Albertsons Companies, Inc. Reports Second Quarter Fiscal 2022 Results
Albertsons Companies (ACI) reported a robust second quarter of fiscal 2022, with net income of $343 million ($0.59 per share) and adjusted net income at $418 million ($0.72 per share). The company achieved a 7.4% increase in identical sales and a 36% surge in digital sales.
Despite these gains, the gross margin rate decreased to 27.9% from 28.6% due to rising product costs. Albertsons announced a merger agreement with Kroger, with a total consideration of $34.10 per share, including a special cash dividend of up to $4 billion.
- Net income increased to $343 million ($0.59 per share), up from $295 million ($0.52 per share) YoY.
- Adjusted net income rose to $418 million ($0.72 per share), compared to $370 million ($0.64 per share) YoY.
- Identical sales grew by 7.4%, driven by increased fuel sales and inflation.
- Digital sales surged by 36%, indicating significant growth in online operations.
- Net gain on property dispositions increased to $14 million from $0.2 million YoY.
- Selling and administrative expenses decreased as a percentage of net sales, benefiting from ongoing productivity initiatives.
- Gross margin rate declined to 27.9% from 28.6% YoY, primarily due to increased product and supply chain costs.
- Cost inflation and decreased COVID-19 vaccine sales negatively impacted gross margin.
Second Quarter of Fiscal 2022 Highlights
-
Identical sales increased
7.4% -
Digital sales increased
36% -
Loyalty members increased
16% to 31.8 million -
Net income of
, or$343 million per share$0.59 -
Adjusted net income of
, or$418 million per share$0.72 -
Adjusted EBITDA of
$1,049 million
"Our team continued to deliver strong performance during the second quarter," said
Second Quarter of Fiscal 2022 Results
Net sales and other revenue was
Gross margin rate decreased to
Selling and administrative expenses decreased to
Net gain on property dispositions and impairment losses was
Interest expense, net was
Other income, net was
Income tax expense was
Net income was
Adjusted net income was
Adjusted EBITDA was
Recent Developments
On
In addition, as disclosed in an 8-K filed on
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 numerous risks and uncertainties which are beyond our control and difficult to predict and could cause actual results to differ materially from the results expressed or implied by the statements. Risks and uncertainties that could cause actual results to differ materially from such statements include:
- changes in macroeconomic conditions and uncertainty regarding the geopolitical environment;
- rates of food price inflation or deflation, as well as fuel and commodity prices;
- changes in market interest rates and wage rates;
- changes in retail consumer behavior, including in the digital space;
- ability to attract and retain qualified associates and negotiate acceptable contracts with labor unions;
- failure to achieve productivity initiatives, unexpected changes in our objectives and plans, inability to implement our strategies, plans, programs and initiatives, or enter into strategic transactions, investments or partnerships in the future on terms acceptable to us, or at all, or to close the transactions contemplated by the Merger Agreement;
- availability and cost of goods used in our food products;
- challenges with our supply chain;
- cybersecurity events affecting us and related costs and impact to the business; and
- health epidemics and pandemics including the continued impact of the COVID-19 pandemic, about which there are still many unknowns and the extent of their impact on 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.
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
Additional Information and Where to Find It
The Company expects to prepare an information statement on Schedule 14C for its stockholders with respect to the approval of the merger between the Company and Kroger. When completed, the information statement will be mailed to the Company's stockholders. You may obtain copies of all documents filed by the Company with the
Non-GAAP Measures and Identical Sales
Non-GAAP Measures. EBITDA, Adjusted EBITDA, Adjusted net income, Adjusted net income per Class A common share and Net debt ratio (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.
