Albertsons Companies, Inc. Reports Second Quarter Fiscal 2024 Results
Albertsons Companies (NYSE: ACI) reported its Q2 fiscal 2024 results, ending September 7, 2024. Identical sales increased 2.5%, while digital sales surged 24%. The company's loyalty members grew 15% to 43.0 million. Net income was $146 million, or $0.25 per share, with adjusted net income at $301 million, or $0.51 per share. Adjusted EBITDA stood at $901 million.
Net sales and other revenue reached $18.6 billion, up from $18.3 billion in Q2 fiscal 2023. The gross margin rate remained unchanged at 27.6%. However, selling and administrative expenses increased to 25.8% of net sales. The company completed 44 remodels and opened two new stores during the first 28 weeks of fiscal 2024.
Albertsons Companies (NYSE: ACI) ha riportato i risultati del secondo trimestre fiscale 2024, che si è concluso il 7 settembre 2024. Le vendite identiche sono aumentate del 2,5%, mentre le vendite digitali sono cresciute del 24%. Il numero di membri del programma fedeltà è aumentato del 15%, raggiungendo 43,0 milioni. L'utile netto è stato di 146 milioni di dollari, pari a 0,25 dollari per azione, con un utile netto rettificato di 301 milioni di dollari, ovvero 0,51 dollari per azione. L'EBITDA rettificato si è attestato a 901 milioni di dollari.
Le vendite nette e altre entrate hanno raggiunto 18,6 miliardi di dollari, in aumento rispetto ai 18,3 miliardi di dollari del secondo trimestre fiscale 2023. Il margine lordo è rimasto invariato al 27,6%. Tuttavia, le spese di vendita e amministrative sono aumentate al 25,8% delle vendite nette. L'azienda ha completato 44 ristrutturazioni e aperto due nuovi negozi durante le prime 28 settimane del fiscale 2024.
Albertsons Companies (NYSE: ACI) informó sobre los resultados de su segundo trimestre fiscal 2024, que finalizó el 7 de septiembre de 2024. Las ventas idénticas aumentaron un 2.5%, mientras que las ventas digitales se dispararon un 24%. El número de miembros del programa de lealtad creció un 15%, alcanzando los 43.0 millones. El ingreso neto fue de 146 millones de dólares, o 0.25 dólares por acción, con un ingreso neto ajustado de 301 millones de dólares, o 0.51 dólares por acción. El EBITDA ajustado se situó en 901 millones de dólares.
Las ventas netas y otros ingresos alcanzaron 18.6 mil millones de dólares, en comparación con los 18.3 mil millones de dólares del segundo trimestre fiscal 2023. La tasa de margen bruto se mantuvo sin cambios en el 27.6%. Sin embargo, los gastos de venta y administrativos aumentaron al 25.8% de las ventas netas. La empresa completó 44 renovaciones y abrió dos nuevas tiendas durante las primeras 28 semanas del fiscal 2024.
알버트슨스 기업(주식 코드: ACI)은 2024 회계연도 2분기 실적을 발표했습니다. 회계연도 2024년 9월 7일로 종료된 이 보고서에서 동일 매출이 2.5% 증가했습니다, 그리고 디지털 매출이 24% 급증했습니다. 충성 고객 수는 15% 증가하여 4,300만 명에 이릅니다. 순 이익은 1억 4,600만 달러, 주당 0.25달러였으며, 조정 순이익은 3억 1,000만 달러, 주당 0.51달러로 기록했습니다. 조정 EBITDA는 9억 1,000만 달러에 달했습니다.
순 매출 및 기타 수익은 186억 달러에 이르렀으며, 이는 2023 회계연도 2분기의 183억 달러에서 증가한 수치입니다. 총 마진율은 27.6%로 변동이 없었습니다. 그러나 판매 및 관리 비용은 순 매출의 25.8%로 증가했습니다. 이 회사는 2024 회계연도 첫 28주 동안 44개의 리모델링을 완료하고 새로운 매장 2개를 오픈했습니다.
