |
|
Inventories, net |
|
(313.8 |
) |
|
|
9.2 |
|
Accounts payable, accrued salaries and wages and other accrued liabilities |
|
679.5 |
|
|
|
787.4 |
|
Operating lease liabilities |
|
(604.6 |
) |
|
|
(563.3 |
) |
Pension withdrawal liabilities |
|
(131.0 |
) |
|
|
672.3 |
|
Self-insurance assets and liabilities |
|
18.6 |
|
|
|
6.5 |
|
Other operating assets and liabilities |
|
(300.9 |
) |
|
|
171.1 |
|
Net cash provided by operating activities |
|
3,513.4 |
|
|
|
3,902.5 |
|
|
|
|
|
||||
Cash flows from investing activities: |
|
|
|
||||
Business acquisitions, net of cash acquired |
|
(25.4 |
) |
|
|
(97.9 |
) |
Payments for property, equipment and intangibles, including lease buyouts |
|
(1,606.5 |
) |
|
|
(1,630.2 |
) |
Proceeds from sale of assets |
|
51.9 |
|
|
|
161.6 |
|
Other investing activities |
|
41.1 |
|
|
|
(5.5 |
) |
Net cash used in investing activities |
|
(1,538.9 |
) |
|
|
(1,572.0 |
) |
|
|
|
|
||||
|
Fiscal 2021 |
|
Fiscal 2020 |
||||
Cash flows from financing activities: |
|
|
|
||||
Proceeds from issuance of long-term debt |
|
— |
|
|
|
4,094.0 |
|
Payments on long-term borrowings |
|
(330.9 |
) |
|
|
(4,446.7 |
) |
Payments of obligations under finance leases |
|
(78.0 |
) |
|
|
(79.9 |
) |
Payment of redemption premium on debt extinguishment |
|
(2.9 |
) |
|
|
(71.6 |
) |
Payments for debt financing costs |
|
(11.0 |
) |
|
|
(21.9 |
) |
Dividends paid on common stock |
|
(207.4 |
) |
|
|
(93.7 |
) |
Dividends paid on convertible preferred stock |
|
(114.6 |
) |
|
|
(66.0 |
) |
Proceeds from convertible preferred stock |
|
— |
|
|
|
1,680.0 |
|
Third party issuance costs on convertible preferred stock |
|
— |
|
|
|
(80.9 |
) |
|
|
— |
|
|
|
(1,881.2 |
) |
Employee tax withholding on vesting of restricted stock units |
|
(29.4 |
) |
|
|
(14.1 |
) |
Other financing activities |
|
(15.3 |
) |
|
|
(59.8 |
) |
Net cash used in financing activities |
|
(789.5 |
) |
|
|
(1,041.8 |
) |
|
|
|
|
||||
Net increase in cash and cash equivalents and restricted cash |
|
1,185.0 |
|
|
|
1,288.7 |
|
Cash and cash equivalents and restricted cash at beginning of period |
|
1,767.6 |
|
|
|
478.9 |
|
Cash and cash equivalents and restricted cash at end of period |
$ |
2,952.6 |
|
|
$ |
1,767.6 |
|
|
|||||||||||
Reconciliation of Non-GAAP Measures |
|||||||||||
(in millions, except per share data) |
|||||||||||
The following tables reconcile Net income (loss) to Adjusted net income, and Net income per Class A common share to Adjusted net income per Class A common share for the fourth quarter of fiscal 2021, fourth quarter of fiscal 2020 and fourth quarter of fiscal 2019: |
|||||||||||
|
Fourth Quarter Fiscal 2021 |
|
Fourth Quarter Fiscal 2020 |
|
Supplemental Fourth Quarter Fiscal 2019 |
||||||
Numerator: |
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
Net income (loss) |
$ |
455.1 |
|
|
$ |
(144.2 |
) |
|
$ |
67.8 |
|
Adjustments: |
|
|
|
|
|
||||||
(Gain) loss on interest rate and commodity hedges, net (d) |
|
(14.0 |
) |
|
|
(7.1 |
) |
|
|
50.2 |
|
Facility closures and transformation (1)(b) |
|
10.8 |
|
|
|
23.5 |
|
|
|
7.3 |
|
Acquisition and integration costs (2)(b) |