Condensed Consolidated Statements of Operations (dollars in millions, except per share data) (unaudited) |
||||||||||||||||
|
12 weeks ended |
28 weeks ended |
||||||||||||||
|
|
|
|
|
||||||||||||
Net sales and other revenue |
$ |
17,919.4 |
|
$ |
16,505.7 |
|
$ |
41,229.7 |
|
$ |
37,775.1 |
|
||||
Cost of sales |
|
12,914.8 |
|
|
11,788.7 |
|
|
29,680.1 |
|
|
26,867.1 |
|
||||
Gross margin |
|
5,004.6 |
|
|
4,717.0 |
|
|
11,549.6 |
|
|
10,908.0 |
|
||||
|
|
|
|
|
||||||||||||
Selling and administrative expenses |
|
4,487.6 |
|
|
4,231.3 |
|
|
10,351.9 |
|
|
9,734.9 |
|
||||
(Gain) loss on property dispositions and impairment losses, net |
|
(14.0 |
) |
|
(0.2 |
) |
|
(93.4 |
) |
|
0.1 |
|
||||
Operating income |
|
531.0 |
|
|
485.9 |
|
|
1,291.1 |
|
|
1,173.0 |
|
||||
|
|
|
|
|
||||||||||||
Interest expense, net |
|
89.8 |
|
|
109.3 |
|
|
228.7 |
|
|
262.6 |
|
||||
Other income, net |
|
(18.9 |
) |
|
(18.9 |
) |
|
(25.2 |
) |
|
(62.4 |
) |
||||
Income before income taxes |
|
460.1 |
|
|
395.5 |
|
|
1,087.6 |
|
|
972.8 |
|
||||
|
|
|
|
|
||||||||||||
Income tax expense |
|
117.4 |
|
|
100.3 |
|
|
260.7 |
|
|
232.8 |
|
||||
Net income |
$ |
342.7 |
|
$ |
295.2 |
|
$ |
826.9 |
|
$ |
740.0 |
|
||||
|
|
|
|
|
||||||||||||
Net income per Class A common share |
|
|
|
|
||||||||||||
Basic net income per Class A common share |
$ |
0.61 |
|
$ |
0.55 |
|
$ |
1.44 |
|
$ |
1.27 |
|
||||
Diluted net income per Class A common share |
|
0.59 |
|
|
0.52 |
|
|
1.43 |
|
|
1.26 |
|
||||
|
|
|
|
|
||||||||||||
Weighted average Class A common shares outstanding (in millions) |
|
|
|
|
||||||||||||
Basic |
|
531.9 |
|
|
465.3 |
|
|
521.3 |
|
|
465.2 |
|
||||
Diluted |
|
576.3 |
|
|
573.0 |
|
|
525.9 |
|
|
470.6 |
|
||||
|
|
|
|
|
||||||||||||
% of net sales and other revenue |
|
|
|
|
||||||||||||
Gross margin |
|
27.9 |
% |
|
28.6 |
% |
|
28.0 |
% |
|
28.9 |
% |
||||
Selling and administrative expenses |
|
25.0 |
% |
|
25.6 |
% |
|
25.1 |
% |
|
25.8 |
% |
||||
|
|
|
|
|
||||||||||||
Store data |
|
|
|
|
||||||||||||
Number of stores at end of quarter |
|
2,272 |
|
|
2,278 |
|
|
|
||||||||
Condensed Consolidated Balance Sheets (in millions) (unaudited) |
||||||||
|
|
|
||||||
ASSETS |
|
|
||||||
Current assets |
|
|
||||||
Cash and cash equivalents |
$ |
3,392.4 |
|
$ |
2,902.0 |
|
||
Receivables, net |
|
651.7 |
|
|
560.6 |
|
||
Inventories, net |
|
4,746.4 |
|
|
4,500.8 |
|
||
Other current assets |
|
474.1 |
|
|
403.0 |
|
||
Total current assets |
|
9,264.6 |
|
|
8,366.4 |
|
||
|
|
|
||||||
Property and equipment, net |
|
9,078.6 |
|
|
9,349.6 |
|
||
Operating lease right-of-use assets |
|
5,868.9 |
|
|
5,908.4 |
|
||
Intangible assets, net |
|
2,363.5 |
|
|
2,285.0 |
|
||
|
|
1,201.0 |
|
|
1,201.0 |
|
||
Other assets |
|
977.5 |
|
|
1,012.6 |
|
||
TOTAL ASSETS |
$ |
28,754.1 |
|
$ |
28,123.0 |
|
||
|
|
|
||||||
LIABILITIES |
|
|
||||||
Current liabilities |
|
|
||||||
Accounts payable |
$ |
4,017.8 |
|
$ |
4,236.8 |
|
||
Accrued salaries and wages |
|
1,503.1 |
|
|
1,554.9 |
|
||
Current maturities of long-term debt and finance lease obligations |
|
826.0 |
|
|
828.8 |
|
||
Current maturities of operating lease obligations |
|
655.5 |
|
|