Albertsons Companies (NYSE: ACI) a publié ses résultats du deuxième trimestre de l'exercice fiscal 2024, se terminant le 7 septembre 2024. Les ventes identiques ont augmenté de 2,5%, tandis que les ventes numériques ont explosé de 24%. Le nombre de membres fidèles a augmenté de 15%, atteignant 43,0 millions. Le bénéfice net s'est élevé à 146 millions de dollars, soit 0,25 dollar par action, avec un bénéfice net ajusté de 301 millions de dollars, soit 0,51 dollar par action. L'EBITDA ajusté s'est établi à 901 millions de dollars.
Les ventes nettes et autres revenus ont atteint 18,6 milliards de dollars, en hausse par rapport à 18,3 milliards de dollars au deuxième trimestre de l'exercice fiscal 2023. Le taux de marge brute est resté inchangé à 27,6%. Cependant, les frais de vente et d'administration ont augmenté à 25,8% des ventes nettes. L'entreprise a réalisé 44 rénovations et ouvert deux nouveaux magasins au cours des 28 premières semaines de l'exercice 2024.
Die Albertsons Companies (NYSE: ACI) berichteten über die Ergebnisse des zweiten Quartals des Geschäftsjahres 2024, das am 7. September 2024 endete. Die vergleichbaren Verkaufszahlen stiegen um 2,5%, während die digitalen Umsätze um 24% anstiegen. Die Zahl der Treue-Mitglieder nahm um 15% auf 43,0 Millionen zu. Das Nettoeinkommen betrug 146 Millionen Dollar, oder 0,25 Dollar pro Aktie, mit einem bereinigten Nettoeinkommen von 301 Millionen Dollar, oder 0,51 Dollar pro Aktie. Das bereinigte EBITDA belief sich auf 901 Millionen Dollar.
Der Nettoumsatz und andere Einnahmen erreichten 18,6 Milliarden Dollar, verglichen mit 18,3 Milliarden Dollar im zweiten Quartal des Geschäftsjahres 2023. Die Bruttomarge blieb bei 27,6% unverändert. Die Verkaufs- und Verwaltungskosten stiegen jedoch auf 25,8% des Nettoumsatzes. Das Unternehmen hat in den ersten 28 Wochen des Geschäftsjahres 2024 44 Umbauten abgeschlossen und zwei neue Filialen eröffnet.
- Identical sales increased 2.5%
- Digital sales grew by 24%
- Loyalty members increased 15% to 43.0 million
- Net sales and other revenue reached $18.6 billion, up from $18.3 billion in Q2 fiscal 2023
- Completed 44 remodels and opened two new stores
- Net income decreased to $146 million from $266.9 million in Q2 fiscal 2023
- Adjusted net income declined to $301 million from $367.7 million in Q2 fiscal 2023
- Adjusted EBITDA decreased to $900.6 million from $976.9 million in Q2 fiscal 2023
- Selling and administrative expenses increased to 25.8% of Net sales and other revenue
- Net loss on property dispositions and impairment losses of $43.9 million
Insights
Albertsons Companies reported mixed results for Q2 FY2024. While identical sales grew
The company faces headwinds from increased investments in wages and benefits, lower-margin pharmacy and digital sales growth and a competitive landscape. However, these are partially offset by productivity initiatives. The gross margin rate remained flat at
Notably, Albertsons' pending merger with Kroger adds uncertainty to its future. Investors should monitor regulatory approvals and potential divestitures that may be required to complete the deal.
Albertsons' Q2 results reflect the challenging retail environment and shifting consumer behaviors. The
The company's focus on its "Customers for Life" strategy and the Albertsons Media Collective shows promise for long-term customer retention and alternative revenue streams. However, the
The closure of micro-fulfillment centers, resulting in a
Second Quarter of Fiscal 2024 Highlights
-
Identical sales increased
2.5% -
Digital sales increased
24% -
Loyalty members increased
15% to 43.0 million -
Net income of
, or$146 million per share$0.25 -
Adjusted net income of
, or$301 million per share$0.51 -
Adjusted EBITDA of
$901 million
"In the second quarter of fiscal 2024, investments in our Customers for Life strategy continued to drive strong growth in our digital sales and pharmacy operations," said Vivek Sankaran, CEO. "We also drove strong year-over-year growth in our loyalty members and omnichannel shoppers, and accelerated growth in our Albertsons Media Collective. We want to thank our teams for their ongoing commitment to serving our customers and supporting the communities in which we operate."