|
0.5 |
|
|
|
2.1 |
|
|
|
9.5 |
|
Equity-based compensation expense (b) |
|
25.8 |
|
|
|
15.6 |
|
|
|
8.0 |
|
(Gain) loss on property dispositions and impairment losses, net |
|
(1.7 |
) |
|
|
8.2 |
|
|
|
(2.1 |
) |
LIFO expense (a) |
|
56.6 |
|
|
|
21.2 |
|
|
|
(0.5 |
) |
Government-mandated incremental COVID-19 pandemic related pay (3)(b) |
|
4.9 |
|
|
|
1.8 |
|
|
|
— |
|
Transaction and reorganization costs related to convertible preferred stock issuance and initial public offering (b) |
|
— |
|
|
|
0.4 |
|
|
|
0.3 |
|
Amortization of debt discount and deferred financing costs (c) |
|
7.3 |
|
|
|
4.2 |
|
|
|
5.0 |
|
Loss on debt extinguishment |
|
— |
|
|
|
27.6 |
|
|
|
45.6 |
|
Amortization of intangible assets resulting from acquisitions (b) |
|
11.4 |
|
|
|
12.3 |
|
|
|
46.6 |
|
Combined Plan (b) |
|
(106.3 |
) |
|
|
607.2 |
|
|
|
— |
|
Miscellaneous adjustments (4)(f) |
|
(22.8 |
) |
|
|
(53.6 |
) |
|
|
(2.7 |
) |
Tax impact of adjustments to Adjusted net income |
|
9.2 |
|
|
|
(172.0 |
) |
|
|
(40.8 |
) |
Adjusted net income |
$ |
436.8 |
|
|
$ |
347.2 |
|
|
$ |
194.2 |
|
|
|
|
|
|
|
||||||
Denominator: |
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
Weighted average Class A common shares outstanding - diluted |
|
573.9 |
|
|
|
464.1 |
|
|
|
580.6 |
|
Adjustments: |
|
|
|
|
|
||||||
Convertible preferred stock (5) |
|
— |
|
|
|
101.6 |
|
|
|
— |
|
Restricted stock units and awards (6) |
|
7.7 |
|
|
|
10.4 |
|
|
|
6.8 |
|
Adjusted weighted average Class A common shares outstanding - diluted |
|
581.6 |
|
|
|
576.1 |
|
|
|
587.4 |
|
|
|
|
|
|
|
||||||
Adjusted net income per Class A common share - diluted |
$ |
0.75 |
|
|
$ |
0.60 |
|
|
$ |
0.33 |
|
|
|
|
|
|
|
||||||
Supplemental Two-Year CAGR: |
|
|
|
|
|
||||||
Net income (loss) two-year CAGR |
|
159.1 |
% |
|
|
|
|
||||
Adjusted net income two-year CAGR |
|
50.0 |
% |
|
|
|
|
|
|||||||||||
Reconciliation of Non-GAAP Measures |
|||||||||||
(in millions, except per share data) |
|||||||||||
|
Fourth Quarter Fiscal 2021 |
|
Fourth Quarter Fiscal 2020 |
|
Supplemental Fourth Quarter Fiscal 2019 |
||||||
Net income (loss) per Class A common share - diluted |
$ |
0.79 |
|
|
$ |
(0.37 |
) |
|
$ |
0.12 |
|
Convertible preferred stock (5) |
|
— |
|
|
|
0.12 |
|
|
|
— |
|
Non-GAAP adjustments (7) |
|
(0.03 |
) |
|
|
0.86 |
|
|
|
0.22 |
|
Restricted stock units and awards (6) |
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
Adjusted net income per Class A common share - diluted |
$ |
0.75 |
|
|
$ |
0.60 |
|
|
$ |
0.33 |
|
|
|
|
|
|
|
||||||
Supplemental Two-Year CAGR: |
|
|
|
|
|
||||||
Net income (loss) per Class A common share two-year CAGR |
|
156.6 |
% |
|
|
|
|
||||
Adjusted net income per Class A common share two-year CAGR |
|
50.8 |
% |
|
|
|
|
(1) |
Includes costs related to closures of operating facilities and third-party consulting fees related to our strategic priorities and associated business transformation. |
|
(2) |
Related to conversion activities and related costs associated with integrating acquired businesses. Also includes expenses related to management fees paid in prior periods in connection with acquisition and financing activities. |