640.6 |
|
||
Other current liabilities |
|
1,242.1 |
|
|
1,087.4 |
|
||
Total current liabilities |
|
8,244.5 |
|
|
8,348.5 |
|
||
|
|
|
||||||
Long-term debt and finance lease obligations |
|
7,106.8 |
|
|
7,136.3 |
|
||
Long-term operating lease obligations |
|
5,452.3 |
|
|
5,419.9 |
|
||
Deferred income taxes |
|
858.4 |
|
|
799.8 |
|
||
Other long-term liabilities |
|
2,092.9 |
|
|
2,115.4 |
|
||
|
|
|
||||||
Commitments and contingencies |
|
|
||||||
Series A convertible preferred stock |
|
612.2 |
|
|
681.1 |
|
||
Series A-1 convertible preferred stock |
|
— |
|
|
597.4 |
|
||
|
|
|
||||||
STOCKHOLDERS' EQUITY |
|
|
||||||
Class A common stock |
|
5.9 |
|
|
5.9 |
|
||
Additional paid-in capital |
|
2,022.5 |
|
|
2,032.2 |
|
||
|
|
(947.4 |
) |
|
(1,647.4 |
) |
||
Accumulated other comprehensive income |
|
66.1 |
|
|
69.0 |
|
||
Retained earnings |
|
3,239.9 |
|
|
2,564.9 |
|
||
Total stockholders' equity |
|
4,387.0 |
|
|
3,024.6 |
|
||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ |
28,754.1 |
|
$ |
28,123.0 |
|
||
Condensed Consolidated Statements of Cash Flows (in millions) (unaudited) |
||||||||
28 weeks ended |
||||||||
|
|
|
||||||
Cash flows from operating activities: |
|
|
||||||
Net income |
$ |
826.9 |
|
$ |
740.0 |
|
||
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
||||||
(Gain) loss on property dispositions and impairment losses, net |
|
(93.4 |
) |
|
0.1 |
|
||
Depreciation and amortization |
|
959.8 |
|
|
883.2 |
|
||
Operating lease right-of-use assets amortization |
|
349.4 |
|
|
333.0 |
|
||
LIFO expense |
|
116.9 |
|
|
29.1 |
|
||
Deferred income tax |
|
58.3 |
|
|
43.0 |
|
||
Contributions to pension and post-retirement benefit plans, net of (income) expense |
|
(16.1 |
) |
|
(47.5 |
) |
||
Gain on interest rate swaps and energy hedges, net |
|
(14.9 |
) |
|
(7.5 |
) |
||
Deferred financing costs |
|
9.1 |
|
|
11.1 |
|
||
Equity-based compensation expense |
|
63.2 |
|
|
49.0 |
|
||
Other |
|
(10.8 |
) |
|
(21.2 |
) |
||
Changes in operating assets and liabilities: |
|
|
||||||
Receivables, net |
|
(92.5 |
) |
|
(6.4 |
) |
||
Inventories, net |
|
(362.5 |
) |
|
93.0 |
|
||
Accounts payable, accrued salaries and wages and other accrued liabilities |
|
43.5 |
|
|
229.2 |
|
||
Operating lease liabilities |
|
(265.4 |
) |
|
(249.3 |
) |
||
Self-insurance assets and liabilities |
|
35.1 |
|
|
36.3 |
|
||
Other operating assets and liabilities |
|
45.5 |
|
|
22.6 |
|
||
Net cash provided by operating activities |
|
1,652.1 |
|
|
2,137.7 |
|
||
|
|
|
||||||
Cash flows from investing activities: |
|
|
||||||
Business acquisitions, net of cash acquired |
|
— |
|
|
(23.5 |
) |
||
Payments for property, equipment and intangibles, including payments for lease buyouts |
|
(1,060.7 |
) |
|
(822.5 |
) |
||
Proceeds from sale of long-lived assets |
|
94.2 |
|
|
24.6 |
|
||
Other investing activities |
|
(11.2 |
) |
|
30.9 |
|
||
Net cash used in investing activities |
|
(977.7 |
) |
|
(790.5 |
) |
||
|
|
|
||||||
Cash flows from financing activities: |
|
|
||||||
Payments on long-term borrowings |
|
(0.2 |
) |
|
(0.5 |
) |
||
Payments of obligations under finance leases |
|
(29.9 |
) |
|
(32.2 |
) |
||