Sankaran added, "As we look ahead to the balance of fiscal 2024, we expect to see continuing headwinds related to investments in associate wages and benefits, an increasing mix of our pharmacy and digital businesses which carry lower margins, and an increasingly competitive backdrop. We expect these headwinds to be partially offset by ongoing and new productivity initiatives."
Second Quarter of Fiscal 2024 Results
Net sales and other revenue was
Gross margin rate was unchanged at
Selling and administrative expenses increased to
Net loss on property dispositions and impairment losses was
Interest expense, net was
Other expense, net was
Income tax expense was
Net income was
Adjusted net income was
Adjusted EBITDA was
Capital Expenditures
During the first 28 weeks of fiscal 2024, capital expenditures were
Merger Agreement
As previously announced, on October 13, 2022, the Company entered into an Agreement and Plan of Merger (the "Merger Agreement") with The Kroger Company and Kettle Merger Sub, Inc. Under the terms of the Merger Agreement, subject to regulatory approval, Kroger (through Kettle Merger Sub, Inc.) will acquire all of the outstanding shares of the Company's common stock (the "Merger"). Details regarding the Merger Agreement and the transactions contemplated by the Merger Agreement are available in our Quarterly Report on Form 10-Q for the second quarter of fiscal 2024 filed with the Securities and Exchange Commission ("SEC") on October 15, 2024.
About Albertsons Companies
Albertsons Companies is a leading food and drug retailer in
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, our industry and the outcome of the Merger. 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:
- uncertainties related to our ability to close the transactions contemplated by the Merger Agreement, including resolution of the pending legal actions related to the Merger;
- erosion of consumer confidence in our business as a result of the Merger;
- restrictions on our ability to operate as a result of the Merger Agreement and the impact of the costs related to the Merger;
- challenges in retaining and motivating our associates until the closing of the Merger, particularly following the public announcement of the locations and operations to be divested, with difficulties in attracting new employees during the pendency of the Merger;
- litigation in connection with, or related to the transactions contemplated by, the Merger Agreement which may arise out of pending regulatory actions;
- changes in macroeconomic conditions such as rates of food price inflation or deflation, fuel and commodity prices and expiration of student loan payment deferments;
- changes in consumer behavior and spending due to the impact of macroeconomic factors;
- 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;
- changes in wage rates, ability to attract and retain qualified associates and negotiate acceptable contracts with labor unions;
- availability and cost of goods used in our food products;
- challenges with our supply chain;
- operational and financial effects resulting from cyber incidents at the Company or at a third party, including outages in the cloud environment and the effectiveness of business continuity plans during a ransomware or other cyber incident; and
- changes in tax rates, tax laws, and regulations that directly impact our business or our customers may adversely impact our financial condition and results of operations.
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 SEC including the most recent annual report on Form 10-K and any subsequent periodic reports on Form 10-Q and current reports on Form 8-K.
Additional Information and Where to Find It
The Company has filed with the SEC a definitive information statement on Schedule 14C with respect to the approval of the Merger and has mailed the definitive information statement to the Company's stockholders. You may obtain copies of all documents filed by the Company with the SEC regarding this transaction, free of charge, at the SEC's website, www.sec.gov or from the Company's website at https://www.albertsonscompanies.com/investors/overview/.
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 core operating performance, and thereby provide useful measures to analysts and investors 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 inference 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.