|
(3) |
Represents pay that is legislatively required in certain municipalities in which we operate. |
|
(4) |
Primarily includes lease adjustments related to non-cash rent expense and costs incurred on leased surplus properties, net realized and unrealized gains and losses related to non-operating investments, certain legal and regulatory accruals and settlements and adjustments for unconsolidated equity investments. |
|
(5) |
Represents the conversion of convertible preferred stock to the fully outstanding as-converted Class A common shares as of the end of each respective period, for periods in which the convertible preferred stock is antidilutive under GAAP. |
|
(6) |
Represents incremental unvested restricted stock units ("RSUs") and unvested restricted stock awards ("RSAs") to adjust the diluted weighted average Class A common shares outstanding during each respective period to the fully outstanding RSUs and RSAs as of the end of each respective period. |
|
(7) |
Reflects the per share impact of Non-GAAP adjustments for each period. See the reconciliation of Net income (loss) to Adjusted net income above for further details. |
The following table is a reconciliation of Adjusted net income to Adjusted EBITDA:
|
Fourth Quarter Fiscal 2021 |
|
Fourth Quarter Fiscal 2020 |
|
Supplemental Fourth Quarter Fiscal 2019 |
||||||
Adjusted net income (1) |
$ |
436.8 |
|
|
$ |
347.2 |
|
|
$ |
194.2 |
|
Tax impact of adjustments to Adjusted net income |
|
(9.2 |
) |
|
|
172.0 |
|
|
|
40.8 |
|
Income tax expense (benefit) |
|
148.7 |
|
|
|
(64.1 |
) |
|
|
22.3 |
|
Amortization of debt discount and deferred financing costs (c) |
|
(7.3 |
) |
|
|
(4.2 |
) |
|
|
(5.0 |
) |
Interest expense, net |
|
108.0 |
|
|
|
113.1 |
|
|
|
140.5 |
|
Amortization of intangible assets resulting from acquisitions (b) |
|
(11.4 |
) |
|
|
(12.3 |
) |
|
|
(46.6 |
) |
Depreciation and amortization (e) |
|
408.1 |
|
|
|
365.2 |
|
|
|
409.4 |
|
Adjusted EBITDA |
$ |
1,073.7 |
|
|
$ |
916.9 |
|
|
$ |
755.6 |
|
|
|
|
|
|
|
||||||
Supplemental Two-Year CAGR: |
|
|
|
|
|
||||||
Adjusted EBITDA two-year CAGR |
|
19.2 |
% |
|
|
|
|
(1) |
See the reconciliation of Net income (loss) to Adjusted net income above for further details. |
|
Non-GAAP adjustment classifications within the Consolidated Statement of Operations: | ||
(a) |
Cost of sales |
|
(b) |
Selling and administrative expenses |
|
(c) |
Interest expense, net |
|
(d) |
(Gain) loss on interest rate and commodity hedges, net: |
|
||||||||||
Reconciliation of Non-GAAP Measures |
||||||||||
(in millions, except per share data) |
||||||||||
|
|
|
|
|
|
|||||
|
Fourth Quarter Fiscal 2021 |
|
Fourth Quarter Fiscal 2020 |
|
Supplemental Fourth Quarter Fiscal 2019 |
|||||
Cost of sales |
$ |
(11.1 |
) |
|
$ |
(6.9 |
) |
|
$ |
2.3 |
Other income, net |
|
(2.9 |
) |
|
|
(0.2 |
) |
|
|
47.9 |
Total (Gain) loss on interest rate and commodity hedges, net |
$ |
(14.0 |
) |
|
$ |
(7.1 |
) |
|
$ |
50.2 |
(e) Depreciation and amortization: |
||||||||
|
Fourth Quarter Fiscal 2021 |
|
Fourth Quarter Fiscal 2020 |