Dividends paid on common stock |
|
(126.7 |
) |
|
(93.0 |
) |
||
Dividends paid on convertible preferred stock |
|
(34.5 |
) |
|
(59.1 |
) |
||
Employee tax withholding on vesting of restricted stock units |
|
(40.3 |
) |
|
(11.8 |
) |
||
Other financing activities |
|
5.0 |
|
|
(17.8 |
) |
||
Net cash used in financing activities |
|
(226.6 |
) |
|
(214.4 |
) |
||
|
|
|
||||||
Net increase in cash and cash equivalents and restricted cash |
|
447.8 |
|
|
1,132.8 |
|
||
Cash and cash equivalents and restricted cash at beginning of period |
|
2,952.6 |
|
|
1,767.6 |
|
||
Cash and cash equivalents and restricted cash at end of period |
$ |
3,400.4 |
|
$ |
2,900.4 |
|
||
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 (in millions, except per share data): |
||||||||||||||||
|
12 weeks ended |
28 weeks ended |
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|
|
|
|
|
||||||||||||
Numerator: |
|
|
|
|
||||||||||||
|
|
|
|
|
||||||||||||
Net income |
$ |
342.7 |
|
$ |
295.2 |
|
$ |
826.9 |
|
$ |
740.0 |
|
||||
Adjustments: |
|
|
|
|
||||||||||||
Loss (gain) on interest rate swaps and energy hedges, net (d) |
|
3.6 |
|
|
(1.2 |
) |
|
(14.9 |
) |
|
(7.5 |
) |
||||
Business transformation (1)(b) |
|
13.5 |
|
|
14.8 |
|
|
47.3 |
|
|
35.6 |
|
||||
Equity-based compensation expense (b) |
|
27.9 |
|
|
26.8 |
|
|
63.2 |
|
|
49.0 |
|
||||
(Gain) loss on property dispositions and impairment losses, net |
|
(14.0 |
) |
|
(0.2 |
) |
|
(93.4 |
) |
|
0.1 |
|
||||
LIFO expense (a) |
|
54.8 |
|
|
14.6 |
|
|
116.9 |
|
|
29.1 |
|
||||
Government-mandated incremental COVID-19 pandemic related pay (2)(b) |
|
3.9 |
|
|
18.3 |
|
|
9.8 |
|
|
47.4 |
|
||||
Amortization of debt discount and deferred financing costs (c) |
|
3.9 |
|
|
4.7 |
|
|
9.0 |
|
|
11.1 |
|
||||
Amortization of intangible assets resulting from acquisitions (b) |
|
12.0 |
|
|
11.5 |
|
|
27.4 |
|
|
27.6 |
|
||||
Combined Plan (3)(b) |
|
(19.0 |
) |
|
— |
|
|
(19.0 |
) |
|
— |
|
||||
Miscellaneous adjustments (4)(f) |
|
15.8 |
|
|
8.5 |
|
|
82.8 |
|
|
1.2 |
|
||||
Tax impact of adjustments to Adjusted net income |
|
(26.8 |
) |
|
(23.5 |
) |
|
(55.7 |
) |
|
(46.6 |
) |
||||
Adjusted net income |
$ |
418.3 |
|
$ |
369.5 |
|
$ |
1,000.3 |
|
$ |
887.0 |
|
||||
|
|
|
|
|
||||||||||||
Denominator: |
|
|
|
|
||||||||||||
|
|
|
|
|
||||||||||||
Weighted average Class A common shares outstanding - diluted |
|
576.3 |
|
|
573.0 |
|
|
525.9 |
|
|
470.6 |
|
||||
Adjustments: |
|
|
|
|
||||||||||||
Convertible preferred stock (5) |
|
— |
|
|
— |
|
|
49.1 |
|
|
101.6 |
|
||||
Restricted stock units and awards (6) |
|
6.5 |
|
|
8.1 |
|
|
6.3 |
|
|
8.8 |
|
||||
Adjusted weighted average Class A common shares outstanding - diluted |
|
582.8 |
|
|
581.1 |
|
|
581.3 |
|
|
581.0 |
|
||||
|
|
|
|
|
||||||||||||
Adjusted net income per Class A common share - diluted |
$ |
0.72 |
|
$ |
0.64 |
|
$ |
1.72 |
|
$ |
1.53 |
|
Reconciliation of Non-GAAP Measures (in millions, except per share data) |
||||||||||||||||
|
12 weeks ended |
28 weeks ended |
||||||||||||||
|
|
|
|
|
||||||||||||
Net income per Class A common share - diluted |
$ |
0.59 |
|
$ |
0.52 |
|
$ |
1.43 |
|
$ |
1.26 |
|
||||