Albertsons Companies, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (dollars in millions, except per share data) (unaudited) |
|||||||||||||||
|
12 weeks ended |
|
28 weeks ended |
||||||||||||
|
September 7,
|
|
September 9,
|
|
September 7,
|
|
September 9,
|
||||||||
Net sales and other revenue |
$ |
18,551.5 |
|
|
$ |
18,290.7 |
|
|
$ |
42,816.9 |
|
|
$ |
42,340.9 |
|
Cost of sales |
|
13,430.2 |
|
|
|
13,249.2 |
|
|
|
30,956.7 |
|
|
|
30,636.7 |
|
Gross margin |
|
5,121.3 |
|
|
|
5,041.5 |
|
|
|
11,860.2 |
|
|
|
11,704.2 |
|
|
|
|
|
|
|
|
|
||||||||
Selling and administrative expenses |
|
4,785.4 |
|
|
|
4,595.5 |
|
|
|
11,059.4 |
|
|
|
10,608.4 |
|
Loss (gain) on property dispositions and impairment losses, net |
|
43.9 |
|
|
|
(8.4 |
) |
|
|
49.2 |
|
|
|
19.2 |
|
Operating income |
|
292.0 |
|
|
|
454.4 |
|
|
|
751.6 |
|
|
|
1,076.6 |
|
|
|
|
|
|
|
|
|
||||||||
Interest expense, net |
|
103.6 |
|
|
|
111.9 |
|
|
|
249.3 |
|
|
|
266.8 |
|
Other expense (income), net |
|
1.9 |
|
|
|
8.1 |
|
|
|
5.9 |
|
|
|
(7.9 |
) |
Income before income taxes |
|
186.5 |
|
|
|
334.4 |
|
|
|
496.4 |
|
|
|
817.7 |
|
|
|
|
|
|
|
|
|
||||||||
Income tax expense |
|
41.0 |
|
|
|
67.5 |
|
|
|
110.2 |
|
|
|
133.6 |
|
Net income |
$ |
145.5 |
|
|
$ |
266.9 |
|
|
$ |
386.2 |
|
|
$ |
684.1 |
|
|
|
|
|
|
|
|
|
||||||||
Net income per Class A common share |
|
|
|
|
|
|
|
||||||||
Basic net income per Class A common share |
$ |
0.25 |
|
|
$ |
0.46 |
|
|
$ |
0.67 |
|
|
$ |
1.19 |
|
Diluted net income per Class A common share |
|
0.25 |
|
|
|
0.46 |
|
|
|
0.66 |
|
|
|
1.18 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average Class A common shares outstanding (in millions) |
|
|
|
|
|
|
|
||||||||
Basic |
|
580.1 |
|
|
|
576.0 |
|
|
|
579.5 |
|
|
|
574.7 |
|
Diluted |
|
583.2 |
|
|
|
581.9 |
|
|
|
582.4 |
|
|
|
580.3 |
|
|
|
|
|
|
|
|
|
||||||||
% of net sales and other revenue |
|
|
|
|
|
|
|
||||||||
Gross margin |
|
27.6 |
% |
|
|
27.6 |
% |
|
|
27.7 |
% |
|
|
27.6 |
% |
Selling and administrative expenses |
|
25.8 |
% |
|
|
25.1 |
% |
|
|
25.8 |
% |
|
|
25.1 |
% |
|
|
|
|
|
|
|
|
||||||||
Store data |
|
|
|
|
|
|
|
||||||||
Number of stores at end of quarter |
|
2,267 |
|
|
|
2,272 |
|
|
|
|
|
Albertsons Companies, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (in millions) (unaudited) |
|||||||
|
September 7,
|
|
February 24,
|
||||
ASSETS |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
280.0 |
|
|
$ |
188.7 |
|
Receivables, net |
|
897.6 |
|
|
|
724.4 |
|
Inventories, net |
|
5,042.7 |
|
|
|
4,945.2 |
|
Other current assets |
|
426.3 |
|
|
|
429.2 |
|
Total current assets |
|
6,646.6 |
|
|
|
6,287.5 |
|
|
|
|
|
||||
Property and equipment, net |
|
9,551.4 |
|
|
|
9,570.3 |
|
Operating lease right-of-use assets |
|
6,022.6 |
|
|
|
5,981.6 |
|
Intangible assets, net |
|
2,377.9 |
|
|
|
2,434.5 |
|
Goodwill |
|
1,201.0 |
|
|
|
1,201.0 |
|
Other assets |
|
728.9 |
|
|
|
746.2 |
|
TOTAL ASSETS |
$ |
26,528.4 |
|
|
$ |
26,221.1 |
|
|
|
|
|
||||
LIABILITIES |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable |
$ |
4,221.9 |
|
|
$ |
4,218.2 |