|
Supplemental Fourth Quarter Fiscal 2019 |
|||
Cost of sales |
$ |
39.1 |
|
$ |
40.7 |
|
$ |
43.2 |
Selling and administrative expenses |
|
369.0 |
|
|
324.5 |
|
|
366.2 |
Total Depreciation and amortization |
$ |
408.1 |
|
$ |
365.2 |
|
$ |
409.4 |
(f) Miscellaneous adjustments: |
|||||||||||
|
Fourth Quarter Fiscal 2021 |
|
Fourth Quarter Fiscal 2020 |
|
Supplemental Fourth Quarter Fiscal 2019 |
||||||
Selling and administrative expenses |
$ |
(1.9 |
) |
|
$ |
29.1 |
|
|
$ |
(7.6 |
) |
Other income, net |
|
(20.9 |
) |
|
|
(82.7 |
) |
|
|
4.9 |
|
Total Miscellaneous adjustments |
$ |
(22.8 |
) |
|
$ |
(53.6 |
) |
|
$ |
(2.7 |
) |
|
|||||||||||
Reconciliation of Non-GAAP Measures |
|||||||||||
(in millions, except per share data) |
|||||||||||
The following tables reconcile Net income to Adjusted net income, and Net income per Class A common share to Adjusted net income per Class A common share for fiscal 2021, fiscal 2020 and fiscal 2019: |
|||||||||||
|
Fiscal 2021 |
|
Fiscal 2020 |
|
Supplemental Fiscal 2019 |
||||||
Numerator: |
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
Net income |
$ |
1,619.6 |
|
|
$ |
850.2 |
|
|
$ |
466.4 |
|
Adjustments: |
|
|
|
|
|
||||||
(Gain) loss on interest rate and commodity hedges, net (d) |
|
(22.8 |
) |
|
|
16.9 |
|
|
|
50.6 |
|
Facility closures and transformation (1)(b) |
|
56.6 |
|
|
|
58.0 |
|
|
|
18.3 |
|
Acquisition and integration costs (2)(b) |
|
8.6 |
|
|
|
12.6 |
|
|
|
60.5 |
|
Equity-based compensation expense (b) |
|
101.2 |
|
|
|
59.0 |
|
|
|
32.8 |
|
Gain on property dispositions and impairment losses, net (3) |
|
(15.0 |
) |
|
|
(38.8 |
) |
|
|
(484.8 |
) |
LIFO expense (a) |
|
115.2 |
|
|
|
58.7 |
|
|
|
18.4 |
|
Discretionary COVID-19 pandemic related costs (4)(b) |
|
— |
|
|
|
134.6 |
|
|
|
— |
|
Government-mandated incremental COVID-19 pandemic related pay (5)(b) |
|
57.9 |
|
|
|
1.8 |
|
|
|
— |
|
Civil disruption related costs (6)(b) |
|
— |
|
|
|
13.0 |
|
|
|
— |
|
Transaction and reorganization costs related to convertible preferred stock issuance and initial public offering (b) |
|
— |
|
|
|
23.8 |
|
|
|
3.7 |
|
Amortization of debt discount and deferred financing costs (c) |
|
23.2 |
|
|
|
20.3 |
|
|
|
73.9 |
|
Loss on debt extinguishment |
|
3.7 |
|
|
|
85.3 |
|
|
|
111.4 |
|
Amortization of intangible assets resulting from acquisitions (b) |
|
48.5 |
|
|
|
55.8 |
|
|
|
273.6 |
|
|
|
(106.3 |
) |
|
|
892.9 |
|
|
|
— |
|
Miscellaneous adjustments (8)(f) |
|
(63.4 |
) |
|
|
2.4 |
|
|
|
35.0 |
|
Tax impact of adjustments to Adjusted net income |
|
(46.0 |
) |
|
|
(355.1 |
) |
|
|
(47.7 |
) |
Adjusted net income |
$ |
1,781.0 |
|
|
$ |
1,891.4 |
|
|
$ |
612.1 |
|
|
|
|
|
|
|
||||||
Denominator: |
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
Weighted average Class A common shares outstanding - diluted |
|
475.3 |
|
|
|
578.1 |
|
|
|
580.3 |
|
Adjustments: |
|
|
|
|
|
||||||
Convertible preferred stock (9) |
|
97.7 |
|
|
|
— |
|
|
|
— |
|
Restricted stock units and awards (10) |
|
7.4 |
|
|
|
6.3 |
|
|
|
6.6 |
|
Adjusted weighted average Class A common shares outstanding - diluted |