Convertible preferred stock (5) |
|
— |
|
|
— |
|
|
0.01 |
|
|
0.03 |
|
||||
Non-GAAP adjustments (7) |
|
0.14 |
|
|
0.13 |
|
|
0.30 |
|
|
0.26 |
|
||||
Restricted stock units and awards (6) |
|
(0.01 |
) |
|
(0.01 |
) |
|
(0.02 |
) |
|
(0.02 |
) |
||||
Adjusted net income per Class A common share - diluted |
$ |
0.72 |
|
$ |
0.64 |
|
$ |
1.72 |
|
$ |
1.53 |
|
||||
The following table is a reconciliation of Adjusted net income to Adjusted EBITDA: |
||||||||||||||||
|
12 weeks ended |
28 weeks ended |
||||||||||||||
|
|
|
|
|
||||||||||||
Adjusted net income (8) |
$ |
418.3 |
|
$ |
369.5 |
|
$ |
1,000.3 |
|
$ |
887.0 |
|
||||
Tax impact of adjustments to Adjusted net income |
|
26.8 |
|
|
23.5 |
|
|
55.7 |
|
|
46.6 |
|
||||
Income tax expense |
|
117.4 |
|
|
100.3 |
|
|
260.7 |
|
|
232.8 |
|
||||
Amortization of debt discount and deferred financing costs (c) |
|
(3.9 |
) |
|
(4.7 |
) |
|
(9.0 |
) |
|
(11.1 |
) |
||||
Interest expense, net |
|
89.8 |
|
|
109.3 |
|
|
228.7 |
|
|
262.6 |
|
||||
Amortization of intangible assets resulting from acquisitions (b) |
|
(12.0 |
) |
|
(11.5 |
) |
|
(27.4 |
) |
|
(27.6 |
) |
||||
Depreciation and amortization (e) |
|
412.1 |
|
|
379.0 |
|
|
959.8 |
|
|
883.2 |
|
||||
Adjusted EBITDA |
$ |
1,048.5 |
|
$ |
965.4 |
|
$ |
2,468.8 |
|
$ |
2,273.5 |
|
(1) |
Includes costs associated with third-party consulting fees related to our strategic priorities and associated business transformation, as well as closures of operating facilities. |
|
(2) |
Represents incremental pay that is legislatively required in certain municipalities in which we operate. |
|
(3) |
Includes the |
|
(4) |
Primarily includes certain legal and regulatory accruals and settlements, net realized and unrealized gains and losses related to non-operating investments, lease adjustments related to non-cash rent expense and costs incurred on leased surplus properties, pension settlement gain, adjustments for unconsolidated equity investments and costs associated with integrating acquired businesses. |
|
(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 to Adjusted net income above for further details. |
|
(8) |
See the reconciliation of Net income to Adjusted net income above for further details. |
|
Non-GAAP adjustment classifications within the Condensed Consolidated Statements of Operations: |
||
(a) |
Cost of sales |
|
(b) |
Selling and administrative expenses |
|
(c) |
Interest expense, net |
|
|
|
Reconciliation of Non-GAAP Measures (in millions, except per share data) |
||||||||||||||||
(d) Loss (gain) on interest rate swaps and energy hedges, net: |
||||||||||||||||
|
12 weeks ended |
28 weeks ended |
||||||||||||||
|
|
|
|
|
||||||||||||
Cost of sales |
$ |
3.4 |
|
$ |
(1.1 |
) |
$ |
(5.5 |
) |
$ |
(6.3 |
) |
||||
Selling and administrative expenses |
|
0.8 |
|
|
(0.1 |
) |
|
(2.1 |
) |
|
(1.5 |
) |
||||
Other income, net |
|
(0.6 |
) |
|
— |
|
|
(7.3 |
) |
|
0.3 |
|
||||
Total Loss (gain) on interest rate swaps and energy hedges, net |
$ |
3.6 |
|
$ |
(1.2 |
) |
$ |
(14.9 |
) |
$ |
(7.5 |
) |
(e) Depreciation and amortization: |
||||||||||||||||
|
12 weeks ended |
28 weeks ended |
||||||||||||||
|
|
|
|
|
||||||||||||
Cost of sales |