|
Accrued salaries and wages |
|
1,352.2 |
|
|
|
1,302.6 |
|
Current maturities of long-term debt and finance lease obligations |
|
129.1 |
|
|
|
285.2 |
|
Current maturities of operating lease obligations |
|
679.3 |
|
|
|
677.6 |
|
Other current liabilities |
|
1,039.9 |
|
|
|
974.1 |
|
Total current liabilities |
|
7,422.4 |
|
|
|
7,457.7 |
|
|
|
|
|
||||
Long-term debt and finance lease obligations |
|
7,779.3 |
|
|
|
7,783.4 |
|
Long-term operating lease obligations |
|
5,615.1 |
|
|
|
5,493.2 |
|
Deferred income taxes |
|
727.5 |
|
|
|
807.6 |
|
Other long-term liabilities |
|
1,963.8 |
|
|
|
1,931.7 |
|
|
|
|
|
||||
Commitments and contingencies |
|
|
|
||||
|
|
|
|
||||
STOCKHOLDERS' EQUITY |
|
|
|
||||
Class A common stock |
|
6.0 |
|
|
|
5.9 |
|
Additional paid-in capital |
|
2,152.3 |
|
|
|
2,129.6 |
|
Treasury stock, at cost |
|
(304.2 |
) |
|
|
(304.2 |
) |
Accumulated other comprehensive income |
|
92.6 |
|
|
|
88.0 |
|
Retained earnings |
|
1,073.6 |
|
|
|
828.2 |
|
Total stockholders' equity |
|
3,020.3 |
|
|
|
2,747.5 |
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ |
26,528.4 |
|
|
$ |
26,221.1 |
|
Albertsons Companies, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (in millions) (unaudited) |
|||||||
|
28 weeks ended |
||||||
|
September 7,
|
|
September 9,
|
||||
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
386.2 |
|
|
$ |
684.1 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Loss on property dispositions and impairment losses, net |
|
49.2 |
|
|
|
19.2 |
|
Depreciation and amortization |
|
973.9 |
|
|
|
945.2 |
|
Operating lease right-of-use assets amortization |
|
364.3 |
|
|
|
357.0 |
|
LIFO expense |
|
19.4 |
|
|
|
60.2 |
|
Deferred income tax |
|
(86.7 |
) |
|
|
(85.8 |
) |
Contributions to pension and post-retirement benefit plans, net of expense (income) |
|
(29.3 |
) |
|
|
(12.1 |
) |
Deferred financing costs |
|
8.6 |
|
|
|
8.4 |
|
Equity-based compensation expense |
|
66.2 |
|
|
|
57.2 |
|
Other operating activities |
|
17.0 |
|
|
|
(12.3 |
) |
Changes in operating assets and liabilities: |
|
|
|
||||
Receivables, net |
|
(174.0 |
) |
|
|
(21.3 |
) |
Inventories, net |
|
(116.9 |
) |
|
|
(326.6 |
) |
Accounts payable, accrued salaries and wages and other accrued liabilities |
|
88.5 |
|
|
|
35.1 |
|
Operating lease liabilities |
|
(280.6 |
) |
|
|
(274.7 |
) |
Self-insurance assets and liabilities |
|
21.2 |
|
|
|
40.3 |
|
Other operating assets and liabilities |
|
67.1 |
|
|
|
(126.0 |
) |
Net cash provided by operating activities |
|
1,374.1 |
|
|
|
1,347.9 |
|
|
|
|
|
||||
Cash flows from investing activities: |
|
|
|
||||
Payments for property, equipment and intangibles, including lease buyouts |
|
(952.3 |
) |
|
|
(1,084.3 |
) |
Proceeds from sale of assets |
|
19.8 |
|
|
|
195.1 |
|
Other investing activities |
|
7.2 |
|
|
|
(0.9 |
) |
Net cash used in investing activities |
|
(925.3 |
) |
|
|
(890.1 |
) |
|
|
|
|
||||
Cash flows from financing activities: |
|
|
|
||||
Proceeds from issuance of long-term debt, including ABL facility |
|
50.0 |
|
|
|
50.0 |
|