|
580.4 |
|
|
|
584.4 |
|
|
|
586.9 |
|
|
|
|
|
|
|
||||||
Adjusted net income per Class A common share - diluted |
$ |
3.07 |
|
|
$ |
3.24 |
|
|
$ |
1.04 |
|
|
|
|
|
|
|
||||||
Supplemental Two-Year CAGR: |
|
|
|
|
|
||||||
Net income two-year CAGR |
|
86.3 |
% |
|
|
|
|
||||
Adjusted net income two-year CAGR |
|
70.6 |
% |
|
|
|
|
|
|||||||||||
Reconciliation of Non-GAAP Measures |
|||||||||||
(in millions, except per share data) |
|||||||||||
|
Fiscal 2021 |
|
Fiscal 2020 |
|
Supplemental Fiscal 2019 |
||||||
Net income per Class A common share - diluted |
$ |
2.70 |
|
|
$ |
1.47 |
|
|
$ |
0.80 |
|
Convertible preferred stock (9) |
|
0.13 |
|
|
|
— |
|
|
|
— |
|
Non-GAAP adjustments (11) |
|
0.28 |
|
|
|
1.80 |
|
|
|
0.25 |
|
Restricted stock units and awards (10) |
|
(0.04 |
) |
|
|
(0.03 |
) |
|
|
(0.01 |
) |
Adjusted net income per Class A common share - diluted |
$ |
3.07 |
|
|
$ |
3.24 |
|
|
$ |
1.04 |
|
|
|
|
|
|
|
||||||
Supplemental Two-Year CAGR: |
|
|
|
|
|
||||||
Net income per Class A common share two-year CAGR |
|
83.7 |
% |
|
|
|
|
||||
Adjusted net income per Class A common share two-year CAGR |
|
71.8 |
% |
|
|
|
|
(1) |
Includes costs related to closures of operating facilities and third-party consulting fees related to our strategic priorities and associated business transformation. |
(2) |
Related to conversion activities and related costs associated with integrating acquired businesses. Also includes expenses related to management fees paid in prior periods in connection with acquisition and financing activities. |
(3) |
Primarily due to gains related to sale leaseback transactions in the second quarter of fiscal 2019. |
(4) |
Includes |
(5) |
Represents incremental pay that is legislatively required in certain municipalities in which we operate. |
(6) |
Primarily includes costs related to store damage, inventory losses and community support as a result of the civil disruption during late |
(7) |
Includes the Combined Plan and the |
(8) |
Primarily includes lease adjustments related to non-cash rent expense and costs incurred on leased surplus properties, net realized and unrealized gains and losses related to non-operating investments, certain legal and regulatory accruals and settlements, pension settlement gain and adjustments for unconsolidated equity investments. |
(9) |
Represents the conversion of convertible preferred stock to the fully outstanding as-converted Class A common shares as of the end of each respective period, for periods in which the convertible preferred stock is antidilutive under GAAP. |
(10) |
Represents incremental unvested RSUs and unvested RSAs to adjust the diluted weighted average Class A common shares outstanding during each respective period to the fully outstanding RSUs and RSAs as of the end of each respective period. |
(11) |
Reflects the per share impact of Non-GAAP adjustments for each period. See the reconciliation of Net income to Adjusted net income above for further details. |
|
|||||||||||
Reconciliation of Non-GAAP Measures |
|||||||||||
(in millions, except per share data) |
|||||||||||
|
|
|
|
|
|