$ |
38.2 |
$ |
36.0 |
$ |
89.7 |
$ |
86.8 |
||||||||
Selling and administrative expenses |
|
373.9 |
|
343.0 |
|
870.1 |
|
796.4 |
||||||||
Total Depreciation and amortization |
$ |
412.1 |
$ |
379.0 |
$ |
959.8 |
$ |
883.2 |
||||||||
(f) Miscellaneous adjustments: |
||||||||||||||||
|
12 weeks ended |
|
|
28 weeks ended |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||
Selling and administrative expenses |
$ |
19.7 |
|
$ |
6.8 |
$ |
67.5 |
$ |
17.1 |
|
||||||
Other income, net |
|
(3.9 |
) |
|
1.7 |
|
15.3 |
|
(15.9 |
) |
||||||
Total Miscellaneous adjustments |
$ |
15.8 |
|
$ |
8.5 |
$ |
82.8 |
$ |
1.2 |
|
||||||
Reconciliation of Non-GAAP Measures (in millions) |
||||||||
The following table is a reconciliation of Net Debt Ratio on a rolling four quarter basis: |
||||||||
|
|
|
||||||
Total debt (including finance leases) |
$ |
7,932.8 |
$ |
8,340.6 |
||||
Cash and cash equivalents |
|
3,392.4 |
|
2,849.8 |
||||
Total debt net of cash and cash equivalents |
|
4,540.4 |
|
5,490.8 |
||||
|
|
|
||||||
Rolling four quarters Adjusted EBITDA |
$ |
4,593.7 |
$ |
4,158.1 |
||||
|
|
|
||||||
Total Net Debt Ratio |
|
0.99 |
|
1.32 |
The following table is a reconciliation of Net income to Adjusted EBITDA on a rolling four quarter basis: |
||||||||
|
Rolling four quarters ended |
|||||||
|
|
|
||||||
Net income |
$ |
1,706.5 |
|
$ |
719.5 |
|
||
Depreciation and amortization |
|
1,757.9 |
|
|
1,611.3 |
|
||
Interest expense, net |
|
448.0 |
|
|
491.6 |
|
||
Income tax expense |
|
507.8 |
|
|
198.2 |
|
||
EBITDA |
|
4,420.2 |
|
|
3,020.6 |
|
||
|
|
|
||||||
Gain on interest rate swaps and energy hedges, net |
|
(30.2 |
) |
|
(16.5 |
) |
||
Business transformation (1) |
|
68.3 |
|
|
77.7 |
|
||
Equity-based compensation expense |
|
115.4 |
|
|
79.7 |
|
||
Loss on debt extinguishment |
|
3.7 |
|
|
36.2 |
|
||
Gain on property dispositions and impairment losses, net |
|
(108.5 |
) |
|
(50.7 |
) |
||
LIFO expense |
|
203.0 |
|
|
64.6 |
|
||
Discretionary COVID-19 pandemic related costs (2) |
|
— |
|
|
44.7 |
|
||
Government-mandated incremental COVID-19 pandemic related pay (3) |
|
20.3 |
|
|
47.4 |
|
||
|
|
(125.3 |
) |
|
892.9 |
|
||
Miscellaneous adjustments (5) |
|
26.8 |
|
|
(38.5 |
) |
||
Adjusted EBITDA |
$ |
4,593.7 |
|
$ |
4,158.1 |
|
(1) |
Includes costs related to third-party consulting fees related to our strategic priorities and associated business transformation, as well as closures of operating facilities. |
|
(2) |
Represents bonus payments related to front-line associates during the third quarter of fiscal 2020. |
|
(3) |
Represents incremental pay that is legislatively required in certain municipalities in which we operate. |
|
(4) |
Includes gains of |
|
(5) |
Primarily includes certain legal and regulatory accruals and settlements, 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, pension settlement gain, adjustments for unconsolidated equity investments and costs associated with integrating acquired businesses. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20221018005331/en/
For Investor Relations, contact investor-relations@albertsons.com
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