Payments on long-term borrowings, including ABL facility |
|
(200.4 |
) |
|
|
(500.5 |
) |
Payments of obligations under finance leases |
|
(26.9 |
) |
|
|
(29.1 |
) |
Dividends paid on common stock |
|
(139.0 |
) |
|
|
(138.0 |
) |
Dividends paid on convertible preferred stock |
|
— |
|
|
|
(0.8 |
) |
Employee tax withholding on vesting of restricted stock units |
|
(41.5 |
) |
|
|
(35.1 |
) |
Other financing activities |
|
— |
|
|
|
2.4 |
|
Net cash used in financing activities |
|
(357.8 |
) |
|
|
(651.1 |
) |
|
|
|
|
||||
Net increase (decrease) in cash and cash equivalents and restricted cash |
|
91.0 |
|
|
|
(193.3 |
) |
Cash and cash equivalents and restricted cash at beginning of period |
|
193.2 |
|
|
|
463.8 |
|
Cash and cash equivalents and restricted cash at end of period |
$ |
284.2 |
|
|
$ |
270.5 |
|
Albertsons Companies, Inc. and Subsidiaries 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: |
|||||||||||||||
|
12 weeks ended |
|
28 weeks ended |
||||||||||||
|
September 7,
|
|
September 9,
|
|
September 7,
|
|
September 9,
|
||||||||
Numerator: |
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Net income |
$ |
145.5 |
|
|
$ |
266.9 |
|
|
$ |
386.2 |
|
|
$ |
684.1 |
|
Adjustments: |
|
|
|
|
|
|
|
||||||||
Loss (gain) on energy hedges, net (d) |
|
2.4 |
|
|
|
(4.8 |
) |
|
|
1.6 |
|
|
|
(5.4 |
) |
Business transformation (1)(b) |
|
20.5 |
|
|
|
13.5 |
|
|
|
37.8 |
|
|
|
25.6 |
|
Equity-based compensation expense (b) |
|
29.5 |
|
|
|
25.3 |
|
|
|
66.2 |
|
|
|
57.2 |
|
Loss (gain) on property dispositions and impairment losses, net |
|
43.9 |
|
|
|
(8.4 |
) |
|
|
49.2 |
|
|
|
19.2 |
|
LIFO expense (a) |
|
4.8 |
|
|
|
26.2 |
|
|
|
19.4 |
|
|
|
60.2 |
|
Merger-related costs (2)(b) |
|
67.4 |
|
|
|
41.2 |
|
|
|
159.7 |
|
|
|
88.3 |
|
Certain legal and regulatory accruals and settlements, net (b) |
|
8.7 |
|
|
|
— |
|
|
|
(0.2 |
) |
|
|
— |
|
Amortization of debt discount and deferred financing costs (c) |
|
3.6 |
|
|
|
3.6 |
|
|
|
8.5 |
|
|
|
8.3 |
|
Amortization of intangible assets resulting from acquisitions (b) |
|
11.1 |
|
|
|
11.1 |
|
|
|
25.8 |
|
|
|
26.5 |
|
Miscellaneous adjustments (3)(f) |
|
11.4 |
|
|
|
23.0 |
|
|
|
31.2 |
|
|
|
20.6 |
|
Tax impact of adjustments to Adjusted net income |
|
(47.8 |
) |
|
|
(29.9 |
) |
|
|
(92.8 |
) |
|
|
(71.2 |
) |
Adjusted net income |
$ |
301.0 |
|
|
$ |
367.7 |
|
|
$ |
692.6 |
|
|
$ |
913.4 |
|
|
|
|
|
|
|
|
|
||||||||
Denominator: |
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Weighted average Class A common shares outstanding - diluted |
|
583.2 |
|
|
|
581.9 |
|
|
|
582.4 |
|
|
|
580.3 |
|
Adjustments: |
|
|
|
|
|
|
|
||||||||
Convertible preferred stock (4) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.6 |
|
Restricted stock units and awards (5) |
|
8.0 |
|
|
|
5.1 |
|
|
|
8.2 |
|
|
|
5.4 |
|
Adjusted weighted average Class A common shares outstanding - diluted |
|
591.2 |
|
|
|
587.0 |
|
|
|
590.6 |
|
|
|
586.3 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted net income per Class A common share - diluted |
$ |
0.51 |
|
|
$ |
0.63 |
|
|
$ |
1.17 |
|
|
$ |
1.56 |
|
|