||||||
The following table is a reconciliation of Adjusted net income to Adjusted EBITDA: |
|||||||||||
|
Fiscal 2021 |
|
Fiscal 2020 |
|
Supplemental Fiscal 2019 |
||||||
Adjusted net income (1) |
$ |
1,781.0 |
|
|
$ |
1,891.4 |
|
|
$ |
612.1 |
|
Tax impact of adjustments to Adjusted net income |
|
46.0 |
|
|
|
355.1 |
|
|
|
47.7 |
|
Income tax expense |
|
479.9 |
|
|
|
278.5 |
|
|
|
132.8 |
|
Amortization of debt discount and deferred financing costs (c) |
|
(23.2 |
) |
|
|
(20.3 |
) |
|
|
(73.9 |
) |
Interest expense, net |
|
481.9 |
|
|
|
538.2 |
|
|
|
698.0 |
|
Amortization of intangible assets resulting from acquisitions (b) |
|
(48.5 |
) |
|
|
(55.8 |
) |
|
|
(273.6 |
) |
Depreciation and amortization (e) |
|
1,681.3 |
|
|
|
1,536.9 |
|
|
|
1,691.3 |
|
Adjusted EBITDA (2) |
$ |
4,398.4 |
|
|
$ |
4,524.0 |
|
|
$ |
2,834.4 |
|
|
|
|
|
|
|
||||||
Supplemental Two-Year CAGR: |
|
|
|
|
|
||||||
Adjusted EBITDA two-year CAGR |
|
24.6 |
% |
|
|
|
|
(1) |
See the reconciliation of Net income to Adjusted net income above for further details. |
(2) |
Fiscal 2019 includes an estimated |
Non-GAAP adjustment classifications within the Consolidated Statement of Operations: | |
(a) |
Cost of sales |
(b) |
Selling and administrative expenses |
(c) |
Interest expense, net |
(d) |
(Gain) loss on interest rate and commodity hedges, net: |
|
Fiscal 2021 |
|
Fiscal 2020 |
|
Supplemental Fiscal 2019 |
|||||
Cost of sales |
$ |
(19.5 |
) |
|
$ |
(2.6 |
) |
|
$ |
2.7 |
Other income, net |
|
(3.3 |
) |
|
|
19.5 |
|
|
|
47.9 |
Total (Gain) loss on interest rate and commodity hedges, net |
$ |
(22.8 |
) |
|
$ |
16.9 |
|
|
$ |
50.6 |
(e) Depreciation and amortization: |
||||||||
|
Fiscal 2021 |
|
Fiscal 2020 |
|
Supplemental Fiscal 2019 |
|||
Cost of sales |
$ |
164.7 |
|
$ |
172.6 |
|
$ |
171.5 |
Selling and administrative expenses |
|
1,516.6 |
|
|
1,364.3 |
|
|
1,519.8 |
Total Depreciation and amortization |
$ |
1,681.3 |
|
$ |
1,536.9 |
|
$ |
1,691.3 |
(f) Miscellaneous adjustments: |
||||||||||
|
Fiscal 2021 |
|
Fiscal 2020 |
|
Supplemental Fiscal 2019 |
|||||
Selling and administrative expenses |
$ |
(6.9 |
) |
|
$ |
73.8 |
|
|
$ |
21.0 |
Other income, net |
|
(56.5 |
) |
|
|
(71.4 |
) |
|
|
14.0 |
Total Miscellaneous adjustments |
$ |
(63.4 |
) |
|
$ |
2.4 |
|
|
$ |
35.0 |
|
|||||
Reconciliation of Non-GAAP Measures |
|||||
(in millions, except per share data) |
|||||
The following table is a reconciliation of Net debt ratio: |
|||||
|
Fiscal 2021 |
|
Fiscal 2020 |
||
Total debt (including finance leases) |
$ |
7,965.1 |
|
$ |
8,313.6 |
Cash and cash equivalents |
|
2,902.0 |
|
|
1,717.0 |
Total debt net of cash |
|
5,063.1 |
|
|
6,596.6 |
|
|
|
|
||
Adjusted EBITDA |
$ |
4,398.4 |
|
$ |
4,524.0 |
|
|
|
|
||
Total Net debt ratio |
|
1.15 |
|
|
1.46 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220412005200/en/
melissa.plaisance@albertsons.com
Source:
FAQ
What are Albertsons Companies' fiscal 2021 results?
What is the projected outlook for Albertsons in fiscal 2022?
How did Albertsons perform in the fourth quarter of fiscal 2021?
What strategic actions is Albertsons considering?