12 weeks ended |
|
28 weeks ended |
|||||||||||
|
September 7,
|
|
September 9,
|
|
September 7,
|
|
September 9,
|
|||||||
Net income per Class A common share - diluted |
$ |
0.25 |
|
|
$ |
0.46 |
|
$ |
0.66 |
|
|
$ |
1.18 |
|
Non-GAAP adjustments (6) |
|
0.27 |
|
|
|
0.17 |
|
|
0.53 |
|
|
|
0.39 |
|
Restricted stock units and awards (5) |
|
(0.01 |
) |
|
|
— |
|
|
(0.02 |
) |
|
|
(0.01 |
) |
Adjusted net income per Class A common share - diluted |
$ |
0.51 |
|
|
$ |
0.63 |
|
$ |
1.17 |
|
|
$ |
1.56 |
|
Albertsons Companies, Inc. and Subsidiaries Reconciliation of Non-GAAP Measures (in millions, except per share data) |
|||||||||||||||
The following table is a reconciliation of Adjusted net income to Adjusted EBITDA: |
|||||||||||||||
|
12 weeks ended |
|
28 weeks ended |
||||||||||||
|
September 7,
|
|
September 9,
|
|
September 7,
|
|
September 9,
|
||||||||
Adjusted net income (7) |
$ |
301.0 |
|
|
$ |
367.7 |
|
|
$ |
692.6 |
|
|
$ |
913.4 |
|
Tax impact of adjustments to Adjusted net income |
|
47.8 |
|
|
|
29.9 |
|
|
|
92.8 |
|
|
|
71.2 |
|
Income tax expense |
|
41.0 |
|
|
|
67.5 |
|
|
|
110.2 |
|
|
|
133.6 |
|
Amortization of debt discount and deferred financing costs (c) |
|
(3.6 |
) |
|
|
(3.6 |
) |
|
|
(8.5 |
) |
|
|
(8.3 |
) |
Interest expense, net |
|
103.6 |
|
|
|
111.9 |
|
|
|
249.3 |
|
|
|
266.8 |
|
Amortization of intangible assets resulting from acquisitions (b) |
|
(11.1 |
) |
|
|
(11.1 |
) |
|
|
(25.8 |
) |
|
|
(26.5 |
) |
Depreciation and amortization (e) |
|
421.9 |
|
|
|
414.6 |
|
|
|
973.9 |
|
|
|
945.2 |
|
Adjusted EBITDA |
$ |
900.6 |
|
|
$ |
976.9 |
|
|
$ |
2,084.5 |
|
|
$ |
2,295.4 |
|
(1) |
Includes costs associated with third-party consulting fees related to our operational priorities and associated business transformation. |
|
(2) |
Primarily relates to third-party legal and advisor fees and retention program expense related to the proposed Merger. |
|
(3) |
Primarily includes 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 loss, adjustments for unconsolidated equity investments and other costs not considered in our core performance. |
|
(4) |
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. |
|
(5) |
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. |
|
(6) |
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. |
|
(7) |
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 |
|
(d) | Loss (gain) on energy hedges, net: |
|
12 weeks ended |
|
28 weeks ended |
|||||||||||
|
September 7,
|
|
September 9,
|
|
September 7,
|
|
September 9,
|
|||||||
Cost of sales |
$ |
2.3 |
|
$ |
(5.1 |
) |
|
$ |
2.4 |
|
|
$ |
(3.8 |
) |
Selling and administrative expenses |
|
0.1 |
|
|
0.3 |
|
|
|
(0.8 |
) |
|
|
(1.6 |
) |
Total Loss (gain) on energy hedges, net |
$ |
2.4 |
|
$ |
(4.8 |
) |
|
$ |
1.6 |
|
|
$ |
(5.4 |
) |
Albertsons Companies, Inc. and Subsidiaries Reconciliation of Non-GAAP Measures (in millions, except per share data) |
|||||||||||
(e) Depreciation and amortization: |
|||||||||||
|
12 weeks ended |
|
28 weeks ended |
||||||||
|
September 7,
|
|
September 9,
|
|
September 7,
|
|
September 9,
|
||||
Cost of sales |
$ |
41.8 |
|
$ |
38.3 |
|
$ |
95.4 |
|
$ |
85.0 |
Selling and administrative expenses |
|
380.1 |
|
|
376.3 |
|
|
878.5 |
|
|
860.2 |
Total Depreciation and amortization |
$ |
421.9 |
|
$ |
414.6 |
|
$ |
973.9 |
|
$ |
945.2 |
(f) Miscellaneous adjustments: |
|||||||||||||
|
12 weeks ended |
|
28 weeks ended |
||||||||||
|
September 7,
|
|
September 9,
|
|
September 7,
|
|
September 9,
|
||||||
Selling and administrative expenses |
$ |
12.0 |
|
|
$ |
11.9 |
|
$ |
24.4 |
|
$ |
21.9 |
|
Other expense (income), net |
|
(0.6 |
) |
|
|
11.1 |
|
|
6.8 |
|
|
(1.3 |
) |
Total Miscellaneous adjustments |
$ |
11.4 |
|
|
$ |
23.0 |
|
$ |
31.2 |
|
$ |
20.6 |
|
Albertsons Companies, Inc. and Subsidiaries Reconciliation of Non-GAAP Measures (in millions) |
|||||
The following table is a reconciliation of Net Debt Ratio on a rolling four quarter basis: |
|||||
|
September 7,
|
|
September 9,
|
||
Total debt (including finance leases) |
$ |
7,908.4 |
|
$ |
8,449.6 |
Cash and cash equivalents |
|
280.0 |
|
|
266.1 |
Total debt net of cash and cash equivalents |
|
7,628.4 |
|
|
8,183.5 |
|
|
|
|
||
Rolling four quarters Adjusted EBITDA |
$ |
4,106.8 |
|
$ |
4,503.6 |
|
|
|
|
||
Total Net Debt Ratio |
|
1.86 |
|
|
1.82 |
The following table is a reconciliation of Net income to Adjusted EBITDA on a rolling four quarter basis: |
|||||||
|
Rolling four quarters ended |
||||||
|
September 7,
|
|
September 9,
|
||||
Net income |
$ |
998.1 |
|
|
$ |
1,370.7 |
|
Depreciation and amortization |
|
1,807.7 |
|
|
|
1,792.5 |
|
Interest expense, net |
|
474.6 |
|
|
|
442.7 |
|
Income tax expense |
|
269.6 |
|
|
|
294.9 |
|
EBITDA |
|
3,550.0 |
|
|
|
3,900.8 |
|
|
|
|
|
||||
Loss on interest rate swaps and energy hedges, net |
|
3.8 |
|
|
|
1.1 |
|
Business transformation (1) |
|
57.3 |
|
|
|
56.6 |
|
Equity-based compensation expense |
|
113.5 |
|
|
|
132.3 |
|
Loss (gain) on property dispositions and impairment losses, net |
|
73.9 |
|
|
|
(34.9 |
) |
LIFO expense |
|
11.2 |
|
|
|
211.3 |
|
Merger-related costs (2) |
|
252.0 |
|
|
|
135.4 |
|
Certain legal and regulatory accruals and settlements, net |
|
(6.9 |
) |
|
|
57.0 |
|
Miscellaneous adjustments (3) |
|
52.0 |
|
|
|
44.0 |
|
Adjusted EBITDA |
$ |
4,106.8 |
|
|
$ |
4,503.6 |
|
(1) |
Includes costs associated with third-party consulting fees related to our operational priorities and associated business transformation. |
|
(2) |
Primarily relates to third-party legal and advisor fees and retention program expense related to the proposed Merger and costs in connection with our previously-announced Board-led review of potential strategic alternatives. |
|
(3) |
Primarily includes 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 loss, adjustments for unconsolidated equity investments and other costs not considered in our core performance. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241015517655/en/
For Investor Relations, contact investor-relations@albertsons.com
For Media Relations, contact media@albertsons.com
Source: Albertsons Companies, Inc.
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